Investor Presentation FY2012 Financial Results

Transcription

1 Investor Presentation FY Financial Results Mr. Kellee Kam Group Managing Director RHB Banking Group 26 February 2013

2 AGENDA Executive Summary FY Financial Results OSK Investment Bank - Integration Updates Summary

3 Key Messages for Financial Performance Improved underlying Group performance, PBT up 6.0% and net profit up 5.7% Strengthened balance sheet position across all dimensions: Above-market loans and deposits growth at 14.4% and 19.3% respectively Capital, funding, liquidity and asset quality remain strong Proposed final dividend of 16.09%, total FY dividend of 22.09% Business Performance Continued good growth momentum in targeted segments, weakness in retail loans growth recovered in 3 rd quarter Capitalising on OSKIB relationship for CIB business expansion Easy by RHB Contribute 3.1% of Group s PBT RM5 bil loans achieved over 3 years Islamic Banking and Singapore loans growth continued to outperform industry Transformational OSKIB Transaction and Bank Mestika Acquisition Completed acquisition of OSKIB on 9 November. The merged RHB-OSK Investment Bank will become the largest and most complete investment bank and brokerage house in Malaysia The Group currently has over 550 offices and 16,000 employees across 8 countries in ASEAN and Hong Kong Bank Mestika - Signed Amended CSPA to acquire 40% stake for RM651 million 3

4 RHB Banking Group Scorecard Top Level Indicators Target Actual Loans Growth >12.0% 14.4% Deposits Growth >12.0% 19.3% Gross Impaired Loans Ratio <3.0% 2.99% ROE >14.0% 13.4% N1 ROA 1.2% 1.0% Cost to Income ratio <44.0% 47.5% International Contribution 10% 6% N1: Should OSKIB and the acquisition related and integration costs be excluded, ROE would have been at 14.4% 4

5 AGENDA Executive Summary FY Financial Results OSK Investment Bank - Integration Updates Summary

6 Financial Results RM mil Net Interest Income ,960 2,853 4 Other Operating Income Income From Islamic Banking Business ,380 1, Total Income 1,366 1, ,830 4, Other Operating Expenses Operating Profit Before Allowances Allowances for Loan Impairment Impairment Losses on Other Assets (717) (526) 36 (2,294) (1,903) ,536 2,473 3 (97) 31 >-100 (148) (146) 1 8 (10) >-100 (4) (77) -95 Profit Before Taxation ,384 2,250 6 Net Profit ,785 1,688 6 EPS (sen) Key Financial Indicators (%) Cost to Income Ratio ROE ROA Gross Impaired Loans Ratio Q4 Q3 Q-o-Q Change % FY Y-o-Y FY 2011 N1 Change % Credit Charge Ratio On a Y-o-Y basis: Underlying PBT and net profit, up 6% each 10% increase in total income due to strong fee income, which was up by RM135 mil, absence of unrealised loss on derivatives for hedging and lower impairment losses on other assets Increase in other operating expenses mainly due to higher personnel costs, consolidation of OSKIB and acquisition related & integration costs On a Q-o-Q basis: PBT down by 13% mainly due to higher other operating expenses relating to acquisition of OSKIB and higher allowances for loan impairment, offset by higher net forex gain and underwriting surplus from insurance business CIB 27% Retail Banking 35% PBT by SBG Business Banking 9% Treasury 21% Islamic Banking 5% Global Financial Banking 3% N1: Restated to conform with the application of MFRS 139 6

7 Total Income Total Income Mix Net Interest Income (RM mil) 26% 25% 29% 8% 10% 10% % 2,853 2,960 66% 65% 61% 2011 Interest Income Interest Expense Net Interest Income Islamic Banking Income Other Operating Income Higher NII mainly due to higher interest income on the back of 14.4% loans growth, partly offset by higher interest expense on the back of 19.3% increase in customer deposits and higher interest expense on issuance of sub-notes and senior notes NIM for Q4 stood at 2.35% (Q3 : 2.38%) Other Operating Income (RM mil) % Islamic Banking Income (RM mil) % 1,082 1, Fee Income Gain on MTM Securities Gain on Derivatives Net Forex Gain Others Higher loan related fee income and fee on financial advisory mandates Other operating income forms 28.6% of total income, increased from 24.7% in 2011 Reversal/non-recurrence of loss on derivatives for hedging 2011 Net Funding Income Non Funding Income Higher Islamic Banking income mainly due to higher net funding income on the back of 24.6% financing growth and higher net gains from trading and investment securities 7

8 Others Operating Expenses RM mil Total 1,903 2, % Composition 11% Personnel Costs 1,340 1, % 10% 21% 58% Establishment Costs % Personnel Costs Marketing Expenses Establishment Costs Admin & General Expenses Marketing Expenses Admin & General Expenses Higher operating expenses due to: 2011 Consolidation and integration costs incurred relating to OSKIB acquisition Continuous investment into people and IT infrastructure to support business growth and branch network expansion + 57% + 30% Cost-to-Income Ratio 47.5% 43.5% 40.5%

9 Allowances for Loan Impairment Movement of Allowances for Loan Impairment (RM mil) Higher allowances for loan impairment contributed largely by higher IA, partially offset by higher bad debts recoveries and lower CA % Absolute impaired loans down 4% to RM3.3 bil N IA CA Recovered Written Off Others 4.59% Gross Impaired Loans (RM mil) & Impaired Ratio (%) 3.59% 2.99% Allowances for Loan Impairment (RM mil) & Credit Charge Ratio (%) 0.50% 0.15% 0.13% 3,849 3,494 3, N1 N1 N1 N1 Gross Impaird Loans Gross Impaird Loans Ratio Allowances for Loan Impairement Credit Charge Ratio N1: Restated to conform with the application of MFRS 139 9

10 Financial Position RM mil Total Assets 189, , , Total Financial Assets/Investments 36,840 29,006 26, Financial Assets HFT 2,740 2,088 1, Financial Investments AFS - Financial Investments HTM 15,155 10,910 10, ,945 16,008 14, Gross Loans 111, ,637 97, Customer Deposits 138, , , Borrowings and Senior Debt Securities 5,152 4,824 3, Subordinated Notes 4,719 4,322 3, Hybrid Tier-1 Capital Securities Dec Sept Dec 2011 N1 Q-o-Q Change % Y-o-Y Change % Shareholders Funds 15,117 12,872 11, Net Assets per Share Expansion in total assets driven by loans growth and investment portfolio Gross loans: i. Excluding OSKIB, gross loans grew by 12.3% ii. Domestic loans up 13.0% iii. Contributed largely by corporate of 22.0% and business banking of 11.2%, primarily in working capital Islamic banking loans grew 24.6%, primarily from purchase of transport vehicles, residential properties and working capital Overseas loans growth of 43.8% mainly driven by Singapore which grew by 24.3% and acquisition of OSKIB foreign operations primarily from OSK Indochina Bank Limited, Cambodia Customer deposits: i. Excluding OSKIB, deposits grew by 14.5% ii. CASA recorded 5.9% growth LD ratio improved to 80.6% Issuance of debts securities i. RM750 mil sub-notes and US$500 mil senior debt securities by RHB Bank ii. RM1.5 bil sub-notes to replace existing sub-notes called in Nov by RHB Bank and RHBIB Effects of OSKIB acquisition: i. Additional total assets of RM11.3 bil in Dec ii. Goodwill amounted to RM1.2 bil N1: Restated to conform with the application of MFRS

11 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% Loans, Advances and Financing RM mil Working Capital 26,520 23,945 20, Purchase of Residential Property Purchase of Transport Vehicles 22,155 21,668 20, ,448 11,276 11, Purchase of Securities 10,250 8,478 6, Purchase of Non-Residential Property Dec Sept Q-o-Q Dec 2011 N1 Change % Y-o-Y Change % 5,730 5,385 5, Personal Use 5,758 5,515 4, Gross Loans (RM bil) & Growth (%) 22% 16% 14% 13% 11% 20% 11% 10% 16% 13% 13% 10% 14% 10% 8% Gross Loans OSKIB Total Gross Loans Growth Domestic Loans Growth Industry Loans Growth N1 N1 Merger and Acquisition 3,702 4,696 4, Purchase of PPE Other Than Land & Bldg 3,250 3,304 3, Credit Card 1,927 1,866 1, Others 20,734 20,504 18, Gross Loans and Advances 111, ,637 97, SME 12,649 11,219 11, % 83% 85% 82% 75% 74% LD Ratio 90% 85% 89% 81% 84% 81% 78% 77% 79% - Individuals 47,910 46,576 43, Corporate & Others 50,915 48,842 41, N Total Group LD Ratio Domestic LD ratio Industry LD Ratio N1 N1: Restated to conform with the application of MFRS

12 9.60% 9.40% 9.20% 9.00% 8.80% 8.60% 8.40% 8.20% 8.00% 7.80% 7.60% Loans Profile & Market Share Composition by Type of Customers 1% 1% 7% 7% 5% 6% 7% 5% 11% 11% 10% Gross Loans by Interest/Profit Rate Sensitivity Fixed Rate 30% 34% 28% 27% 26% 29% Variable Rate 70% 17% 16% 13% 12% 11% Domestic Market Share 41% 43% 44% 45% 43% 9.1% 9.3% 9.5% 8.3% 8.5% Individual SME Other Corporates Government International Others N1 N1 33% (32%) N1: Restated to conform with the application of MFRS

13 Loans, Advances and Financing by SBG RM mil Dec Sept Dec 2011 N1 Q-o-Q Change % Y-o-Y Change % Retail 42,103 41,523 40, Business Banking 11,695 11,634 10, CIB 35,108 32,316 28, Islamic 16,266 15,957 13, Global Financial Banking 6,302 5,207 4, Total Loans and Advances 111, ,637 97, Global Financial Banking 13% Islamic 23% Business Banking 9% Loans Growth Composition Retail 10% OSKIB 15% CIB 45% OSKIB 15% RHB BAU 85% Loans Composition by SBG Global Financial Banking 6% Islamic 15% Business Banking 10% CIB 31% Retail 38% N1: Restated to conform with the application of MFRS

14 Customer Deposits RM mil Dec Sept Q-o-Q Dec Change 2011 % Y-o-Y Change % Customer Deposits Composition Fixed Deposits 108,697 95,650 87, of which: MMTD 23,368 22,490 23, Demand Deposits 22,504 23,200 21, % 5% 19% 16% Savings Deposits 6,933 6,741 6, NIDs % 17% Total Deposits 138, , , LD Ratio 81% 85% 84% -4-3 CASA (Incl. MMTD) 21%* 24% 24% -3-3 CASA (Excl. MMTD) 26% 29% 30% -3-4 Domestic Market Share Demand Deposits 8.6% 9.5% 9.1% 56% 62% Savings Deposits 5.3% 5.3% 5.3% Fixed Deposits 13.2% 11.6% 10.9% Total Domestic Deposits 9.3% 8.5% 8.5% 2011 Fixed Deposits MMTD + NIDs Demand Deposits Savings Deposits * Should OSKIB deposits be excluded, CASA (incl. MMTD) should read as 22% 14

15 % 10% 0% -10% -20% -30% 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% Customer Deposits Profile & Market Share Customer Deposits (RM bil) 23% 15% 23% 12% 15% 12% 11% 14% 9% -2% 7% -4% % 19% 8% FD & NID Maturity Structure (RM bil) Dec 2011 Mar Jun Sept Dec Deposits Domestic Deposits Growth Total Deposits Growth Industry Deposits Growth Due within 6M 6M to 12M 1 year to 3 years Deposits by Type of Customers Others Individuals Business enterprise Government & Statutory Bodies Domestic Market Share 9.3% 8.5% 7.2% 7.5% 7.9%

16 4.59 Asset Quality Gross Impaired Loans Ratio (%) Gross Impaired Loans Ratio (%) by Purpose Working Capital Purchase of Residential Property Dec 10 N1 Dec 11N1 Mar 12 June 12 Sept 12 Dec 12 RHB Capital Banking Industry Purchase of Non- Residential Property Personal Use Gross Impaired Loans Movement (RM mil) Net decrease of RM156 mil Credit Card Purchase of Transport Vehicles 3,901 3, % 3,351 3,494 3,338 3, Purchase of Securities Construction Dec 2011 Adjusted MFRS 139 As Restated Acquisition of OSKIB New Impaired Loans Reclassified/ Restructured/ Recovered Written Off Dec N1: Restated to conform with the application of MFRS

17 % 80% 15% 13% 11% 9% 7% 5% 3% 1% -1% % 13% 9% 5% 1% -3% 46% 41% 36% 31% 26% 21% 16% 11% 6% 1% -4% Capital Position Times RHB Capital RM bil RHB Bank 152% % % % 15.1% 13.9% 12.6% 11.9% 10.5% 11.2% 11.8% % Dec 10 Dec 11 Dec-12 N1 Dec 10 Dec 11 Dec 12 Gearing Double Leverage Tier 1 Capital Tier 2 Capital Core Capital RWCR CET 1 RM bil RHB Islamic RM bil RHB Investment 13.4% 13.9% 14.7% 14.1% 12.9% 11.5% % 27.8% % 38.2% 34.2% 30.3% Dec 10 Dec 11 Dec 12 Dec 10 Dec 11 Dec-12 N2 Tier 1 Capital Tier 2 Capital Core Capital RWCR Tier 1 Capital Tier 2 Capital Core Capital RWCR N1: Proforma Basel III CET 1, Tier 1 and RWCR of RHB Capital Group are at 8.6%, 9.1% and 13.5% respectively as at Dec N2: Core Capital and RWCR of OSKIB stood at 11.5 % as at Dec 17

18 2% -1% -3% Capital Position - RHB Bank Group Core Tier 1, Tier 1 & Total Capital Ratios (%) RM bil Net Profit over Average RWA 1.9% 2.1% 2.0% Core Tier 1 Total Tier 1 Total Capital Ratio Note: Ratios are after proposed final dividend N RWA Net Profit over Avg RWA N1: Restated to conform with the application of MFRS 139 Capital Development - FY 0.76% 1.29% 1.20% 0.93% 0.24% 15.99% 0.25% 15.42% 11.78% 11.36% 11.06% 10.75% Dec 2011 Increase in Tier 1 Capital Issuance of sub-notes Increase in CCF Increase in business volume CET 1 Ratio Tier 1 Ratio RWCR FY final dividend Increase in EP>EL & reduction in CA Dec 18

19 Return to Shareholders Market Capitalisation Dividend Per Share 30,000 25, ,000 15,000 10,000 5, , , ,413 18,778 16,492 19, % 21.38% 17.41% 17.45% 16.09% 8.6% 5.0% 9.0% 5.0% 5.0% 8.0% 6.0% Market Capitalisation (RM mil) Share Price (RM) Interim Final Total Shareholders Return Dividend Payout Ratio & DRP Rate RHB Total Shareholders Return Bursa Malaysia Finance Index Return Dec 10 Dec 11 Dec 12 Dec 10 Dec 11 Dec year 69% -12% 8% 30% 4% 18% 3 years 62% 102% 57% 38% 124% 57% Dividend Payout Ratio 30% 30% 30% 30% 30% 30% 5 years 338% 148% 51% 120% 82% 66% 7 years 386% 269% 313% 169% 133% 170% DRP Conversion Rate 84% 63% 65% 19

20 AGENDA Executive Summary FY Financial Results OSK Investment Bank - Integration Updates Summary

21 Update on Integration - Key Initiatives On track to achieve full integration by 2013 Teams Are Working Together Investment banking teams won together several marquee deals ECM and DCM mandates as well as Sukuk issuance Singapore DCM team being set-up Research coverage streamlined since mid-january 2013 Organizational structure of merged entity defined Single Identity Defined Across Countries Malaysia Region Integration Process Ongoing engagement with regulators Application to Bursa for merger of business submitted on 31st January 2013 Application to court to obtain vesting order submitted on 8th February 2013 Targeted LD1 - April

22 Business Support Functions Update on Integration Overall organization is ready, teams shifting to execution mode CSPA 28 May Completion 9 Nov Customer Day 1 (Vesting) Apr 2013 Single Platform Day 1 Q Organization, Appointment & Steering System Set-up of integration governance Appointment of direct reports to MD Cascading organization design and appointments Top-down target setting Staff transfers and relocation Inv. Banking Brokerage Asset mgt Strategy and business model development Quickwins Definition of target operating model Organization and people requirements Cooperation mechanisms Execution and monitoring of strategic initiatives Execution and monitoring of synergy IT & Ops Finance HR Risk Baselining, Integration checklists Workplans Target applications Migration mode Target model Framework and policies Development, migration Combined activities and organizations Others 1 1. Legal, compliance, audit, secretariat, administration 22

23 Update on Integration Early collaborations already translated into revenues Business Synergies & Integration Costs Recap: Estimated Synergies Over 3 Years Revenue Synergy () Year 1 Year 2 Year 3 Revenue Cost Funding Pre-completion Post-completion Total Integration costs incurred up to Dec amounted to RM10.5 mil, with remaining RM75.5 million to be incurred in 2013 and

24 AGENDA Executive Summary FY Financial Results OSK Investment Bank - Integration Updates Summary

25 Top Level Indicators 2013 Outlook Target Actual 2013 N1 Key Focus Areas (R.A.P.I.D) Regionalisation Programme ROE >13.0% 13.4% 30% of Group revenue from ASEAN+ by 2017 Strengthen regionalisation governance & risk management framework Gross Impaired Loans Ratio <2.9% 3.0% Resource talent to drive regionalisation programme Develop and implement a robust regionalisation strategy Action Platform Loans Growth 12% 14.4% Speed to decision and execution Best in Class - Customer satisfaction Deposits Growth 10% 19.3% People Agenda Instil a high performance culture Stable talent pipeline to support business growth Cost to Income ratio <50% 47.5% Islamic Internationalisation Top 3 domestically by 2015 International Contribution 10%* 6% International presence and profile Digital RHB Digital as RHB s key differentiator - enhanced efficiency and customer experiences N1: Target for 2013 is without Bank Mestika 25

26 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 Malaysia 3 Indonesia is an important market for RHB and we will continue to pursue entry via the proposed acquisition of PT Bank Mestika 4 To execute R.A.P.I.D Programme to reliase the Group s full potential for growth Outlook - Expect market to remain competitive with pressure on margin to continue, will work towards diversifying our revenue base both from product and geography perspective 26

27 END INVESTOR RELATIONS CONTACT: Ms Yap Choi Foong Head, Investor Relations and Merger & Acquisition Integration Division +(603) 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.

28 APPENDIX: KEY BUSINESS HIGHLIGHTS

29 Retail Business Performance Mortgage 7.1% 7.4% 7.7% 7.3% 7.0% 6.6% 5.7% Personal Use 6.7% 7.4% 7.8% Mortgage Loans (RM bil) Market Share Personal Use (RM bil) Market Share 8.1% 9.3% ASB 15.6% 23.8% 25.6% 6.0% 6.0% Credit Card 5.5% 5.4% 5.8% ASB Loans (RM bil) Market Share ASB: Amanah Saham Bumiputra Credit Cards (RM bil) Market Share Auto Finance 6.5% 6.7% 7.2% 8.2% 7.4% Retail Deposits 6.8% 6.5% 6.8% 7.1% 6.8% HP Loans (RM bil) Market Share Deposits (RM bil) Market Share 29

30 % % % % % % % % % % % % % 95.0% 90.0% 85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0 % 0.0 % -5.0% % % % % % Easy by RHB Number of Outlets Asset Composition ASB 73% P.Loan 27% July 2009 Dec 2009 Dec 2010 Dec 2011 Dec Easy Standalone Tesco POS LRT Financial Performance 6.6% Gross Loans (RM bil) 4.5% 3.4% 3.8% 1.8% 3.2% 2.5% 3.1% 1.5% 1.6% 1.5% 0.7% -0.5% -0.8% -0.4% 0.2% -0.8% -1.9% -1.2% July 2009 Dec 2009 Dec 2010 Dec 2011 N1 Dec % of Gross Revenue % of Pre-Provisioning Profit % of PBT % of Gross Loans Gross Impaired Loans Ratio N1: Restated to conform with the application of MFRS

31 RHB Insurance Business Performance General Insurance - Gross Premium (RM mil) Bancassurance - Gross Premium (RM mil) 2.1% 2.3% 2.3% ^ 2.7% 3.0% ^ As at Sept Gross Premium Market Share Non-Credit Related Premium 224 Credit Related Premium General Insurance - Financial Performance (RM mil) Bancassurance - Fee Income (RM mil) Underwriting Surplus Before Management Expenses Profit Before Tax Facilitation Fees Commission Income - Banca 31

32 Domestic Market Share - IB # Market Share Ranking Market Share Ranking Market Share Ranking Debt Capital Market * 14.9% 4 th 9.7% 4 th 9.9% 3 rd Mergers & Acquisitions 7.1% 11 th 16.3% 3 rd 58.8% 1 st Equities Capital Market ^ 2.6% 11 th 6.8% 4 th 7.7% 3 rd # Combined RHBIB and OSKIB market data effective 9 Nov ^ IPOs, Rights Issues & Additional Offerings * Primary Bond Offerings Source : Bloomberg, Bursa Malaysia & RHB Golden Assets International Finance Ltd RM5.0 bil - Sukuk Murabahah Programme Joint Principal Advisers, Joint Lead Arrangers, Joint Lead Managers, Joint Bookrunners & Joint Underwriters (with OSK IB) First Resources Ltd RM2.0 bil - Sukuk Musharakah Programme Joint Principal Advisers, Joint Lead Arrangers, Joint Lead Managers` & Joint Bookrunners (with OSKIB) Astro Malaysia Holdings Bhd RM4.55 bil - Listing on Main Market of Bursa Malaysia Joint Principal Adviser, Joint Bookrunner & Joint Managing Underwriter Major Mandates FY PLUS Expressways Bhd RM30.6 bil - Sukuk Programme Joint Lead Manager DanaInfra Nasional Bhd RM8.0 bil - Islamic Commercial Paper/Medium Term Note Programme Joint Lead Arranger, Joint Lead Manager & Joint Bookrunner Dijaya Corporation Bhd RM949 mil - Assets Amalgamation Exercise Adviser Labuan Reinsurance (L) Ltd USD55 mil - USD Subordinated Bonds Sole Principal Adviser & Sole Lead Arranger Tanjung Bin Energy Issuer Bhd RM3.29 bil - Senior Sukuk Murabahah Programme Joint Lead Manager Semperit AG Holding RM252 mil - Cross-Border Acquisition of Latexx Partners Bhd Adviser 32

33 Brokerage/Equity & AUM Market Share - by Geographical Market Share Ranking Malaysia # - Broking (by value) 11.6% 2 nd - Broking (by volume) 16.2% 1 st Singapore 7.4% 4 th Hong Kong 0.07% 108 th Indonesia 2.1% 14 th Thailand 0.7% 28 th Cambodia 8.1% 5 th AUM - Malaysia 1.7% 2.6% 12,311 14,281 10,633 11,513 1,678 2, % 30,446 14,924 15,522 # 15% 10% 5% 0% -5% -10% -15% -20% AUM by Geographical 2% 98% Retail Wholesale Retail Market Share Malaysia Overseas # Combined RHBIB and OSKIB market data for full year and 2010 is based on RHBIB stand-alone 33

34 (35) % 155.0% 150.0% 145.0% 140.0% 135.0% 130.0% 125.0% 120.0% 115.0% 110.0% 105.0% 100.0% 95.0% 90.0% 85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0 % % % % % % 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% Islamic Business Performance PBT (RM mil) 5.1% 4.5% Gross Loans 5.6% 6.5% 6.9% N N N1 Gross Loans (RM bil) Market Share 4.82% Gross Impaired Loans & Impaired Loans Ratio 6.19% 7.27% 4.29% 2.51% 4.9% Deposits 4.5% 4.7% 6.5% 5.7% Gross Impaired Loans Gross Impaired Loans Ratio (Old GP3) Gross Impaired Loans Ratio (MFRS 139) N1 N Deposits (RM bil) Market Share N1: Restated to conform with the application of MFRS

35 % 155.0% 150.0% 145.0% 140.0% 135.0% 130.0% 125.0% 120.0% 115.0% 110.0% 105.0% 100.0% 95.0% 90.0% 85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0 % % % % % % RHB Singapore Business Performance PBT (SGD mil) Loans, Deposits & Total Assets (SGD bil) Gross Loans Deposits Total Assets Gross Loans Growth vs Industry Deposits Growth vs Industry 27.6% 14.0% 13.5% 32.4% 24.2% 24.3% 32.4% 10.3% 12.6% 10.8% 18.8% 22.6% 1.2% 2.1% 10.4% -0.2% % 11.4% 4.9% 7.4% RHB Singapore Growth Industry Growth RHB Singapore Growth Industry Growth 35