Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — FY2019 Earnings Presentation
37 slides from Cimb Group Holdings Bhd's earnings presentation, Feb 28, 2020
Slide 1: Analyst Presentation FY19 Results
Analyst Presentation FY19 Results CIMB Group Holdings 28 February 2020 FORWARD Together 1
Slide 2: FY2019 Year In Review
FY2019 Year In Review Met all targets except for CIR Actual vs Targets FY19 FY19 Target * Revenue growth came in strongly at 8.2% despite OPR cut and macro challenges ROE 9.3% 9.0 - 9.5% Healthy loans growth of 6.7%, outgrowing market in Malaysia, Thailand and Singapore Dividend Asset quality remain
Slide 3: PBT By Segment
PBT By Segment Consumer affected from impact of OPR cut in MY, MFRS9 adjustments and normalisation of provisions. GVP & Funding However underlying business remain sound with loan 17% Consumer growth of 9% Banking FY19 30% Commercial stronger YoY from operating income Group PBT expansion, lower provi
Slide 4: PBT By Country
PBT By Country Malaysia higher YoY from loan growth (+6.0%) and Singapore Others stronger trading income particularly in 3Q 7% 2% Thailand Indonesia PBT declined from higher Corporate 7% provisions Indonesia Thailand’s YoY improvement driven by loan growth 15% (+6.1%) and lower provisions Malaysia 6
Slide 5: Operating Income
Operating Income (RM 'mil) FY19 Y-o-Y 4Q19 Q-o-Q NII driven by 6.7% loan growth with NOII +12.9% from stronger T&M Net interest income 12,659 6.3% 3,346 3.0% and trading income, and higher gain from sale of equities business Non interest income ^ 5,137 12.9% 1,177 (15.3%) 2.5% lower QoQ mainly due t
Slide 6: Operating Expenses
Operating Expenses FY19 4Q19 (RM ‘mil) Y-o-Y Q-o-Q Excluding FX, Opex +7.8% YoY BAU* BAU** from investments and Foward23- Personnel 5,399 9.6% 1,332 (5.1%) related expenses Establishment 2,002 2.8% 520 7.2% Excluding FX and incremental investments costs, BAU Opex Marketing 424 20.8% 153 34.2% +4.2%
Slide 7: Loan Provisions
Loan Provisions +14.5% Y-o-Y +50.0% Q-o-Q Loan provisions +14.5% YoY and +50.0% QoQ mainly from Indonesia Corporate RM 'mil FY19 LLC stood at 0.44% (-3bps YoY) within 1,639 the target of 40-50bps. Excluding the MFRS9 1,432 related adjustments, LLC would have been 0.55% 606 404 FY18 FY19 3Q19 4Q19 95
Slide 8: Gross Loans
Gross Loans (RM 'bil) Dec-19 Y-o-Y Q-o-Q Loans-to-Deposit Ratio Consumer Banking 184.9 9.0% 2.4% 95.6% Commercial Banking 65.5 0.0% 1.7% 92.9% 91.2% 92.0% 90.8% Wholesale Banking 119.1 7.2% 2.8% Total 369.5 6.7% 2.4% 2015 2016 2017 2018 2019 Others Loan Growth by Country (Y-o-Y) ~ Singapore 5% 8% ^
Slide 9: Deposits
Deposits (RM 'bil) Dec-19 Y-o-Y Q-o-Q CASA Ratio Consumer Banking 179.0 8.9% 3.3% 35.7% 35.0% Commercial Banking 65.7 1.1% 7.2% 34.1% 34.4% 32.7% Wholesale Banking 157.0 4.5% (1.4%) Total 401.7 5.8% 2.0% 2015 2016 2017 2018 2019 WY Others Singapore 2% Deposit Growth by Country (Y-o-Y) 10% ^ Thailand
Slide 10: Capital and Liquidity Management
Capital and Liquidity Management Total Capital 17.1% 16.7% 16.8% CET1 of 12.9% above FY19 target 3.2% 2.5% 2.8% of >12%; in line with Forward23 Tier 2 1.5% 1.1% 1.1% target of 13% Tier 1 CET1 Declared FY19 second interim cash dividend of RM0.12/share 12.5% 13.1% 12.9% Full year DRS implies an averag
Slide 11: Consumer Banking
Consumer Banking (RM 'mil) FY19 Y-o-Y 4Q19 Q-o-Q Personal Financing Others Net interest income 5,492 2.0% 1,485 4.1% 3% 2% Credit Cards Non interest income 1,919 3.3% 503 (10.0%) 5% Operating income 7,411 2.3% 1,988 0.1% Auto Gross Loans 13% RM184.9bil Overhead expenses (4,389) 6.7% (1,091) (2.7%) 9
Slide 12: Commercial Banking
Commercial Banking (RM 'mil) FY19 Y-o-Y 4Q19 Q-o-Q Others^ Singapore 3% Net interest income 2,700 4.3% 702 3.7% 8% Non interest income 712 17.3% 143 (45.6%) Thailand 7% Operating income 3,412 6.8% 845 (10.1%) Gross Loans RM65.5bil Malaysia Overhead expenses (1,811) 6.2% (452) (2.6%) 52% Flat PPOP 1,
Slide 13: Wholesale Banking
Wholesale Banking (RM 'mil) FY19 Y-o-Y 4Q19 Q-o-Q Others ^ 5% Net interest income 3,112 6.6% 823 6.7% Singapore Non interest income 1,815 14.1% 430 (4.0%) 17% Operating income 4,927 9.2% 1,253 2.8% Gross Loans Malaysia Thailand RM119.1bil 51% Overhead expenses (2,323) 4.5% (562) (2.1%) 8% 7.2% PPOP
Slide 14: Group Ventures, Partnerships & Funding
Group Ventures, Partnerships & Funding FY19 TnG Digital (RM ‘mil) Y-o-Y 4Q19 Q-o-Q BAU* Total Registered Users Annual Active Users (‘mil) (‘mil) Net interest income 1,355 34.0% 336 (10.2%) +25.9% Q-o-Q +10.5% Q-o-Q Non interest income 691 39.3% 101 (15.1%) Operating income 2,046 35.8% 437 (11.4%) 6.
Slide 15: CIMB Islamic
CIMB Islamic FY19 Islamic Financing (RM 'mil) Y-o-Y 4Q19 Q-o-Q (RM 'bil) BAU* Net financing income 2,260 20.5% 601 (0.7%) +18.5% CAGR +10.6% Y-o-Y Non financing income 468 16.1% 91 (35.0%) 93.8 84.8 Operating income 2,728 19.8% 692 (7.1%) 68.3 54.6 Overhead expenses (1,040) 45.3% (406) 98.0% 47.6 PP
Slide 16: Other Updates
[#]02 Other Updates 16
Slide 17: Forward23 – 2019 Progress
Forward23 – 2019 Progress Positive start to Forward23 2019 Progress A steady rhythm and pace has been set to Year 1 Progress 21 drive the Programmes transformation Defined Execution 95% Governance Started (20 out of 21 programmes) Framework put in place 500+ # of Projects (across multiple businesses
Slide 18: Forward23 – Progress Of Headline Targets
Forward23 – Progress Of Headline Targets Strong improvements in Sustainability Rankings and Indonesia NPS, with capital targets ahead of plan 2023 2019 Financial Target Achievement Cost-to-income (%) Planned investments in Tech/Digital as well as new 45% 53.4% ventures On track. To explore options t
Slide 19: Forward23 Pivots – 2019 Key Achievements
Forward23 Pivots – 2019 Key Achievements Customer Centricity Technology & Data Our People Ventures & Partnerships Sustainability TCJ MY: Technology: • Recalibrated the headline Touch ‘n Go: • Rolled-out the Group • Commercial Lending • Completed the Tech target from 15% to 30% of • TnG Digital: Regi
Slide 20: Sustainability – Forward23 Progress Report
Sustainability – Forward 23 Progress Report Executive Summary Programme Objectives Development of CIMB’S sustainability strategy began in mid 2018, with The overarching objective of the programme is for CIMB to become a visible sustainability becoming a top 5 priority for Forward23. shaper of sustai
Slide 21: Touch 'n Go Digital
Touch ‘n Go Digital TnGD’s 2019 Growth Acceleration Agenda 2019 has been a successful year for TnGD. In the last 12 months, it has grown to become the No.1 e-wallet business in the country 1 Doubling down on TnGD finished the year with 6.8 mil registered users, 4.2 mil AAU and 116,000 use cases merc
Slide 22: Final Remarks
[#]03 Final Remarks 22
Slide 23: Final Remarks
Final Remarks Met ROE target of 9.3% despite OPR cut and FY20 Target macro challenges Met all targets except for CIR ROTCE 10.8% – 11.3% 2019 was a year of investment for the future, efficiency extraction and capital strengthening 2020 started on a challenging note with surprise ROE 9.0 - 9.5% OPR c
Slide 24: Appendices
[#]04 Appendices 24
Slide 25: Earnings Summary
Earnings Summary FY19 FY18 4Q19 3Q19 (RM ’mil) Y-o-Y Q-o-Q BAU ~ BAU^ BAU ~ BAU~ Net interest income 12,659 11,904 6.3% 3,346 3,249 3.0% Non interest income 5,137 4,550 12.9% 1,177 1,389 (15.3%) Operating income 17,796 16,454 8.2% 4,523 4,638 (2.5%) Overhead expenses (9,501) (8,656) 9.8% (2,468) (2,
Slide 26: NOII breakdown
NOII breakdown FY18 (RM ’mil) FY19 Y-o-Y 4Q19 3Q19 Q-o-Q BAU^ Fee & commission 2,465 2,473 (0.3%) 658 622 5.8% Brokerage 65 131 (50.4%) (2) 1 (300.0%) Asset management and security services 24 194 (87.6%) 6 5 20.0% Trading & FX 1,978 1,473 34.3% 430 537 (19.9%) Dividend income 68 58 17.2% 11 23 (52.
Slide 27: Key Ratios
Key Ratios FY19 FY18 4Q19 3Q19 (%) Y-o-Y Q-o-Q BAU* BAU^ BAU* BAU* ROE ~ 9.3 9.6 7.4 9.1 NIM ~** 2.46 2.50 2.53 2.52 Non-interest income / total income 28.9 27.7 26.0 29.9 Cost to income 53.4 52.6 54.6 52.5 Allowance coverage (including regulatory reserve) 99.6 106.3 99.6 94.8 Allowance coverage (ex
Slide 28: PBT by Segments
PBT by Segments FY19 FY18 4Q19 3Q19 (RM ’mil) Y-o-Y Q-o-Q BAU^^ BAU^ BAU^^ BAU^^ Consumer Banking (29.6%) 1,959 2,659 (26.3%) 611 582 5.0% Commercial Banking (24.3%) 1,609 860 87.1% 243 355 (31.5%) Wholesale Banking (29.1%) 1,928 1,834 5.1% 426 526 (19.0%) Corporate Banking (19.0%) 1,258 1,382 (9.0%
Slide 29: PBT by Segment and Country
PBT by Segment and Country Consumer Banking FY19 FY18 Y-o-Y 4Q19 3Q19 Q-o-Q Malaysia (RM ’mil) 1,173 1,708 (31.3%) 415 388 7.0% Indonesia (IDR ’bil) 1,178 1,971 (40.2%) 112 360 (68.9%) Thailand (THB ’mil) 2,352 2,187 7.5% 914 371 146.4% Singapore (SGD ’mil) 27 31 (12.9%) 9 8 12.5% 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 6.2% 1.9% Consumer Gross Loans 10.2% 2.8% Mortgages 8.9% 2.8% Mortgages 12.5% 2.9% Term loans 3.0% 0.0% Auto 4.0% 3.0% Auto 3.3% 1.3% Credit cards 12.7% 5.0% Credit cards - 1.7% Consumer Deposits 8.2% 2.7
Slide 31: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary FY19 3Q19 (IDR 'bil) FY18 Y-o-Y 4Q19 Q-o-Q BAU* BAU* Net interest income 12,568 12,012 4.6% 3,096 3,155 (1.9%) Non interest income 4,257 3,816 11.6% 1,043 1,232 (15.3%) Operating income 16,825 15,828 6.3% 4,139 4,387 (5.7%) Overhead expenses (8,255) (7,947) 3.9% (2,050)
Slide 32: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios FY19 3Q19 (Consolidated, %) FY18 Y-o-Y 4Q19 Q-o-Q BAU* BAU* ROE ^ 9.4 9.1 8.9 9.1 NIM ^ 5.31 5.12 5.14 5.29 Cost to Income 49.1 50.2 49.5 48.0 Loan Loss Coverage # 113.6 105.9 113.6 111.9 Allowance Coverage 82.0 80.0 82.0 93.3 Loan Loss Charge ^ 1.8 1.6 1.6 2.0 Gross Impaired
Slide 33: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments FY19 FY18 Y-o-Y 4Q19 3Q19 Q-o-Q (THB 'mil) Net interest income 10,907 10,747 1.5% 2,722 2,751 (1.1%) Non interest income 3,247 2,936 10.6% 1,046 698 49.9% Operating income 14,155 13,682 3.5% 3,768 3,449 9.2% Overhead expenses (9,690) (8,492) 14.1%
Slide 34: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) FY19 FY18 Y-o-Y 4Q19 3Q19 Q-o-Q ROE ^ 3.9 0.02 7.9 3.1 NIM ^ 3.31 3.71 3.28 3.36 Cost to Income 68.5 62.1 67.9 74.1 Loan Loss Coverage ** 93.7 107.0 93.7 98.0 Loan Loss Charge ^ 1.1 2.2 0.5 1.0 Gross NPL ratio ** 4.6 4.3 4.6 4.6 Net NPL ratio ** 2.7 2.3 2.7 2
Slide 35: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) FY19 FY18 FY19 FY18 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 24.4% 2 22.6% 1 DCM 11.4% 4 10.1% 4 Sukuk 22.0% 2 20.4% 3 M&A 0.4% 20 - - M&A 14.5% 1 4.3% 8 Syndication ^ 7.6% 4 6.7% 5 Syndication ^ 10.0% 2 2.5% 10 IPO - - 3.9%
Slide 36: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) FY19 FY18 FY19 FY18 Market Market ASEAN Market Market Rank Rank Rank Rank Share Share Share Share M&A - - 0.3% 36 DCM 10.7% 1 10.1% 1 Syndication ^ - - - - M&A 1.6% 19 1.0% 29 IPO - 88 - - Syndication ^ 3.7% 10 2.8% 12 ECM - 110 0.2% 44 IPO 1.7% 17 0.7% 31 ECM 13.0% 1
Slide 37: Corporate Responsibility
Corporate Responsibility CSR Spend as at December 2019 Donation 2% Community Education Development 23% 28% Education Sports 34% 33% CIMB Non-CIMB Foundation Foundation* RM 19.8 mil RM 18.6 mil Community Donation Development 49% 31% Be$MART App Launched at UKM. Ayo Menabung Dan Berbagi Baan Nong Aor
CIMB Group Holdings Berhad — FY2019 Earnings Presentation on 6ix