Cimb Group Holdings Bhd · MYX:CIMB

Cimb Group Holdings Bhd — Q1 2018 Earnings Presentation

37 slides from Cimb Group Holdings Bhd's earnings presentation, May 30, 2018

1. Slide 1: Analyst Presentation 1Q18 Results

   CIMB Group Analyst Presentation 1Q18 Results 30 May 2018

2. Slide 2: Key Financial Highlights

   Key Financial Highlights Net Net Profit (RM) ^ ROE *^ Gross Loan (RM) ~ 1,306mil 10.2% 323.1bn +10.7% Y-o-Y -10bps Y-o-Y +0.5% Y-o-Y Cost-to-Income ^ Loan Loss Charge * CET1 49.8% 0.49% 11.7% -280bps Y-o-Y -3bps Y-o-Y +20bps Y-o-Y Notes: ^ Including CSI gain of RM152mil in 1Q18 * Annualised ~ Exclud

3. Slide 3: Key Business/Operational Highlights

   Key Business/Operational Highlights Sustained Consumer PBT momentum Weaker Wholesale revenue in 1Q18 (RM ’mil) (RM’mil) 1,600 1,484 1,236 56% 61% 66% 39% 44% 34% Loan Loss Charge* in the right direction Continued productivity improvement * * RM152 million gain on 70bps impact on sale of 50% of CSI,

4. Slide 4: PBT By Segment

   PBT By Segment  Consumer Banking remains primary driver  Commercial Banking’s recalibration progressing 1Q18 well Group PBT RM1,743mil  Weaker capital markets in 1Q18 impacted 8.0% Wholesale Banking  GAMI performed well, with Group Funding higher from gain from sale of 50% of CSI Consumer Commer

5. Slide 5: PBT By Country

   PBT By Country  Malaysia: Consumer the main driver  Indonesia: Positive YoY growth excluding FX effects  Thailand: Progressive growth in Consumer  Singapore: Lower YoY due to FX effect and deconsolidation of CSI Malaysia Indonesia Thailand Singapore Y-o-Y 13.4% 6.5% 5.9% 10.9% Q-o-Q 7.4% 32.3% >

6. Slide 6: CIMB Group 1Q18 Financials

   CIMB Group 1Q18 CIMB Group 1Q18 Financials Financials 6

7. Slide 7: Quarterly Earnings Trend

   Quarterly Earnings Trend ^ *RM ’mil * Note: ^ Including CSI gain of RM152mil in 1Q18 *Annualised 7

8. Slide 8: Operating Income

   Operating Income RM ’mil Y-o-Y Q-o-Q  1Q18 operating income impacted by slower Net interest income 2,938 -3.5% -1.9% capital markets and deconsolidation of CSI Non interest income 1,365 ^ +3.8% -10.3%  Softer NII from Commercial and Total 4,303 -1.3% -4.7% Wholesale Banking  NOII supported by RM1

9. Slide 9: Operating Expenses

   Operating Expenses RM ’mil Y-o-Y Q-o-Q  Cost management efforts continue to yield Personnel 1,246 -2.4% -6.7% results  Cost reduction from Establishment 485 -16.4% +1.3% deconsolidation of CSI (c.RM150 million) per Marketing 58 -12.1% -35.6% quarter  CI ratio at 49.8% below Admin & General 352 -5

10. Slide 10: Loan Provisions

    Loan Provisions -30.7% Q-o-Q -5.4% Y-o-Y  Loans provisions aided by improvements in Consumer (-52.1% YoY) and Commercial RM ’mil Banking (-14.3% YoY)  Wholesale Banking provisions higher YoY from writebacks in 1Q17  Allowance coverage improved to 105.3% post-MFRS9 Allowance Coverage (%) ^ • Impro

11. Slide 11: Gross Loans

    Gross Loans RM ’bil Y-o-Y Q-o-Q Loans-to-Deposit Ratio Consumer Banking 169.1 +3.2% +0.7% Commercial Banking 42.3 +1.0% -0.9% Wholesale Banking 111.7 -3.6% +0.9% + Total 323.1 +0.5% +0.6% Loan Growth by Country (Y-o-Y) ^ ** +7.9% +4.0% Others -3.0% 31 Mar-18 # RM323.1bil ^ ^ ~ +1.8% +3.6% +5.3% Note

12. Slide 12: Deposits

    Deposits RM ’bil Y-o-Y Q-o-Q CASA Ratio Consumer Banking 166.1 +6.9% +0.6% Commercial Banking 42.0 -8.3% -8.5% Wholesale Banking 155.3 +1.6% +6.4% Total 363.4 +2.7% +1.8% Deposits Growth by Country (Y-o-Y) ^ ** +8.9% -4.0% Others +5.5% 31 Mar-18 RM363.4bil ^ ^ ~ +8.8% +0.6% +7.0% Notes: ~ Excluding

13. Slide 13: Financial Impact of MFRS 9

    Financial Impact of MFRS 9 RM ’mil 31 Dec-17 1 Jan-18 Impact 31 Mar-18 Allowance for Impairment Losses/ 7,748 9,945 9,479 ECL on Loans & Financing Shareholders’ Funds 48,245 46,431 46,952 Regulatory Reserves 1,503 1,519 1,585 Retained Earnings 24,684 23,628 24,868 CET1 Allowance Coverage * * * 31 De

14. Slide 14: Capital and Liquidity Management

    Capital and Liquidity Management Total Capital  CET1 remains strong at 11.7% post-MFRS9 impact of c.70bps  Sale of 50% of CSI provided 14bps CET1 uplift  CET1 target remains at 12.0% for end-2018 ^ # ~  LCR remains Liquidity Coverage Ratio comfortably above 100% for all banking entities CIMB Ban

15. Slide 15: PBT by Segments

    PBT by Segments (RM ‘mil) 1Q18 Y-o-Y Q-o-Q Consumer Banking (48.7%) 848 51.2% 30.1% Commercial Banking (7.0%) 122 (14.1%) 390.5% Wholesale Banking (28.1%) 490 (32.6%) (32.1%) Corporate Banking (19.1%) 333 (29.6%) (27.5%) Treasury & Markets ~ (7.0%) 123 (51.6%) (32.8%) Investment Banking + (2.0%) 34

16. Slide 16: Consumer Banking

    Consumer Banking (RM ‘mil) 1Q18 Y-o-Y Q-o-Q Net interest income 1,494 3.5% 4.5% Non interest income 581 20.3% 8.4% Operating income 2,075 7.7% 5.6% Gross Loans* RM169.1bil Overhead expenses (1,094) 0.6% (2.4%) 3.2% PPOP 981 16.9% 16.2% (Provisions) / Writeback (134) (52.1%) (30.9%) Share of JV / Ass

17. Slide 17: Commercial Banking

    Commercial Banking ^ (RM ‘mil) 1Q18 Y-o-Y Q-o-Q Net interest income 420 (6.3%) (5.0%) Non interest income 96 (22.0%) (5.9%) Operating income 516 (9.6%) (5.1%) Gross Loans* RM42.3bil Overhead expenses (286) (5.6%) 1.4% 1.0% PPOP 230 (14.2%) (12.2%) (Provisions) / Writeback (108) (14.3%) (64.5%) Share

18. Slide 18: Wholesale Banking

    Wholesale Banking (RM ‘mil) 1Q18 Y-o-Y Q-o-Q ^ Net interest income 818 (9.9%) (9.2%) Non interest income 418 (27.4%) (40.2%) Operating income 1,236 (16.7%) (22.8%) Gross Loans* RM111.7bil Overhead expenses (575) (19.2%) (22.7%) 3.6% PPOP 661 (14.4%) (22.8%) (Provisions) / Writeback (173) 284.4% 29.1

19. Slide 19: Group Asset Management & Investments

    Group Asset Management & Investments Public Markets AUM (RM ‘mil) 1Q18 Y-o-Y Q-o-Q (RM ’mil) Public Markets 42 44.8% - +8.0% Q-o-Q +13.8% Y-o-Y Private Markets 18 157.1% 460.0% Direct Investments & Others 18 350.0% 357.1% Private Equity Fund - (100%) (100%) Management Passive Fund Investments - - (1

20. Slide 20: CIMB Islamic

    CIMB Islamic XXX Islamic Financing ^ (RM ‘mil) 1Q18 Y-o-Y Q-o-Q RM ’bil Net financing income 434 20.9% 6.1% +10.2% Q-o-Q +28.9% Y-o-Y Non financing income 110 3.8% (40.5%) Operating income 544 17.0% (8.4%) Overhead expenses (187) 12.7% 3.9% PPOP 357 19.4% (13.8%) (Provisions) / Writeback (94) 571.4%

21. Slide 21: Other Updates

    Other Updates CIMB Group 1Q18 Financials 21

22. Slide 22: T18 Financial Targets Scorecard

    T18 Financial Targets Scorecard T18 Financial Progress T18 Targets Highlights Cost-to- On track to Income meet target CET1 On track to meet target ^# ROE On track to meet target Income Contribution On track to From Consumer meet target & Commercial 2015* 2016 2017 1Q18 Notes: * Based on BAU numbers

23. Slide 23: Corporate Responsibility

    Corporate Responsibility Grants Disbursed as at Mar 2018 CIMB Non-CIMB Foundation Foundation* RM 1,463,150 RM 985,431 Launch of CIMB Gymnastic Knowledge Centre Rock Melon Agricultural Development Programme Programme at Bann Nong Programme in Pahang Kaem, Thailand Note: * Including CIMB Islamic, CIMB

24. Slide 24: Final Remarks

    Final Remarks CIMB Group 1Q18 Financials 24

25. Slide 25: Final Remarks

    Final Remarks  On track to meet 2018 targets 1Q18 FY18 Target  Loan growth expected to improve # ROE 10.2% ^ 10.5%  NII outlook remains steady; NOII depends on capital Dividend markets - 40% - 60% Payout Ratio  Focus on cost discipline, asset quality and capital Total Loans 0.5% management 6.0%

26. Slide 26: Appendices

    Appendices CIMB Group 1Q18 Financials 26

27. Slide 27: Earnings Summary

    Earnings Summary (RM ’mil) 1Q18 1Q17 Y-o-Y 4Q17 Q-o-Q Net interest income 2,938 3,046 (3.5%) 2,994 (1.9%) Non interest income 1,365 ^ 1,315 3.8% 1,521 (10.3%) Operating income 4,303 4,361 (1.3%) 4,515 (4.7%) Overhead expenses (2,141) (2,296) (6.8%) (2,307) (7.2%) PPOP 2,162 2,065 4.7% 2,208 (2.1%) L

28. Slide 28: Key Ratios

    Key Ratios (%) 1Q18 1Q17 Y-o-Y 4Q17 Q-o-Q ROE ~ 10.2 ^ 10.3 8.8 NIM ~** 2.57 2.72 2.53 Non-interest income / total income 31.7 ^ 30.2 33.7 Cost to income 49.8 ^ 52.6 51.1 Allowance coverage (including regulatory reserve) 105.3 93.2 84.1 Allowance coverage (excluding regulatory reserve) 90.2 79.6 70.

29. Slide 29: PBT by Segment and Country

    PBT by Segment and Country Consumer Banking 1Q18 1Q17 Y-o-Y 4Q17 Q-o-Q Malaysia (RM ‘mil) 618 510 21.2% 478 29.3% Indonesia (IDR ‘bil) 349 (75) 565.3% 297 17.5% Thailand (THB ‘mil) 796 411 93.7% 428 86.0% Singapore (SGD ‘mil) 8 6 33.3% 7 14.3% Others * (RM ‘mil) 5 4 25.0% 5 - PBT (RM ‘mil) 848 561 5

30. Slide 30: 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 * 7.6% 1.8% Consumer Gross Loans* (6.0%) (1.1%) Mortgages 10.7% 2.3% Mortgages 9.9% 1.7% Term loans 3.9% 1.9% Auto (39.6%) (9.0%) Auto 3.6% 0.7% Credit cards 0.7% (1.0%) Credit cards 5.6% (3.4%) Consumer

31. Slide 31: Group Funding

    Group Funding (RM ‘mil) 1Q18 1Q17 Y-o-Y 4Q17 Q-o-Q Net interest income 198 239 (17.2%) 214 (7.5%) Non interest income 153 ^ 35 337.1% 29 427.6% Operating income 351 274 28.1% 243 44.4% Overhead expenses (107) (122) (12.3%) (81) 32.1% PPOP 244 152 60.5% 162 50.6% (Provisions) / Writeback (21) (4) 425

32. Slide 32: CIMB Niaga : Earnings Summary

    CIMB Niaga : Earnings Summary (IDR ‘bil) 1Q18 1Q17 Y-o-Y 4Q17 Q-o-Q Net interest income 3,033 3,096 (2.0%) 3,034 0.03% Non interest income 992 716 38.5% 1,034 (4.1%) Operating income 4,025 3,812 5.6% 4,068 (1.1%) Overhead expenses (1,955) (1,873) 4.4% (1,932) 1.2% PPOP 2,070 1,939 6.8% 2,136 (3.1%)

33. Slide 33: CIMB Niaga : Key Ratios

    CIMB Niaga : Key Ratios (Consolidated, %) 1Q18 1Q17 Y-o-Y 4Q17 Q-o-Q ROE ^ 9.4 7.4 8.5 NIM ^ 5.10 5.71 5.20 Cost to Income 48.6 49.1 47.5 Loan Loss Coverage # 105.5 117.6 107.2 Allowance Coverage 79.1 89.5 77.5 Loan Loss Charge ^ 1.8 2.3 2.0 Gross Impaired Loans Ratio 4.6 5.1 5.1 Gross NPL (BI Defin

34. Slide 34: CIMB Thai : Earnings Summary

    CIMB Thai : Earnings Summary Before GAAP Adjustments 1Q18 1Q17 Y-o-Y 4Q17 Q-o-Q (THB ‘mil) Net interest income 2,596 2,463 5.4% 2,598 (0.1%) Non interest income 787 667 17.9% 718 9.6% Operating income 3,382 3,130 8.1% 3,316 2.0% Overhead expenses (1,933) (1,747) 10.6% (2,181) (11.4%) PPOP 1,449 1,38

35. Slide 35: CIMB Thai : Key Ratios

    CIMB Thai : Key Ratios (Consolidated, %) 1Q18 1Q17 Y-o-Y 4Q17 Q-o-Q ROE ^ 2.1 1.8 (2.0) NIM ^ 3.98 3.77 3.91 Cost to Income 57.2 55.8 65.8 Loan Loss Coverage ** 92.3 81.2 93.2 Loan Loss Charge ^ 2.3 2.5 2.5 Gross NPL ratio ** 5.2 5.3 4.8 Net NPL ratio ** 2.7 3.0 2.4 ROA 0.2 0.2 0.2 Loan to Deposit 1

36. Slide 36: IB Market Share and Ranking (1)

    IB Market Share and Ranking (1) 1Q18 1Q17 1Q18 1Q17 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 29.0% 1 21.6% 3 DCM 7.2% 6 18.7% 1 Sukuk 28.9% 1 26.8% 2 M&A - - 5.1% 2 M&A 6.6% 6 13.8% 1 Syndication ^ 2.4% 11 1.9% 13 Syndication ^ 0.2% 18 1.7% 18 IPO - - 23.0

37. Slide 37: IB Market Share and Ranking (2)

    IB Market Share and Ranking (2) 1Q18 1Q17 1Q18 1Q17 Market Market ASEAN Market Market Rank Rank Rank Rank Share Share Share Share M&A - - 1.2% 9 DCM 9.8% 2 12.5% 1 Syndication ^ - - - - M&A 0.9% 20 3.0% 9 IPO - - 0.5% 38 Syndication ^ 3.7% 11 1.3% 22 ECM 0.6% 21 0.1% 72 IPO - - 19.7% 1 Cash Equities

CIMB Group Holdings Berhad — Q1 2018 Earnings Presentation on 6ix