Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — Shareholder Meeting (May 2024)
19 slides from Rhb Bank Bhd's shareholder meeting presentation, May 10, 2024
Slide 1: RHB Bank Berhad 58th Annual General Meeting
RHB BANK BERHAD 58th ANNUAL GENERAL MEETING Mohd Rashid Mohamad 10th May 2024
Slide 2: Agenda
1. FY2023 Performance Review 2. Strategy Update 3. FY2024 Outlook
Slide 3: FY2023 Performance Review
FY2023 Performance Review
Slide 4: FY2023: Remained resilient amidst challenging economic landscape
FY2023: Remained resilient amidst challenging economic landscape 4 FY2023 Achievements FY2023 results continued its trajectory of resilience ▪ ROE at 9.5%. Net profit up 4.8% Y-o-Y ▪ Strong non-fund based income growth of 30.3% Y-o-Y ▪ Continued discipline in managing operating expenses with growth
Slide 5: FY2023: Financial Highlights
5 FY2023: Financial Highlights 5 Net profit up 4.8% Y-o-Y Total Assets growth: 5.8% Group: CET1 16.7% to RM2,806.2 million Loans growth: 4.8% TCR 19.4% ▪ Non-fund based income up 30.3% to RM2.3 billion partially offsetting impact of lower net fund based income ▪ Opex up slightly 2.3% to RM3.7 billio
Slide 6: Committed to healthy dividend payout ratio and attractive dividend yield
We are committed to reward shareholders with healthy dividend payout ratio and attractive 66 dividend yield Dividend Per Share (sen) Maintained robust capital positions Consistent dividend payout to reward shareholders 62.9% 63.2% 61.1% 50.1% 60.0% 34.8% The Group displayed improving dividend payout
Slide 7: FY2023 Performance Review
FY2023 Performance Review 7 RHB delivered a resilient FY2023 performance supported by higher non-fund based income and lower ECL 1 Overview of FY2023 Financial Results Total Income Net Fund Based Non-Fund Based Income Income 4.8% 14.6% 30.3% 8.16 2.32 7.77 6.38 1.78 5.45 FY2022 FY2023 FY2022 FY2023
Slide 8: Net fund based income growth moderated; non-fund based income growth driven by treasury and fees
Net fund based income growth moderated by higher funding costs; NIM at 1.82%; 8 Non-fund based income growth driven by higher treasury income and fee income 2 Net Fund Based Income 25.7% 77.3% Y-o-Y % 14.6% 14.26 Fund Based Income RM’ bil 11.35 8.81 4.97 6.38 5.45 Fund Based Expenses Net Fund Based
Slide 9: Loans growth led by Singapore and Group Community Banking; deposits growth
Loans growth led mainly by Singapore and Group Community Banking (especially mortgage and SME); 9 Deposits growth attributed to higher FD and CASA; CASA composition at 27.9% for FY2023 4 Growth in Gross Loans Y-o-Y Of which: % RM’ bil 4.8% 5.8% 3.1% 14.3% 212.2 222.4 133.2 140.9 50.7 49.1 28.3 32.3
Slide 10: Asset quality impacted by higher impairments in SME and Overseas
Asset quality impacted by higher impairments in SME and Overseas segments; but with good collateral 10 coverage 6 LLC (with Reg. Reserve) remained above 100% 107.9% 119.7% 124.2% 130.3% 106.2% 150 .0% 100 .0% 50. 0% 119.7% 122.4% 112.8% 0.0 % 85.7% 71.7% 150 .0% -50.0% 100 .0% -100.0% 50. 0% -150.0%
Slide 11: Remained resilient in FY2023: Summary of 5-year Performance
Remained resilient in FY2023 amid persistently challenging operating environment 11 7 Summary of 5-year Performance Return on Equity Cost-to-Income Ratio 10.3% 48.0% 9.6% 9.6% 9.5% 47.1% 47.5% 7.7% 45.2% 44.2% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Loan Loss Coverage N1 Group Capital Rati
Slide 12: Strategy Update
Strategy Update
Slide 13: TWP24 Strategy: Key Highlights
TWP24 Strategy: Key Highlights 13 13 FY2023 Achievements +6.0% Retail Loans +8.6% Mortgage Loans +11.0% Reflex Customers FY2023 vs. FY2022 FY2023 vs. FY2022 FY2023 vs. FY2022 Be 9.5% +4.9% SME Loans +7.8% Auto Financing +49.0% Merchants Return on Equity (ROE) Everyone’s FY2023 vs. FY2022 FY2023 vs.
Slide 14: Key initiatives the Group is undertaking this year
14 In parallel, there are several key initiatives that the Group is currently undertaking this year 14 RHB-BOOST BANCASSURANCE EDUCATION SUSTAINABILITY DIGITAL BANK PARTNERSHIP PARTNERSHIP STRATEGY LAUNCH RENEWAL EXPANSION REFINEMENT • Boost Bank received • RHB’s current • Through RHB’s • RHB is inc
Slide 15: Digital Enhancements: Key Highlights (1/2)
15 Digital Enhancements: Key Highlights (1/2) 15 GROUP COMMUNITY BANKING Expanded SME Banking New Implemented the offerings Segments – RHB Mobile MYHOME APP features to for Multi Build Sectorial Banking and & PARTNERS combat Currency Expertise & RHB Online APP online fraud Visa Debit Expand Banking
Slide 16: Digital Enhancements: Key Highlights (2/2)
16 Digital Enhancements: Key Highlights (2/2) 16 GROUP WHOLESALE BANKING OTHER DIGITAL SOLUTIONS Transform Digital Introduction of Introduction Digitise RHB Channels to Serve DuitNow QR Plug of RHB beyond Malaysia – All Banking & & Play sound e-QMS Expanding digital Investment Needs box App channels
Slide 17: FY2024 Outlook
FY2024 Outlook
Slide 18: FY2024: Outlook
18 FY2024: Outlook 18 1 ▪ Malaysia’s GDP is expected to improve to 4.6% in 2024 (2023 GDP: 3.7%) Economic Outlook ▪ Nevertheless, downside risks remain mainly from prolonged high interest rates in advanced economies and escalation of geopolitical conflicts 2 ▪ Net fund based income – OPR is expected
Slide 19: Thank You
THANK YOU www.rhbgroup.com This material is prepared for general circulation. Any recommendation or view contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific audience. The content furthermore is believed t