Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — Q1 2025 Earnings Presentation
32 slides from Rhb Bank Bhd's earnings presentation, May 28, 2025
Slide 1: RHB Bank Berhad Analyst Presentation Q1 2025 Financial Results
RHB BANK BERHAD Analyst Presentation Q1 2025 Financial Results Dato’ Mohd Rashid Mohamad Group Managing Director/Chief Executive Officer RHB Banking Group 28 May 2025
Slide 2: Executive Summary Q1 2025 Financial Results Summary
1. Executive Summary 2. Q1 2025 Financial Results 3. Summary
Slide 3: Executive Summary
Executive Summary
Slide 4: Q1 2025: Financial Highlights
4 Q1 2025: Financial Highlights 4 Net Profit RM750 mil NIM 1.84% Loans Growth 2.4%N1 CIR 47.4% 1.91% with liability management CASA Ratio 28.0% Marginal 1.9% contraction in total income from RM2.1 bil (Q1 2024) to RM2.0 bil (Q1 2025) Net fund based income increased 7.3% from RM1.4 bil (Q1 2024) to R
Slide 5: PROGRESS27 Q1 2025 Highlights
The Group has commenced with the execution and delivery of our 3-year PROGRESS27 strategy 5 5 PROGRESS27 Q1 2025 Highlights Key Strategic Objective Key Financial Highlights 81% CSAT Score for 4 Product Applications #2 NPS Rank (NPS: Net Promoter Score) Mobile Banking Fully STP2 9.08% ROE* Best in Se
Slide 6: Q1 2025 Financial Results
Q1 2025 Financial Results
Slide 7: Q1 2025 net profit growth undergirded by ECL improvement
Q1 2025 net profit growth undergirded by ECL improvement 7 TOTAL INCOME COST • Total Income contracted marginally 1.9% 1.2% • Cost optimisation initiative Y-o-Y as: Net fund based • Lower trading income hampered 959 under PROGRESS27 taking shape 2,088 2,048 971 income Non-fund based income (-20.2%)
Slide 8: Loans holding up while CASA marginally improves; domestic asset quality continues to trend better
Loans holding up while CASA marginally improves; domestic asset quality continues to trend 8 better vis-à-vis the industry Financial Position Asset Quality Total Gross Securities Stage 2 Loans Group GIL Domestic GIL Assets Loans Portfolio Ratio 3.0%* 2.4%* 24.5%* 0.14% 2.7% 3.2% 353 238 239 93 3.5 3
Slide 9: Marked improvement in ECL contributed to higher profits
Marked improvement in ECL contributed to higher profits; partly offset by the reduction in non- 9 fund based income 9 Q1 Q1 RM mil Y-o-Y % 2024 2025 Net fund based income 1,386 1,487 101 7.3% Non-fund based income 703 561 -142 20.2% Total Income 2,088 2,048 -41 1.9% Operating expenses -959 -971 12 1
Slide 10: NIM sustained at 1.84% Q-o-Q
NIM sustained at 1.84% Q-o-Q underpinned by prudent domestic funding cost management; 10 NIM with FX swap higher by 7 bps at 1.91% 10 Net Interest Margin (NIM) NIM including liability management initiative Net Fund Based Income Y-o-Y: 1 bp Y-o-Y: 3 bps YTD: 2 bps YTD: 5 bps 7.3% 1.94% 1.96% 1.91% 1.
Slide 11: Contraction in net forex gain and trading income weighed on non-fund based income
Contraction in net forex gain as well as net trading and investment income weighed on non-fund 11 based income Non-Fund Based Fee Treasury Net Income from Others Income Income Income Insurance Business 1.1% 34.7% 23.0% 41.0% 20.2% • Q1 2024 had a one-off marketing 703 cost writeback of RM5 mil • Nor
Slide 12: Contained cost growth at 1.2% with continued focus on cost optimisation
Contained cost growth at 1.2% with continued focus on cost optimisation 12 12 Costs & CIR 5-year CIR 45.9% 47.4% 47.5% 47.4% CIR 46.7% 45.2% 44.2% 1.2% 9.0% 959 971 4.0% RM mil 2.4% 2.3% 1.2% Y-o-Y cost growth FY2021 FY2022 FY2023 FY2024 Q1 2025 Q1 2024 Q1 2025 Q1 Q1 RM mil Y-o-Y % 2024 2025 Personn
Slide 13: YTD loans growth mainly contributed by Community Banking and Commercial segments
YTD loans growth mainly contributed by Group Community Banking and Commercial segments 13 13 Gross Loans Mar Dec Mar RM bil YTD Annualised Y-o-Y 2024 2024 2025 GROUP COMMUNITY BANKING 142.5 149.9 152.0 1.4% 5.5% 6.6% Retail 114.8 122.0 124.1 1.7% 6.9% 8.0% Mortgage 83.2 88.7 90.3 1.8% 7.3% 8.5% Comm
Slide 14: Optimised funding cost via retail CASA; CASA ratio improved to 28.0%
Optimised funding cost via retail CASA; CASA ratio improved to 28.0% 14 14 Customer Deposits CASA by Segment Mar Dec Mar RM bil YTD Annualised Y-o-Y Y-o-Y: 2.3% 2024 2024 2025 GROUP COMMUNITY BANKING 40.9 42.0 42.8 1.9% 7.6% 4.7% YTD: 0.4% RM bil Retail 22.1 22.6 23.5 4.1% 16.5% 6.6% 242.9 249.6 248
Slide 15: GIL ratio contained at 1.50%; LLC stable at 76.9%
GIL ratio contained at 1.50%; LLC stable at 76.9% (115.7% incl. Regulatory Reserves) 15 Gross Impaired Loans (Group) Gross Impaired Loans (Domestic) 4.92% 4.99% 4.91% 4.85% 4.99% 5.20% 5.21% 5.13% 5.08% 5.06% GIL Ratio movement: Industry 8,000 2.20% GIL Ratio movement: 20,000 2.20% Y-o-Y: 20 bps 7,5
Slide 16: Continue to focus on recovery efforts in SME and International Business
Continue to focus on recovery efforts in SME and International Business 16 Group Community Banking Mortgage Unsecured Auto Finance SME 3.95% 3.94% 3.69% 3.61% 3.61% 7.73% 7.98% 7.41% 7.18% 7.15% 5.70% 5.70% 5.46% 5.12% 5.20% 11.96% 12.65% 12.81% 13.56% 13.10% 1.40% 1.01% 1.00% 1.20% 100 3.43% 3.37%
Slide 17: Higher profit for Community Banking and International Business; lower for Wholesale Banking
Higher profit for Community Banking and International Business mainly from lower ECL; 17 lower profit observed for Wholesale Banking due to lower non-fund based income 17 Group Community Banking Group Wholesale Banking Group International Business Q1 2024: RM1,044 mil Q1 2024: RM825 mil Q1 2024: RM2
Slide 18: Capital position remained robust for the Group and key banking subsidiaries
Capital position remained robust for the Group and key banking subsidiaries 18 18 RHB Bank Group RHB Bank 20. 0% 20. 0% 19. 0% 18. 0% 18. 0% 17. 0% 16. 0% 15. 0% 19.0% 18.5% 16. 0% 17.7% 17.4% 16.4% 16.0% 14. 0% 16.4% 16.0% 14.8% 14.7% 14. 0% 14.8% 14.7% 13. 0% 12. 0% 12. 0% 11. 0% 10. 0% 10. 0% 9.0
Slide 19: Summary
Summary
Slide 20: Concluding Remarks
Concluding Remarks 20 20 Key Financial Indicators Y-o-Y Earnings expanded 2.7% to RM750 mil driven by: i. Higher net fund based income (+7.3%) from healthy loans growth and effective funding cost management as well as cost containment ii. Improvement in ECL (loans) from RM213 mil (Q1 2024) to RM100
Slide 21: Thank You
THANK YOU www.rhbgroup.com INVESTOR RELATIONS CONTACT Email :investor.relations@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 nee
Slide 22: Appendix
Appendix
Slide 23: Key Financial Data
Key Financial Data 23 23 Financial Data FY2021 FY2022 FY2023 FY2024 Q1 2025 RM mil Income Statement Total Income 7,789 8,160 7,770 8,605 2,048 Operating Profit Before Allowances 4,266 4,554 4,081 4,583 1,077 Profit Before Tax 3,529 4,133 3,753 4,020 963 Net Profit 2,618 2,678 2,806 3,120 750 Balance
Slide 24: Key Financial Ratios
Key Financial Ratios 24 24 Financial Ratios FY2021 FY2022 FY2023 FY2024 Q1 2025 Profitability Return on Equity 9.6% 9.6% 9.5% 10.04% 9.08% Net Interest Margin 2.20% 2.24% 1.82% 1.86% 1.84% Cost to Income Ratio 45.2% 44.2% 47.5% 46.7% 47.4% Asset Quality Gross Impaired Loan Ratio 1.49% 1.55% 1.74% 1.
Slide 25: Segmental Performance
Segmental Performance 25 Group Community Banking Group Wholesale Banking Q1 2024: RM918 mil Q1 2024: RM363 mil 4.6% 19.7% Q1 2025: RM961 mil Q1 2025: RM434 mil 5.2% Net Fund Based 607 638 3.6% 47.7% 14.5% 7.9% Income 311 322 199 294 164 193 178 140 Retail SME CBIB Treasury International Group Commun
Slide 26: Retail Banking
Retail Banking 26 26 RM bil Gross Loans RM bil Deposits 8.0% 7.6% 140 83 90 24 120 100 22 80 CASA 60 115 124 40 61 66 Fixed Deposit 20 - Mar 2024 Mar 2025 Mar 2024 Mar 2025 Retail Market Share * Asset Quality RM mil 9.3% 9.4% 9.5% 9.5% 9.2% 0.92% 0.94% 0.96% 0.92% 0.94% 9.0% 9.0% 9.0% 9.1% 9.1% 1,06
Slide 27: SME
SME 27 27 Gross Loans Deposits RM bil RM bil 0.8% 0.5% 35.0 35 36 30.0 19 25.0 20.0 19 CASA 15.0 28 28 Fixed Deposit 17 16 10.0 5.0 - Mar 2024 Mar 2025 Mar 2024 Mar 2025 *Numbers may not sum up due to rounding SME Market Share * RM mil Asset Quality 3.43% 3.37% 3.29% 3.21% 3.36% 8.9% 8.9% 9.0% 9.0%
Slide 28: Asset Under Management and Market Positions; Key Awards
Asset Under Management and Market Positions 28 28 Asset Under Management (AUM)* Investment Banking League Table YTD Mar 2025 Market Share Ranking RM bil Equities Broking: 3.4% - By value 6.2% 5th - By volume 6.8% 5th 53 54 Debt Capital Markets: 9 9 - MYR sukuk 17.5% 3rd Singapore - MYR bonds (Conven
Slide 29: Investment Banking – Notable Deals
Investment Banking – Notable Deals 29 29 CF/ECM DCM M&A Green Esteel Pte Ltd SumisaujanaGroup Berhad OSK Rated Bond Sdn Bhd Proposed Subscription for 50.1% (RM315.9 mil) RM346.5 mil IPO on ACE Market 4th Issuance of RM750.0 mil Sukuk Wakalah under its of the enlarged issued share capital of Principa
Slide 30: Islamic Banking
Islamic Banking 30 30 PBT Gross Financing RM mil RM bil 2.6% 9.8% 100 .0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 85 93 20.0 249 10.0 - 243 Mar 2024 Mar 2025 Q1 2024 Q1 2025 Market Share 9.3% 9.5% Gross Financing/ Asset Quality Total Gross Financing (Domestic) RM mil 1.48% 1.53% 1.54% 0.94% 0.97% 44.6% 45
Slide 31: RHB Bank Singapore
RHB Bank Singapore 31 31 PBT Gross Loans & Deposits SGD mil SGD bil 40 9.8% 7.8% 35 6.4% 30 25 20 Mar 2024 15 29 26 10 Mar 2025 10 8 9 9 5 Dec 2023 Dec 2024 - Q1 2024 Q1 2025 Loans Deposits Gross Impaired Loans Ratio Credit Charge Ratio 1.03% 0.05% 0.14% -0.08% 0.10% -0.01% 0.85% 0.78% 0.75% 0.85% M
Slide 32: Overseas Loans
Overseas Loans 32 32 Mar Dec Mar RM bil YTD Y-o-Y 2024 2024 2025 Overseas Operations 34.2 34.4 33.3 -2.9% -2.5% Singapore 28.4 29.4 28.6 -2.8% 0.5% Others* 5.8 5.0 4.7 -3.5% -17.1% of which: Cambodia 3.6 3.2 3.2 -1.7% -11.0% Thailand 1.7 1.3 1.2 -7.0% -29.7% * Others = not included above are Brunei,