Cimb Group Holdings Bhd · MYX:CIMB

Cimb Group Holdings Bhd — Q1 2008 Earnings Presentation

34 slides from Cimb Group Holdings Bhd's earnings presentation, May 9, 2008

  1. Slide 1: BCHB Group First Quarter 2008 Results

    BCHB GROUP FIRST QUARTER 2008 RESULTS Investor Presentation 9th May 2008 1

  2. Slide 2: Agenda

    Agenda BCHB Group 1Q08 Financials Malaysian Consumer Bank Capital Markets Operations Indonesian Banking Capital Management & Other Developments 2

  3. Slide 3: BCHB Group 1Q08 Financials

    BCHB GROUP : FIRST QUARTER 2008 RESULTS BCHB GROUP 1Q08 FINANCIALS 3

  4. Slide 4: 1Q08 key highlights

    1Q08 key highlights Net profit at RM535 million, up 10% q-o-q but down 13% y-o-y Consumer bank contribution up sharply driven by lower credit charge IB and Treasury contribution fell due to tough markets Asset quality indicators continue to improve Retain 18% ROE target for full year with continued

  5. Slide 5: BCHB Group: 1Q08 financials

    BCHB Group : 1Q08 financials (RM mil) 1Q07 1Q08 Y-o-Y 4Q07 Q-o-Q Net interest income 1,030 1,114 8% 1,136 (2%) Non interest income 1,073 905 (16%) 844 7% Operating income 2,103 2,019 (4%) 1,980 2% Loan provisions (285) (189) (34%) (116) 63% Other provisions (6) (8) 33% (17) (53%) Overhead expenses (

  6. Slide 6: 1Q08 net ROE of 13.6, better than 3Q07 and 4Q07

    1Q08 net ROE of 13.6, better than 3Q07 and 4Q07 2,470 2,188 2,103 1,980 2,019 1,872 20.2% 1,663 19.1% 15.4% 1,296 13.5% 1,246 15.8% 13.0% 13.6 % 12.4% 916 12.2% 826 739 749 615 660 615 592 494 486 535 453 463 447 442 408 325 324 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 Operating income* PBT* Net

  7. Slide 7: Contribution by entity and geography

    Contribution by entity and geography BCHB CIMB (RM mil) Bank Niaga (Holding company) & BCHB Group Universal Bank Others Revenue 1,749 285 (15) 2,019 Profit/ (loss) before tax 665 98 (14) 749 Net profit/ (loss) 500 46 (11) 535 BCHB Group 1Q08 contribution by PBT 1Q08 CIMB Universal Bank PBT % of PBT

  8. Slide 8: BCHB: Revenue by segment

    BCHB: Revenue by segment (RM mil) 1Q07 4Q07 1Q08 Q-o-Q Consumer Banking 783 816 820 0.5% Corporate & Investment Banking 460 519 477 (8%) Treasury & Investments 493 294 402 37% GAM & Insurance 109 45 53 18% Niaga 289 289 285 (1%) Other income (31) 17 (18) (206%) Total income 2,103 1,980 2,019 2% Loan

  9. Slide 9: BCHB Group: Estimated PBT by segments

    BCHB Group : Estimated PBT by segments PBT 1Q07 4Q07 1Q08 Q-o-Q Y-o-Y (Post estimated support cost % of % of % of allocation) RM mil RM mil RM mil % % PBT PBT PBT Consumer Banking 111 13 100 14 168 22 68% 51% Investment Banking & Treasury 557 68 583 79 470 63 (19%) (16%) GAM & Insurance 55 7 (40) (6

  10. Slide 10: Estimated PBT by segments

    Estimated PBT by segments 1Q07 FY07 Consumer Consumer Bank Niaga Bank Niaga Banking Banking 12% 13% 13% 15% GAM & GAM & Insurance Insurance 4% 7% Corporate & Investment Corporate & Treasury & Banking 1Q08 Investments Investment Treasury & 27% Banking Investments 33% 35% 41% Consumer Bank Niaga Banki

  11. Slide 11: Balance sheet changes

    Balance sheet changes (RM mil) 31st Mar 07 31st Dec 07 31st Mar 08 Y-o-Y Q-o-Q Cash & short term funds 20,561 30,525 27,856 35% (9%) Securities purchased under resale agreements 3,608 4,371 4,476 24% 2% Deposits & placements with financial institutions 4,810 6,486 10,988 128% 69% Securities held for

  12. Slide 12: BCHB Group: Loans grew 7.1% over the year

    BCHB Group: Loans grew 7.1% over the year Gross Gross Gross loans Y-o-Y loans as at loans as at as at Y-o-Y growth Products/ loans (excl. Divisions 31 Mar 07 31 Dec 07 31 Mar 08 growth write RM1.2 bil (RM bil) (RM bil) (RM bil) offs) 8.4% Consumer Banking 53.2 55.3 56.5 6.2% 8.1% 7.1% Mortgages 16.5

  13. Slide 13: Deposits grew 26% over the year

    Deposits grew 26% over the year Divisions / 31st Mar 07 31st Dec 07 31st Mar 08 Y-o-Y Products (RM bil) (RM bil) (RM bil) growth 26% Retail 26.9 30.6 32.4 20% - Current 3.3 3.7 4.0 22% - Savings 7.4 8.1 8.5 15% RM131.6 bil - Fixed & structured 16.3 18.8 19.9 22% deposits Business 15.2 17.3 17.0 11%

  14. Slide 14: BCHB Group: Further improvements on loan quality trends

    BCHB Group: Further improvements on loan quality trends 75.0% 71.9% 69.3% 70.0% 13.5% 65.1% 65.0% 61.0% 59.0% 60.0% 57.5% 55.2% 55.8% 11.5% 54.2% 54.9% 55.0% 51.5% 9.9% 9.6% 50.0% 47.6% 48.8% 9.5% 8.8% 45.0% 9.0% 9.2% 8.8% 8.8% 7.9% 8.8% 8.7% 8.6% 40.0% 7.2% 7.1% 7.5% 35.0% 6.4% 6.3% 6.3% 6.1% 5.9%

  15. Slide 15: BCHB: Operating expenses

    BCHB: Operating expenses (RM mil) 1Q07 4Q07 1Q08 Q-o-Q Y-o-Y Personnel 531 548 527 (4%) (1%) Establishment 206 177 203 15% (1%) Marketing 35 107 57 (47%) 63% Admin & general 215 279 277 (1%) 29% Total costs 987 1,111 1,064 (4%) 8% 15

  16. Slide 16: Key ratios

    Key ratios (%) FY07 4Q07 1Q08 ROAE 20.0 13.0 13.6 Niaga NIM at 5.21% (4Q07:5.65%); Net interest margin* (excl. IIS) 2.43 2.34 2.30 NIM for CIMB Bank’s performing loan of 3.93% (4Q07: 3.81%) Fee income/ total income 16.2 17.1 15.0 Non-interest income/ total income 50.8 42.6 44.8 Cost/ income 46.9 56.

  17. Slide 17: Malaysian Consumer Bank

    BCHB GROUP : FIRST QUARTER 2008 RESULTS MALAYSIAN CONSUMER BANK 17

  18. Slide 18: Consumer Banking

    Consumer Banking (RM mil) 1Q07 4Q07 1Q08 Q-o-Q Y-o-Y Net interest income 585 637 634 (0.5%) 8.3% Non interest income 198 179 187 4.4% (5.6%) Total income 783 816 820 0.5% 4.8% 18

  19. Slide 19: CIMB-SBB: 1Q08 synergy targets achieved with 171%

    CIMB-SBB : 1Q08 synergy targets achieved with 171% YTD Actual vs FY08 Target Synergy PBT Achievement (RM'mil) 90.0 78.0 80.0 70.0 62.4 57.8 60.0 PBT (RM'mil) 50.0 40.0 35.0 31.3 30.0 19.3 17.5 20.0 10.0 0.0 0.0 Revenue synergy - cross- Revenue synergy - cross- Cost synergy Revenue synergy realised s

  20. Slide 20: Consumer market shares better with clear upside

    Consumer market shares better with clear upside Market shares 31st Mar 2007 31st Dec 2007 31st Mar 2008 Ranking Mortgages 9.5% 10.4% 10.8% 3 HP 13.3% 11.6% 11.1% 4 Credit cards - by loan base 8.8% 9.7% 10.3% 4 - card base 7.3% 8.8% 9.4% Retail deposits * 8.3% 8.5% 8.8% 4 SME loan 12.6% 12.7% 12.5% 3

  21. Slide 21: Capital Markets Operations

    BCHB GROUP : FIRST QUARTER 2008 RESULTS CAPITAL MARKETS OPERATIONS 21

  22. Slide 22: Corporate & Investment Banking

    Corporate & Investment Banking (RM mil) 1Q07 4Q07 1Q08 Q-o-Q Y-o-Y Net interest income 140 197 185 (6%) 32% Fee & commission income 104 139 100 (28%) (4%) Net trading income 126 79 110 39% (13%) Brokerage income 90 104 82 (21%) (9%) Total income 460 519 477 (8%) 4% 22

  23. Slide 23: Treasury & Investments

    Treasury & Investments (RM mil) 1Q07 4Q07 1Q08 Q-o-Q Y-o-Y Net interest income 133 140 132 (6%) (1%) Fee income 2 15 5 (67%) 150% Net trading income 271 86 127 48% (53%) Other income 87 53 138 160% 59% Total income 493 294 402 37% (18%) 23

  24. Slide 24: Excellent market shares in 1Q08

    Excellent market shares in 1Q08 M&A ADVISORY (BY VALUE) PRIMARY RM BOND MARKET (BY VALUE) RM8.9 bil RM3.1 bil CIMB AM INV 26% 26% RM8.3 bil RM3.1 bil ASEAM 24% RHB 26% RM3.3 bil RM2.0 bil PUBLIC 10% CIMB 17% RM3.3 bil RM1.0 bil RHB OCBC 9% 9% RM10.5 bil RM1.0 bil OTHERS ABN AMRO 8% 31% BROKING (BY V

  25. Slide 25: Gaining traction in the regional capital markets

    Gaining traction in the regional capital markets Thailand Hong Kong • Brokerage market share of • No. 2 Advisor Ranking for 0.38% Announced Deals (by no. of deals (5 deals, 1.7% market share) • No. 5 Advisor Ranking for Announced Deals (by. value of deals (USD106.5 mil, 2.6% market share) Singapore

  26. Slide 26: A global leader in Islamic investment banking

    A global leader in Islamic investment banking 1Q08 Domestic Islamic League Table 1Q08 Global Islamic League Table Rank Company Market Share Rank Company Market Share 1 CIMB 59.3% 1 JP Morgan 22.88% 2 AmInvestment 10.2% 2 Calyon 10.68% 3 Citibank 10.2% 3 CIMB 10.01% 4 Affin Investment 8.4% 4 Citibank

  27. Slide 27: Group Asset Management and Insurance

    Group Asset Management and Insurance (RM mil) 1Q07 4Q07 1Q08 Q-o-Q Y-o-Y Fee income 31 39 42 8% 35% Other income 19 28 5 (82%) 74% Insurance 59 (22) 6 127% (88%) Total income 109 45 53 18% (51%) GAM’s Total AUM` (RM bil) 31st Dec 07 31st Mar 08 CPAM 19.2 17.8 Wholesale 2.1 2.0 Total AUM 21.3 19.8 27

  28. Slide 28: Indonesian Banking

    BCHB GROUP : FIRST QUARTER 2008 RESULTS INDONESIAN BANKING 28

  29. Slide 29: Bank Niaga

    Bank Niaga (IDR billion) 1Q07 1Q08 Y-o-Y 4Q07 Q-o-Q Net Interest Income 628 657 5% 678 (3%) Non Interest Income 121 104 (14%) 101 3% Operating Income 749 761 2% 779 (2%) Overhead Expenses (377) (448) 19% (477) (6%) Pre Provision Operating Profit 372 313 (16%) 302 4% Provisions Expense (136) (106) (2

  30. Slide 30: 1Q08 CIMB-Niaga synergy: 32% of YTD synergy target achieved

    1Q08 CIMB-Niaga synergy: 32% of YTD synergy target achieved 1Q08 Actual Vs 1Q08 Target Synergy PBT RM mil 50 43.3 40 29.3 30 20 13.8 10.7 12.5 10 1.2 1.5 1.9 0 Credit Cards Group Treasury Corporate Banking Total Synergy PBT 1Q08 Actual Synergy PBT 1Q08 Target Synergy PBT Corporate Banking Credit Car

  31. Slide 31: Capital Management & Other Developments

    BCHB GROUP : FIRST QUARTER 2008 RESULTS CAPITAL MANAGEMENT & OTHER DEVELOPMENTS 31

  32. Slide 32: BCHB: Gearing and double leverage at target levels

    BCHB : Gearing and double leverage at target levels BCHB Holding Company (RM mil) 1Q07 4Q07 1Q08 Pro-forma* Investment in subsidiaries 11,218 11,429 11,429 11,429 External debt & borrowings 5,042 3,305 3,305 3,305 Share capital 3,233 3,374 3,371 3,371 Reserves 4,483 6,477 6,344 6,374 Gearing ratio 6

  33. Slide 33: G-SAM update

    G-SAM update G-SAM recovery portfolio * 31st Dec 2007 31st Mar 2008 Totally legally claimable RM12.9 bil RM12.7 bil Net book value RM2.7 bil RM2.5 bil Estimated FSV RM5.1 bil RM4.7 bil Gross NPL RM5.2 bil RM5.0 bil Gross / Net NPL ratios 83.2% / 70.6% 83.9% / 71.2% Good Bank portfolio 31st Dec 2007

  34. Slide 34: Thank You

    THANK YOU BUMIPUTRA COMMERCE

CIMB Group Holdings Berhad — Q1 2008 Earnings Presentation on 6ix