Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — FY2024 Earnings Presentation
43 slides from Cimb Group Holdings Bhd's earnings presentation, Feb 28, 2025
Slide 1: Analyst Presentation FY24 Results
Analyst Presentation FY24 Results CIMB Group Holdings 28 February 2025 FORWARD Your Ambitions 1
Slide 2: GCEO Observations
GCEO Observations <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 2 2
Slide 3: GCEO Observations
GCEO Observations • Net profit in FY24 up 10.7% YoY to RM7.7 bil • Continue to benefit from our diverse ASEAN portfolio serving all client segments • Remained nimble and pivoted to focus on client franchise, disciplined asset pricing and deposit-led strategies • NII up 5.3% YoY, driven by healthy lo
Slide 4: We have achieved Forward23+
We have achieved Forward23+ 2024 Forward23+ 2020 2021 2022 2023 2024 Targets Ambition Share 4.57 5.11 5.44 8.20 • Reshape 3.49 portfolio price - - (RM) Annualised TSR 34.6% vs FBM KLCI 0.7% 11.2% • New culture ROE 8.1% 10.2% 10.7% Top quartile 2.1% 11.0-11.5% (EPICC) 11.5-12.5% CIR 51.7% 48.6% • Saf
Slide 5: ROE of 11.2% achieved despite industry challenges
ROE of 11.2% achieved despite industry challenges Proactive asset quality management 11.2% 8.5% FY19 Portfolio Opex ECL Capital NIM FY24 Reported Reshaping Optimisation Uplift Requirements & Compression ROE ROE Others 5
Slide 6: Successful portfolio reshaping contributed to strong performance
Successful portfolio reshaping contributed to strong performance Country Year Consumer Commercial Wholesale Dec-19 59% 14% 27% Malaysia 2% ▲ 2% ▲ 4% ▼ Dec-24 61% 16% 23% Dec-19 25% 14% 61% Singapore 5% ▲ 2% ▼ 3% ▼ Dec-24 30% 12% 58% Dec-19 27% 35% 38% Indonesia 6% ▲ 8% ▼ 2% ▲ Dec-24 33% 27% 40% Dec-
Slide 7: Continued investment in technology to ensure digital reliability
Continued investment in technology to ensure digital reliability Technology & Operational Investments Digital Platform Incidences Digital Platform Enhancements Technology Capex Clicks RM ’mil 19 ~2x 9 2 5 1 853 BizChannel 433 5 Nil 1 FY15-FY19 FY20-FY24 FY20 FY21 FY22 FY23 FY24 Avg. Annual Spend Avg
Slide 8: We institutionalised a new culture
We institutionalised a new culture Organisational Health Index Year 2021 2022 2023 2024 Score 79th 77th 83rd 84th Third Second Top Top Quartile Quartile Quartile Quartile 8
Slide 9: We are committed to driving sustainable impact for a better future
We are committed to driving sustainable impact for a better future Futureproofing our organization Raising the floor #1 88th >RM120 mil Globally amongst financial Percentile in the S&P Global In community investments from institutions by the World Corporate Sustainability 2021 to 2024 Benchmarking A
Slide 10: 2025 Outlook
2025 Outlook • Remain cautious due to geopolitical uncertainties; expect ASEAN to be resilient and benefit from this bifurcation. Healthier loan growth to offset NIM compression • Leverage on our strong client franchise, disciplined asset pricing and deposit-led strategies • Cost discipline and prod
Slide 11: GCFSO Presentation
GCFSO Presentation | el ;
Slide 12: Key Business Highlights
Key Business Highlights Solid operating income YoY underpinned by exceptionally 4Q24 vs 4Q23: Improved YoY performance strong 3Q24 (RM 'mil) (RM ‘mil) QoQ YoY +3.1% -7.2% Q-o-Q +6.1% Y-o-Y Malaysia -9.7% +8.8% +1.3% 5,742 21,014 22,301 +5.0% 5,328 Indonesia -6.5% -6.2% 15,397 3,816 3,930 3,816 14,62
Slide 13: PBT By Segment
PBT By Segment CIMB Digital Assets & Consumer underlying performance remains positive at the PPOP Group Funding level. The weaker QoQ PBT was largely from conservative 16% Consumer provisioning Banking 27% Positive Commercial performance aided by lower provisions FY24 Robust Wholesale performance de
Slide 14: PBT By Country
PBT By Country Others Singapore Malaysia recorded robust topline driven by NIM expansion, strong 1% 13% capital markets and client franchise income. Softer 4Q24 attributed to lower fee and trading income and conservative Thailand provisions 4% FY24 Indonesia performance remains challenged by intense
Slide 15: Operating Income
Operating Income NII +5.3% YoY underpinned by loan growth; -2.9% (RM 'mil) 4Q24 Q-o-Q FY24 Y-o-Y QoQ from 6bps NIM contraction from seasonal year-end factors Net interest income 3,816 (2.9%) 15,397 5.3% 1bp contraction in FY24 NIM arising from pricing competition in Indonesia and Thailand, partially
Slide 16: Non-Interest Income
Non-Interest Income FY24 NOII grew 8.1% YoY driven by Wholesale (RM ’mil) 4Q24 Q-o-Q FY24 Y-o-Y fees and strong trading & FX from both capital markets and client franchise income Fee & commission 643 (7.9%) 2,731 4.2% 4Q24 NOII declined 16.6% QoQ in line with Trading & FX 792 (22.4%) 3,719 16.6% nor
Slide 17: Operating Expenses
Operating Expenses Maintained cost discipline as the Group continues (RM 'mil) 4Q24 Q-o-Q FY24 Y-o-Y to invest in Technology Personnel 1,528 (9.0%) 6,347 6.9% Opex rose 5.6% YoY led by inflationary pressures, while declining 1.8% QoQ from normalisation of Establishment 215 - 826 (0.6%) personnel cos
Slide 18: Total Provisions
Total Provisions Provisions decreased 5.5% YoY from (RM 'mil) 4Q24 3Q24 Q-o-Q FY24 FY23 Y-o-Y higher recoveries and writebacks; +4.7% QoQ mainly from conservative Loan Impairment 399 250 59.6% 1,369 1,534 (10.8%) provisioning Commitment & (85) (50) (70.0%) (244) (175) (39.4%) Loan impairment decline
Slide 19: Asset Quality
Asset Quality Loan Loss Charge (bps) * 151 LLC was 7bps lower YoY due to the higher writebacks; +10bps 31 35 28 73 QoQ from higher conservative 20 18 45 51 32 25 provisioning Gross Impaired Loans Ratio (%) GIL improved 60bps YoY from 3.6 asset quality improvement 2.7 2.6 3.5 3.3 2.5 3.1 initiatives
Slide 20: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 31 Dec-24 Q-o-Q Y-o-Y Consumer Banking 236.6 2.0% 3.0% Commercial Banking 75.8 3.7% 6.2% 91.4% Wholesale Banking 136.9 6.0% (0.4%) 88.6% 89.1% 88.3% 87.4% CIMB Digital Assets and Others 3.0 11.1% 30.4% Total 452.3 3.5% 2.6% Total on constant currency basi
Slide 21: Deposits
Deposits CASA Ratio (RM 'bil) 31 Dec-24 Q-o-Q Y-o-Y Consumer Banking 226.6 3.2% 3.2% 42.5% 43.1% Commercial Banking 95.7 5.4% 4.9% 41.3% 41.2% 39.9% Wholesale Banking 185.3 13.2% 1.5% CIMB Digital Assets and Others 4.7 11.9% 9.3% Total Deposits 512.3 7.1% 2.9% Total Deposits on constant currency bas
Slide 22: Dividend Payout
Dividend Payout Dividend per share Total dividend Dividend per Dividend (sen) Period payout share Yield # +9.3% (RM’bil) (sen) (%) 1st Interim ^ 2nd Interim FY20 0.5 4.81 1.1 Special Dividend 43.00 47.00 7.00 7.00 FY21 2.3 22.99 4.2 26.00 20.00 22.99 18.50 13.00 FY22 2.7 26.00 4.5 12.55 4.81 17.50 2
Slide 23: Capital and Liquidity Management
Capital and Liquidity Management Total Capital 18.3% 18.5% 18.2% 18.3% 17.6% CET1 stood at 14.6% as at end Dec- Tier 2 2.9% 3.1% 3.1% 3.0% 24, increasing 10bps YoY while falling 3.0% Tier 1 0.9% 0.8% 0.6% 0.6% 40bps QoQ 1.3% CET1 The 40bps decline QoQ was due to 13.3% 14.5% 14.5% 14.5% 14.6% higher
Slide 24: Consumer Banking
Consumer Banking Personal (RM 'mil) 4Q24 Q-o-Q FY24 Y-o-Y Financing Others 3% 3% Credit Cards Net interest income 1,738 (1.9%) 6,998 5.7% 5% Non interest income 448 (22.9%) 2,203 3.6% Auto 13% Gross Loans Operating income 2,186 (7.1%) 9,201 5.2% RM236.6 bil Term 3.0% Overhead expenses (1,365) 2.5% (
Slide 25: Commercial Banking
Commercial Banking (RM 'mil) 4Q24 Q-o-Q FY24 Y-o-Y Others Singapore 4% 9% Net interest income 832 (2.6%) 3,329 3.7% Thailand Non interest income 207 (7.6%) 825 0.4% 1% Indonesia Gross Loans Operating income 1,039 (3.6%) 4,154 3.0% 23% RM75.8 bil 6.2% Malaysia Overhead expenses (549) 5.8% (2,088) 7.4
Slide 26: Wholesale Banking
Wholesale Banking (RM 'mil) 4Q24 Q-o-Q FY24 Y-o-Y Others 1% Singapore Net interest income 656 (14.1%) 2,782 0.5% 23% Non interest income 772 (14.5%) 3,504 16.6% Gross Loans Malaysia Operating income 1,428 (14.3%) 6,286 8.9% Thailand RM136.9 bil 8% 49% 0.4% Overhead expenses (630) 2.4% (2,463) 6.6% P
Slide 27: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding Touch ‘n Go Digital (RM 'mil) 4Q24 Q-o-Q FY24 Y-o-Y Total Registered Users Annual Transacting (mil) Users (mil) Net interest income 590 9.1% 2,288 13.0% +10.6% Y-o-Y -1.9% Y-o-Y Non interest income 85 (18.3%) 372 (14.5%) 29.1 26.3 15.7 15.4 Operating income 675 4.
Slide 28: CIMB Digital Businesses
CIMB Digital Businesses Improvement to Group ROE CIMB Philippines Revenue (bps) (PHP ‘mil) 62 bps 748.6 577.4 18 16 12 12 234.5 4 76.8 10.1 10.7 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Narrowing CDA losses have cumulatively contributed 62 bps to the Group’s ROE expansion since 2020 Im
Slide 29: CIMB Islamic
CIMB Islamic Islamic Financing (RM ‘mil) 4Q24 Q-o-Q FY24 Y-o-Y (RM ‘bil) +2.5% Q-o-Q +8.6% Y-o-Y Net financing income 918 (2.1%) 3,622 10.8% Non financing income 188 22.2% 722 (2.5%) 151.8 155.6 Operating income 1,106 1.3% 4,344 8.3% 143.3 Overhead expenses (363) (1.1%) (1,440) 6.0% PPOP 743 2.6% 2,
Slide 30: Thank you
Thank you <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 30 30
Slide 31: Appendices
Appendices <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 31 31
Slide 32: Earnings Summary
Earnings Summary (RM ’mil) 4Q24 3Q24 Q-o-Q FY24 FY23 Y-o-Y 4Q23 Y-o-Y Net interest income 3,816 3,930 (2.9%) 15,397 14,626 5.3% 3,701 3.1% Non interest income 1,512 1,812 (16.6%) 6,904 6,388 8.1% 1,674 (9.7%) Operating income 5,328 5,742 (7.2%) 22,301 21,014 6.1% 5,375 (0.9%) Overhead expenses (2,62
Slide 33: Key Ratios
Key Ratios (%) 4Q24 3Q24 Q-o-Q FY24 FY23 Y-o-Y 4Q23 Y-o-Y ROE ~ 10.6 12.0 ▼ 11.2 10.7 ▲ 10.1 ▲ NIM ~* 2.17 2.23 ▼ 2.21 2.22 ▼ 2.15 ▲ NIM banking book ~* 2.66 2.75 ▼ 2.70 2.66 ▲ 2.59 ▲ Non-interest income / total income 28.4 31.6 ▼ 31.0 30.4 ▲ 31.1 ▼ Cost to income 49.2 46.5 ▲ 46.7 46.9 ▼ 48.8 ▲ Allo
Slide 34: NOII breakdown
NOII breakdown (RM ’mil) 4Q24 3Q24 Q-o-Q FY24 FY23 Y-o-Y Fee & commission 643 698 (7.9%) 2,731 2,622 4.2% Brokerage 11 16 (31.3%) 46 1 >1,000% Asset management and security services 4 6 (33.3%) 20 26 (23.1%) Trading & FX 792 1,020 (22.4%) 3,719 3,189 16.6% Dividend income 12 25 (52.0%) 118 68 73.5%
Slide 35: PBT by Segments
PBT by Segments PBT (RM ’mil) 4Q24 3Q24 Q-o-Q FY24 FY23 Y-o-Y Consumer Banking (27.2%) 456 902 (49.4%) 2,825 2,969 (4.9%) Commercial Banking (19.9%) 543 529 2.6% 2,065 1,863 10.8% Wholesale Banking (37.0%) 848 931 (8.9%) 3,848 3,168 21.5% Corporate Banking (20.0%) 467 402 16.2% 2,086 1,789 16.6% Tre
Slide 36: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 4Q24 3Q24 Q-o-Q FY24 FY23 Y-o-Y Malaysia (RM ’mil) 247 676 (63.5%) 1,818 2,011 (9.6%) Indonesia (IDR ’bil) 724 810 (10.6%) 3,134 2,831 10.7% Thailand (THB ’mil) 148 (405) 136.5% (387) (454) 14.8% Singapore (SGD ’mil) 2 12 (83.3%) 41 39 5.1% Others * (RM ’m
Slide 37: Consumer Banking Key Highlights
Consumer Banking Key Highlights Malaysia Q-o-Q Y-o-Y Indonesia ^ Q-o-Q Y-o-Y Consumer Gross Loans 1.4% 4.9% Consumer Gross Loans 2.4% 5.4% Mortgages 1.3% 6.3% Mortgages (1.5%) (2.1%) Term loans 0.0% (13.8%) Auto 12.2% 26.0% Auto 1.3% 6.1% Credit cards 1.7% 6.6% Credit cards 4.7% 7.3% Consumer Deposi
Slide 38: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 4Q24 3Q24 Q-o-Q FY24 FY23 Y-o-Y Net interest income 3,259 3,352 (2.8%) 13,267 13,352 (0.6%) Non interest income 1,275 1,448 (11.9%) 5,651 5,433 4.0% Operating income 4,533 4,800 (5.6%) 18,918 18,786 0.7% Overhead expenses (2,108) (2,066) 2.1% (8,383) (8,422)
Slide 39: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 4Q24 3Q24 Q-o-Q FY24 FY23 Y-o-Y ROE ^ 13.6 14.3 ▼ 14.3 15.0 ▼ NIM ^ 3.88 4.07 ▼ 4.09 4.40 ▼ Cost to Income 46.5 43.0 ▲ 44.3 44.8 ▼ Loan Loss Coverage # 270.0 260.1 ▲ 270.0 292.1 ▼ Allowance Coverage 115.3 116.1 ▼ 115.3 110.0 ▲ Loan Loss Charge ^ 0.8 1.0 ▼ 0.
Slide 40: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 4Q24 3Q24 Q-o-Q FY24 FY23 Y-o-Y (THB 'mil) Net interest income 2,224 2,509 (11.3%) 9,473 9,768 (3.0%) Non interest income 2,082 1,238 68.2% 5,630 4,003 40.6% Operating income 4,306 3,747 14.9% 15,103 13,772 9.7% Overhead expenses (2,273) (2,211) 2
Slide 41: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 4Q24 3Q24 Q-o-Q FY24 FY23 Y-o-Y ROE ^ 7.7 4.8 ▲ 5.9 3.4 ▲ NIM ^ 2.02 2.32 ▼ 2.21 2.56 ▼ Cost to Income 52.8 59.0 ▼ 58.7 62.7 ▼ Loan Loss Coverage ** 137.9 138.8 ▼ 137.9 124.2 ▲ Loan Loss Charge ^ 1.3 1.2 ▲ 1.1 1.3 ▼ Gross NPL ratio ** 2.6 2.5 ▲ 2.6 3.3 ▼ ROA
Slide 42: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) FY24 FY23 FY24 FY23 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 28.6% 1 25.6% 1 DCM 5.0% 8 5.4% 8 Sukuk 30.4% 1 27.7% 1 M&A - - - - M&A 28.2% 1 27.2% 2 Syndication ^ 1.3% 16 2.8% 9 Syndication ^ 7.0% 4 12.8% 2 IPO 14.6% 2 - - I
Slide 43: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) FY24 FY23 FY24 FY23 Asia ASEAN Market Market Market Market Rank Rank (ex-Japan) * Rank Rank Share Share Share Share DCM 12.1% 1 13.3% 1 DCM 0.5% 49 0.6% 37 M&A 5.9% 13 2.1% 20 M&A 1.1% 28 0.5% 42 Syndication ^ 1.5% 17 2.4% 15 Syndication ^ 0.5% 45 0.5% 43 IPO 20.7% 1