Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — H1 2021 Earnings Presentation
42 slides from Cimb Group Holdings Bhd's earnings presentation, Aug 30, 2021
Slide 1: Analyst Presentation 1H21 Results
Analyst Presentation 1H21 Results CIMB Group Holdings 30 Aug 2021 FORWARD Your Ambitions 1
Slide 2: 01 Overview
01 Overview 2
Slide 3: Key Highlights: 1H21 ROE at 9.1%
Key Highlights: 1H21 ROE at 9.1% NIM 1H21 topline growth sustained Loan growth remains Strong cost controls driving further despite NOII slowdown in 2Q21 muted but NIM improves CIR improvement to 47.5% Lower ECL, however still Strong underlying ROE elevated of 9.1% YTD Strong YoY operating income gr
Slide 4: Key Business/Operational Highlights
Key Business/Operational Highlights Operating Income strong driven by NIM improvements 2Q21 NOII weaker from wealth management and trading Total Operating Income (RM 'mil) income slow down after strong 1Q21 2.53 NOII (RM 'mil) 2.29 NIM ~ +33.5% YoY -20.6% QoQ +72.9% YoY -20.7% QoQ +18.3% YoY 9,471 1
Slide 5: PBT By Segment
PBT By Segment CIMB Digital Assets Strong Consumer YoY growth due to lower provisions. & Group Funding Lower PBT QoQ due to weaker NOII from strong wealth 15% Consumer management performance in 1Q21 Banking Commercial PBT YoY improvement due to the absence of 1H21 32% large provision in 1Q20. QoQ im
Slide 6: PBT By Country
PBT By Country Others Malaysia PBT +104.9% YoY from the strong NOII income Singapore and lower ECL. Lower QoQ due to higher overlays in -1% 9% Consumer Thailand Malaysia 4% Indonesia improved on higher NIM. Provisions were 1H21 65% lower QoQ from lower Consumer provisions Indonesia Group PBT RM3,623
Slide 7: Operating Income
Operating Income 1H21 Strong YoY operating income growth (RM 'mil) 2Q21 Q-o-Q Y-o-Y driven by both NII and NOII. However, BAU^ QoQ was weaker due to exceptionally Net interest income 3,587 3.4% 7,055 14.8% high NOII in 1Q21 NII +14.8% YoY largely driven by Non interest income^ 1,083 (18.8%) 2,416 29
Slide 8: Operating Expenses
Operating Expenses 2Q21 1H21 Opex +1.2% YoY on higher (RM 'mil) Q-o-Q Y-o-Y BAU^ BAU^ Technology cost from planned investments Personnel 1,313 (4.4%) 2,687 1.7% QoQ Opex declined -3.8% from Establishment 213 (2.9%) 432 (8.0%) lower Personnel, Establishment Technology 320 0.5% 638 20.3% and Admin & G
Slide 9: Total Provisions
Total Provisions 2Q21 1H21 (RM 'mil) 1Q21 Q-o-Q 1H20 Y-o-Y BAU^ BAU^ Loan Impairment 652 716 (8.9%) 1,368 2,437 (43.9%) Commitment & Contingencies (25) 23 (209.3%) (2) 51 (104.1%) Debt instruments/ securities 49 (17) 390.9% 32 109 (70.6%) Others (23) 34 (167.0%) 11 104 (89.1%) Total 653 756 (13.6%)
Slide 10: Loan Provisions/ECL
Loan Provisions/ECL -8.9% Q-o-Q -43.9% Y-o-Y -43.9% YoY mainly due to absence of large impairments and recovery RM 'mil of legacy accounts 2,437 MEF & Overlay 379 Allowance coverage stood at Covid-19 related 716 102.2% with GIL of 3.4% 20 652 313 Credit related/ 183 79 1,368 2Q21 LLC came in at 0.71
Slide 11: Asset Quality & Moratorium
Asset Quality & Moratorium Gross Loans Bonds Continuation of Group-wide R&R Covid-19 Impacted Sectors Sectors 30 Jun-21 30 Jun-21 approach across all segments and countries Hospitality 1.3% 0.0% Malaysia Consumer Moratorium and R&R Retail 2.2% 0.1% fell to 6% in May-21 and increased to 10% Aviation
Slide 12: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 30 Jun-21 Q-o-Q Y-o-Y Consumer Banking 191.1 0.6% 3.2% 88.3% 89.0% 88.9% 87.8% Commercial Banking 61.0 (0.5%) (5.8%) 87.7% Wholesale Banking 117.1 1.5% (2.3%) Total 369.2 0.7% (0.2%) Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 ~ Loan Growth by Country (Y-o-Y) Othe
Slide 13: Deposits
Deposits CASA Ratio (RM 'bil) 30 Jun-21 Q-o-Q Y-o-Y 42.3% Consumer Banking 172.2 (1.0%) (7.2%) 41.3% 41.6% Commercial Banking 73.9 2.5% 6.9% 40.0% 38.4% Wholesale Banking 174.2 4.9% 6.1% Total Deposits 420.3 2.0% 0.3% Total CASA 175.0 0.3% 8.7% Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 WY Deposit Growth by
Slide 14: Capital and Liquidity Management
Capital and Liquidity Management 17.6% 17.4% CET1 rose to 13.4% as at Jun-21 17.1% Tier 2 from FVOCI gain Tier 1 3.0% 2.9% 3.0% 1.3% 1.3% 1.0% CET1 ratio remains comfortably CET1 above the target of >12.5% 13.3% 12.9% 13.4% Proposed first interim dividend of 10.44 sen/share. 40.0% payout based on co
Slide 15: Consumer Banking
Consumer Banking 1H21 Personal (RM 'mil) 2Q21 Q-o-Q Y-o-Y Financing Others BAU Credit Cards 3% 2% Net interest income 1,564 1.6% 3,103 15.5% 4% Auto Non interest income 450 (20.6%) 1,017 33.5% 12% Gross Loans Operating income 2,014 (4.4%) 4,120 19.5% RM191.1 bil Overhead expenses (1,092) (3.4%) (2,2
Slide 16: Commercial Banking
Commercial Banking Others (RM 'mil) 2Q21 Q-o-Q 1H21 Y-o-Y Singapore 4% 6% Net interest income 725 2.1% 1,435 5.1% Thailand Non interest income 145 (1.4%) 292 7.0% 4% Gross Loans Operating income 870 1.5% 1,727 5.4% RM61.0 bil Overhead expenses (432) (3.4%) (879) (1.3%) Indonesia 5.8% Malaysia 26% 60
Slide 17: Wholesale Banking
Wholesale Banking Others (RM 'mil) 2Q21 Q-o-Q 1H21 Y-o-Y 0% Singapore 19% Net interest income 940 4.7% 1,838 9.6% Non interest income 390 (20.7%) 882 72.9% Thailand Gross Loans Operating income 1,330 (4.3%) 2,720 24.4% 8% RM117.1bil Overhead expenses (500) (0.4%) (1,002) 0.1% 2.3% Malaysia 55% PPOP
Slide 18: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding 2Q21 1H21 Touch ‘n Go Digital (RM ‘mil) Q-o-Q Y-o-Y Total Registered Users Annual Active Users BAU^ BAU^ (mil) (mil) Net interest income 359 11.8% 680 63.1% +47.7% Y-o-Y +50.0% Y-o-Y Non interest income 97 (23.6%) 224 (29.3%) 16.1 Operating income 456 1.8% 904 23.
Slide 19: CIMB Islamic
CIMB Islamic Islamic Financing (RM ‘mil) 2Q21 Q-o-Q 1H21 Y-o-Y (RM 'bil) Net financing income 757 4.0% 1,485 49.7% -1.0% Q-o-Q +3.9% Y-o-Y 99.5 Non financing income 103 (23.1%) 237 4.9% 98.5 Operating income 860 (0.2%) 1,722 41.4% 94.8 Overhead expenses (321) 9.6% (614) 16.7% PPOP 539 (5.3%) 1,108 6
Slide 20: 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> 20 20
Slide 21: Vision: To be the leading focused ASEAN bank
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 Financial Accelerate Reset cost base Strengthen wholesale Returns profitable growth Tighte
Slide 22: Asset Composition and Growth
Asset Composition and Growth Larger asset allocation in Group Funding as we increase our bonds and rebuild our loan book CDA and Group Year Consumer Commercial Wholesale Funding Dec-19 33% 11% 43% 12% Jun-21 32% 10% 43% 15% Loan Growth Initiatives / Comments Jun-21 Mar-21 YoY YoY Invest Consumer MIS
Slide 23: Structured Cost Take-out
Structured Cost Take-out Evolution Analysis RM 'mil 2 (300) to (500) * Total Cost Decrease in cost 1 Increase in cost (525) New in 2Q21: Details TBD (30) (45) (200) (60) 9,502 8,977 FY2019A 1 Cost 2 FY2020A 3 TH 4 SG 5 TNGD 6 Savings 7 from To8be 9 BAU 10 FY2022 11 (BAU) Savings Optimisation Optimis
Slide 24: Digital Reliability and Customer Centricity
Digital Reliability and Customer Centricity Metrics tracking well with digital transactions increasing Clicks & Bizchannel Customer Centricity Digital % Availability 1H20 1H21 YoY Country 2021 2020 1H21 Digital Target Transactions 195 292 50% CIMB Clicks (‘mil)~ Clicks 98.26% 99.20% 98.75% Channel C
Slide 25: Performance Management & Purpose Driven Organisation
Performance Management & Purpose Driven Organisation Values & Culture Human Capital Sustainability Completed new KPI and bonus Project Canvas - flatter, faster and Consistent improvement in DJSI1 framework less bureaucratic organisation by ranking, (51st to 65th percentile in designing an organisati
Slide 26: 03 Final Remarks
03 Final Remarks <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 26 26
Slide 27: Final Remarks
Final Remarks Strong 1H21 performance driven by robust NII 1H21 FY21 FY21 growth and improved provisions 1H20 BAU^ Target Guidance The prolonged lockdown will likely result in headwinds to operating income growth coupled ROTCE* 3.4% 11.1% 8-9% 9-10% with the impact of the modification loss and eleva
Slide 28: 04 Appendices
04 Appendices <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only>
Slide 29: Exceptional Items
Exceptional Items (RM 'mil) 2Q21 1Q21 1H21 PBT BAU 1,835 1,788 3,623 Gain on deconsolidation Touch ‘n Go Digital - 1,156 1,156 Transformational / Restructuring cost (17) (46) (63) Intangible assets write off and accelerated amortisation (241)* - (241) Total Exceptional Items (258) 1,110 852 PBT (Rep
Slide 30: Earnings Summary
Earnings Summary 2Q21 1Q21 1H21 (RM ’mil) Q-o-Q 1H20 Y-o-Y BAU^ BAU^ BAU^ Net interest income 3,587 3,468 3.4% 7,055 6,146 14.8% Non interest income 1,083 1,333 (18.8%) 2,416 1,862 29.8% Operating income 4,670 4,801 (2.7%) 9,471 8,008 18.3% Overhead expenses (2,205) (2,292) (3.8%) (4,497) (4,443) 1.
Slide 31: NOII breakdown
NOII breakdown 1Q21 1H21 (RM ’mil) 2Q21 Q-o-Q 1H20 Y-o-Y BAU^ BAU^ Fee & commission 542 650 (16.5%) 1,192 946 26.1% Brokerage 0 1 (100.0%) 1 8 (87.5%) Asset management and security services 8 9 (11.1%) 17 10 70.0% Trading & FX 464 622 (25.5%) 1,086 786 38.1% Dividend income 20 15 33.3% 35 27 29.6% O
Slide 32: Key Ratios
Key Ratios 2Q21 1Q21 1H21 (%) Q-o-Q 1H20 Y-o-Y BAU^ BAU^ BAU^ ROE ~ 8.8 9.5 ▼ 9.1 2.8 ▲ NIM ~* 2.56 2.52 ▲ 2.53 2.29 ▲ Non-interest income / total income 23.2 27.8 ▼ 25.5 23.3 ▲ Cost to income 47.2 47.8 ▼ 47.5 55.5 ▼ Allowance coverage (including regulatory reserve) 102.4 102.9 ▼ 102.4 81.9 ▲ Allowa
Slide 33: PBT by Segments
PBT by Segments 2Q21 1Q21 1H21 PBT (RM ’mil) Q-o-Q 1H20 Y-o-Y BAU^ BAU^ BAU^ Consumer Banking (32.3%) 555 615 (9.8%) 1,170 410 185.4% Commercial Banking (16.5%) 306 293 4.4% 599 (34) >1000% Wholesale Banking (35.9%) 676 623 8.5% 1,299 146 789.7% Corporate Banking (12.5%) 249 202 23.3% 451 (95) 574.7
Slide 34: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 2Q21 1Q21 Q-o-Q 1H21 1H20 Y-o-Y Malaysia (RM ’mil) 396 557 (28.9%) 953 272 250.4% Indonesia (IDR ’bil) 335 (63) 631.7% 272 164 65.9% Thailand (THB ’mil) 262 328 (20.1%) 590 721 (18.2%) Singapore (SGD ’mil) 11 6 83.3% 17 (10) 270.0% Others * (RM ’mil) (5) 1
Slide 35: 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 5.2% 0.4% Consumer Gross Loans 1.6% 0.7% Mortgages 8.4% 1.4% Mortgages 5.2% 1.8% Term loans 0.0% (0.3%) Auto 5.4% 1.4% Auto 9.0% (0.6%) Credit cards (7.3%) (2.7%) Credit cards (12.0%) (6.4%) Consumer Depo
Slide 36: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Loan Exposure: Borrowers Status: 2.5% of total Group Impaired gross loans Thailand 33% 7% Normal Singapore 53% 16% 30 Jun-21 Malaysia Indonesia Watch List (M & H) RM9.1bil 76% 1% 14% Segmental Exposure: Upstream Oil Traders 5% 10% As at Jun-21, the O&G impairment ratio stood
Slide 37: CIMB Niaga: Earnings Summary
CIMB Niaga : Earnings Summary 2Q21 1H21 (IDR 'bil) 1Q21 Q-o-Q 1H20 Y-o-Y BAU* BAU* Net interest income 3,269 3,269 0.0% 6,538 6,203 5.4% Non interest income 1,189 1,300 -8.5% 2,489 2,102 18.4% Operating income 4,458 4,569 -2.4% 9,027 8,305 8.7% Overhead expenses (2,018) (2,012) 0.3% (4,030) (3,984)
Slide 38: CIMB Niaga: Key Ratios
CIMB Niaga : Key Ratios 2Q21 1H21 (Consolidated, %) 1Q21 Q-o-Q Y-o-Y BAU* BAU* ROE ^ 12.3% 10.5% ▲ 11.4% ▲ NIM ^ 5.05% 5.12% ▼ 5.08% ▲ Cost to Income 45.3% 44.0% ▲ 44.6% ▼ Loan Loss Coverage # 223.5% 194.9% ▲ 223.5% ▲ Allowance Coverage 110.2% 115.2% ▼ 110.2% ▼ Loan Loss Charge ^ 2.4% 3.0% ▼ 2.7% ▲
Slide 39: CIMB Thai: Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 2Q21 1Q21 Q-o-Q 1H21 1H20 Y-o-Y (THB 'mil) Net interest income 2,618 2,464 6.2% 5,082 5,754 (11.7%) Non interest income 1,156 1,047 10.4% 2,202 2,174 1.3% Operating income 3,774 3,511 7.5% 7,284 7,928 (8.1%) Overhead expenses (2,052) (2,081) 1.4%
Slide 40: CIMB Thai: Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 2Q21 1Q21 Q-o-Q 1H21 Y-o-Y ROE ^ 5.9 3.3 ▲ 4.6 ▼ NIM ^ 3.2 3.1 ▲ 3.1 ▼ Cost to Income 54.4 59.3 ▼ 56.7 ▼ Loan Loss Coverage ** 101.3 98.9 ▲ 101.3 ▲ Loan Loss Charge ^ 1.7 1.9 ▼ 1.8 ▲ Gross NPL ratio ** 4.8 4.8 = 4.8 ▼ ROA 0.6 0.3 ▲ 0.5 ▼ Loan to Deposit 102.4
Slide 41: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 1H21 1H20 1H21 1H20 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 20.5% 2 33.7% 1 DCM 8.7% 4 8.5% 6 Sukuk 22.2% 2 26.0% 1 M&A - - - - M&A - - - - Syndication ^ 5.49% 3 - - Syndication ^ 19.1% 2 - - IPO 2.2% 10 - - IPO 11.2% 3 62.
Slide 42: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 1H21 1H20 1H21 1H20 Market Market ASEAN Market Market Rank Rank Rank Rank Share Share Share Share M&A - - - - DCM 11.1% 1 13.6% 1 Syndication ^ - - - - M&A - - - - IPO - - - - Syndication ^ 2.9% 10 0.2% 44 ECM - - - - IPO 3.1% 12 3.4% 9 ECM 2.7% 13 5.5% 5 1H21 1H20 1H