Slide 1: Analyst Presentation 9M22 Results
Analyst Presentation 9M22 Results CIMB Group Holdings 30 November 2022 FORWARD Your Ambitions 1
Slide 2: 01 Overview
01 Overview 2
Slide 3: Key Highlights
Key Highlights Resilient 3Q22 operating income Sustained loan growth Continued CIR improvement despite weaker NOII momentum from prudent cost controls Moderate loan loss charge despite Strong core ROE of 10.4%, conservative stance in 3Q22 ahead of target Operating income +2.3% QoQ from loan growth a
Slide 4: Key Business/Operational Highlights
Key Business/Operational Highlights Strengthened operating income despite softer 3Q22 NOII Loan loss charge remains ahead of target (RM 'mil) +2.3% QoQ +6.2% YoY 0.70% Loan Loss 0.49% 0.48% 14,618 0.43% 13,768 Charge 4,884 4,997 NII Total 2,010 10,416 11,125 Provisions 511 1,417 3,675 3,901 (RM ‘mil
Slide 5: PBT By Segment
PBT By Segment CIMB Digital Assets & Robust Consumer and Commercial YoY Group Funding performance underpinned by focused loan growth 11% and lower provisions Consumer Wholesale +10.8% YoY attributed to lower Banking Corporate provisions and higher writebacks from 9M22 35% derivatives. However -18.0%
Slide 6: PBT By Country
PBT By Country Others Malaysia PBT +12.4% YoY driven by higher NII and Singapore lower Commercial and Corporate provisions. QoQ -0.1% 10% +10.7% mainly due to higher NII driven by margin Thailand expansion 7% Indonesia PBT QoQ weaker from lower recoveries and 9M22 trading income in 3Q22. PBT +28.6%
Slide 7: Operating Income
Operating Income NII +6.8% YoY and +6.1% QoQ from (RM 'mil) 3Q22 Q-o-Q 9M22 Y-o-Y robust loan growth and NIM expansion in Malaysia and Singapore Net interest income 3,901 6.1% 11,125 6.8% NOII rose 4.2% YoY from stronger fee & commission income and higher NPL Non interest income 1,096 (9.3%) 3,493 4
Slide 8: Operating Expenses
Operating Expenses 3Q22 9M22 Opex remains well under control, rising (RM 'mil) Q-o-Q Y-o-Y BAU^ BAU^ by just 2.8% YoY and 1.2% QoQ despite the planned technology Personnel 1,380 (0.3%) 4,122 3.1% investments and rising marketing costs Establishment 195 2.1% 580 (6.1%) CIR continues to improve, decli
Slide 9: Total Provisions
Total Provisions 9M21 Higher 3Q22 loan impairment due to a (RM 'mil) 3Q22 2Q22 Q-o-Q 9M22 Y-o-Y BAU^ prudent stance on Malaysia Commercial and topping up provisions for Indonesia Loan Impairment 488 456 7.0% 1,231 1,896 (35.1%) Corporate Commitment & Commitments & contingencies recorded a (11) 17 (1
Slide 10: Loan Provisions/ECL
Loan Provisions/ECL +7.0% Q-o-Q -35.1% Y-o-Y 3Q22 loan provisions +7.0% from legacy top- up in Indonesia Corporate and prudent RM 'mil 1,896 stance on Malaysia Commercial, and higher MEF & Overlay 1,231 underlying provisions in Consumer Malaysia 488 Covid-19 related 456 506 79 9M22 ECL -35.1% YoY fr
Slide 11: Asset Quality & Moratorium
Asset Quality & Moratorium Gross Loans Bonds Total exposure to Covid-19 impacted Covid-19 Impacted Sectors Sectors 30 Sep-22 30 Sep-22 sectors remains relatively stable Hospitality 1.1% 0.1% Malaysia Consumer Moratorium and R&R remained at 1% as at Sep-22 Retail 1.8% 0.1% compared to end Jul-22 Avia
Slide 12: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 30 Sep-22 Q-o-Q Y-o-Y Consumer Banking 211.6 2.2% 9.1% 88.7% 89.9% 87.2% Commercial Banking 65.8 2.7% 7.5% 85.8% 84.5% Wholesale Banking 128.6 4.5% 9.7% Total 406.0 3.0% 9.0% Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 ~ Loan Growth by Country (Y-o-Y) Others Singa
Slide 13: Deposits
Deposits CASA Ratio (RM 'bil) 30 Sep-22 Q-o-Q Y-o-Y 43.5% Consumer Banking 181.8 1.3% 5.1% 42.5% 42.3% Commercial Banking 80.0 1.9% 7.8% 41.5% 41.7% Wholesale Banking 189.8 1.8% (2.0%) Total Deposits 451.6 1.6% 2.5% Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Total CASA 188.3 0.3% 2.8% WY Others Deposit Grow
Slide 14: Capital and Liquidity Management
Capital and Liquidity Management CET1 remained strong at 14.1% as at 17.7% 17.8% 18.1% Sep-22 Tier 2 2.8% 2.8% 3.2% On a YoY basis, the improvement in Tier 1 1.0% 0.8% 0.8% CET1 from higher PAT was offset by CET1 higher credit RWA utilisation from 13.9% 14.1% 14.1% business growth and FVOCI losses f
Slide 15: Consumer Banking
Consumer Banking Personal (RM 'mil) 3Q22 Q-o-Q 9M22 Y-o-Y Financing Others Credit Cards 2% 4% Net interest income 1,682 3.1% 4,908 8.2% 4% Non interest income 518 (5.5%) 1,583 9.6% Auto 12% Gross Loans Operating income 2,200 0.9% 6,491 8.5% RM211.6 bil Overhead expenses (1,158) 2.3% (3,371) 3.1% Ter
Slide 16: Commercial Banking
Commercial Banking (RM 'mil) 3Q22 Q-o-Q 9M22 Y-o-Y Others Singapore 4% Net interest income 781 4.4% 2,247 3.6% 7% Thailand Non interest income 163 (4.7%) 499 16.9% 2% Gross Loans Operating income 944 2.7% 2,746 5.8% RM65.8 bil Indonesia 7.5% Overhead expenses (436) 6.6% (1,291) (0.7%) 26% Malaysia P
Slide 17: Wholesale Banking
Wholesale Banking (RM 'mil) 3Q22 Q-o-Q 9M22 Y-o-Y Others 1% Net interest income 882 (8.4%) 2,778 (0.3%) Singapore 17% Non interest income 399 (6.3%) 1,275 6.9% Thailand Gross Loans Operating income 1,281 (7.8%) 4,053 1.9% 7% RM128.6 bil Overhead expenses (522) (2.1%) (1,572) 6.4% 9.7% Malaysia 55% P
Slide 18: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding 3Q22 9M22 Touch ‘n Go Digital (RM ‘mil) Q-o-Q Y-o-Y Total Registered Users Annual Transacting BAU BAU (mil) Users (mil) Net interest income 557 68.3% 1,192 28.7% +11.6% Y-o-Y +35.8% Y-o-Y Non interest income 13 (80.0%) 133 (54.0%) 9.1 18.3 Operating income 570 43.
Slide 19: CIMB Islamic
CIMB Islamic 3Q22 9M22 Islamic Financing (RM ‘mil) Q-o-Q Y-o-Y (RM 'bil) BAU BAU Net financing income 887 8.1% 2,504 15.9% +5.4% Q-o-Q +18.7% Y-o-Y Non financing income 146 42.6% 368 6.2% 120.1 1,033 11.9% 2,872 14.5% 114.0 Operating income Overhead expenses (286) 5.9% (887) (2.2%) 101.2 PPOP 747 14
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: Focus Areas for 2022
Focus Areas for 2022 Vision To be the leading focused ASEAN bank Strategic Themes @ Delivering |a) Reshape portfolio & Focused b) Digitise for value c) Drive cost efficiency Sustainable | investments Financial * Accelerate loan growth in * Address MOCA and * Implement IT Blueprint * Technology CAPEX
Slide 22: Asset Composition and Growth
Asset Composition and Growth Growth momentum continued to improve on areas we would like to invest Asset Composition Gross Loan Composition CDA and Year Consumer Commercial Wholesale Group Year Consumer Commercial Wholesale Funding Dec-19 33% 11% 43% 12% Dec-19 50% 18% 32% Sep-22 32%▼ 10%▼ 42% ▼ 16%
Slide 23: Structured Cost Take-out
Structured Cost Take-out Evolution Analysis RM’mil Annualised 3Q22 Impact Total Cost FY21 Decrease in cost Cost Base(1) Increase in cost (45) (20) (55) (200) (38) (21) (3) (611) 9,386 8,775 8,938 (55) (45) (30) (200) (80) (24) (7) Annualised Impact of RM441mil 8,938 FY19A Cost FY20A Cost BAU FY21A S
Slide 24: Digital Reliability/Customer Centricity
Digital Reliability/Customer Centricity Metrics tracking well with continued momentum in digital transactions Clicks & Bizchannel Technology & Operational Investments Digital % Availability Technology Capex (RM’mil) 9M21 9M22 YoY Country FY22 2021 9M22 Digital Transactions Target 453 461 1.9% Expect
Slide 25: Sustainability
Sustainability Revised sustainable finance Committed RM30 bil in Established Scope 3 Finance target to RM60 bil in Green, financing to accelerate the Emissions Baseline towards Social & Sustainable Impact revitalization and continued achieving net zero ambition; Set Products & Services growth of SME
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
Slide 27: Final Remarks
Final Remarks Strong 9M22 performance underpinned by FY24 revenue expansion, contained cost escalation and 9M22 FY22 FY22 Forward23 declining provisions. Positive momentum BAU Guidance Targets + Ambition continued in 3Q22 as loan growth and NIM improvement offset weaker NOII ROE * 9.1% 8.0-9.0% 7.5-
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) 3Q22 2Q22 1Q22 9M22 3Q21 2Q21 1Q21 9M21 PBT BAU 2,210 2,157 2,101 6,468 1,639 1,835 1,788 5,262 Gain on deconsolidation Touch ‘n Go Digital - - - - - - 1,156 1,156 Gain / Loss on dilution of interest on disposal of - - - - 2 - - 2 associates Transformational / Restructuri
Slide 30: Earnings Summary
Earnings Summary 3Q22 2Q22 9M22 9M21 3Q21 (RM ’mil) Q-o-Q Y-o-Y Y-o-Y BAU^ BAU^ BAU^ BAU^ BAU^ Net interest income 3,901 3,675 6.1% 11,125 10,416 6.8% 3,457 12.8% Non interest income 1,096 1,209 (9.3%) 3,493 3,352 4.2% 936 17.1% Operating income 4,997 4,884 2.3% 14,618 13,768 6.2% 4,393 13.7% Overhe
Slide 31: Key Ratios
Key Ratios 3Q22 2Q22 9M22 9M21 3Q21 (%) Q-o-Q Y-o-Y Y-o-Y BAU^ BAU^ BAU^ BAU^ BAU^ ROE ~ 10.7 10.3 ▲ 10.4 9.0 ▲ 8.4 ▲ Reported ROE 9.2 8.5 ▲ 9.1 8.3 ▲ 6.1 ▲ NIM ~* 2.55 2.47 ▲ 2.50 2.46 ▲ 2.40 ▲ Non-interest income / total income 21.9 24.8 ▼ 23.9 24.3 ▼ 21.3 ▲ Cost to income 45.5 46.0 ▼ 46.1 47.7 ▼
Slide 32: NOII breakdown
NOII breakdown 9M21 (RM ’mil) 3Q22 2Q22 Q-o-Q 9M22 Y-o-Y BAU^ Fee & commission 627 657 (4.6%) 1,909 1,717 11.2% Brokerage - 1 (100.0%) 1 1 0.0% Asset management and security services 6 8 (25.0%) 20 26 (23.1%) Trading & FX 413 415 (0.5%) 1,322 1,450 (8.8%) Dividend income 10 21 (52.4%) 42 50 (16.0%)
Slide 33: PBT by Segments
PBT by Segments 3Q22 2Q22 9M22 9M21 PBT (RM ’mil) Q-o-Q Y-o-Y BAU^ BAU^ BAU^ BAU^ Consumer Banking (35.0%) 784 762 2.9% 2,266 1,669 35.8% Commercial Banking (17.2%) 336 328 2.4% 1,109 730 51.9% Wholesale Banking (36.9%) 727 887 (18.0%) 2,387 2,154 10.8% Corporate Banking (20.6%) 440 602 (26.9%) 1,33
Slide 34: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 3Q22 2Q22 Q-o-Q 9M22 9M21 Y-o-Y Malaysia (RM ’mil) 538 473 13.7% 1,505 1,294 16.3% Indonesia (IDR ’bil) 545 465 17.2% 1,350 546 147.3% Thailand (THB ’mil) 282 728 (61.3%) 1,668 961 73.6% Singapore (SGD ’mil) 11 14 (21.4%) 36 24 50.0% Others * (RM ’mil) 13
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 6.5% 1.5% Consumer Gross Loans 14.7% 3.3% Mortgages 7.9% 1.8% Mortgages 8.6% 3.0% Term loans 2.1% 0.3% Auto 52.5% 5.1% Auto 6.6% 1.7% Credit cards 6.0% (0.7%) Credit cards 17.8% 3.9% Consumer Deposits 3.1
Slide 36: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Loan Exposure: Borrowers Status: 2.7% of total Group gross loans Impaired 35% Thailand Singapore 5% Normal 16% 64% Watch List (M & H) 1% Indonesia 8% Segmental Exposure: Oil Traders Upstream Malaysia 8% 16% 71% Downstream As at Sep-22, the O&G impairment ratio stood at 34.5%
Slide 37: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 3Q22 2Q22 Q-o-Q 9M22 9M21 Y-o-Y Net interest income 3,436 3,329 3.2% 9,974 9,888 0.9% Non interest income 1,066 1,455 (26.7%) 4,111 3,437 19.6% Operating income 4,502 4,783 (5.9%) 14,085 13,325 5.7% Overhead expenses* (2,069) (2,078) (0.4%) (6,251) (6,031) 3.
Slide 38: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 3Q22 2Q22 Q-o-Q 9M22 9M21 Y-o-Y ROE ^* 13.1 13.7 ▼ 12.9 11.2 ▲ NIM ^ 4.77 4.63 ▲ 4.62 5.00 ▼ Cost to Income* 46.0 43.4 ▲ 44.4 45.3 ▼ Loan Loss Coverage # 208.8 215.0 ▼ 208.8 217.2 ▼ Allowance Coverage 117.9 115.3 ▲ 117.9 103.8 ▲ Loan Loss Charge ^ 1.3 1.7 ▼
Slide 39: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 3Q22 2Q22 Q-o-Q 9M22 9M21 Y-o-Y (THB 'mil) Net interest income 2,416 2,354 2.6% 7,081 7,566 (6.4%) Non interest income 1,188 1,268 (6.3%) 3,629 3,317 9.4% Operating income 3,604 3,622 (0.5%) 10,709 10,884 (1.6%) Overhead expenses (1,942) (1,965) (
Slide 40: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 3Q22 2Q22 Q-o-Q 9M22 9M21 Y-o-Y ROE ^ 6.2 9.6 ▼ 8.5 5.5 ▲ NIM ^ 2.6 2.7 ▼ 2.7 3.1 ▼ Cost to Income 53.9 54.3 ▼ 53.2 55.7 ▼ Loan Loss Coverage ** 113.6 114.3 ▼ 113.6 105.9 ▲ Loan Loss Charge ^ 4.0 1.2 ▲ 0.9 1.6 ▼ Gross NPL ratio ** 3.4 3.3 ▲ 3.4 4.4 ▼ ROA 0.5
Slide 41: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 9M22 9M21 9M22 9M21 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 22.1% 2 21.0% 2 DCM 6.8% 7 5.1% 10 Sukuk 23.6% 2 21.9% 2 M&A 5.9% 9 - - M&A 22.2% 4 - - Syndication ^ 4.3% 7 4.0% 6 Syndication ^ 12.6% 3 14.0% 2 IPO 2.7% 7 0.7% 1
Slide 42: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 9M22 9M21 9M22 9M21 Asia ASEAN Market Market Market Market Rank Rank (ex-Japan) * Rank Rank Share Share Share Share DCM 10.1% 1 10.5% 1 DCM 0.6% 37 0.5% 45 M&A 2.2% 17 - - M&A 0.4% 40 - - Syndication ^ 3.1% 10 2.2% 14 Syndication ^ 0.6% 31 0.4% 48 IPO 8.1% 1 1.4% 23 I