Slide 1: Investor Presentation FY2012 Financial Results
Investor Presentation FY2012 Financial Results Mr. Kellee Kam Group Managing Director RHB Banking Group 26 February 2013
Slide 2: Agenda
AGENDA Executive Summary FY2012 Financial Results OSK Investment Bank - Integration Updates Summary
Slide 3: Key Messages for 2012
Key Messages for 2012 ♦ Improved underlying Group performance, PBT up 6.0% and net profit up 5.7% ♦ Strengthened balance sheet position across all dimensions: Financial Performance • Above-market loans and deposits growth at 14.4% and 19.3% respectively • Capital, funding, liquidity and asset qualit
Slide 4: RHB Banking Group Scorecard 2012
RHB Banking Group Scorecard 2012 Top Level Target Actual Indicators 2012 2012 Loans >12.0% 14.4% Growth Deposits >12.0% 19.3% Growth Gross Impaired <3.0% 2.99% Loans Ratio N1 ROE >14.0% 13.4% ROA 1.2% 1.0% Cost to Income ratio <44.0% 47.5% International 10% 6% Contribution N1: Should OSKIB and the a
Slide 5: Agenda
AGENDA Executive Summary FY2012 Financial Results OSK Investment Bank - Integration Updates Summary
Slide 6: Financial Results
Financial Results Q-o-Q Y-o-Y On a Y-o-Y basis: Q4 Q3 FY FY Change Change RM mil 2012 2012 2012 2011N1 ♦ Underlying PBT and net profit, up 6% each % % 4 4 ♦ 10% increase in total income due to strong fee Net Interest Income 774 745 2,960 2,853 income, which was up by RM135 mil, absence of Other Oper
Slide 7: Total Income
Total Income Net Interest Income (RM mil) Total Income Mix 523 416 +4% 26% 25% 29% 8% 10% 2,853 2,960 10% 66% 65% 2011 Interest Interest 2012 61% Income Expense Higher NII mainly due to higher interest income on the back of 14.4% 2010 2011 2012 loans growth, partly offset by higher interest expens
Slide 8: Others Operating Expenses
Others Operating Expenses RM mil 2,294 Total + 21% Composition 1,903 11% 1,340 10% Personnel Costs + 13% 1,182 58% 21% Establishment 472 + 24% Costs 381 Personnel Costs Establishment Costs Marketing Expenses Admin & General Expenses Marketing 229 + 57% Expenses 146 Cost-to-Income Ratio 47.5% Admin &
Slide 9: Allowances for Loan Impairment
Allowances for Loan Impairment Movement of Allowances for Loan Impairment (RM mil) -24 Higher allowances for loan impairment contributed largely by higher IA, partially offset by higher bad debts 158 recoveries and lower CA 131 2 -3 +1% Absolute impaired loans down 4% to RM3.3 bil 146 148 N1 201
Slide 10: Financial Position
Financial Position Q-o-Q Y-o-Y ♦ Expansion in total assets driven by loans growth and Dec Sept Dec Change Change investment portfolio RM mil 2012 2012 2011N1 % % ♦ Gross loans: i. Excluding OSKIB, gross loans grew by 12.3% Total Assets 189,078 169,479 152,304 12 24 ii. Domestic loans up 13.0% Total
Slide 11: Loans, Advances and Financing
Loans, Advances and Financing Q-o-Q Y-o-Y Dec Sept Dec Change Change RM mil 2012 2012 2011N1 Gross Loans (RM bil) & Growth (%) % % 25% 22% 300 Working Capital 26,520 23,945 20,360 16% 11 30 20% 14% 15% 13% 11% 20% 250 11% 10% 16% 13% Purchase of Residential 10% 200 22,155 21,668 20,604 2 8 13% 14% 1
Slide 12: Loans Profile & Market Share
Loans Profile & Market Share Composition by Type of Customers Gross Loans by Interest/Profit Rate Sensitivity 1% 1% 7% 5% 6% 7% 7% Fixed Rate 5% 11% 30% 11% 10% Variable Rate 34% 28% 70% 27% 26% 29% 17% 16% 13% 12% 11% Domestic Market Share 9.60% 9.5% 9.40% 9.3% 43% 44% 45% 43% 9.1% 41% 9.20% 9.00%
Slide 13: Loans, Advances and Financing by SBG
Loans, Advances and Financing by SBG Q-o-Q Y-o-Y Dec Sept Dec Change Change RM mil 2012 2012 2011N1 % % Retail 42,103 41,523 40,688 1 3 Business Banking 11,695 11,634 10,519 1 11 CIB 35,108 32,316 28,788 9 22 Islamic 16,266 15,957 13,060 2 25 Global Financial Banking 6,302 5,207 4,383 21 44 Total Lo
Slide 14: Customer Deposits
Customer Deposits Q-o-Q Y-o-Y Dec Sept Dec Customer Deposits Composition Change Change RM mil 2012 2012 2011 % % Fixed Deposits 108,697 95,650 87,946 14 24 5% 5% of which: MMTD 23,368 22,490 23,259 4 0 19% 16% Demand Deposits 22,504 23,200 21,436 -3 5 Savings Deposits 6,933 6,741 6,360 3 9 17% NIDs
Slide 15: Customer Deposits Profile & Market Share
Customer Deposits Profile & Market Share Customer Deposits (RM bil) FD & NID Maturity Structure (RM bil) 23% 108.8 23% 95.8 1.0 250 15% 19% 88.1 89.3 89.5 12% 20% 0.6 18.2 12% 15% 19% 1.5 0.5 0.5 12.3 200 14.8 15.8 12.3 14% 8% 10% 150 11% 9% 7% 0% -2% 100 -4% 82.9 89.6 -10% 71.8 73.0 76.7 138.2 50 9
Slide 16: Asset Quality
Asset Quality Gross Impaired Loans Ratio (%) Gross Impaired Loans Ratio (%) 4.59 by Purpose 3.59 3.59 Working Capital Purchase of Residential 3.36 3.33 Property 3.12 2.99 2.68 2.54 6.8 6.1 6.7 2.23 5.3 4.4 2.13 2.00 4.2 2010 2011 2012 2010 2011 2012 Dec 10 N1 Dec 11 N1 Mar 12 June 12 Sept 12 Dec 12
Slide 17: Capital Position
Capital Position Times RHB Capital RM bil RHB Bank 152% 16.0% 149% 0.8 20.0 15.1% 17% 13.9% 0.63 136% 0.7 12.6% 11.9% 13% 15.0 10.5% 0.6 0.54 11.2% 11.8% 130% 10.7 9% 0.5 9.7% 9.6 7.9 10.0 0.4 0.39 5% 3.6 4.3 5.0 3.3 1% 0.3 0.2 80% 0.0 -3% Dec 10 Dec 11 Dec-12 N1 Dec 10 Dec 11 Dec 12 Tier 1 Capital
Slide 18: Capital Position - RHB Bank Group
Capital Position - RHB Bank Group Core Tier 1, Tier 1 & Total Capital Net Profit over Average RWA Ratios (%) RM bil 1.9% 2.1% 2.0% 15.99 15.42 2% 13.97 11.78 11.36 9.96 -1% 9.22 11.06 10.75 80.9 98.0 82.8 -3% 2010 2011 2012 2010 2011 N1 2012 Core Tier 1 Total Tier 1 Total Capital Ratio RWA Net Profi
Slide 19: Return to Shareholders
Return to Shareholders Market Capitalisation Dividend Per Share 30,000 8.72 10 25,000 7.48 7.69 8 20,000 5.85 5.30 6 18,778 19,180 17.41% 15,000 3.90 21.38% 16,492 4 10.6% 17.45% 16.09% 10,000 12,598 11,413 8.6% 5,000 8,399 2 5.0% 9.0% 5.0% 5.0% 8.0% 6.0% 0 0 2007 2008 2009 2010 2011 2012 2007 2008
Slide 20: Agenda
AGENDA Executive Summary FY2012 Financial Results OSK Investment Bank - Integration Updates Summary
Slide 21: Update on Integration - Key Initiatives
Update on Integration - Key Initiatives On track to achieve full integration by 2013 ♦ Investment banking teams won together several marquee deals • ECM and DCM mandates as well as Sukuk issuance Teams Are • Singapore DCM team being set-up Working Together ♦ Research coverage streamlined since mid-J
Slide 22: Update on Integration - Business Functions
Update on Integration Overall organization is ready, teams shifting to execution mode Customer Day 1 Single Platform CSPA Completion (Vesting) Day 1 28 May 9 Nov 2012 Apr 2013 Q4 2013 2012 • Set-up of • Cascading organization Organization, integration design and appointments Appointment & governance
Slide 23: Update on Integration
Update on Integration Early collaborations already translated into revenues Recap: Estimated Synergies Over 3 Years 149 150 5 112 17 5 100 63 15 5 2 127 50 92 56 0 Year 1 Year 2 Year 3 Revenue Cost Funding Business Synergies & Revenue Synergy (2012) Integration Costs 40 58 68 18 Pre-completion Post-
Slide 24: Agenda
AGENDA Executive Summary FY2012 Financial Results OSK Investment Bank - Integration Updates Summary
Slide 25: 2013 Outlook
2013 Outlook Top Level Target Actual Key Focus Areas (R.A.P.I.D) Indicators 2013 N1 2012 2013-2015 Regionalisation Programme 30% of Group revenue from ASEAN+ by 2017 ROE >13.0% 13.4% • Strengthen regionalisation governance & risk management framework • Resource talent to drive regionalisation prog
Slide 26: Summary
Summary 1 Good progress against strategic initiatives, delivering satisfactory set of results 2 Acquisition of OSKIB marks a major milestone, providing enhanced regional footprint, product and services offering, greater scale domestically and re-positioned RHB as the 4th largest banking group in Mal
Slide 27: END
END INVESTOR RELATIONS CONTACT: Ms Yap Choi Foong Head, Investor Relations and Merger & Acquisition Integration Division +(603) 9280 2463 cfyap@rhb.com.my This material is prepared for general circulation. Any recommendation or view contained in this document does not have regard to the specific inv
Slide 28: Appendix: Key Business Highlights
APPENDIX: KEY BUSINESS HIGHLIGHTS
Slide 29: Retail Business Performance
Retail Business Performance Mortgage Personal Use 7.4% 7.8% 7.1% 7.4% 7.7% 7.3% 6.6% 6.7% 7.0% 5.7% 5.8 20.5 22.2 5.0 14.1 16.0 18.8 2.6 2.7 3.5 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Mortgage Loans (RM bil) Market Share Personal Use (RM bil) Market Share ASB Credit Card 23.8% 25.6% 6.0%
Slide 30: Easy by RHB
Easy by RHB Number of Outlets Asset Composition 245 236 25 25 50 50 P.Loan 111 40 42 27% 7 19 ASB 32 121 128 73% 14 53 2 July 2009 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Easy Standalone Tesco POS LRT Financial Performance Gross Loans (RM bil) 6.6% 16 0.0% 15 5.0% 15 0.0% 14 5.0% 5 14 0.0% 4.5% 13 5.0%
Slide 31: RHB Insurance Business Performance
RHB Insurance Business Performance General Insurance - Bancassurance - Gross Premium (RM mil) Gross Premium (RM mil) ^ 2.7% 3.0% 2.3% 2.3% 307 307 2.1% 109 83 132 305 383 467 224 271 62 198 232 70 2008 2009 2010 2011 2012 2010 2011 2012 ^ As at Sept 2012 Gross Premium Market Share Non-Credit Related
Slide 32: Domestic Market Share - IB
Domestic Market Share - IB 2012# 2011 2010 Market Market Market Ranking Ranking Ranking Share Share Share Debt Capital Market * 14.9% 4th 9.7% 4th 9.9% 3rd Mergers & Acquisitions 7.1% 11th 16.3% 3rd 58.8% 1st Equities Capital Market ^ 2.6% 11th 6.8% 4th 7.7% 3rd # Combined RHBIB and OSKIB market dat
Slide 33: Brokerage/Equity & AUM Market Share - by Geographical
Brokerage/Equity & AUM Market Share - by Geographical 2012 Market Ranking Share Malaysia # - Broking (by value) 11.6% 2nd - Broking (by volume) 16.2% 1st Singapore 7.4% 4th Hong Kong 0.07% 108th Indonesia 2.1% 14th Thailand 0.7% 28th Cambodia 8.1% 5th AUM by Geographical 50000 AUM - Malaysia 15% 10.
Slide 34: Islamic Business Performance
Islamic Business Performance PBT (RM mil) 160.0% Gross Loans 155.0% 150.0% 6.9% 6.5% 145.0% 140.0% 5.6% 215 135.0% 130.0% 125.0% 5.1% 120.0% 115.0% 4.5% 110.0% 105.0% 165 100.0% 95.0% 90.0% 85.0% 80.0% 75.0% 115 70.0% 211 209 65.0% 60.0% 55.0% 16.3 114 50.0% 13.1 45.0% 40.0% 65 35.0% 9.0 30.0% 87 91
Slide 35: RHB Singapore Business Performance
RHB Singapore Business Performance 50 PBT (SGD mil) 160.0% 155.0% Loans, Deposits & Total Assets (SGD bil) 150.0% 145.0% 45 140.0% 135.0% 130.0% 125.0% 40 120.0% 115.0% 110.0% 4.4 105.0% 35 100.0% 95.0% 30 90.0% 85.0% 80.0% 3.4 2.8 75.0% 25 70.0% 65.0% 2.7 2.9 2.3 2.3 60.0% 55.0% 20 50.0% 45.0% 1.9