Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — H1 2014 Earnings Presentation
70 slides from Cimb Group Holdings Bhd's earnings presentation, Aug 29, 2014
Slide 1: Analyst Presentation 1H14 Results
Analyst Presentation 1H14 Results 29 August 2014
Slide 2: Agenda
Agenda 1. Key Highlights 2. CIMB Group 1H14 Financials 3. PBT by Segment 3.1 Regional Consumer Banking 3.2 Regional Wholesale Banking 3.3 Investments 4. Country Analysis 5. Other Highlights 6. 2014 Key Priorities & Financial Targets 7. Final Remarks 2
Slide 3: 1. Key Highlights
CIMB Group : 1H14 Results 1. Key Highlights
Slide 4: 1H14 Highlights
1H14 Highlights ROE at 12.2% vs 13.5-14.0% target BAU net profit -2.8% Y-o-Y. Excluding Indonesia, the rest of the Group net profit grew by 5.2% Indonesia Y-o-Y contribution fell 9.4% (IDR) or 20.1% (RM) Continued reduction in operating expenses Decent gross loans growth of +8.5% Y-o-Y (+11.3% exclu
Slide 5: Key Financial Highlights (1)
Key Financial Highlights (1) Operating Income Net Profit +1.0% Actual: -6.0% Y-o-Y Y-o-Y1 -2.8% Actual: -17.4% Y-o-Y Y-o-Y1,2,3 1H14 1H131,2,3 1H14 1H131 RM2,016 mil RM2,075 mil RM6,945 mil RM6,875 mil ROE Cost to Income -200bps Actual: -440bps Y-o-Y Y-o-Y1,2,3 -120bps Actual: +20bps Y-o-Y Y-o-Y1,2
Slide 6: Key Financial Highlights (2)
Key Financial Highlights (2) Gross Loans Deposits +8.5% Y-o-Y Excluding FX fluctuations: +11.3% Y-o-Y +4.8% Y-o-Y Excluding FX fluctuations: +7.8% Y-o-Y Jun-14 Jun-14 Jun-13 Jun-13 RM237.8 bil RM271.2 bil RM219.1 bil RM258.8 bil NIM Gross Impaired Loans Ratio Flat Y-o-Y -50bps Y-o-Y 1H13 Jun-13 1H14
Slide 7: PBT By Division
PBT By Division 70% Contribution from Consumer and Corporate Banking 1H14 1H13* Investment Investment Banking Banking Investments 0% Investments 4% 11% 9% Treasury & Markets Consumer Treasury & Consumer 19% Banking Markets Banking 44% 19% 42% Corporate Corporate Banking Banking 26% 26% 1H14 PBT Y-o-
Slide 8: PBT By Country
PBT By Country TH & SG Good Traction 1H14* 1H13*~ Singapore Others Singapore Others -1% -1% Thailand 6% Thailand 5% 4% 4% Indonesia Indonesia 26% 31% Malaysia Malaysia 61% 65% 1H14 PBT Y-o-Y Growth by Key Countries *~ ^ 0% -20.1% +5.2% +13.2% * Excluding HQ costs, mainly comprising of funding costs
Slide 9: PBT Y-o-Y by Key Entities
PBT Y-o-Y by Key Entities Change (RM ’mil) 1H14 1H13 1H13 BAU* % RM ‘mil CIMB Bank Group 2,096 1,722 1,922 174 9.1% CIMB Niaga 734 916 916 (182) (19.8%) IB Group + CSI + Principal (57) (10) (10) (47) 470% Others* (61) 477 (38) (23) (60.5%) PBT 2,712 3,105 2,790 (78) (2.8%) Net profit 2,016 2,440 2,0
Slide 10: 2. CIMB Group 1H14 Financials
CIMB Group : 1H14 Results 2. CIMB Group 1H14 Financials
Slide 11: Quarterly Earnings Trend
Quarterly Earnings Trend Private Placement 16.8% 16.8% 15.5% 14.1% 14.0% 14.1% 13.8% 13.0% 10.7% 3,797 3,544 3,430 3,445 3,485 3,538 3,326 3,369 3,407 1,470 1,496 1,403 1,387 1,386 1,431 1,371 1,358 1,281 1,109 1,143 1,082 1,021 1,054 1,062 1,038 1,066 950 2Q12 3Q12 4Q12 1Q13~ 2Q13 3Q13 4Q13 1Q14 2Q
Slide 12: Earnings Summary
Earnings Summary 1H13 Y-o-Y (RM ‘mil) 1H14 1H13 2Q14 1Q14 Q-o-Q BAU* BAU Net interest income 4,902 4,606 4,606 6.4% 2,499 2,403 4.0% Non interest income 2,043 2,784 2,269 (10.0%) 908 1,135 (20.0%) Operating income 6,945 7,390 6,875 1.0% 3,407 3,538 (3.7%) Overhead expenses (4,019) (4,262) (4,062) (1
Slide 13: Key Ratios
Key Ratios 1H13 Y-o-Y (%) 1H14 1H13 2Q14 1Q14 Q-o-Q BAU * BAU ROE ^ 12.2 16.6 14.2 10.7 13.0 NIM ^** 2.88 2.88 2.88 2.90 2.85 Non-interest income / total income 29.4 37.7 33.0 26.7 32.1 Cost to income 57.9 57.7 59.1 58.9 56.8 Allowance coverage 79.2 82.1 82.1 79.2 83.8 Allowance coverage after regul
Slide 14: Operating Expenses
Operating Expenses (RM ‘mil) 1H14 1H13 Y-o-Y 2Q14 1Q14 Q-o-Q Personnel 2,258 2,376 (5.0%) 1,122 1,136 (1.2%) Establishment 938 912 2.9% 469 470 (0.2%) Marketing 174 193 (9.8%) 88 86 2.3% Admin & General 649 781 (16.9%) 329 319 3.1% Total 4,019 4,262 (5.7%) 2,008 2,011 (0.1%) Total excluding One-off
Slide 15: Gross Loans Growth
Gross Loans Growth 52% of banking book from RFS Loans by Country as at 30 Jun 14 # Divisions / Products (RM ‘bil) 30 Jun 14 30 Jun 13 Y-o-Y 31 Mar 14 Q-o-Q Others Singapore 5% Retail Financial Services (51.9%) 123.4 110.4 11.8% 120.5 2.4% 8% Thailand Mortgages 58.6 53.5 9.5% 57.5 1.9% 8% Term Loans
Slide 16: Deposits Growth
Deposits Growth Deposits by Country as at 30 Jun 14 Divisions / Products (RM ‘bil) 30 Jun 14 30 Jun 13 Y-o-Y 31 Mar 14 Q-o-Q Others Singapore 6% Retail Financial Services (39.0%) 105.7 102.8 2.8% 107.7 (1.9%) 9% Thailand Current 18.2 17.0 7.1% 18.2 - 6% Savings 29.9 28.9 3.5% 30.4 (1.6%) Fixed & Str
Slide 17: CASA Growth
CASA Growth CASA by Country as at 30 Jun 14 Country (RM ‘bil) 30 Jun 14 30 Jun 13 Y-o-Y 31 Mar 14 Q-o-Q Singapore Others Malaysia 56.5 52.9 6.8% 57.1 (1.1%) 11% 1% Thailand Indonesia ** 20.5 21.5 (4.7%) 20.8 (1.4%) 5% Thailand 4.1 4.0 2.5% 4.3 (4.7%) Indonesia Singapore 10.9 9.1 19.8% 10.7 1.9% 22%
Slide 18: AFS MTM (Q-o-Q) Position
AFS MTM (Q-o-Q) Position 291.3 (15.6) (42.7) (66.5) (4.6) Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 18
Slide 19: Capital Management – CIMB Group
Capital Management – CIMB Group 2014 Minimum # * Regulatory 14.8% 14.7% 14.0% ^ 13.7% Requirements # * ^ 11.1% 11.0% Total Capital 8.0% 10.0% 9.7% ^ 9.6% # 9.5% * Tier 1 5.5% 8.2% 8.0% Core Equity Tier 1 4.0% Sep-13 Dec-13 Mar-14 Jun-14 Post FY14 1st interim dividend of 10.00 sen and its expected co
Slide 20: 3. PBT by Segment
CIMB Group : 1H14 Results 3. PBT by Segment
Slide 21: PBT by Segment (Estimated)
PBT by Segment (Estimated) Malaysia consumer accounts for 79% of regional consumer PBT PBT (RM ’mil) 1H14 1H13 Y-o-Y 2Q14 1Q14 Q-o-Q Consumer Banking (43.9%) 1,190 1,173 1.4% 597 593 0.7% Malaysia (34.7%) 939 873 7.6% 489 450 8.7% Indonesia (7.3%) 199 305 (34.8%) 80 119 (32.8%) Thailand (0.3%) 9 (4)
Slide 22: 3.1 Regional Consumer Banking
CIMB Group : 1H14 Results 3.1 Regional Consumer Banking
Slide 23: Malaysia : Consumer Banking
Malaysia : Consumer Banking (RM ’mil) 1H14 1H13 Y-o-Y 2Q14 1Q14 Q-o-Q Net interest income 1,782 1,675 6.4% 893 889 0.4% Non interest income 524 473 10.8% 277 247 12.1% Operating income 2,306 2,148 7.4% 1,170 1,136 3.0% Overhead expenses (1,336) (1,380) (3.2%) (664) (672) (1.2%) PPOP 970 768 26.3% 50
Slide 24: Malaysia : Consumer Gross Loans and Deposits
Malaysia : Consumer Gross Loans and Deposits Consumer Gross Loans (RM ‘bil) 30 Jun 14 30 Jun 13 Y-o-Y 31 Mar 14 Q-o-Q Retail Financial Services (89.8%) 94.9 83.1 14.2% 92.2 2.9% Mortgages 44.1 40.0 10.3% 43.0 2.6% Term loans 24.6 20.0 23.0% 23.9 2.9% Auto 13.1 12.1 8.3% 12.7 3.1% Credit cards 4.4 3.
Slide 25: Malaysia : Consumer Key Highlights (1)
Malaysia : Consumer Key Highlights (1) Jun-14 Jun-13 Mortgages – Loan Base Mkt Mkt RM ‘bil Rank* Rank Share Share +10.3% Y-o-Y Retail CASA 11.9% 3 12.0% 3 +2.6% Q-o-Q Auto 8.0% 5 7.6% 5 44.1 43.0 Residential 12.5% 3 12.8% 3 40.0 Mortgages Non-Residential 10.7% 3 10.7% 3 Mortgages Jun-13 Mar-14 Jun-1
Slide 26: Malaysia : Consumer Key Highlights (2)
Malaysia : Consumer Key Highlights (2) Credit Cards Debit Cards RM ‘bil 3.8 2.5 2.7 3.4 3.6 1.9 +12.8% Y-o-Y +86.1% Y-o-Y +4.8% Q-o-Q +13.1% Q-o-Q 4.4 495.3 4.2 437.8 3.9 266.2 Jun-13 Mar-14 Jum-14 Jun-13 Mar-14 Jun-14 Loan Base Quarterly Spending Quarterly Spending (RM 'mil) Cards Base ('mil) Wealt
Slide 27: Indonesia : Consumer Gross Loans and Deposits
Indonesia : Consumer Gross Loans and Deposits Consumer Gross Loans (IDR ’bil) 30 Jun 14 30 Jun 13 Y-o-Y 31 Mar 14 Q-o-Q Retail Financial Services (40.8%) 47,953 46,624 2.9% 47,382 1.2% Mortgage 22,260 21,780 2.2% 22,141 0.5% Auto 17,966 18,555 (3.2%) 17,995 (0.2%) Credit Cards 4,501 3,582 25.7% 4,12
Slide 28: Indonesia : Consumer Key Highlights
Indonesia : Consumer Key Highlights Jun-14 Jun-13 Consumer CASA Mkt Mkt IDR ‘tril Rank Rank +11.1 Y-o-Y Share Share +4.1% Q-o-Q Deposits 4.3%* 5* 4.4% 5 63.9 61.4 57.5 Mortgages 7.3%* 5* 8.4% 5 Credit Cards ~ 11.1% 4 10.7% 4 Jun-13 Mar-14 Jun-14 Mortgage – Loan Base Credit Card – Loan Base IDR ‘tril
Slide 29: Thailand : Consumer Gross Loans and Deposits
Thailand : Consumer Gross Loans and Deposits Consumer Gross Loans (THB ‘bil) 30 Jun 14 30 Jun 13 Y-o-Y 31 Mar 14 Q-o-Q Retail Financial Services (62.9%) 77.4 57.6 34.3% 73.3 5.6% Mortgage 49.5 36.0 37.6% 45.8 7.9% Auto Loans 18.3 14.0 30.4% 18.1 1.3% Personal / Others 9.6 7.7 25.9% 9.4 2.9% Commerci
Slide 30: Thailand : Consumer Key Highlights
Thailand : Consumer Key Highlights Jun-14 Jun-13 Mortgage Loans Mkt Mkt THB ‘bil Rank Rank Share Share +37.6% Y-o-Y Deposits 1.5% 10 1.4% 11 +7.9% Q-o-Q 49.5 Mortgages 2.1%* 9* 1.8% 9 45.8 Auto 1.0%* 9* 0.7% 9 36.0 SME Loans 2.1% 7 1.9% 7 Jun-13 Mar-14 Jun-14 Consumer Deposits Consumer Loans THB ‘bi
Slide 31: Singapore : Consumer Gross Loans and Deposits
Singapore : Consumer Gross Loans and Deposits Consumer Gross Loans (SGD ‘mil) 30 Jun 14 30 Jun 13 Y-o-Y 31 Mar 14 Q-o-Q Retail Financial Services (45.6%) 2,418 1,893 27.7% 2,236 8.1% Mortgages 1,585 1,387 14.3% 1,541 2.9% Term loans 177 151 17.2% 176 0.6% Credit cards 425 308 38.0% 399 6.5% Others 2
Slide 32: Singapore : Consumer Key Highlights
Singapore : Consumer Key Highlights Consumer PBT Consumer Deposits SGD ‘mil SGD ‘mil +33.5% Y-o-Y +ve Y-o-Y +3.9% Q-o-Q +100.0 Q-o-Q 6,905 6,643 15 5,172 2,156 2,362 10 1,379 5 3,793 4,487 4,543 (1) 1H13 1H14 1Q14 2Q14 Jun-13 Mar-14 Jun-14 Retail deposits Commercial deposits Retail Loan Base Commerc
Slide 33: 3.2 Regional Wholesale Banking
CIMB Group : 1H14 Results 3.2 Regional Wholesale Banking
Slide 34: ASEAN Equity Markets, ECM and M&A Activities
ASEAN Equity Markets, ECM and M&A Activities Equity Indices Performance MSCI SEA Traded Value USD ‘bil -21.3% Y-o-Y 120 110 263 211 207 100 90 80 70 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 1H12 1H13 1H14 MXSO Index FBMKLCI Index JCI Index FSSTI Index SET Index Industry ASEAN M&A Industry ASEAN ECM USD ‘m
Slide 35: Markets : Muted from Low Volatility
Markets : Muted from Low Volatility Volatility Index (180D) Underlying Assets 1H14 1H13 Chicago Board of Options SPX Volatility Index Options 99% 120% US Treasury 10 Year Yield Bond 23% 36% MSCI World Index Equity 8% 11% EURUSD Currency Forex 5% 7% USD SWAP Semi 30/360 10Y Interest Rate Swap 22% 35%
Slide 36: Wholesale Banking
Wholesale Banking (RM ’mil) 1H14 1H13 Y-o-Y 2Q14 1Q14 Q-o-Q Net interest income 1,463 1,416 3.3% 771 692 11.4% Non interest income 976 1,036 (5.8%) 365 611 (40.3%) Operating income 2,439 2,452 (0.5%) 1,136 1,303 (12.8%) Overhead expenses (1,206) (1,077) 12.0% (581) (625) (7.0%) PPOP 1,233 1,375 (10.
Slide 37: Wholesale Banking : Investment Banking
Wholesale Banking : Investment Banking (RM ’mil) 1H14 1H13 Y-o-Y 2Q14 1Q14 Q-o-Q Net interest income 34 36 (5.6%) 18 16 12.5% Non interest income 500 517 (3.3%) 234 266 (12.0%) Operating income 534 553 (3.4%) 252 282 (10.6%) Overhead expenses (517) (413) 25.2% (241) (276) (12.7%) PPOP 17 140 (87.9%)
Slide 38: Wholesale Banking : Corporate Banking
Wholesale Banking : Corporate Banking (RM ’mil) 1H14 1H13 Y-o-Y 2Q14 1Q14 Q-o-Q Net interest income 805 810 (0.6%) 404 401 0.7% Non interest income 323 299 8.0% 118 205 (42.4%) Operating income 1,128 1,109 1.7% 522 606 (13.9%) Overhead expenses (419) (403) 4.0% (211) (208) 1.4% PPOP 709 706 0.4% 311
Slide 39: Corporate Banking : Gross Loans
Corporate Banking : Gross Loans Country 30 Jun 14 30 Jun 13 Y-o-Y 31 Mar 14 Q-o-Q Malaysia (RM ‘bil) 30.2 34.3 (12.0%) 32.1 (5.9%) Indonesia (IDR ‘bil) 47,091 42,168 11.7% 47,744 (1.4%) Thailand (THB ‘bil) 51.0 51.0 - 50.7 0.7% Singapore (SGD ‘bil) 4.7 3.5 35.7% 4.6 2.2% Others* (RM ‘bil) 10.7 8.7 2
Slide 40: Corporate Banking : Deposits
Corporate Banking : Deposits Country 30 Jun 14 30 Jun 13 Y-o-Y 31 Mar 14 Q-o-Q Malaysia (RM ’bil) 80.6 75.4 6.9% 73.4 9.8% Indonesia (IDR ’bil) 34,490 29,098 18.5% 32,833 5.0% Thailand (THB ’bil) 50.3 45.7 10.3% 41.7 20.8% Singapore (SGD ’bil) 2.5 2.6 (4.0%) 2.6 (4.3%) Others* (RM ’bil) 14.4 11.6 24
Slide 41: Wholesale Banking : Treasury & Markets
Wholesale Banking : Treasury & Markets (RM ’mil) 1H14 1H13 Y-o-Y 2Q14 1Q14 Q-o-Q Net interest income 624 570 9.5% 349 275 26.9% Non interest income 153 220 (30.5%) 13 140 (90.7%) Operating income 777 790 (1.6%) 362 415 (12.8%) Overhead expenses (270) (261) 3.4% (129) (141) (8.5%) PPOP 507 529 (4.2%)
Slide 42: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 1H14 1H13 1H14 1H13 Market Market Market Market Rank Rank Rank Rank Share Share Share Share Cash Equities 11.0% 1 11.8% 1 Cash Equities 4.4% 4 6.9% 1 IPO 10.6% 4 23.1% 1 IPO - - - - ECM 25.1% 1 28.3% 2 ECM - - 13.9% 3 EQL Products - - - - EQL Products - - - - M&A 19.0
Slide 43: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 1H14 1H13 1H14 1H13 APAC ASEAN Market Market Market Market Rank Rank (ex-Japan) * Rank Rank Share Share Share Share Cash Equities 7.2% 2 6.7% 2 IPO 2.4% 11 2.8% 12 IPO 5.4% 5 5.4% 7 ECM 2.2% 11 2.4% 11 ECM 11.1% 1 7.2% 4 EQL Products - - 1.6% 15 EQL Products - - 2.7%
Slide 44: Notable Deals
Notable Deals DCM ECM IJM Corporation Berhad Wintek Corporation RM3.0 bil Sukuk Murabahah Programme USD66.0 mil Global Depositary Receipts KLCC Real Estate Investment Trust MANARA Manara Malaysia I Limited RM3.0 bil Sukuk Murabahah Programme via MALAYSIA I LIMITED RM90.6 mil placement of AirAsia X B
Slide 45: Group Asset Management
Group Asset Management PBT (RM ’mil) 1H14 1H13 Y-o-Y 2Q14 1Q14 Q-o-Q CIMB-P Group 41.4 32.1 29.0% 19.8 21.6 (8.3%) Wholesale 8.3 9.4 (11.7%) 4.5 3.8 18.4% Total 49.7 41.5 19.8% 24.3 25.4 (4.3%) Proposed acquisition of Finansa Asset Management Limited by CIMB-Principal for a cash consideration of THB
Slide 46: 3.3 Investments
CIMB Group : 1H14 Results 3.3 Investments
Slide 47: Investments
Investments 1H13 Y-o-Y (RM ’mil) 1H14 1H13 2Q14 1Q14 Q-o-Q BAU* BAU Net interest income 417 258 258 61.6% 212 205 3.4% Non interest income 79 813 298 (73.5%) 29 50 (42.0%) Total income 496 1,071 556 (10.8%) 241 255 (5.5%) Overhead expenses (264) (651) (451) 41.5% (139) (125) 11.2% PPOP 232 420 105 1
Slide 48: Strategic Investments
Strategic Investments RM ’mil 1H14 1H13 Y-o-Y 2Q14 1Q14 Q-o-Q PAT to CIMB Group 65.5 42.7 53.4% 32.4 33.1 (2.1%) 1H14 vs 1H13: Better interest income arising from higher loans growth and fixed income investments 19.99% RM ’mil 1H14 1H13 Y-o-Y 2Q14 1Q14 Q-o-Q PAT to CIMB Group 5.7 7.2 (20.8%) 1.9 3.8
Slide 49: 4. Country Analysis
CIMB Group : 1H14 Results 4. Country Analysis
Slide 50: Indonesia : Tough Year
Indonesia : Tough Year CIMB Niaga PBT Non Interest Income IDR ‘bil IDR ‘bil -9.1% Y-o-Y -5.9% Y-o-Y 2,900 -22.0% Q-o-Q -23.3% Q-o-Q 2,636 1,605 1,511 1,481 855 1,155 656 1H13 1H14 1Q14 2Q14 1H13 1H14 1Q14 2Q14 Gross Loans Asset Quality IDR ‘tril % +9.1% Y-o-Y 98.3% +2.3% Q-o-Q 82.0% 66.1% 164.7 161.
Slide 51: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR ’bil) 1H14 1H13 Y-o-Y 2Q14 1Q14 Q-o-Q Net interest income 5,113 4,915 4.0% 2,588 2,525 2.5% Non interest income 1,511 1,605 (5.9%) 656 855 (23.3%) Operating income 6,624 6,520 1.6% 3,244 3,380 (4.1%) Overhead expenses (3,422) (3,150) 8.6% (1,724) (1,698) 1.5% PPOP
Slide 52: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 1H14 1H13 Y-o-Y 2Q14 1Q14 Q-o-Q ROE ^ 14.5 18.2 12.4 16.7 NIM ^ 5.2 5.3 5.3 5.22 Cost to Income 51.7 48.3 53.1 50.2 Loan Loss Coverage # 86.5 112.9 86.5 98.8 Allowance Coverage 66.1 98.3 66.1 82.0 Loan Loss Charge ^ 0.7 0.6 0.9 0.5 Gross Impaired Loans Ratio
Slide 53: Thailand : Banking Improving
Thailand : Banking Improving CIMB Thai’s PBT Securities PBT THB ‘mil THB ‘mil -85.8% Y-o-Y +19.9% Y-o-Y -57.4% Q-o-Q 251 785 655 102 +ve% Q-o-Q 551 90 234 655 683 50 461 12 36 222 (15) 1H13 1H14 1Q14 2Q14 1H13 1H14 1Q14 2Q14 Core PBT Non Core PBT Total Deposits Gross Loans THB ‘bil THB ‘bil +14.1% Y
Slide 54: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 1H14 1H13 Y-o-Y 2Q14 1Q14 Q-o-Q (THB ’mil) Net interest income 3,770 3,031 24.4% 1,915 1,855 3.2% Non interest income 1,363 1,011 34.8% 520 843 (38.4%) Operating income 5,133 4,042 27.0% 2,435 2,698 (9.8%) Overhead expenses (3,440) (2,898) 18.7% (
Slide 55: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 1H14 1H13 Y-o-Y 2Q14 1Q14 Q-o-Q ROE ^ 5.6 5.2 3.3 8.0 NIM ^ 3.35 3.22 3.44 3.27 Cost to Income 67.0 71.7 72.4 62.2 Loan Loss Coverage ** 100.8 83.1 100.8 100.6 Loan Loss Charge ^ 1.0 0.7 1.0 1.1 Gross NPL ratio ** 3.1 2.8 3.1 3.1 Net NPL ratio ** 1.8 1.9 1.8
Slide 56: Singapore : Strong Banking, Weak Stockbroking
Singapore : Strong Banking, Weak Stockbroking CIMB Bank PBT Securities PBT SGD ‘mil SGD ’mil +58.2% Y-o-Y -ve% Y-o-Y 60.9 +5.1% Q-o-Q 14.3 38.5 29.7 31.2 +75.0% Q-o-Q (2.0) (1.6) (0.4) 1H13 1H14 1Q14 2Q14 1H13 1H14 1Q14 2Q14 Gross Loans Total Deposits SGD ‘mil +20.8% Y-o-Y +50.5% Y-o-Y +1.6% Q-o-Q +
Slide 57: 5. Other Highlights
CIMB Group : 1H14 Results 5. Other Highlights
Slide 58: Banca & Insurance
Banca & Insurance PBT (RM ’mil) 1H14 1H13 Y-o-Y 2Q14 1Q14 Q-o-Q CIMB Sun Life (1.8) (6.7) 73.3% - (1.8) n.a. Others* 3.2 4.5 (28.4%) 1.5 1.7 (16.7%) Total CIG & GID 1.4 (2.3) n.a. 1.5 (0.1) n.a. Banca Income (RM ’mil) Y-o-Y Malaysia 16.3% Indonesia (36.8%) Thailand 31.6% Singapore 70.5% Total (19.6%
Slide 59: Malaysia : CIMB Islamic
Malaysia : CIMB Islamic Ranking of Total Islamic Assets as at 31 Mar 2014 1H14 1H13 Sukuk Total Assets Market Market Market Rank Company Rank Rank RM ’mil Share Share Share 1 Maybank Islamic 126,514 29% Malaysia 31.2% 1 17.0% 3 2 CIMB Islamic 48,868 11% Global 13.3% 2 6.9% 4 3 Bank Islam 41,937 10%
Slide 60: Leadership Transition & Potential Merger
Leadership Transition & Potential Merger Leadership Transition Plan Proposed CIMB, RHB and MBSB Merger Plan Effective 1 September 2014 Announced on 10 July 2014 with BNM approval for all three parties to commence discussions with the Tan Sri Md Nor Yusof will retire from the Board of aim of: Directo
Slide 61: CIMB Thai + AIS Collaboration
CIMB Thai + AIS Collaboration Signed MOU on 21 Aug-14, CIMB Thai and AIS will collaborate to develop a suite of new banking solutions on mobile phones named ‘Beat Banking’, expected to be officially launched in 4Q14 The first product to be launched in 4Q14 will be an electronic deposit account where
Slide 62: 6. 2014 Key Priorities & Outlook
CIMB Group : 1H14 Results 6. 2014 Key Priorities & Outlook
Slide 63: 2H14 Outlook by Business & Countries
2H14 Outlook by Business & Countries 2H14 Business Segment Outlook 2H14 Country Outlook Regional Consumer Banking Investment Banking Regional Corporate Banking Treasury & Markets Investments 63
Slide 64: Targets for 2014
Targets for 2014 1H14 Y-o-Y FY14 ROE 12.2% 1 13.5-14.0% TSR 4.9% < FBMKLCI 3 > FBMKLCI Dividend 41% 3 40% Total Loans Growth * 8.5% (11.3%~) 14% Loan Loss Charge 0.21% 1 35-40bps Total Capital (CIMB Group) ^ 14.7% 2 > 13% CET 1 (CIMB Group) ^ 9.5% 2 > 8.5% Leverage (CIMB Group) ^ 16.6x 2 < 20x Notes
Slide 65: 8. Final Remarks
CIMB Group : 1H14 Results 8. Final Remarks
Slide 66: Final Remarks
Final Remarks Mediocre first half due to the drop in CIMB Niaga’s contribution and weak capital markets volumes and volatility Net interest income set to grow well but non interest income will depend on capital markets. Franchise is well positioned for market recovery Outlook for Malaysia is steady
Slide 67: Thank You
THANK YOU 67
Slide 68: Appendices
Appendices ba CIMB
Slide 69: Consolidated Balance Sheet Changes
Consolidated Balance Sheet Changes (RM ‘mil) 30 Jun 14 30 Jun 13 Y-o-Y 31 Mar 14 Q-o-Q Cash & short term funds 35,666 32,317 10% 30,955 15% Securities purchased under resale agreements 4,466 9,529 (53%) 4,623 (3%) Deposits & placements with financial institutions 3,425 6,734 (49%) 4,823 (29%) Financ
Slide 70: Asset Quality Ratios – CIMB Group
Asset Quality Ratios – CIMB Group 84.0% 82.3% 84.8% 83.8% 82.3% 82.6% 82.1% 82.2% 80.0% 81.1% 81.3% 80.0% 79.2% 84.3% 83.7% 80.4% 82.2% 82.8% 81.9% 81.7% 81.7% 82.6% 80.7% 81.1% 79.5% 77.4% 5.7% 5.5% 5.1% 4.5% 4.8% 4.4% 4.4% 4.1% 4.2% 3.9% 3.8% 3.8% 3.6% 3.6% 3.4% 3.5% 3.2% 3.1% 3.1% 3.2% 3.1% 3.0%
CIMB Group Holdings Berhad — H1 2014 Earnings Presentation on 6ix