Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — 1Q20 Earnings Presentation
36 slides from Cimb Group Holdings Bhd's earnings presentation, May 22, 2020
Slide 1: Analyst Presentation 1Q20 Results
Analyst Presentation 1Q20 Results CIMB Group Holdings 22 May 2020 FORWARD Together 1
Slide 2: 01 Overview
[#]01 Overview 2
Slide 3: Key Highlights
Key Highlights Higher Provisions from Trading Income Weak Overheads Under Singapore in March Control Q3 Q2 Q4 Mitigating Actions on Costs Up-Coming Quarters Remain Will Be Key Challenging 1Q20 ROE stood at 3.7%, with net profit falling 57.4% due Consumer and Commercial Banking performed commendably
Slide 4: Key Business/Operational Highlights
Key Business/Operational Highlights 1Q20 Provisions Higher from Singapore Weaker NOII from Trading & FX Total NOII (RM 'mil) 1.06% -15.5% Y-o-Y LLC ~ 0.34% 1,102 931 968 Trading & FX 442 337 Loan Provisions 300 Other NOII 660 594 (RM 'mil) 1Q19 1Q20 1Q19 1Q20 Improving CASA Ratio Costs Well Under Co
Slide 5: PBT By Segment
PBT By Segment Commercial Weaker Consumer PBT from higher Malaysia provisions Banking arising from the softer environment -12% Commercial impacted by one material provision in GVP & Singapore 1Q20 Funding Wholesale lower from weaker trading income in March Group PBT 28% Consumer 2020 and higher Indo
Slide 6: PBT By Country
PBT By Country Others Malaysia PBT lower from weaker trading income, -3% higher Consumer provisions and lower NII from two Singapore -46% OPR cuts Malaysia 76% Indonesia PBT declined YoY from higher Corporate & Commercial provisions. But lower QoQ provisions led Thailand to PBT improvement 29% Thail
Slide 7: Operating Income
Operating Income (RM 'mil) 1Q20 Y-o-Y Q-o-Q Operating income marginally lower YoY. NOII -15.5% from 23.8% YoY decline in trading & FX income, partially offset by Net interest income 3,212 4.8% (4.0%) better NII from 3.8% loan growth Non interest income 931 (15.5%) (20.9%) Operating environment mater
Slide 8: Operating Expenses
Operating Expenses Q-o-Q (RM ‘mil) 1Q20 Y-o-Y BAU Opex remains under control +0.7% BAU^ YoY (-0.1% excluding FX). Marketing costs were higher from TnG Personnel 1,351 - 1.4% Opex lower QoQ with absence of the Establishment 497 (1.2%) (4.4%) aggressive TnG marketing in 4Q19 Marketing 96 41.2% (37.3%)
Slide 9: Loan Provisions
Loan Provisions +222.7% Y-o-Y +59.7%% Q-o-Q Significantly higher YoY loan provisions due to a single O&G impairment in Singapore RM 'mil 968 1Q20 allowance coverage fell to 75.9% while GIL stood at 3.4% 606 Annualised 1Q20 LLC of 1.06% 300 1Q19 4Q19 1Q20 103.5% 96.6% 99.6% 94.8% Allowance Coverage ^
Slide 10: Asset Quality: Covid-19 Impacted Sectors
Asset Quality: Covid-19 Impacted Sectors Gross Loans Bonds Sectors 31 Mar-20 31 Dec-19 31 Mar-20 31 Dec-19 Hospitality 1.0% 1.0% 0.1% 0.0% Aviation 2.1% 1.6% 1.2% 1.2% Retail 1.5% 1.3% 0.1% 0.0% Gaming 0.5% 0.5% 2.4% 2.5% Total: Directly impacted sectors 5.1% 4.4% 3.8% 3.7% Others: Indirectly impact
Slide 11: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Exposure: Borrowers Status: 2.4% of total Group Impaired Normal gross loans TH 34% 65% 8% SG 17% Watchlist ID 31 Mar-20 1% 1% RM8.7bil MY 74% Segmental Exposure: Oil Traders Upstream 5% 2% As at Mar-20, the O&G impairment ratio stood at 34% (Dec- 19: 30%) The impairment cove
Slide 12: Moratorium and R&R
Moratorium and R&R Malaysia Indonesia Thailand Singapore Consumer 87% 4% 32% 6% Commercial 74% 14% 60% 4% Corporate 16% 5% 8% 4% Total 67% 7% 27% 4% 12 Note: Data as at 30 April 2020
Slide 13: Gross Loans
Gross Loans (RM 'bil) Mar-20 Y-o-Y Q-o-Q Loans-to-Deposit Ratio Consumer Banking 181.9 5.4% (1.6%) Commercial Banking 63.2 (4.8%) (3.5%) 92.0% 91.4% 91.5% 91.6% 91.2% Wholesale Banking 118.8 6.3% (0.3%) Total 363.9 3.8% (1.5%) Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Others Loan Growth by Country (Y-o-Y)
Slide 14: Deposits
Deposits (RM 'bil) Mar-20 Y-o-Y Q-o-Q CASA Ratio Consumer Banking 179.4 5.6% 0.2% 36.5% Commercial Banking 65.2 2.2% (0.8%) 34.4% 34.3% 34.4% 32.9% Wholesale Banking 154.3 2.8% (1.7%) Total 398.9 3.9% (0.7%) Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 WY Others Singapore 2% Deposit Growth by Country (Y-o-Y)
Slide 15: Capital and Liquidity Management
Capital and Liquidity Management Total Capital 16.2% 16.8% 16.1% CET1 stood at 12.5% as at end 1Q20 2.6% 2.8% 2.5% Tier 2 0.8% 1.1% 1.1% CET1 ratio remains comfortably above the target of >12% (target as before BNM Tier 1 Capital Conservation Buffer relief of 2.5%) CET1 12.8% 12.9% 12.5% LCR remain
Slide 16: Consumer Banking
Consumer Banking (RM 'mil) 1Q20 Y-o-Y Q-o-Q Personal Financing 3% Others Net interest income 1,465 8.0% (1.3%) Credit Cards 2% 5% Non interest income 461 8.7% (8.2%) Auto Operating income 1,926 8.1% (3.1%) Gross Loans 13% RM181.9bil Overhead expenses (1,109) 1.2% (0.1%) 5.4% PPOP 817 19.3% (6.8%) Te
Slide 17: Commercial Banking
Commercial Banking (RM 'mil) 1Q20 Y-o-Y Q-o-Q ^ Others Singapore 3% Net interest income 684 4.1% (2.8%) 9% Non interest income 153 3.4% 7.7% Thailand 6% Operating income 837 4.0% (1.1%) Gross Loans RM63.2bil Malaysia Overhead expenses (445) (0.7%) (1.1%) 4.8% 54% Indonesia PPOP 392 9.8% (1.0%) 28% (
Slide 18: Wholesale Banking
Wholesale Banking (RM 'mil) 1Q20 Y-o-Y Q-o-Q Others ^ 5% Net interest income 807 10.2% (1.8%) Singapore Non interest income 162 (64.8%) (62.4%) 17% Operating income 969 (18.7%) (22.7%) Gross Loans Malaysia Thailand RM118.8bil 52% Overhead expenses (554) (5.8%) (1.8%) 8% 6.3% PPOP 415 (31.3%) (39.8%)
Slide 19: Group Ventures, Partnerships & Funding
Group Ventures, Partnerships & Funding * ~ Q-o-Q TnG Digital (RM ‘mil) 1Q20 Y-o-Y Total Registered Users Annual Active Users BAU^ (mil) (mil) Net interest income 256 (19.5%) (23.8%) +52.9% Q-o-Q +69.0% Q-o-Q Non interest income 155 121.4% 53.5% Operating income 411 5.9% (5.9%) 10.4 7.1 Overhead expe
Slide 20: CIMB Islamic
CIMB Islamic Islamic Financing (RM 'mil) 1Q20 Y-o-Y Q-o-Q (RM 'bil) Net financing income 585 13.4% (2.7%) +6.9% Y-o-Y -0.5% Q-o-Q Non financing income 153 44.3% 68.1% Operating income 738 18.6% 6.6% 93.8 93.3 Overhead expenses (258) 17.3% (36.5%) 87.3 PPOP 480 19.4% 67.8% (Provisions) / Writeback (9
Slide 21: 02 Other Updates
[#]02 Other Updates 21
Slide 22: Covid-19 – Focus Areas
Covid-19 – Focus Areas Employee Health & Welfare Supporting Governments Financial support for staff who have tested Will continue to work closely and positive for Covid-19 or whose parents are support all government efforts to play required to undergo Covid-19 tests our part in assisting customers a
Slide 23: 03 Final Remarks
[#]03 Final Remarks 23
Slide 24: Final Remarks
Final Remarks 1Q20 impacted by lower trading and FX income as well as higher provisions 1Q20 FY20 Target Outlook for the rest of 2020 remains equally challenging in view of the Covid-19-driven global ROTCE 4.4% 10.8% – 11.3% economic crisis impacting loan growth, NOII and provisions, as well as the
Slide 25: 04 Appendices
[#]04 Appendices 25
Slide 26: Earnings Summary
Earnings Summary 4Q19 (RM ’mil) 1Q20 1Q19 Y-o-Y Q-o-Q BAU ~ Net interest income 3,212 3,064 4.8% 3,346 (4.0%) Non interest income 931 1,102 (15.5%) 1,177 (20.9%) Operating income 4,143 4,166 (0.6%) 4,523 (8.4%) Overhead expenses (2,318) (2,302) 0.7% (2,468) (6.1%) PPOP 1,825 1,864 (2.1%) 2,055 (11.2
Slide 27: NOII breakdown
NOII breakdown (RM ’mil) 1Q20 1Q19 Y-o-Y 4Q19 Q-o-Q Fee & commission 565 584 (3.3%) 659 (14.3%) Brokerage 2 36 (94.4%) (2) (200.0%) Asset management and security services 5 7 (28.6%) 6 (16.7%) Trading & FX 337 442 (23.8%) 430 (21.6%) Dividend income 9 3 200.0% 11 (18.2%) Other income 13 30 (56.7%) 7
Slide 28: Key Ratios
Key Ratios 4Q19 (%) 1Q20 1Q19 Y-o-Y Q-o-Q BAU* ROE ~ 3.7 9.2 7.4 NIM ~** 2.44 2.48 2.53 Non-interest income / total income 22.5 26.4 26.0 Cost to income 56.0 55.3 54.6 Allowance coverage (including regulatory reserve) 75.9 103.5 99.6 Allowance coverage (excluding regulatory reserve) 75.9 88.2 80.7 L
Slide 29: PBT by Segments
PBT by Segments 4Q19 (RM ’mil) 1Q20 1Q19 Y-o-Y Q-o-Q BAU^ Consumer Banking (73.9%) 528 577 (8.5%) 592 (10.8%) Commercial Banking (-11.9%) (85) 310 (127.4%) 246 (134.6%) Wholesale Banking (10.4%) 74 483 (84.7%) 424 (82.5%) Corporate Banking (28.9%) 206 335 (38.5%) 269 (23.4%) Treasury & Markets ~ (-2
Slide 30: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 1Q20 1Q19 Y-o-Y 4Q19 Q-o-Q Malaysia (RM ’mil) 339 394 (14.0%) 398 (14.8%) Indonesia (IDR ’bil) 323 238 35.7% 113 185.8% Thailand (THB ’mil) 382 680 (43.8%) 914 (58.2%) Singapore (SGD ’mil) 10 4 150,0% 8 25.0% Others * (RM ’mil) 12 15 (20.0%) 11 9.1% PBT (R
Slide 31: 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 4.1% (0.8%) Consumer Gross Loans 9.5% 0.9% Mortgages 9.0% 2.1% Mortgages 11.6% 2.5% Term loans (4.7%) (7.0%) Auto 6.3% 0.4% Auto 2.6% (0.6%) Credit cards 8.9% (3.7%) Credit cards (3.5%) (6.8%) Consumer De
Slide 32: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 1Q20 1Q19 Y-o-Y 4Q19 Q-o-Q Net interest income 3,068 3,038 1.0% 3,096 (0.9%) Non interest income 1,151 1,032 11.5% 1,043 10.4% Operating income 4,219 4,070 3.7% 4,139 1.9% Overhead expenses (2,016) (2,073) (2.7%) (2,050) (1.7%) PPOP 2,203 1,997 10.3% 2,089 5.
Slide 33: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 1Q20 1Q19 Y-o-Y 4Q19 Q-o-Q ROE ^ 10.6 9.5 8.9 NIM ^ 5.02 5.28 5.14 Cost to Income 47.8 50.9 49.5 Loan Loss Coverage # 191.1 113.8 113.6 Allowance Coverage 130.0 86.9 82.0 Loan Loss Charge ^ 1.5 1.6 1.6 Gross Impaired Loans Ratio 4.4 3.9 3.8 Gross NPL (BI Def
Slide 34: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 1Q20 1Q19 Y-o-Y 4Q19 Q-o-Q (THB 'mil) Net interest income 2,830 2,832 (0.1%) 2,722 4.0% Non interest income 1,412 799 76.7% 1,046 35.0% Operating income 4,242 3,631 16.8% 3,768 12.6% Overhead expenses (2,461) (2,043) 20.5% (2,559) (3.8%) PPOP 1,78
Slide 35: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 1Q20 1Q19 Y-o-Y 4Q19 Q-o-Q ROE ^ 10.6 3.5 7.9 NIM ^ 3.3 3.3 3.3 Cost to Income 58.0 56.3 67.9 Loan Loss Coverage ** 88.6 109.5 94.1 Loan Loss Charge ^ 1.0 1.7 0.5 Gross NPL ratio ** 5.3 4.3 4.6 Net NPL ratio ** 3.1 2.3 2.7 ROA 1.0 0.3 0.8 Loan to Deposit 115.
Slide 36: Corporate Responsibility
Corporate Responsibility CSR Spend as at March 2020 Health & Wellbeing Community Health & Wellbeing 4% Development 1% 7% Community Development CIMB Non-CIMB 36% Foundation Foundation* RM 0.8mil Education RM 3.0mil 60% Education 92% Covid-19 Food Aid CIMB Niaga Peduli for Jabodetabak Sakon Wisut Scho
CIMB Group Holdings Berhad — 1Q20 Earnings Presentation on 6ix