Analyst Presentation

Investor Presentation
1st Quarter 2016 Financial Results
Dato' Khairussaleh Ramli
Group Managing Director
RHB Banking Group
25 May 2016
Executive Summary
Q1 2016 Financial Results
Corporate and Strategy Update
Summary and Outlook
Executive Summary (1/3)
 First quarter 2016 pre-tax profit at RM746.5 million, 15.8% higher y-o-y
 Net profit at RM552.0 mil, 15.9% higher y-o-y.
Earnings
 Strong performance driven by net interest income growth and positive results of cost
optimisation efforts
 Positive jaw recorded. Cost-to-income ratio at 48.5%, lowest in 3 years, compared to
56.3% for full year 2015 (excluding CTS expenses)
 Annualised ROE at 9.6%
Assets
and
Liabilities
 Gross loans grew by 4.2% y-o-y to RM149.6 billion, but decreased by 1.2% q-o-q
mainly due to 1 large corporate repayment amounting to RM1.0 billion.
 Gross impaired loans ratio improved to 1.82%
 Customer deposits decreased marginally by 0.4% q-o-q to RM157.5 billion
• However, CASA ratio stable at 24.1% as at 31 March 2016 vs 24.0% in Dec 2015
 Mortgage loans and financing increased by 12.4% on an annualised basis
Business
Performance
 SME lending gaining further traction, growing by 14.5% annualised, with market share
increasing to 8.9% as at Mar 2016
 Double digit profit growth recorded in Group Treasury and International Business
 Islamic Banking business continued:
• Pre-tax profit increased by 34.6% y-o-y
• Islamic Financing represented 24.1% of the Group’s total domestic gross loans
and financing, up from 23.0% as at Dec 2015
Page | 3
Executive Summary (2/3)
Capital
and
Liquidity
 RHB Bank Group maintained strong capitalisation, CET-1 at 12.2% and total CAR at
16.5%
 Enlarged RHB Bank Group on proforma basis as at 31 Dec 2015:
• CET-1 at 12.5% and total CAR at 17.2%, positioning us as one of the best
capitalised banking groups in Malaysia
 RM2.343 billion Rights Issue completed in Dec 2015
 Internal reorganisation completed in Apr 2016
Corporate Update
 Obtained High Court order on 13 May 2016 for the Proposed Distribution of RHB
Bank shares to shareholders of RHB Capital
 EGM for winding up of RHB Capital to be held end June 2016
 Listing of RHB Bank expected by end June 2016
 Remained focused on executing our strategies anchoring on the 3 key themes
IGNITE 2017
Update
 Made good progresses in key IGNITE initiatives:
• SME market share further strengthened to 8.9%
• Digital initiatives:
‐ Launched the new RHB Now Mobile banking App as well as the RHB Pay
Anyone
‐ Fintech collaboration with Startupbootcamp
• Headcount at 14,970
• Network optimisation:
‐ EASY outlets reduced to 131 outlets, with 120 branches with Easy capability
‐ ATM network rightsized to 1,226
‐ Domestic investment banking branches reduced to 50
Page | 4
Executive Summary (3/3)
Awards
 The Edge-Thomson Reuters Lipper Fund Awards 2016
• The most awarded fund house in Malaysia for consecutive
2 years, with 15 awards won across equity and fixed
income category.
 Malaysian E-Payments Excellence Awards (MEEA) organized by Malaysian Electronic Clearing Corp Sdn Bhd
(MyClear)
• Best FPX Bank
• Runner-up for the National Biller Acquisition in Large
Acquirer Category
 7th Retail Banker International Asia Trailblazer 2016
Awards
• Excellence in SME Banking
 13th Annual RAM League Awards
• Lead Manager Award 2015 by Programme Value
• Lead Manager Award 2015 by Number of Issues
• Market Pioneer Awards 2015 – Lead Managers’
Recognition
 The Asian Banker – Transaction Banking Awards 2016
• Best Trade Finance Bank in Malaysia
 EPF’s External Portfolios Managers Awards
• Best Domestic Fixed Income Portfolio Manager Year 2015
Page | 5
RHB Banking Group Scorecard For 2016
Top Level Indicators
Target 2016
Actual Q1 2016
ROE
10%
9.6% N1
Loans Growth
8%
-1.2% N2
CASA Growth
8%
0.1% N2
Gross Impaired Loans Ratio
≤ 2.0%
1.82%
Cost to Income Ratio
≤ 53%
48.5%
10%
8.3%
Overseas Profit Contribution
Page | 6
N1 Anualised
N2 Change from Dec 2015
Executive Summary
Q1 2016 Financial Results
Corporate and Strategy Update
Summary and Outlook
Our emphasis on profitability and quality growth is showing good
progress, with positive JAW; asset quality improving
Financial Results
Financial Position
Total
Assets
-2.3%
Gross
Loans
-1.2%
Operating
Profit Before
Allowance
Total
Income
+20%
+6%
Mar 2016: RM225.5 bil
Dec 2015: RM230.7 bil
Mar 2016: RM149.6 bil
Dec 2015: RM151.4 bil
Q1 2016: RM1.6 bil
Q1 2015: RM1.5 bil
Q1 2016: RM826.2 mil
Q1 2015: RM688.8 mil
Customer
Deposits
CASA
Profit
Before Tax
-0.4%
+0.1%
Mar 2016: RM157.5 bil
Dec 2015: RM158.2 bil
Mar 2016: RM38.0 bil
Dec 2015: RM37.9 bil
Shareholders’
Equity
Net Assets
Per Share
+2%
Mar 2016: RM23.5 bil
Dec 2015: RM23.1 bil
+16%
Q1 2016: RM746.5 mil
Q1 2015: RM644.8 mil
ROE N1
-0.4%
-3.6%
Q1 2016: 31.5%
Q1 2015: 35.1%
Net Profit to
Shareholders
Cost to
Income Ratio
Gross
Impaired
Loans Ratio
+16%
-5.8%
-0.06%
Q1 2016: 48.5%
Q1 2015: 54.3%
Mar 2016: 1.82%
Dec 2015: 1.88%
Credit Charge
Ratio N1
Loan Loss
Coverage
Ratio N2
Q1 2016: RM552.0 mil
Q1 2015: RM476.3 mil
0.07%
N1 : Annualised
N2 : Inclusive of 1.2% Regulatory Reserve
Page | 8
Non Interest
Income /
Total Income
Q1 2016: 9.6%
Q1 2015: 10.0%
+2%
Mar 2016: RM7.63
Dec 2015: RM7.51
Key Financial Ratios
Q1 2016: 0.21%
Q1 2015: 0.14%
+2.5%
Mar 2016: 85.8%
Dec 2015: 83.3%
We achieved 16% increase in pre-tax profit, with lowest cost-toincome ratio in 3 years
RM’mil
Q1
2016
Q4
2015
Q-o-Q
Change
%
Q1
2015
Y-o-Y
Change
%
Net Interest Income
883
872
1
800
10
Net Islamic Fund Base Income
215
206
4
179
20
1,098
1,078
2
979
12
Other Operating Income
476
573
-17
506
-6
Islamic Non-Fund Based Income
29
31
-6
24
21
Total Non Fund Based Income (B)
505
604
-16
530
-5
Total Income (A+B)
1,603
1,682
-5
1,509
6
Operating Expenses
-777
-962
-19
-820
-5
Operating Profit Before Allowances
826
720
15
689
20
Allowances for Loan Impairment
-80
-234
-66
-50
60
-
-10
-100
6
-100
Profit Before Taxation
746
476
57
645
16
Net Profit
552
316
75
476
16
EPS (sen)
18.0
11.9
51
18.5
-3
Total Net Fund Based Income (A)
Impairment Losses (Made)/
Written Back on Other Assets
Page | 9
Solid net fund based income growth of 12.1%, contributed by rights
issue proceeds, focus on low cost deposits and expanded loan base
in chosen market segments, resulting in improved NIM
RM’bil
Y-o-Y: +12%
Q-o-Q: +2%
2.52
2.51
2.40
1.42
1.10
1.08
0.98
♦ Gross fund based income rose 5.1% on the
back of a 4.2% growth in loans and financing.
♦ Funding and interest expenses was marginally
higher by 0.4% mainly due to lower cost of
deposits and rights issue proceeds.
1.42
1.43
Y-o-Y:
Q-o-Q:
♦ Higher net fund based income with NIM
improved by 7 bps to 2.22%
Q1 2015
Q4 2015
Fund Based Income
Net Fund Based Income
Q1 2016
Fund Based Expenses
NIM
2.22%
2.22%
2.15%
Q1 2015
2.13%
2.13%
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Page | 10
Non fund based income impacted by lower investment bank and
securities related fees, as well as lower FX gain
RM’mil
Non Fund Based Income
RM’mil
Q1 2016
Q1 2015
Y-o-Y
Change
Fee Income - IB Related (A)
120
130
-8%
Fee Income - Wealth
Management (B)
51
38
+34%
505
Fee Income - Others (C)
156
161
-3%
23
54
48
53
Total Fee Income (A) + (B) + (C)
327
329
-1%
Insurance Underwriting Surplus
48
38
+26%
Net Forex Gain
54
81
-33%
Gain and MTM on Securities /
Derivatives
53
60
-12%
Others
23
22
+4%
Total
505
530
-5%
31.5%
35.1%
-3.6%
Y-o-Y: -5%
Q-o-Q: -16%
604
530
22
22
81
110
38
60
329
Q1 2015
47
44
381
Q4 2015
327
Q1 2016
Others
Forex Gain
Insurance Underwriting Surplus
Gain/MTM on Securities/Derivatives
Ratio of Non Fund Based to
Total Income
Fee income
Page | 11
Operating expenses down by 5%, testament to the Group’s effective
cost optimisation efforts, resulting in lowest CIR since 2013
RM’mil
Y-o-Y: -5%
Q-o-Q: -19%
962
820
843
860
80
62
176
82
89
173
92
86
139
112
187
198
502
499
Q1 2015
Q2 2015
Admin & General Expenses
98
70
178
Marketing Expenses
Establishment Cost
Personnel Cost
513
431
Q4 2015
Q1 2016
495
Q3 2015 N1
777
Cost-to-Income Ratio
58.9%
53.0%
53.6%
52.3%
49.5%
54.3%
55.2%
56.7% 56.8%
57.2%
51.1%
50.7%
48.5%
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16
N1
N1: Exclude Career Transition Scheme (CTS) Expenses
Page | 12
Asset quality continued to improve and loan loss coverage has
increased
Asset Quality
RM’mil
RM’mil
3.60%
600
0.5 0%
0.37%
4,200.0
500
0.14%
0.13%
2.99%
0.22%
3.10%
2.81%
0.4 0%
0.21%
0.3 0%
0.14%
2.60%
0.2 0%
400
3,700.0
2.03%
300
2.03%
1.84%
0.1 0%
1.88%
1.82%
2.10%
0.0 0%
1.60%
448
200
1.66%
-0.10%
1.60%
1.60%
3,200.0
1.10%
340
-0.20%
-0.30%
206
100
148
0.60%
50
-
2012
3,338
-0.40%
2013
2014
2015
80
3,427
2,700.0
0.10%
-0.50%
2,892
Q1 2015 Q1 2016
Allowances for Loan Impairment
Credit Charge Ratio
2,841
2,729
2,200.0
-0.90%
2012
2013
2014
2015
Mar 2016
Gross Impaired Loans
Gross Impaired Loan Ratio
Malaysian Industry Gross Impaired Loan Ratio
 Higher impairment allowance primarily due to
higher collective allowances
Loan Loss
Coverage
66.0%
63.7%
61.1%
83.3%N1
85.8%N1
N1: Inclusive of 1.2% regulatory reserve. Without regulatory reserve, loan loss
coverage stood at 62.8% and 65.7% for 4Q2105 and 1Q2016 respectively
Page | 13
-0.40%
Total assets was lower due mainly to lower net loans and financial
investments AFS/HTM
Mar
2016
Dec
2015
Mar
2015
Change for 3M
2016
%
Y-o-Y
Change
%
Total Assets
225,472
230,718
225,064
-2
-
Total Financial Assets/
Investments
43,197
47,024
45,571
-8
-5
- Financial Assets FVTPL
2,080
1,753
2,987
19
-30
- Financial Investments AFS
22,276
24,739
20,834
-10
7
- Financial Investments HTM
18,841
20,532
21,750
-8
-13
Gross Loans
149,631
151,386
143,547
-1
4
Customer Deposits
157,475
158,151
158,684
-
-1
Borrowings and Senior
Debt Securities
5,726
5,888
6,352
-3
-10
Subordinated Notes
5,966
5,896
6,147
1
-3
Shareholders’ Funds
23,467
23,085
19,481
2
20
Net Assets per Share
7.63
7.51
7.57
2
1
Balance Sheet
RM’mil
Page | 14
Gross loans and financing decreased by 1.2% due to 1 large
corporate repayment amounting to RM1.0 billion
RM’bil
Y-o-Y: +4%
Q-o-Q: -1%
160 .0
150 .0
140 .0
130 .0
120 .0
143.5
151.4
149.6
Dec 2015
Mar 2016
110 .0
100 .0
Mar 2015
Domestic Loans Market Share
Loans by Interest/Profit Rate Sensitivity
79.4%
77.6%
79.4%
9.7%
9.5%
9.4%
9.3%
2012
2013
9.3%
2014
2015
20.6%
22.4%
Mar 2015
Mar 2016
Dec 2015
Variable Rate
Page | 15
20.6%
Mar 2016
Fixed Rate
Our strategy is to focus on risk-adjusted returns and grow in
preferred customer segment assets, and SME segment grew the
most, by 12% y-o-y
RM’mil
323
650
- 67
- 140
- 232
- 413
1,170
- 561
- 1,362
- 1,123
151,386
149,631
Dec 2015
Purchase
of Res.
Property
Purchase Construction
of Non-Res.
Property
Credit
Card
Personal
Use
Purchase of Purchase
PPE Other of Transport
Than Land & Vehicles
Bldg
Working
Capital
Purchase of
Securities
Others
.Mar 2016
Mar 2016
39,036
13,500
6,127
1,912
8,191
3,720
10,441
37,215
13,078
16,411
149,631
3M 2016
Growth
▲ 3%
▲ 5%
▲ 6%
▼ 3%
▼ 2%
▼ 6%
▼ 4%
▼ 2%
▼ 9%
▼ 6%
▼ 1%
Y-o-Y
Growth
▲ 18%
▲ 18%
▲ 14%
▼ 3%
▲ 6%
-
▼ 12%
▲ 3%
▼ 18%
-
▲ 4%
Page | 16
Loans growth driven mainly by Business Banking, Corporate Banking
was impacted by one large corporate repayment amounting to RM1.0
billion
Composition
10%
10%
32%
31%
14%
13%
45%
45%
Dec 2015
Mar 2016
Group Retail
Group Business Banking
Loans and
Financing
by SBG
Mar 2015
RM’bil
Change for
3M
%
Y-o-Y
Change
%
Mar 2016
RM’bil
Dec 2015
RM’bil
Group Retail
68.0
68.2
65.7
-0.3%
+3%
Group
Business
Banking
20.5
19.8
18.3
+4%
+12%
Group CIB
46.5
48.3
46.5
-4%
-
Group
International
Business
(“GIB”)
14.6
15.1
13.0
-3%
+12%
SGD4.1 bil
SGD4.1 bil
SGD4.1 bil
-
-
149.6
151.4
143.5
-1%
+4%
Of which:
Singapore
Total
Group CIB
GIB
Page | 17
Customer deposits remained relatively stable, with focus on
growing CASA and active & efficient liquidity management
CASA
Customer Deposits
RM’bil
Y-o-Y: +7%
RM’bil
Q-o-Q: -0.1%
Y-o-Y: -1%
Q-o-Q: -0.4%
37.9
38.0
8.4
8.8
35.4
170 .0
8.2
160 .0
150 .0
140 .0
130 .0
158.7
158.2
157.5
27.2
29.5
29.2
Mar 2015
Dec 2015
Mar 2016
Q1 2015
Q4 2015
Q1 2016
22.3%
24.0%
24.1%
120 .0
110 .0
100 .0
Composition
Demand Deposits

Page | 18
Saving Deposits
CASA composition improved to 24.1%
Our funding profile has benefited from rights issue proceeds and
we saw increase in market share across all types of deposits
Funding Composition
Domestic Market Share
1%
3%
1%
3%
1%
3%
1%
3%
1%
3%
11%
12%
12%
14%
14%
9%
8%
8%
9%
10%
10. 0%
9.3%
8.8%
9.0%
9.2%
9.0 %
8.4%
8.0 %
7.0 %
77%
75%
74%
73%
8.5%
7.4%
74%
8.5%
8.3%
8.2%
8.0%
7.3%
5.4%
2012
2013
8.1%
7.4%
6.0 %
5.3%
8.5%
5.5%
5.8%
5.9%
5.0 %
2012
2013
2014
2015
Mar 2016
4.0 %
Loans Sold to Cagamas
Borrowings & Senior Debt Securities
Equity & Debt Capital ^
Deposits from Banks and Other FI
Customer Deposits
2014
2015
Total Customer Deposits
CASA
Demand Deposits
Saving Deposits
^ Debt capital include subordinated obligations and hybrid tier 1 capital securities
Page | 19
Mar
2016
Group International continue to gain traction for greater profit
contribution
Profit Composition
5%
9%
PBT by SBG
Q1 2016
RM’mil
Q1 2015
RM’mil
Y-o-Y Change
%
14%
Group Retail
294.6
308.9
-5%
25%
Group Business
Banking
105.5
112.7
-6%
14%
Group CIB
192.4
201.1
-4%
Group Treasury
106.7
53.0
+>100%
Group International
Business (“GIB”)
57.5
38.4
+50%
Of which: Singapore
SGD16.1
SGD14.5
+10%
Others N1
-10.2
-69.3
-85%
Total PBT
746.5
644.8
+16%
8%
28%
15%
43%
Q1 2015
39%
Q1 2016
Group Retail
Group Business Banking
Group CIB
Group Treasury
GIB
N1: Others refer to support center and other business segments
Page | 20
Capital adequacy of RHB Bank Group, the new holding company
has strengthened further with rights issue proceeds …
Proforma Post
Internal Reorganisation
and Capital Injection
20. 0%
15%
18. 0%
16. 0%
11%
14. 0%
12. 0%
16.5%
10. 0%
RHB Bank
Group
8.0 %
6.0 %
12.0%
7%
12.3%
12.5%
16.5%
12.5%
12.2%
4.0 %
12.9%
17.2%
3%
-1%
2.0 %
0.0 %
-5%
Dec 2015
Mar 2016
Dec 2015
20. 0%
15%
18. 0%
16. 0%
11%
14. 0%
12. 0%
10. 0%
RHB
Bank
8.0 %
6.0 %
12.1%
12.5%
15.9%
7%
12.6%
16.0%
12.2%
4.0 %
13.2%
13.6%
15.1%
3%
-1%
2.0 %
0.0 %
-5%
Dec 2015
CET 1 Capital
Mar 2016
Tier 1 Capital
Total Capital
Page | 21
Dec 2015
... and capital adequacy ratio of key subsidiaries remains strong
RHB Islamic Bank
RHB Investment Bank
22.9%
22.9%
14.6%
11.0%
22.9%
23.3%
23.3% 23.3%
14.0%
11.0%
10.6%
10.6%
Dec 2015
CET 1 Capital
Mar 2016
Tier 1 Capital
Dec 2015
CET 1 Capital
Total Capital
Page | 22
Mar 2016
Tier 1 Capital
Total Capital
Executive Summary
Q1 2016 Financial Results
Corporate and Strategy Update
Summary and Outlook
We have made good progress across the 17 initiatives
under IGNITE 2017
Retail
 Retail CASA grew 3.5% vs industry of 1.5% in Q1 2016
 Residential property loans grew 3.7% vs. industry of 2.3% in Q1 2016
SME
 SME loans grew by 12% y-o-y
 SME market share improved to 8.9% in Q1 2016 from 8.7% in 2015
 Launched Financial Supply Chain Portfolio Guarantee and Supplier, Receivable and Distributor
Financing Scheme in Q1 2016
 Received the Highly Commended: Excellence in SME Banking award and Best Trade
Finance Bank in Malaysia award
Corporate &
Investment Banking
 Launched refined client coverage model in March 2016 to enhance the experience of top
corporate customers and increase total wallet share through group cross selling, both in
Malaysia and regionally
Singapore
 Bank revenue grew by 16.6% in local currency
Tactical cost savings
 CIR reduction from 56.3%1 in 2015 to 48.5% in Q1 2016
Digital & payments
 Launched new RHB Now Mobile banking App as well as the RHB Pay Anyone™, which allows
customers to send money seamlessly via mobile numbers, email and even Facebook
 Hosted RHB’s first FinTechathon in collaboration with Startupbootcamp FinTech
1. Normalised excluding CTS
Page | 24
We will continue to execute our strategies anchoring on the 3 key
themes
1
Affluent segment strategy
•
Relaunch of Affluent proposition in Q3 2016
2
Tactical cost savings
•
Reduce cost through strategic sourcing in 3 key areas – Administrative
expenses, Property management expenses and IT-related procurement
3
Productivity improvements
•
Launched a group-wide Productivity Improvement initiative – ‘As Simple As
Possible’ to enhance productivity
4
Optimising network synergies
•
Full optimisation of EASY outlets and ‘EASY-nisation’ exercise
•
Group network planning to rationalise footprint
5
Client Coverage Model
•
Launched refined client coverage model in March 2016 to enhance the
experience and increase total wallet share through group cross selling, both in
Malaysia and regionally
6
Enhance customer experience
•
Improve customer experience across all touch points – branches, call centres
and internet banking
7
Digital and payments strategy
•
Rollout MPOS
•
Commence implementation of Digital Channel Transformation and e/mCommerce payment solution
Page | 25
Corporate Exercise: Milestone and Tentative Timeline
♦ Despatch circular on Proposed
Winding Up
Obtained High
Court Order
15 April 2016
♦ Entitlement date for the Proposed
Distribution and Capital
Repayment
End May 2016
13 May 2016
Application to
the High Court
♦ Announced
entitlement date for
the Proposed
Distribution and
Capital Repayment
 Completion of the
Proposed
Distribution and
Capital Repayment
♦ Announced
Proposed Winding
Up
 Crediting of RHB
Bank Shares into
the CDS accounts
of entitled
shareholders
Page | 26
♦ Listing of RHB Bank
Mid June 2016
Early June 2016
♦ Suspension of
trading of RHB
Capital shares
♦ EGM for the
Proposed Winding Up
End June 2016
Executive Summary
Q1 2016 Financial Results
Corporate and Strategy Update
Summary and Outlook
Economic Outlook
 The Malaysian economy started the year on a firmer footing following the rebound of
commodity prices and the strengthening of Ringgit
 However, GDP growth is expected to moderate to 4% to 4.5% in 2016 from 5.0% in
2015 on the back of slower public spending, more cautious investment trends and
sluggish global growth that will not likely to provide any boost for exports
 Growth in the banking sector is expected to be modest, with slower loan demand,
pressure on margins, continued subdued fee income from investment banking and
capital markets and expectation of deterioration in asset quality
Page | 28
Concluding Remarks
 Positive start to the year, with record set of Q1 2016 results amidst a challenging
market volatility and risk aversion
 Performance also reflects depth and quality of the RHB franchise and positive
outcome of our reframed strategy under IGNITE 2017 transformation
 Strong capital adequacy ratios and healthy loan loss coverage
 Completion of corporate exercise has strengthened capital position of RHB Bank and
supports the Group’s business growth and profitability. Listing of RHB Bank on Bursa
Securities expected by end June 2016
 We remain vigilant on the continued volatility in global markets and challenges ahead
 Our efforts to improve efficiency and productivity will continue as we re-set our
business fundamentals and identify opportunities for growth
Page | 29
www.rhbgroup.com
INVESTOR RELATIONS CONTACT:
Ms Yap Choi Foong
Group Chief Financial Officer
+(603) 9280 2489
[email protected]
Ms Teh Soh Geok
Head, Group Financial Reporting
+(603) 9280 2154
[email protected]
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 to be correct at the time of the issue of this document, and is not and should not be construed as an offer or a solicitation of any offer to buy or sell any securities. Nor does this
document purport to contain all the information a prospective investor may require. Presentation and subsequent discussion may contain certain forward-looking statements with respect to the financial condition, results of
operations and business of the Group. These forward-looking statements represent expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could cause actual results,
performance or events to differ materially from those expressed or implied in such statements.
Key Business Highlights
Retail
Continuous emphasising on return on risk adjusted capital and focused growth in targeted market segment
Mortgage
Auto Finance
RM’bil
RM’bil
Y-o-Y: -12%
Y-o-Y: +18%
Q-o-Q: -4%
Q-o-Q: +3%
45. 0
14. 0
40. 0
12. 0
35. 0
10. 0
30. 0
8.0
25. 0
20. 0
15. 0
33.0
37.9
39.0
6.0
11.8
10.9
10.4
Mar 2015
Dec 2015
Mar 2016
7.0%
6.4%
6.2%
4.0
10. 0
2.0
5.0
0.0
Market
Share
0.0
Mar 2015
Dec 2015
Mar 2016
7.8%
8.2%
8.3%
Market
Share
Deposits
Personal Use
Y-o-Y: +6%
RM’bil
RM’bil
Q-o-Q: +3%
Y-o-Y: +6%
Q-o-Q: -2%
9.0
8.0
7.0
40.0
41.2
42.5
7.7
6.1
7.9
6.1
8.2
6.3
26.2
27.2
28.0
Mar 2015
Dec 2015
Mar 2016
7.5%
7.6%
7.8%
6.0
5.0
7.7
8.3
8.2
Mar 2015
Dec 2015
Mar 2016
9.2%
9.5%
4.0
3.0
Market
Share
Market
Share
9.4%
Fixed Deposits
Page | 32
Demand Deposits
Savings Deposits
CIB
Prominent market position
YTD Mar 2016
Ranking
Debt Capital Markets:
- MYR sukuk
- conventional &
Islamic bonds
Market Share
2
19.9%
3
15.7%
Mergers & Acquisitions:
- by value
7
9.7%
- by deal count
10
1 deal
Equity Capital Markets
4
8.1%
DCM
SapuraKencana TMC Sdn Bhd
RM176 mil issuance out of RM7 bil
Unrated Sukuk Programme
Joint Lead Manager & Joint Bookrunner
Scientex Quatari Sdn Bhd
RM150 mil issuance out of RM500 mil
Unrated Sukuk Programme
Sole Principal Adviser, Sole Lead Arranger &
Sole Lead Manager
Tulip Maple Berhad
USD50 mil issuance out of USD750 mil
Multicurrency Sukuk Programme
Sole Lead Manager & Sole Dealer
ECM
M&As
MMC Corporation Berhad
RM2.07 bil
General Offers for MMC Ports Sdn Bhd and
NCB Holdings Berhad
Sole Principal Adviser
Gamuda Berhad
RM100.25 mil
Rights Issue
Sole Principal Adviser & Sole Underwriter
TSR Capital
RM29.66 mil
Rights Issue
Sole Principal Adviser & Sole Underwriter
ECO World Development Group Berhad
RM1.18 bil
Acquisition of land in Mukim Ijok
Sole Principal Adviser
OCK Group Berhad
RM132.04 mil
Rights Issue
Sole Principal Adviser & Joint Underwriter
IFCA MSC Berhad
RM32.0 mil
Acquisition of PT IFCA Consulting Indonesia
Sole Principal Adviser
Page | 33
Equities, Futures & Asset Management
Prominent market position
YTD Mar 2016
Equities
(by value)
Market
Share
RM’bil
Asset Under Management
Ranking
Y-o-Y: +2%
Q-o-Q: -4%
Malaysia
- By value
- By volume
5th
8.1%
52.0
49.0
3rd
12.5%
6.3
th
Singapore
3.6%
14
Hong Kong
0.1%
94th
Indonesia
2.9%
13th
Thailand
1.4%
28th
Cambodia
10.8%
3rd
8.2
50.0
7.8
21.2
21.3
21.1
21.5
22.5
21.1
Mar 2015
Dec 2015
Mar 2016
11.8%
12.3%
11.3%
Wholesale
Overseas
YTD Mar 2016
Market
Share
Ranking
7.4%
6th
Malaysia - FCPO
7.8%
rd
3
Thailand
3.3%
10th
0.1%
th
Futures
(by volume)
Malaysia - FKLI
Hong Kong - HSIF
Domestic
Retail
Market
Share
67
Page | 34
Retail
Business Banking and SME
Continued improvement in market share and asset quality
Gross Loans
Customer Deposits
RM’bil
RM’bil
Y-o-Y: +12%
Y-o-Y: +5%
Q-o-Q: -1%
Q-o-Q: +4%
20.3
21.5
21.3
11.4
12.3
11.9
8.9
9.2
9.4
Mar 2015
Dec 2015
Mar 2016
21. 0
19. 0
17. 0
15. 0
11. 0
20.5
19.8
13. 0
18.3
9.0
7.0
5.0
Mar 2015
Dec 2015
Mar 2016
Fixed Deposits
SME Market Share
8.7%
RM’bil
8.9%
Demand Deposits
Asset Quality
3.2%
2.6%
2.5%
7.2%
6.5%
6.2%
0.59
2012
2013
2014
2015
Mar 2015
Mar 2016
0.52
0.51
Dec 2015
Mar 2016
Gross Impaired Loans
Gross Impaired Loans Ratio
N1 Year on year growth
Page | 35
Islamic Financial Performance
Strong performance with enhanced contribution to the Group
Gross Loans
RM’bil
RM’mil
Y-o-Y: +21%
Q-o-Q: +4%
350
300
35. 0
30. 0
250
25. 0
200
304
150
100
349
32.3
Dec 2015
Mar 2016
8.0%
8.1%
26.8
218
209
31.1
20. 0
Y-o-Y: +35%
15. 0
10. 0
72
96
Q1
2015
Q1
2016
50
Mar 2015
0
2012
2013
2014
2015
Market
Share
Gross Financing/
Total Gross Loans & Financing (Domestic)
Asset quality
RM’mil
1.24%
7.6%
1.17%
1.10%
363
356
332
Mar 2015
Gross Impaired Loans
Dec 2015
Mar 2016
Gross Impaired Loans Ratio
Page | 36
15.5%
16.5%
19.5%
2012
2013
2014
23.0%
24.1%
2015
Mar 2016
RHB Singapore
Loans, Deposits & Total Assets
PBT
SGD’mil
74
SGD’bil
47
37
34
42
9
5.2
Y-o-Y: +14%
39
4
0.8
46
42
35
33
4.5
4.1
3.6
2.8
2.1
27
17
6.1
0.9
32
57
14
16
15
16
(12)
-1
-0.2
2015
Q1 2015
Q1 2016
2.5
4.4
7
(3 )
2012
8.2
0.6
7.7
0.3
67
4.1
4.6
4.1
4.8
4.1
4.9
7.6
7.4
7.5
0.5
7.5
0.3
7.2
7.0
5.2
2013
2014
Mar 2015
2015
Mar 2016
(1 3)
2012
2013
2014
RHB Bank Singapore
RHB Securities Singapore
Total Assets (RHB Bank Singapore)
Total Assets (RHB Singapore Securities)
Gross Loans
Deposits
Loans Growth
Deposits Growth
59.7%
29.0%
22.6%
24.0%
23.5%
22.7%
9.7%
7.4%
10.4%
19.7%
9.2%
1.3%
0.05%
2012
2013
2014
RHB Singapore Growth
2015
3.6%
2.4%
1.8%
2013
2014
2015
-0.02%
-5.4%
N1
Mar 2016
Industry Growth
2012
RHB Singapore Growth
N1: y-o-y growth
Page | 37
3.2%
2.6%
Mar 2016 N1
Industry Growth