Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — 9M 2009 Earnings Presentation
60 slides from Cimb Group Holdings Bhd's earnings presentation, Nov 10, 2009
Slide 1: CIMB Group Holdings Berhad Nine Months 2009 Results
CIMB GROUP HOLDINGS BERHAD NINE MONTHS 2009 RESULTS Analyst Presentation 10 November 2009
Slide 2: Agenda
Agenda 1) Summary 2) CIMB Group 9M09 Financials 3) Malaysian Consumer Bank 4) Treasury & Investment Banking 5) Asset Management & Insurance 6) CIMB Niaga 7) CIMB Thai 8) Other Highlights 9) Closing Remarks 2
Slide 3: Summary
CIMB GROUP : 9M09 RESULTS SUMMARY
Slide 4: Summary
Summary • Our best ever quarter and 9 months net profit at RM727m and RM2.0b respectively • At 33% in 3Q, record contribution from non-Malaysian businesses • Strong QoQ improvement in contribution from CIMB Niaga and from Treasury & Investments • Corporate and Investment Banking held back by high pr
Slide 5: CIMB Group 9M09 Financials
CIMB GROUP : 9M09 RESULTS CIMB GROUP 9M09 FINANCIALS
Slide 6: Earnings Summary
Earnings Summary (RM ‘mil) 3Q09 2Q09 Q-o-Q 9M09 9M08 Y-o-Y Net interest income 1,595 1,502 6.2% 4,504 3,374 33.5% Non interest income 1,192 1,087 9.7% 3,386 2,484 36.3% Operating income 2,787 2,589 7.6% 7,890 5,858 34.7% Loan provisions (246) (302) (18.5%) (819) (532) 53.9% - Specific (190) (270) (2
Slide 7: Quarterly Earnings Trend
Quarterly Earnings Trend 2,787 2,589 2,514 2,158 1,980 2,017 1,830 1,882 16.6% 1,683 15.4% 15.1% 11.3% 11.4% 14.4% 13.6% 12.7% 1,001 947 7.7% 879 839 739 749 727 650 614 663 577 535 572 486 448 448 403 319 + 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 Operating income* PBT* net profit* ROE** + excl
Slide 8: Contribution by Entity and Geography
Contribution by Entity and Geography 9M09 PBT 9M08 PBT Legal Entity % of PBT % of PBT (RM ‘mil) (RM ‘mil) CIMB Bank 1,747 64% 1,565 69% CIMB Niaga 558 21% 296 13% CIMB Thai 21 1% - - CIMB Labuan 171 6% 50 2% CIMB Islamic 122 4% 71 3% CIMB Investment Bank 57 2% 156 7% CIMB-GK 26 1% 3 - Others * 16 1%
Slide 9: Revenue By Segments
Revenue By Segments (RM ‘mil) 3Q09 2Q09 Q-o-Q 9M09 9M08 Y-o-Y Consumer Banking 899 889 1.1% 2,658 2,489 6.8% Corporate & Investment Banking 393 403 (2.5%) 1,142 1,315 (13.2%) Treasury & Investments 451 372 21.2% 1,385 1,025 35.1% GAM & Insurance 92 86 7.0% 246 162 51.9% CIMB Niaga 740 662 11.8% 1,91
Slide 10: Estimated PBT By Segment
Estimated PBT By Segment PBT 3Q09 2Q09 Q-o-Q 9M09 9M08 Y-o-Y (after Head Office cost allocation) RM 'mil RM 'mil % RM 'mil RM 'mil % Consumer Banking - Good Bank 122 125 (2.4%) 368 339 8.5% 24 20 26.3% 38 179 (78.8%) - Bad Bank 146 145 0.7% 406 518 (21.6%) Corporate & Investment Banking 146 181 (19.
Slide 11: Estimated PBT By Segment
Estimated PBT By Segment 3Q09 2Q09 CIMB Thai Consumer Banking CIMB Thai Consumer Banking 5% 15% -1% CIMB Niaga 16% 24% CIMB Niaga 25% Corporate & Inv Banking 15% Corporate & Inv Banking GAM & Insurance 20% 5% GAM & Insurance 4% Treasury & Treasury & Investments Investments 36% 36% 11
Slide 12: Consolidated Balance Sheet Changes
Consolidated Balance Sheet Changes 30th Sept 30th Jun 31st Dec (RM ‘mil) Q-o-Q YTD 09 09 08 Cash & short term funds 20,473 21,286 24,409 (4%) (16%) Securities purchased under resale agreements 4,090 5,481 3,311 (25%) 24% Deposits & placements with financial institutions 7,582 7,200 4,063 5% 87% Secu
Slide 13: Key Ratios
Key Ratios (%) 3Q09 3Q09 2Q09 2Q09 9M09 9M09 (excl. (excl. (excl. CIMB Thai) CIMB Thai) CIMB Thai) ROE 15.4 - 15.1 - 14.7 - NIM 2.76 - 2.66 - 2.71 - Fee income / total income 13.3 - 15.6 - 14.6 - Non-interest income/ total income 42.8 - 42.0 - 42.9 - Cost / income 51.6 50.0 54.6 54.3 53.0 51.6 Loan
Slide 14: Gross Loans Growth
Gross Loans Growth Y-o-Y 30th Sept 09 30th Jun 09 30th Sept 08 16.7% Products / Divisions loans (RM ‘bil) (RM ‘bil) (RM ‘bil) growth Consumer Banking 67.5 65.3 60.4 11.8% RM143.2 bil Mortgages 27.5 26.1 23.0 19.6% RM122.7 bil HP 11.2 11.2 11.0 1.8% * OD and TL 10.7 10.1 8.9 20.2% Credit cards 2.8 2.
Slide 15: Deposits Growth
Deposits Growth 13% Divisions / 30th Sept 09 30th Jun 09 30th Sept 08 Y-o-Y Products (RM ‘bil) (RM ‘bil) (RM ‘bil) Growth RM166.2 bil Retail 39.6 38.1 35.8 10.6% RM146.9 bil - Current 5.2 4.5 4.1 26.8% - Savings 9.7 9.6 9.2 5.4% Dec 08 Sept 09 - Fixed & structured 24.7 24.0 22.5 9.8% deposits Deposi
Slide 16: Asset Quality Ratios – CIMBGH Group
Asset Quality Ratios – CIMBGH Group Exclude CIMB Thai 100.0% 92.2% 91.5% 88.1% 19.0% 88.1% 90.0% 17.0% 78.5% 85.6% 86.7% 80.0% 86.8% 75.8% 73.2% 15.0% 70.4% 70.0% 65.9% 13.0% 61.5% 59.3% 60.0% 55.8% 57.5% 11.0% 50.0% Exclude 9.5% 8.6% 9.0% 7.9% CIMB Thai 9.1% 8.8% 7.2% 7.1% 4.8% 40.0% 6.5% 6.0% 6.1%
Slide 17: Loan Assets
Loan Assets 3Q09 2Q09 Singapore and Singapore and Others Others RM5.1 bil RM5.5 bil Thailand 4% Thailand 4% RM8.3 bil RM8.6 bil 6% 6% Indonesia Indonesia RM26.3 bil RM28.0 bil 19% 20% Malaysia Malaysia, RM97.0 bil RM101.1 bil 70% 71% Note: Others include overseas branches and Labuan. 17
Slide 18: LLP and Gross NPL
LLP and Gross NPL LLP by Country Gross NPL by Country Total (RM) 272 mil 302 mil 246 mil Total (RM) 7,540 mil 7,707 mil 7,867 mil 300 8,000 +179 +97 +52 319 416 22 74 140 250 +8 7,000 +49 +45 28 1,296 1,345 1,390 +36 6,000 200 64 82 644 +23 667 +70 737 69 -45 5,000 -84 +45 -52 RM 'mil RM 'mil 150 19
Slide 19: Annualised Credit Charge (YTD) by Country
Annualised Credit Charge (YTD) by Country To add new slide – to highlight how high international was Others 2.19% Thailand 1.74% Indonesia 1.10% Malaysia 0.42% Note: 19 Others include overseas branches and Labuan.
Slide 20: Gearing and Double Leverage
Gearing and Double Leverage BCHB Holding Company Further capital management 3Q09 2Q09 Timeline (RM ‘mil) initiatives Investment in subsidiaries 15,037 14,340 Sale of office building at CIMB Thai 4Q09 Bank External debt & borrowings 3,320 3,698 Sale & leaseback of CIMB Bank 1Q10 Share capital 3,582 3
Slide 21: CIMBGH: Operating Expenses
CIMBGH : Operating Expenses (RM ‘mil) 3Q09 2Q09 Q-o-Q 9M09 9M08 Y-o-Y Personnel 739 673 9.8% 2,060 1,495 37.8% Establishment 323 299 8.0% 911 617 47.6% Marketing 88 91 (3.3%) 253 201 25.9% Admin & General 289 351 (17.7%) 956 713 34.1% Total 1,439 1,414 1.8% 4,180 3,026 38.1% 21
Slide 22: Malaysian Consumer Bank
CIMB GROUP : 9M09 RESULTS MALAYSIAN CONSUMER BANK
Slide 23: Consumer Bank: 3Q09 Financials
Consumer Bank : 3Q09 Financials (RM ‘mil) 3Q09 2Q09 Q-o-Q 9M09 9M08 Y-o-Y Net interest income 708 697 1.6% 2,100 1,954 7.5% Non interest income 191 192 (0.5%) 558 535 4.3% Total income 899 889 1.1% 2,658 2,489 6.8% Overheads (direct + head (641) (631) 1.6% (1,904) (1,689) 12.7% office allocation) Lo
Slide 24: Consumer Bank: Good Bank
Consumer Bank : Good Bank (RM ‘mil) 3Q09 2Q09 Q-o-Q 9M09 9M08 Y-o-Y Net interest income 683 675 1.2% 2,035 1,830 11.2% Non interest income 188 192 (2.1%) 553 534 3.6% Total income 871 867 0.5% 2,588 2,364 9.5% Overheads (direct + head (604) (600) 0.7% (1,802) (1,595) 13.0% office allocation) Loan pr
Slide 25: Consumer Revenue & LLP Trend
Consumer Revenue & LLP Trend 1,000 900 800 181 192 191 188 175 184 700 161 157 163 600 RM 'mil 500 400 678 702 694 697 708 629 654 300 616 623 195 200 163 128 123 117 79 110 115 78 100 - 3Q07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q09 Net interest / financing income Fee & commission income LLP 2
Slide 26: Malaysian Consumer Market Shares
Malaysian Consumer Market Shares Market shares 30th Jun 2009 30th Jun 2008 Ranking* 13.3% 12.0% Mortgages - Residential 2 - Non-residential 13.8% 11.3% HP^ 9.6% 10.4% 4 10.6% 10.7% Credit Cards - Loan base 3 - Card Base 10.1% 9.7% Retail Deposits~ 9.2% 9.1% 3 SME Loan 12.6% 12.5% 3 ^ Based on loans
Slide 27: Retail Banking Indicators (1)
Retail Banking Indicators (1) Retail Loans – Housing Loans and Business Premises Loans RM'mil Drop in sales mainly due to Drop in sales mainly Sales spiked due Sales slowed in 3Q09 due to less sales campaigns 1,200 festive season and shorter due to softer property to various sales launched and Hari
Slide 28: Retail Banking Indicators (2)
Retail Banking Indicators (2) Credit Card – Card Base OTC vs SST 1,200 13% 12% 12% 12% 12% 1,155 1,160 12% 11% 11% 11% 11% 1,120 1,113 1,102 11% RM '000 1,074 10% 10% 1,080 10% 1,053 9% 9% 1,040 9% 9% 8% 1,000 J an-09 F eb-09 M ar-09 A pr-09 M ay-09 J un -0 9 J ul-09 A ug -0 9 Sep -0 9 Sep-08 D ec -
Slide 29: Treasury & Investment Banking
CIMB GROUP : 9M09 RESULTS TREASURY & INVESTMENT BANKING
Slide 30: Treasury and Investment Financials
Treasury and Investment Financials (RM ‘mil) 3Q09 2Q09 Q-o-Q 9M09 9M08 Y-o-Y Net interest / financing income 227 203 11.8% 595 395 50.6% Fee income 12 1 1100% 15 15 0% Net trading income 89 157 (43.3%) 457 149 206.7% Total income 328 361 (9.1%) 1,067 559 90.9% Provision (4) 1 (500%) (2.0) (10) (80%)
Slide 31: Corporate & Investment Banking Financials
Corporate & Investment Banking Financials (RM ‘mil) 3Q09 2Q09 Q-o-Q 9M09 9M08 Y-o-Y Net interest / financing income 194 176 9.7% 550 563 (2.4%) Fee & commission income 100 106 (5.9%) 324 389 (16.6%) Net trading income 21 45 (52.5%) 74 157 (52.5%) Brokerage income 79 76 3.9% 193 206 (6.2%) Total inco
Slide 32: Malaysian Market Shares (YTD)
Malaysian Market Shares (YTD) M&A ADVISORY* PRIMARY BOND MARKET AmInvestment 18.1% RM 3,550 CIMB 32.9% RM 13,276 CIMB 11.8% RM 2,322 AmInvestment 22.6% RM 9,103 Kenanga 7.5% RM 1,476 Maybank 12.6% RM 5,083 OSK 7.5% RM 1,473 RHB 12.0% RM 4,842 (in millions) (in millions) BROKING IPO CIMB 9.8% RM 44,4
Slide 33: Regional Market Share (YTD)
Regional Market Share (YTD) Singapore Singapore Indonesia Indonesia •• Rank Rank55for forstock stockbroking, broking,8.70% 8.70%market marketshare share •• Rank Rank55for forstock stockbroking, broking,4.08% 4.08%market marketshare share •• No. No.11advisor advisorranking rankingfor formid midmarket
Slide 34: Asset Management & Insurance
CIMB GROUP : 9M09 RESULTS ASSET MANAGEMENT & INSURANCE
Slide 35: Group's Asset Management & Insurance
Group's Asset Management & Insurance PBT (RM 'mil) 3Q09 2Q09 Q-o-Q 9M09 9M08 Y-o-Y CIMB-P Group 9 9 - 23 32 (28%) Wholesale 8 2 >100% 15 4 >100% Insurance 23 30 (23%) 76 (24) >100% Total 40 41 (2%) 114 12 >100% AUM • 3Q09 GAM AUM increased 18% QoQ. Higher UT sales in institutional and wholesale fund
Slide 36: CIMB Niaga
CIMB GROUP : 9M09 RESULTS CIMB NIAGA
Slide 37: CIMB Niaga: Earnings Summary
CIMB Niaga: Earnings Summary (IDR ‘bil) 3Q09 2Q09 Q-o-Q 9M09 9M08 Y-o-Y Net Interest Income 1,629 1,613 1.0% 4,612 3,524 30.9% Non Interest Income 400 342 16.8% 990 839 18.0% Operating Income 2,029 1,955 3.8% 5,602 4,363 28.4% Overhead Expenses (1,019) (938) 8.6% (2,797) (2,786) 0.4% Pre Provision O
Slide 38: CIMB Niaga: Balance Sheet Changes
CIMB Niaga : Balance Sheet Changes (IDR ‘bil) 30th Sept 09 31st Dec 08 YTD Placements & Other MS 10,513 12,860 (18.2%) Government Bonds 8,553 8,263 3.5% Loans 72,076 72,220 (0.2%) Other Assets 9,944 9,854 0.9% Total Assets 101,086 103,198 (2.0%) Low Cost Fund (CASA) 39,936 36,140 10.5% Time Deposits
Slide 39: CIMB Niaga: Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 3Q09 2Q09 Q-o-Q 3Q08 Y-o-Y ROE 17.4 17.5 (0.1%) 16.9 0.5% NIM 6.41 6.29 0.1% 4.75 1.7% Cost to Income 50.2 48.0 2.2% 59.4 (9.2%) Loan Loss Coverage* 96.3 94.9 1.4% 82.7 13.6% Loan Loss Charge* 0.3 0.5 (0.2%) 0.1 0.2% Gross NPL ratio* 2.8 2.7 0.1% 2.3 0.5% Ne
Slide 40: CIMB Niaga Rankings And Market Shares
CIMB Niaga Rankings And Market Shares 5th largest in terms of assets* 5th largest in terms of deposits 346.1 277.4 Aug ‘09 Aug ‘09 268.7 266.2 228.1 219.1 204.4 165.5 IDR 'tril Rp 'tril 100.5 97.2 80.6 69.7 68.0 54.4 54.3 53.1 52.0 44.5 43.7 36.3 Mandiri BRI BCA BNI CIMB Danamon Panin Permata BII Ci
Slide 41: CIMB Niaga Highlights
CIMB Niaga Highlights 100% of ex-Niaga and ex-LippoBank New product: branches, ATMs, and SSTs have all X-TRA DINAMIS: A featured CIMB Niaga’s brand by 9 Savings and Mortgage September 2009 bundling product CSR Initiatives CIMB Group launched “CIMB – The Star Padang Relief Fund” fund raising program
Slide 42: CIMB Thai
CIMB GROUP : 9M09 RESULTS CIMB Thai
Slide 43: CIMB Thai: Earnings Summary
CIMB Thai : Earnings Summary (Baht ‘mil) 3Q09 2Q09 Q-o-Q 9M09 (Before GAAP Adjustments) Net Interest Income 1,373 1,164 18.0% 3,628 Non Interest Income 557 632 (11.9%) 1,731 Operating Income 1,930 1,796 7.5% 5,359 Overhead Expenses 1,318 1,373 (4.0%) 4,276 Pre Provision Operating Profit 612 423 44.7
Slide 44: CIMB Thai: Balance Sheet Changes
CIMB Thai : Balance Sheet Changes (Baht 'mil) 30th Sept 09 31st Dec 08 YTD Placements & Other MS 25,571 66,196 (61.3%) Government Bonds (Net) 11,117 22,691 (50.9%) Loans (Net) 73,307 83,657 (12.2%) Other Assets 16,237 39,833 (59.1%) Total Assets 126,232 212,377 (40.4%) Low Cost Fund (CASA) 24,521 22
Slide 45: CIMB Thai: Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 3Q09 2Q09 Q-o-Q ROE 24.2 (15.5) 256.2% NIM 4.09 2.68 52.6% Cost to Income 67.6 77.0 (12.2%) Loan Loss Coverage 60.3 63.9 (5.6%) Loan Loss Charge 0.7 3.0 (76.7%) Gross NPL ratio 16.1 16.0 0.6% Net NPL ratio 8.4 7.8 7.7% Loan to Deposit 83.4 71.9 16.0% CAR* 12.
Slide 46: New Products and Services
New Products and Services Actual % of target BTAM Originated Products (THB ‘mil) achieved BT Treasury Daily 2,056 103% 101 Montri Property Fund 603 100% SF Daily A Fund 117 117% BT-FIF Gold Linked 5 Fund 460 109% BT-FIX 6/1 300 100% ASEAN Equity Fund 107 101% Total 3,643 CIMBT Treasury Originated Pr
Slide 47: Other Highlights
CIMB GROUP : 9M09 RESULTS OTHER HIGHLIGHTS
Slide 48: CIMB Islamic – Dual Banking is Successful
CIMB Islamic – Dual Banking is Successful Ranking of Total Islamic Assets as at June 2009 • 3Q09 gross financing assets grew 29% to RM12.4 Market bil QoQ mainly due to increase in Corporate, Auto Total Assets Share Finance and Retail others. Rank Company RM ‘mil % • Total Islamic financing up 177% Y
Slide 49: Global Islamic Investment Banking Leadership
Global Islamic Investment Banking Leadership 3Q09 Global Sukuk League Table 3Q09 Domestic Sukuk League Table Market Market Rank Company USD ‘mil Rank Company USD ‘mil Share, % Share, % 1 CIMB 1,706 27.3 1 CIMB 3,628 44.0 2 HSBC 740 11.9 2 Maybank Investment 2,250 27.3 3 Maybank Investment 645 10.3 3
Slide 50: Growth in Islamic Share
Growth in Islamic Share Mortgages CIMBHP Express 3,000 3,500 2,500 3,000 2,500 2,000 RM 'mil 2,000 RM 'mil 1,500 1,500 3,066 2,428 1,000 2,532 1,677 1,000 1,921 1,086 1,344 500 500 1,032 734 540 - - Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Corporate Financing Business Fi
Slide 51: Corporatisation of Bad Bank
Corporatisation of Bad Bank • Separate legal entity under CIMB Group to serve as a platform to consolidate ownership of NPL • 1st tranche will include all transferable NPL under “Bad Bank” (comprising about RM1b net loans) • Prelude to creation of “Regional Bad Bank”, and facilitates participation b
Slide 52: Bank of Yingkou
Bank of Yingkou • Official appointment of senior management personnel to the BOYK Board of Directors and senior management teams (Risk & Credit, IT & Finance etc), formal appointment awaiting CBRC clearance • With the success of the Shenyang branch, BOYK plans to further expand to other parts of Chi
Slide 53: Singapore Retail Banking – Early indicators promising
Singapore Retail Banking – Early indicators promising Retail Banking launched on 29 September 2009 2010 Targets: (1) Aggressively grow Retail Banking by leveraging on low cost base, (2) Target ASEAN customers and businesses and (3) Grow Islamic Banking franchise Total Retail Deposits Home Loan Accep
Slide 54: CSR Initiatives in 3Q09
CSR Initiatives in 3Q09 - 2-31 October 2009 - Over RM3.8 million collected - A coordinated effort in 4 countries involving 1,150 retail branches - RM350,000 grant to Mercy Malaysia for emergency relief and balance to be used to rebuild schools in Padang and Padang Pariaman Other events – CIMB Founda
Slide 55: Other achievements / happenings
Other achievements / happenings • Upgrade in RAM ratings from AA2 to AAA. CIMB Bank’s current credit ratings are as follows: Long Term Local Rating Outlook RAM AAA Stable MARC AA+ Stable Long Term Int Rating S&P BBB+ Stable FITCH BBB+ Stable MOODY’S A3 Stable • Launch of Menara Bumiputra-Commerce, t
Slide 56: Notable Awards (YTD)
Notable Awards (YTD) 1 1 1 LifetimeAchievement Lifetime AchievementAward Award--Dato’ Dato’Sri Sri BestInvestment InvestmentBank Bank BestDomestic DomesticBank Bank Nazir Razak Best Best Best Managed Nazir Razak CompanyininMsia Msia(#2) (#2) Best Islamic Bank ininAsia Best Islamic Bank Asia Best Dom
Slide 57: Closing Remarks
CIMB GROUP : 9M09 RESULTS CLOSING REMARKS
Slide 58: Targets for 2009
Targets for 2009 9M09 (Annualised) 2009 Target On Track ROE 14.7% 14-15% TSR +90% vs KLCI +37% > KLCI -* Dividend 18.5 sen (single tier) Total loans growth** 13% 8% Retail deposit# 11% 18% r Loan loss charge 0.8% 0.9% Tier 1 (at bank) 13.5% 10% RWCR (at bank) 14.0% 12% Double leverage 119.2% 115% -
Slide 59: Final Remarks
Final Remarks • On track towards revised ROE target of 14-15% • Strong capital markets deal flow in 4Q09 • CASA and retail deposit accumulation still below targets • Loans growth may soften in 4Q as Malaysian corporates have been actively accessing DCM • Malaysian consumer bank sales will also be af
Slide 60: Thank You
THANK YOU 60
CIMB Group Holdings Berhad — 9M 2009 Earnings Presentation on 6ix