Slide 1: BCHB Group First Half 2008 Results
BCHB GROUP FIRST HALF 2008 RESULTS Investor Presentation 14TH August 2008 1
Slide 2: Agenda
Agenda BCHB Group 1H08 Financials Malaysian Consumer Bank Investment Banking & Treasury Indonesian Banking Asset Management & Insurance Capital Management & Other Developments Outlook & Summary 2
Slide 3: BCHB Group 1H08 Financials
BCHB GROUP : FIRST HALF 2008 RESULTS BCHB GROUP 1H08 FINANCIALS 3
Slide 4: 1H08 Key Highlights
1H08 Key Highlights • 2Q08 net profit up 21.4% on quarter to RM650 million • 1H08 net profit of RM1.185 billion is 7% lower than 1H07 (when capital markets were buoyant) • Strong consumer bank contribution driven by higher revenue and significantly lower credit charges • Marked improvements in loan
Slide 5: 2Q08 & 1H08 Earnings Summary
2Q08 & 1H08 Earnings Summary 2Q08 vs. 1H08 vs. (RM mil) 1Q08 2Q08 1H07 1H08 1Q08 1H07 Net interest income 1,114 1,083 (2.8%) 2,167 2,197 1.4% Non interest income 905 1,075 18.7% 2,401 1,980 (17.5%) Operating income 2,019 2,158 6.8% 4,568 4,177 (8.6%) Loan provisions (189) (175) (7.2%) (653) (364) (4
Slide 6: 2Q08 Financial Performance – Best Since 2Q07
2Q08 Financial Performance – Best Since 2Q07 RM ‘million 2,470 2,188 2,158 2,013 1,980 2,019 20.2% 1,872 19.1% 1,663 16.5% 15.4% 15.8% 1,296 12.4% 916 13.6% 947 13.0% 826 12.2% 739 749 615 660 615 650 592 494 486 535 463 447 442 408 324 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07* 4Q07 1Q08 2Q 08 Operating Operat
Slide 7: Contribution by Entity – Lower Overseas Contribution
Contribution by Entity – Lower Overseas Contribution CIMB BCHB & (RM mil) Bank Niaga BCHB Group Universal Bank Others Revenue 3,618 574 (15) 4,177 Profit/ (loss) before tax 1,505 203 (12) 1,696 Net profit/ (loss) 1,088 93 4 1,185 1H08 Malaysia vs. Overseas PBT contribution 1H08 % CIMB Universal Bank
Slide 8: Revenue by Segment
Revenue by Segment (RM mil) 1Q08 2Q08 Q-o-Q 1H07 1H08 Y-o-Y Consumer Banking 820 875 6.6% 1,569 1,695 8.0% Corporate & Investment Banking 477 476 (0.1%) 1,112 953 (14.3%) Treasury & Investments 402 449 11.8% 1,077 851 (21.0%) GAM & Insurance 53 69 30.2% 238 122 (49.0%) Niaga 285 289 1.5% 621 574 (7.
Slide 9: Balance Sheet Changes
Balance Sheet Changes 30th June 31st Mar 30th June (RM mil) Y-o-Y Q-o-Q 07 08 08 Cash & short term funds 25,559 27,856 31,700 24% 14% Securities purchased under resale agreements 2,712 4,476 2,674 (1%) (40%) Deposits & placements with financial institutions 5,678 10,988 6,056 7% (45%) Securities hel
Slide 10: Loans Grew 16% Over the Year
Loans Grew 16% Over the Year Gross Gross Gross Y-o-Y loans as at loans as at loans as at growth Products/ Y-o-Y loans 30 June 07 31 Mar 08 30 June 08 growth (excl. Divisions write (RM bil) (RM bil) (RM bil) offs) Consumer Banking 53.1 56.5 58.8 10.6% 11.9% RM0.8 bil Mortgages 17.0 20.3 21.5 27.1% 27
Slide 11: Deposits Grew 21% Over the Year
Deposits Grew 21% Over the Year Divisions / 30th June 07 31st Mar 08 30th June 08 Y-o-Y Products (RM bil) (RM bil) (RM bil) growth 21% Retail 27.5 32.4 33.5 21.9% - Current 3.6 4.0 4.2 17.8% - Savings 7.3 8.5 8.6 17.8% RM136.8 bil - Fixed & structured 16.6 19.9 20.7 24.5% deposits RM113.2 bil Busine
Slide 12: Sustained Momentum of Loan Quality Ratios
Sustained Momentum of Loan Quality Ratios 74.2% 75.0% 15.0% 71.9% 70.0% 69.3% 65.1% 13.0% 65.0% 61.0% 60.0% 57.5% 59.0% 55.2% 54.9% 55.8% 11.0% 54.2% 55.0% 51.5% 48.8% 9.6% 50.0% 9.9% 9.2% 8.8% 9.0% 45.0% 8.8% 8.8% 9.0% 8.7% 8.6% 7.2% 7.1% 40.0% 7.9% 6.5% 7.0% 6.3% 6.3% 6.1% 35.0% 6.1% 5.9% 5.7% 5.6
Slide 13: BCHB: Operating Expenses
BCHB: Operating Expenses (RM ‘mil) 1Q08 2Q08 Q-o-Q 1H07 1H08 Y-o-Y Personnel 527 499 (5.3%) 1,109 1,026 (7.5%) Establishment 203 222 9.9% 418 425 1.8% Marketing 57 69 20.7% 96 126 30.3% Admin & general 277 245 (11.7%) 528 522 (1.2%) Total costs 1,064 1,035 (2.7%) 2,151 2,099 (2.5%) 13
Slide 14: Key Ratios
Key Ratios (%) 1Q08 2Q08 1H07 1H08 ROAE 13.6 16.5 18.6 15.1 NIM dropped over the quarter due to highe Net interest margin* (excl. IIS) 2.3 2.2 2.5 2.2 corporate loans. Niaga NIM at 5.3% (1Q08:5.21%); NIM for CIMB Bank Group a Fee income/ total income 15.0 20.1 15.9 17.7 2.09% (1Q08: 2.2%) Non-intere
Slide 15: Malaysian Consumer Bank
BCHB GROUP : 1H08 RESULTS MALAYSIAN CONSUMER BANK 15
Slide 16: Consumer Bank Improves 85% Over the Quarter
Consumer Bank Improves 85% Over the Quarter 2Q08 vs. 1H08 vs. (RM mil) 1Q08 2Q08 1H07 1H08 1Q08 1H07 Net interest income 657 691 5.0% 1,249 1,348 7.9% Non interest income 163 184 12.8% 320 347 8.4% Total income 820 875 6.6% 1,569 1,695 8.0% Overheads & allocated cost (525) (489) (6.9%) (909) (1,016)
Slide 17: Consumer Market Shares Improve in Preferred Areas
Consumer Market Shares Improve in Preferred Areas Market shares 31st Dec 2007 31st Mac 2008 30th June 2008 Ranking Mortgages 9.5% 10.8% 11.1% 3 HP 13.3% 11.1% 10.8% 4 Credit cards - by loan base 9.6% 10.3% 10.7% 3 - card base 8.8% 9.4% 9.7% Retail deposits * 8.3% 8.8% 8.9% 4 SME loan 12.7% 12.5% 12.
Slide 18: Retail Loan Sales Remain Strong
Retail Loan Sales Remain Strong Retail Loans – Housing Loans and Business Premises Loans RM'mil 900 SP Day 1 800 Avg Housing Loan RM208,000 size: RM169,000 700 600 500 400 300 200 100 0 7 7 7 7 8 8 8 -0 7 -0 7 ar -0 r -0 -0 -0 7 l- 0 - 07 - 07 t- 07 -07 - 07 -0 8 -0 8 ar -0 r -0 -0 -0 8 Ja n b Ap ay
Slide 19: Credit Cards Much Stronger, Card Base Above 1.0 Million Mark
Credit Cards Much Stronger, Card Base Above 1.0 Million Mark Cardbase ('000) Card Spending (RM 'million) 1200 YOY 40% 2500 1000 800 2000 600 1500 400 1000 200 500 599 874 948 1,013 1,617 1,798 1,865 2,069 0 0 FY06* FY07 1Q08 2Q08 3Q07 4Q07 1Q08 2Q08 NPL Ratio Average Branch Credit Card 3.0% Cards Ap
Slide 20: HP Business Picked Up in 2Q08
HP Business Picked Up in 2Q08 Auto Finance Loan Disbursed As At 2Q08 (RM million) HP key themes 300.0 250.3 253.0 • Disbursement increased in 2Q08 by 39% 245.1 250.0 229.8 (RM552m in 1Q08 to RM768m in Q208) 196.2 200.0 174.7 173.3 173.5 • Repossessed vehicles stock… down to 2,825 171.7 160.0 146.2 u
Slide 21: Other Consumer Bank Indicators (i)
Other Consumer Bank Indicators (i) Business Banking Division - Total Loans Approved (RM mil) (New & Enhancement) CIMB Express - Total Disbursed (RM mil) 131.7 2,033 116.6 1,610 1,570 94.2 92.4 82.8 1,314 1,187 2Q07 3Q07 4Q07 1Q08 2Q08 2Q07 3Q07 4Q07 1Q08 2Q08 Wealth Management 1Q07 2Q07 3Q07 4Q07 1Q
Slide 22: Other Consumer Bank Indicators (ii)
Other Consumer Bank Indicators (ii) Average Product Holding Upper Mass Islamic FD Market Share across Retail Mass Affluent 12 11.1 Jan 08 3.86 2.62 10 8 Feb 08 3.93 2.63 6 5.6 Mar 08 3.97 2.65 4 2.5 2.6 Apr 08 4.00 2.67 1.3 2 May 08 4.06 2.70 0 2Q07 3Q07 4Q07 1Q08 2Q08 Jun 08 4.13 2.72 CIMB Clicks -
Slide 23: Investment Banking & Treasury
BCHB GROUP : 1H08 RESULTS Investment Banking & Treasury 23
Slide 24: Excellent Malaysian Market Shares
Excellent Malaysian Market Shares M&A ADVISORY (BY VALUE) PRIMARY RM BOND MARKET (BY VALUE) RM26.2 bil RM9.2 bil CIMB 35% CIMB 21% RM13.0 bil RM8.0 bil ASEAM 17% ASEAM 18% RM7.4 bil RM6.6 bil PUBLIC 10% RHB 15% RM3.9 bil RM9.0 bil GOLDMAN SACHS 5% PUBLIC 11% RM24.5 bil RM4.7 bil OTHERS 33% AMINVEST
Slide 25: Maintained Regional Competitiveness
Maintained Regional Competitiveness Thailand • Brokerage market share of 0.38% Hong Kong • No. 5 Advisor Ranking for Announced Deals (by no. of deals (12 deals, 1.9% market share) Singapore • No. 6 Advisor Ranking for • No. 1 Advisor Ranking for Announced Deals (by. value of Announced Deals (by no.
Slide 26: A Leader in Islamic Investment Banking
A Leader in Islamic Investment Banking 2Q08 Domestic Islamic League Table 2Q08 Global Islamic League Table Rank Company Market Share Rank Company Market Share 1 CIMB 53.2% 1 Calyon 10.1% 2 Aseambankers 13.4% 2 CIMB 9.0% 3 AmInvestment Bank 11.0% 3 HSBC 8.6% 4 OSK 4.2% 4 AmInvestment Bank 8.4% 5 Citi
Slide 27: Key IBK Deals & Awards
Key IBK Deals & Awards • 25% acquisition in RHB Capital by Abu Dhabi Commercial Bank (RM 3.88 billion) • TM de-merger of fixed line and mobile telephony (RM 28 billion) • Magnum Privatisation (RM 4.93 billion) • Digi purchase of 3G spectrum from TIME dotCom (RM 654 million) 1 1 1 1 Deal Maker of the
Slide 28: Indonesian Banking
BCHB GROUP : 1H08 RESULTS INDONESIAN BANKING 28
Slide 29: CIMB Niaga
CIMB Niaga (previously announced on July 28 2008) 1H08 vs. (IDR billion) 1Q08 2Q08 1H07 1H08 1H07 Net Interest Income 657 742 1,280 1,399 9.3% Non Interest Income 104 88 319 192 (39.8%) Operating Income 761 830 1,599 1,591 (0.5%) Overhead Expenses (448) (498) (788) (946) 20.1% Pre Provision Operatin
Slide 30: Asset Management & Insurance
BCHB GROUP : 1H08 RESULTS ASSET MANAGEMENT & INSURANCE 30
Slide 31: Group's Assets Under Management & Insurance
Group’s Assets Under Management & Insurance AUM (RM mil) 1H07 1H08 PBT 25,000 RM ‘000 RM ‘000 20,000 2,136 2,170 CPAM Group 23,687 30,247 2,114 2,015 2,174 2,129 Wholesale Funds 22,882 6,513 15,000 Total 46,569 36,760 10,000 19,176 18,981 17,371 17,792 14,966 16,319 • For CPAM higher unit trust sale
Slide 32: Capital Management & Other Developments
BCHB GROUP : 1H08 RESULTS CAPITAL MANAGEMENT & OTHER DEVELOPMENTS 32
Slide 33: NPL Sale - Tranche 1
NPL Sale - Tranche 1 RFP for RM1.5 billion (211 accounts) NPL sale issued 7 investors comprising international and local names to conduct due diligence on portfolio Bid date on 28th July, only 3 investors submitted bids Post negotiations to exclude selected accounts, accepted bids for 202 accounts i
Slide 34: Niaga Lippo Update
Niaga Lippo Update • As at the closing date of the standby offer on July 28, the level of acceptances were as follows: % Acceptance Potential outlay Niaga minorities 94.18% IDR4.9 trillion / RM1.72 billion Lippo minorities 73.79% IDR0.55 trillion / RM0.191 billion Total 93.2% IDR5.45 trillion / RM1.
Slide 35: Other Corporate Transactions Updates
Other Corporate Transactions Updates A. SIBB / SBB • Obtained approval from BNM and SC in early July • Signed SBA for SIBB on 13 June 2008 • Approved at HLG’s EGM on 9 July 2008, preparing court documents for vesting in 3rd – 4th Q ‘08 B. Bank of Yingkou • Bank of Yingkou submitted application to Yi
Slide 36: CIMB – SBB Synergies Update
CIMB – SBB Synergies Update YTD Actual (1H08) vs FY08 Target Synergy PBT Achievement (RM'mil) 90.0 78.0 80.0 70.0 62.4 61.2 57.8 60.0 55.3 PBT (RM'mil) 50.0 40.0 36.4 30.0 17.5 20.0 10.0 0.0 0.0 Revenue synergy - cross-sell Revenue synergy - cross-sell Cost synergy Revenue synergy realised from to B
Slide 37: Gearing and Double Leverage at Target Levels
Gearing and Double Leverage at Target Levels BCHB Holding Company Further Capital management 1Q08 2Q08 Timeline (RM ‘mil) initiatives NPL disposals 3Q08 Investment in subsidiaries 11,429 11,429 Sale and leaseback of Menara 4Q08 External debt & borrowings 3,305 3,255 Commerce Sale & leaseback of bran
Slide 38: Outlook & Summary
BCHB GROUP : 1H08 RESULTS OUTLOOK & SUMMARY 38
Slide 39: Key Deliverables for 2008
Key Deliverables for 2008 2008 1H08 ROE >18% X TSR >KLCI X Total loans growth* 12% Retail deposit*² 25% X Loan loss charge 0.7% Tier 1 (at bank) 8% RWCR (at bank) 12.5% Double leverage ≈ 115% Target achieved ( ) / not achieved ( X ) * calculated on annualized basis ² current account growth annualize
Slide 40: Closing Remarks
Closing Remarks • Strong 2Q with consumer banking transformation visible in financial results. Investment banking, treasury and Niaga showed commendable results • 2H08 will be more challenging than originally forecast:- – Weaker economic environment across the region – Malaysian consumers and busine
Slide 41: Thank You
THANK YOU BUMIPUTRA COMMERCE