Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — Q1 2011 Earnings Presentation
57 slides from Cimb Group Holdings Bhd's earnings presentation, May 25, 2011
Slide 1: CIMB Group Holdings Berhad 1Q11 Results
CIMB GROUP HOLDINGS BERHAD THREE MONTHS 2011 RESULTS CIMB GROUP HOLDINGS BERHAD 1Q11 RESULTS Analyst Presentation 25 May 2011
Slide 2: Key Highlights
Key Highlights 1Q11 net profit up 9.4% Y-o-Y to RM917 mil, ROE of 15.7% Decline in non interest income due to large bond sales and redemptions in 1Q10 Strong performance by Malaysian Consumer Bank Strong operating performance at CIMB Niaga 13.4% loan growth, 12.8% deposit growth but 21.5%
Slide 3: CIMB Group 1Q11 Financials
CIMB GROUP : 1Q11 RESULTS CIMB GROUP 1Q11 FINANCIALS
Slide 4: Earnings Summary
Earnings Summary (RM ’mil) 1Q11 4Q10 Q-o-Q 1Q10 Y-o-Y Net interest income 1,899 1,937 (2.0%) 1,830 3.8% Non interest income 851 1,232 (30.9%) 958 (11.2%) Operating income 2,750 3,169 (13.2%) 2,788 (1.3%) Loan impairment (6) (168) (96.4%) (150) (96.0%) Other provisions 2 (12) n.a. (24) n.a. Overhead
Slide 5: Quarterly Earnings Trend
Quarterly Earnings Trend Series break due to adoption of FRS 139 3,169 2,979 2,788 2,876 2,737 2,731 2,750 2,471 2,544 17.2% 17.0% 16.2% 16.5% 15.1% 15.4% 15.7% 14.4% 14.9% 1,185 1,185 1,148 1,233 1,094 1,129 1,001 916 839 879 803 838 889 878 917 663 727 614 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1
Slide 6: Contribution by Entity
Contribution by Entity 1Q11 4Q10 1Q10 Legal Entity RM ’mil % of PBT RM ’mil % of PBT RM ’mil % of PBT CIMB Bank 673 55% 424 37% 568 50% CIMB Niaga 336 27% 394 34% 423 37% CIMB Thai 37 3% (14) (1%) 6 1% CIMB Cambodia (2) 0% (2) (0%) - - CIMB Labuan 12 1% 29 2% 42 4% CIMB Islamic 146 12% 125 11% 80 7%
Slide 7: Contribution by Geography
Contribution by Geography 1Q11 Others Thailand 3% Singapore 4% 2% Indonesia 28% Malaysia 63% 4Q10 1Q10 Others Others Thailand 4% Thailand 13% -1% Singapore 1% 3% Singapore Indonesia 6% 35% Indonesia 38% Malaysia Malaysia 54% 47% 7
Slide 8: Estimated PBT By Segment
Estimated PBT By Segment PBT 1Q11 4Q10 Q-o-Q 1Q10 Y-o-Y RM ’mil RM ’mil % RM ’mil % Consumer Banking - Good Bank 287 111 158.6% 196 46.4% - Bad Bank (including 56 29 93.1% (9) n.a. SEASAM) 343 140 145.0% 187 83.4% Corporate & Investment Banking 243 384 (36.8%) 214 13.6% Treasury & Investments 253 21
Slide 9: Estimated PBT By Segment
Estimated PBT By Segment 1Q11 CIMB Thai 3% Consumer CIMB Niaga Banking 27% 27% GAM & Insurance 2% Corporate & Treasury & Inv Banking Investments 20% 21% 4Q10 1Q10 Consumer CIMB Thai CIMB Thai Consumer Banking 1% -1% Banking 12% 17% CIMB Niaga 34% CIMB Niaga 37% Corporate & Inv Corporate & Banking In
Slide 10: Consolidated Balance Sheet Changes
Consolidated Balance Sheet Changes (RM ‘mil) 31 Mar 11 31 Dec 10 Q-o-Q 31 Mar 10 Y-o-Y Cash & short term funds 24,660 27,185 (9%) 25,852 (5%) Securities purchased under resale agreements 2,634 3,805 (31%) 3,980 (34%) Deposits & placements with financial institutions 10,522 11,746 (10%) 11,784 (11%)
Slide 11: AFS MTM Position
AFS MTM Position (RM ’mil) 783.5 624.0 542.9 522.2 474.7 426.3 1st Jan 10 * Mar 10 June 10 Sept 10 Dec 10 Mar 11 Note: * Opening balances adjusted for FRS 139 11
Slide 12: Key Ratios
Key Ratios (%) 1Q11 4Q10 Q-o-Q 1Q10 Y-o-Y ROE * 15.7 14.9 5.4% 16.5 (5.2%) NIM * 3.08 3.22 (4.3%) 3.33 (7.7%) Non-interest income / total income 31.0 38.9 (20.4%) 34.4 (9.9%) Cost / income 56.2 59.3 (5.2%) 54.1 3.8% Allowance coverage 80.6 81.1 (0.7%) 80.5 0.1% Allowance coverage after regulatory re
Slide 13: Gross Loans Growth
Gross Loans Growth 31 Mar 11 31 Dec 10 31 Mar 10 Divisions / Products Q-o-Q Y-o-Y (RM ’bil) (RM ’bil) (RM ’bil) Consumer Banking (48.1%) 83.0 81.0 2.4% 72.4 14.6% Mortgages 36.8 35.4 3.7% 31.0 18.5% HP 10.6 10.6 - 9.7 # 8.7% OD and TL 16.2 15.7 3.1% 14.2 14.0% Credit cards 4.2 4.3 (1.5%) 3.4 23.0% C
Slide 14: Deposits Growth
Deposits Growth 31 Mar 11 31 Dec 10 31 Mar 10 Divisions / Products Q-o-Q Y-o-Y (RM ’bil) (RM ’bil) (RM ’bil) # Retail (29.8%) * 59.9 56.5 6.0% 50.5 18.7% - Current 16.0 15.2 5.3% 11.5 39.6% - Savings 12.1 11.5 5.2% 10.6 14.2% - Fixed & structured deposits 31.8 29.8 6.7% 28.4 12.0% Commercial (7.9%)
Slide 15: Loan Assets by Geography
Loan Assets by Geography Mar-11 Mar-10 Singapore Others Singapore Others RM8.3 bil RM2.5bil RM2.8 bil RM3.4 bil 5% 1% Thailand 2% Thailand 2% RM10.9 bil ^ RM9.4 bil 6% 6% Indonesia RM31.6 bil Indonesia 21% RM39.8 bil 23% Malaysia RM110.9 bil Malaysia 65% RM104.3 bil 69% Notes: Others include oversea
Slide 16: Asset Quality Ratios – CIMBG
Asset Quality Ratios – CIMBG Series break due to adoption of FRS 139 90.8% 88.1% 86.8% 86.7% 85.6% 82.9% 82.0% 82.3% 80.0% 80.8% 78.5% 79.1% 75.8% 73.2% 80.6% 80.5% 81.1% 80.6% 78.4% 79.3% 7.6% 7.5% 7.1% 7.2% 6.5% 6.6% 6.1% 6.1% 5.6% 5.7% 5.9% 5.6% 5.5% 5.7% 5.5% 4.9% 5.0% 4.7% 4.5% 5.0% 3.6% 3.2% 3
Slide 17: Capital Management – CIMB Bank
Capital Management – CIMB Bank 15.1% 15.0% 15.0% RWCR 14.8% 14.4% ^ 13.9% 14.0% Core 14.8% 14.2% 14.2% Capital 14.0% 13.9% ^ Ratio 13.4% RWA (RM’mil) 107,141 100,436 102,544 107,739 101,905 106,377 110,353 10.8% Series Series break break due to due to FRS 139 Basel 2 adoption adoption Operational Ri
Slide 18: Capital Management
Capital Management CIMB Group Mar-11 Dec-10 Gearing ratio 21.2% 17.8% Double leverage ratio 118.0% 113.8% Mar-11+ Dec-10^ Mar-10+ Core Capital Ratio (B2) (B2) (B1) CIMB Bank 13.4%* 13.9% 14.2% CIMB Investment Bank 17.5% 16.5% 15.9% CIMB Islamic 11.9% 13.2% 5.6% CIMB Niaga # 11.0% 9.5% 10.9% CIMB Tha
Slide 19: CIMBG: Operating Expenses
CIMBG : Operating Expenses (RM ’mil) 1Q11 4Q10 Q-o-Q 1Q10 Y-o-Y Personnel 823 918 (10.3%) 783 5.1% Establishment 341 393 (13.2%) 360 (5.3%) Marketing 63 99 (36.4%) 71 (11.3%) Admin & General 318 468 (32.1%) 295 7.8% Total 1,545 1,878 (17.7%) 1,509 2.4% 19
Slide 20: Consumer Bank
CIMB GROUP : 1Q11 RESULTS CONSUMER BANK
Slide 21: Malaysian Consumer Bank Financials
Malaysian Consumer Bank Financials (RM ’mil) 1Q11 4Q10 Q-o-Q 1Q10 Y-o-Y Net interest / financing income 779 769 1.4% 671 16.1% Non interest income 216 243 (11.5%) 213 1.4% Total income 995 1,012 (1.7%) 884 12.6% Overheads (direct + head office (700) (812) (13.8%) (638) 9.7% allocation) Provisions 44
Slide 22: Malaysian Consumer Good Bank Financials
Malaysian Consumer Good Bank Financials (RM ’mil) 1Q11 4Q10 Q-o-Q 1Q10 Y-o-Y Net interest / financing income 763 758 0.7% 665 14.7% Non interest income 214 243 (11.9%) 213 0.5% Total income 977 1,001 (2.4%) 878 11.3% Overheads (direct + head office (651) (760) (14.3%) (593) 9.8% allocation) Loan imp
Slide 23: Malaysian Consumer Banking Indicators (1)
Malaysian Consumer Banking Indicators (1) Malaysia FY09 FY10 Market Market Rank Rank Share Share Deposits 9.1% 3 10.1% 3 Residential Mortgages 13.5% 2 13.9% 2 Non Residential Mortgages 13.0% 2 12.7% 2 Credit Cards 11.2% 3 12.9% 3 HP 9.4% 4 8.1% 4 SME Loans 8.9% 4 8.4% 4 Retail Financial Services Dep
Slide 24: Malaysian Consumer Banking Indicators (2)
Malaysian Consumer Banking Indicators (2) Credit Cards – Loan Base (RM ’mil) CIMB Express – Loan Base (RM ’mil) 986 118 3,974 927 3,898 886 72 94 44 11 3,690 833 1,874 3,538 810 1,140 1,184 1,278 1,323 309 315 320 310 3,319 317 128 100 78 59 44 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Mar-10 Jun-10 Sep-10
Slide 25: Singapore Consumer Banking Indicators
Singapore Consumer Banking Indicators Retail Deposits (SGD ’mil) Home Loan Outstanding (SGD ’mil) 2,224 1,039 2,021 1,913 771 1,714 488 1,523 309 177 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Retail Customer Base* Credit Cards 26,314 88,779 76,251 22,764 62,748 133 124 18
Slide 26: Treasury & Investment Banking
CIMB GROUP : 1Q11 RESULTS TREASURY & INVESTMENT BANKING
Slide 27: Treasury and Investment Financials
Treasury and Investment Financials (RM ’mil) 1Q11 4Q10 Q-o-Q 1Q10 Y-o-Y Net interest / financing income 162 200 (19.0%) 193 (16.1%) Fee income 2 2 - 5 (60.0%) Net trading income 84 8 >1000.0% 127 (34.6%) Total income 248 210 18.6% 325 (24.0%) Provision - - - 3 (100.0%) Overheads (92) (91) (2.2%) (75
Slide 28: Corporate & Investment Banking Financials
Corporate & Investment Banking Financials (RM ’mil) 1Q11 4Q10 Q-o-Q 1Q10 Y-o-Y Net interest / financing income 192 195 (1.5%) 221 (13.1%) Fee & commission income 129 349 (63.0%) 90 43.3% Net trading income 33 57 (42.1%) 20 64.9% Brokerage income 89 98 (9.2%) 78 13.9% Total income 443 699 (36.7%) 409
Slide 29: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) Malaysia 3M10 3M11 Indonesia 3M10 3M11 Market Market Market Market Rank Rank Rank Rank Share Share Share Share Stock Broking 9.5% 1 10.1% 1 Stock Broking 6.1% 2 4.4% 5 IPO 46.9% 1 - - IPO - - - - ECM 21.5% 2 51.8% 1 ECM 9.0% 3 3.5% 9 M&A 40.2% 2 31.7% 1 M&A 9.4% 4 - -
Slide 30: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 3M10 3M11 ASEAN Market Share Rank Market Share Rank IPO 10.2% 4 6.9% 14 ECM 9.3% 2 5.2% 5 M&A 10.4% 4 6.8% 10 Syndication - - - - Bonds - Domestic Currency * 7.4% 6 13.5% 2 Sources: Dealogic, Bloomberg, Thomson Reuters, Local Stock Exchanges and internal data Notes: *
Slide 31: Notable Deals
Notable Deals ECM DCM Malaysia Smelting Corporation SGD43.8 mil secondary listing on the Main Pembinaan BLT Sdn Bhd Board of SGX-ST RM10.0 bil Islamic Medium Term Notes First ever secondary listing of a Bursa Programme Securities-listed company on the SGX Sri Trang Agro-Industry pcl SGD336.0 mil sec
Slide 32: Asset Management & Insurance
CIMB GROUP : 1Q11 RESULTS ASSET MANAGEMENT & INSURANCE
Slide 33: Group Asset Management & Insurance
Group Asset Management & Insurance PBT (after HOCA) 1Q11 4Q10 Q-o-Q 1Q10 Y-o-Y (RM ’mil) CIMB-P Group 17 14 21.4% 13 30.8% Wholesale (2) (1) 100.0% 3 n.a. Insurance 1 7 (85.7%) (12) n.a. Securities Services 5 5 - 4 25.0% Total 21 25 (16.0%) 8 162.5% AUM (RM ’mil) 32,235 +27% Y-o-Y 32,912 25,461 3,00
Slide 34: CIMB Niaga
CIMB GROUP : 1Q11 RESULTS CIMB NIAGA
Slide 35: CIMB Niaga: Earnings Summary
CIMB Niaga: Earnings Summary (IDR ’bil) 1Q11 4Q10 Q-o-Q 1Q10 Y-o-Y Net Interest Income 1,876 1,942 (3.4%) 1,665 12.7% Non Interest Income 573 448 27.9% 299 92.3% Operating Income 2,449 2,390 2.5% 1,964 24.7% Overhead Expenses (1,255) (1,163) 7.9% (1,017) 23.4% Pre Provision Operating Profit 1,194 1,
Slide 36: CIMB Niaga: Balance Sheet Changes
CIMB Niaga : Balance Sheet Changes (IDR ’bil) 31 Mar 11 31 Dec 10 Q-o-Q 31 Mar 10 Y-o-Y Placements & Other MS 25,783 26,422 (2.4%) 20,361 26.6% Government Bonds 7,162 6,640 7.9% 5,031 42.4% Loans 106,631 101,610 4.9% 80,732 32.1% Other Assets 9,474 8,981 5.5% 8,467 11.9% Total Assets 149,050 143,653
Slide 37: CIMB Niaga: Gross Loans Growth
CIMB Niaga : Gross Loans Growth 31 Mar 11 31 Dec 10 31 Mar 10 Products / Divisions Q-o-Q Y-o-Y (IDR ’bil) (IDR ’bil) (IDR ’bil) Retail Banking (31.2%) 34,341 32,790 4.7% 25,918 32.5% Credit Cards 2,170 2,059 5.4% 1,405 54.4% Auto Loans 14,577 13,869 5.1% 10,073 44.7% Mortgage 16,162 15,465 4.5% 12,9
Slide 38: CIMB Niaga: Deposits Growth
CIMB Niaga : Deposits Growth 31 Mar 11 31 Dec 10 31 Mar 10 Divisions / Products Q-o-Q Y-o-Y (IDR ’bil) (IDR ’bil) (IDR ’bil) Retail Banking (48.5%) 58,441 54,288 7.6% 44,698 30.7% - Current 4,014 3,668 9.4% 3,164 26.9% - Savings 29,804 23,315 27.8% 19,256 54.8% - Fixed & structured deposits 24,623 2
Slide 39: CIMB Niaga: Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 1Q11 4Q10 Q-o-Q 1Q10 Y-o-Y ROE 19.3 22.5 (14.4%) 18.3 5.5% NIM 5.5 6.1 (10.3%) 6.7 (17.6%) Cost to Income 51.3 48.7 5.3% 51.8 (1.1%) Loan Loss Coverage*# 107.4 122.0 (11.9%) 116.0 (7.3%) Allowance Coverage* 82.9 82.5 0.5% 80.5 3.0% Loan Loss Charge* 0.7 0.9
Slide 40: CIMB Niaga: Corporate Updates
CIMB Niaga : Corporate Updates Consumer Market Share Corporate Updates Indonesia 3M10 3M11 Divestment Completed the 20% share sales of PT Market Market of CIGNA Rank Rank Asuransi Cigna on 22 Mar 2011 Share Share Deposits 4.7% 5 5.3% 5 Mortgages 10.2% 3 10.2% 3 Right Issue Completed the issuance of
Slide 41: CIMB Thai
CIMB GROUP : 1Q11 RESULTS CIMB THAI
Slide 42: CIMB Thai: Earnings Summary
CIMB Thai : Earnings Summary (Baht ’mil) 1Q11 4Q10 Q-o-Q 1Q10 Y-o-Y (Before GAAP Adjustments) Net Interest Income 1,130 1,119 1.0% 1,034 9.3% Non Interest Income 460 431 6.7% 636 (27.7%) Operating Income 1,590 1,550 2.6% 1,670 (4.8%) Overhead Expenses (1,232) (1,327) (7.2%) (1,183) 4.1% Pre Provisio
Slide 43: CIMB Thai: Balance Sheet Changes
CIMB Thai : Balance Sheet Changes (Baht ’mil) 31 Dec 10 31 Mar 10 31 Mar 11 Q-o-Q Y-o-Y (Before GAAP Adjustments) Restated Restated Placements & Other MS 13,370 21,925 (39.0%) 12,770 4.7% Government Bonds (Net) 14,769 14,801 (0.2%) 13,231 11.6% Loans (Net) 95,346 91,403 4.3% 79,917 19.3% Other Asset
Slide 44: CIMB Thai: Loans Growth by Segment
CIMB Thai : Loans Growth by Segment 31 Mar 11 31 Dec 10 31 Mar 10 Products / Divisions Q-o-Q Y-o-Y (THB ’bil) (THB ’bil) (THB ’bil) Retail Banking (35.8%) 35.0 32.7 7.0% 27.2 28.7% Auto Loans 6.8 5.8 17.2% 4.2 61.9% Mortgage 22.3 20.9 6.7% 16.6 34.3% Personal / Others 5.9 6.0 (1.7%) 6.4 (7.8%) Corpo
Slide 45: CIMB Thai: Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 1Q11 4Q10 Q-o-Q 1Q10 Y-o-Y ROE 9.9 (2.2) n.a. 17.3 (42.6%) NIM 3.7 3.6 2.8% 3.8 (2.6%) Cost to Income 77.5 85.6 (9.5%) 70.8 9.5% Loan Loss Coverage** 98.4 91.4 7.7% 53.6 83.6% Loan Loss Charge 0.3 1.3 (76.9%) 0.8 (62.5%) Gross NPL ratio** 2.7 2.7 0.0% 10.2 (7
Slide 46: CIMB Thai: Corporate Updates
CIMB Thai : Corporate Updates Consumer Market Share Corporate Updates Thailand 3M10 3M11 Market Market Rank Rank Share Share Deposits 1.3% 11 1.2% 11 Mortgages 0.7% 11 0.9% 11 HP 0.4% 17 0.4% 17 Opened 2 new branches in March - Phratumnak Pattaya Branch and Amorini Branch (Ramindra Road) SME Loans
Slide 47: Other Highlights
CIMB GROUP : 1Q11 RESULTS OTHER HIGHLIGHTS
Slide 48: CIMB Islamic
CIMB Islamic Ranking of Total Islamic Assets as at 31 Dec 2010 3M10 3M11 Market share Market and ranking Market Market Total Assets Rank Rank Share Share Share Rank Company RM ’mil % Sukuk 1 MIBB 47,513 18.4 - Malaysia 38.9% 2 31.8% 1 2 CIMB Islamic 36,038 13.9 - Global 23.5% 1 22.3% 2 3 Bank Islam
Slide 49: Bank of Yingkou
Bank of Yingkou 1Q11 4Q10 Q-o-Q 1Q10 Y-o-Y Operating income (RMB mil) 445 393 13.2% 232 91.8% Net profit (RMB ‘mil) 234 113 107.1% 103 127.2% PAT to CIMB Group (RM ‘mil) 21.7 10.5 106.7% 10.2 112.7% ROE (%) 35.2 18.2 93.4% 19.5 80.5% NIM (%) 4.2 4.3 (2.3%) 3.8 10.5% Allowance coverage (%) 378.0 331.
Slide 50: Touch 'n Go – Earnings Summary
Touch ‘n Go – Earnings Summary (RM ’mil) 1Q11 4Q10 Q-o-Q 1Q10 Y-o-Y Revenue 25 31 (19.4%) 23 8.7% Cost 18 24 (25.0%) 18 - PBT 7 7 - 5 40.0% PAT 5 5 - 4 25.0% PAT to CIMB Group 3 3 - 1 200.0% Transaction Value and Cardbase (RM’mil) 7.7 7.3 7.0 6.7 6.4 566.4 569.4 552.7 538.0 452.9 1Q10 2Q10 3Q10 4Q10
Slide 51: Key 2011 Priorities Round-Up
Key 2011 Priorities Round-Up Priorities Updates Taskforce and governance in place Regional CASA Drive Strong CASA growth YTD across MIST Committees formed regionally and in MIST Cost Management Quick-wins being implemented. Each SBU identifying cost management initiatives to achieve CI targe
Slide 52: Notable Awards 2010
Notable Awards 2010 1 1 1 Deal of the Year - AIA IPO Top Asian Investment Bank Award Best Malaysia Deal - Pet Chem IPO Best Domestic IB and Equity House (Msia) Bank of the year 2010 – Malaysia Best Private Equity Deal - Khazanah- Best Deal Malaysia - GoM USD Sukuk Cash Management - Indonesia Parkway
Slide 53: Closing Remarks
CIMB GROUP : 1Q11 RESULTS CLOSING REMARKS
Slide 54: Targets for 2011
Targets for 2011 1Q11 Y-o-Y 2011 Targets On Track ROE 15.7%* 17% r TSR < 15.4% vs FBM KLCI* > FBM KLCI r Dividend - 40% - 60% Group loans growth 14% 18% r Group deposits growth 13% 20% r Loan loss charge 0.01%* 0.4% 9 Tier 1 (at CIMB Bank) (Basel II) 13.4%^ >10% 9 RWCR (at CIMB Bank) (Basel II) 14.4
Slide 55: Thank You
THANK YOU 55
Slide 56: Appendix
CIMB GROUP : 1Q11 RESULTS APPENDIX
Slide 57: CIMB Group: Estimated PBT By Segment
CIMB Group : Estimated PBT By Segment PBT 4Q10 3Q10 2Q10 1Q10 (after HOCA) RM ’mil RM ’mil RM ’mil RM ’mil Consumer Banking - Good Bank 111 177 180 196 - Bad Bank (including 29 40 50 (9) SEASAM) 140 217 230 187 Corporate & Investment Banking 384 226 246 214 Treasury & Investments 219 331 256 291 GAM
CIMB Group Holdings Berhad — Q1 2011 Earnings Presentation on 6ix