Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — FY2023 Earnings Presentation
46 slides from Cimb Group Holdings Bhd's earnings presentation, Feb 29, 2024
Slide 1: Analyst Presentation FY23 Results
Analyst Presentation FY23 Results CIMB Group Holdings 29 February 2024 FORWARD Your Ambitions 1
Slide 2: 01 Overview
01 Overview 2 2
Slide 3: FY23 Year In Review
FY23 Year In Review Achieved all targets but one, with ROE increasing to FY23 FY23 10.7% in 2023 from 10.2% (BAU) and 9.0% (reported) in FY23 Target Guidance 2022 Robust FY23 performance underpinned by: ROE 10.7% 10.2-11.0% 10.2-11.0% • Solid operating income YoY growth driven by strong NOII expansi
Slide 4: 5-Year Performance Highlights
5-Year Performance Highlights 2019 * 2021* 2022 * Value Created** CIMB Group 2020 2023 CAGR (RM’mil) BAU BAU BAU Market Cap Annualised + Dividends TSR Revenue 17,796 16,987 18,372 19,838 21,014 4.2% (RM ’mil) PBT 6,618 1,530 6,345 8,492 9,541 9.6% CIMB 38,056 +20.7% PAT 5,014 1,194 4,648 6,206 6,981
Slide 5: Key Highlights
Key Highlights Sustained topline Strong loans, Opex trend higher Asset quality FY23 reported net growth YoY from deposits and CASA with CIR at 46.9% preserved with FY23 profit grew 28.3% robust NOII growth LLC better than with ROE within target at 32bps target at 10.7% Operating income momentum main
Slide 6: Key Business/Operational Highlights
Key Business/Operational Highlights Robust revenue growth driven by strong NOII and diversified Costs within expectations, marginal negative JAW due to portfolio challenging NII growth (RM ‘mil) QoQ YoY (RM 'mil) 46.9% +1.3% Q-o-Q +5.9% Y-o-Y Malaysia +2.5% +1.9% 46.5% CIR 19,838 21,014 Indonesia -5
Slide 7: PBT By Segment
PBT By Segment Consumer PBT +8.0% YoY from improved provisions. Higher CIMB Digital Assets & Group Funding provisions from Thailand and absence of writebacks from 17% Malaysia in 4Q23 led to a 31.5% QoQ decline Consumer Banking Strong Commercial performance YoY and QoQ on the back of FY23 31% toplin
Slide 8: PBT By Country
PBT By Country Others Malaysia PBT +9.3% YoY from strong trading & FX income and Singapore 0.2% lower provisions; +6.3% QoQ attributed to higher fees and other 10% income, as well as lower provisions Thailand 3% Strong Indonesia performance YoY underpinned by higher NOII FY23 and lower provisions; 4
Slide 9: Operating Income
Operating Income NII -3.5% YoY and -1.5% QoQ attributed to NIM (RM 'mil) 4Q23 Q-o-Q FY23 Y-o-Y compression from higher cost of deposits NOII rose 36.5% YoY from investment and Net interest income 3,701 (1.5%) 14,626 (3.5%) market-related income, and gains on NPL sales. 4Q23 NOII +7.9% attributed to
Slide 10: Operating Expenses
Operating Expenses FY23 opex +6.9% YoY on the back of cost (RM 'mil) 4Q23 Q-o-Q FY23 Y-o-Y inflation and technology investments. 4Q23 opex rose 5.3% QoQ due to year-end cost Personnel 1,566 5.9% 5,936 7.6% accruals and restructuring cost Establishment 198 (7.0%) 831 2.1% YoY growth in marketing cost
Slide 11: Total Provisions
Total Provisions Total provisions dropped 26.4% YoY (RM 'mil) 4Q23 3Q23 Q-o-Q FY23 FY22 Y-o-Y attributed to lower ECL in Consumer and Commercial. 4Q23 rose 27.9% Loan Impairment 373 297 25.6% 1,534 1,953 (21.5%) mainly due to top up provisions from Commitment & Contingencies (34) (69) 50.7% (175) 31
Slide 12: Asset Quality
Asset Quality Loan Loss Charge (bps) * 10bps QoQ uptick in LLC from higher Consumer ECL in Thailand 70 151 FY23 LLC improved to 32bps due to the muted credit environment and 37 39 31 73 51 sustained asset quality 21 45 32 improvements, exceeding FY23 guidance of 35-45bps Gross Impaired Loans Ratio (
Slide 13: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 31 Dec-23 Q-o-Q Y-o-Y Consumer Banking 229.8 2.3% 7.4% 88.6% 88.4% 88.3% 88.1% Commercial Banking 71.4 2.3% 8.8% 87.8% Wholesale Banking 139.7 1.7% 9.5% Total 440.9 2.1% 8.3% Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Loan Growth by Country (Y-o-Y) Others Singapo
Slide 14: Deposits
Deposits CASA Ratio (RM 'bil) 31 Dec-23 Q-o-Q Y-o-Y 42.5% 41.3% 41.2% Consumer Banking 219.6 2.6% 16.5% 39.9% Commercial Banking 91.3 3.4% 8.6% 34.4% Wholesale Banking 186.8 (0.6%) (0.6%) Total Deposits 497.7 1.5% 8.1% Total CASA 204.8 6.6% 11.5% FY19 FY20 FY21 FY22 FY23 WY Deposit Growth by Country
Slide 15: Dividend Payout
Dividend Payout Dividend per share Total dividend Dividend per Dividend Yield (sen) Period payout share +65.4% (%) (RM’mil) (sen) 1st Interim ^ +38.5% 2nd Interim 43.00 FY19 2,553 26.00 5.6 Special Dividend 36.00 7.00 FY20 477 4.81 1.3 26.00 26.00 22.99 18.50 18.50 12.00 13.00 FY21 2,328 22.99 4.5 1
Slide 16: Capital and Liquidity Management
Capital and Liquidity Management 17.6% 18.3% 18.4% 18.2% Total Capital 16.8% Post-dividend Dec-23 CET1 Tier 2 3.0% 2.9% 3.1% 3.1% sustained at 14.5% and remained 2.8% 0.9% 0.8% 0.6% Tier 1 1.1% 1.3% above target CET1 CET1 rose 10bps QoQ from the 12.9% 13.3% 14.5% 14.5% 14.5% higher PAT, FVOCI gains
Slide 17: Consumer Banking
Consumer Banking Personal (RM 'mil) 4Q23 Q-o-Q FY23 Y-o-Y Financing Others 3% 4% Credit Cards Net interest income 1,637 (6.4%) 6,640 (0.3%) 4% Non interest income 576 11.2% 2,126 4.2% Auto 13% Gross Loans Operating income 2,213 (2.4%) 8,766 0.8% RM229.8 bil Term 7.4% Overhead expenses (1,274) (0.3%)
Slide 18: Commercial Banking
Commercial Banking (RM 'mil) 4Q23 Q-o-Q FY23 Y-o-Y Others Singapore 4% Net interest income 796 2.8% 3,133 0.9% 8% Thailand Non interest income 213 (3.6%) 822 24.5% 1% Indonesia Gross Loans Operating income 1,009 1.4% 3,955 5.1% 25% RM71.4 bil Overhead expenses (522) 7.2% (1,944) 7.8% 8.8% Malaysia 6
Slide 19: Wholesale Banking
Wholesale Banking (RM 'mil) 4Q23 Q-o-Q FY23 Y-o-Y Others 2% Net interest income 707 10.1% 2,752 (24.1%) Singapore 21% Non interest income 736 4.1% 3,005 61.9% Gross Loans Operating income 1,443 7.0% 5,757 5.0% Malaysia Thailand RM139.7 bil 51% Overhead expenses (619) 11.5% (2,314) 4.4% 8% 9.5% PPOP
Slide 20: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding Touch ‘n Go Digital (RM 'mil) 4Q23 Q-o-Q FY23 Y-o-Y Total Registered Users Annual Transacting (mil) Users (mil) Net interest income 561 (5.2%) 2,101 18.7% +41.4% Y-o-Y +70.7% Y-o-Y Non interest income 149 41.9% 435 250.8% 26.3 15.7 Operating income 710 1.9% 2,536
Slide 21: CIMB Islamic
CIMB Islamic Islamic Financing (RM ‘mil) 4Q23 Q-o-Q FY23 Y-o-Y (RM ‘bil) Net financing income 858 <0.1% 3,270 (2.8%) +5.1% Q-o-Q +13.8% Y-o-Y Non financing income 193 3.8% 740 55.5% 143.3 136.3 Operating income 1,051 0.7% 4,010 4.5% 125.9 Overhead expenses (329) 4.4% (1,358) 8.6% PPOP 722 (1.0%) 2,6
Slide 22: 02 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> 22 22
Slide 23: Forward23+ Strategic Plan
Forward23+ Strategic Plan 23
Slide 24: Positive momentum towards meeting our Forward23+ ambitions
Positive momentum towards meeting our Forward23+ ambitions Key Group Forward23+ Shareholder Value Creation Actual Metrics Ambition Annualised FBM CIMB 2019 2020 2021 2022 2023 2024 TSR (%)* KLCI BAU BAU BAU 9.3% 10.2% 10.7% 2023 +6.6% -2.7% 8.1% ROE 2.1% Top Quartile 11.5-12.5% From 31/5/20 +18.6% -
Slide 25: 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% Dec-23 32%▼ 10%▼ 42% ▼ 16%
Slide 26: Digital Reliability/Customer Centricity
Digital Reliability/Customer Centricity Platform availability maintains above target with steady growth in digital transactions Clicks & Bizchannel Digital Platform Incidences Committed to continue investing to strengthen % Availability No. Unscheduled resiliency, stabilise uptime Country Malaysia D
Slide 27: TSR and ROE Journey and Trajectory
TSR and ROE Journey and Trajectory 30-80 bps 11.0 – 10.7% 11.5% 8.5% 2019 Portfolio Reshaping Opex Optimisation Portfolio Opex ECL Capital NIM NIM Compression FY23 Drivers 2024 Guidance Reported ROE ROE Reshaping Optimisation Reduction Accumulation & Compression ROE Others Key Highlights Future Driv
Slide 28: Sustainability Updates
Sustainability Updates S&P Global Corporate Sustainability Assessment (CSA) Year 2020 2021 2022 2023 Key Highlights for the Year Ranking 65th 79th 80th 88th • Published "Our Path to Net Zero: Charting a Vs target of 55th Exceeding 2024 Improvement Surpassing Course to Decarbonisation” whitepaper, ta
Slide 29: 03 Final Remarks
03 Final Remarks <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 29
Slide 30: Final Remarks
Final Remarks FY24 Met all FY23 targets save for CIR as the Forward23+ FY24 FY23 Forward23+ initiatives and strategy drove NOII, sustained loan and Guidance Ambition deposit growth as well as controlled costs and provisions Top quartile ROE 10.7% 11.0-11.5% The Group is cautiously optimistic of cont
Slide 31: 04 Appendices
04 Appendices <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only>
Slide 32: Exceptional Items
Exceptional Items (RM 'mil) FY23 4Q22 3Q22 2Q22 1Q22 FY22 PBT BAU 9,541 2,024 2,210 2,157 2,101 8,492 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 / Rest
Slide 33: Earnings Summary
Earnings Summary FY22 4Q22 (RM ’mil) 4Q23 3Q23 Q-o-Q FY23 Y-o-Y Y-o-Y BAU^ BAU^ Net interest income 3,701 3,757 (1.5%) 14,626 15,158 (3.5%) 4,033 (8.2%) Non interest income 1,674 1,551 7.9% 6,388 4,680 36.5% 1,187 41.0% Operating income 5,375 5,308 1.3% 21,014 19,838 5.9% 5,220 3.0% Overhead expense
Slide 34: Key Ratios
Key Ratios FY22 4Q22 (%) 4Q23 3Q23 Q-o-Q FY23 Y-o-Y Y-o-Y BAU^ BAU^ ROE ~ 10.1 10.9 ▼ 10.7 10.2 ▲ 9.5 ▲ Reported ROE 10.1 10.9 ▼ 10.7 9.0 ▲ 8.5 ▲ NIM ~* 2.15 2.25 ▼ 2.22 2.51 ▼ 2.57 ▼ Non-interest income / total income 31.2 29.2 ▲ 30.4 23.6 ▲ 22.7 ▲ Cost to income 48.8 46.9 ▲ 46.9 46.5 ▲ 47.5 ▲ Allo
Slide 35: NOII breakdown
NOII breakdown (RM ’mil) 4Q23 3Q23 Q-o-Q FY23 FY22 Y-o-Y Fee & commission 754 654 15.3% 2,630 2,575 2.1% Brokerage 0 1 (100.0%) 1 7 (85.7%) Asset management and security services 9 6 50.0% 26 27 (3.7%) Trading & FX 797 806 (1.1%) 3,189 1,788 78.4% Dividend income 13 18 (27.8%) 68 51 33.3% Other inco
Slide 36: PBT by Segments
PBT by Segments FY22 PBT (RM ’mil) 4Q23 3Q23 Q-o-Q FY23 Y-o-Y BAU^ Consumer Banking (31.3%) 638 932 (31.5%) 2,981 2,760 8.0% Commercial Banking (18.7%) 515 331 55.6% 1,785 1,456 22.6% Wholesale Banking (33.0%) 801 781 2.6% 3,149 3,059 2.9% Corporate Banking (19.3%) 424 511 (17.0%) 1,844 1,748 5.5% T
Slide 37: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 4Q23 3Q23 Q-o-Q FY23 FY22 Y-o-Y Malaysia (RM ’mil) 399 637 (37.4%) 2,023 1,952 3.6% Indonesia (IDR ’bil) 919 859 7.0% 2,831 1,427 98.4% Thailand (THB ’mil) (781) (61) (1180.3%) (454) 1,685 (126.9%) Singapore (SGD ’mil) 15 11 36.4% 39 39 0.0% Others * (RM ’
Slide 38: Asset Quality & Moratorium
Asset Quality & Moratorium Gross Loans Bonds Covid-19 Impacted Sectors Sectors 31 Dec-23 31 Dec-23 Hospitality 1.0% 0.1% Retail 2.5% 0.1% Aviation 0.2% 0.5% Leisure 0.3% 0.4% Total: Directly impacted sectors 4.0% 1.1% vs 30 Jun-23 4.4% 1.1% Others: Indirectly impacted sectors 19.9% 4.2% vs 30 Jun-23
Slide 39: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Loan Exposure: Borrowers Status: Impaired 1.4% of total Group gross loans 19% Thailand Watch List (M & H) 7% 0% Singapore 16% Normal 81% Indonesia Segmental Exposure: 8% Oil Traders Malaysia 2% Upstream 69% 13% Downstream As at Dec-23, the O&G impairment ratio stood at 19.1%
Slide 40: 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 2.0% 5.3% Consumer Gross Loans 2.3% 6.9% Mortgages 2.2% 9.1% Mortgages 0.1% 2.3% Term loans 0.0% (9.3%) Auto 5.2% 15.7% Auto 2.6% 9.4% Credit cards 3.2% 2.3% Credit cards 6.6% 14.0% Consumer Deposits (0
Slide 41: CIMB Niaga: Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 4Q23 3Q23 Q-o-Q FY23 FY22 Y-o-Y Net interest income 3,165 3,352 (5.6%) 13,352 13,476 (0.9%) Non interest income 1,114 1,136 (1.9%) 5,433 5,390 0.8% Operating income 4,279 4,488 (4.7%) 18,786 18,866 (0.4%) Overhead expenses (2,007) (2,077) (3.4%) (8,422) (8,47
Slide 42: CIMB Niaga: Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 4Q23 3Q23 Q-o-Q FY23 FY22 Y-o-Y ROE ^ 13.9 15.3 ▼ 15.0 12.6 ▲ NIM ^ 4.05 4.33 ▼ 4.40 4.69 ▼ Cost to Income 46.9 46.3 ▲ 44.8 44.9 ▼ Loan Loss Coverage # 292.1 267.1 ▲ 292.1 242.7 ▲ Allowance Coverage 110.0 108.8 ▲ 110.0 94.7 ▲ Loan Loss Charge ^ 0.5 0.4 ▲ 1.0
Slide 43: CIMB Thai: Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 4Q23 3Q23 Q-o-Q FY23 FY22 Y-o-Y (THB 'mil) Net interest income 2,413 2,476 (2.6%) 9,768 9,605 1.7% Non interest income 1,037 689 50.4% 4,003 3,996 0.2% Operating income 3,450 3,165 9.0% 13,772 13,601 1.3% Overhead expenses (2,383) (2,200) 8.3% (8,
Slide 44: CIMB Thai: Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 4Q23 3Q23 Q-o-Q FY23 FY22 Y-o-Y ROE ^ (1.1) 3.1 ▼ 3.4 6.5 ▼ NIM ^ 2.4 2.6 ▼ 2.6 2.7 ▼ Cost to Income 69.1 69.5 ▼` 62.7 57.7 ▲ Loan Loss Coverage ** 124.2 111.3 ▲ 124.2 114.6 ▲ Loan Loss Charge ^ 1.9 0.8 ▲ 1.2 0.9 ▲ Gross NPL ratio ** 3.3 3.2 ▲ 3.3 3.2 ▲ ROA (
Slide 45: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) FY23 FY22 FY23 FY22 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 25.6% 1 21.6% 2 DCM 5.4% 8 6.2% 8 Sukuk 27.7% 1 22.3% 2 M&A - - 2.8% 14 M&A 27.2% 2 64.7% 1 Syndication ^ 2.8% 9 4.2% 6 Syndication ^ 12.8% 2 17.7% 2 IPO - - 2.6%
Slide 46: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) FY23 FY22 FY23 FY22 ASEAN Market Market Global Market Market Rank Rank Rank Rank Share Share Share Share DCM 13.3% 1 9.9% 1 Sukuk 7.2% 2 8.3% 3 M&A 2.1% 20 10.6% 8 Syndication ^ 2.4% 15 3.3% 11 IPO 2.6% 11 4.7% 6 ECM 8.3% 3 9.2% 1 Sources: Dealogic, Bloomberg, Local S