Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — 2Q11 Earnings Presentation
58 slides from Cimb Group Holdings Bhd's earnings presentation, Aug 23, 2011
Slide 1: ASEAN For You Analyst Presentation 2Q11 Results
ASEAN FOR YOU Analyst Presentation 2Q11 RESULTS 1 23 August 2011
Slide 2: Key Highlights
Key Highlights Record net profit of RM970 mil for 2Q11, up 5.8% Q-o-Q 1H11 Y-o-Y net profit up 9.3% (but 25.0% excluding 2010 ex-Lippo bonds sale) Strong Y-o-Y uplift at Malaysia Consumer Bank and CIMB Niaga. Consumer deposits continued high growth momentum (Group CASA: 35%) Revenues slightl
Slide 3: CIMB Group 2Q11 Financials
CIMB GROUP : 2Q11 RESULTS CIMB GROUP 2Q11 FINANCIALS
Slide 4: Earnings Summary
Earnings Summary (RM ’mil) 2Q11 1Q11 Q-o-Q 1H11 1H10 Y-o-Y Net interest income 1,979 1,899 4.2% 3,878 3,792 2.3% Non interest income 980 851 15.2% 1,831 2,003 (8.6%) Operating income 2,959 2,750 7.6% 5,709 5,795 (1.5%) Loan impairment (86) (6) >1000% (92) (272) (66.2%) Other provisions 19 2 850.0% 2
Slide 5: Quarterly Earnings Trend
Quarterly Earnings Trend Series break due to adoption of FRS 139 3,186 2,993 2,959 2,897 2,737 2,731 2,802 2,750 2,544 16.5% 17.2% 17.0% 16.2% 15.7% 16.1% 15.1% 15.4% 14.9% 1,233 1,278 1,094 1,129 1,185 1,185 1,148 1,001 916 970 879 838 889 878 917 727 803 663 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11
Slide 6: Contribution by Entity
Contribution by Entity 2Q11 1Q11 1H11 1H10 Legal Entity RM ’mil % of PBT RM ’mil % of PBT RM ’mil % of PBT RM ’mil % of PBT CIMB Bank 613 48% 673 55% 1,286 51% 1,242 54% CIMB Niaga 400 31% 336 27% 736 29% 828 36% CIMB Islamic 118 9% 146 12% 264 11% 159 7% CIMB Labuan 89 7% 12 1% 101 4% 88 4% CIMB In
Slide 7: Contribution by Geography
Contribution by Geography 2Q11 1Q11 Others Others Thailand Thailand 3% Singapore 4% Singapore 1% 3% 3% 2% Indonesia Indonesia 31% 28% Malaysia 62% Malaysia 63% 1H11 1H10 Others Thailand Others Thailand Singapore 4% 2% 5% 1% Singapore 2% 2% Indonesia 29% Indonesia 36% Malaysia Malaysia 56% 63% 7
Slide 8: Estimated PBT By Segment
Estimated PBT By Segment PBT 2Q11 1Q11 Q-o-Q 1H11 1H10 Y-o-Y (after HOCA) RM ’mil RM ’mil % RM ’mil RM ’mil % Consumer Banking - Good Bank 332 287 15.7% 619 349 77.4% - Bad Bank (including 40 56 (28.6%) 96 41 134.1% SEASAM) 372 343 8.5% 715 390 83.3% Corporate & Investment Banking 250 243 3.1% 493 4
Slide 9: Estimated PBT By Segment
Estimated PBT By Segment 2Q11 1Q11 CIMB Thai CIMB Thai 1% 3% Consumer Consumer CIMB Niaga Banking CIMB Niaga Banking 31% 29% 27% 27% GAM & GAM & Insurance Insurance 2% 3% Corporate & Corporate & Treasury & Treasury & Inv Banking Inv Banking Investments Investments 20% 20% 16% 21% 1H11 1H10 CIMB Thai
Slide 10: Estimated PBT By Segment (Regional)
Estimated PBT By Segment (Regional) 2Q11 1Q11 GAM & GAM & Insurance Insurance 3% 2% Consumer Banking Consumer Treasury & Banking Treasury & 34% Investments Investments 37% 33% 35% Corporate & Corporate & Investment Investment Banking Banking 28% 28% 1H11 1H10 GAM & GAM & Insurance Insurance 2% 1% Co
Slide 11: AFS MTM Position
AFS MTM Position (RM ’mil) 624.0 624.0 522.2 474.8 479.9 426.3 Mar 10 June 10 Sept 10 Dec 10 Mar 11 June 11 11
Slide 12: Key Ratios
Key Ratios (%) 2Q11 1Q11 Q-o-Q 1H11 1H10 Y-o-Y ROE * 16.1 15.7 40bps 15.8 17.0 (120bps) NIM * 3.15 3.08 7bps 3.11 3.38 (27bps) Non-interest income / total income 33.1 31.0 210bps 32.1 34.6 (250bps) Cost / income 56.2 56.2 - 56.2 53.8 240bps Allowance coverage 80.4 80.6 (20bps) 80.4 78.4 200bps Allow
Slide 13: Gross Loans Growth
Gross Loans Growth 30 Jun 11 31 Mar 11 30 Jun 10 Divisions / Products Q-o-Q Y-o-Y (RM ’bil) (RM ’bil) (RM ’bil) Consumer Banking (48.1%) ** 85.2 83.0 2.6% 74.9 13.7% Mortgages 38.0 36.8 3.5% 32.4 17.3% # HP 10.5 10.6 (0.4%) 10.1 4.6% OD and TL 16.6 16.2 2.0% 14.8 11.6% Credit cards 4.4 4.2 4.6% 3.7
Slide 14: Loan Assets by Geography
Loan Assets by Geography RM15.0 bil RM15.6 bil RM17.2 bil Others 10% 10% 10% RM32.2 bil RM37.5 bil Indonesia RM42.8 bil 21% 23% 25% RM103.6 bil RM109.8 bil Malaysia 69% RM111.5 bil 67% 65% FY09 FY10 1H11 Note: Others include overseas branches and Labuan 14
Slide 15: Deposits Growth
Deposits Growth 30 Jun 11 31 Mar 11 30 Jun 10 Divisions / Products Q-o-Q Y-o-Y (RM ’bil) (RM ’bil) (RM ’bil) Retail (30.8%) * 64.6 59.9 7.8% 51.0 26.7% - Current 18.5 16.0 15.6% 12.4 49.2% - Savings 12.3 12.1 1.7% 10.6 16.0% - Fixed & structured deposits 33.8 31.8 6.3% 28.0 20.7% Commercial (7.7%) 1
Slide 16: Capital Management – CIMB Bank
Capital Management – CIMB Bank 15.6% 15.1% 15.0% 15.0% 16.0%^ RWCR 14.8% 14.7% 13.9% 15.0% 14.6% 14.8% 14.8% 13.9% Core 14.2% 13.9% 13.8% Capital Ratio 10.8% RWA (RM’mil) 107,141 100,436 102,544 107,739 101,905 106,377 110,349 105,449 Series Series break due break due to FRS 139 to Basel 2 197 adopt
Slide 17: Capital Management – All Banking Entities
Capital Management – All Banking Entities CIMB Group Jun-11 Mar-11 Gearing ratio 22.4% 21.2% Double leverage ratio 120.0% 118.0% Jun-11^ Mar-11^ Jun-10^ Core Capital Ratio (B2) (B2) (B1) CIMB Bank 13.9% 13.8% 14.2% CIMB Investment Bank 20.8% 21.0% 18.8% CIMB Islamic 10.9% 12.8% 10.0% CIMB Niaga # 11
Slide 18: CIMBG: Operating Expenses
CIMBG : Operating Expenses (RM ’mil) 2Q11 1Q11 Q-o-Q 1H11 1H10 Y-o-Y Personnel 859 823 4.4% 1,682 1,567 7.3% Establishment 351 347 1.1% 698 738 (5.4%) Marketing 110 63 74.6% 173 164 5.5% Admin & General 342 312 9.7% 654 647 1.1% Total 1,662 1,545 7.6% 3,207 3,116 2.9% 18
Slide 19: Consumer Bank
CIMB GROUP : 2Q11 RESULTS CONSUMER BANK
Slide 20: Malaysian Consumer Bank Financials
Malaysian Consumer Bank Financials (RM ’mil) 2Q11 1Q11 Q-o-Q 1H11 1H10 Y-o-Y Net interest / financing income 791 779 1.5% 1,570 1,401 12.1% Non interest income 236 216 9.3% 452 406 11.3% Total income 1,027 995 3.2% 2,022 1,807 11.9% Overheads (direct + head (677) (700) (3.3%) (1,377) (1,316) 4.6% of
Slide 21: Malaysian Consumer Good Bank Financials
Malaysian Consumer Good Bank Financials (RM ’mil) 2Q11 1Q11 Q-o-Q 1H11 1H10 Y-o-Y Net interest / financing 772 763 1.2% 1,535 1,378 11.4% income Non interest income 233 214 8.9% 447 296 51.0% Total income 1,005 977 2.9% 1,982 1,674 18.4% Overheads (direct + head (635) (651) (2.5%) (1,286) (1,125) 14
Slide 22: Malaysian Consumer Banking Indicators (1)
Malaysian Consumer Banking Indicators (1) Malaysia 1Q10 1Q11 Retail Financial Services Deposits Market Market Rank Rank 333,644 334,870 Share Share Deposits 9.3% 3 10.4% 4 301,987 Residential 295,424 13.9% 2 13.7% 2 285,627 Mortgages 46.6 Non Residential 44.3 13.1% 2 12.4% 2 Mortgages 41.5 38.7 37.3
Slide 23: Malaysian Consumer Banking Indicators (2)
Malaysian Consumer Banking Indicators (2) CIMB Express – Loan Base (RM ’mil) HP – Loan Base (RM ’mil) 10,617 10,606 10,564 151 10,469 118 10,080 72 94 44 2,324 1,874 1,184 1,278 1,323 315 320 317 310 308 100 78 59 44 31 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Convention
Slide 24: Singapore Consumer Banking Indicators
Singapore Consumer Banking Indicators Retail Deposits (SGD ’mil) Home Loan Outstanding (SGD ’mil) 2,321 1,229 2,224 1,039 2,021 1,913 771 1,714 488 309 June-10 Sep-10 Dec-10 Mar-11 Jun-11 June-10 Sep-10 Dec-10 Mar-11 Jun-11 Retail Customer Base* Credit Cards 29,869 100,354 88,779 26,314 76,251 150 2
Slide 25: Treasury & Investment Banking
CIMB GROUP : 2Q11 RESULTS TREASURY & INVESTMENT BANKING
Slide 26: Treasury and Investment Financials
Treasury and Investment Financials (RM ’mil) 2Q11 1Q11 Q-o-Q 1H11 1H10 Y-o-Y Net interest / financing income 176 162 8.6% 338 368 8.1% Fee income 7 2 250.0% 9 6 50.0% Net trading income 82 84 (2.4%) 166 258 (35.7%) Total income 265 248 6.8% 513 632 (18.8%) Provision - - - - 16 n.a. Overheads (98) (9
Slide 27: Corporate & Investment Banking Financials
Corporate & Investment Banking Financials (RM ’mil) 2Q11 1Q11 Q-o-Q 1H11 1H10 Y-o-Y Net interest / financing income 194 192 2.0% 386 410 (6.4%) Fee & commission income 201 129 55.9% 330 202 63.4% Net trading income 39 33 18.2% 72 45 60.0% Brokerage income 75 89 (15.7%) 164 158 3.8% Total income 509
Slide 28: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) Malaysia 1H10 1H11 Indonesia 1H10 1H11 Market Market Market Market Rank Rank Rank Rank Share Share Share Share Stock Broking 9.6% 1 10.1% 1 Stock Broking 6.3% 3 4.7% 5 IPO 31.8% 1 49.2% 1 IPO 16.7% 2 - - ECM 26.2% 2 47.3% 1 ECM 8.5% 3 5.1% 8 M&A 35.6% 1 18.7% 4 M&A 41
Slide 29: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 1H10 1H11 ASEAN Market Market Rank Rank Share Share IPO 18.7% 1 7.1% 4 ECM 12.5% 3 8.4% 4 M&A 18.0% 2 6.0% 13 Syndication 7.9% 1 - - Bonds - Domestic 9.6% 3 13.8% 1 Currency Sources: Dealogic, Bloomberg, Thomson Reuters, Local Stock Exchanges and internal data Notes:
Slide 30: Notable Deals
Notable Deals M&A DCM Integrated Healthcare Holdings Sdn Bhd Government of Malaysia RM3.3 billion acquisition of up to 30% equity USD2.0 bil Trust Certificates interest of Integrated Healthcare Holdings Sdn. Largest dual-tranche global sovereign USD Bhd. by Mitsui & Co., Ltd. Sukuk ever Khazanah Nas
Slide 31: Asset Management & Insurance
CIMB GROUP : 2Q11 RESULTS ASSET MANAGEMENT & INSURANCE
Slide 32: Group Asset Management & Insurance
Group Asset Management & Insurance PBT (after HOCA) 2Q11 1Q11 Q-o-Q 1H11 1H10 Y-o-Y (RM ’mil) CIMB-P Group 21.2 17.5 21.3% 38.6 24.4 58.6% Wholesale 3.9 (1.8) n.a. 2.2 5.6 (61.2%) Insurance 7.9 1.3 491.6% 9.3 (2.1) n.a. Securities Services 2.8 4.7 (40.3%) 7.5 8.6 (12.8%) Total 35.8 21.7 65.0% 57.6 3
Slide 33: CIMB Niaga
CIMB GROUP : 2Q11 RESULTS CIMB NIAGA
Slide 34: CIMB Niaga: Earnings Summary
CIMB Niaga: Earnings Summary (IDR ’bil) 2Q11 1Q11 Q-o-Q 1H11 1H10 Y-o-Y Net Interest Income 1,920 1,876 2.3% 3,796 3,531 7.5% Non Interest Income 608 573 6.2% 1,181 683 72.9% Operating Income 2,528 2,449 3.2% 4,977 4,214 18.1% Overhead Expenses (1,214) (1,255) (3.2%) (2,469) (1,997) 23.7% Pre Provis
Slide 35: CIMB Niaga: Balance Sheet Changes
CIMB Niaga : Balance Sheet Changes (IDR ’bil) 30 Jun 11 31 Mar 11 Q-o-Q 30 Jun 10 Y-o-Y Placements & Other MS 22,143 25,783 (14.1%) 25,242 (12.3%) Government Bonds 6,849 7,162 (4.4%) 4,712 45.4% Loans 113,202 106,631 6.2% 88,388 28.1% Other Assets 10,514 9,474 11.0% 7,990 31.6% Total Assets 152,709
Slide 36: CIMB Niaga: Gross Loans Growth
CIMB Niaga : Gross Loans Growth 30 Jun 11 31 Mar 11 30 Jun 10 Products / Divisions Q-o-Q Y-o-Y (IDR ’bil) (IDR ’bil) (IDR ’bil) Retail Banking (30.3%) 35,364 34,419 2.7% 28,443 24.3% Credit Cards 2,393 2,171 10.2% 1,579 51.5% Auto Loans 14,444 14,584 (1.0%) 11,532 25.3% Mortgage 16,990 16,161 5.1% 1
Slide 37: CIMB Niaga: Deposits Growth
CIMB Niaga : Deposits Growth 30 Jun 11 31 Mar 11 30 Jun 10 Products / Divisions Q-o-Q Y-o-Y (IDR ’bil) (IDR ’bil) (IDR ’bil) Retail Banking (47.2%) 58,177 58,130 0.1% 48,672 19.5% - Current 3,930 4,028 (2.4%) 3,332 17.9% - Savings 27,375 29,804 (8.2%) 20,623 32.7% - Fixed & structured deposits 26,87
Slide 38: CIMB Niaga: Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 2Q11 1Q11 Q-o-Q 1H11 1H10 Y-o-Y ROE 20.0 19.3 70bps 19.7 19.1 60bps NIM 5.6 5.5 10bps 5.6 6.7 (110bps) Cost to Income 48.0 51.3 (330bps) 49.6 47.4 220bps Loan Loss Coverage# 109.7 107.4 230bps 109.7 137.4 (2,770bps) Allowance Coverage* 83.2 82.9 30bps 83.2 8
Slide 39: CIMB Niaga: Corporate Updates
CIMB Niaga : Corporate Updates Consumer Market Share Corporate Updates Indonesia 1H10 1H11 Continued strong demand for corporate loans Proliferate Mikro Laju Branches Market Market Rank Rank Launched New BizChannel Share Share Launched 5 Motor Laju branches in Jakarta Deposits ^ 5.1% 5 5.0%
Slide 40: CIMB Thai
CIMB GROUP : 2Q11 RESULTS CIMB Thai
Slide 41: CIMB Thai: Earnings Summary
CIMB Thai : Earnings Summary (Before GAAP Adjustments) 2Q11 1Q11 Q-o-Q 1H11 1H10 Y-o-Y (Baht ’mil) Net Interest Income 1,151 1,130 1.9% 2,281 2,136 6.8% Non Interest Income 468 460 1.5% 928 1,187 (21.9%) Operating Income 1,619 1,590 1.8% 3,209 3,324 (3.5%) Overhead Expenses (1,253) (1,232) 1.7% (2,4
Slide 42: CIMB Thai: Balance Sheet Changes
CIMB Thai : Balance Sheet Changes (Before GAAP Adjustments) 30 Jun 11 31 Mar 11 Q-o-Q 30 Jun 10 Y-o-Y (Baht ’mil) Placements & Other MS 19,249 13,453 43.1% 20,094 (4.2%) Government Bonds (Net) 15,282 14,686 4.1% 13,942 9.6% Loans (Net) 99,234 95,346 4.1% 83,840 18.4% Other Assets 11,006 10,944 0.6%
Slide 43: CIMB Thai: Gross Loans Growth
CIMB Thai : Gross Loans Growth 30 Jun 11 31 Mar 11 30 Jun 10 Products / Divisions Q-o-Q Y-o-Y (THB ’bil) (THB ’bil) (THB ’bil) Retail Banking (35.5%) 36.1 35.0 3.2% 29.0 24.3% Auto Loans 7.5 6.8 10.5% 4.6 61.8% Mortgage 23.4 22.3 4.8% 18.4 27.3% Personal / Others 5.2 5.9 (11.3%) 6.0 (13.4%) Corporat
Slide 44: CIMB Thai: Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 2Q11 1Q11 Q-o-Q 1H11 1H10 Y-o-Y ROE 8.7 9.9 (120bps) 9.3 17.5 (820bps) NIM 3.6 3.7 (10bps) 3.6 4.1 (50bps) Cost to Income 77.4 77.5 (10bps) 77.4 69.9 750bps Loan Loss Coverage** 80.4 98.4 (1,800bps) 80.4 57.4 2,300bps Loan Loss Charge 0.4 0.3 10bps 0.3 0.8 (5
Slide 45: CIMB Thai: Corporate Updates
CIMB Thai : Corporate Updates Consumer Market Share Other Updates Thailand 1H10 1H11 Issued THB3 bil 10-year subordinated debentures with 5.35% interest rate Market Market Rank Rank Brighter outlook post-elections. Strong pipeline of Share Share corporate loans for 2H11 Deposits 1.4% 11 1.4% 11
Slide 46: Other Highlights
CIMB GROUP : 2Q11 RESULTS OTHER HIGHLIGHTS
Slide 47: Business Reorganisation
Business Reorganisation Most significant reorganisation since CIMB-BCB merger in 2005 Group Management Committee streamlined Wholesale Business reorganised: Consolidate all credit, markets and transaction banking Consolidate all advisory and brokerage Rearrange asset management franchise
Slide 48: CIMB Islamic
CIMB Islamic Ranking of Total Islamic Assets as at 31 Mar 2011 1H10 1H11 Market share Market and ranking Market Market Total Assets Rank Rank Share Share Share Rank Company RM ’mil % Sukuk 1 MIBB 58,782 22.3% - Malaysia 35.5% 1 25.9% 2 2 CIMB Islamic 36,261 13.8% - Global 22.2% 2 19.7% 2 3 Bank Isla
Slide 49: Bank of Yingkou
Bank of Yingkou 2Q11 1Q11 Q-o-Q 1H11 1H10 Y-o-Y Operating income (RMB ‘mil) 467 445 4.9% 912 496 83.9% Net profit (RMB ‘mil) 220 234 (6.0%) 454 220 106.4% PAT to CIMB Group (RM ‘mil) 20.4 21.7 (6.0%) 42.1 21.4 96.7% ROE (%) 30.5 35.2 (470bps) 32.9 20.4 1,250pbs NIM (%) 4.3 4.2 10bps 4.2 3.9 30bps Al
Slide 50: Touch 'n Go
Touch ‘n Go (RM ’mil) 2Q11 1Q11 Q-o-Q 1H11 1H10 Y-o-Y Revenue 25.0 25.2 (1.1%) 50.2 45.9 9.4% Cost 20.5 18.1 13.1% 38.6 33.2 16.3% PBT 4.5 7.1 (37.5%) 11.6 12.7 (8.8%) PAT 3.1 5.3 (42.0%) 8.4 9.5 (11.3%) PAT to CIMB Group 1.6 2.8 (42.0%) 4.4 5.0 (11.3%) Transaction Value and Cardbase Corporate Updat
Slide 51: Key 2011 Priorities Round-Up
Key 2011 Priorities Round-Up Priorities Updates CASA growth for Malaysia and Indonesia on track Regional CASA Drive Commenced sharing/implementation of proven CASA products and growth strategies Initial round of quick-wins resulted in significant reduction in Cost Management discretionary cost
Slide 52: Outlook
CIMB GROUP : 2Q11 RESULTS OUTLOOK
Slide 53: Targets for 2011
Targets for 2011 1H11 Annualised 2011 Targets On Track ROE 15.8% 17% r TSR +1.08% > FBM KLCI 9 Dividend 47%* 40% - 60% 9 Group loans growth 11% 18% r Group deposits growth 11% 20% r Loan loss charge 0.10% 0.4% 9 Core Capital Ratio (at CIMB Bank) (Basel II) 13.9%^ >10% 9 RWCR (at CIMB Bank) (Basel II
Slide 54: Outlook
Outlook Remain cautious about the operating environment – Higher liquidity, credit and margin standards IB deal pipeline remains strong Retain 17% ROE target but have restrategised for greater attention on operational efficiencies, credit charge and costs Reorganisation will strengthen compe
Slide 55: Thank You
THANK YOU 55
Slide 56: Appendices
CIMB GROUP : 2Q11 RESULTS APPENDICES
Slide 57: Consolidated Balance Sheet Changes
Consolidated Balance Sheet Changes (RM ‘mil) 30 Jun 11 31 Mar 11 Q-o-Q 30 Jun 10 Y-o-Y Cash & short term funds 28,557 24,660 16% 22,701 26% Securities purchased under resale agreements 4,124 2,634 57% 4,120 0% Deposits & placements with financial institutions 9,291 10,522 (12%) 13,580 (32%) Financia
Slide 58: Asset Quality Ratios – CIMBG
Asset Quality Ratios – CIMBG Series break due to adoption of FRS 139 90.8% 88.1% 86.8% 85.6% 86.7% 82.9% 82.3% 82.0% 80.0% 80.8% 78.5% 79.1% 80.4% 75.8% 80.6% 80.5% 79.3% 81.1% 80.6% 80.0% 78.4% 7.6% 7.5% 7.2% 6.5% 6.6% 6.1% 6.1% 5.9% 5.6% 5.6% 5.5% 5.7% 5.7% 5.5% 5.7% 4.9% 5.0% 4.7% 4.5% 4.5% 5.0%
CIMB Group Holdings Berhad — 2Q11 Earnings Presentation on 6ix