Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — H1 2019 Earnings Presentation
37 slides from Cimb Group Holdings Bhd's earnings presentation, Aug 29, 2019
Slide 1: Analyst Presentation 1H19 Results
Analyst Presentation 1H19 Results CIMB Group Holdings 29 August 2019 FORWARD Together 1
Slide 2: Key Financial Highlights
Key Financial Highlights Net Profit* (RM) ROE*^ Gross Loan (RM) 2,701mil 9.7% 355.9bil +14.5%Y-o-Y Flat Y-o-Y +6.9% Y-o-Y Cost-to-Income* Loan Loss Charge^ CET1 53.2% 0.35% 12.9% +190bps Y-o-Y -10bps Y-o-Y +90bps Y-o-Y Note: * Excludes CPAM & CPIAM gain of RM928mil in 1H18 ^Annualised 2
Slide 3: Key Business/Operational Highlights
Key Business/Operational Highlights Loan provisions continues to show positive trajectory Stronger Trading & FX income from better capital market activity (RM 'mil) 0.45% LLC ~ 0.35% +54.1% Y-o-Y +28.7% Q-o-Q 1,011 656 746 569 Loan 442 629 Provisions (RM 'mil) 1H18 1H19 1H18 1H19 1Q19 2Q19 Weaker NI
Slide 4: PBT By Segment
PBT By Segment Weaker Consumer PBT from lower NOII and higher provisions GVP & Funding Consumer 22% Banking Strong Commercial PBT with lower provisions 1H19 22% Group PBT Wholesale PBT improved from better capital market RM3,559mil revenues and lower provisions Wholesale 8.7% GVPF higher from an imp
Slide 5: PBT By Country
PBT By Country Singapore Others Malaysia higher from loans growth (+6.6%) and 6% 3% improved capital market activity Thailand 5% Indonesia improvement driven by stronger Consumer Indonesia Thailand saw lower trading income and higher 19% overheads Malaysia 67% Singapore growth from better NIMs Malay
Slide 6: Operating Income
Operating Income (RM 'mil) 1H19 Y-o-Y 2Q19 Q-o-Q 1H19 operating income +4.8% YoY underpinned by strong NOII growth Net interest income 6,064 3.3% 3,000 (2.1%) from improved capital markets Non interest income 2,571 8.5% 1,469 33.3% NII grew 3.3% YoY from 6.9% loan growth partially offset by lower NI
Slide 7: Operating Expenses
Operating Expenses (RM ‘mil) 1H19 Y-o-Y 2Q19 Q-o-Q Higher opex YoY from investments and Foward23-related expenses. Personnel 2,664 10.0% 1,313 (2.8%) Excluding these, core opex rose by Establishment 997 2.4% 494 (1.8%) 3.7% YoY and was 2.7% lower QoQ Marketing 157 17.2% 89 30.9% 1H19 CIR improved to
Slide 8: Loan Provisions
Loan Provisions -15.7% Y-o-Y +9.7% Q-o-Q Loan provisions lower by 15.7% YoY from higher write backs 746 RM 'mil 629 QoQ +9.7% mainly from Consumer and Wholesale Banking LLC came in at 0.35% for 1H19. Excluding 300 329 the MFRS9 related write backs, LLC would have been 0.54% Credit cost remain on tra
Slide 9: Gross Loans
Gross Loans (RM 'bil) Jun-19 Y-o-Y Q-o-Q Loans-to-Deposit Ratio Consumer Banking 175.8 8.3% 1.9% 94.0% 93.1% Commercial Banking 66.4 4.4% - 91.2% 91.4% 91.5% Wholesale Banking 113.7 6.3% 1.7% Total 355.9 6.9% 1.5% Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Others Singapore 2% Loan Growth by Country (Y-o-Y)
Slide 10: Deposits
Deposits (RM 'bil) Jun-19 Y-o-Y Q-o-Q CASA Ratio Consumer Banking 171.3 16.0% 0.8% 35.6% 34.4% Commercial Banking 62.5 (2.5%) (2.0%) 32.7% 32.7% 32.9% Wholesale Banking 155.2 9.1% 3.4% Total 389.0 9.9% 1.4% Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Others Singapore 2% Deposit Growth by Country (Y-o-Y) 10%
Slide 11: Capital and Liquidity Management
Capital and Liquidity Management 16.6% 16.2% 16.6% Total Capital CET1 increased to 12.9% as at 3.4% 2.6% 2.6% Tier 2 end Jun-19 (+90bps YoY; +10bps 0.8% 1.1% 1.2% QoQ) Tier 1 Includes negative impact of 8bps from sale of Malaysian equities 12.0% 12.8% 12.9% CET1 business CET1 target remains at >12.0
Slide 12: Consumer Banking
Consumer Banking (RM 'mil) 1H19 Y-o-Y 2Q19 Q-o-Q Personal Financing 3% Others Net interest income 2,580 (4.8%) 1,223 (9.9%) Credit Cards 2% 5% Non interest income 857 (10.5%) 433 2.1% Auto Operating income 3,437 (6.3%) 1,656 (7.0%) Gross Loans 13% RM175.8bil Overhead expenses (2,177) 9.6% (1,087) (0
Slide 13: Commercial Banking
Commercial Banking (RM 'mil) 1H19 Y-o-Y 2Q19 Q-o-Q Others ^ Net interest income 1,321 2.6% 663 0.8% Singapore 2% 12% Non interest income 306 (4.1%) 159 8.2% Thailand Operating income 1,627 1.2% 822 2.1% 7% Gross Loans Malaysia RM66.4bil 48% Overhead expenses (895) 7.6% (458) 4.8% 4.4% PPOP 732 (5.5%
Slide 14: Wholesale Banking
Wholesale Banking (RM 'mil) 1H19 Y-o-Y 2Q19 Q-o-Q Others ^ 4% Net interest income 1,518 4.6% 786 7.4% Singapore Non interest income 937 33.7% 477 3.7% 16% Operating income 2,455 14.1% 1,263 6.0% Gross Loans Malaysia Thailand RM113.7bil 51% Overhead expenses (1,187) 11.1% (593) (0.2%) 9% 6.3% PPOP 1,
Slide 15: Group Ventures, Partnerships & Funding
Group Ventures, Partnerships & Funding TnGD (RM ‘mil) 1H19 Y-o-Y 2Q19 Q-o-Q Total Registered Users Annual Active Users (mil) (mil) Net interest income 645 53.2% 328 3.5% +32.4% Q-o-Q +26.9% Q-o-Q Non interest income 471 20.2% 400 463.4% 4.5 Operating income 1,116 37.3% 728 87.6% 3.4 3.3 Overhead exp
Slide 16: CIMB Islamic
CIMB Islamic Islamic Financing ^ (RM 'mil) 1H19 Y-o-Y 2Q19 Q-o-Q (RM 'bil) Net financing income 1,054 17.5% 538 4.3% +14.2% Y-o-Y +3.2% Q-o-Q Non financing income 237 (0.4%) 131 23.6% Operating income 1,291 13.7% 669 7.6% 74.0 76.4 66.9 Overhead expenses (429) 17.5% (209) (5.0%) PPOP 862 11.9% 460 1
Slide 17: 02 Other Updates
[#]02 Other Updates 17
Slide 18: Translating Strategy To Action – Overall Status
Translating Strategy To Action – Overall Status 21 90% 80% of programmes projects reviewed Programmes commenced and approved for execution 2019 1H19 Progress Oversight model and Communicated the Refined Programme- detailed governance Forward23 strategy at Level targets to ensure methodology defined
Slide 19: Translating Strategy To Action
Translating Strategy To Action Customer Centricity Technology & Data Our People Ventures & Sustainability Partnerships TCJ: • Technology baselining 3 core workstreams • TNGD business • Group Sustainability • Commercial lending completed - first defined: performance tracking Policy rolled out in jour
Slide 20: CIMB Group Sustainability Roadmap 2023
CIMB Group Sustainability Roadmap 2023 THE GROUP OUR CLIENTS SOCIETY Governance and Risk Sustainable Action Sustainable Business Corporate Social Responsibility* How we govern and report sustainability risks at CIMB, including setting targets and tolerance levels, and how we organise and How we embe
Slide 21: CIMB's Inaugural Sustainable Finance Summit
CIMB’s Inaugural Sustainable Finance Summit 21
Slide 22: 03 Final Remarks
[#]03 Final Remarks 22
Slide 23: Final Remarks
Final Remarks Encouraging 1H19 performance despite 1H19 FY19 Target difficult operating conditions Challenges remain for 2H19 given macro uncertainties and trade tensions ROE 9.7% 9.0 - 9.5% Key financial targets remain on track but ROE and CIR dependent on revenue trajectory Dividend Payout 50.4% 4
Slide 24: 04 Appendices
[#]04 Appendices 24
Slide 25: Earnings Summary
Earnings Summary 1H18 (RM ’mil) 1H19 Y-o-Y 2Q19 1Q19 Q-o-Q BAU^ Net interest income 6,064 5,869 3.3% 3,000 3,064 (2.1%) Non interest income 2,571 2,370 8.5% 1,469 1,102 33.3% Operating income 8,635 8,239 4.8% 4,469 4,166 7.3% Overhead expenses (4,596) (4,228) 8.7% (2,294) (2,302) (0.3%) PPOP 4,039 4
Slide 26: NOII breakdown
NOII breakdown 1H18 (RM ’mil) 1H19 Y-o-Y 2Q19 1Q19 Q-o-Q BAU^ Fee & commission 1,185 1,226 (3.3%) 602 583 3.3% Brokerage 66 72 (8.3%) 30 36 (16.7%) Asset management and security services 13 188 (93.1%) 6 7 (14.3%) Trading & FX 1,011 656 54.1% 569 442 28.7% Dividend income 34 20 70.0% 31 3 933.3% Oth
Slide 27: Key Ratios
Key Ratios 1H18 (%) 1H19 Y-o-Y 2Q19 1Q19 Q-o-Q BAU^ ROE ~ 9.7 9.7 9.9 9.2 NIM ~** 2.46 2.53 2.37 2.48 Non-interest income / total income 29.8 28.8 32.9 26.5 Cost to income 53.2 51.3 51.3 55.3 Allowance coverage (including regulatory reserve) 96.6 106.8 96.6 103.5 Allowance coverage (excluding regula
Slide 28: PBT by Segments
PBT by Segments 1H18 (RM ’mil) 1H19 Y-o-Y 2Q19 1Q19 Q-o-Q BAU^ Consumer Banking (21.5%) 766 1,456 (47.4%) 183 583 (68.6%) Commercial Banking (28.4%) 1,011 490 106.3% 690 321 115.0% Wholesale Banking (27.5%) 976 856 14.0% 499 477 4.6% Corporate Banking (17.5%) 623 665 (6.3%) 303 320 (5.3%) Treasury &
Slide 29: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 1H19 1H18 Y-o-Y 2Q19 1Q19 Q-o-Q Malaysia (RM ’mil) 370 979 (62.2%) (37) 407 (109.1%) Indonesia (IDR ’bil) 706 779 (9.4%) 492 214 129.9% Thailand (THB ’mil) 1,067 1,459 (26.9%) 387 680 (43.1%) Singapore (SGD ’mil) 10 21 (52.4%) 6 4 50.0% Others * (RM ’mil)
Slide 30: Consumer Banking Key Highlights
Consumer Banking Key Highlights Malaysia Y-o-Y Q-o-Q Indonesia Y-o-Y Q-o-Q Consumer Gross Loans 6.1% 1.0% Consumer Gross Loans 6.7% 2.4% Mortgages 8.4% 1.7% Mortgages 13.5% 2.3% Term loans 4.9% 0.9% Auto (16.0%) 1.0% Auto 4.1% 1.3% Credit cards 10.1% 4.3% Credit cards - - Consumer Deposits 3.1% 2.9%
Slide 31: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 1H19 1H18 Y-o-Y 2Q19 1Q19 Q-o-Q Net interest income 6,316 5,988 5.5% 3,279 3,038 7.9% Non interest income 1,982 1,864 6.3% 950 1,032 (7..9%) Operating income 8,298 7,852 5.7% 4,229 4,070 3.9% Overhead expenses (4,099) (3,879) 5.7% (2,026) (2,073) (2.3%) PPOP
Slide 32: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 1H19 1H18 Y-o-Y 2Q19 1Q19 Q-o-Q ROE ^ 9.8 9.4 10.1 9.5 NIM ^ 5.42 5.09 5.54 5.28 Cost to Income 49.4 49.4 47.9 50.9 Loan Loss Coverage # 101.2 106.8 101.2 113.8 Allowance Coverage 90.0 81.6 90.0 86.9 Loan Loss Charge ^ 1.7 1.6 1.8 1.6 Gross Impaired Loans Ra
Slide 33: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 1H19 1H18 Y-o-Y 2Q19 1Q19 Q-o-Q (THB 'mil) Net interest income 5,434 5,235 3.8% 2,727 2,707 0.7% Non interest income 1,442 1,560 (7.6%) 653 789 (17.2%) Operating income 6,876 6,795 1.2% 3,380 3,496 (3.3%) Overhead expenses (4,527) (3,874) 16.9% (2
Slide 34: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 1H19 1H18 Y-o-Y 2Q19 1Q19 Q-o-Q ROE ^ 2.3 2.2 1.1 3.5 NIM ^ 3.30 3.87 3.30 3.31 Cost to Income 65.8 57.0 72.1 59.8 Loan Loss Coverage ** 106.5 90.1 106.5 109.5 Loan Loss Charge ^ 1.4 2.3 1.2 1.7 Gross NPL ratio ** 4.5 5.8 4.5 4.3 Net NPL ratio ** 2.1 2.9 2.1
Slide 35: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 1H19 1H18 1H19 1H18 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 16.6% 3 23.1% 1 DCM 11.7% 3 9.4% 4 Sukuk 13.8% 3 23.7% 1 M&A - - - - M&A 23.3% 1 9.4% 2 Syndication ^ 11.6% 3 7.7% 3 Syndication ^ 13.0% 1 2.2% 10 IPO - - 5.7% 8 I
Slide 36: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 1H19 1H18 1H19 1H18 Market Market ASEAN Market Market Rank Rank Rank Rank Share Share Share Share M&A - - 0.7% 26 DCM 9.9% 2 10.0% 1 Syndication ^ - - - - M&A 3.1% 17 1.7% 18 IPO 0.1% 62 - - Syndication ^ 4.9% 6 3.4% 10 ECM 0.1% 83 0.4% 27 IPO 0.7% 25 1.0% 25 ~ Cash E
Slide 37: Corporate Responsibility
Corporate Responsibility CSR Spend as at June 2019 Sports 2% Education Community 16% Development 22% CIMB Non-CIMB Foundation Foundation* RM 3.3mil Education Community RM 7.0mil 76% Development 84% Mobile Ramadan Bazaar Programme Ayo Menabung Dan Berbagi “Let Children Color Their Dream” An initiativ