Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — 9M20 Earnings Presentation
37 slides from Cimb Group Holdings Bhd's earnings presentation, Nov 27, 2020
Slide 1: Analyst Presentation 9M20 Results
Analyst Presentation 9M20 Results CIMB Group Holdings 27 November 2020 FORWARD Together 1
Slide 2: 01 Overview
[#]01 Overview 2
Slide 3: Key Highlights
Key Highlights Subdued loan growth but significant Impacted by elevated provisions Overheads Remain NOII improvement across MIST Under Control Q4 Post-Moratorium impact Expect 4Q20 to Remain complicated by Covid-19 third wave Challenging Stronger 3Q20 performance on the back +15.5% QoQ Elevated prov
Slide 4: Key Business/Operational Highlights
Key Business/Operational Highlights Improved 3Q20 Operating Income 3Q20 Provisions Higher Across MIST Net Interest Income 4,465 1.44% Non Interest Income LLC ~ 0.38% 3,958 3,865 3,228 Operating 2,934 Loan 1,033 Income Provisions (RM 'mil) (RM 'mil) 931 1,237 2Q20 3Q20 9M19 9M20 CASA Ratio Continues
Slide 5: PBT By Segment
PBT By Segment Stronger 3Q20 Consumer PBT owing to absence of modification loss and improved fee income CIMB Digital Consumer Assets & Group Banking Commercial PBT lower YoY and QoQ from elevated Funding 9M20 54% provisions 42% Group PBT Wholesale stronger QoQ from improved T&M activity RM1,364 mil
Slide 6: PBT By Country
PBT By Country Others Malaysia PBT improved QoQ from stronger T&M -4% income partially offset by higher provisions Singapore -80% Indonesia PBT declined YoY and QoQ due to elevated 9M20 provisions Malaysia Group PBT 126% Thailand 3Q20 PBT significantly stronger QoQ from RM1,364 mil decline in ECL 74
Slide 7: Operating Income
Operating Income Operating income +15.5% QoQ underpinned by (RM 'mil) 9M20 Y-o-Y 3Q20 Q-o-Q 32.8% NOII improvement Strong NOII QoQ on the back of recovery in Net interest income 9,374 0.7% 3,228 10.0% trading & FX activity and wealth management Net interest income 9,560 2.7% 3,133 (2.6%) NII +10.0%
Slide 8: Operating Expenses
Operating Expenses Opex -5.5% YoY from reduction in most (RM 'mil) 9M20 Y-o-Y 3Q20 Q-o-Q segments as cost controls remain tight Opex +3.8% QoQ due to higher A&G and Personnel 3,925 (3.5%) 1,283 (0.6%) establishment expenses Establishment 1,512 2.0% 512 1.8% 3Q20 CIR improved QoQ to 49.4% due to the
Slide 9: Loan Provisions/ECL
Loan Provisions/ECL Significant increase in YoY provisions due to +283.2% Y-o-Y +3.4% Q-o-Q specific credit impairments, MEF adjustments and management overlay RM 'mil 3,958 QoQ rise largely from management overlay 738 and Covid-19 related provisions MEF & Overlay 459 3Q20 provisions remain elevated
Slide 10: Asset Quality & Moratorium
Asset Quality & Moratorium Gross Loans Bonds Covid-19 Impacted Sectors Implementation of Group-wide R&R 30 Sep-20 30 Sep-20 approach post-moratorium Hospitality 1.3% 0.1% Extension of Malaysia Target Retail 2.4% 0.1% Assistance Programme post-CMCO Aviation 0.2% 0.5% Continued opt-in moratorium and L
Slide 11: TAP and R&R
TAP and R&R* Covid-19 Impacted Sectors Over Malaysia Over Group Segment Over Total Malaysia Over Total Group TAP & RnR Segment Loans Loans Loans Loans Consumer 8.2% 6.2% 4.9% 3.2% Commercial 16.0% 9.1% 2.4% 1.6% Corporate 10.9% 5.8% 2.5% 1.6% Total 9.8% 6.4% 9.8% 6.4% Moratorium and R&R Target Assis
Slide 12: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Loan Exposure: Borrowers Status: Thailand 2.5% of total Group 7.9% Impaired gross loans 38% Normal Singapore 52% 17.5% 30 Sep-20 Watchlist Malaysia RM8.9bil 10% 73.5% Indonesia 1.1% Segmental Exposure: Oil Traders Upstream 10% 3% As at Sep-20, the O&G impairment ratio stood
Slide 13: Gross Loans
Gross Loans (RM 'bil) Sep-20 Y-o-Y YTD Q-o-Q Loans-to-Deposit Ratio Consumer Banking 186.9 3.5% 1.1% 0.9% 91.6% 92.0% 91.2% Commercial Banking 63.8 (0.9%) (2.6%) (1.5%) 88.2% 87.7% Wholesale Banking 115.7 (0.1%) (2.9%) (3.4%) Total 366.4 1.6% (0.8%) (0.9%) Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Others S
Slide 14: Deposits
Deposits (RM 'bil) Sep-20 Y-o-Y YTD Q-o-Q CASA Ratio Consumer Banking 177.4 2.0% (1.4%) (4.8%) 40.0% 38.4% Commercial Banking 69.8 13.9% 6.2% (0.1%) 36.5% 34.3% 34.4% Wholesale Banking 170.5 7.6% 9.2% 4.4% Total 417.7 6.1% 4.0% (0.4%) Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Others WY Singapore 2% Deposit
Slide 15: Capital and Liquidity Management
Capital and Liquidity Management 16.7% 16.4% 16.7% Total Capital CET1 rose to 13.0% as at Sep-20 2.5% 2.4% 2.6% Tier 2 1.1% 1.1% 1.1% CET1 ratio remains comfortably above the Tier 1 target of >12% CET1 LCR remains comfortably above 100% for 13.1% 12.9% 13.0% all banking entities Sep-19 ^ Jun-20 ~ Se
Slide 16: Consumer Banking
Consumer Banking Personal Financing (RM 'mil) 9M20 Y-o-Y 3Q20 Q-o-Q 3% Others Credit Cards 2% 4% Net interest income 4,194 5.5% 1,500 22.1% Non interest income 1,179 (17.4%) 415 39.3% Auto 13% Gross Loans Operating income 5,373 (0.5%) 1,915 25.5% RM186.9 bil Overhead expenses (3,208) (3.8%) (1,053)
Slide 17: Commercial Banking
Commercial Banking Others ^ (RM 'mil) 9M20 Y-o-Y * 3Q20 Q-o-Q Singapore 3% 9% Net interest income 2,046 2.6% 677 (1.2%) Thailand Non interest income 404 (29.1%) 130 7.4% 6% Gross Loans Operating income 2,450 (4.5%) 807 0.1% RM63.8 bil 0.9% Malaysia Overhead expenses (1,296) (3.8%) (427) 0.7% 56% Ind
Slide 18: Wholesale Banking
Wholesale Banking Others (RM 'mil) 9M20 Y-o-Y 3Q20 Q-o-Q 4%^ Singapore Net interest income 2,541 11.3% 875 1.7% 15% Non interest income 935 (31.9%) 428 22.3% Thailand Gross Loans Operating income 3,476 (4.9%) 1,303 7.7% 9% RM102.4bil Malaysia Overhead expenses 1.8% 53% (1,535) (11.5%) (490) (1.6%) I
Slide 19: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding (RM 'mil) 9M20 Y-o-Y ^ 3Q20 Q-o-Q Total Registered Users Annual Active Users (mil) (mil) Net interest income 593 (44.1%) 176 9.3% +37.6% Q-o-Q +51.4% Q-o-Q Non interest income 581 (1.5%) 264 63.0% 10.6 15.0 Operating income 1,174 (28.8%) 440 36.2% 10.9 7.0 Overhea
Slide 20: CIMB Islamic
CIMB Islamic Islamic Financing (RM 'mil) 9M20 Y-o-Y^ 3Q20 Q-o-Q (RM 'bil) +7.2% Y-o-Y +2.1% Q-o-Q Net financing income 1,632 (1.6%) 640 57.2% 96.8 Non financing income 355 (5.8%) 129 76.7% 94.8 Operating income 1,987 (2.4%) 769 60.2% 90.3 Overhead expenses (759) 19.7% (233) (13.1%) PPOP 1,228 (12.4%
Slide 21: 02 Other Updates
[#]02 Other Updates 21
Slide 22: Strategic Plan Recalibration
Strategic Plan Recalibration 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 wholesale Accelerate profitable Reset cost base Strengthen Pr
Slide 23: Covid-19 – Focus Areas
Covid-19 – Focus Areas Customers Enhanced Risk Management 3-month relief for unemployed individuals and Maintain intensified asset quality 6-month reduction of monthly repayment for monitoring given the challenging individuals affected by decline of income environment Extension of existing relief pr
Slide 24: 03 Final Remarks
[#]03 Final Remarks 24
Slide 25: Final Remarks
Final Remarks 9M20 performance impacted by elevated credit FY20 impairments, MEF and overlay adjustments and 9M20 FY20 Target Guidance modification loss The Group is developing detailed execution ROTCE 3.4% 4.0% - 5.0% 10.8% - 11.3% programmes in line with the recently finalised Forward23+ strategy
Slide 26: 04 Appendices
[#]04 Appendices 26
Slide 27: Earnings Summary
Earnings Summary 9M19 (RM ’mil) 9M20 Y-o-Y 3Q20 2Q20 Q-o-Q BAU^ Net interest income 9,374 9,313 0.7% 3,228 2,934 10.0% Non interest income 3,099 3,960 (21.7%) 1,237 931 32.9% Operating income 12,473 13,273 (6.0%) 4,465 3,865 15.5% Overhead expenses (6,648) (7,033) (5.5%) (2,205) (2,125) 3.8% PPOP 5,
Slide 28: NOII breakdown
NOII breakdown (RM ’mil) 9M20 9M19 Y-o-Y 3Q20 2Q20 Q-o-Q Fee & commission 1,434 1,808 (20.7%) 488 381 28.1% Brokerage 2 67 (97.0%) (6) 6 (200.0%) Asset management and security services 17 18 (5.6%) 7 5 40.0% Trading & FX 1,448 1,548 (6.5%) 662 449 47.4% Dividend income 52 57 (8.8%) 25 18 38.9% Other
Slide 29: Key Ratios
Key Ratios 9M19 (%) 9M20 Y-o-Y 3Q20 2Q20 Q-o-Q BAU^ ROE ~ 2.3 9.7 1.4 2.0 NIM ~** 2.30 2.47 2.31 2.15 Non-interest income / total income 24.8 29.8 27.7 24.1 Cost to income 53.3 53.0 49.4 55.0 Allowance coverage (including regulatory reserve) 93.9 94.8 93.9 81.9 Allowance coverage (excluding regulato
Slide 30: PBT by Segments
PBT by Segments 9M19 (RM ’mil) 9M20 Y-o-Y 3Q20 2Q20 Q-o-Q BAU^* Consumer Banking (54.4%) 742 1,292 (42.6%) 297 (82) 462.2% Commercial Banking (-6.7%) (92) 1,375 (106.7%) (127) 120 (205.8%) Wholesale Banking (10.7%) 146 1,509 (90.3%) 102 (31) 429.0% Corporate Banking (-28.2%) (385) 1,009 (138.2%) (25
Slide 31: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 9M20 9M19 Y-o-Y 3Q20 2Q20 Q-o-Q Malaysia (RM ’mil) 424 725 (41.5%) 143 (58) 346.6% Indonesia (IDR ’bil) 610 1,014 (39.8%) 374 (87) 529.9% Thailand (THB ’mil) 1124 1,385 (18.8%) 395 355 11.3% Singapore (SGD ’mil) (14) 18 (177.8%) (6) (18) 66.7% Others * (RM
Slide 32: 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 4.6% 3.0% Consumer Gross Loans 3.9% 1.8% Mortgages 9.6% 2.9% Mortgages 7.9% 2.1% Term loans (5.2%) 1.9% Auto 6.9% 3.8% Auto 6.5% 6.5% Credit cards (4.5%) 1.4% Credit cards (13.8%) - Consumer Deposits 6.0%
Slide 33: CIMB Niaga: Earnings Summary
CIMB Niaga : Earnings Summary Before GAAP Adjustments\ 9M20 9M19 Y-o-Y 3Q20 2Q20 Q-o-Q (IDR 'bil) Net interest income 9,258 9,472 (2.3%) 5,089 3,135 (2.5%) Non interest income 3,023 3,213 (5.9%) (2,033) 951 (3.2%) Operating income 12,281 12,685 (3.2%) 3,056 4,086 (2.7%) Overhead expenses (6,035) (6,
Slide 34: CIMB Niaga: Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 9M20 9M19^ Y-o-Y 3Q20 2Q20 Q-o-Q ROE ^ 6.2 9.5 1.2 6.9 NIM ^ 4.9 5.4 4.7 5.1 Cost to Income 49.1 48.3 51.6 48.2 Loan Loss Coverage # 163.4 111.9 163.4 111.9 Allowance Coverage 125.4 93.3 125.4 117.7 Loan Loss Charge ^ 2.6 1.79 3.2 3.0 Gross Impaired Loans Ra
Slide 35: CIMB Thai: Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 9M20 9M19 Y-o-Y 3Q20 2Q20 Q-o-Q (THB 'mil) Net interest income 8,349.9 8,551.4 -2.4% 2,595.5 2,924.0 -11.2% Non interest income 3,154.2 2,142.7 47.2% 980.3 762.4 28.6% Operating income 11,504.1 10,694.1 7.6% 3,575.7 3,686.4 -3.0% Overhead expenses
Slide 36: CIMB Thai: Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 9M20 9M19 Y-o-Y 3Q20 2Q20 Q-o-Q ROE ^ 4.7 3.4 0.8 3.0 NIM ^ 3.3 3.5 3.1 3.3 Cost to Income 60.1 64.9 61.6 61.1 Loan Loss Coverage ** 86.6 98.0 86.6 83.7 Loan Loss Charge ^ 1.6 1.4 2.1 1.7 Gross NPL ratio ** 5.9 4.6 5.9 5.8 ROA 0.5 0.3 0.1 0.3 Loan to Deposit
Slide 37: Corporate Responsibility
Corporate Responsibility CSR Spend as at September 2020 Health & Well - Being Health & Well - Being 16% 1% CIMB Non-CIMB Education Education Foundation Community Foundation * Community 50% 41% RM 5.2 mil Development RM 15.8 mil Development 58% 34% Food aid for Covid-19 Pandemic #SOLIDLAWANCOVID – Fu
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