Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — FY2008 Earnings Presentation
50 slides from Cimb Group Holdings Bhd's earnings presentation, February 2009
Slide 1: BCHB Group Full Year 2008 Results
BCHB GROUP FULL YEAR 2008 RESULTS Analyst Presentation
Slide 2: Agenda
Agenda 1) BCHB Group FY08 Financials 2) Malaysian Consumer Bank 3) Islamic Banking 4) Investment Banking & Treasury 5) Asset Management & Insurance 6) CIMB Niaga 7) BankThai 8) Other Highlights 9) Summary & Outlook 2
Slide 3: BCHB Group FY08 Financials
BCHB GROUP : FY08 RESULTS BCHB GROUP FY08 FINANCIALS
Slide 4: 2008 Highlights
2008 Highlights Net profit of RM 1.95 bil, 30% lower Y-o-Y, and EPS of 57.8 sen Dividend per share of 20.7 sen (less tax) and 4.3 sen tax-exempt (payable 31 March 2009) Malaysian consumer turnaround offset large drop in capital markets contribution 4Q08 impacted by M&A related charges, CIG r
Slide 5: Earnings Summary
Earnings Summary RM ‘mil 4Q08 3Q08 Q-o-Q FY08 FY07 Y-o-Y Net interest income 1,286 1,148 12% 4,660 4,396 6% Non interest income 616 535 15% 3,083 3,906 (21%) Gain/(Loss) on disposal (20) - n/a (2) 709 (100%) of subsidiaries Operating income 1,882 1,683 12% 7,741 9,011 (14%) Loan provisions (263) (16
Slide 6: Earnings History
Earnings History 9,011 7,741 6,393 20.0% 13.9% 4,723 12.3% 4,155 3,686 8.9% 8.7% 2,793 2,716 2,002 1,952 1,504 1,310 1,053 735 827 2004 2005 2006 2007 2008 Operating income* PBT* Net profit* ROAE * Amounts denoted in RM million 6
Slide 7: Contribution by Entity
Contribution by Entity CIMB RM ‘mil CIMB Niaga BCHB BCHB Group Universal Bank Revenue 6,429 1,332 (20) 7,741 Profit/ (loss) before tax 2,431 302 (17) 2,716 Net profit/ (loss) 1,813 129 10 1,952 PBT Overseas / Domestic share of PBT CIMB Universal Bank % of PBT (RM ‘mil) Bank 2,044 85% Islamic 98 4% C
Slide 8: M&A Related Charges
M&A Related Charges RM ‘mil FY08 FY07 Y-o-Y Net profit 1,952 2,793 (30%) One-off (gains)/losses : (Gain)/Loss of disposal of subsidiaries - Insurance - (625) - Others 2 (84) CIMB Niaga merger costs 69 112 - -674 SBB merger costs - 35 Share of loss in BankThai 41 - Core net profit 2,064 2,119 (3%) Co
Slide 9: 4Q Accounting for CIMB Niaga & BankThai
4Q Accounting for CIMB Niaga & BankThai CIMB NIAGA 4Q08 • CIMB Niaga adopts full merger consolidation for Net profit/ (loss) after MI RM ‘mil Bank Lippo from FY08. Financials are restated Niaga (3 months) 26 historically from FY07 Lippo (2 months) 39 • BCHB accounted for 2-month impact of Niaga- Mer
Slide 10: Quarterly Earnings History
Quarterly Earnings History 2,482 2,140 2,019 2,017 1,965 20.3% 1,902 1,836 17.4% 1,683 16.5% 13.6% 964 13.0% 929 11.4% 11.2% 11.0% 739 695 745 749 632 607 529 577 535 572 492 448 449 403 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Operating income* Core PBT* Core net profit* ROAE** Excluding M&A related
Slide 11: Revenue By Segment
Revenue By Segment RM ‘mil 4Q08 3Q08 Q-o-Q FY08 FY07 Y-o-Y Consumer Banking 886 869 2% 3,378 3,081 10% Corporate & Investment Banking 331 360 (8%) 1,644 2,130 (23%) Treasury & Investments 256 106 142% 1,240 1,560 (21%) GAM & Insurance 0 40 (100%) 162 383 (58%) CIMB Niaga 465 293 59% 1,332 1,189 12%
Slide 12: Estimated PBT By Segment
Estimated PBT By Segment PBT 4Q08 3Q08 Q-o-Q FY08 FY07 Y-o-Y (after Head Office cost allocation) RM mil RM mil % RM mil RM mil % Consumer Banking 193 231 (16%) 706 (7) >100% Corporate & Investment Banking 211 180 17% 841 1,227 (31%) Treasury & Investments 162 89 83% 960 1,303 (26%) 566 500 13% 2,507
Slide 13: Estimated PBT By Segment
Estimated PBT By Segment FY08 FY07 CIMB Niaga, CIMB Niaga, Consumer , Consumer, -1% 14% 13% 25% GAM & Ins, GAM & Ins, 4% -2% Corporate & Investment Bkg , Treasury & 43% Investments , Corporate & Treasury & 34% Investment Bkg , Investments , 29% 41% * Excluding M&A related charges 13
Slide 14: Consolidated Balance Sheet Changes
Consolidated Balance Sheet Changes RM ‘mil 31st Dec 08 30th Sep 08 31st Dec 07 Q-o-Q Y-o-Y Cash & short term funds 24,203 33,011 30,525 (27%) (21%) Securities purchased under resale agreements 3,517 2,038 4,371 73% (20%) Deposits & placements with financial institutions 4,063 2,411 6,486 69% (37%) S
Slide 15: Key Ratios
Key Ratios (% unless indicated) 4Q08 3Q08 2008 2007 ROAE 11.0 11.4 13.0 15.6 Net interest margin (excl. IIS) 2.5 2.3 2.3 2.4 Fee income/ total income 16.6 21.5 18.3 17.6 Drop in capital market activities Non-interest income/ total income 32.4 31.8 39.8 47.0 Overheads higher in line with inclusion of
Slide 16: Gross Loans grew at 21.3% over the year
Gross Loans grew at 21.3% over the year Gross Gross Gross loans as loans as loans as at at at Y-o-Y Products / Divisions loans 31st Dec 30th Sep 31st Dec growth 08 08 07 (RM ‘bil) (RM ‘bil) (RM ‘bil) 21.3% Consumer Banking 62.0 60.4 55.3 12.2% Mortgages 24.2 23.0 19.1 26.3% - Of which performing 22.
Slide 17: Deposits grew at 21% over the year
Deposits grew at 21% over the year 31st Dec 08 30th Sep 08 31st Dec 07 Y-o-Y Products / Divisions (RM ‘bil) (RM ‘bil) (RM ‘bil) growth 21.0% Retail 36.5 35.8 30.6 19.3% - Current 4.3 4.1 3.7 16.2% - Savings 9.3 9.2 8.1 14.8% - Fixed & structured 22.9 22.5 18.8 21.8% deposits RM126.9bil RM153.4bil Bu
Slide 18: Asset Quality Ratios Improved Sharply
Asset Quality Ratios Improved Sharply 90.0% 88.1% 20.0% 80.0% 76.6% 18.0% 71.9% 74.2% 69.3% 16.0% 70.0% 65.1% 61.0% 14.0% 60.0% 55.2% 57.5% 59.0% 54.9% 55.8% 54.2% 12.0% 50.0% 9.8% 9.0% 9.5% 9.1% 10.0% 8.7% 8.8% 8.6% 40.0% 7.9% 7.2% 7.1% 8.0% 6.2% 6.5% 30.0% 5.9% 6.0% 6.2% 5.7% 5.5% 5.5% 5.1% 4.9% 6
Slide 19: Bad Bank Did Good
Bad Bank Did Good G-SAM recovery portfolio * 31st Dec 08 31st Dec 07 (RM ‘bil) Legally Claimable Balance 11.18 12.9 Net book value 1.32 2.73 Estimated FSV (Collateral Value) 3.59 5.13 *Gross NPL 4.81 6.39 Gross / Net NPL ratios (%) 76.3% / 45.6% 83.2% / 70.6% Good Bank portfolio (CIMB Bank) 31st Dec
Slide 20: BCHB: Operating Expenses
BCHB : Operating Expenses RM ‘mil 4Q08 3Q08 Q-o-Q FY08 FY07 Y-o-Y Personnel 427 468 (9%) 1,921 2,161 (11%) Establishment 256 192 33% 873 789 11% Marketing 105 76 38% 306 287 7% Admin & general 210 194 7% 924 942 (2%) Total costs 998 930 7% 4,024 4,179 (4%) • 4Q08 increases reflect 2-month impact of
Slide 21: Capital Management in 2008
Capital Management in 2008 Capital Raised Investments a) Increase in cost of investment in a) CIMB Bank Innovative Tier 1 RM 1.0 bil RM 3.2 bil Niaga and Lippo b) CIMB Bank Non-Innovative Tier 1 RM 1.0 bil b) Acquisition of 42.1% of BankThai RM 0.6 bil c) CIMB Bank Tier 2 sub-debt RM 1.5 bil c) Acqu
Slide 22: Gearing and Double Leverage
Gearing and Double Leverage BCHB Holding Company 4Q08 4Q07 Further capital movements in 1Q09 RM ‘mil Investment in subsidiaries 13,340 a) Sale and leaseback of Menara Commerce 11,429 b) Capital repayment by CIMBIB of RM310 mil External debt & borrowings 3,950 2,931 c) Acquisition of additional 49.9%
Slide 23: Malaysian Consumer Bank
BCHB GROUP : FY08 RESULTS MALAYSIAN CONSUMER BANK
Slide 24: Consumer Bank Financials
Consumer Bank Financials RM ‘mil 4Q08 3Q08 Q-o-Q FY08 FY07 Y-o-Y Net interest / financing income 705 681 4% 2,661 2,443 9% Non interest income 181 188 (4%) 717 638 12% Total income 886 869 2% 3,378 3,081 10% Overheads (direct + head (607) (548) 11% (2,294) (2,275) 1% office allocation) Loan provisio
Slide 25: Consumer Revenue & LLP Trend
Consumer Revenue & LLP Trend 800 705 700 681 653 616 629 622 599 599 600 500 RM 'mil 400 300 236 222 195 184 188 181 200 162 158 161 157 163 163 127 78 89 87 100 - 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Interest income LLP Non-interest income 25
Slide 26: Consumer Market Shares Improved In Preferred Areas
Consumer Market Shares Improved In Preferred Areas Market shares 31st Dec 2008 31st Dec 2007 Ranking - residential 12.8% 11.0% 2 Mortgages - non-residential 12.9% 11.1% 2 HP+ 9.8% 11.2% 4 - by loan base 10.5% 9.6% Credit cards 3* - card base 10.6% 8.8% Retail deposits 9.2% 8.7% 3 SME loans 12.6% 12.
Slide 27: Islamic Banking
BCHB GROUP : FY08 RESULTS ISLAMIC BANKING
Slide 28: CIMB Islamic Business Indicators
CIMB Islamic Business Indicators Ranking of Total Islamic Assets • CIMB Islamic leverages on resources and Total Islamic Assets Total Market Share infrastructure of CIMB Bank and CIMB IB Assets % RM ‘mil • Islamic products rapid proliferation in 2008 MIBB 29,057 17% with launch of Awam-i and Islamic
Slide 29: Global Islamic Investment Banking leadership
Global Islamic Investment Banking leadership 4Q08 Domestic Islamic League Table 4Q08 Global Islamic League Table Rank Company Market Share Rank Company Market Share 1 CIMB 37.1% 1 CIMB 19.0% 2 AmInvestment Bank 18.8% 2 HSBC 10.5% 3 Aseambankers 13.9% 3 AmInvestment Bank 9.1% 4 HSBC 7.5% 4 Calyon 7.5
Slide 30: Investment Banking & Treasury
BCHB GROUP : FY08 RESULTS INVESTMENT BANKING & TREASURY
Slide 31: IB and Treasury Financials
IB and Treasury Financials Corporate & Investment Banking RM mil 4Q08 3Q08 Q-o-Q FY08 FY07 Y-o-Y Net interest / financing income 202 192 4% 763 654 17% Fee & commission income 78 103 (24%) 467 645 (28%) Net trading income 12 8 45% 169 444 (62%) Brokerage income 39 57 (31%) 245 387 (37%) Total income
Slide 32: Malaysian Market Shares Maintained
Malaysian Market Shares Maintained M&A ADVISORY PRIMARY RM BOND MARKET 56.1 bil 16.7 bil CIMB CIMB 35.4% 26.5% 28.0 bil 12.1 bil UBS Aseambankers 17.7% 19.3% 15.6 bil 7.5 bil Aseambankers RHB 9.9% 11.9% 9.7 bil 5.0 bil AmInvestment AmInvestment 6.1% 7.9% 49.2 bil 5.0 bil Others Public 31.0% 7.9% Sou
Slide 33: Gaining Prominence in the Region
Gaining Prominence in the Region Singapore Singapore Indonesia Indonesia •• No. No.11Advisor AdvisorRanking Rankingfor forAnnounced AnnouncedDeals, Deals,2.2% 2.2% •• No. No.22ranked rankedfor forstock stockbroking, broking,5.78% 5.78%market market market marketshare share share share •• No. No.11Ad
Slide 34: Asset Management & Insurance
BCHB GROUP : FY08 RESULTS ASSET MANAGEMENT & INSURANCE
Slide 35: Group Assets Management & Insurance
Group Assets Management & Insurance AUM FY08 FY07 PBT (RM ‘mil) (RM ‘mil) 25,000 -10% 20,000 2,136 1,918 CIMB-P Group 38 44 15,000 RM 'mil Wholesale Mgt 10,000 19,176 7 36 17,237 Company 5,000 Insurance (95) 31 - FY07 FY08 Total (50) 111 CPAM Wholesale • CPAM PBT lower due to lower revenue from unit
Slide 36: CIMB Niaga
BCHB GROUP : FY08 RESULTS CIMB NIAGA
Slide 37: CIMB Niaga Financials (as reported on 18th February)
CIMB Niaga Financials (as reported on 18th February) IDR ‘bil 4Q08 3Q08 Q-o-Q FY08 FY07 Y-o-Y Net Interest Income 1,278 1,189 7.5% 4,801 4,309 11.4% Non Interest Income 413 310 33.2% 1,143 1,499 -23.7% Operating Income 1,691 1,499 12.8% 5,945 5,808 2.4% Overhead Expenses (880) (878) -0.2% (3,447) (3
Slide 38: CIMB Niaga Merger Update
CIMB Niaga Merger Update Completed on 1 Nov 08. Now 78.26%-owned subsidiary Merger value: RM 8.6 billion – 51% of Lippo from Khazanah for RM 2.1 billion by BCHB shares at RM 10 per share – 44.3% of Lippo from Khazanah for RM 1.78 billion by Niaga shares at IDR 1,052 per share – 4.7% of Lippo fro
Slide 39: Niaga-Lippo Valuations
Niaga-Lippo Valuations Bank Lippo Bank Niaga Merger value (IDR ‘mil) 11,627 13,013 P/B as at 31 Dec 07 3.00x 2.50x P/B as at LD1 (1 Nov 08) 4.13x 2.53x P/B as at 31 Dec 08 3.41x 2.33x (Proforma) Change mainly due to • MTM losses of marketable securities • Provisions due to forex credit losses RM mil
Slide 40: BankThai
BCHB GROUP : FY08 RESULTS BANKTHAI
Slide 41: BankThai Update
BankThai Update 42.13% associate company as of 5 Nov 08 92.04%-owned subsidiary as of 9 Jan 09 Total cost of investment – THB 13 billion / RM1.3 billion Equity recapitalisation of RM250 million targeted to complete end Mar 09 Post recap capital ratios are 5.8% (core) and 11.3% (risk-weight
Slide 42: BankThai Valuations
BankThai Valuations THB ‘mil 31 Mar 2008 (At Signing) 31 Dec 2008 (Actual) Book Value per share 0.72 0.76 P/B (Pre-Recap) 2.91 2.77 Recap Assumptions - Total 5,300 2,536 - Price per Share 0.72 0.38 - Tender Offer Success 100.00% 92.04% P/B (Post-Recap) 1.91 2.03 Including add. Provisions - Best Case
Slide 43: Other Highlights
BCHB GROUP : FY08 RESULTS OTHER HIGHLIGHTS
Slide 44: Other highlights for 2008
Other highlights for 2008 With completion of acquisitions BCHB emerges with the largest branch network in South East Asia with a total of 1,150 branches Disposal of 60% interest in SEA Bank in April 2008 Disposal of SBB Securities in October 2008 and Southern Investment Bank assets & liabiliti
Slide 45: Summary & Outlook
BCHB GROUP : FY08 RESULTS SUMMARY & OUTLOOK
Slide 46: Key Deliverables for 2008
Key Deliverables for 2008 2008 ROE >16% X TSR >KLCI X Dividend 25 sen 9 Total loans growth 12% 9 Retail deposit 25% X Loan loss charge 0.7% 9 Tier 1 (at bank) 8% 9 RWCR (at bank) 12.5% 9 Double leverage ≈ 115% 9 9) / not achieved ( X ) Target achieved ( 46
Slide 47: Key Trends for 2009
Key Trends for 2009 Consolidation of BankThai from 1Q09 expands BCHB Group loan book by 7% Loans composition FY08 Proforma FY09 Mortgages 24% 23% Corporate 23% 22% CIMB Niaga 19% 18% Business 10% 9% HP 9% 8% BankThai - 7% Credit cards 4% 3% GSAM 4% 4% CIMB Express 1% 1% Others 6% 5% Lower earnin
Slide 48: New Targets for 2009
New Targets for 2009 2009 ROE > 12.5% Mortgage 13% TSR > KLCI Credit card 8% 18.5 sen HP 8% Dividend (single tier) Xpress 2% Total loans growth 8% Business 4% Retail deposit 18 % Corporate 4% Loan loss charge 0.9 % GSAM -9% CIMB Niaga 20% Tier 1 (at bank) 10% Bank Thai N/A RWCR (at bank) 12% 48
Slide 49: Priorities for 2009
Priorities for 2009 Focus on asset quality as crisis moves from financial market to loan market Manage costs but still invest for the future CIMB Niaga operational merger Build regional organisation Exploit cross border internal synergies Take advantage of the “retreat” of western banks
Slide 50: Thank You
THANK YOU BUMIPUTRA COMMERCE