Rhb Bank Bhd. · MYX:RHBBANK
Rhb Bank Bhd — RHB Banking Group — Q3 2015 Earnings Presentation
37 slides from Rhb Bank Bhd's earnings presentation, Nov 30, 2015
Slide 1: Quarter 2015 Financial Results
Investor Presentation 34 Quarter 2015 Financial Results TOGETHER WE PROGRESS Dato’ Khairussaleh Ramli Group Managing Director RHB Banking Group 30 November 2015 RHB Capital Berhad (312952 -H) RHB °
Slide 2: Executive Summary 3rd Quarter 2015 Financial Results
Executive Summary 3rd Quarter 2015 Financial Results Corporate and Strategy Update Summary and Outlook
Slide 3: Executive Summary (1/2)
Executive Summary (1/2) 1 • Net profit at RM1,195.3 million, 23.0% lower year-on-year • Excluding one-off CTS expenses of RM308.8 million, normalized net profit was lower by 8.0% 2 Revenue marginally down by 1.1% mainly due to lower investment banking related fee income and lower trading income 3 Gr
Slide 4: Executive Summary (2/2)
Executive Summary (2/2) • Islamic financing portfolio grew by 12.0% for the first nine months of 2015 and increased by 7 21.8% year-on-year to reach RM28.6 billion. • Islamic financing represents 21.4% of Group’s total domestic gross loans and financing. • Industry ranking for Islamic financing impr
Slide 5: RHB Banking Group Scorecard 2015
RHB Banking Group Scorecard 2015 Top Level Indicators Target 2015 September 2015 >11.5% 8.1%N1 ROE (Exclude CTS: 9.6%) Loans Growth 10% 5.0%N2 CASA Growth >10% 8.6%N2 Gross Impaired <1.8% 1.9% Loans Ratio 62.8% Cost to Income Ratio <51% (Exclude CTS: 55.9%) International Contribution >13% 14.4% N1 A
Slide 6: Executive Summary 3rd Quarter 2015 Financial Results
Executive Summary 3rd Quarter 2015 Financial Results Corporate and Strategy Update Summary and Outlook
Slide 7: Financial Results
Financial Results Q-o-Q Y-o-Y Q3 2015 Q2 2015 Change 9M 2015 9M 2014 Change Year-on-Year Performance: RM mil % % ♦ Gross fund based income increased by 10.8% on the back of Net Interest Income 844 784 8 2,428 2,486 -2 10.0% increase in gross loans and financing. Net Islamic Fund Base Income 207 191
Slide 8: Income Mix & NIM
Income Mix & NIM Income Mix 35% 32% 39% 35% 34% 31% 35% 33% 41% 65% 68% 61% 59% 65% 66% 69% 65% 67% Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 9M 14 9M 15 Net Fund Based Income Non-fund Based Income Net Interest Income & NIM 2.33% 2.29% 2.29% 2.26% 2.22% 2.40% 2.35% 2.13% 2.13% 2.30% 2.
Slide 9: Other Operating Income
Other Operating Income RM mil Composition 9M 2014 1,601 9M 2015 4% 6% Fund Management & UT Fee ▲24%1,601 28 (7%) (5%) 144 18% Service Charges, Commission, -5 Guarantee & Commitment Fees ▼1% 1,624 439 (14%) Net Brokerage ▼6% 1,607 -17 6% (9%) 66% 255 (65%) Corporate Advisory, Underwriting & Arrangeme
Slide 10: Operating Expenses
Operating Expenses RM mil Composition Exclude CTS 9M 2014 2,424 9M 2015 11% 10% 9% 10% 20% (10%) 21% CTS 309 309 (8%) 60% 59% ▲100% 9M 2014 9M 2015 Personnel 46 1,497 Cost ▲3% Personnel Costs Establishment Costs Marketing Expenses Establishment Administration and General Expenses Cost ▲8% 38 535 Cos
Slide 11: Allowances for Loan Impairment
Allowances for Loan Impairment Increase/Decrease in Allowances for Loan Impairment RM mil 18 8 127 -166 ▼ 36% -47 166 106 9M 2014 Increase in IA Decrease in Increase in Others Decrease in CA Decrease in Write 9M 2015 Recoveries Off Asset Quality Allowances for Loan Impairment & Credit Charge Ratio R
Slide 12: Financial Position as at 30 September 2015
Financial Position as at 30 September 2015 Change for Y-o-Y Sep Dec Sep Change 9M 2015 RM mil 2015 2014 2014 % % Increase in total assets driven mainly by growth of AFS and loans and financing. Total Assets 229,558 219,354 209,454 5 10 Excluding one large corporate repayment, gross Total Financi
Slide 13: Loans, Advances and Financing
Loans, Advances and Financing RM mil - 244 - 59 - 880 901 1,142 - 1,066 1,451 - 2,209 2,419 5,123 149,552 142,486 Dec 2014 Purchase of Working Purchase of Construction Personal Use Purchase of Credit Card Purchase of Purchase of Others Sep 2015 Res. Property Capital Non-Res. PPE Other Securities Tra
Slide 14: Loans Profile and Market Share
Loans Profile and Market Share Gross Loans Gross Loans by Interest/ RM bil Profit Rate Sensitivity 14% 25% 300 20% 16% 11% 17% 16% 13% 9% 250 15% 10%10% Fixed Rate 14% 14% 10% 200 9% 7% 21% 10% 5% 0% 8% 150 -5% 100 142.5 149.6 Variable 121.8 -10% -15% 97.4 111.5 50 Rate -20% 0 79% 2011 2012 2013 201
Slide 15: Loans By Type of Customers
Loans By Type of Customers Composition Loans by Type of Customers RM mil 2,899 -5,063 5% 3% 3,389 10% 7% 11% 5,841 11% 13% 9% 6% 7% 27% 24% 26% 29% 30% 149,552 142,486 12% 12% 15% 10% 10% Dec 2014 SME International Individuals Corporate Sep 2015 45% 45% 45% 45% & Others 43% September 2015 22,097 19,
Slide 16: Customer Deposits
Customer Deposits RM mil FD CASA Dec 2014 157,134 -1% +9% Demand Deposits 2,482 Sep 2015: RM121,864 mil Sep 2015: RM37,095 mil Dec 2014: RM122,935 mil Dec 2014: RM34,167 mil Saving Deposits 446 Negotiable Instrument - 23 of Deposit CA SA Fixed Deposits - 1,071 +9% +6% Sep 2015 158,968 Sep 2015: RM28
Slide 17: Customer Deposits Profile & Market Share
Customer Deposits Profile & Market Share RM bil Customer Deposits RM bil FD & NID Maturity Structure 23% 350 23% 19% 122.9 121.9 14% 0.8 0.5 20% 108.8 105.6 300 19% 8% 88.1 1.0 0.4 13% 7% 10% 20.3 19.6 250 14% 1.5 18.2 12.2 -0.4% 8% 5% 200 8% 14.8 5% 0% 150 -2% 101.8 101.8 -10% 89.6 93.0 100 71.8 13
Slide 18: Funding
Funding Funding Composition CASA Composition 1% 1% 1% 1% 1% RM bil 2% 3% 3% 3% 3% 14% 15.0% 11% 11% 12% 12% 13% 61.0 11% 11% 11% 7% 8% 10% 9% 10% 9% 9% 10.0% 9% 9% 9% 51.0 6% 6% 6% 6% 6% 5.0% 41.0 4% 31.0 79% 77% 75% 74% 74% 0.0% 21.0 37.1 32.1 34.2 27.8 29.4 -5.0% 11.0 1.0 -10.0% 2011 2012 2013 201
Slide 19: PBT by SBG
PBT by SBG RM mil Composition Retail TSY 9M 2014 2,091 +28% +48% 5% 14% (3%) (9%) 24% 199 9M 2015: RM919 mil 9M 2015: RM302 mil (43%) Retail 9M 2014: RM720 mil 9M 2014: RM203 mil 13% (14%) TSY 99 BBG CIB 44% GIB 47 (31%) -19% -49% BBG - 62 9M 2015: RM264 mil 9M 2015: RM505 mil 9M 2014: RM987 mil Cor
Slide 20: Asset Quality
Asset Quality Gross Impaired Loans Ratio Gross Impaired Loans Ratio (%) by Purpose Loan Loss 68.1% 66.0% 63.7% 61.1% 75.9%* Working Capital Purchase of Residential Coverage Property (%) 3.59 6.1 5.3 5.3 2.99 2.81 3.9 3.3 3.3 4.4 3.4 2.5 2.1 2011 2012 2013 2014 Sep 2011 2012 2013 2014 Sep 2.03 1.94 2
Slide 21: RHB Capital: Capital Position & Market Capitalisation
RHB Capital : Capital Position & Market Capitalisation N1 Leverage Ratio Gearing and Double Leverage N2 Multiple (times) Times 13.1 0.8 149% 136% 134% 137% 135% 12.5 120 % 0.54 11.7 11.4 11.2 0.5 0.39 0.39 0.36 0.36 70% 0.2 20% 2011 2012 2013 2014 Sep 2015 2011 2012 2013 2014 Sep 2015 Gearing Double
Slide 22: Capital Position (1/2)
Capital Position (1/2) RHB Bank Group: Capital Development in 9M 2015 ▲1.2% ▲0.1% 16.3% 15.0% 12.0% 11.0% 8.0% 15.0% 16.2% 6.0% 10.6% 11.7% 4.5% Dec 2014 Increase Issuance of New Sub- Sep 2015 2015 Requirements in CET1 Debt/Effect of Transitional Treatment CET 1 Tier 1 Total Capital RHB Bank 15.7%
Slide 23: Capital Position (2/2)
Capital Position (2/2) RM bil RHB Islamic Bank RM bil RHB Investment Bank 16.3% 18% 2.5 35% 6.5 2.3 14.5% 16% 2.1 26.3% 30% 5.5 12.9% 14% 1.9 25% 1.7 4.5 10.9% 12% 21.3% 1.5 20% 10% 1.3 3.5 2.8 3.0 1.1 1.0 1.0 0.9 0.9 2.2 2.2 15% 8% 0.9 2.5 0.7 6% 10% 1.5 0.5 4% 0.3 5% 0.5 0.1 2% -0.1 0% -0.5 Dec 20
Slide 24: Corporate and Strategy Update
Executive Summary 3rd Quarter 2015 Financial Results Corporate and Strategy Update Summary and Outlook
Slide 25: Corporate Exercise: Key Milestones
Corporate Exercise: Key Milestones Transaction timeline 2015 2016 13 Apr Apr May Jul Oct Nov Dec Jan Feb Mar May 1.Announcem 1.Submission 1.Approvals from 1.Entitlement date 1.Approval from 1.Approval from ent on the s to BNM/MOF and Bursa for Rights Issue Foreign High Court Proposals BNM/MOF Securi
Slide 26: Ignite 2017: We continue to focus on executing the initiatives
Ignite 2017: We continue to focus on executing the initiatives under our reframed strategy and will provide regular update on our progress ♦ Tactical Cost Savings ♦ Capital Optimisation Career Transition Scheme Optimise capital consumption through ♦ Affluent Segment Strategy Reducing non-payroll cos
Slide 27: Summary and Outlook
Executive Summary 3rd Quarter 2015 Financial Results Corporate and Strategy Update Summary and Outlook
Slide 28: Economic Outlook
Economic Outlook Business and consumer sentiment affected by: i. slowdown in the property sector, weaker commodity prices and ringgit depreciation ii. weaker external demand and downside risk for export growth Economic growth is supported by resilient consumer spending and domestic investment, both
Slide 29: Summary and Concluding Remarks
Summary and Concluding Remarks 9M 2015 results affected by softer debt and equity capital market conditions, amidst current global macroeconomic environment Global economic outlook is expected to remain challenging and volatile, hence immediate focus on optimising operational efficiency and maintain
Slide 30: www.rhbgroup.com
www.rhbgroup.com INVESTOR RELATIONS CONTACT: Ms Yap Choi Foong Group Chief Financial Officer +(603) 9280 2489 cfyap@rhbgroup.com Ms Teh Soh Geok Head, Financial Reporting +(603) 9280 2154 teh.soh.geok@rhbgroup.com This material is prepared for general circulation. Any recommendation or view containe
Slide 31: Key Business Highlights
meme Anineindix rhe Key Business Highlights ba | Myanmar 4
Slide 32: Retail Business Performance
Retail Business Performance Mortgage Personal Use 7.7% 8.1% 9.4% 7.3% 7.0% 7.0% 7.8% 8.9% 9.1% 7.4% 31.5 36.6 20.6 22.2 25.5 7.7 8.6 5.8 7.2 5.0 2011 2012 2013 2014 Sep 2015 2011 2012 2013 2014 Sep 2015 Mortgage Loans (RM bil) Market Share Personal Use (RM bil) Market Share Auto Finance Credit Card
Slide 33: CIB Market Share
CIB Market Share YTD Sep 2015 FY 2014 FY 2013 Market Share Ranking Market Share Ranking Market Share Ranking Debt Capital Market - MYR sukuk* 22.74% 2 12.4% 4 17.6% 4 - Conventional & 20.47% 2 11.5% 4 16.3% 4 Islamic bonds Mergers & Acquisitions - by value 5.65% 13 22.4% 1 11.8% 3 - by deal count 19
Slide 34: Equities, Futures & Asset Management
Equities, Futures & Asset Management Sep 2015 FY 2014 Total AUM RM bil Equities Market Market Ranking Ranking 12.1% 11.9% (by value) Share Share 10.0% 10.0% 10.0% Malaysia 48.5 50.1 2.6% 7.0 - By value 8.4% 5th 9.5% 3rd 39.3 5.9 5.0% - By volume 12.4% 3rd 13.7% 2nd 1.3 0.0% 31.0 21.3 21.0 Singapore
Slide 35: Business Banking and SME
Business Banking and SME Gross Loans Customer Deposits RM bil RM bil 25. 0 35.0 17.4% 14.1% 12.8% 12.6% 20. 0% 9.3% 9.3% 8.8% 9.9% 15. 0% 8.8% 30.0 20. 0 10. 0% -0.4% 25.0 5.0 % 0.0 % 20.9 21.9 15. 0 20.0 19.2 -5.0% -10.0% 15.0 16.4 15.0 11.3 12.2 10. 0 17.8 19.6 10.8 9.4 -15.0% 14.5 15.8 -20.0% 8.9
Slide 36: Islamic Financial Performance
Islamic Financial Performance PBT Gross Loans RM mil RM bil 350 6.9% 7.6% 7.6% 6.5% 6.6% 300 250 200 150 304 254 100 211 209 218 25.5 28.6 16.3 18.7 13.1 50 0 2011 2012 2013 2014 9M 2015 2011 2012 2013 2014 Sep 2015 Growth 133% -1% 5% 39% 16%* Growth 44% 25% 15% 36% 22%* Gross Loans Market Share Ass
Slide 37: RHB Singapore Business Performance
RHB Singapore Business Performance 80 PBT Loans, Deposits & Total Assets SGD mil 74 SGD bil 70 7.7 60 32 7.7 0.3 0.5 6.1 37 50 42 39 5.2 0.9 40 9 4 0.8 4.5 4.7 30 4.1 4.2 3.4 3.6 2.8 7.4 7.2 20 39 42 42 2.5 33 35 1.7 2.3 2.1 5.2 10 4.4 (5) - (1 0) 2011 2012 2013 2014 Sep 2015 2011 2012 2013 2014 9M