Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — H1 2020 Earnings Presentation
35 slides from Cimb Group Holdings Bhd's earnings presentation, Aug 28, 2020
Slide 1: Analyst Presentation 1H20 Results
Analyst Presentation 1H20 Results CIMB Group Holdings 28 August 2020 FORWARD Together 1
Slide 2: 01 Overview
[#]01 Overview 2
Slide 3: Key Highlights
Key Highlights Underlying topline flattish QoQ due Elevated provisions from Costs remained a to modification loss MEF and credit impairments core focus Q3 Q4 Proactive measures in Expect 2H20 to Remain Preparation of Post-Moratorium Weak Operating income -7.3% YoY as NOII fell 27.6% due to Consumer
Slide 4: Key Business/Operational Highlights
Key Business/Operational Highlights NII +1.4% Despite Modification Loss CASA Ratio Continues To Rise Total NII (RM 'mil) 38.4% 6,427 36.5% 281 6,064 6,146 34.4% 34.3% 34.4% Modification Loss Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 1H19 1H20 Higher Provisions from MEF and credit impairments Driving Absolu
Slide 5: PBT By Segment
PBT By Segment Commercial Lower Consumer PBT due to modification loss in Banking Malaysia and Thailand, higher ECL from MEF 4% adjustment and lower fee income Commercial QoQ and YoY movement mainly due to 1 1H20 Consumer large Singapore impairment in 1Q20 GVP & Group PBT Banking Funding Wholesale im
Slide 6: PBT By Country
PBT By Country Others Malaysia PBT affected by modification loss and MEF -2% adjustment. QoQ improvement from trading/FX activity Singapore -103% Lower Indonesia PBT from higher ECL (MEF) despite Malaysia improved income 1H20 120% Group PBT Thailand PBT grew YoY from stronger NII and RM910 mil tradi
Slide 7: Operating Income
Operating Income (RM 'mil) 1H20 Y-o-Y 2Q20 Q-o-Q 1H20 operating income -7.3% YoY due to modification loss and lower NOII Net interest income 6,146 1.4% 2,934 (8.7%) NII was 8.7% lower QoQ. Excluding the modification loss, NII was flat QoQ. NOII Net interest income 6,427 6.0% 3,215 0.1% was flat QoQ,
Slide 8: Operating Expenses
Operating Expenses (RM ‘mil) 1H20 Y-o-Y 2Q20 Q-o-Q Opex -3.3% YoY from lower marketing and A&G expenses as costs remain under tight 1,291 (4.4%) control Personnel 2,642 (0.8%) 503 1.2% QoQ opex declined from reduced Establishment 1,000 0.3% marketing campaigns during the MCO Marketing 135 (14.0%) 39
Slide 9: Loan Provisions/ECL
Loan Provisions/ECL 287.6% Y-o-Y 51.9% Q-o-Q Significant increase in YoY provisions due to higher credit impairments, MEF adjustment 2,438 and Covid-19-related provisions RM 'mil 470 QoQ increase due to MEF adjustment and 244 1,470 MEF Corporate O&G impairment FRS9 1,023* 470 968 2Q20 allowance cove
Slide 10: Asset Quality
Asset Quality Gross Loans Bonds Covid-19 Impacted Sectors Implementation of Group-wide R&R 30 Jun-20 30 Jun-20 approach post-moratorium Hospitality 1.3% 0.0% Launch of Malaysia Target Retail 2.2% 0.0% Assistance Programme end July Aviation 0.3% 0.2% Extension of existing opt-in Leisure 0.7% 0.7% mor
Slide 11: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Borrowers Status: Loan Exposure: 2.5% of total Group Thailand Impaired 8% 37% gross loans Normal 53% Singapore 17% 30 Jun-20 Watchlist Indonesia RM9.2bil 10% 1% Malaysia 74% Segmental Exposure: Upstream Oil Traders 2% 11% As at Jun-20, the O&G impairment ratio stood at 37% (
Slide 12: Gross Loans
Gross Loans (RM 'bil) Jun-20 Y-o-Y Q-o-Q Loans-to-Deposit Ratio Consumer Banking 185.3 5.4% 1.9% 91.5% 91.6% 92.0% 91.2% Commercial Banking 64.8 (2.4%) 2.5% Wholesale Banking 119.8 5.4% 0.8% 88.2% Total 369.9 3.9% 1.6% Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Others Loan Growth by Country (Y-o-Y) ~ Singap
Slide 13: Deposits
Deposits (RM 'bil) Jun-20 Y-o-Y Q-o-Q CASA Ratio Consumer Banking 186.3 8.4% 3.3% 38.4% 36.5% Commercial Banking 69.9 11.8% 7.2% 34.4% 34.3% 34.4% Wholesale Banking 163.3 5.6% 6.5% Total 419.5 7.8% 5.2% Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 WY Others Singapore 2% Deposit Growth by Country (Y-o-Y) 11% ^
Slide 14: Capital and Liquidity Management
Capital and Liquidity Management 16.5% 16.1% 16.4% Total Capital CET1 stood at 12.9% as at Jun-20 2.6% 2.5% 2.4% Tier 2 1.1% 1.1% 1.1% CET1 ratio remains above the target of Tier 1 >12% CET1 LCR remains comfortably above 100% for 12.8% 12.5% 12.9% all banking entities No interim dividend declared fo
Slide 15: Consumer Banking
Consumer Banking (RM 'mil) 1H20 Y-o-Y 2Q20 Q-o-Q Personal Credit Cards Others Financing 4% 2% Net interest income 2,694 4.4% 1,228 (16.2%) 3% Non interest income 764 (11.6%) 298 (36.1%) Auto 13% Gross Loans Operating income 3,458 0.4% 1,526 (21.0%) RM185.3 bil Overhead expenses (2,155) (3.1%) (1,039
Slide 16: Commercial Banking
Commercial Banking (RM 'mil) 1H20 Y-o-Y * 2Q20 Q-o-Q Others ^ Singapore 3% Net interest income 1,369 3.6% 685 0.1% 8% Thailand Non interest income 274 (10.2%) 121 (20.9%) 6% Gross Loans Operating income 1,643 1.0% 806 (3.7%) RM64.8 bil Malaysia Overhead expenses (869) (2.1%) (424) (4.7%) 2.4% 54% In
Slide 17: Wholesale Banking
Wholesale Banking (RM 'mil) 1H20 Y-o-Y 2Q20 Q-o-Q Others ^ 4% Net interest income 1,666 9.9% 860 6.7% Singapore 14% Non interest income 507 (45.5%) 350 122.9% Thailand Gross Loans Operating income 2,173 (11.2%) 1,210 25.6% Malaysia 9% RM119.8 bil 53% Overhead expenses (1,045) (11.1%) (498) (9.0%) 5.
Slide 18: Group Ventures & Partnerships & Funding
Group Ventures & Partnerships & Funding TnGD (RM 'mil) 1H20 Y-o-Y 2Q20 Q-o-Q Total Registered Users Annual Active Users (mil) (mil) Net interest income 417 (35.3%) 161 (37.1%) +4.8% Q-o-Q NIL Q-o-Q Non interest income 317 (32.8%) 162 4.5% 10.4 10.9 Operating income 734 (34.3%) 323 (21.4%) 7.0 7.0 Ov
Slide 19: CIMB Islamic
CIMB Islamic Islamic Financing (RM 'mil) 1H20 Y-o-Y 2Q20 Q-o-Q (RM 'bil) +6.0% Y-o-Y +1.6% Q-o-Q Net financing income 992 (5.9%) 407 (30.4%) Non financing income 226 (4.6%) 73 (52.3%) 93.3 94.8 Operating income 1,218 (5.7%) 480 (35.0%) 89.4 Overhead expenses (526) 22.6% (268) 3.9% PPOP 692 (19.7%) 2
Slide 20: 02 Other Updates
[#]02 Other Updates 20
Slide 21: Covid-19 – Focus Areas
Covid-19 – Focus Areas Customers Enhanced Risk Management 3-month relief for unemployed individuals and Intensify asset quality monitoring in 6-month reduction of monthly repayment for a difficult environment individuals affected by decline of income To adopt a prudent and Extension of existing reli
Slide 22: 03 Final Remarks
[#]03 Final Remarks 22
Slide 23: Final Remarks
Final Remarks 2Q20 performance impacted by modification FY20 loss, MEF adjustments and specific credit 1H20 FY20 Target Guidance impairments We will remain cautious on asset growth in 2H20 ROTCE 3.4% 4.0% - 6.0% 10.8% - 11.3% and focus on assisting customers overcome the challenging conditions ROE 2
Slide 24: 04 Appendices
[#]04 Appendices 24
Slide 25: Earnings Summary
Earnings Summary (RM ’mil) 1H20 1H19^* Y-o-Y 2Q20 1Q20 Q-o-Q Net interest income 6,146 6,064 1.4% 2,934 3,212 (8.7%) Non interest income 1,862 2,571 (27.6%) 931 931 - Operating income 8,008 8,635 (7.3%) 3,865 4,143 (6.7%) Overhead expenses (4,443) (4,596) (3.3%) (2,125) (2,318) (8.3%) PPOP 3,565 4,0
Slide 26: NOII breakdown
NOII breakdown (RM ’mil) 1H20 1H19 Y-o-Y 2Q20 1Q20 Q-o-Q Fee & commission 946 1,187 (20.3%) 381 565 (32.6%) Brokerage 8 66 (87.9%) 6 2 200.0% Asset management and security services 10 13 (23.1%) 5 5 - Trading & FX 786 1,011 (22.3%) 449 337 33.2% Dividend income 27 34 (20.6%) 18 9 100.0% Other income
Slide 27: Key Ratios
Key Ratios (%) 1H20 1H19 Y-o-Y 2Q20 1Q20 Q-o-Q ROE ~ 2.8 9.7 2.0 3.7 NIM ~** 2.29 2.46 2.15 2.44 Non-interest income / total income 23.3 29.8 24.1 22.5 Cost to income 55.5 53.2 55.0 56.0 Allowance coverage (including regulatory reserve) 81.9 96.6 81.9 75.9 Allowance coverage (excluding regulatory re
Slide 28: PBT by Segments
PBT by Segments (RM ’mil) 1H20 1H19 Y-o-Y 2Q20 1Q20 Q-o-Q Consumer Banking (48.9%) 445 726 (38.7%) (82) 527 (115.6%) Commercial Banking (3.8%) 35 1,018 (96.6%) 120 (85) 241.2% Wholesale Banking (4.8%) 44 979 (95.5%) (31) 75 (141.3%) Corporate Banking (-14.6%) (133) 635 (120.9%) (339) 206 (264.6%) Tr
Slide 29: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 1H20 1H19 Y-o-Y 2Q20 1Q20 Q-o-Q Malaysia (RM ’mil) 281 344 (18.3%) (58) 339 (117.1%) Indonesia (IDR ’bil) 236 682 (65.4%) (87) 323 (126.9%) Thailand (THB ’mil) 729 1,021 (28.6%) 355 374 (5.1%) Singapore (SGD ’mil) (8) 10 (180.0%) (18) 10 (280.0%) Others *
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 3.5% 0.4% Consumer Gross Loans 5.1% (1.6%) Mortgages 8.8% 1.5% Mortgages 9.2% 0.1% Term loans (5.6%) 0.0% Auto 4.7% (0.5)% Auto 0.6% (0.6%) Credit cards (2.8)% (6.9%) Credit cards (12.3%) (9.1%) Consumer
Slide 31: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 1H20 1H19 Y-o-Y 2Q20 1Q20 Q-o-Q Net interest income 6,203 6,316 (1.8%) 3,135 3,068 2.2% Non interest income 2,102 1,982 6.1% 951 1,151 (17.4%) Operating income 8,305 8,298 0.1% 4,086 4,219 (3.2%) Overhead expenses (3,984) (4,099) (2.8%) (1,968) (2,016) (2.4%)
Slide 32: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 1H20 1H19 Y-o-Y 2Q20 1Q20 Q-o-Q ROE 8.7 9.8 6.9 10.6 NIM 5.05 5.41 5.08 5.02 Cost to Income 48.0 49.4 48.1 47.8 Loan Loss Coverage # 159.4 102.2 159.4 191.1 Allowance Coverage 117.7 90.1 117.7 130.0 Loan Loss Charge 2.3 1.7 3.0 1.5 Gross Impaired Loans Ratio
Slide 33: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 1H20 1H19 Y-o-Y 2Q20 1Q20 Q-o-Q (THB 'mil) Net interest income 5,754 5,696 1.0% 2,924 2,830 3.3% Non interest income 2,174 1,476 47.3% 762 1,412 (46.0%) Operating income 7,928 7,172 10.6% 3,686 4,242 (13.1%) Overhead expenses (4,713) (4,455) 5.8%
Slide 34: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 1H20 1H19 Y-o-Y 2Q20 1Q20 Q-o-Q ROE ^ 6.9 2.3 3.1 10.6 NIM ^ 3.3 3.3 3.6 3.3 Cost to Income 59.4 65.8 61.1 58.0 Loan Loss Coverage ** 83.8 106.5 83.8 88.6 Loan Loss Charge ^ 1.6 1.4 2.1 1.0 Gross NPL ratio ** 5.8 4.5 5.8 5.3 Net NPL ratio ** 3.2 2.1 3.2 3.1 R
Slide 35: Corporate Responsibility
Corporate Responsibility CSR Spend as at June 2020 Health & Well - Being Health & Well - Being 4% 1% Community Development Community 22% CIMB Non-CIMB Development Foundation Foundation * 40% Education RM 2.1 mil 56% RM 5.6 mil Education 77% Food aid for Covid-19 Pandemic #SOLIDLAWANCOVID – Fund LET’