Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — 9M21 Earnings Presentation
42 slides from Cimb Group Holdings Bhd's earnings presentation, Nov 30, 2021
Slide 1: Analyst Presentation 9M21 Results
Analyst Presentation 9M21 Results CIMB Group Holdings 30 November 2021 FORWARD Your Ambitions 1
Slide 2: Overview
01 Overview 2
Slide 3: Key Highlights
Key Highlights Weaker operating income QoQ due Improving loan growth as Cost remains under control to modification loss and lower NOII NIM sustained with CIR at 47.7% Core 9M21 net profit remains strong One-off exceptional item in 3Q related despite weaker quarter with 9M21 to the impairment of Thai
Slide 4: Key Business/Operational Highlights
Key Business/Operational Highlights Operating income strong YoY despite weaker 3Q21 9M21 NIM sustained at 2.46%, 21 bps improvement YoY Total Operating Income (RM 'mil) NIM~(%) -4.9% QoQ +11.7% YoY 9M20 9M21 ^ 13,768 2.25 2.46 12,322 2.52 2.51 4,621 4,393 + 2.37 2.46% 2.31 2.40 2Q21 3Q21 9M20 9M21 3
Slide 5: PBT By Segment
PBT By Segment Consumer growth YoY underpinned by strong PPOP and lower CIMB Digital provisions. QoQ -10.1% from modification loss and lower fee Assets & Group income due to the lockdown Funding Consumer Commercial improvement YoY due to the absence of large 13% Banking 9M21 32% Singapore provision
Slide 6: PBT By Country
PBT By Country Others Malaysia PBT +87.3% YoY from strong PPOP. Lower QoQ Singapore due to modification loss and NOII in 3Q21 offset by lower -2% 10% provisions Thailand Indonesia improved YoY from good topline and lower 4% 9M21 provisions. However, topline was weaker QoQ leading to - Group PBT 13.3
Slide 7: Operating Income
Operating Income 3Q21 9M21 NII affected by additional modification loss (RM 'mil) Q-o-Q Y-o-Y BAU^ BAU^ in 3Q21; YoY growth remains strong NIM tapered QoQ across all core markets, Net interest income 3,457 (2.3%) 10,416 12.9% but remains higher YTD mainly from Malaysia, Indonesia and Singapore Non i
Slide 8: Operating Expenses
Operating Expenses 3Q21 9M21 Opex +1.0% YoY driven by higher (RM 'mil) Q-o-Q Y-o-Y BAU^ BAU^ Personnel and Technology cost from planned investments Personnel 1,312 (0.1%) 3,999 1.9% QoQ +0.3% from higher Establishment 212 (1.0%) 647 (7.0%) Technology and Marketing cost Technology 324 1.7% 959 17.4%
Slide 9: Total Provisions
Total Provisions 3Q21 2Q21 9M21 (RM 'mil) Q-o-Q 9M20 Y-o-Y BAU^ BAU^ BAU^ Loan Impairment 529 652 (18.9%) 1,896 3,958 (52.1%) Commitment & Contingencies 44 (25) (276.0%) 42 116 (63.8%) Debt instruments/ securities 18 49 (63.3%) 50 330 (84.8%) Others 10 (23) (143.5%) 22 138 (84.1%) Total 601 653 (8.0
Slide 10: Loan Provisions/ECL
Loan Provisions/ECL -18.9% Q-o-Q -52.1% Y-o-Y -18.9% YoY mainly due to absence of large impairments and lower RM 'mil 3,958 overlay MEF & Overlay 912 Allowance coverage stood at Covid-19 related 652 105.1% with GIL of 3.4% 79 529 547 Underlying 109 1,896 3Q21 LLC came in at 0.62% and Credit related/
Slide 11: Asset Quality & Moratorium
Asset Quality & Moratorium Gross Loans Bonds Covid-19 Impacted Sectors Continuation of Group-wide R&R Sectors 30 Sep-21 30 Sep-21 approach across all segments and Hospitality 1.3% 0.0% countries Retail 2.2% 0.1% Malaysia Consumer Moratorium and R&R has stabilised at 30% Aviation 0.3% 0.4% Indonesia
Slide 12: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 30 Sep-21 Q-o-Q Y-o-Y 89.0% 88.9% Consumer Banking 194.0 1.5% 3.8% 87.7% 87.8% Commercial Banking 61.4 0.7% (0.8%) 84.5% Wholesale Banking 117.0 (0.1%) (0.5%) Total 372.4 0.9% 1.6% Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 ~ Loan Growth by Country (Y-o-Y) Others
Slide 13: Deposits
Deposits CASA Ratio (RM 'bil) 30 Sep-21 Q-o-Q Y-o-Y 42.3% Consumer Banking 172.5 0.2% (2.3%) 41.3% 41.6% 41.5% Commercial Banking 76.1 3.1% 10.3% 40.0% Wholesale Banking 192.1 10.3% 11.6% Total Deposits 440.8 4.9% 5.5% Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Total CASA 183.1 4.6% 9.6% WY Deposit Growth b
Slide 14: Capital and Liquidity Management
Capital and Liquidity Management 17.5% 17.7% CET1 increased by 40bps QoQ Total Capital 16.7% and 90bps YoY to 13.9% in Sep- 2.6% 3.0% 2.8% Tier 2 1.0% 21 1.1% 1.0% Tier 1 CET1 ratio remains above the CET1 FY21 target of >12.5% 13.0% 13.5% 13.9% First interim dividend with DRS take-up rate of 85.0% S
Slide 15: Consumer Banking
Consumer Banking 3Q21 9M21 Personal (RM 'mil) Q-o-Q Y-o-Y Financing BAU BAU Others Credit Cards 3% 3% Net interest income 1,454 (6.4%) 4,536 9.3% 4% Non interest income 427 (5.1%) 1,444 22.8% Auto 12% Gross Loans Operating income 1,881 (6.1%) 5,980 12.3% RM194.0 bil Overhead expenses (1,067) (1.4%)
Slide 16: Commercial Banking
Commercial Banking 3Q21 9M21 Others (RM 'mil) Q-o-Q Y-o-Y BAU BAU Singapore 4% 6% Net interest income 733 1.1% 2,168 6.6% Thailand Non interest income 135 (6.9%) 427 6.0% 4% Gross Loans Operating income 868 (0.2%) 2,595 6.5% RM61.4 bil Overhead expenses (421) (2.5%) (1,300) (1.8%) Indonesia 0.8% Mal
Slide 17: Wholesale Banking
Wholesale Banking 3Q21 9M21 Others (RM 'mil) Q-o-Q Y-o-Y BAU BAU 1% Singapore Net interest income 961 3.0% 2,785 9.7% 18% Non interest income 311 (20.3%) 1,193 26.9% Thailand Gross Loans Operating income 1,272 (3.9%) 3,978 14.3% 8% RM117.0 bil Malaysia Overhead expenses (490) (0.6%) (1,478) 2.0% 0.5
Slide 18: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding 3Q21 9M21 Touch ‘n Go Digital (RM ‘mil) Q-o-Q Y-o-Y Total Registered Users Annual Transacting BAU BAU (mil) Users (mil) Net interest income 307 (6.1%) 926 84.8% +9.3% Y-o-Y -36.8% Y-o-Y Non interest income 64 (36.0%) 289 (50.2%) Operating income 371 (13.1%) 1,215
Slide 19: CIMB Islamic
CIMB Islamic 3Q21 9M21 Islamic Financing (RM ‘mil) Q-o-Q Y-o-Y (RM 'bil) BAU BAU Net financing income 696 (6.7%) 2,161 33.7% +2.7% Q-o-Q +4.5% Y-o-Y Non financing income 116 11.5% 353 (0.7%) 101.2 Operating income 812 (4.5%) 2,514 27.5% 98.5 Overhead expenses (328) 10.8% (907) 22.1% 96.8 PPOP 484 (1
Slide 20: 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> 20 20
Slide 21: Vision and Strategic Themes
Vision To be the leading focused ASEAN bank Strategic Themes 1 Delivering a) Reshape b) Drive cost c) Digitise for d) Focused investments Sustainable portfolio efficiency value Facilitate intra-ASEAN Financial Accelerate Reset cost base Strengthen wholesale Returns profitable growth Tighte
Slide 22: Asset Composition and Growth
Asset Composition and Growth Increased allocation in Wholesale and Group Funding as we continue to increase bonds and rebuild our loan book CDA and Group Year Consumer Commercial Wholesale Funding Dec-19 33% 11% 43% 12% Sep-21 31% 10% 44% 15% Loan Growth Initiatives / Comments Sep-21 Jun-21 YoY YoY
Slide 23: Structured Cost Take-out
Structured Cost Take-out Evolution Analysis RM 'mil 2 Identified RM380 mil of annualised cost take-out Total Cost Increase in cost out of the RM300-500 mil target Decrease in cost Details TBD 1 (611) New in 3Q21: (50) 9,386 8,775 2021 impact of RM165 mil FY2019A Cost FY2020A TH SG TNGD Savings from
Slide 24: Digital Reliability/Customer Centricity
Digital Reliability/Customer Centricity Metrics tracking well with digital transactions increasing Clicks & Bizchannel Customer Centricity Digital % Availability 9M20 9M21 YoY Country 2021 2020 9M21 Digital Target Transactions 304 453 49% CIMB Clicks (‘mil)~ Clicks 98.26% 99.20% 98.75% Channel Chann
Slide 25: Performance Management & Purpose Driven Organisation
Performance Management & Purpose Driven Organisation Values & Culture Human Capital Sustainability • Completed review of current operating model • Organisational Health survey completed with • Committed RM10 billion GSSIPS loan 1Q21 and simplifying P&L accountability FY20 score of 75th percentile di
Slide 26: Final Remarks
03 Final Remarks <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 26
Slide 27: Final Remarks
Final Remarks YTD performance remains strong despite the weak 9M21 FY21 FY21 third quarter. Expect to record improved financial 9M20 BAU^ Target Guidance performance for FY2021 New assistance program will result in modification ROTCE* 3.4% 10.6% 8-9% 9-10% loss and continued elevated provisions Loan
Slide 28: Appendices
04 Appendices <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only>
Slide 29: Exceptional Items
Exceptional Items (RM 'mil) 3Q21 2Q21 1Q21 9M21 PBT BAU 1,639 1,835 1,788 5,262 Gain on deconsolidation Touch ‘n Go Digital - - 1,156 1,156 Gain on dilution of interest in Touch ‘n Go Digital 2 - - 2 Transformational / Restructuring cost (10) (17) (46) (73) Intangible assets write off and accelerate
Slide 30: Earnings Summary
Earnings Summary 3Q21 2Q21 9M21 (RM ’mil) Q-o-Q 9M20 Y-o-Y BAU^ BAU^ BAU^ Net interest income 3,457 3,538 (2.3%) 10,416 9,223 12.9% Non interest income 936 1,083 (13.6%) 3,352 3,099 8.2% Operating income 4,393 4,621 (4.9%) 13,768 12,322 11.7% Overhead expenses (2,162) (2,156) 0.3% (6,563) (6,497) 1.
Slide 31: NOII breakdown
NOII breakdown 3Q21 2Q21 9M21 (RM ’mil) Q-o-Q 9M20 Y-o-Y BAU^ BAU^ BAU^ Fee & commission 525 542 (3.1%) 1,717 1,434 19.7% Brokerage 0 0 n/a 1 2 (50.0%) Asset management and security services 9 8 12.5% 26 17 52.9% Trading & FX 364 464 (21.6%) 1,450 1,448 0.1% Dividend income 15 20 (25.0%) 50 52 (3.8%
Slide 32: Key Ratios
Key Ratios 3Q21 2Q21 9M21 (%) Q-o-Q 9M20 Y-o-Y BAU^ BAU^ BAU^ ROE ~ 8.4 8.8 ▼ 9.0 2.3 ▲ NIM ~* 2.40 2.51 ▼ 2.46 2.25 ▲ Non-interest income / total income 21.3 23.4 ▼ 24.3 25.1 ▼ Cost to income 49.2 46.6 ▲ 47.7 52.7 ▼ Allowance coverage (including regulatory reserve) 105.3 102.4 ▲ 105.3 93.9 ▲ Allowa
Slide 33: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Loan Exposure: Borrowers Status: 2.5% of total Group gross loans Impaired Thailand Normal 32% 6% 54% Singapore 16% Watch List (M & H) Indonesia Malaysia 14% 2% 76% Segmental Exposure: Upstream 7% Oil Traders 10% Midstream As at Sep-21, the O&G impairment ratio stood at 32.4%
Slide 34: PBT by Segments
PBT by Segments 3Q21 2Q21 9M21 PBT (RM ’mil) Q-o-Q 9M20 Y-o-Y BAU^ BAU^ BAU^ Consumer Banking (31.7%) 499 555 (10.1%) 1,669 689 142.2% Commercial Banking (13.9%) 131 306 (57.2%) 730 (176) 514.8% Wholesale Banking (41.0%) 855 676 26.5% 2,154 278 674.8% Corporate Banking (17.9%) 490 249 96.8% 941 (350
Slide 35: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 3Q21 2Q21 Q-o-Q 9M21 9M20 Y-o-Y Malaysia (RM ’mil) 341 396 (13.9%) 1,294 1,819 (28.9%) Indonesia (IDR ’bil) 274 335 (18.2%) 546 2,205 (75.2%) Thailand (THB ’mil) 371 262 41.6% 961 (1,213) 179.2% Singapore (SGD ’mil) 7 11 (36.4%) 24 (377) 106.4% Others * (R
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 3.4% 1.1% Consumer Gross Loans 5.7% 2.5% Mortgages 7.0% 1.6% Mortgages 8.1% 2.9% Term loans 0.0% 1.9% Auto 13.4% 4.6% Auto 1.2% (1.2%) Credit cards (6.5%) (0.8%) Credit cards (10.0%) 2.3% Consumer Deposit
Slide 37: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 3Q21 2Q21 Q-o-Q 9M21 Y-o-Y Net interest income 3,350 3,269 2.5% 9,888 6.8% Non interest income 948 1,189 (20.3%) 3,437 13.7% Operating income 4,298 4,458 (3.6%) 13,325 8.5% Overhead expenses* (2,001) (2,018) 0.8% (6,031) 0.5% PPOP* 2,297 2,441 (5.9%) 7,294 16
Slide 38: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 3Q21 2Q21 Q-o-Q 9M21 Y-o-Y ROE ^* 10.7 12.3 ▼ 11.2 ▲ NIM ^ 4.84 5.05 ▼ 5.00 ▲ Cost to Income* 46.6 45.3 ▲ 45.3 ▼ Loan Loss Coverage # 217.2 223.5 ▼ 217.2 ▲ Allowance Coverage 103.8 110.2 ▼ 103.8 ▼ Loan Loss Charge ^ 2.1 2.4 ▼ 2.5 ▲ Gross Impaired Loans Ratio
Slide 39: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 3Q21 2Q21 Q-o-Q 9M21 Y-o-Y (THB 'mil) Net interest income 2,484 2,618 (5.1%) 7,566 (9.4%) Non interest income 1,115 1,156 (3.5%) 3,317 5.2% Operating income 3,600 3,774 (4.6%) 10,884 (5.4%) Overhead expenses (1,933) (2,052) (5.8%) (6,066) (12.3%)
Slide 40: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 3Q21 2Q21 Q-o-Q 9M21 Y-o-Y ROE ^ 7.1 5.9 ▲ 5.5 ▲ NIM ^ 3.0 3.2 ▼ 3.1 ▼ Cost to Income 53.7 54.4 ▼ 55.7 ▼ Loan Loss Coverage ** 105.9 101.3 ▲ 105.9 ▲ Loan Loss Charge ^ 1.4 1.7 ▼ 1.6 ▲ Gross NPL ratio ** 4.4 4.8 ▼ 4.4 ▼ ROA 0.7 0.6 ▲ 0.5 ▲ Loan to Deposit 95.5
Slide 41: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 9M21 9M20 9M21 9M20 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 21.5% 2 28.7% 1 DCM 5.1% 10 7.3% 7 Sukuk 21.9% 2 24.0% 1 M&A - - - - M&A - - - - Syndication ^ 4.6% 6 3.9% 5 Syndication ^ 14.0% 2 - - IPO 0.4% 17 0.9% 20 IPO 1.9%
Slide 42: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 9M21 9M20 9M21 9M20 Market Market ASEAN Market Market Rank Rank Rank Rank Share Share Share Share M&A - - - - DCM 10.6% 1 12.4% 1 Syndication ^ - - - - M&A - - - - IPO - - 0.1% 63 Syndication ^ 2.5% 12 0.2% 44 ECM - - 0.1% 81 IPO 1.8% 20 2.8% 11 ECM 2.8% 11 3.1% 11 9M
CIMB Group Holdings Berhad — 9M21 Earnings Presentation on 6ix