Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — 9M 2008 Earnings Presentation
42 slides from Cimb Group Holdings Bhd's earnings presentation, November 2008
Slide 1: Nine Months 2008 Results
BCHB GROUP NINE MONTHS 2008 RESULTS Investor Presentation November 2008 1
Slide 2: 9M08 Earnings Summary
9M08 Earnings Summary (RM mil) 9M07 9M08 Y-o-Y Net interest income 3,266 3,374 3.3% Non interest income 3,045 2,468 (18.9%) Gain on disposal of subsidiaries 715 18 (97.5%) Operating income 7,026 5,860 (16.6%) Loan provisions (1,011) (532) (47.4%) - Specific (862) (318) (63.2%) - General (149) (214)
Slide 3: 3Q08 Earnings Summary
3Q08 Earnings Summary (RM mil) 3Q07 3Q08 3Q08v3Q07 2Q08 3Q08 3Q08v2Q08 Net interest income 1,092 1,148 5.2% 1,104 1,148 4.0% Non interest income 738 535 (27.5%) 1,036 535 (48.4%) Gain on disposal of 628 - (100.0%) 18 - (100.0%) subsidiaries Operating income 2,458 1,683 (31.5%) 2,158 1,683 (22.0%) Lo
Slide 4: 3Q08 Financial Contribution
3Q08 Financial Contribution 2,465 2,188 2,140 2,016 1,980 2,019 19.1% 1,830 1,663 17.4% 1,683 15.4% 15.8% 16.5% 11.2% 13.6% 13.0% 916 929 11.4% 739 739 749 660 632 592 577 572 494 529 486 535 408 447 403 448 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 Operating income* PBT* Net profit* ROAE** Exclu
Slide 5: Contribution by Entity – Lower Overseas Contribution
Contribution by Entity – Lower Overseas Contribution CIMB (RM mil) Bank Niaga BCHB BCHB Group Universal Bank Revenue 5,003 867 (10) 5,860 Profit/ (loss) before tax 1,990 296 (18) 2,268 Net profit 1,497 133 3 1,633 Overseas / Domestic share of PBT 9M08 9M08 % CIMB Universal Bank PBT of PBT (RM mil) C
Slide 6: Revenue by Segment
Revenue by Segment (RM mil) 2Q08 3Q08 Q-o-Q 9M07 9M08 Y-o-Y Consumer Banking 837 869 4% 2,295 2,491 9% Corporate & Investment Banking 476 360 (24%) 1,611 1,313 (19%) Treasury & Investments 458 106 (77%) 1,230 985 (20%) GAM & Insurance 69 40 (42%) 338 162 (52%) Niaga 289 293 1% 900 867 (4%) Other inc
Slide 7: Estimated PBT by Segment
Estimated PBT by Segment PBT 3Q07 2Q08 3Q08 9M07 9M08 (after Head Office % of % of % of % of % of cost allocation) RM mil RM mil RM mil RM mil RM mil PBT PBT PBT PBT PBT Consumer Banking 47 8% 234 25% 231 40% (36) (1%) 512 23% Corporate & Investment 267 46% 204 22% 180 32% 829 37% 631 28% Banking Tr
Slide 8: Consolidated Balance Sheet Changes
Consolidated Balance Sheet Changes 30th June 30th Sept (RM mil) 30th Sep 07 Y-o-Y Q-o-Q 08 08 Cash & short term funds 22,304 31,700 33,011 48% 4% Securities purchased under resale agreements 3,473 2,674 2,038 (41%) (24%) Deposits & placements with financial institutions 7,607 6,056 2,411 (68%) (60%)
Slide 9: Gross Loans grew 10.5% over the year
Gross Loans grew 10.5% over the year Gross loans Gross Gross as at loans as at loans as at Y-o-Y Products / loans Divisions 30th Sep 07 30th Jun 08 30th Sep 08 RM0.9 bil growth (RM bil) (RM bil) (RM bil) 11.5% Consumer Banking 53.5 58.8 60.4 12.9% 10.5% Mortgages 18.0 21.5 23.0 27.8% - Of which 16.1
Slide 10: Deposits Grew 18% Over the Year
Deposits Grew 18% Over the Year Divisions / 30th Sep 07 30th Jun 08 30th Sep 08 Y-o-Y Products (RM bil) (RM bil) (RM bil) growth 18% Retail 29.0 33.5 35.8 23.6% - Current 3.7 4.2 4.1 11.6% - Savings 7.7 8.6 9.2 19.2% RM142.0 bil - Fixed & structured 17.6 20.7 22.5 28.1% deposits RM 120.2 bil Busines
Slide 11: Better Asset Quality Ratios Again
Better Asset Quality Ratios Again 80.0% 76.6% 74.2% 14.5% 71.9% 69.3% 70.0% 65.1% 12.5% 59.0% 61.0% 60.0% 55.8% 57.5% 51.5% 55.2% 54.2% 54.9% 10.5% 9.8% 9.5% 50.0% 9.0% 8.8% 8.7% 8.8% 9.1% 8.6% 7.9% 8.5% 40.0% 7.2% 7.1% 6.2% 6.5% 6.2% 6.1% 5.9% 6.0% 6.5% 30.0% 5.7% 5.5% 5.5% 5.1% 4.5% 20.0% 4.5% 3.8
Slide 12: Gearing and Double Leverage at Target Levels
Gearing and Double Leverage at Target Levels BCHB Holding Company RM mil 3Q08 2Q08 Investment in subsidiaries 11,439 11,429 External debt & borrowings 3,770 3,255 Share capital 3,371 3,371 Reserves 6,368 6,267 Gearing ratio 38.7% 33.8% Double leverage ratio 117.5% 118.6% RWCR - Bank 14.2% 14.4% - IB
Slide 13: BCHB: Operating Expenses
BCHB: Operating Expenses (RM ‘mil) 2Q08 3Q08 Q-o-Q 9M07 9M08 Y-o-Y Personnel 499 468 (6%) 1,612 1,495 (7%) Establishment 222 192 (14%) 626 617 (1%) Marketing 69 76 11% 180 201 12% Admin & general 245 194 (21%) 699 715 2% Total costs 1,035 930 (10%) 3,117 3,028 (3%) 13
Slide 14: Key Ratios
Key Ratios (%) 4Q07 1Q08 2Q08 3Q08 ROAE 13.0 13.6 16.5 11.4 Net interest margin* (excl. IIS) 2.3 2.3 2.2 2.3 Fee income/ total income 17.1 15.0 20.1 21.5 Non-interest income/ total income 55.5 44.8 48.8 31.8 Cost/ income 56.1 52.7 48.0 55.2 Loan loss coverage 69.3 71.9 74.2 76.6 Gross NPL ratio 7.2
Slide 15: Malaysian Consumer Bank
BCHB GROUP : 9M08 RESULTS MALAYSIAN CONSUMER BANK 15
Slide 16: Consumer Bank Shows Significant Turnaround on Year
Consumer Bank Shows Significant Turnaround on Year 3Q08 vs. 9M08 vs. (RM mil) 2Q08 3Q08 9M07 9M08 2Q08 9M07 Net interest/financing income 653 681 4% 1,815 1,956 8% Non interest income 184 188 2% 480 535 11% Total income 837 869 4% 2,295 2,491 9% Overheads (direct + head (523) (548) 5% (1,681) (1,688
Slide 17: Consumer Market Shares Improve In Preferred Areas
Consumer Market Shares Improve In Preferred Areas Market shares 30th Sep 2008 30th June 2008 31st Mac 2008 Ranking Mortgages 11.7% 11.3% 10.8% 3 HP 10.7% 11.1% 11.5% 4 Credit cards - by loan base 10.6% 10.3% 9.7% 3 - card base 9.8% 9.4% 8.8% Retail deposits * 8.9% 8.9% 8.8% 4 SME loan 12.4% 12.5% 12
Slide 18: Sales fell in September 08 in line with operating environment
Sales fell in September 08 in line with operating environment… Retail Loans – Housing Loans and Business Premises Loans RM'mil SP Day 1 900 Avg Housing Loan RM203,000 size: RM169,000 800 700 600 500 400 300 200 100 0 Housing Business Premises 18
Slide 19: Other Consumer Indicators (1)
Other Consumer Indicators (1) Business Banking Division - Total Loans CIMB Express - Total Disbursed (RM 'mil) Approved (RM mil) 146.4 New & Enhancement 131.7 116.6 2033 94.2 92.4 1570 1314 1366 1187 3Q07 4Q07 1Q08 2Q08 3Q08 3Q07 4Q07 1Q08 2Q08 3Q08 Wealth Management 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q
Slide 20: Other Consumer Indicators (2)
Other Consumer Indicators (2) Average Product % OTC vs. SST Holding Across Upper Mass Mass Affluent Retail 19% 18% 18% Jan-08 3.86 2.62 17% Feb-08 3.93 2.63 16% 16% 16% 16% 15% 15% 15% 15% Mar-08 3.97 2.65 14% 14% Apr-08 4.00 2.67 13% 14% 14% 14% 14% 12% 12% May-08 4.06 2.70 11% Jun-08 4.13 2.72 10%
Slide 21: Retail Banking Assets Under Management
Retail Banking Assets Under Management AUM 38,000 36,000 34,000 32,000 RM'mil 30,000 28,000 26,000 24,000 22,000 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-0
Slide 22: Credit Cards Continue to Surge
Credit Cards Continue to Surge Card base (RM '000) Card Spending (RM 'mil) 1,200 2,500 1,000 2,000 800 1,500 600 1,000 400 200 500 874 948 1,013 1,053 1,798 1,865 2,069 2,261 0 0 FY07 1Q08 2Q08 3Q08 4Q07 1Q08 2Q08 3Q08 NPL Ratio Average Monthly Branch Card Applications Cards 2.8% FY06 6,865 2.7% 2.6
Slide 23: HP Business in 3Q08 Remain Steady, Asset Quality Continue to Improve
HP Business in 3Q08 Remain Steady, Asset Quality Continue to Improve Auto Finance Loan Disbursed As At 2Q08 (RM million) HP Key Themes 300.0 250.3 253.0 257.9 • Disbursement fall marginally in 3Q08 by 1% 245.1 253.0 250.0 229.8 228.2 (RM748m in 2Q08 to RM739m in Q308)… 196.2 200.0 Financing of new N
Slide 24: CIMB Islamic Business is Gaining Momentum too
CIMB Islamic Business is Gaining Momentum too Ranking of Total Islamic Assets Why Wait outstanding as at 30 Sept 2008 is Total Islamic Total Assets RM1.94 billion Assets RM mil Credit card launched on 17 Oct 2008 MIBB 26,925 Bank Islam 23,559 CIMB Islamic 16,669 PBB-i 14,754 Muamalat 13,217 FY08
Slide 25: Vintage Analysis Indicates Better Asset Quality
Vintage Analysis Indicates Better Asset Quality NPL % HOUSING LOAN NPL TREND BY VINTAGE (AMT) 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% OsBal6 OsBal12 OsBal18 OsBal24 OsBal30 OsBal36 OsBal42 OsBal48 FY04 FY05 FY06 FY07 FY08 NPL % HP NPL TREND BY VINTAGE (AMT) 12.00% 10.00% 8.00% 6.00% 4.00% 2.00%
Slide 26: Fresh Transfer/Gross Loans (%)
Fresh Transfer against Average Gross Loans (Conventional only) Q1 07 NPL increased from 2006 due to SPD1 impact on Ex-SBB OD classifications 35,000 3.0% Fresh Transfer & Gross Loans (RM'mil) 30,000 Fresh Transfer/Gross Loans(%) 2.5% 25,000 2.0% 20,000 1.5% 15,000 1.0% 10,000 5,000 0.5% - 0.0% 3Q '05
Slide 27: Investment Banking & Treasury
BCHB GROUP : 9M08 RESULTS INVESTMENT BANKING & TREASURY 27
Slide 28: Income Breakdown
Income Breakdown Corporate & Investment Banking (RM mil) 2Q08 3Q08 Q-o-Q 9M07 9M08 Y-o-Y Net interest/financing income 180 192 7% 449 561 25% Fee & commission income 191 103 (46%) 514 389 (24%) Net trading income 38 8 (78%) 364 157 (57%) Brokerage income 67 57 (15%) 284 206 (27%) Total income 476 36
Slide 29: YTD Malaysian Market Shares Maintained
YTD Malaysian Market Shares Maintained M&A ADVISORY (BY VALUE) PRIMARY RM BOND MARKET (BY VALUE) 29.8 bil 11.0 bil CIMB CIMB 20.6% 31.1% 15.3 bil Aseambankers 10.9 bil Aseambankers 16.0% 20.4% 8.4 bil RHB 6.7 bil AmInvestment 8.8% 12.6% 7.4 bil 5.00 bil Public Investment Public 7.7% 9.4% 34.8 bil 4.
Slide 30: and regional ones too
and regional ones too Thailand • Brokerage market share of 0.38% • IB gaining traction with mandates for M&A and IFA work Hong Kong* • No. 2 Advisor Ranking for Announced Deals (by no. of deals (25 deals, 2.6% market Singapore share) • No. 1 Advisor Ranking for • No. 3 Advisor Ranking for Announced
Slide 31: Islamic Investment Banking leadership sustained too
Islamic Investment Banking leadership sustained too 3Q08 Domestic Islamic League Table 3Q08 Global Islamic League Table Rank Company Market Share Rank Company Market Share 1 CIMB 54.2% 1 CIMB 26.6% 2 Aseambankers 11.9% 2 HSBC 17.7% 3 AmInvestment Bank 9.7% 3 AmInvestment Bank 15.8% 4 OSK Investment
Slide 32: Indonesian Banking
BCHB GROUP : 9M08 RESULTS INDONESIAN BANKING 32
Slide 33: Bank Niaga 3Q08 Financials
Bank Niaga 3Q08 Financials (As Previously Announced on October 23 2008) 3Q08 vs. 9M08 vs. (IDR billion) 2Q08 3Q08 9M07 9M08 2Q08 9M07 Net Interest Income 742 704 -5% 1,916 2,103 10% Non Interest Income 88 98 11% 437 290 -34% Operating Income 830 802 -3% 2,353 2,393 2% Overhead Expenses (498) (520) 4
Slide 34: Asset Management & Insurance
BCHB GROUP : 9M08 RESULTS ASSET MANAGEMENT & INSURANCE 34
Slide 35: Group's Assets Under Management & Insurance
Group’s Assets Under Management & Insurance 9M07 9M08 25,000 PBT 2,136 2,170 RM mil RM mil 2,114 2,015 1,888 20,000 CPAM Group 36 32 AUM (RM 'mil) 15,000 Wholesale Funds 45 4 10,000 19,176 17,792 18,981 18,222 Total 81 36 17,371 5,000 0 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 CPAM Wholesale Insurance 9M0
Slide 36: Corporate Transactions Update
BCHB GROUP : 9M08 RESULTS CORPORATE TRANSACTIONS UPDATE 36
Slide 37: GSAM Updates – Corporatisation
GSAM Updates – Corporatisation Approved by CIMB Bank Board on April 28 and CIMBG Board on May 7 Common Forge Berhad identified as SPV, portfolio involves 58,529 accounts with NBV at RM 1.8 billion Exploring external funding and determining structural impediments to future sales Corporatisati
Slide 38: Niaga Lippo Update
Niaga Lippo Update • Business integration planning for all units completed and endorsed • As at the closing date of the standby offer on July 28, the level of acceptances were as follows: % Acceptance Potential outlay Niaga minorities 94.18% IDR4.9 trillion / RM1.72 billion Lippo minorities 73.79% I
Slide 39: Corporate Transactions Update
Corporate Transactions Update A. SIBB / SBB • Disposal of SBB Securities was completed on October 22. • Proposed acquisition of assets and liabilities of SIBB is pending application to High Court for vesting. B. Bank of Yingkou • Bank of Yingkou submitted application to Yingkou BRC on 30 May 2008, n
Slide 40: Summary
BCHB GROUP : 9M08 RESULTS SUMMARY 40
Slide 41: Key 2008 Targets: 9M08 Checkpoint
Key 2008 Targets: 9M08 Checkpoint 2008 9M08 ROE >16% X TSR >KLCI X Total loans growth* 12% Retail deposit^ 25% X Loan loss charge 0.7% Tier 1 (at bank) 8% RWCR (at bank) 12.5% Double leverage ≈ 115% Target achieved () / not achieved ( X ) * calculated on annualised basis ^ 22.6% on an ann
Slide 42: Thank You
THANK YOU BUMIPUTRA COMMERCE
CIMB Group Holdings Berhad — 9M 2008 Earnings Presentation on 6ix