Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — Q2 2022 Earnings Presentation
42 slides from Cimb Group Holdings Bhd's earnings presentation, Aug 30, 2022
Slide 1: Analyst Presentation 2Q22 Results
Analyst Presentation 2Q22 Results CIMB Group Holdings 30 Aug 2022 FORWARD Your Ambitions 1
Slide 2: 01 Overview
01 Overview 2
Slide 3: Key Highlights
Key Highlights Stronger 2Q22 topline from Positive loan growth Continued CIR improvement both NII and NOII momentum from stringent cost controls 1H22 LLC better than target despite 1H22 core net profit on track with core higher 2Q22 provisions ROE of 10.4% 3.1% QoQ operating income growth from loan
Slide 4: Key Business/Operational Highlights
Key Business/Operational Highlights Improved operating income QoQ and YoY despite Loan loss charge better than target despite 2Q22 provision challenging capital markets increase QoQ (RM 'mil) 0.74% +3.1% QoQ +2.7% YoY 0.49% 0.41% Loan Loss 0.34% 9,623 Charge 1,409 4,886 9,374 4,737 Total 482 906 NII
Slide 5: PBT By Segment
PBT By Segment CIMB Digital Assets & Stronger Consumer performance underpinned by Group Funding robust loan growth and lower provisions 8% Commercial improved YoY and weaker QoQ mainly Consumer due to provision writebacks in Singapore in 1Q22 1H22 Banking Wholesale continues to improve on the back o
Slide 6: PBT By Country
PBT By Country Others Malaysia PBT improved YoY from lower Consumer Singapore and Corporate provisions but was -1.5% QoQ from -0.1% 10% flat operating income and higher opex mainly from Thailand personnel and technology 8% Indonesia PBT strengthened YoY from strong 1H22 trading income and lower prov
Slide 7: Operating Income
Operating Income NII +3.8% YoY from strong loan growth (RM 'mil) 2Q22 Q-o-Q 1H22 Y-o-Y despite NIM contraction from Indonesia and Thailand, whereas QoQ +3.6% from Net interest income 3,675 3.6% 7,224 3.8% improved NIM in Indonesia NOII fell 0.7% YoY from weaker trading Non interest income 1,211 1.9%
Slide 8: Operating Expenses
Operating Expenses 2Q22 1H22 Despite rising marketing expenses and (RM 'mil) Q-o-Q Y-o-Y BAU BAU planned technology investments, strong cost controls resulted in opex Personnel 1,384 1.9% 2,742 2.1% increasing by only 1.7% YoY and 1.0% Establishment 191 (1.5%) 385 (11.2%) QoQ Technology 386 6.6% 747
Slide 9: Total Provisions
Total Provisions 1H21 ECL increased QoQ from prudential MEF and (RM 'mil) 2Q22 1Q22 Q-o-Q 1H22 Y-o-Y overlays, while declined sharply YoY from BAU^ lower Covid-19 and legacy related provisions Loan Impairment 456 287 58.9% 743 1,368 (45.7%) and writebacks in Singapore Commitment & Decline in commitm
Slide 10: Loan Provisions/ECL
Loan Provisions/ECL 58.9% Q-o-Q -45.7% Y-o-Y 2Q22 loan provisions +58.9% from higher MEF & overlays and the absence of RM 'mil 1,368 writebacks from 1Q22 MEF & Overlay 99 456 1H22 ECL -45.7% YoY from writebacks from 287 292 Covid-19 related Commercial Singapore, lower Covid-19 83 132 Underlying 743
Slide 11: Asset Quality & Moratorium
Asset Quality & Moratorium Gross Loans Bonds Total exposure to Covid-19 impacted Covid-19 Impacted Sectors sectors remains relatively stable Sectors 30 Jun-22 30 Jun-22 Malaysia Consumer Moratorium and Hospitality 1.2% 0.2% R&R fell to 2% as at 30 Jun-22 from Retail 2.1% 0.1% 4% at end Apr-22 Aviati
Slide 12: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 30 Jun-22 Q-o-Q Y-o-Y Consumer Banking 207.1 2.0% 8.4% 88.7% 87.8% 87.2% Commercial Banking 64.1 2.1% 5.1% 85.8% 84.5% Wholesale Banking 123.1 3.5% 5.1% Total 394.3 2.5% 6.8% Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 ~ Others Loan Growth by Country (Y-o-Y) Singa
Slide 13: Deposits
Deposits CASA Ratio (RM 'bil) 30 Jun-22 Q-o-Q Y-o-Y Consumer Banking 179.4 1.8% 3.9% 43.5% 42.5% 42.3% Commercial Banking 78.5 1.0% 8.9% 41.6% 41.5% Wholesale Banking 186.4 (0.4%) 6.2% Total Deposits 444.3 0.7% 5.7% Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Total CASA 187.8 (2.0%) 7.3% WY Others Deposit Gr
Slide 14: Capital and Liquidity Management
Capital and Liquidity Management 18.3% 17.8% CET1 40bps lower QoQ to 14.1% Total Capital 17.5% from higher credit RWA utilisation, Tier 2 3.0% 2.8% 2.8% FVOCI reserve losses and lower 1.0% 0.9% 0.8% Tier 1 corresponding DRS electable. On a CET1 YoY basis, CET1 improved by 60bps 13.5% 14.5% 14.1% CET
Slide 15: Consumer Banking
Consumer Banking (RM 'mil) 2Q22 Q-o-Q 1H22 Y-o-Y Personal Financing Others 3% Net interest income 1,632 2.4% 3,226 4.7% Credit Cards 3% 4% Non interest income 548 6.0% 1,065 4.7% Auto 12% Gross Loans Operating income 2,180 3.3% 4,291 4.7% RM207.1 bil Overhead expenses (1,132) 4.7% (2,213) 0.5% Term
Slide 16: Commercial Banking
Commercial Banking (RM 'mil) 2Q22 Q-o-Q 1H22 Y-o-Y Others 5% Singapore 7% Net interest income 748 4.2% 1,466 2.4% Thailand Non interest income 171 3.6% 336 15.1% 2% Gross Loans Operating income 919 4.1% 1,802 4.5% RM64.1 bil Indonesia 5.1% Malaysia Overhead expenses (409) (8.3%) (855) (2.5%) 25% 61%
Slide 17: Wholesale Banking
Wholesale Banking (RM 'mil) 2Q22 Q-o-Q 1H22 Y-o-Y Others Singapore 1% Net interest income 963 3.2% 1,896 3.8% 17% Non interest income 426 (5.3%) 876 (0.7%) Thailand Gross Loans Operating income 1,389 0.4% 2,772 2.4% 8% RM123.1 bil Malaysia Overhead expenses (533) 3.1% (1,050) 6.0% 5.1% 54% PPOP 856
Slide 18: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding 2Q22 1H22 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 331 8.9% 635 2.6% +11.2% Y-o-Y -15.2% Y-o-Y Non interest income 65 18.2% 120 (46.9%) 17.9 10.5 Operating income 396 10.3% 75
Slide 19: CIMB Islamic
CIMB Islamic 2Q22 1H22 Islamic Financing (RM ‘mil) Q-o-Q Y-o-Y (RM 'bil) BAU BAU Net financing income 820 2.9% 1,617 10.4% +4.6% Q-o-Q +15.7% Y-o-Y Non financing income 102 (15.0%) 222 (6.3%) 114.0 Operating income 922 0.5% 1,839 8.0% 109.0 Overhead expenses (269) (18.8%) (601) 3.8% 98.5 PPOP 653 11
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: Updated Focus Areas for 2022
Updated Focus Areas for 2022 21
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% Jun-22 32%▼ 10%▼ 43% = 15%
Slide 23: Structured Cost Take-out
Structured Cost Take-out Evolution Analysis Total Cost RM’mil FY21 Annualised 1H22 Impact Decrease in cost Cost Base(1) Increase in cost (45) (20) (55) (200) (38) (21) (611) 9,386 8,775 8,938 (45) (30) (55) (200) (80) (24) 8,748 Annualised Impact of RM434mil 8,938 FY19A Cost FY20A Cost BAU FY21A SG
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 1H21 1H22 YoY Country FY22 2021 1H22 Digital Transactions Target 292 308 5.2% (‘mil)(1) CIMB Clicks Clicks 99.
Slide 25: Sustainability
Sustainability Mobilised RM30 bil in Green, RM10.7 mil of Social & Sustainable Impact CSR investment Products & Services disbursed across (GSSIPS). Exceeded RM30 bil the region in 1H22 target set 2Q22 • Entered into MoU with Bursa Malaysia to accelerate the adoption of ESG practices among Malaysian
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 Positive 1H22 performance driven by higher FY24 topline and lower provisions. Muted 2Q22 net profit 1H22 FY22 FY22 Forward23 growth as we took a prudent view on MEF and BAU Guidance Targets + Ambition overlays ROE * Deriving benefits of our diversification efforts 9.1% 8.0-9.0% 7.5-8.0
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) 2Q22 1Q22 1H22 2Q21 1Q21 1H21 PBT BAU 2,157 2,101 4,258 1,835 1,788 3,623 Gain on deconsolidation Touch ‘n Go Digital - - - 1,156 1,156 Gain / Loss on dilution of interest on disposal of associates - - - - - Transformational / Restructuring cost (6) (6) (12) (17) (46) (63
Slide 30: Earnings Summary
Earnings Summary 2Q22 1Q22 1H22 1H21 2Q21 (RM ’mil) Q-o-Q Y-o-Y Y-o-Y BAU^ BAU^ BAU^ BAU^ BAU^ Net interest income 3,675 3,549 3.6% 7,224 6,958 3.8% 3,538 3.9% Non interest income 1,211 1,188 1.9% 2,399 2,416 (0.7%) 1,083 11.8% Operating income 4,886 4,737 3.1% 9,623 9,374 2.7% 4,621 5.7% Overhead e
Slide 31: Key Ratios
Key Ratios 2Q22 1Q22 1H22 1H21 2Q21 (%) Q-o-Q Y-o-Y Y-o-Y BAU^ BAU^ BAU^ BAU^ BAU^ ROE ~ 10.3 10.5 ▼ 10.4 9.1 ▲ 8.8 ▲ Reported ROE 8.5 9.6 ▼ 9.1 10.8 ▼ 8.5 = NIM ~* 2.47 2.45 ▲ 2.46 2.50 ▼ 2.51 ▼ Non-interest income / total income 24.8 25.1 ▼ 24.9 25.8 ▼ 23.4 ▲ Cost to income 46.0 47.0 ▼ 46.5 46.9 ▼
Slide 32: NOII breakdown
NOII breakdown 1H21 (RM ’mil) 2Q22 1Q22 Q-o-Q 1H22 Y-o-Y BAU^ Fee & commission 657 625 5.4% 1,282 1,192 7.6% Brokerage 1 0 25.0% 1 1 (10.0%) Asset management and security services 8 6 37.9% 14 17 (18.8%) Trading & FX 415 494 (16.0%) 909 1,086 (16.3%) Dividend income 21 11 81.6% 32 35 (8.3%) Other in
Slide 33: PBT by Segments
PBT by Segments 1Q22 1Q22 1H22 1H21 PBT (RM ’mil) Q-o-Q Y-o-Y BAU^ BAU^ BAU^ BAU^ Consumer Banking (34.8%) 762 720 5.8% 1,482 1,170 26.7% Commercial Banking (18.2%) 328 445 (26.3%) 773 599 29.0% Wholesale Banking (39.0%) 887 773 14.7% 1,660 1,299 27.8% Corporate Banking (20.9%) 602 288 109.0% 890 45
Slide 34: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 2Q22 1Q22 Q-o-Q 1H22 1H21 Y-o-Y Malaysia (RM ’mil) 473 494 (4.3%) 967 953 1.5% Indonesia (IDR ’bil) 465 340 36.8% 805 272 196.0% Thailand (THB ’mil) 728 658 10.6% 1,386 590 134.9% Singapore (SGD ’mil) 14 11 27.3% 25 17 47.1% Others * (RM ’mil) 14 9 55.6% 2
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 6.3% 1.3% Consumer Gross Loans 13.8% 3.0% Mortgages 7.6% 1.5% Mortgages 8.5% 1.5% Term loans 3.7% 0.3% Auto 51.7% 8.3% Auto 3.6% 1.7% Credit cards 5.9% 2.9% Credit cards 15.9% 4.1% Consumer Deposits 5.4%
Slide 36: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Loan Exposure: Borrowers Status: 2.6% of total Group gross loans Impaired 36% Thailand Singapore 5% Normal 15% 63% Watch List (M & H) 1% Indonesia 4% Segmental Exposure: Oil Traders Upstream Malaysia 8% 10% 76% As at Jun-22, the O&G impairment ratio stood at 35.9% Downstream
Slide 37: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 2Q22 1Q22 Q-o-Q 1H22 1H21 Y-o-Y Net interest income 3,329 3,209 3.7% 6,538 6,538 0.0% Non interest income 1,455 1,590 (8.5%) 3,045 2,489 22.3% Operating income 4,783 4,799 (0.3%) 9,583 9,027 6.2% Overhead expenses* (2,078) (2,104) (1.2%) (4,182) (4,030) 3.8%
Slide 38: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 2Q22 1Q22 Q-o-Q 1H22 1H21 Y-o-Y ROE ^* 13.7 11.8 ▲ 12.8 11.3 ▲ NIM ^ 4.63 4.46 ▲ 4.54 5.08 ▼ Cost to Income* 43.4 43.8 ▼ 43.6 44.6 ▼ Loan Loss Coverage # 215.0 210.8 ▲ 215.0 223.5 ▼ Allowance Coverage 115.3 111.5 ▲ 115.3 110.2 ▲ Loan Loss Charge ^ 1.7 2.4 ▼
Slide 39: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 1Q22 1Q22 Q-o-Q 1H22 1H21 Y-o-Y (THB 'mil) Net interest income 2,354 2,311 1.8% 4,665 5,082 (8.2%) Non interest income 1,268 1,173 8.1% 2,441 2,202 10.8% Operating income 3,622 3,484 3.9% 7,106 7,284 (2.4%) Overhead expenses (1,965) (1,789) 9.8% (
Slide 40: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 2Q22 1Q22 Q-o-Q 1H22 1H21 Y-o-Y ROE ^ 9.6 9.8 ▼ 9.7 4.6 ▲ NIM ^ 2.7 2.8 ▼ 2.7 3.1 ▼ Cost to Income 54.3 51.4 ▲ 52.8 56.7 ▼ Loan Loss Coverage ** 114.3 111.9 ▲ 114.3 101.3 ▲ Loan Loss Charge ^ 1.2 0.7 ▲ 0.7 1.8 ▼ Gross NPL ratio ** 3.3 3.8 ▼ 3.3 4.8 ▼ ROA 1.0
Slide 41: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 1H22 1H21 1H22 1H21 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 21.4% 2 20.5% 2 DCM 7.6% 7 8.7% 4 Sukuk 22.9% 2 22.2% 2 M&A - - - - M&A 17.3% 4 - - Syndication ^ 4.0% 8 5.5% 3 Syndication ^ 18.9% 1 19.1% 2 IPO 2.7% 6 2.2% 10 IP
Slide 42: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 1H22 1H21 1H22 1H21 Asia ASEAN Market Market Market Market Rank Rank (ex-Japan) * Rank Rank Share Share Share Share DCM 9.9% 1 11.1% 1 DCM - - 0.6% 43 M&A 0.9% 20 - - M&A 0.2% 47 - - Syndication ^ 5.7% 6 4.0% 8 Syndication ^ 0.9% 25 0.4% 50 IPO 6.1% 5 3.1% 12 IPO 0.8%
CIMB Group Holdings Berhad — Q2 2022 Earnings Presentation on 6ix