Cimb Group Holdings Bhd · MYX:CIMB

Cimb Group Holdings Bhd — 9M18 Earnings Presentation

36 slides from Cimb Group Holdings Bhd's earnings presentation, Nov 29, 2018

  1. Slide 1: Analyst Presentation 9M18 Results

    Analyst Presentation 9M18 Results CIMB Group Holdings 29 November 2018

  2. Slide 2: Key Financial Highlights

    Key Financial Highlights Net Net Profit (RM) ^ ROE *^ Gross Loan (RM) ~ 3,538mil 9.8% 338.4bil +3.6% Y-o-Y Flat Y-o-Y +4.9% Y-o-Y Cost-to-Income ^ Loan Loss Charge* CET1 51.6% 0.45% 12.3% -50bps Y-o-Y -23bps Y-o-Y +30bps Y-o-Y Notes: ^ Includes CSI gain of RM163mil. Excludes CPAM & CPIAM gain of RM9

  3. Slide 3: Key Business/Operational Highlights

    Key Business/Operational Highlights Consumer Banking PBT remains strong Wholesale revenue recovery in 3Q (RM ’mil) (RM ’mil) +23.1% Y-o-Y 4,358 3,630 2,758 1,306 2,386 1,088 785 783 1,600 1,244 305 521 NII NoII Provisions: Continued improvement from Positive JAW maintained in 9M18 Consumer and Comme

  4. Slide 4: PBT By Segment

    PBT By Segment ^  Consumer Banking maintains positive momentum 9M18  Commercial Banking: Lower provisions and cost Group PBT RM4,760mil ^  Wholesale Banking: Weaker YoY markets and 4.0% higher QoQ provisions  GAMI performed well from both public and private markets, while Group Funding higher fr

  5. Slide 5: PBT By Country

    PBT By Country  Malaysia: Holding up YoY due to Consumer. QoQ affected by bonds impairment  Indonesia: Continues to perform well from lower provisions. Excluding FX PBT +8.7% YoY ^  Thailand: Lower provisions YoY. QoQ affected by higher provisions and opex  Singapore: Improved from deconsolidati

  6. Slide 6: 9M18 Financials

    9M18 Financials

  7. Slide 7: Quarterly Earnings Trend

    Quarterly Earnings Trend RM ’mil ^ ~ Notes: ^ Includes CSI gain of RM152mil ~ Excludes CPAM & CPIAM gain of RM928mil and includes CSI gain of RM11mil *Annualised 7

  8. Slide 8: Operating Income

    Operating Income 9M18 Q-o-Q (RM ‘mil) Y-o-Y 3Q18  Operating income rose BAU^ BAU^ by 5.2% QoQ. 9M18 affected by weak MY Net interest income 8,869 (3.7%) 3,000 2.4% markets in 2Q Non interest income 3,510 (10.0%) 1,140 13.4%  3Q18 NOII saw better capital market flows Total 12,379 (5.6%) 4,140 5.2%

  9. Slide 9: Operating Expenses

    Operating Expenses (RM ‘mil) 9M18 Y-o-Y 3Q18 Q-o-Q  Cost management efforts continue to yield Personnel 3,672 (6.3%) 1,250 6.3% results  Cost reduction mainly Establishment 1,453 (12.0%) 479 (2.0%) from deconsolidation of CSI (c.RM150m per quarter) and FX impact Marketing 201 (5.2%) 67 (11.8%)  E

  10. Slide 10: Loan Provisions

    Loan Provisions -30.7% Y-o-Y +15.7% Q-o-Q  Improvement from Consumer (-53.2% YoY) and Commercial (-48.6% YoY) RM ’mil  Wholesale Banking provisions higher YoY due to MY & ID corporate banking and from writebacks in 9M17  Allowance coverage improved to 107.1% Allowance Coverage (%) ^ • Improvement

  11. Slide 11: Gross Loans

    Gross Loans RM ’bil Sep-18 Y-o-Y Q-o-Q Loans-to-Deposit Ratio (%) Consumer Banking 175.4 5.4% 2.3% Commercial Banking 43.6 2.1% 2.1% Wholesale Banking 119.4 5.1% 3.2% + Total 338.4 4.9% 2.6% Loan Growth by Country (Y-o-Y) +~ ^ ** +11.0% +5.5% Others +0.1% 30 Sep-18 # RM338.4bil ^ ^ ~ +2.2% +3.9% +7.

  12. Slide 12: Deposits

    Deposits RM ’bil Sep-18 Y-o-Y Q-o-Q CASA Ratio (%) Consumer Banking 169.4 1.6% 2.9% Commercial Banking 40.3 (11.2%) (4.3%) Wholesale Banking 157.3 10.9% 6.8% Total 367.0 3.7% 3.7% Deposits Growth by Country (Y-o-Y) ^ ** +4.4% +5.6% Others +38.0% 30 Sep-18 RM367.0bil ^ ^ ~ +3.8% +8.7% +6.0% Notes: ~

  13. Slide 13: Capital and Liquidity Management

    Capital and Liquidity Management Total Capital  CET1 ratio increased to 12.3% (+40bps QoQ)  First interim dividend DRS take-up rate of 86.3%  Achieved end-2018 CET1 target of 12.0% ^ # ~  LCR remains Liquidity Coverage Ratio comfortably above 100% for all banking entities CIMB Bank Global * CIMB

  14. Slide 14: PBT by Segments

    PBT by Segments 9M18 Q-o-Q (RM ‘mil) Y-o-Y 3Q18 BAU^ BAU^ Consumer Banking (49.5%) 2,358 23.1% 747 (2.1%) Commercial Banking (9.9%) 471 69.4% 176 1.7% Wholesale Banking (26.7%) 1,268 (31.3%) 354 (16.5%) Corporate Banking (18.2%) 864 (23.3%) 167 (54.1%) Treasury & Markets ~ (7.3%) 346 (47.4%) 170 220

  15. Slide 15: Consumer Banking

    Consumer Banking (RM ‘mil) 9M18 Y-o-Y 3Q18 Q-o-Q Net interest income 4,505 2.1% 1,498 (1.0%) Non interest income 1,542 1.2% 475 (2.3%) Operating income 6,047 1.9% 1,973 (1.3%) Gross Loans* RM175.4bil Overhead expenses (3,339) 2.0% (1,135) 2.3% 5.4% PPOP 2,708 1.7% 838 (5.7%) (Provisions) / Writeback

  16. Slide 16: Commercial Banking

    Commercial Banking (RM ‘mil) 9M18 Y-o-Y 3Q18 Q-o-Q ^ Net interest income 1,267 (4.4%) 428 2.1% Non interest income 285 (9.2%) 98 7.7% Operating income 1,552 (5.3%) 526 3.1% Gross Loans* RM43.6bil Overhead expenses (830) (4.9%) (280) 6.1% 2.1% PPOP 722 (5.7%) 246 - (Provisions) / Writeback (251) (48.

  17. Slide 17: Wholesale Banking

    Wholesale Banking (RM ‘mil) 9M18 Y-o-Y 3Q18 Q-o-Q ^ Net interest income 2,386 (13.5%) 785 0.3% Non interest income 1,244 (22.3%) 521 70.8% Operating income 3,630 (16.7%) 1,306 20.0% Gross Loans* RM119.4bil Overhead expenses (1,704) (18.0%) (590) 9.5% 5.1% PPOP 1,926 (15.5%) 716 30.4% (Provisions) /

  18. Slide 18: Group Asset Management & Investments

    Group Asset Management & Investments Public Markets AUM (RM ‘mil) 9M18 Y-o-Y 3Q18 Q-o-Q (RM ’mil) Public Markets 99 3.0% 16 (61.1%) +14.4% Y-o-Y +3.3% Q-o-Q Private Markets 46 >1000% 29 >1000% Direct Investments & 43 383.6% 29 752.3% Others Private Equity Fund 1 (98.9%) 1 234.1% Management Passive F

  19. Slide 19: CIMB Islamic

    CIMB Islamic Islamic Financing ^ (RM ‘mil) 9M18 Y-o-Y 3Q18 Q-o-Q RM ’bil Net financing income 1,380 21.8% 483 4.3% +31.8% Y-o-Y +6.0% Q-o-Q Non financing income 320 (5.6%) 82 (35.9%) Operating income 1,700 15.5% 565 (4.4%) Overhead expenses (535) 3.9% (170) (4.5%) PPOP 1,165 21.7% 395 (4.4%) (Provis

  20. Slide 20: Other Updates

    —~) ® jd © Oo ©. =) = ® <= ra) O

  21. Slide 21: T18 Financial Targets Scorecard

    T18 Financial Targets Scorecard T18 Financial Progress T18 Targets Remarks Cost-to- Progressing Income towards target CET1 On track to meet target ^ Challenging ROE depending on market conditions Income Contribution On track to From Consumer meet target & Commercial 2015* 2016 2017 9M18 BAU # Notes:

  22. Slide 22: Corporate Responsibility

    Corporate Responsibility CSR Spend as at Sep 2018 CIMB Non-CIMB Foundation Foundation* RM 8.8mil RM 3.5mil Squash juniors won Gold in Tour De Bank in Padang & Agricultural Plots at Ban Pong 18th Asian Games Indonesia Bogor, Indonesia Dang Nam Cha Samakkhi, Thailand Notes: YTD Sep-18 CSR spend exclud

  23. Slide 23: Final Remarks

    ”) x a © = D ad C S Le

  24. Slide 24: Final Remarks

    Final Remarks  2018 ROE target challenged 9M18 FY18 by macro uncertainties BAU^ Target  Malaysia to continue driving ROE 9.8% # 10.5% Group loan growth  Indonesia headwinds from Dividend macro conditions and elections 51.6% ~ 40% - 60% Payout Ratio  Sustained focus on cost, asset quality and cap

  25. Slide 25: Appendices

    ” qd) 2 rc) c ® 2. 2. <L

  26. Slide 26: Earnings Summary

    Earnings Summary 9M18 2Q18 (RM ’mil) 9M17 Y-o-Y 3Q18 Q-o-Q BAU^ BAU^ Net interest income 8,869 9,213 (3.7%) 3,000 2,931 2.4% Non interest income 3,510 3,898 (10.0%) 1,140 1,005 13.4% Operating income 12,379 13,111 (5.6%) 4,140 3,936 5.2% Overhead expenses (6,387) (6,826) (6.4%) (2,159) (2,087) 3.4%

  27. Slide 27: Key Ratios

    Key Ratios 9M18 2Q18 (%) 9M17 Y-o-Y 3Q18 Q-o-Q BAU^ BAU^ ROE ~ 9.8 9.8 9.6 8.8 NIM ~** 2.52 2.67 2.49 2.48 Non-interest income / total income 28.4 29.7 27.5 25.5 Cost to income 51.6 52.1 52.1 53.0 Allowance coverage (including regulatory reserve) 107.1 85.3 107.1 106.8 Allowance coverage (excluding

  28. Slide 28: PBT by Segment and Country

    PBT by Segment and Country Consumer Banking 9M18 9M17 Y-o-Y 3Q18 2Q18 Q-o-Q Malaysia (RM ‘mil) 1,662 1,525 9.0% 508 536 (5.2%) Indonesia (IDR ‘bil) 1,250 328 281.1% 544 357 52.4% Thailand (THB ‘mil) 1,910 1,608 18.8% 451 663 (32.0%) Singapore (SGD ‘mil) 28 21 33.3% 7 13 (46.2%) Others * (RM ‘mil) 20

  29. Slide 29: Consumer Banking Key Highlights

    Consumer Banking Key Highlights Malaysia Y-o-Y YTD Q-o-Q Indonesia Y-o-Y YTD Q-o-Q Consumer Gross Loans * 8.4% 5.7% 2.0% Consumer Gross Loans* (2.2%) (0.2%) 1.3% Mortgages 9.7% 6.6% 2.2% Mortgages 10.0% 8.0% 4.2% Term loans 6.5% 4.2% 0.9% Auto (32.9%) (22.0%) (7.3%) Auto 5.6% 4.9% 2.0% Credit cards

  30. Slide 30: Group Funding

    Group Funding 9M18 2Q18 (RM ‘mil) 9M17 Y-o-Y 3Q18 Q-o-Q BAU^ BAU^ Net interest income 693 695 (0.3%) 285 210 35.7% Non interest income 158 125 26.4% (23) 28 (182.1%) Operating income 851 820 3.8% 262 238 10.1% Overhead expenses (319) (377) (15.4%) (109) (103) 5.8% PPOP 532 443 20.1% 153 135 13.3% (P

  31. Slide 31: CIMB Niaga : Earnings Summary

    CIMB Niaga : Earnings Summary (IDR ‘bil) 9M18 9M17 Y-o-Y 3Q18 2Q18 Q-o-Q Net interest income 9,012 9,369 (3.8%) 3,024 2,955 2.3% Non interest income 2,867 2,319 23.6% 1,003 872 15.0% Operating income 11,879 11,688 1.6% 4,027 3,827 5.2% Overhead expenses (5,943) (5,589) 6.3% (2,064) (1,924) 7.3% PPOP

  32. Slide 32: CIMB Niaga : Key Ratios

    CIMB Niaga : Key Ratios (Consolidated, %) 9M18 9M17 Y-o-Y 3Q18 2Q18 Q-o-Q ROE ^ 9.1 8.3 8.5 9.4 NIM ^ 5.12 5.74 5.17 5.03 Cost to Income 50.0 47.8 51.3 50.3 Loan Loss Coverage # 101.2 115.1 101.2 106.8 Allowance Coverage 78.4 85.5 78.4 81.7 Loan Loss Charge ^ 1.7 2.3 1.7 1.5 Gross Impaired Loans Rat

  33. Slide 33: CIMB Thai : Earnings Summary

    CIMB Thai : Earnings Summary Before GAAP Adjustments 9M18 9M17 Y-o-Y 3Q18 2Q18 Q-o-Q (THB ‘mil) Net interest income 7,943 7,604 4.5% 2,707 2,640 2.5% Non interest income 2,143 2,234 (4.1%) 583 773 (24.6%) Operating income 10,085 9,839 2.5% 3,290 3,413 (3.6%) Overhead expenses (6,019) (5,432) 10.8% (

  34. Slide 34: CIMB Thai : Key Ratios

    CIMB Thai : Key Ratios (Consolidated, %) 9M18 9M17 Y-o-Y 3Q18 2Q18 Q-o-Q ROE ^ 2.2 2.5 2.1 2.3 NIM ^ 3.77 3.88 3.57 3.78 Cost to Income 59.7 55.2 65.2 56.9 Loan Loss Coverage ** 94.1 85.1 94.1 90.1 Loan Loss Charge ^ 2.1 2.4 1.7 2.3 Gross NPL ratio ** 5.7 5.7 5.7 5.8 Net NPL ratio ** 2.9 3.0 2.9 2.9

  35. Slide 35: IB Market Share and Ranking (1)

    IB Market Share and Ranking (1) 9M18 9M17 9M18 9M17 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 23.6% 1 30.7% 1 DCM 9.5% 4 8.9% 7 Sukuk 23.0% 2 31.3% 1 M&A - - 2.8% 4 M&A 4.9% 8 6.8% 2 Syndication ^ 6.7% 5 0.9% 23 Syndication ^ 1.1% 12 3.2% 9 IPO 4.1% 10 3.1%

  36. Slide 36: IB Market Share and Ranking (2)

    IB Market Share and Ranking (2) 9M18 9M17 9M18 9M17 Market Market ASEAN Market Market Rank Rank Rank Rank Share Share Share Share M&A 0.4% 31 0.3% 48 DCM 10.3% 1 13.5% 1 Syndication ^ - - - - M&A 1.5% 21 3.4% 13 IPO - - 0.2% 63 Syndication ^ 2.7% 12 0.8% 29 ECM 0.3% 39 0.1% 76 IPO 0.9% 26 9.1% 1 ~ C

CIMB Group Holdings Berhad — 9M18 Earnings Presentation on 6ix