Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — Q1 2019 Earnings Presentation
34 slides from Cimb Group Holdings Bhd's earnings presentation, May 29, 2019
Slide 1: Analyst Presentation 1Q19 Results
Analyst Presentation 1Q19 Results CIMB Group Holdings 29 May 2019 FORWARD Together 1
Slide 2: Key Financial Highlights
Key Financial Highlights Net Profit (RM) ROE Gross Loan (RM) 1,192mil 9.2% 350.7bil -8.7%YoY -100bps YoY +7.6% YoY Cost-to-Income Loan Loss Charge CET1 55.3% 0.34% 12.8% +550bps YoY -15bps YoY +110bps YoY 2
Slide 3: Key Business/Operational Highlights
Key Business/Operational Highlights Continued Positive Provisions Trajectory Gradual Recovery in Wholesale Banking Revenues Revenue (RM 'mil) 0.49% +3.9% YoY +5.5% QoQ LLC ~ 0.33% 0.34% 1,147 1,130 1,192 Loan Provisions 401 NII 288 300 741 752 732 (RM 'mil) NoII 406 378 460 1Q18 4Q18 1Q19 1Q18 4Q18
Slide 4: PBT By Segment
PBT By Segment Consumer PBT declined in 1Q19 from lower NOII GVP & Funding 14% Strong Commercial from business improvement and declining provisions Consumer 1Q19 Banking Group PBT Wholesale recovery offset by higher corporate 36% provisions Wholesale RM1,603mil Banking 30% 8.0% GVPF lower from the a
Slide 5: PBT By Country
PBT By Country Others Malaysia PBT lower due to deconsolidation of CPAM Singapore 4% and reduced fee income 7% Thailand Lower provisions drove improved Indonesia and 10% Thailand performance Malaysia Singapore decreased slightly YoY from derecognition of 55% CPAM Indonesia 24% Malaysia Indonesia Tha
Slide 6: Operating Income
Operating Income (RM 'mil) 1Q19 YoY QoQ Weaker NOII YoY from lower bancassurance and wealth Net interest income 3,064 4.3% 1.0% management fees and absence of RM152 million gain from the sale Non interest income 1,102 (19.3%) 6.0% of 50% of CSI in 1Q18 Total 4,166 (3.2%) 2.2% Improved capital market
Slide 7: Operating Expenses
Operating Expenses (RM 'mil) 1Q19 YoY QoQ Opex increase mainly from investments and Foward23-related Personnel 1,351 8.4% 7.6% expenses. Excluding these, core opex rose by 3.5% Establishment 503 3.7% 1.8% Higher personnel costs in Malaysia Marketing 68 17.2% (54.7%) and Thailand Admin & General 380
Slide 8: Loan Provisions
Loan Provisions -25.2% YoY +4.2% QoQ 25.2% YoY decline from Consumer and Commercial Banking RM 'mil Provisions +4.2% QoQ from Wholesale Banking 401 Asset quality indicators remain stable 288 300 1Q18 4Q18 1Q19 106.8 107.1 Allowance Coverage (%) ^ 105.3 106.3 103.5 3.2 3.2 3.1 2.9 3.0 Gross Impaired
Slide 9: Gross Loans
Gross Loans (RM 'bil) Mar-19 YoY QoQ Loans-to-Deposit Ratio (%) Consumer Banking 172.5 7.7% 1.6% 94.0 93.1 Commercial Banking 66.4 6.4% 1.4% 91.2 91.4 89.7 Wholesale Banking 111.8 8.1% 0.6% Total 350.7 7.6% 1.3% Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Others ~ 5% Loan Growth by Country (YoY) Singapore 8%
Slide 10: Deposits
Deposits (RM 'bil) Mar-19 YoY QoQ CASA Ratio (%) Consumer Banking 169.9 14.0% 3.3% 35.6 35.1 Commercial Banking 63.8 (1.1%) (1.8%) 32.7 32.7 32.9 Wholesale Banking 150.1 0.2% (0.1%) Total 383.8 5.6% 1.1% Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Others Singapore 2% Deposit Growth by Country (YoY) 11% ^ Tha
Slide 11: Capital and Liquidity Management
Capital and Liquidity Management Total Capital 16.4% 17.2% 16.2% CET1 stood at 12.8% as at end- Tier 2 3.2% 1Q19 (+110bps YoY; 20bps QoQ) 3.4% 2.6% 1.4% 0.8% 70.3% DRS take-up rate for FY18 1.3% Tier 1 second interim dividend CET1 11.7% 12.6% 12.8% LCR remains comfortably above 100% for all banking
Slide 12: Consumer Banking
Consumer Banking (RM 'mil) 1Q19 YoY QoQ Personal Financing Net interest income 1,357 0.6% 2.0% Credit Cards 3% Others 2% 5% Non interest income 424 (19.2%) (10.7%) Auto Operating income 1,781 (5.0%) (1.4%) 13% Gross Loans RM172.5bil Overhead expenses (1,090) 8.7% 2.9% Term 7.7% PPOP 691 (20.7%) (7.5
Slide 13: Commercial Banking
Commercial Banking (RM 'mil) 1Q19 YoY QoQ Others ^ Singapore 2% Net interest income 658 2.3% 0.5% 14% Non interest income 147 (9.8%) 13.1% Thailand Operating income 805 (0.1%) 2.5% 7% Gross Loans Malaysia RM66.4bil 46% Overhead expenses (437) 5.8% (2.7%) 6.4% PPOP 368 (6.4%) 9.5% Indonesia (Provisio
Slide 14: Wholesale Banking
Wholesale Banking (RM 'mil) 1Q19 YoY QoQ Others ^ 4% Net interest income 732 (1.2%) (2.7%) Singapore 15% Non interest income 460 13.3% 21.7% Operating income 1,192 3.9% 5.5% Thailand Gross Loans Malaysia 8% RM111.8bil 53% Overhead expenses (594) 7.8% (4.7%) 8.1% PPOP 598 0.3% 17.9% Indonesia (Provis
Slide 15: Group Ventures&Partnerships (GVP) and Funding
Group Ventures&Partnerships (GVP) and Funding * ~ Touch ‘n Go Digital (RM ‘mil) 1Q19 YoY QoQ Total Registered Users Annual Active Users (mil) (mil) Net interest income 317 54.6% 6.7% +47.8% QoQ +52.9% QoQ Non interest income 71 (73.8%) 24.6% Operating income 388 (18.5%) 9.6% 3.4 2.3 2.6 Overhead exp
Slide 16: CIMB Islamic
CIMB Islamic Islamic Financing ^ (RM 'mil) 1Q19 YoY QoQ (RM 'bil) Net financing income 516 18.9% 4.2% +16.2% YoY +4.2% QoQ Non financing income 106 (3.6%) 27.7% Operating income 622 14.3% 7.6% 71.0 74.0 63.7 Overhead expenses (220) 17.6% 21.5% PPOP 402 12.6% 1.3% (Provisions) / Writeback (21) (77.7%
Slide 17: Other Updates
[#]02 Other Updates 17
Slide 18: Forward23 Updates – By Country
Forward23 Updates – By Country Scale & Accelerate Reposition & Grow Incubate & Invest Malaysia & Indonesia Thailand, Singapore Vietnam, Philippines & Cambodia & New Ventures • Commercial Banking - push • Fast Forward programme • Good traction in our on SME growth (launch of one year into implementat
Slide 19: Forward23 Updates – By Pivots
Forward23 Updates – By Pivots • Kicked off the Transforming Customer Journeys (TCJ) programme ; focus on two key Customer Centricity journeys - Consumer Deposits and Commercial Lending. Adopting new ‘Agile’ ways of working • Institutionalised the Net Promoter Score (NPS) as a key KPI across the orga
Slide 20: Final Remarks
Final Remarks Operating environment remains challenging 1Q19 FY19 Target 2019 ROE and CIR targets dependent on revenue trajectory ROE 9.2% 9.0 - 9.5% Loan growth, capital and asset quality targets remain on track NOII to be driven by capital market activity and Dividend Payout - 40% - 60% regional d
Slide 21: Appendices
[#]04 Appendices 21
Slide 22: Earnings Summary
Earnings Summary (RM ’mil) 1Q19 1Q18 YoY 4Q18 QoQ Net interest income 3,064 2,938 4.3% 3,035 1.0% Non interest income 1,102 1,365 (19.3%) 1,040 6.0% Operating income 4,166 4,303 (3.2%) 4,075 2.2% Overhead expenses (2,302) (2,141) 7.5% (2,269) 1.5% PPOP 1,864 2,162 (13.8%) 1,806 3.2% Loan impairment
Slide 23: NOII breakdown
NOII breakdown (RM ’mil) 1Q19 1Q18 YoY 4Q18 QoQ Fee & commission 583 647 (9.9%) 680 (14.3%) Brokerage 36 37 (2.7%) 27 33.3% Asset management and security services 7 112 (93.8%) (3) (333.3%) Trading & FX 442 384 15.1% 320 38.1% Dividend income 3 4 (25.0%) 18 (83.3%) Other income 30 182 (83.5%) (2) (>
Slide 24: Key Ratios
Key Ratios (%) 1Q19 1Q18 YoY 4Q18 QoQ ROE ~ 9.2 10.2 8.8 NIM ~** 2.48 2.57 2.45 Non-interest income / total income 26.5 31.7 25.5 Cost to income 55.3 49.8 55.7 Allowance coverage (including regulatory reserve) 103.5 105.3 106.3 Allowance coverage (excluding regulatory reserve) 88.2 90.2 91.0 Loan lo
Slide 25: PBT by Segments
PBT by Segments (RM ’mil) 1Q19 1Q18 YoY 4Q18 QoQ Consumer Banking (36.4%) 583 747 (22.0%) 546 6.8% Commercial Banking (20.0%) 321 126 154.8% 187 71.7% Wholesale Banking (29.8%) 477 575 (17.0%) 542 (12.0%) Corporate Banking (20.0%) 320 432 (25.9%) 467 (31.5%) Treasury & Markets ~ (10.0%) 160 115 39.1
Slide 26: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 1Q19 1Q18 YoY 4Q18 QoQ Malaysia (RM ’mil) 407 522 (22.0%) 310 31.3% Indonesia (IDR ’bil) 214 332 (35.5%) 658 (67.5%) Thailand (THB ’mil) 680 788 (13.7%) 269 152.8% Singapore (SGD ’mil) 4 9 (55.6%) 2 100.0% Others * (RM ’mil) 15 5 200.0% 8 87.5% PBT (RM ’mi
Slide 27: Consumer Banking Key Highlights
Consumer Banking Key Highlights Malaysia YoY QoQ Indonesia YoY QoQ Consumer Gross Loans 6.8% 1.2% Consumer Gross Loans 3.7% 1.6% Mortgages 8.7% 2.0% Mortgages 13.1% 3.3% Term loans 5.3% 0.6% Auto (23.1%) (1.7%) Auto 4.8% - Credit cards 6.3% (0.3%) Credit cards - (3.4%) Consumer Deposits 0.4% 0.9% Co
Slide 28: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 1Q19 1Q18 YoY 4Q18 QoQ Net interest income 3,038 3,033 0.2% 2,999 1.3% Non interest income 1,032 992 4.0% 950 8.6% Operating income 4,070 4,025 1.1% 3,949 3.1% Overhead expenses (2,073) (1,995) 6.0% (2,004) 3.4% PPOP 1,997 2,070 (3.5%) 1,945 2.7% Provisions (
Slide 29: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 1Q19 1Q18 YoY 4Q18 QoQ ROE ^ 9.5 9.4 9.1 NIM ^ 5.28 5.10 5.11 Cost to Income 50.9 48.6 50.8 Loan Loss Coverage # 113.8 105.5 105.9 Allowance Coverage 86.9 79.1 80.0 Loan Loss Charge ^ 1.6 1.8 1.5 Gross Impaired Loans Ratio 3.9 4.6 4.0 Gross NPL (BI Definitio
Slide 30: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 1Q19 1Q18 YoY 4Q18 QoQ (THB 'mil) Net interest income 2,707 2,596 4.3% 2,804 (3.5%) Non interest income 789 787 0.3% 647 21.9% Operating income 3,497 3,382 3.4% 3,451 1.3% Overhead expenses (2,091) (1,933) 8.2% (2,328) (10.2%) PPOP 1,406 1,449 (3.
Slide 31: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 1Q19 1Q18 YoY 4Q18 QoQ ROE ^ 3.5 2.1 (5.7) NIM ^ 3.31 3.98 3.56 Cost to Income 59.8 57.2 67.4 Loan Loss Coverage ** 109.5 92.3 107.0 Loan Loss Charge ^ 1.7 2.3 2.8 Gross NPL ratio ** 4.3 5.2 4.3 Net NPL ratio ** 2.3 2.7 2.3 ROA 0.3 0.2 (0.6) Loan to Deposit 1
Slide 32: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 1Q19 1Q18 1Q19 1Q18 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 17.5% 2 29.0% 1 DCM 11.0% 5 7.2% 6 Sukuk 18.1% 2 28.9% 1 M&A - - - - M&A 38.4% 1 6.6% 6 Syndication ^ 9.6% 4 1.7% 13 Syndication ^ 28.6% 1 1.0% 13 IPO - - - - IPO
Slide 33: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 1Q19 1Q18 1Q19 1Q18 Market Market ASEAN Market Market Rank Rank Rank Rank Share Share Share Share M&A - - - - DCM 10.1% 2 9.8% 2 Syndication ^ - - - - M&A 7.2% 6 0.9% 20 IPO 0.4% 43 - - Syndication ^ 4.7% 4 3.9% 11 ECM 0.1% 54 0.6% 21 IPO 3.1% 8 - - ~ Cash Equities 0.
Slide 34: Corporate Responsibility
Corporate Responsibility CSR Spend as at March 2019 Community Sports Education Development 3% 17% 6% CIMB Non-CIMB Foundation Foundation* RM 2.0mil Community RM 3.4mil Education Development 91% 83% Organised free health screening with Ayo Menabung Dan Berbagi (AMDB) Contribution to Ban Phaeo Hospita