Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — Q1 2023 Earnings Presentation
42 slides from Cimb Group Holdings Bhd's earnings presentation, May 31, 2023
Slide 1: Analyst Presentation 1Q23 Results
Analyst Presentation 1Q23 Results CIMB Group Holdings 31 May 2023 FORWARD Your Ambitions 1
Slide 2: 01 Overview
01 Overview 2
Slide 3: Key Highlights
Key Highlights Solid operating Robust NOII growth Cost remains under 1Q23 provisions Strong 1Q23 net income growth of offset by muted NII control, CIR contained with LLC profit growth with 5.5% YoY improved to 46.9% at 37bps ROE of 10.3% Operating income rose 5.5% YoY underpinned by robust Total pro
Slide 4: Key Business/Operational Highlights
Key Business/Operational Highlights Operating income +5.5% YoY from robust NOII and loan Provisions remain on track growth, offset by NIM compression NOII (RM 'mil) 0.70% Loan Loss 0.34% 0.37% 5,220 4,997 4,997 Charge 4,736 744 NII 4,033 3,522 3,522 Total 445 3,549 424 Provisions NOII (RM ‘mil) 1,18
Slide 5: PBT By Segment
PBT By Segment CIMB Digital Assets & Consumer PBT grew strongly QoQ by 43.0% from lower Group Funding provisions in Malaysia and Indonesia, but weakened YoY due to 14% muted topline and higher expenses Consumer Banking Strong Commercial performance underpinned by robust NOII and 1Q23 lower Malaysia
Slide 6: PBT By Country
PBT By Country Others Malaysia PBT improved YoY from higher NOII and lower Singapore -0.4% provisions, but was -1.1% QoQ from weaker NII 6% Thailand Strong Indonesia performance QoQ underpinned by NOII from 5% gains on sale of impaired loans, while YoY +25.8% from higher NII 1Q23 and lower provision
Slide 7: Operating Income
Operating Income NII -12.7% QoQ and flat YoY largely due (RM 'mil) 1Q23 Q-o-Q Y-o-Y to NIM compression in Malaysia offset by strong loan growth of 1.5% QoQ and Net interest income 3,522 (12.7%) (0.8%) 7.4% YoY NOII +24.3% YoY and QoQ driven by Non interest income 1,475 24.3% 24.3% markedly improved
Slide 8: Operating Expenses
Operating Expenses Opex declined by 5.6% QoQ due to (RM 'mil) 1Q23 Q-o-Q Y-o-Y absence of year-end expenses accrual Personnel 1,395 0.1% 2.7% Opex rose 5.4% YoY from higher expenses from general inflationary Establishment 207 (11.5%) 6.7% impact Technology 375 (5.1%) 3.6% Nevertheless, CIR improved
Slide 9: Total Provisions
Total Provisions Total ECL significantly lower QoQ largely from (RM 'mil) 1Q23 4Q22 Q-o-Q 1Q22 Y-o-Y writeback of overlays, but slightly higher YoY from underlying provisions and absence of Loan Impairment 306 722 (57.6%) 287 6.6% writebacks from Singapore Commitment & Contingencies 78 (8) 1,075.0%
Slide 10: Loan Provisions/ECL
Loan Provisions/ECL Loan provisions declined by 57.6% QoQ -57.6% Q-o-Q +6.6% Y-o-Y largely due to write back of overlays in RM 'mil Malaysia and Indonesia MEF & Overlay 722 YoY rose 6.6% due to higher underlying Covid-19 related 306 237 provisions from Consumer and absence of Underlying 287 3 115 wr
Slide 11: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 31 Mar-23 Q-o-Q Y-o-Y Consumer Banking 215.9 0.9% 6.4% 89.9% 88.7% 88.4% 88.3% Commercial Banking 66.7 1.7% 6.2% 87.2% Wholesale Banking 130.6 2.4% 9.8% Total 413.2 1.5% 7.4% Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 ~ Loan Growth by Country (Y-o-Y) Others Singa
Slide 12: Deposits
Deposits CASA Ratio (RM 'bil) 31 Mar-23 Q-o-Q Y-o-Y Consumer Banking 201.0 6.6% 14.1% 42.5% 41.3% 39.9% Commercial Banking 84.6 (0.2%) 8.9% 37.9% Wholesale Banking 182.3 (2.6%) (2.6%) Total Deposits 467.9 1.6% 6.1% Dec-20 Dec-21 Dec-22 Mar-23 Total CASA 177.2 (3.5%) (7.6%) WY Deposit Growth by Count
Slide 13: Capital and Liquidity Management
Capital and Liquidity Management CET1 was 20bps lower YoY and QoQ Total Capital 18.3% 18.5% 18.0% at 14.3% as at Mar-23 Tier 2 2.8% 3.1% 2.9% The slight dip is attributable to higher 0.9% 0.8% 0.8% one-off credit and market RWA, Tier 1 partially offset by 1Q23 net profit, CET1 lower FVOCI losses and
Slide 14: Consumer Banking
Consumer Banking Personal (RM 'mil) 1Q23 Q-o-Q Y-o-Y Financing Others 3% Credit Cards 3% Net interest income 1,571 (10.2%) (1.4%) 4% Auto Non interest income 533 19.2% 1.5% 12% Gross Loans Operating income 2,104 (4.2%) (0.7%) RM215.9 bil Term 6.4% Overhead expenses (1,186) (8.3%) 9.4% Loans Mortgage
Slide 15: Commercial Banking
Commercial Banking (RM 'mil) 1Q23 Q-o-Q Y-o-Y Others Singapore 4% 7% Net interest income 774 (10.5%) 7.6% Thailand 2% Non interest income 209 29.0% 26.7% Gross Loans Operating income 983 (4.3%) 11.2% Indonesia RM66.7 bil 24% 6.2% Malaysia Overhead expenses (458) (9.1%) 3.6% 63% PPOP 525 0.4% 18.8% (
Slide 16: Wholesale Banking
Wholesale Banking (RM 'mil) 1Q23 Q-o-Q Y-o-Y Others 2% Singapore Net interest income 738 (12.0%) (20.8%) 18% Non interest income 672 15.7% 51.4% Thailand Gross Loans Operating income 1,410 (0.7%) 2.5% 9% RM130.6 bil Malaysia 53% 9.8% Overhead expenses (557) (13.8%) 6.9% PPOP 853 10.2% (0.2%) Indones
Slide 17: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding Touch ‘n Go Digital (RM ‘mil) 1Q23 Q-o-Q Y-o-Y Total Registered Users Annual Transacting (mil) Users (mil) Net interest income 439 (24.2%) 44.4% +11.6% Y-o-Y +17.3% Y-o-Y Non interest income 61 >1,000% 15.1% 19.3 9.5 Operating income 500 (13.2%) 40.1% Overhead exp
Slide 18: CIMB Islamic
CIMB Islamic Islamic Financing (RM ‘mil) 1Q23 Q-o-Q Y-o-Y (RM 'bil) Net financing income 730 (14.9%) (8.4%) +2.1% Q-o-Q +17.9% Y-o-Y Non financing income 186 70.6% 55.0% 128.5 125.9 Operating income 916 (5.3%) (0.1%) Overhead expenses (379) 4.1% 14.2% 109.0 PPOP 537 (10.9%) (8.2%) (Provisions) / Wri
Slide 19: 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> 19 19
Slide 20: Forward23+ 2023 Strategic Plan
Forward23+ 2023 Strategic Plan 20
Slide 21: 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 32% 11% 30% 27% Dec-19 50% 18% 32% Mar-23 30%▼ 9%▼ 29% ▼ 32%▲
Slide 22: ROE Journey and Trajectory
ROE Journey and Trajectory 70-130 bps 0-70 bps 11.5- 10.2- 12.5% 11.0% 10.3% 8.5% 2019 Portfolio Opex ECL Others Capital 1Q23 Drivers 2023 Drivers 2024 ROE Reshaping Optimisation Reduction Accumulation ROE Target ROE Target ROE Key Highlights Future Drivers ROE progressed to 10.3% in 1Q23 from 8.5%
Slide 23: 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 FY23 Malaysia FY22 1Q23 Target
Slide 24: Sustainability
Sustainability Joint lead manager of a Launched the Green RM2.0 billion sustainability Renovation-i Financing for clients to refurbish their Published first sukuk wakalah for TNB Sustainability Report Power Generation Sdn Bhd homes with specified green (TPGSB). Proceeds will be features at low rates
Slide 25: 03 Final Remarks
03 Final Remarks <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 25
Slide 26: Final Remarks
Final Remarks Good 1Q23 performance underscored by robust FY24 NOII expansion, continued loan growth momentum FY23 1Q23 Forward23+ and sustained asset quality Targets Ambition Maintaining close watch on deposit competition with Top quartile continued emphasis on strengthening the CASA ROE * 10.3% 10
Slide 27: 04 Appendices
04 Appendices <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only>
Slide 28: Exceptional Items
Exceptional Items (RM 'mil) 1Q23 4Q22 1Q22 PBT BAU 2,236 2,024 2,101 Gain on deconsolidation Touch ‘n Go Digital - - - Gain / Loss on dilution of interest on disposal of associates - - - Loss on disposal of 25% CGS-CIMB - - - Transformational / Restructuring cost - (5) (6) Intangible assets write of
Slide 29: Earnings Summary
Earnings Summary 4Q22 1Q22 (RM ’mil) 1Q23 Q-o-Q Y-o-Y BAU^ BAU^ Net interest income 3,522 4,033 (12.7%) 3,549 (0.8%) Non interest income 1,475 1,187 24.3% 1,187 24.3% Operating income 4,997 5,220 (4.3%) 4,736 5.5% Overhead expenses (2,343) (2,481) (5.6%) (2,224) 5.4% PPOP 2,654 2,739 (3.1%) 2,512 5.
Slide 30: Key Ratios
Key Ratios 4Q22 1Q22 (%) 1Q23 Q-o-Q Y-o-Y BAU^ BAU^ ROE ~ 10.3 9.5 ▲ 10.5 ▼ Reported ROE 10.3 8.5 ▲ 9.6 ▲ NIM ~* 2.26 2.57 ▼ 2.45 ▼ Non-interest income / total income 29.5 22.7 ▲ 25.1 ▲ Cost to income 46.9 47.5 ▼ 47.0 ▼ Allowance coverage (including regulatory reserve) 98.3 96.2 ▲ 104.3 ▼ Allowance
Slide 31: NOII breakdown
NOII breakdown (RM ’mil) 1Q23 4Q22 Q-o-Q 1Q22 Y-o-Y Fee & commission 606 666 (9.0%) 624 (2.9%) Brokerage 7 6 16.7% 0 100.0% Asset management and security services 5 7 (28.6%) 7 (28.6%) Trading & FX 745 466 59.9% 494 50.8% Dividend income 7 9 (22.2%) 11 (36.4%) Other income 105 33 218.2% 51 105.9% To
Slide 32: PBT by Segments
PBT by Segments 4Q22 1Q22 PBT (RM ’mil) 1Q23 Q-o-Q Y-o-Y BAU^ BAU^ Consumer Banking (31.1%) 695 486 43.0% 725 (4.1%) Commercial Banking (23.2%) 518 365 41.9% 450 15.1% Wholesale Banking (31.4%) 702 662 6.0% 763 (8.0%) Corporate Banking (15,9%) 355 408 (13.0%) 289 22.8% Treasury & Markets ~ (15.6%) 3
Slide 33: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 1Q23 4Q22 Q-o-Q 1Q22 Y-o-Y Malaysia (RM ’mil) 483 438 10.3% 493 (2.0%) Indonesia (IDR ’bil) 598 79 657.0% 340 75.9% Thailand (THB ’mil) 205 17 >1,000% 705 (70.9%) Singapore (SGD ’mil) 6 3 100.0% 11 (45.5%) Others * (RM ’mil) (6) 12 (150.0%) 9 (166.7%) PBT
Slide 34: Asset Quality & Moratorium
Asset Quality & Moratorium Gross Loans Bonds Covid-19 Impacted Sectors Sectors 31 Mar-23 31 Mar-23 Hospitality 1.1% 0.1% Retail 2.4% 0.1% Aviation 0.2% 0.5% Leisure 0.6% 0.5% Total: Directly impacted sectors 4.3% 1.1% vs 31 Dec-22 3.8% 1.2% Others: Indirectly impacted sectors 20.1% 4.4% vs 31 Dec-22
Slide 35: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Loan Exposure: Borrowers Status: 1.5% of total Group gross loans Impaired 23% Thailand Watch List (M & H) 8% 0% Singapore Normal 17% 77% Indonesia Segmental Exposure: 7% Oil Traders Malaysia 5% Upstream 68% 17% Downstream As at Mar-23, the O&G impairment ratio stood at 22.5%
Slide 36: 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 4.4% 0.1% Consumer Gross Loans 9.4% 1.4% Mortgages 7.6% 2.0% Mortgages 5.5% 0.4% Term loans (6.6%) (6.6%) Auto 20.6% 4.4% Auto 6.4% 1.7% Credit cards 3.4% (1.8%) Credit cards 16.0% 1.8% Consumer Deposits
Slide 37: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 1Q23 4Q22 Q-o-Q 1Q22 Y-o-Y Net interest income 3,408 3,502 (2.7%) 3,209 6.2% Non interest income 1,576 1,279 23.2% 1,590 (0.9%) Operating income 4,984 4,781 4.2% 4,799 3.8% Overhead expenses* (2,219) (2,222) (0.2%) (2,104) 5.4% PPOP* 2,765 2,559 8.1% 2,695 2.
Slide 38: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 1Q23 4Q22 Q-o-Q 1Q22 Y-o-Y ROE ^* 15.1 11.7 ▲ 11.8 ▲ NIM ^ 4.71 4.90 ▼ 4.46 ▲ Cost to Income* 44.5 46.5 ▼ 43.8 ▲ Loan Loss Coverage # 253.5 242.7 ▲ 210.8 ▲ Allowance Coverage 105.0 94.7 ▲ 111.5 ▼ Loan Loss Charge ^ 1.5 1.9 ▼ 2.4 ▼ Gross Impaired Loans Ratio
Slide 39: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 1Q23 4Q22 Q-o-Q 1Q22 Y-o-Y (THB 'mil) Net interest income 2,346 2,524 (7.1%) 2,311 1.5% Non interest income 1,483 367 304.1% 1,173 26.4% Operating income 3,829 2,891 32.4% 3,484 9.9% Overhead expenses (1,960) (2,155) (9.0%) (1,789) 9.6% PPOP 1,868
Slide 40: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 1Q23 4Q22 Q-o-Q 1Q22 Y-o-Y ROE ^ 7.3 0.9 ▲ 9.8 ▼ NIM ^ 2.5 2.6 ▼ 2.8 ▼ Cost to Income 51.2 74.5 ▼ 51.4 ▼ Loan Loss Coverage ** 122.6 114.6 ▲ 111.9 ▲ Loan Loss Charge ^ 1.4 1.0 ▲ 0.7 ▲ Gross NPL ratio ** 3.1 3.2 ▼ 3.8 ▼ ROA 0.7 0.1 ▲ 1.1 ▼ Loan to Deposit 101.
Slide 41: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 1Q23 1Q22 1Q23 1Q22 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 29.7% 1 17.1% 3 DCM 9.2% 5 7.7% 6 Sukuk 33.4% 1 16.8% 2 M&A - - - - M&A - - 18.1% 4 Syndication ^ 1.6% 20 10.1% 2 Syndication ^ - - 8.9% 6 IPO - - 2.9% 6 IPO - - 2
Slide 42: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 1Q23 1Q22 1Q23 1Q22 Asia ASEAN Market Market Market Market Rank Rank (ex-Japan) * Rank Rank Share Share Share Share DCM 14.1% 1 10.4% 1 DCM 0.6% 49 0.43% 58 M&A 1.5% 15 1.5% 15 M&A - - - - Syndication ^ 0.5% 37 6.4% 6 Syndication ^ 0.1% 92 0.6% 31 IPO 0.2% 39 6.9% 5 I