The information contained in this presentation is strictly confidential for information of the intended recipient(s) only. The information may not be reproduced, redistributed or transmitted, directly or indirectly by any means to any other person or published electronically or via print, in whole or in part, for any purpose without our prior written permission. When no longer needed, it should be immediately deleted from all electronic storage devices and/or any other retrieval system of any nature and any hardcopies made should be destroyed. The intellectual property in the presentation belongs to HLBB unless specifically indicated otherwise.
1 2 HLB Q1FY20 ended 30 September 2019
Key financial highlights An encouraging start to the new financial year Total Income Opex & CIR Operating Profit • Opex remains well-managed; CIR improved to • Core top-line growth supported by expansion • Solid underlying business performance amidst in loan book coupled with abated funding cost 43.0% ongoing external headwinds pressure 44.6% 43.0% 1,215 1,177 3 % RM'mil 693 652 522 525 6 % RM'mil 1 % RM'mil Q1FY19* Q1FY20 Q1FY19* Q1FY20 Q1FY19* Q1FY20 GIL & Coverage Ratio Gross Loans Deposits • Loans growth momentum led by business and • Asset • Healthy quality amongst the best; GIL deposit growth driven by CASA maintained below 1% mortgages segments expansion 199% 196% LIC 163.5 (including reg 158.8 3 % reserves) 138.7 129.8 128% RM'bil 7 % 110% RM'bil 0.81% 0.81% Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Note *: Excluding one-off gain on divestment of joint venture of RM72 mil in Q1FY19 3 HLB Q1FY20 ended 30 September 2019
Management guidance Most KPIs on track Target FY2020 Achieved Q1FY20 P Gross Loan Growth 5%-6% 6.8% y-o-y P 2.03% Net Interest Margin ~2% ~ Non-Interest Income Ratio >28% 27.4% P Cost-to-Income Ratio 43%-43.5% 43.0% P Gross Impaired Loan Ratio <1% 0.81% P Return on Equity 10.5%-11% 10.7% 4 HLB Q1FY20 ended 30 September 2019
Profit & Loss Robust growth on net interest income, prudent cost control and consistent contribution from associates Favorable impact to earnings Adverse impact to earnings 28 3 9 29 2 14 689 635 Core PAT Net Non Opex LIP + Impairment Associates Tax Core PAT Q1FY19* Interest Income Interest Income Loss Q1FY20 RM’mil (underlying) YoY % QoQ % Q1FY19* Q1FY20 • Resilient top-line performance upheld Total income 1,177 1,215 3.3% 4.0% by net interest income and sustained Operating expenses (525) (522) -0.6% -1.5% underlying non-interest contribution. Operating profit before allowances 652 693 6.3% 8.6% • CIR remained strong while delivering positive JAWS. Loan allowances & other impairments (20) 9 >100% >100% Share of profits from associates 147 145 -1.3% 2.3% • Profit contribution from BOCD remains solid. Profit before tax 779 847 8.7% 15.5% Profit after tax 635 689 8.5% 8.2% Note *: Excluding one-off gain on divestment of joint venture of RM72 mil in Q1FY19 5 HLB Q1FY20 ended 30 September 2019
Net Interest Income & NIM Margin increased from loan book growth and lower cost of funds post OPR cut 14bps 2.03% 2.00% q-o-q 1.98% 1.98% 1.89% 7.7% RM'mil 882 q-o-q 864 857 852 819 0.1% 2,041 2,078 2,077 2,017 2,019 q-o-q Repricing of high 5.1% 1,138 1,189 1,214 1,220 1,199 cost fixed deposits q-o-q post OPR Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Interest Expense Interest Income Net Interest Income NIM 6 HLB Q1FY20 ended 30 September 2019
Non-Interest Income Remained stable for Q1FY20; supported by pick up in wealth management * 29.9% 27.6% 27.4% 397 349 334 72 - - 34 30 Credit Card 24 Q1FY19 Q1FY20 28 4.3% 12 RM55 mil RM53 mil 35 Fees 125 137 127 Wealth Q1FY19 Q1FY20 Management 17.2% Fee income: RM27mil RM32 mil of which 166 Income 150 138 Q1FY19 Q4FY19 Q1FY20 Fee Income Trading & Investment Forex Islamic and others Divestment of joint venture Non Interest Income ratio Note *: Excluding one-off gain on divestment of joint venture of RM72 mil in Q1FY19 7 HLB Q1FY20 ended 30 September 2019
Operating Expense Costs remained well-contained whilst underlying CIR improved to 43% * 45.4% 44.6% 43.0% Composition of Operating Expenses 530 525 522 Admin & general 65 62 64 12% Personnel 42 48 cost 43 Marketing 55% 8% 128 128 127 Q1FY20 293 290 288 Establishment 25% Q1FY19 Q4FY19 Q1FY20 Personnel cost Establishment Marketing Admin & general CIR Note *: Excluding one-off gain on divestment of joint venture of RM72 mil in Q1FY19 8 HLB Q1FY20 ended 30 September 2019
Loans Growth traction continued amid relatively softer business environment 464 2,275 6.8% 6,120 y-o-y 138,694 129,835 Total Loans Q1FY19 Retail Business & Corporate International Operations Total Loans Q1FY20 Domestic Residential Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Singapore 10.2% Business 0.7% 9.9% Properties RM62.6 bil RM69.0 bil RM5.2 bil RM5.3 bil RM36.3 bil RM39.9 bil Enterprises Transport Q1FY19 Q1FY20 Q1FY19 Q1FY20 ~ SME 8.9% Q1FY19 Q1FY20 Stable Vietnam 37.4% RM20.0 bil RM21.8 bil Vehicle RM17.3 bil RM17.3 bil RM0.5 bil RM0.7 bil Community Unsecured ~ Q1FY19 Q1FY20 Q1FY20 Q1FY19 Q1FY19 Q1FY20 Stable 37.2% Cambodia SME 22.1% RM7.1 bil RM7.1 bil RM6.2 bil (CC+PL) RM4.5 bil RM1.1 bil RM1.3 bil Banking 9 HLB Q1FY20 ended 30 September 2019
Asset Quality Solid asset quality position with GIL ratio maintained within guidance Loan Impairment Coverage (LIC) Gross Impaired Loans 197% 196% 181% 1.63% 1.62% 1.60% 1.60% 1.56% 155% 151% 0.96% 0.87% 120% 0.81% 0.79% 118% 0.78% 110% 96% 89% RM'mil 1,203 1,126 1,124 1,071 957 97% 92% 89% 86% 84% FY16 FY17 FY18 FY19 Q1FY20 FY16 FY17 FY18 FY19 Q1FY20 Gross impaired loans GIL Ratio Industry GIL ratio LIC LIC (incld reg reserve) Industry LIC 10 HLB Q1FY20 ended 30 September 2019
Asset Quality Indicators remained healthy with no pressure on any particular segment Malaysia Overseas 0.91% 0.85% 0.82% 0.19% 0.10% 1,113 1,118 0.08% 1,064 13 7 6 FY18 FY19 Q1FY20 FY18 FY19 Q1FY20 Group SME Residential Properties Transport Vehicles 1.72% 0.58% 0.57% 0.56% 1.54% 1.42% 0.79% 0.70% 0.67% 395 353 376 331 353 309 134 122 116 FY18 FY19 Q1FY20 FY18 FY19 Q1FY20 FY18 FY19 Q1FY20 GIL RM’mil GIL ratio % 11 HLB Q1FY20 ended 30 September 2019
Deposit Healthy growth driven by robust CASA expansion CASA Fixed Deposits 5.5% 1.3% 3.0% y-o-y y-o-y RM’mil y-o-y RM’mil 91,064 90,439 26% mix 88,222 41,725 41,828 41,202 RM'mil 163,543 163,070 157,414 155,233 148,524 FY18 FY19 Q1FY20 FY18 FY19 Q1FY20 Individuals Business Enterprises 1.3% y-o-y 3.0% RM’mil 53% mix y-o-y RM’mil 88,159 86,875 85,518 67,039 66,570 62,745 FY18 FY19 Q1FY20 FY18 FY19 Q1FY20 FY16 FY17 FY18 FY19 Q1FY20 Note: Business enterprises deposits including FI 12 HLB Q1FY20 ended 30 September 2019
Liquidity & Capital Robust liquidity and capital positions Capital Adequacy ^ Loan Deposit Ratio (LDR) 90.6% 90.6% 90.0% 90.2% 16.4% 88.7% 16.3% 16.3% 16.1% 15.7% 14.1% 13.6% 13.4% 13.3% 13.1% 84.4% 84.8% 82.0% 81.2% 80.6% 13.1% 12.8% 12.7% 12.6% 12.4% FY16 FY17 FY18 FY19 Q1FY20 Industry LDR HLB LDR Note: Industry data derived from banking system’s commercial banks plus Islamic banks only Q1FY20 Liquidity Coverage Ratio (LCR) 126% Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Loan to Funds Ratio (LTF) 88% Loan to Funds & Equity Ratio (LTFE) 76% CET1 Tier 1 Total capital ratio Note: ^ Capital base & ratio after proposed dividends 13 HLB Q1FY20 ended 30 September 2019
Shareholder Value Returns came in within guidance Net Assets & Earnings Per Share Return on Equity & Return on Assets 34 33 31 31 31 10.7% 10.5% 10.1% 12.7 12.4 12.2 11.9 12.0 1.33% 1.24% 1.23% Q1FY19* Q4FY19 Q1FY20 ROE ROA Q1FY19* Q2FY19 Q3FY19 Q4FY19 Q1FY20 Note *: Excluding one-off gain on divestment of joint venture of RM72 mil in Q1FY19 NAV/share EPS 14 HLB Q1FY20 ended 30 September 2019
Performance of Associated Company: Bank of Chengdu Co., Ltd. Financial Highlights for 9M ended 30 September 2019 (unaudited) 16.3% 16.3% Robust ROE Profit After Tax Operating Income 9,302 RMB'mil 8,418 RMB'mil 11 % Solid Cost-to-income <25% <25% 4,011 3,399 Ratio 18 % 9MFY18 9MFY19 9MFY18 9MFY19 Prudent Coverage 258% 258% Gross Loan GIL ratio Ratio RMB'mil 222,254 173,660 28 % 1.56% 1.45% Strong Total 11 bps 15.9% 15.9 Capital Ratio 9MFY18 9MFY19 9MFY18 9MFY19 15 HLB Q1FY20 ended 30 September 2019
2 16 HLB Q1FY20 ended 30 September 2019
Recommend
More recommend
