Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — FY2022 Earnings Presentation
45 slides from Cimb Group Holdings Bhd's earnings presentation, Feb 28, 2023
Slide 1: Analyst Presentation FY22 Results
Analyst Presentation FY22 Results CIMB Group Holdings 28 February 2023 FORWARD Your Ambitions 1
Slide 2: 01 Overview
01 Overview 2
Slide 3: FY22 Year In Review
FY22 Year In Review Exceeded all targets for the year FY22 FY22 FY22 Stronger FY22 performance driven by: BAU Targets Guidance • Increased revenue from robust loan growth and NIM expansion • Stringent cost management resulting in lowest ROE (Reported) 9.0% 7.5-8.0% 8.0-9.0% recorded CI ratio at 46.5
Slide 4: Key Highlights
Key Highlights Strong operating income Robust loan growth Lowest recorded CIR of 46.5% despite growth QoQ and YoY maintained through FY22 4Q22 accelerated accruals FY22 loan loss charge of 51bps despite Strong FY22 net profit growth All business segments and countries higher 4Q22 overlays translatin
Slide 5: Key Business/Operational Highlights
Key Business/Operational Highlights Strong operating income growth QoQ and YoY Significantly improved FY22 provisions (RM 'mil) +4.5% QoQ +8.0% YoY 0.73% Loan Loss 0.70% 19,838 0.48% 0.51% 18,372 Charge 4,997 5,220 3,157 NII 15,158 Total 13,958 744 2,161 3,901 4,033 Provisions 511 (RM ‘mil) NOII 1,0
Slide 6: PBT By Segment
PBT By Segment Consumer had a strong FY22 from robust NII growth CIMB Digital Assets and lower provisions; 4Q22 was weaker from lower & Group Funding NOII and higher MEF & overlays 14% Consumer Positive Commercial performance YoY and QoQ driven Banking by robust topline and lower provisions FY22 33%
Slide 7: PBT By Country
PBT By Country Malaysia PBT YoY +31.4% YoY underpinned by solid SingaporeOthers NII and lower provisions across all business segments; 9% -0.2% QoQ +4.5% from strong trading & FX income and lower Thailand Commercial provisions 6% Indonesia PBT improved YoY from revenue growth and FY22 lower provisio
Slide 8: Operating Income
Operating Income NII +8.6% YoY driven by strong loan (RM 'mil) 4Q22 Q-o-Q FY22 Y-o-Y growth and improved NIM; +3.4% QoQ from stronger NIM in Indonesia Net interest income 4,033 3.4% 15,158 8.6% NOII +6.0% YoY from fee income and higher NPL recoveries; +8.3% QoQ Non interest income 1,187 8.3% 4,680 6
Slide 9: Operating Expenses
Operating Expenses 4Q22 FY22 Opex +3.2% YoY from higher (RM 'mil) Q-o-Q Y-o-Y BAU^ BAU^ Personnel, Technology investments and Marketing costs, partially offset by Personnel 1,444 4.6% 5,566 4.1% Establishment and A&G Establishment 234 20.0% 814 (7.6%) QoQ +9.2% attributed to year-end accrued expense
Slide 10: Total Provisions
Total Provisions FY21 ECL was elevated QoQ by increased MEF & (RM 'mil) 4Q22 3Q22 Q-o-Q FY22 Y-o-Y BAU^ overlays, but significantly lower YoY from lower Covid-19 related provisions and MEF & Loan Impairment 722 488 48.0% 1,953 2,614 (25.3%) overlays Commitment & Commitments & contingencies -71.8% Yo
Slide 11: Loan Provisions/ECL
Loan Provisions/ECL +48.0% Q-o-Q -25.3% Y-o-Y 4Q22 loan provisions +48.0% mainly due to higher MEF & overlays in Malaysia and RM 'mil 2,614 Singapore, as well as higher underlying MEF & Overlay Commercial provisions in Indonesia and Malaysia 722 1,953 785 Covid-19 related 316 FY22 ECL reduced 25.3%
Slide 12: Asset Quality & Moratorium
Asset Quality & Moratorium Gross Loans Bonds Total exposure to Covid-19 impacted Covid-19 Impacted Sectors Sectors 31 Dec-22 31 Dec-22 sectors remains relatively stable Hospitality 1.1% 0.1% Malaysia Consumer Moratorium and R&R remained at 1% as at Dec-22 Retail 1.9% 0.1% compared to end Sep-22 Avia
Slide 13: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 31 Dec-22 Q-o-Q Y-o-Y Consumer Banking 213.9 1.1% 7.2% 89.9% 88.7% 88.4% Commercial Banking 65.6 (0.3%) 6.1% 87.2% 85.8% Wholesale Banking 127.6 (0.8%) 9.3% Total 407.1 0.3% 7.7% Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Others Loan Growth by Country (Y-o-Y) Sin
Slide 14: Deposits
Deposits CASA Ratio (RM 'bil) 31 Dec-22 Q-o-Q Y-o-Y 43.5% Consumer Banking 188.6 3.7% 7.3% 42.5% 42.3% 41.7% Commercial Banking 84.8 6.0% 11.6% 39.9% Wholesale Banking 187.2 (1.4%) (0.7%) Total Deposits 460.6 2.0% 4.6% Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Total CASA 183.6 (2.5%) (1.8%) WY Others Depos
Slide 15: Capital and Liquidity Management
Capital and Liquidity Management 17.6% 18.3% 18.5% 17.1% 16.8% CET1 remained steady at 14.5% as at end Total Capital 3.0% 2.9% 3.1% Dec-22, well above FY22 target of >13.0% 3.2% 2.8% 0.9% 0.8% Tier 2 1.1% 1.3% 1.5% On a QoQ basis, the 40bps improvement Tier 1 emanated from lower credit and market CE
Slide 16: Consumer Banking
Consumer Banking Personal (RM 'mil) 4Q22 Q-o-Q FY22 Y-o-Y Financing Others Credit Cards 2% 4% Net interest income 1,750 4.0% 6,658 9.7% 4% Non interest income 443 (14.5%) 2,026 4.2% Auto 12% Gross Loans Operating income 2,193 (0.3%) 8,684 8.3% RM213.9 bil Overhead expenses (1,292) 11.6% (4,663) 5.2%
Slide 17: Commercial Banking
Commercial Banking (RM 'mil) 4Q22 Q-o-Q FY22 Y-o-Y Others Singapore 4% 7% Net interest income 865 10.8% 3,112 7.1% Thailand Non interest income 163 0.0% 662 11.3% 2% Gross Loans Operating income 1,028 8.9% 3,774 7.8% RM65.6 bil Indonesia Overhead expenses (503) 15.4% (1,794) 2.0% 24% 6.1% Malaysia 6
Slide 18: Wholesale Banking
Wholesale Banking (RM 'mil) 4Q22 Q-o-Q FY22 Y-o-Y Others Singapore 1% Net interest income 839 (4.9%) 3,617 (3.3%) 18% Non interest income 579 45.1% 1,854 25.2% Thailand Gross Loans Operating income 1,418 10.7% 5,471 4.8% 8% RM127.6 bil Malaysia Overhead expenses (644) 23.4% (2,216) 9.9% 9.3% 54% PPO
Slide 19: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding 4Q22 FY22 Touch ‘n Go Digital (RM ‘mil) Q-o-Q Y-o-Y Total Registered Users Annual Transacting BAU* BAU* (mil) Users (mil) Net interest income 579 3.9% 1,771 42.9% +10.7% Y-o-Y +22.7% Y-o-Y Non interest income 10 (23.1%) 143 (63.8%) 18.6 9.2 Operating income 589 3.
Slide 20: CIMB Islamic
CIMB Islamic FY22 Islamic Financing (RM ‘mil) 4Q22 Q-o-Q Y-o-Y (RM 'bil) BAU* Net financing income 858 (3.3%) 3,362 14.2% +4.8% Q-o-Q +19.4% Y-o-Y Non financing income 109 (25.3%) 477 5.8% 125.9 120.1 Operating income 967 (6.4%) 3,839 13.1% Overhead expenses (364) 27.3% (1,251) 9.0% 105.4 PPOP 603 (
Slide 21: 02 Strategic Plan Forward 23+ Updates
02 Strategic Plan Forward 23+ Updates <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 21 21
Slide 22: Focus Areas for 2022
Focus Areas for 2022 Vision To be the leading focused ASEAN bank Strategic Themes @ Delivering |a) Reshape portfolio & Focused b) Digitise for value c) Drive cost efficiency Sustainable | investments Financial * Accelerate loan growth in * Address MOCA and * Implement IT Blueprint * Technology CAPEX
Slide 23: Positive momentum towards meeting our Forward23+ ambitions
Positive momentum towards meeting our Forward23+ ambitions Key Group Forward23+ Shareholder Value Creation Actual Metrics Ambition Annualised FBM CIMB TSR (%)* KLCI 2018 2019 2020 2021 2022 2024 BAU BAU BAU BAU 2022 11.7% -4.6% 9.6% 9.3% 10.2% From 31/5/20 23.1% -0.3% 2.1% 8.1% Top Quartile ROE 11.5
Slide 24: Asset Composition and Growth
Asset Composition and Growth Growth momentum continued to improve on areas we would like to invest Asset Composition Gross Loan Composition CDA and Year Consumer Commercial Wholesale Group Year Consumer Commercial Wholesale Funding Dec-19 33% 11% 43% 12% Dec-19 50% 18% 32% Dec-22 33%= 10%▼ 42% ▼ 15%
Slide 25: Structured Cost Take-out
Structured Cost Take-out Cumulative cost saving of RM1 billion achieved Evolution Analysis RM’mil FY21 Total Cost Cost Base(1) Decrease in cost Increase in cost (611) (195) (382) 9,386 8,775 8,938 9,225 9,386 8,748 FY19 Cost Savings FY20 Cost BAU FY21 Cost Normalised BAU FY22 FY24 Savings Spend Savi
Slide 26: Digital Reliability/Customer Centricity
Digital Reliability/Customer Centricity Metrics tracking well with continued momentum in digital transactions Clicks & Bizchannel Digital Platform Incidences Technology & Operational Investments % Availability No. Unscheduled Technology Capex Downtimes (RM’mil) Country FY22 Malaysia FY21 FY22 1,000
Slide 27: Sustainability: 2022 Achievements
Sustainability: 2022 Achievements Commitment 1: Commitment 3: Commitment 5: Climate Change Sustainable Finance Be a Sustainability Leader in Transitioning to Net Zero Expanding GSSIPs Commitments ASEAN • Established Scope 3 Financed Emissions • Mobilised RM27.8 bil in 2022 towards • Attained 80th pe
Slide 28: Forward23+ 2023 Strategic Plan
Forward23+ 2023 Strategic Plan 28
Slide 29: 03 Final Remarks
03 Final Remarks <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 29
Slide 30: Final Remarks
Final Remarks We met and exceeded all FY22 targets with a FY24 strong performance underlined by execution of FY22 FY23 Forward23+ Forward23+ initiatives which drove revenue growth BAU Targets Ambition as well as controlled costs and provisions Top quartile The Group is approaching 2023 with cautious
Slide 31: 04 Appendices
04 Appendices <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only>
Slide 32: Exceptional Items
Exceptional Items (RM 'mil) 4Q22 3Q22 2Q22 1Q22 FY22 4Q21 3Q21 2Q21 1Q21 FY21 PBT BAU 2,024 2,210 2,157 2,101 8,492 1,083 1,639 1,835 1,788 6,345 Gain on deconsolidation Touch ‘n Go - - - - - - - - 1,156 1,156 Digital Gain / Loss on dilution of interest on - - - - - - 2 - - 2 disposal of associates
Slide 33: Earnings Summary
Earnings Summary 4Q22 3Q22 FY22 FY21 4Q21 (RM ’mil) Q-o-Q Y-o-Y Y-o-Y BAU^ BAU^ BAU^ BAU^ BAU^ Net interest income 4,033 3,901 3.4% 15,158 13,958 8.6% 3,542 13.9% Non interest income 1,187 1,096 8.3% 4,680 4,414 6.0% 1,062 11.8% Operating income 5,220 4,997 4.5% 19,838 18,372 8.0% 4,604 13.4% Overhe
Slide 34: Key Ratios
Key Ratios 4Q22 3Q22 FY22 FY21 4Q21 (%) Q-o-Q Y-o-Y Y-o-Y BAU^ BAU^ BAU^ BAU^ BAU^ ROE ~ 9.5 10.7 ▼ 10.2 8.1 ▲ 5.5 ▲ Reported ROE 8.5 9.2 ▼ 9.0 7.5 ▲ 5.6 ▲ NIM ~* 2.57 2.55 ▲ 2.51 2.45 ▲ 2.41 ▲ Non-interest income / total income 22.7 21.9 ▲ 23.6 24.0 ▼ 23.1 ▼ Cost to income 47.5 45.5 ▲ 46.5 48.6 ▼ 5
Slide 35: NOII breakdown
NOII breakdown FY21 (RM ’mil) 4Q22 3Q22 Q-o-Q FY22 Y-o-Y BAU^ Fee & commission 666 627 6.2% 2,575 2,356 9.3% Brokerage 6 - 100.0% 7 2 250.0% Asset management and security services 7 6 16.7% 27 33 (18.2%) Trading & FX 466 413 12.8% 1,788 1,783 0.3% Dividend income 9 10 (10.0%) 51 60 (15.0%) Other inc
Slide 36: PBT by Segments
PBT by Segments 4Q22 3Q22 FY22 FY21 PBT (RM ’mil) Q-o-Q Y-o-Y BAU^ BAU^ BAU^ BAU^ Consumer Banking (32.4%) 483 784 (38.4%) 2,749 1,929 42.5% Commercial Banking (17.4%) 367 336 9.2% 1,476 1,072 37.7% Wholesale Banking (35.9%) 662 727 (8.9%) 3,049 2,475 23.2% Corporate Banking (20.5%) 409 440 (7.0%) 1
Slide 37: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 4Q22 3Q22 Q-o-Q FY22 FY21 Y-o-Y Malaysia (RM ’mil) 436 538 (19.0%) 1,941 1,411 37.6% Indonesia (IDR ’bil) 79 545 (85.5%) 1,429 574 149.0% Thailand (THB ’mil) 17 282 (94.0%) 1,685 2,210 (23.8%) Singapore (SGD ’mil) 3 11 (72.7%) 39 12 225.0% Others * (RM ’mi
Slide 38: 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 5.6% 1.5% Consumer Gross Loans 11.8% 1.3% Mortgages 7.6% 2.1% Mortgages 7.0% 0.5% Term loans (0.6%) (0.6%) Auto 35.3% 1.4% Auto 5.9% 1.1% Credit cards 4.8% 3.1% Credit cards 14.0% 7.5% Consumer Deposits 1
Slide 39: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Loan Exposure: Borrowers Status: 1.5% of total Group gross loans Impaired 22% Thailand Watch List (M & H) 8% 1% Singapore Normal 18% 77% Indonesia Segmental Exposure: 7% Oil Traders Malaysia 5% Upstream 67% 18% Downstream As at Dec-22, the O&G impairment ratio stood at 22.3%
Slide 40: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 4Q22 3Q22 Q-o-Q FY22 FY21 Y-o-Y Net interest income 3,502 3,436 1.9% 13,476 13,089 3.0% Non interest income 1,279 1,066 20.0% 5,390 4,479 20.3% Operating income 4,781 4,502 6.2% 18,866 17,568 7.4% Overhead expenses* (2,222) (2,069) 7.4% (8,473) (8,060) 5.1% P
Slide 41: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 4Q22 3Q22 Q-o-Q FY22 FY21 Y-o-Y ROE ^* 11.7 13.1 ▼ 12.6 10.7 ▲ NIM ^ 4.90 4.77 ▲ 4.69 4.86 ▼ Cost to Income* 46.5 46.0 ▲ 44.9 45.9 ▼ Loan Loss Coverage # 242.7 208.8 ▲ 242.7 211.6 ▲ Allowance Coverage 94.7 117.9 ▼ 94.7 108.4 ▼ Loan Loss Charge ^ 2.6 1.3 ▲ 1.
Slide 42: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 4Q22 3Q22 Q-o-Q FY22 FY21 Y-o-Y (THB 'mil) Net interest income 2,524 2,416 4.5% 9,605 9,951 (3.5%) Non interest income 520 1,188 (56.2%) 4,149 4,396 (5.6%) Operating income 3,044 3,604 (15.5%) 13,753 14,347 (4.1%) Overhead expenses (2,155) (1,942)
Slide 43: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 4Q22 3Q22 Q-o-Q FY22 FY21 Y-o-Y ROE ^ 2.3 6.2 ▼ 7.1 5.8 ▲ NIM ^ 2.64 2.61 ▲ 2.68 3.04 ▼ Cost to Income 70.8 53.9 ▲ 57.1 57.0 ▲ Loan Loss Coverage ** 114.6 113.6 ▲ 114.6 117.5 ▼ Loan Loss Charge ^ 1.0 1.3 ▼ 0.9 1.5 ▼ Gross NPL ratio ** 3.2 3.4 ▼ 3.2 3.7 ▼ ROA
Slide 44: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) FY22 FY21 FY22 FY21 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 21.6% 2 23.4% 2 DCM 6.2% 8 6.1% 9 Sukuk 22.3% 2 21.8% 2 M&A 2.8% 14 - - M&A 64.7% 1 - - Syndication ^ 3.5% 9 4.1% 6 Syndication ^ 17.2% 2 13.0% 2 IPO 2.6% 11 0.7%
Slide 45: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) FY22 FY21 FY22 FY21 Asia ASEAN Market Market Market Market Rank Rank (ex-Japan) * Rank Rank Share Share Share Share DCM 9.9% 1 11.7% 1 DCM 0.5% 40 0.6% 42 M&A 10.6% 8 - - M&A 2.1% 22 - - Syndication ^ 3.1% 11 2.3% 13 Syndication ^ 0.7% 33 0.4% 48 IPO 4.7% 6 1.4% 23 IP