Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — FY2020 Earnings Presentation
39 slides from Cimb Group Holdings Bhd's earnings presentation, Feb 26, 2021
Slide 1: Analyst Presentation FY20 Results
Analyst Presentation FY20 Results CIMB Group Holdings 26 February 2021 FORWARD Your Ambitions 1
Slide 2: Overview
01 Overview <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 2
Slide 3: Key Highlights: FY20 ROE at 2.1%
Key Highlights: FY20 ROE at 2.1% Top line improvement in 4Q20 Costs exceed target Elevated provisions in FY20 across MIST Macro headwinds due to resurgence of Expect 2021 performance to be stronger COVID across the region but challenges remain Operating income -3.4% YoY, as NOII -13.1% from weaker E
Slide 4: Key Business/Operational Highlights
Key Business/Operational Highlights Stronger 4Q20 Operating Income Costs Were Kept Firmly Under Control Net Interest Income 53.4% Non Interest income 52.2% 4,716 CIR 4,465 9,501 Operating Operating 3,351 Cost 8,977 Income (RM 'mil) 3,228 (RM 'mil) 1,237 1,365 3Q20 4Q20 FY19 FY20 BAU* CASA Ratio Cont
Slide 5: PBT By Segment
PBT By Segment 4Q20 Consumer PBT weaker from provisions mainly due to management overlays. 4Q20 Consumer PPOP grew 12.3% QoQ CIMB Digital Consumer Assets & Group Banking Commercial improved in 4Q20 due to absence of FY20 provisions for legacy loans in Singapore in 3Q20 Funding 41% Group PBT 38% Whol
Slide 6: PBT By Country
PBT By Country Others Malaysia PBT weakened QoQ and YoY due to specific -5% Corporate provisions and management overlays in Consumer Singapore -64% Malaysia Indonesia PBT declined YoY due to higher Corporate & FY20 108% Commercial provisions whilst QoQ improved from Group PBT RM1,530 mil lower Corpo
Slide 7: Operating Income
Operating Income (RM 'mil) 4Q20 Q-o-Q FY20 Y-o-Y NII +3.8% QoQ largely driven by improved NIM and higher average interest earning assets FY20 NIM -14bps YoY. Excluding modification Net interest income 3,351 3.8% 12,725 0.5% loss, underlying NIM was -12bps YoY. 4Q20 NIM Net interest income 3,272 4.4%
Slide 8: Operating Expenses
Operating Expenses * Opex -5.5% YoY from reduction in all segments (RM 'mil) 4Q20 Q-o-Q FY20 Y-o-Y except establishment (due to technology investments) as cost controls remain tight Personnel 1,219 (5.0%) 5,144 (4.7%) Opex +5.6% QoQ driven by higher technology Establishment 559 9.2% 2,071 3.4% and A
Slide 9: Loan Provisions/ECL
Loan Provisions/ECL -8.9% Q-o-Q +162.2% Y-o-Y Significant increase YoY due to O&G impairments in Singapore, legacy loans and 5,342 Covid-19 related provisions RM 'mil 1,528 QoQ lower due to reduction in underlying MEF credit related provisions 1,520 725 & Overlay 1,384 FRS9 533 2,037 Allowance cover
Slide 10: Total Provisions
Total Provisions FY19 (RM 'mil) 3Q20 4Q20 Q-o-Q FY20 Y-o-Y BAU* Loan Impairment 1,520 1,384 (8.9%) 1,639 5,342 225.9% Commitment & Contingencies 65 75 15.4% (12) 192 >1000% Debt instruments/ securities 221 395 78.7% (43) 731 >1000% Others 35 402 >1000% 124 533 329.8% Total 1,841 2,256 22.6% 1,708 6,
Slide 11: Asset Quality & Moratorium
Asset Quality & Moratorium Gross Loans Bonds Covid-19 Impacted Sectors Continuation of Group-wide R&R Sectors 31 Dec-20 31 Dec-20 approach across all segments and Hospitality 1.3% 0.0% countries Retail 2.4% 0.1% Extension of Malaysia Target Aviation 0.2% 0.5% Assistance Programme via CTAP and ETAP L
Slide 12: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Loan Exposure: Borrowers Status: 2.5% of total Group Impaired gross loans 34% Thailand 8% Normal Singapore 55% 15% Watch List Indonesia 31 Dec-20 (M & H) 1% RM8.6bil 11% Malaysia 76% Segmental Exposure: Upstream Oil Traders 3% 11% As at Dec-20, the O&G impairment ratio stood
Slide 13: Gross Loans
Gross Loans (RM 'bil) Dec-20 Q-o-Q Y-o-Y Loans-to-Deposit Ratio Consumer Banking 189.8 1.6% 2.7% 92.0% 91.2% 88.2% 89.0% Commercial Banking 63.1 (1.1%) (3.7%) 87.7% Wholesale Banking 112.9 (2.4%) (5.2%) Total 365.8 (0.2%) (1.0%) Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Others Loan Growth by Country (Y-o-Y
Slide 14: Deposits
Deposits (RM 'bil) Dec-20 Q-o-Q Y-o-Y CASA Ratio Consumer Banking 177.7 0.2% (1.2%) 41.3% 41.6% 40.0% Commercial Banking 71.0 1.7% 8.1% 34.4% 36.5% 38.4% Wholesale Banking 162.1 (4.9%) 3.8% Total 410.8 (1.7%) 2.3% Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Others WY Singapore 2% Deposit Growth by Country (Y
Slide 15: Capital and Liquidity Management
Capital and Liquidity Management 16.5% 17.1% 16.8% 17.6% Total Capital 3.2% 2.8% 3.0% Tier 2 2.9% 1.5% 1.1% 1.3% Tier 1 1.4% CET1 12.2% 12.5% 12.9% 13.3% @ # ~ FY17 FY18 FY19 ^ FY20 Liquidity Coverage Ratio 138% 156% 156% Record high CET1 of 13.3% as at end Dec- CIMB Bank Global * 20. This includes
Slide 16: Consumer Banking
Consumer Banking (RM 'mil) 4Q20 Q-o-Q FY20 Y-o-Y Personal Financing Credit Cards 3% Others Net interest income 1,515 1.0% 5,709 3.7% 2% 4% Non interest income 534 28.7% 1,713 (11.5%) Auto 13% Gross Loans Operating income 2,049 7.0% 7,422 (0.2%) RM189.8 bil Term Overhead expenses (1,081) 2.7% (4,289)
Slide 17: Commercial Banking
Commercial Banking (RM 'mil) 4Q20 Q-o-Q FY20 Y-o-Y Others^ Singapore 3% Net interest income 705 4.1% 2,751 1.9% 9% Thailand Non interest income 135 3.8% 539 (24.3%) 5% Gross Loans Operating income 840 4.1% 3,290 (3.5%) RM63.1 bil Malaysia Indonesia 3.7% 57% Overhead expenses (422) (1.2%) (1,718) (4.
Slide 18: Wholesale Banking
Wholesale Banking (RM 'mil) 4Q20 Q-o-Q FY20 Y-o-Y ^ Others^ Singapore 5% Net interest income 891 1.8% 3,432 10.6% 15% Non interest income 531 24.1% 1,466 (18.5%) Gross Loans Operating income 1,422 9.1% 4,898 (0.1%) Thailand RM112.9bil Malaysia Overhead expenses (488) (0.4%) (2,023) (11.7%) 9% 5.2% 5
Slide 19: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding TnGD (RM ‘mil) 4Q20 Q-o-Q FY20 Y-o-Y Total Registered Users Annual Active Users (mil) (mil) Net interest income 240 36.4% 833 (38.4%) +123.4% Y-o-Y +148.7% Y-o-Y Non interest income 165 (37.5%) 746 8.0% 15.2 10.5 Operating income 405 (8.0%) 1,579 (22.7%) Overhead
Slide 20: CIMB Islamic
CIMB Islamic ^ Islamic Financing (RM ‘mil) 4Q20 Q-o-Q FY20 Y-o-Y (RM 'bil) +5.2% Y-o-Y +2.0% Q-o-Q Net financing income 694 8.4% 2,326 2.9% Non financing income 81 (37.2%) 436 (6.8%) 98.7 96.8 Operating income 775 0.8% 2,762 1.2% 93.8 Overhead expenses (238) 2.1% (997) (4.4%) PPOP 537 0.2% 1,765 4.7
Slide 21: Other Updates
02 Other Updates <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 21 21
Slide 22: Strategic Plan Recalibration
Strategic Plan Recalibration Vision To be the leading focused ASEAN bank Strategic Themes 1 Delivering a) Reshape b) Drive cost c) Digitise for d) Focused investments Sustainable portfolio efficiency value Facilitate intra-ASEAN wholesale Accelerate profitable Reset cost base Strengthen Pr
Slide 23: Forward23+ Progress
Forward23+ Progress 25 Core Group Programmes Tackling Cost Transform Disciplined Purpose Driven Reshaping Portfolio Digitise for Value Customer Centricity Efficiency Fundamentals Execution Organisation 1. Stringent portfolio 4. Detailed structured 8. Develop and execute 12. TCJ and Digitisation – 14
Slide 24: Final Remarks
03 Final Remarks <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 24 24
Slide 25: Final Remarks
Final Remarks FY20 performance impacted by elevated provisions in all countries and business FY20 Target FY20 FY21 Target segments, management overlays, MEF adjustments and modification loss ROTCE 10.8-11.3% 2.6% 8-9% Maintaining cautious growth stance in 2021 guided by the Forward23+ strategy ROE 9
Slide 26: Appendices
04 Appendices Strictly Private & Highly Confidential 26 <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 26
Slide 27: Earnings Summary
Earnings Summary FY19 (RM ’mil) FY20 Y-o-Y 4Q20 3Q20 Q-o-Q BAU^ Net interest income 12,725 12,659 0.5% 3,351 3,228 3.8% Non interest income 4,464 5,137 (13.1%) 1,365 1,237 10.3% Operating income 17,189 17,796 (3.4%) 4,716 4,465 5.6% Overhead expenses (8,977) (9,501) (5.5%) (2,329) (2,205) 5.6% PPOP
Slide 28: NOII breakdown
NOII breakdown (RM ’mil) FY20 FY19 Y-o-Y 4Q20 3Q20 Q-o-Q Fee & commission 1,992 2,467 (19.3%) 558 488 14.3% Brokerage 3 65 (95.4%) 1 (6) 116.7% Asset management and security services 24 24 0.0% 7 7 0.0% Trading & FX 2,087 1,978 5.5% 639 662 (3.5%) Dividend income 70 68 2.9% 18 25 (28.0%) Other incom
Slide 29: Key Ratios
Key Ratios FY19 (%) FY20 Y-o-Y 4Q20 3Q20 Q-o-Q BAU^ ROE ~ 2.1 9.3 1.5 1.4 NIM ~** 2.32 2.46 2.37 2.31 Non-interest income / total income 26.0 28.9 31.7 27.7 Cost to income 52.2 53.4 49.4 49.4 Allowance coverage (including regulatory reserve) 93.4 99.6 93.4 93.9 Allowance coverage (excluding regulato
Slide 30: PBT by Segments
PBT by Segments FY19 PBT (RM ’mil) FY20 Y-o-Y 4Q20 3Q20 Q-o-Q BAU^* Consumer Banking (41.2%) 631 1,882 (66.5%) (111) 297 (137.4%) Commercial Banking (-2.2%) (34) 1,621 (102.1%) 58 (127) 145.7% Wholesale Banking (23.0%) 352 1,935 (81.8%) 206 102 102.0% Corporate Banking (-22.8%) (349) 1,277 (127.3%)
Slide 31: PBT by Segment and Country
PBT by Segment and Country Consumer Banking FY20 FY19 Y-o-Y 4Q20 3Q20 Q-o-Q Malaysia (RM ’mil) 382 1,123 (66.0%) (42) 143 (129.4%) Indonesia (IDR ’bil) 436 1,127 (61.3%) (174) 374 (146.5%) Thailand (THB ’mil) 938 2,285 (58.9%) (186) 395 (147.1%) Singapore (SGD ’mil) (13) 26 (150.0%) 1 (6) 116.7% Oth
Slide 32: 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 4.3% 1.6% Consumer Gross Loans 1.8% 0.7% Mortgages 8.8% 2.1% Mortgages 5.9% 1.1% Term loans (4.1%) 1.2% Auto 4.4% 0.7% Auto 7.6% 2.4% Credit cards (8.3%) 0.8% Credit cards (15.3%) 0.0% Consumer Deposits 1
Slide 33: CIMB Niaga: Earnings Summary
CIMB Niaga : Earnings Summary FY19 (IDR 'bil) FY20 Y-o-Y 4Q20 3Q20 Q-o-Q BAU* Net interest income 12,470 12,568 (0.8%) 3,213 3,056 5.1% Non interest income 3,888 4,257 (8.7%) 865 921 (6.1%) Operating income 16,358 16,825 (2.8%) 4,078 3,977 2.5% Overhead expenses (8,007) (8,255) (3.0%) (2,005) (2,020
Slide 34: CIMB Niaga: Key Ratios
CIMB Niaga : Key Ratios FY19 (Consolidated, %) FY20 Y-o-Y 4Q20 3Q20 Q-o-Q BAU* ROE ^ 5.0 9.4 1.3 1.2 NIM ^ 4.88 5.31 4.72 4.71 Cost to Income 48.9 49.1 49.1 50.8 Loan Loss Coverage # 194.3 113.6 194.3 163.4 Allowance Coverage 114.6 82 114.6 125.6 Loan Loss Charge ^ 2.8 1.8 3.8 3.2 Gross Impaired Loa
Slide 35: CIMB Thai: Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments FY20 FY19 Y-o-Y 4Q20 3Q20 Q-o-Q (THB 'mil) Net interest income 10,939 11,592 (5.6%) 2,589 2,596 (0.2%) Non interest income 3,988 3,167 25.9% 834 980 (15.0%) Operating income 14,927 14,760 1.1% 3,423 3,576 (4.3%) Overhead expenses (8,899) (9,378) (
Slide 36: CIMB Thai: Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) FY20 FY19 Y-o-Y 4Q20 3Q20 Q-o-Q ROE ^ 3.1 5.0 (1.7) 0.8 NIM ^ 3.2 3.5 3.1 3.1 Cost to Income 59.6 63.5 57.9 61.6 Loan Loss Coverage ** 93.3 94.1 93.3 86.6 Loan Loss Charge ^ 2.0 1.2 2.8 2.1 Gross NPL ratio ** 4.6 4.6 4.6 5.9 ROA 0.3 0.5 (0.2) 0.1 Loan to Depo
Slide 37: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) FY20 FY19 FY20 FY19 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 29.6% 1 24.4% 2 DCM 7.6% 6 11.4% 4 Sukuk 24.4% 2 22.0% 2 M&A - - 0.4% 20 M&A - - 14.5% 1 Syndication ^ 2.0% 15 7.6% 4 Syndication ^ 2.0% 15 10.0% 2 IPO 0.9% 20 - -
Slide 38: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) FY20 FY19 FY20 FY19 Market Market ASEAN Market Market Rank Rank Rank Rank Share Share Share Share M&A - - - - DCM 13.9% 1 10.7% 1 Syndication ^ - - - - M&A - - 1.6% 19 IPO 0.1% 62 - 88 Syndication ^ 0.9% 27 3.7% 10 ECM - 80 - 110 IPO 2.8% 11 1.7% 17 ECM 3.1% 11 13.0%
Slide 39: Corporate Responsibility
Corporate Responsibility CSR Spend as at December 2020 Health & Well - Being Community Health & Well - Being 4% Development 1% 7% Community Development CIMB Non-CIMB 36% Foundation Education Foundation* RM 12.3 mil 60% RM 14.3 mil Education 92% Community Link: for NGOs (Pilot) Let’s Save and Share (