Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — Q2 2023 Earnings Presentation
42 slides from Cimb Group Holdings Bhd's earnings presentation, Aug 30, 2023
Slide 1: Analyst Presentation 2Q23 Results
Analyst Presentation 2Q23 Results CIMB Group Holdings 30 August 2023 FORWARD Your Ambitions 1
Slide 2: Overview
01 Overview 2
Slide 3: Key Highlights
Key Highlights Robust topline Strong loan and CIR continues to 1H23 provisions Strong 1H23 net growth driven by deposit growth improve to 46.0% remain contained profit growth with NOII across all segments for 1H23 with LLC at 38bps ROE of 10.6%. and countries Dividend payout raise to 55% Operating i
Slide 4: Key Business/Operational Highlights
Key Business/Operational Highlights Diversification and portfolio reshaping efforts bearing fruit Sound cost control, CIR improved to 46.0% in 1H23 Revenue (RM 'mil) QoQ YoY 46.5% 46.0% +6.7 Q-o-Q +7.4% Y-o-Y Malaysia +4.3% +0.2% CIR 10,331 Indonesia +8.6% +6.7% (RM ‘mil) 9,621 +7.4% 10,331 Operatin
Slide 5: PBT By Segment
PBT By Segment Consumer PBT +3.6% QoQ from higher NII; -5.4% YoY due CIMB Digital Assets & Group Funding to lower NOII and higher opex, offset by lower provision 17% Consumer Commercial PBT performed strongly YoY from robust topline Banking growth but was weaker QoQ with lower NOII and higher 1H23 3
Slide 6: PBT By Country
PBT By Country Others Malaysia PBT improved marginally QoQ as strong NOII was Singapore 0.3% largely offset by conservative provisioning; +13.7% YoY from 9% robust investment income and lower provisions Thailand 5% Indonesia performance remains strong with PBT +12.6% 1H23 QoQ underpinned by higher N
Slide 7: Operating Income
Operating Income NII +3.5% QoQ underpinned by loan growth. (RM 'mil) 2Q23 Q-o-Q 1H23 Y-o-Y NII was muted YoY with NIM contraction from elevated cost of deposits and T&M operations Net interest income 3,646 3.5% 7,168 (0.8%) NIM weakened QoQ and YoY driven by T&M. Loan-related NIM recovered in 2Q23 N
Slide 8: Operating Expenses
Operating Expenses Opex rose 2.6% QoQ and 6.2% YoY (RM 'mil) 2Q23 Q-o-Q 1H23 Y-o-Y driven by uptick from underlying overall cost. However, this was Personnel 1,496 7.2% 2,891 5.4% partially offset by lower A&G Establishment 213 2.9% 420 9.1% expenses from tactical cost optimisation Technology 422 12
Slide 9: Total Provisions
Total Provisions Total provisions remained contained QoQ (RM 'mil) 2Q23 1Q23 Q-o-Q 1H23 1H22 Y-o-Y and YoY 558 82.4% 864 16.3% Loan provisions +82.4% QoQ from lower Loan Impairment 306 743 release of overlays; YoY +16.3% from lower Commitment & recoveries and writebacks (150) 78 (292.3%) (72) 50 (24
Slide 10: Asset Quality
Asset Quality Loan Loss Charge (bps) ~ LLC was 2bps higher QoQ due to 151 70 increased loan provisions 49 48 1H23 LLC continues to improve and 39 73 37 43 45 51 on track to meet FY23 targets 38 2Q22 3Q22 4Q22 1Q23 2Q23 FY18 FY19 FY20 FY21 FY22 1H23 Gross Impaired Loans Ratio (%) GIL rose QoQ driven
Slide 11: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 30 Jun-23 Q-o-Q Y-o-Y Consumer Banking 220.9 2.3% 6.7% 89.9% 88.7% 88.4% 88.3% Commercial Banking 69.2 3.7% 8.0% 87.8% Wholesale Banking 136.9 4.8% 11.2% Total 427.0 3.3% 8.3% Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 ~ Loan Growth by Country (Y-o-Y) Others Sing
Slide 12: Deposits
Deposits CASA Ratio (RM 'bil) 30 Jun-23 Q-o-Q Y-o-Y 42.5% Consumer Banking 208.7 3.8% 16.3% 41.3% 39.9% Commercial Banking 88.2 4.3% 12.9% 37.9% 38.5% Wholesale Banking 189.6 4.0% 1.5% Total Deposits 486.5 4.0% 9.5% Dec-20 Dec-21 Dec-22 Mar-23 Jun-23 Total CASA 187.3 5.7% (0.3%) WY Deposit Growth by
Slide 13: Capital and Liquidity Management
Capital and Liquidity Management CET1 was 10bps lower QoQ at 14.2% Total Capital 17.8% 18.0% 17.8% as at Jun-23 Tier 2 2.8% 2.9% 2.8% The slight dip is attributable to the 0.8% 0.8% 0.8% proposed FY23 1st interim dividend Tier 1 and higher credit RWA CET1 14.1% 14.3% 14.2% CET1 ratio remains above t
Slide 14: Consumer Banking
Consumer Banking Personal (RM 'mil) 2Q23 Q-o-Q 1H23 Y-o-Y Financing Others 3% 4% 1,683 7.1% 3,254 0.9% Credit Cards Net interest income 4% Non interest income 499 (6.4%) 1,032 (4.3%) Auto 12% Gross Loans Operating income 2,182 3.7% 4,286 (0.4%) RM220.9 bil Term 6.7% Overhead expenses (1,246) 5.1% (2
Slide 15: Commercial Banking
Commercial Banking (RM 'mil) 2Q23 Q-o-Q 1H23 Y-o-Y Others Singapore 4% 7% Net interest income 789 1.9% 1,563 6.8% Thailand Non interest income 179 (14.4%) 388 15.8% 2% Indonesia Gross Loans Operating income 968 (1.5%) 1,951 8.5% 25% RM69.2 bil Overhead expenses (472) 3.1% (930) 8.3% 8.0% Malaysia 62
Slide 16: Wholesale Banking
Wholesale Banking (RM 'mil) 2Q23 Q-o-Q 1H23 Y-o-Y Others 2% Net interest income 665 (9.9%) 1,403 (26.1%) Singapore 19% Non interest income 890 32.4% 1,562 80.0% Thailand Gross Loans Operating income 1,555 10.3% 2,965 7.2% Malaysia 9% RM136.9 bil 51% Overhead expenses (581) 4.3% (1,138) 8.5% 11.2% PP
Slide 17: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding Touch ‘n Go Digital (RM 'mil) 2Q23 Q-o-Q 1H23 Y-o-Y Total Registered Users Annual Transacting (mil) Users (mil) Net interest income 509 15.9% 948 49.1% +15.1% Y-o-Y +16.9% Y-o-Y Non interest income 120 96.7% 181 56.0% Operating income 629 25.8% 1,129 50.1% 20.6 10
Slide 18: CIMB Islamic
CIMB Islamic Islamic Financing (RM 'mil) 2Q23 Q-o-Q 1H23 Y-o-Y (RM ‘bil) Net financing income 824 12.9% 1,554 (3.9%) +2.9% Q-o-Q +16.0% Y-o-Y Non financing income 175 (5.9%) 361 62.6% 128.5 132.2 Operating income 999 9.1% 1,915 4.1% 114.0 Overhead expenses (334) (11.9%) (714) 18.8% PPOP 665 23.8% 1,
Slide 19: 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> 19 19
Slide 20: Forward23+ 2023 Strategic Plan
Forward23+ 2023 Strategic Plan 20
Slide 21: Asset Composition and Growth
Asset Composition and Growth Growth momentum continued to improve on areas we would like to invest Asset Composition Gross Loan Composition CDA and Year Consumer Commercial Wholesale Group Year Consumer Commercial Wholesale Funding Dec-19 33% 11% 43% 12% Dec-19 50% 18% 32% Jun-23 32%▼ 10%▼ 42% ▼ 17%
Slide 22: ROE Journey and Trajectory
ROE Journey and Trajectory 70-130 bps 0-40 bps 11.5- 10.2- 12.5% 10.6% 11.0% 8.5% 2019 Portfolio Opex ECL Others Capital 1H23 Drivers 2023 Drivers 2024 ROE Reshaping Optimisation Reduction Accumulation ROE Target ROE Target ROE Key Highlights Future Drivers ROE progressed to 10.6% in 1H23 from 8.5%
Slide 23: Digital Reliability/Customer Centricity
Digital Reliability/Customer Centricity Metrics tracking well with continued momentum in digital transactions Clicks & Bizchannel Digital Platform Incidences Technology & Operational Investments % Availability No. Unscheduled Technology Capex Downtimes (RM’mil) Country FY23 Malaysia FY22 1H23 Target
Slide 24: Sustainability 2Q23 Update
Sustainability 2Q23 Update • Sustainable financial solutions - collaboration with Bursa Malaysia to help PETRONAS’ supply chain businesses adopt low carbon and sustainable practices • Sustainable Living Home Solutions - offering preferential rates for green home and solar panel financing and various
Slide 25: Final Remarks
03 Final Remarks <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 25
Slide 26: Final Remarks
Final Remarks Improved momentum in 2Q23 performance FY24 driven by robust NOII, strong loan growth and FY23 FY23 1H23 Forward23 CASA expansion Guidance Targets + Ambition The Group is also benefiting from the Top quartile diversified ASEAN portfolio as strong ROE * 10.6% 10.2-11.0% 10.2-11.0% (11.5-
Slide 27: Appendices
04 Appendices <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only>
Slide 28: Exceptional Items
Exceptional Items (RM 'mil) 1H23 2Q22 1Q22 1H22 PBT BAU 4,718 2,157 2,101 4,258 Gain on deconsolidation Touch ‘n Go Digital - - - - Gain / Loss on dilution of interest on disposal of associates - - - - Loss on disposal of 25% CGS-CIMB - - - - Transformational / Restructuring cost - (6) (6) (12) Inta
Slide 29: Earnings Summary
Earnings Summary 1H22 2Q22 (RM ’mil) 2Q23 1Q23 Q-o-Q 1H23 Y-o-Y Y-o-Y BAU^ BAU^ Net interest income 3,646 3,522 3.5% 7,168 7,224 (0.8%) 3,675 (0.8%) Non interest income 1,688 1,475 14.4% 3,163 2,397 32.0% 1,210 39.5% Operating income 5,334 4,997 6.7% 10,331 9,621 7.4% 4,885 9.2% Overhead expenses (2
Slide 30: Key Ratios
Key Ratios 1H22 2Q22 (%) 2Q23 1Q23 Q-o-Q 1H23 Y-o-Y Y-o-Y BAU^ BAU^ ROE ~ 10.7 10.3 ▲ 10.6 10.4 ▲ 10.3 ▲ Reported ROE 10.7 10.3 ▲ 10.6 9.1 ▲ 8.5 ▲ NIM ~* 2.24 2.26 ▼ 2.25 2.47 ▼ 2.47 ▼ Non-interest income / total income 31.6 29.5 ▲ 30.6 24.9 ▲ 24.8 ▲ Cost to income 45.1 46.9 ▼ 46.0 46.5 ▼ 46.0 ▼ All
Slide 31: NOII breakdown
NOII breakdown (RM ’mil) 2Q23 1Q23 Q-o-Q 1H23 1H22 Y-o-Y Fee & commission 605 606 (0.2%) 1,211 1,282 (5.5%) Brokerage 5 7 (28.6%) 12 1 >1,000% Asset management and security services 6 5 20.0% 11 14 (21.4%) Trading & FX 841 745 12.9% 1,586 909 74.5% Dividend income 30 7 328.6% 37 32 15.6% Other incom
Slide 32: PBT by Segments
PBT by Segments 1H22 PBT (RM ’mil) 2Q23 1Q23 Q-o-Q 1H23 Y-o-Y BAU^ Consumer Banking (30.0%) 720 695 3.6% 1,415 1,495 (5.4%) Commercial Banking (20.0%) 426 518 (17.8%) 944 765 23.4% Wholesale Banking (33.3%) 867 702 23.5% 1,569 1,655 (5.2%) Corporate Banking (19.3%) 556 355 56.6% 911 895 1.8% Treasur
Slide 33: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 2Q23 1Q23 Q-o-Q 1H23 1H22 Y-o-Y Malaysia (RM ’mil) 508 483 5.2% 991 972 2.0% Indonesia (IDR ’bil) 455 598 (23.9%) 1,053 805 30.8% Thailand (THB ’mil) 183 205 (10.7%) 388 1,450 (73.2%) Singapore (SGD ’mil) 7 6 16.7% 13 25 (48.0%) Others * (RM ’mil) 24 (6) 5
Slide 34: Asset Quality & Moratorium
Asset Quality & Moratorium Gross Loans Bonds Covid-19 Impacted Sectors Sectors 30 Jun-23 30 Jun-23 Hospitality 1.1% 0.1% Retail 2.5% 0.1% Aviation 0.2% 0.6% Leisure 0.5% 0.5% Total: Directly impacted sectors 4.4% 1.1% vs 31 Mar-23 4.3% 1.1% Others: Indirectly impacted sectors 20.1% 4.2% vs 31 Mar-23
Slide 35: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Loan Exposure: Borrowers Status: 1.5% of total Group gross loans Impaired 23% Thailand Watch List (M & H) 7% 0% Singapore Normal 18% 77% Segmental Exposure: Indonesia Oil Traders 10% Malaysia 65% 6% Upstream 16% Downstream As at Jun-23, the O&G impairment ratio stood at 22.5
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 4.1% 1.0% Consumer Gross Loans 8.0% 1.7% Mortgages 8.0% 1.9% Mortgages 4.8% 0.8% Term loans (9.0%) (2.3%) Auto 14.6% 2.9% Auto 6.3% 1.6% Credit cards 1.5% 1.0% Credit cards 15.7% 1.7% Consumer Deposits
Slide 37: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 2Q23 1Q23 Q-o-Q 1H23 1H22 Y-o-Y Net interest income 3,427 3,408 0.6% 6,835 6,538 4.5% Non interest income 1,608 1,576 2.0% 3,184 3,045 4.6% Operating income 5,035 4,984 1.0% 10,019 9,583 4.5% Overhead expenses* (2,119) (2,219) (4.5%) (4,337) (4,182) 3.7% PPOP
Slide 38: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 2Q23 1Q23 Q-o-Q 1H23 1H22 Y-o-Y ROE ^* 15.8 15.1 ▲ 15.4 12.8 ▲ NIM ^ 4.52 4.71 ▼ 4.61 4.54 ▲ Cost to Income* 42.1 44.5 ▼ 43.3 43.6 ▼ Loan Loss Coverage # 261.9 253.5 ▲ 261.9 215.0 ▲ Allowance Coverage 110.7 105.0 ▲ 110.7 115.3 ▲ Loan Loss Charge ^ 1.8 1.5 ▲
Slide 39: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 2Q23 1Q23 Q-o-Q 1H23 1H22 Y-o-Y (THB 'mil) Net interest income 2,533 2,346 8.0% 4,879 4,665 4.6% Non interest income 797 1,483 (46.3%) 2,278 2,441 (6.7%) Operating income 3,330 3,829 (13.0%) 7,157 7,106 0.7% Overhead expenses (2,092) (1,960) 6.7%
Slide 40: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 2Q23 1Q23 Q-o-Q 1H23 1H22 Y-o-Y ROE ^ 4.6 7.3 ▼ 5.9 9.7 ▼ NIM ^ 2.7 2.5 ▲ 2.6 2.7 ▼ Cost to Income 62.8 51.2 ▲ 56.6 52.8 ▲ Loan Loss Coverage ** 122.1 122.6 ▼ 122.1 114.3 ▲ Loan Loss Charge ^ 0.9 1.4 ▼ 1.1 0.7 ▲ Gross NPL ratio ** 3.1 3.1 = 3.1 3.3 ▼ ROA 0.6
Slide 41: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 1H23 1H22 1H23 1H22 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 24.4% 1 21.4% 2 DCM 8.8% 5 7.5% 8 Sukuk 25.7% 1 22.9% 2 M&A - - - - M&A 42.4% 1 17.3% 4 Syndication ^ 3.2% 10 4.9% 5 Syndication ^ 13.2% 3 12.3% 4 IPO - - 2.7% 6 I
Slide 42: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 1H23 1H22 1H23 1H22 Asia ASEAN Market Market Market Market Rank Rank (ex-Japan) * Rank Rank Share Share Share Share DCM 12.9% 1 9.8% 1 DCM 0.6% 41 0.5% 45 M&A 4.0% 12 0.9% 20 M&A 0.9% 24 0.2% 47 Syndication ^ 2.1% 16 4.4% 6 Syndication ^ 0.3% 50 0.6% 31 IPO 2.0% 14 6.
CIMB Group Holdings Berhad — Q2 2023 Earnings Presentation on 6ix