Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — Q3 2024 Earnings Presentation
41 slides from Cimb Group Holdings Bhd's earnings presentation, Nov 28, 2024
Slide 1: Analyst Presentation 3Q24 Results
Analyst Presentation 3Q24 Results CIMB Group Holdings 28 November 2024 FORWARD Your Ambitions 1
Slide 2: 01 Overview
01 Overview <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 2
Slide 3: Key Highlights
Key Highlights Robust 3Q topline, +2.5% QoQ and +8.5% YoY; leveraging our ASEAN Continued cost efficiency with CIR portfolio whilst serving diverse client improving to 45.9%; Business remains segments resilient; Maintaining positive YoY JAW 3rd consecutive quarter of NIM banking Asset quality improv
Slide 4: Key Business Highlights
Key Business Highlights Solid topline growth driven by strong performance in Malaysia Maintained cost efficiency despite underlying inflationary & Singapore pressure (RM ‘mil) QoQ YoY (RM 'mil) 46.3% 45.9% +2.5% Q-o-Q +8.5% Y-o-Y Malaysia +7.9% +12.5% CIR 15,639 16,973 Indonesia (4.1%) (6.0%) +8.5%
Slide 5: PBT By Segment
PBT By Segment CIMB Digital Assets & Consumer PBT +7.6% QoQ as asset quality remains strong and Group Funding +1.8% YoY from robust wealth income and sustained NIM 14% Consumer Positive Commercial performance QoQ and YoY driven by Banking improved asset quality 9M24 30% Wholesale PBT was 13.6% lower
Slide 6: PBT By Country
PBT By Country Others Malaysia PBT growth underpinned by strong capital markets and Singapore 1% client franchise income coupled with NIM expansion from 14% focused liability management Thailand 9M24 Singapore performance remained strong in line with robust 3% 9M24 capital markets, wealth management
Slide 7: Operating Income
Operating Income NII grew 1.8% QoQ driven by 1bps NIM (RM 'mil) 3Q24 Q-o-Q 9M24 Y-o-Y expansion from lower funding cost; strong 6.0% YoY growth driven by asset growth Net interest income 3,930 1.8% 11,581 6.0% NIM banking book improved for the third consecutive quarter to 2.74% on better asset Non i
Slide 8: Non-Interest Income
Non-Interest Income NOII improved 4.0% QoQ underpinned by strong (RM ’mil) 3Q24 Q-o-Q 9M24 Y-o-Y capital markets and client franchise income Fee & commission 698 (2.1%) 2,088 11.3% 9M24 NOII grew strongly by 14.4% YoY from consumer fees, capital markets and client Trading & FX 1,020 12.0% 2,927 22.4
Slide 9: Operating Expenses
Operating Expenses Continued cost discipline maintained throughout (RM 'mil) 3Q24 Q-o-Q 9M24 Y-o-Y the Group with sustained investments in Technology Personnel 1,679 6.9% 4,819 10.3% Opex +3.8% QoQ on the back of higher catch-up Establishment 215 12.6% 611 (3.5%) expenses, while rising 7.7% YoY from
Slide 10: Total Provisions
Total Provisions Total provisions increased 14.7% QoQ (RM 'mil) 3Q24 2Q24 Q-o-Q 9M24 9M23 Y-o-Y mainly from conservative provisions and lower writeback in non-retail; Loan Impairment 250 316 (20.9%) 970 1,161 (16.5%) 9M24 total provisions decreased 3.9% Commitment & YoY mainly from higher recoveries
Slide 11: Asset Quality
Asset Quality Loan Loss Charge (bps) * 31 35 151 LLC improved 2bps QoQ from 21 20 lower provisions in Malaysia 18 73 45 51 32 25 Gross Impaired Loans Ratio (%) GIL improved 20bps QoQ from all 3.2 3.6 3.5 core countries 2.7 3.1 3.3 2.6 2.5 Continued focus on various 2.3 2.7 initiatives to further low
Slide 12: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 30 Sep-24 Q-o-Q Y-o-Y Consumer Banking 232.0 (0.2%) 3.3% 91.4% Commercial Banking 73.1 (0.1%) 4.9% Wholesale Banking 129.2 (5.3%) (4.5%) 88.6% 89.1% 88.1% 87.4% CIMB Digital Assets and Others 2.7 0.0% 22.7% Total 437.0 (1.8%) 1.2% Total on constant curren
Slide 13: Deposits
Deposits CASA Ratio (RM 'bil) 30 Sep-24 Q-o-Q Y-o-Y Consumer Banking 219.6 (2.6%) 2.6% 42.0% 41.2% 40.8% 40.9% Commercial Banking 90.8 (0.7%) 3.1% 39.2% Wholesale Banking 163.7 (7.5%) (11.1%) CIMB Digital Assets and Others 4.1 (24.1%) 2.5% Total Deposits 478.2 (4.2%) (2.4%) Total Deposits on constan
Slide 14: Capital and Liquidity Management
Capital and Liquidity Management CET1 increased by 50bps QoQ and 60bps YoY to 15.0% as end Sep-24 The QoQ increase is largely from a combination of higher 3Q24 net profits and lower total RWA LCR remains comfortably above 100% for all banking entities Liquidity Coverage Ratio 139% 136% CIMB Bank* 13
Slide 15: Consumer Banking
Consumer Banking Personal (RM 'mil) 3Q24 Q-o-Q 9M24 Y-o-Y Financing Others 3% 3% Credit Cards Net interest income 1,771 0.1% 5,260 5.6% 4% Non interest income 581 (1.2%) 1,755 13.2% Auto 13% Gross Loans Operating income 2,352 (0.3%) 7,015 7.4% RM232.0 bil Term 3.3% Overhead expenses (1,332) 3.5% (3,
Slide 16: Commercial Banking
Commercial Banking (RM 'mil) 3Q24 Q-o-Q 9M24 Y-o-Y Others Singapore 4% 8% Net interest income 854 3.8% 2,497 4.3% Thailand 1% Non interest income 224 15.5% 618 1.5% Indonesia Gross Loans Operating income 1,078 6.0% 3,115 3.7% 23% RM73.1 bil 4.9% Malaysia Overhead expenses (519) 1.6% (1,539) 8.2% 64%
Slide 17: Wholesale Banking
Wholesale Banking (RM 'mil) 3Q24 Q-o-Q 9M24 Y-o-Y Others 1% Singapore Net interest income 764 9.5% 2,126 3.0% 21% Non interest income 903 4.3% 2,732 20.4% Thailand Gross Loans Operating income 1,667 6.6% 4,858 12.1% RM129.2 bil Malaysia 9% 51% 4.5% Overhead expenses (615) (0.6%) (1,833) 8.1% PPOP 1,
Slide 18: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding Touch ‘n Go Digital (RM 'mil) 3Q24 Q-o-Q 9M24 Y-o-Y Total Registered Users Annual Transacting (mil) Users (mil) Net interest income 541 (4.8%) 1,698 14.5% +31.5% Y-o-Y +58.2% Y-o-Y Non interest income 104 9.5% 287 0.3% 28.4 17.4 Operating income 645 (2.7%) 1,985 1
Slide 19: CIMB Digital Businesses
CIMB Digital Businesses Improvement to Group ROE CIMB Philippines Revenue (bps) (PHP ‘mil) 61 bps 577.4 540.3 19 16 12 10 234.5 4 76.8 10.1 10.7 2020 2021 2022 2023 9M24 2019 2020 2021 2022 2023 9M24 Narrowing CDA losses have cumulatively contributed 61 bps to the Group’s ROE expansion since 2020 Im
Slide 20: CIMB Islamic
CIMB Islamic Islamic Financing (RM ‘mil) 3Q24 Q-o-Q 9M24 Y-o-Y (RM ‘bil) +1.7% Q-o-Q +11.4% Y-o-Y Net financing income 938 3.2% 2,704 12.9% Non financing income 153 (16.8%) 534 (2.4%) 149.2 151.8 136.3 Operating income 1,091 (0.2%) 3,238 10.1% Overhead expenses (367) 1.7% (1,077) 4.7% PPOP 724 (1.1%
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: Forward23+ Strategic Plan
Forward23+ Strategic Plan 22
Slide 23: Realising Forward23+ ambitions
Realising Forward23+ ambitions On track to meet our Forward23+ ambitions Key Group Forward23+ Shareholder Value Creation Actual Metrics Ambition Annualised FBM CIMB 2020 2021 2022 2023 9M24 2024 TSR (%)* KLCI BAU BAU 11.7% 9M24 +70.0% +17.8% 8.1% 10.2% 10.7% ROE 2.1% Top Quartile 11.5-12.5% 1Y +65.3
Slide 24: Asset Composition and Growth
Asset Composition and Growth Growth momentum continues to improve in core focus segments Country Year Consumer Commercial Wholesale Dec-19 59% 14% 27% Malaysia 2% ▲ 2% ▲ 4% ▼ Sep-24 61% 16% 23% Dec-19 25% 14% 61% Singapore 8% ▲ 2% ▼ 6% ▼ Sep-24 33% 12% 55% Dec-19 27% 35% 38% Indonesia 6% ▲ 6% ▼ 2% ▲
Slide 25: Digital Reliability/Customer Centricity
Digital Reliability/Customer Centricity Platform availability maintained above target in 9M24 Committed to Clicks & Bizchannel Digital Platform Incidences strengthening resiliency and % Availability No. Unscheduled maintaining Country Malaysia Downtimes FY24 uptime FY20 FY21 FY22 FY23 9M24 FY20 FY21
Slide 26: Sustainability Updates
Sustainability Updates Accelerating impact Sustainable finance Advancing towards through financial target surpassed ahead Net Zero inclusion and literacy of schedule Disbursed over RM27 bil in loans to Mobilised RM105.8 bil1 in Green, 2030 decarbonisation targets set for oil Malaysia’s lower income
Slide 27: 03 Final Remarks
03 Final Remarks 27
Slide 28: Final Remarks
Final Remarks FY24 FY24 Continue to monitor macroeconomic backdrop 9M24 Target Guidance and external uncertainties Remain nimble with our deposit-led and client- ROE* 11.7% 11.0-11.5% 11.0-11.5% profitability strategies, continued focus on efficiency and resiliency Dividend Payout 55%^ 55% 55% Ratio
Slide 29: 04 Appendices
04 Appendices <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only>
Slide 30: Earnings Summary
Earnings Summary (RM ’mil) 3Q24 2Q24 Q-o-Q 9M24 9M23 Y-o-Y 3Q23 Y-o-Y Net interest income 3,930 3,859 1.8% 11,581 10,925 6.0% 3,757 4.6% Non interest income 1,812 1,743 4.0% 5,392 4,714 14.4% 1,551 16.8% Operating income 5,742 5,602 2.5% 16,973 15,639 8.5% 5,308 8.2% Overhead expenses (2,671) (2,573
Slide 31: Key Ratios
Key Ratios (%) 3Q24 2Q24 Q-o-Q 9M24 9M23 Y-o-Y 3Q23 Y-o-Y ROE ~ 12.0 11.5 ▲ 11.7 10.7 ▲ 10.9 ▲ NIM ~* 2.23 2.22 ▲ 2.21 2.25 ▼ 2.25 ▼ NIM banking book ~* 2.75 2.72 ▲ 2.72 2.69 ▲ 2.74 ▲ Non-interest income / total income 31.6 31.1 ▲ 31.8 30.1 ▲ 29.2 ▲ Cost to income 46.5 45.9 ▲ 45.9 46.3 ▼ 46.9 ▼ Allo
Slide 32: NOII breakdown
NOII breakdown (RM ’mil) 3Q24 2Q24 Q-o-Q 9M24 9M23 Y-o-Y Fee & commission 698 713 (2.1%) 2,088 1,876 11.3% Brokerage 16 11 45.5% 35 1 3400.0% Asset management and security services 6 5 20.0% 16 17 (5.9%) Trading & FX 1,020 911 12.0% 2,927 2,392 22.4% Dividend income 25 72 (65.3%) 106 55 92.7% Other
Slide 33: PBT by Segments
PBT by Segments PBT (RM ’mil) 3Q24 2Q24 Q-o-Q 9M24 9M23 Y-o-Y Consumer Banking (29.5%) 902 838 7.6% 2,369 2,326 1.8% Commercial Banking (18.9%) 529 418 26.6% 1,522 1,328 14.6% Wholesale Banking (37.4%) 931 1,077 (13.6%) 3,000 2,368 26.7% Corporate Banking (20.2%) 402 639 (37.1%) 1,619 1,387 16.7% Tr
Slide 34: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 3Q24 2Q24 Q-o-Q 9M24 9M23 Y-o-Y Malaysia (RM ’mil) 676 524 29.0% 1,571 1,607 (2.2%) Indonesia (IDR ’bil) 810 910 (11.0%) 2,410 1,912 26.0% Thailand (THB ’mil) (405) (161) (151.6%) (535) 327 (263.6%) Singapore (SGD ’mil) 12 17 (29.4%) 39 24 62.5% Others * (
Slide 35: Consumer Banking Key Highlights
Consumer Banking Key Highlights Malaysia Q-o-Q Y-o-Y Indonesia ^ Q-o-Q Y-o-Y Consumer Gross Loans 1.4% 5.5% Consumer Gross Loans 0.8% 5.4% Mortgages 1.5% 7.3% Mortgages (1.0%) (0.6%) Term loans (1.0%) (15.9%) Auto 7.0% 18.2% Auto 1.2% 7.8% Credit cards (0.0%) 8.1% Credit cards 3.1% 7.8% Consumer Dep
Slide 36: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 3Q24 2Q24 Q-o-Q 9M24 9M23 Y-o-Y Net interest income 3,352 3,371 (0.5%) 10,008 10,187 (1.8%) Non interest income 1,448 1,414 2.4% 4,376 4,320 1.3% Operating income 4,800 4,785 0.3% 14,384 14,507 (0.8%) Overhead expenses (2,066) (2,074) (0.4%) (6,275) (6,414) (
Slide 37: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 3Q24 2Q24 Q-o-Q 9M24 9M23 Y-o-Y ROE ^ 14.3 15.2 ▼ 14.6 15.4 ▼ NIM ^ 4.07 4.22 ▼ 4.16 4.52 ▲ Cost to Income 43.0 43.3 ▼ 43.6 44.2 ▼ Loan Loss Coverage # 260.1 253.1 ▲ 260.1 267.1 ▼ Allowance Coverage 116.1 113.4 ▲ 116.1 108.8 ▲ Loan Loss Charge ^ 0.99 0.96 ▲
Slide 38: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 3Q24 2Q24 Q-o-Q 9M24 9M23 Y-o-Y (THB 'mil) Net interest income 2,509 2,422 3.6% 7,249 7,355 (1.5%) Non interest income 1,238 1,091 13.4% 3,537 2,967 19.2% Operating income 3,747 3,513 6.7% 10,786 10,322 4.5% Overhead expenses (2,211) (2,152) 2.7%
Slide 39: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 3Q24 2Q24 Q-o-Q 9M24 9M23 Y-o-Y ROE ^ 4.8 5.6 ▼ 5.2 5.0 ▲ NIM ^ 2.3 2.3 ▼ 2.3 2.6 ▼ Cost to Income 59.0 61.3 ▼ 61.0 60.6 ▲ Loan Loss Coverage ** 136.6 129.1 ▲ 136.6 111.3 ▲ Loan Loss Charge ^ 1.2 0.9 ▲ 1.0 1.0 = Gross NPL ratio ** 2.6 2.9 ▼ 2.6 3.2 ▼ ROA 0.4
Slide 40: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 9M24 9M23 9M24 9M23 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 31.2% 1 27.0% 1 DCM 5.0% 8 6.3% 8 Sukuk 33.3% 1 28.8% 1 M&A - - - - M&A 34.8% 3 41.4% 1 Syndication ^ 1.9% 14 2.5% 11 Syndication ^ 10.9% 4 10.9% 3 IPO - - - - IPO
Slide 41: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 9M24 9M23 9M24 9M23 Asia ASEAN Market Market Market Market Rank Rank (ex-Japan) * Rank Rank Share Share Share Share DCM 12.9% 1 12.9% 1 DCM 0.5% 46 0.6% 42 M&A 6.0% 14 2.1% 15 M&A 1.2% 26 0.6% 34 Syndication ^ 1.9% 14 2.1% 16 Syndication ^ 0.5% 44 0.5% 43 IPO 24.7% 1
CIMB Group Holdings Berhad — Q3 2024 Earnings Presentation on 6ix