Analysts Presentation First Half 2018 Financial Results. Dato' Khairussaleh Ramli Group Managing Director RHB Banking Group 30 August 2018

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Transcription:

Analysts Presentation First Half Financial Results Dato' Khairussaleh Ramli Group Managing Director RHB Banking Group 30 August

Executive Summary H1 Financial Results Strategy Update Summary and Outlook

Highlights of H1 Performance (1/2) Profitability Year-on-year: Net profit up 16.0% to a record RM1,161.1 million, mainly due to higher net fund based and non-fund based income, and lower allowances for expected credit losses (ECL) on other assets Net fund based income rose 10.8% to RM2,481 million mainly underpinned by growth in loans and prudent funding cost management. Non-fund based income grew 1.3% to RM904.2 million contributed largely by higher net foreign exchange gain and trading and investment income, partially offset by lower insurance underwriting surplus, and lower brokerage income Operating expenses rose 7.6% to RM1,660.7 million driven by a rise in personnel costs and IT-related expenses. Cost-to-income ratio (CIR) improved to 49.1% Allowances for ECL on loans was 16.3% higher at RM180.9 million, primarily due to higher collective credit losses for loans arising from implementation of MFRS9 ROE of 10.2% compared with 9.1% same period last year Quarter year-on-year: Net profit rose by 13.8% to RM570.3 million from the corresponding quarter last year primarily due to higher net fund based income and lower allowances for ECL on other assets Assets and Liabilities Gross loans and financing for the Group grew 3.1% Y-o-Y to RM161.4 billion driven by mortgage Total domestic loans grew 4.5% Y-o-Y Total customer deposits increased marginally Y-o-Y to RM166.0 billion Total CASA grew 4.2% Y-o-Y but declined 4.7% from December mainly from Corporate and Singapore CASA composition at 29.0% from 27.9% a year ago and 30.4% in December Gross impaired loans (GIL) ratio of 2.33%, up from 2.23% in December but lower than the post- MFRS 9 restated ratio of 2.38% Loan loss coverage ratio (including regulatory reserve) stood at 104.1% as at end June Page 3

Highlights of H1 Performance (2/2) Business Performance Capital and Liquidity Dividend Group Wholesale Banking recorded a pre-tax profit of RM971.3 million, an increase of 11.0% Y-o-Y: Group Corporate & Investment Banking pre-tax profit grew 29.0% to RM352.7 million on the back of higher net fund based and non-fund based income and lower allowances for ECL on loans Group Treasury and Global Markets recorded a 2.9% growth in pre-tax profit to RM618.7 million mainly due to higher foreign exchange gain and trading & investment income, partially offset by higher operating expenses and lower ECL write back on loans. Retail Banking pre-tax profit grew 2.1% Y-o-Y to RM496.9 million mainly due to higher net fund based income and non-fund based income, partly offset by higher allowances for ECL on loans and higher operating expenses Business Banking loans grew 7.4% Y-o-Y. However pre-tax profit decreased 13.0% to RM165.1 million mainly due to higher allowances for ECL for loans and higher operating expenses Singapore recorded a pre-tax profit of SGD24.1 million compared with a pre-tax loss of SGD30.9 million a year ago primarily due to significant reduction in allowances for ECL on loans and other assets Islamic Banking: Pre-tax profit increased by 8.8% Y-o-Y to RM274.8 million Islamic Financing represents 31.4% of the Group s total domestic gross loans and financing, up from 29.7% as at December No. 3 in industry by financing assets (RM46.0 billion as at end June ) Capital position as at 30 June remained strong Group CET I ratio at 14.5%, Tier I ratio at 14.7% and total capital ratio at 17.7% Bank entity CET I ratio at 12.4%, Tier I ratio at 12.7% and total capital ratio at 16.1% Interim dividend of 7.5 sen per share for FY, representing 25.9% payout based on H1 results Page 4

RHB Banking Group Scorecard for Top Level Indicators Target Actual H1 ROE 9.0% - 10.0% 10.2% N1 Loans Growth 6% 3.1% N2 CASA Growth 10% 4.2% N2 (MY Retail & BBG CASA growth of 5.4%) Gross Impaired Loans Ratio <2.2% 2.33% Cost to Income Ratio <50% 49.1% Overseas Profit Contribution +ve 4.5% N1 : Annualised N2 : Year-on-year growth Page 5

Executive Summary H1 Financial Results Strategy Update Summary and Outlook

H1 profits rose Y-o-Y arising from higher net fund based income and lower allowances for expected credit losses on other assets; CIR improved and loan loss coverage ratio remained above 100% Financial Position Financial Results Key Financial Ratios Total Assets Gross Loans Total Income Operating Profit Before Allowances ROE N1 Non-Fund Based/ Total Income +1.8% +0.8% +8.1% +8.5% +1.1% -1.8% Jun : RM234.5 bil Dec : RM230.2 bil Jun : RM161.4 bil Dec : RM160.1 bil H1 : RM3.39 bil H1 : RM3.13 bil H1 : RM1.72 bil H1 : RM1.59 bil H1 : 10.2% H1 : 9.1% H1 : 26.7% H1 : 28.5% Customer Deposits CASA Profit Before Tax Net Profit to Shareholders Cost to Income Ratio Gross Impaired Loans Ratio -0.1% -4.7% Jun : RM166.0 bil Dec : RM166.2 bil Jun : RM48.1 bil Dec : RM50.5 bil +19.3% +16.0% H1 : RM 1.56 bil H1 : RM 1.31 bil H1 : RM1.16 bil H1 : RM1.00 bil -0.2% H1 : 49.1% H1 : 49.3% -0.05% N3 Jun : 2.33% Dec : 2.38% N3 Dec : 2.23% Shareholders Equity Net Assets Per Share Credit Charge Ratio N1 Loan Loss Coverage Ratio N2 +2.7% N3 Jun : RM22.5 bil Dec : RM21.9 bil N3 Dec : RM23.1 bil +2.7% N3 Jun : RM5.61 Dec : RM5.47 N3 Dec : RM5.77 N1 Annualised N2 Including Regulatory Reserve N3 Post MFRS 9 restated opening balance +0.02% H1 : 0.22% H1 : 0.20% -2.1% N3 Jun : 104.1% Dec : 106.2% N3 Dec : 101.6% Page 7

Q2 continued the year s momentum driven by lower overheads and allowances for ECL; One-off fee income gain in Q1 resulted in a marginal decline of net profit Q-o-Q Q2 Q1 Q2 Q-o-Q H1 H1 Y-o-Y RM mil % % Net Interest Income 886 930 937 1 1,738 1,867 7 Net Islamic Fund Base Income 260 306 308 1 502 614 22 Total Net Fund Based Income (A) 1,146 1,236 1,245 1 2,240 2,481 11 Other Operating Income 396 564 309-45 848 873 3 Islamic Non-Fund Based Income 36-32 63 >-100 44 31-30 Total Non-Fund Based Income (B) 432 532 372-30 892 904 1 Total Income (A+B) 1,578 1,768 1,617-9 3,132 3,385 8 Operating Expenses -783-862 -799-7 -1,543-1,661 8 Operating Profit Before Allowances 795 906 818-10 1,589 1,724 9 Allowances for Loan Impairment -22-104 -77-26 -156-181 16 Impairment Losses (Made)/ Written Back on Other Assets -119-11 32 >-100-122 21 >-100 Profit Before Taxation 654 792 773-2 1,312 1,565 19 Net Profit 501 591 570-3 1,001 1,161 16 Page 8

Net fund based income growth supported by continuous funding and liquidity management; Margins showed further improvement Y-o-Y but remained stable against preceding quarter RM bil Y-o-Y: +9% Y-o-Y: +11% Q-o-Q: +1% 4.94 5.27 2.50 2.59 2.68 1.35 1.36 1.43 1.15 1.24 1.24 2.70 2.79 2.24 2.48 Q2 Q1 Q2 H1 H1 Fund Based Income Fund Based Expenses Net Fund Based Income NIM 2.28% 2.29% 2.17% 2.19% 2.19% 2.17% 2.18% Q1 Q2 Q3 Q4 Q1 Q2 Page 9

Non-fund based income grew Y-o-Y supported by higher net forex gain, trading & investment income and commercial banking fee; Q-o-Q impacted mainly by lower forex gain, trading & investment income and brokerage income Others RM mil Treasury Related Income Insurance Underwriting Surplus N1 Fee Income N2 Y-o-Y: -14% Q-o-Q: -30% 532 432 19 372 19 211 89 16 52 45 20 37 Y-o-Y: +1% 892 904 31 35 202 263 89 57 570 549 279 282 267 Q2 Q1 Q2 N1 Fee Income 279 282 267-5% 570 549-4% IB Related 34 29 33 14% 68 62-9% Brokerage Income 80 86 65-24% 170 151-11% Wealth Management 37 35 31-10% 76 66-12% Commercial Banking 128 132 138 5% 256 269 5% N2 Treasury Related Income Q-o-Q H1 H1 89 211 52-75% 202 263 30% Net Forex Gain 59 81 50-39% 113 130 15% Y-o-Y Gain & MTM on Securities/Derivatives 30 130 2-98% 89 132 49% Page 10

Operating expenses grew 7.6% Y-o-Y mainly from higher personnel and IT related expenses; Q-o-Q saw a decline in overheads as expenses normalised from absence of one-off increases in personnel and IT costs in preceding quarter; CIR improved further to 49.1% RM mil Y-o-Y: +8% Administration & General Expenses Marketing Expenses Establishment Costs 783 94 67 179 862 81 52 195 Y-o-Y: +2% Q-o-Q: -7% 799 87 60 175 1,543 178 115 344 906 1,661 168 112 371 1,010 Personnel Costs 443 534 477 Q2 Q1 Q2 H1 H1 CIR 49.6% 48.7% 49.4% 49.3% 49.1% Page 11

Loans grew 3.1% Y-o-Y mainly driven by continued mortgage and SME growth partially offset by large corporate repayments and impact of stronger RM in Singapore Composition RM mil Jun Dec YTD Jun YoY Jun Dec % % % % GROUP RETAIL 80,544 76,266 5.6 71,722 12.3 50 48 Mortgage 50,498 46,920 7.6 43,372 16.4 31 29 Commercial Property Financing 4,792 4,694 2.1 4,605 4.1 3 3 Securities 7,727 7,882-2.0 7,774-0.6 5 5 Auto Finance 8,248 8,066 2.3 8,067 2.2 5 5 Unsecured Business 8,533 7,932 7.6 7,103 20.1 5 5 Others 746 772-3.4 801-6.9 0 0 GROUP BUSINESS BANKING 24,596 23,906 2.9 22,901 7.4 15 15 SME 22,682 22,146 2.4 20,961 8.2 14 14 Commercial 1,914 1,760 8.7 1,940-1.3 1 1 GROUP WHOLESALE BANKING 41,190 44,634-7.5 45,447-9.0 26 28 TOTAL RHB DOMESTIC 146,330 144,806 1.1 140,070 4.5 91 90 OVERSEAS OPERATIONS 15,029 15,318-1.9 16,503-8.9 9 10 Singapore 11,132 11,456-2.8 12,586-11.6 7 7 Others 3,897 3,862 0.9 3,917-0.5 2 2 TOTAL RHB GROUP 161,359 160,124 0.8 156,573 3.1 100 100 Page 12

Marginal increase in total deposits as we managed overall liquidity while CASA grew 4.2% Y-o-Y; CASA ratio remained healthy at 29.0% although balance was lower compared to end of RM bil Customer Deposits Y-o-Y : +0.1% 6M Growth : -0.1% RM bil CASA Y-o-Y : +4% 6M Growth : -5% 165.8 166.2 166.0 46.2 50.5 48.1 22.3 20.5 25.9 46.2 9.7 50.5 9.9 48.1 10.1 97.3 95.2 91.9 36.5 40.6 38.0 Jun Dec Jun Fixed/investment deposits MMTD CASA Jun Dec Jun Current Deposits Saving Deposits 28% 72% 71% 29% CASA Non CASA Page 13

250 200 150 100 50-0.5 0% 0.4 0% 0.3 0% 0.2 0% 0.1 0% 0.0 0% -0.10% -0.20% -0.30% 4,400 4,200 4,000 3,800 3,600 3,400 3,200 3,000 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% -0.50% -1.00% Allowances for loan impairment moderated further and credit charge ratio improved; Uptick in gross impaired loans ratio; Loan loss coverage maintained above 100%* N1 RM mil Allowances for Loan Impairment RM mil Asset Quality 0.35% 0.37% 0.29% 0.26% 0.19% 2.39% 2.16% 2.29% 2.31% 2.23% 2.03% 1.96% 1.63% 1.64% 1.67% 1.54% 2.38% 2.29% 2.33% 1.62% 1.64% 1.76% 1.46% 1.54% 1.57% 1.59% 0.06% 133 147 115 104 77 3,688 3,581 3,648 3,568 3,817 3,690 3,757 22 Q1 Q2 Allowances for Loan Impairment Q3 Q4 Credit Charge Ratio Q1 Q2 Post MFRS9 Adoption Mar Jun Sep Gross Impaired Loans Dec Gross Impaired Loan Ratio (Domestic) Gross Impaired Loan Ratio (Group) Malaysian Industry Gross Impaired Loan Ratio Jan Mar Jun Post MFRS9 Adoption N1 LLC 77.7% 81.4% 93.6% 101.6% 106.7% 107.4% 104.1% N1: Inclusive of 1.0% regulatory reserve Page 14

O&G Exposure (Loans + Bonds) closely managed and continued to declined Loans + Bonds Outstanding RM bil Oil and Gas Related Industry Upstream Downstream Total % to % to % to Gross Loans RM bil Gross Loans RM bil Gross Loans Jun 3.3 2.0% 1.6 1.0% 4.9 3.0% Mar 3.3 2.0% 1.7 1.1% 5.0 3.1% Oil & Gas Exposure [Mar : 39%] 36% 21% [Mar : 20%] Country % of Loans Outstanding Malaysia 77% 43% Singapore 22% [Mar : 41%] Thailand 1% Impaired Watchlist Normal Page 15

RM mil RM mil Revenue increased across all domestic segments except Insurance; Higher profit from CBIB s net fund based & non-fund based income and Treasury s net fund based income; Singapore improved from lower allowances for expected credit losses 13% Revenue 1,178 1,044 497 9% 544 737 802 9% 669 5% 703 6% 6% 48% 200 187 89 84 119 62 Retail BBG CBIB Treasury GIB - Singapore GIB - Others Insurance Pre-tax Profit 487 2% 497 190 165 13% 273 29% 353 601 >100% >100% 66 23 50 59-96 -7 Retail BBG CBIB Treasury GIB - Singapore GIB - Others Insurance 3% 619 >100% H1 H1 Page 16

Interim cash dividend of 7.5 sen per share declared Market Capitalisation Dividend Per Share (sen) 5.46 5.40 5.50 RHB Capital RHB Bank 5.06 5.00 5.00 4.68 4.71 18.8 18.9 20.3 20.1 21.9 21.7 4.50 12.00 12.00 15.00 10.00 4.00 6.00 12.00 7.00 7.50 3.50 6.00 5.00 5.00 7.50 28 Jun 2016 N1 31 Dec 2016-30 Jun 31 Dec 29 Jun 29 Aug 3.00 2014 2015 2016 Market Capitalisation (RM bil) Share Price (RM) Interim Final N1: Listing of RHB Bank shares at opening price of RM4.68 Page 17

20. 0% 18. 0% 16. 0% 14. 0% 12. 0% 10. 0% 8.0 % 6.0 % 4.0 % 2.0 % 0.0 % 20. 0% 18. 0% 16. 0% 14. 0% 12. 0% 10. 0% 8.0 % 6.0 % 4.0 % 2.0 % 0.0 % 15% 11% 7% 3% -1% -5% Strong capital position for the Group and key banking subsidiaries RHB Bank Group RHB Bank 13.9% 14.2% 14.5% 14.7% 17.2% 17.7% 13.1% 13.4% 15.9% 16.1% 12.4% 12.7% Dec Jun N1 Ratios are after FY final dividend N2 Ratios are after FY interim dividend N1 N2 N1 N2 Dec Jun RHB Islamic Bank RHB Investment Bank 35.0% 35.0% 39.9% 43.4% 10.4% 10.4% 14.1% 11.1% 11.1% 14.6% 23.5% 23.5% Dec Jun Dec Jun CET 1 Capital Tier 1 Capital Total Capital Page 18

Executive Summary H1 Financial Results Strategy Update Summary and Outlook

FIT22 Key Highlights Fund our Journey Affluent : Grew number of Premier customers by 5.7% in H1 to 48.5k customers, of which 38% are SME owners. Total AUM of Premier customers grew by 4.4% to RM26.0 bil SME : Grew Business Banking loans by 2.9% in H1 to RM24.6 bil driven by a 5.1% growth in Retail SME. Grew Business Banking deposits by 5.8% to RM23.5 bil Large Cap : Average product holding increased from 5.6 in to 6.1 in H1 with 12 deals mandated or completed in the first 6 months of Mid Cap: Penetrated new accounts and increased wallet share for some existing clients with 20 new mandates in H1, compared to 35 deals closed in Retail deposits : Grew retail deposits by 5.4% to RM50.1 bil in H1 vs. industry growth of 3.5%, mainly from fixed deposits. Our Retail deposit market share stood at 7.2% Rebalance financing portfolio : Retail and SME make up 70.3% of total financing portfolio in H1, in line with the strategy to have greater proportion of Retail and SME loans Invest to Win Analytics and big data : Revenue from analytics use cases of RM5.0 mil in H1 Key IT projects : Continued focus on capability building by investing in new technology. We have rolled out FLASH (our new Retail loan origination system phase 1 for mortgage), CREST (new Corp and BBG loan origination system), New Transaction Banking System and the next phase of MUREX Transform the Organisation Customer journey and digital solutions : Launched SME online financing, RHB Insurance App and Mortgage Referral App. Partnership with Kakitangan and Financio to offer SME ecosystem AGILE @ scale : Completed the organisational design and ready to pilot target operating model for the AGILE Way of Working (in Q4 ). This is to enable faster speed to market, enhance customer-centricity and develop a high performance culture Page 20

Executive Summary H1 Financial Results Strategy Update Summary and Outlook

Economic Outlook Malaysia is expected to register a moderate GDP expansion of 5.0% in, against 5.9% growth registered in Growth is expected to be led by an acceleration in private sector consumption while exports, private investment and public spending are anticipated to grow at a slower pace On the external front, potential risks may come in the form of trade protectionism and rising interest rates in the US Overall, the banking sector s fundamentals remain sound with healthy asset quality, strong capital position and ample liquidity Page 22

Concluding Remarks The Group delivered sustained performance in H1, continuing our solid start to the year Loans and financing continued to be driven by growth in mortgages and SME Prudent management of funding cost and impact of OPR hike in January resulted in further improvement to NIM Our fundamentals continued to be strong as reflected in our robust capital levels, healthy liquidity position, adequate coverage for our loan losses and benign credit charge ratio The Group remains focused on its five-year strategy, FIT22, which aims at enhancing performance, building scale and delivering service excellence. Digital enhancements and the AGILE way of working will feature prominently in the implementation of the strategy Barring unforeseen circumstances, the Group expects to achieve better performance this year Page 23

RHB Banking Group Revised Scorecard for Top Level Indicators Original Target Revised Target ROE 9.0% - 10.0% 9.0% - 10.0% Loans Growth 6% 3% - 4% CASA Growth 10% 4% - 5% (MY Retail & BBG) Gross Impaired Loans Ratio <2.2% <2.2% Cost to Income Ratio <50% <50% Overseas Profit Contribution +ve +ve N1 : Annualised N2 : Year-on-year growth Page 24

www.rhbgroup.com INVESTOR RELATIONS CONTACT: Haryati Yahya Head, Investor Relations +(603) 9280 2489 haryati.yahya@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 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

60. 0 50. 0 40. 0 30. 0 20. 0 10. 0 0.0 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Retail Banking RM bil Mortgage N1 Auto Finance N1 Y-o-Y: +16% RM bil Y-o-Y: +2% 43.4 50.5 8.1 8.2 Jun Jun Jun Jun Personal Loans N1 Deposits N1 RM bil Y-o-Y: +27% RM bil Y-o-Y: +12% 5.1 6.5 50.1 44.6 9.1 8.9 7.2 6.6 29.1 33.8 Jun Jun Jun Jun N1: Domestic only Fixed Deposits Demand Deposits Savings Deposits Page 27

Investment Banking Market Positions & Asset Management (1/2) RM bil Asset Under Management Ranking YTD Jun Market Share Y-o-Y: -4% Equity: - By value - By volume 5 th 3 rd 7.2% 11.4% 51.8 7.2 49.7 6.8 Debt Capital Markets: - MYR sukuk - Total MYR bonds (Conventional & Islamic bonds) 3 rd 21.3% 3 rd 18.1% 19.0 12.9 25.6 30.0 Mergers & Acquisitions: - by value - by deal count 1 st 48.3% 1 st 7 deals Equity Capital Markets 2 nd 23.0% Domestic Retail Market Share Jun Jun 11.5% 10.2% Overseas Wholesale Retail Page 28

Investment Banking Market Position (2/2) YTD June Ranking Market Share Debt Capital Markets: - MYR sukuk - Total MYR bonds (Conventional & Islamic bonds) Mergers & Acquisitions: - by value - by deal count M&A 3 rd 3 rd 21.3% 18.1% 1 st 48.3% 1 st 7 deals Equity Capital Markets 2 nd 23.0% Air Asia Group Berhad ( AAGB ) RM4,647.0 mil Disposal of AAGB s aircraft leasing operations Principal Adviser and Joint Financial Adviser CVC Asia Pacific (Singapore) Pte Ltd RM930.0 mil Acquisition of entire equity interest in Munchy Food Industries Sdn. Bhd. Financial Adviser UMW Holdings Bhd RM501.0 mil Acquisition of shares in Med-Bumikar Mara Sdn Bhd and Central Shore Sdn Bhd held by MBM Resources Adviser to Med-Bumikar Mara Sdn Bhd DCM Lembaga Pembiayaan Perumahan Sektor Awam (LPPSA) RM3.0 bil issuance out of RM25.0 bil ICP/IMTN Programme Joint Lead Manager & Joint Lead Arranger Pengurusan Air SPV Berhad RM2.1 bil issuance out of RM20.0 bil Islamic Medium Term Notes Programme Joint Lead Manager MBSB Bank Berhad RM2.295 bil Structured Covered Sukuk Murabahah Facility Joint Principal Adviser, Joint Lead Manager & Joint Lead Arranger ECM Serba Dinamik Holdings Berhad RM427.2 mil Primary Placement Sole Principal Adviser & Sole Placement Agent Wegmans Holdings Berhad RM43.50 mil Listing on ACE Market of Bursa Securities Sole Principal Adviser, Sponsor, Sole Underwriter & Sole Placement Agent Hibiscus Petroleum Berhad RM40.76 mil Private Placement Sole Principal Adviser & Sole Placement Agent Page 29

25. 0 24. 5 24. 0 23. 5 23. 0 22. 5 22. 0 21. 5 21. 0 20. 5 20. 0 Business Banking RM bil Gross Loans N1 RM bil Customer Deposits N1 Y-o-Y: +7% Y-o-Y: +8% 21.8 23.5 22.9 24.6 12.6 13.3 9.2 10.2 Jun Jun Jun Jun Fixed Deposits Demand Deposits SME Market Share RM bil Asset Quality N1 3.20% 8.7% 8.8% 9.0% 8.7% 2.32% 7.2% 0.5 0.8 2014 2015 2016 Jun N1: Domestic only Jun Jun N2 Gross Impaired Loans Gross Impaired Loans Ratio N2: After MFRS 9 adoption Page 30

50.0 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 - Islamic Banking RM mil PBT RM bil Gross Financing Y-o-Y: +20% Y-o-Y: +9% 304 349 432 480 253 275 38.3 46.0 Jun Jun 2014 2015 2016 H1 H1 Market Share 8.3% 8.9% RM mil Asset Quality Gross Financing/ Total Gross Financing (Domestic) 1.0% 1.1% 387 522 19.5% 23.0% 24.8% 29.7% 31.4% Jun Jun Gross Impaired Financing Gross Impaired Financing Ratio 2014 2015 2016 Jun Page 31

80 60 40 20 - (2 0) (4 0) (6 0) (8 0) (1 00) RHB Singapore SGD mil PBT SGD bil Loans, Deposits & Total Assets 74 32 34 42 46 (12) (81) (91) (26) (1) (8) (6) 2014 2015 2016 H1 RHB Bank Singapore (89) (97) (27) RHB Securities Singapore 23 29 (6) H1 8.0 0.4 6.7 0.2 7.6 6.0 6.5 6.0 4.2 5.0 3.7 3.7 4.4 2016 Jun Deposits Gross Loans Total Assets (RHB Securities Singapore) Total Assets (RHB Bank Singapore) 6.3 0.3 59.7% Loans Growth N1 23.5% Deposits Growth 22.1% N1 9.2% 8.0% 9.9% 1.3% 1.4% 0.1% 0.5% -10.4% -7.7% 2014 2015 2016 Jun 9.7% 6.5% 2.4% 1.8% 1.6% 0.7% 2014 2015 2016 Jun -15.8% -20.3% RHB Singapore Growth Industry Growth RHB Singapore Growth Industry Growth N1 : YoY growth Page 32