Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — 2Q24 Earnings Presentation
42 slides from Cimb Group Holdings Bhd's earnings presentation, Aug 30, 2024
Slide 1: Analyst Presentation 2Q24 Results
Analyst Presentation 2Q24 Results CIMB Group Holdings 30 August 2024 FORWARD Your Ambitions 1
Slide 2: 01 Overview
01 Overview <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 2
Slide 3: Key Highlights
Key Highlights Two consecutive Sustained Robust NOII Sustained CIR Asset quality ROE at 11.4%; quarters of NIM loan growth and growth of 13.2% improvement as we remains robust; CET1 optimised to expansion; +7bps stable CASA ratio YoY continue investing loan loss coverage 14.5% from in 1H24 in techno
Slide 4: Key Business Highlights
Key Business Highlights Strong revenue growth from both NII and NOII YoY Continued CIR improvement (RM ‘mil) (RM 'mil) QoQ YoY 46.0% 45.6% -0.5% Q-o-Q +8.7% Y-o-Y Malaysia -0.8% +12.8% CIR 11,231 10,331 5,629 5,602 Indonesia -5.9% -6.3% 11,231 Operating Income 10,331 +8.7% 7,651 JAWS 7,168 Thailand
Slide 5: PBT By Segment
PBT By Segment CIMB Digital Assets & Strong 2Q24 Consumer performance underpinned by all Group Funding business lines, translating to the robust 1H24 improvement 14% Consumer Commercial PBT was 27.3% lower QoQ due to weaker NOII Banking and higher provisions 28% 1H24 Wholesale PBT +8.6% QoQ from NII
Slide 6: PBT By Country
PBT By Country Others Good 1H24 Malaysia PBT driven by the stronger economy, Singapore 1% robust capital markets NOII and NIM improvement from lower 15% COF Thailand Robust Singapore performance underpinned by a strong 4% 1H24 economy as the country continued to enjoy excess liquidity as a Group PBT
Slide 7: Operating Income
Operating Income NII +1.8% QoQ driven by 4bps NIM expansion (RM 'mil) 2Q24 Q-o-Q 1H24 Y-o-Y as cost of deposits continues to improve and 0.6% loan growth; +6.7% YoY underpinned by Net interest income 3,859 1.8% 7,651 6.7% asset growth NOII -5.1% QoQ from lower capital markets and Non interest income
Slide 8: Operating Expenses
Operating Expenses Opex +0.8% QoQ attributed to higher (RM 'mil) 2Q24 Q-o-Q 1H24 Y-o-Y Technology and A&G costs Personnel 1,570 <0.1% 3,140 8.6% 1H24 opex was 7.9% higher YoY from increase in most line items except Establishment cost Establishment 191 (6.8%) 396 (5.7%) Technology 451 7.1% 872 9.4% C
Slide 9: Total Provisions
Total Provisions Total provisions improved 40.6% QoQ (RM 'mil) 2Q24 1Q24 Q-o-Q 1H24 1H23 Y-o-Y mainly from writebacks and recoveries in Singapore and lower Malaysia Loan Impairment 316 404 (21.8%) 720 864 (16.7%) Consumer. Provisions declined 8.9% Commitment & YoY mainly from lower Corporate ECL (95
Slide 10: Asset Quality
Asset Quality Loan Loss Charge (bps) * 151 LLC was 15bps lower QoQ due to Singapore writebacks and 39 31 35 73 continued improving asset quality 21 20 45 51 32 28 Gross Impaired Loans Ratio (%) GIL declined 10bps QoQ mainly 3.6 3.5 due to Thailand 3.3 3.2 3.1 3.3 Continue to focus on various 2.7 2.6
Slide 11: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 30 Jun-24 Q-o-Q Y-o-Y Consumer Banking 232.5 0.6% 5.3% 89.1% 73.2 1.1% 5.8% 88.6% Commercial Banking 88.1% 87.8% 87.4% Wholesale Banking 136.4 0.2% 1.3% CIMB Digital Assets and Others 2.7 3.8% 22.7% Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Total 444.8 0.6% 4.2%
Slide 12: Deposits
Deposits CASA Ratio (RM 'bil) 30 Jun-24 Q-o-Q Y-o-Y Consumer Banking 225.5 (0.1%) 8.0% 41.2% 40.9% 40.8% Commercial Banking 91.4 (0.3%) 3.6% 39.2% Wholesale Banking 177.0 (4.6%) (4.1%) 38.5% CIMB Digital Assets and Others 5.4 86.2% 8.0% Total Deposits 499.3 (1.3%) 2.7% Jun-23 Sep-23 Dec-23 Mar-24 Ju
Slide 13: Dividend Payout
Dividend Payout Dividend per share Total dividend Dividend per (sen) Period payout share (RM’mil) (sen) 1st Interim ^ 2nd Interim 43.00 FY19 2,553 26.00 Special Dividend 7.00 27.00 FY20 477 4.81 26.00 26.00 22.99 18.50 7.00 FY21 2,328 22.99 12.00 13.00 12.55 4.81 17.50 20.00 FY22 2,748 26.00 14.00 1
Slide 14: Capital and Liquidity Management
Capital and Liquidity Management 17.8% 18.6% 18.2% CET1 stood at 14.5% as end Jun-24, Total Capital 3.0% 50bps lower QoQ, but 30bps higher Tier 2 2.8% 3.1% 0.8% 0.6% 0.6% YoY Tier 1 CET1 The QoQ decrease is mainly due to 14.2% 15.0% 14.5% the proposed FY24 first interim dividends and special dividen
Slide 15: Consumer Banking
Consumer Banking Personal (RM 'mil) 2Q24 Q-o-Q 1H24 Y-o-Y Financing Others 3% 3% Credit Cards Net interest income 1,770 3.0% 3,489 8.7% 4% Non interest income 588 0.3% 1,174 13.8% Auto 13% Gross Loans Operating income 2,358 2.3% 4,663 10.0% RM232.5 bil Term 5.3% Overhead expenses (1,287) (0.6%) (2,5
Slide 16: Commercial Banking
Commercial Banking (RM 'mil) 2Q24 Q-o-Q 1H24 Y-o-Y Others Singapore 4% 8% Net interest income 823 0.4% 1,643 3.0% Thailand Non interest income 194 (3.0%) 394 1.5% 1% Indonesia Gross Loans Operating income 1,017 (0.3%) 2,037 2.7% 24% RM73.2 bil Overhead expenses (511) 0.4% (1,020) 9.1% 5.8% Malaysia
Slide 17: Wholesale Banking
Wholesale Banking (RM 'mil) 2Q24 Q-o-Q 1H24 Y-o-Y Others 1% Singapore Net interest income 698 5.1% 1,362 (3.3%) 21% Non interest income 866 (10.1%) 1,829 17.1% Thailand Gross Loans Malaysia Operating income 1,564 (3.9%) 3,191 7.4% 8% RM136.4 bil 50% Overhead expenses (619) 3.3% (1,218) 6.8% 1.3% PPO
Slide 18: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding Touch ‘n Go Digital (RM 'mil) 2Q24 Q-o-Q 1H24 Y-o-Y Total Registered Users Annual Transacting (mil) Users (mil) Net interest income 568 (3.6%) 1,157 21.2% +35.0% Y-o-Y +64.4% Y-o-Y Non interest income 95 8.0% 183 1.1% 27.8 17.1 Operating income 663 (2.1%) 1,340 18
Slide 19: CIMB Digital Businesses
CIMB Digital Businesses Improvement to Group ROE CIMB Philippines Revenue (bps) (PHP ‘mil) 61 bps 19 577.4 16 12 349.0 10 234.5 4 76.8 10.1 10.7 2020 2021 2022 2023 1H24 2019 2020 2021 2022 2023 1H24 The narrowing of CDA losses have cumulatively contributed 61bps to the Group’s ROE expansion since 2
Slide 20: CIMB Islamic
CIMB Islamic Islamic Financing (RM ‘mil) 2Q24 Q-o-Q 1H24 Y-o-Y (RM ‘bil) +1.6% Q-o-Q +12.9% Y-o-Y Net financing income 975 13.8% 1,832 17.9% Non financing income 184 (6.6%) 381 5.5% 146.8 149.2 132.2 Operating income 1,159 10.0% 2,213 15.6% Overhead expenses (361) 3.4% (710) (0.6%) PPOP 798 13.2% 1,
Slide 21: 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> 21 21
Slide 22: Forward23+ Strategic Plan
Forward23+ Strategic Plan 22
Slide 23: Realising Forward23+ ambitions
Realising Forward23+ ambitions On track to meet our Forward23+ ambitions Key Group Forward23+ Shareholder Value Creation Actual Metrics Ambition Annualised FBM CIMB 2020 2021 2022 2023 1H24 2024 TSR (%)* KLCI BAU BAU 11.4% 1H24 +45.4% +18.7% 8.1% 10.2% 10.7% ROE 2.1% Top Quartile 11.5-12.5% 1Y +49.9
Slide 24: Asset Composition and Growth
Asset Composition and Growth Growth momentum continued to improve in core focus segments Country Year Consumer Commercial Wholesale Dec-19 59% 14% 27% Malaysia 1% ▲ 2% ▲ 3% ▼ Jun-24 60% 16% 24% Dec-19 25% 14% 61% Singapore 8% ▲ 3% ▼ 5% ▼ Jun-24 33% 11% 56% Dec-19 27% 35% 38% Indonesia 6% ▲ 6% ▼ 2% ▲
Slide 25: Digital Reliability/Customer Centricity
Digital Reliability/Customer Centricity Platform availability maintained above target in 1H24 Committed to Clicks & Bizchannel Digital Platform Incidences strengthening % Availability resiliency and No. Unscheduled maintaining Country Malaysia Downtimes FY20 FY21 FY22 FY23 1H24 FY24 uptime Target FY
Slide 26: TSR and ROE Journey and Trajectory
TSR and ROE Journey and Trajectory 10 bps 11.0 - 11.5 - 11.4% 11.5% 12.5% 8.5% 2019 2019 Portfolio Opex ECL ECL Capital Capital NIM NIM 1Q24 Drivers 2024 Portfolio Opex 1H24 Drivers 2024 Original ROEROE Reported Reshaping Reshaping Optimisation Optimisation Reduction Reduction Accumulation & Compres
Slide 27: Sustainability Updates
Sustainability Updates Climate Action Sustainable Business Corporate Citizenship CIMB expects to disburse about First Malaysian bank to complete Mobilised RM13.5 billion in Green, RM42 million for CSR initiatives and 2030 decarbonisation target setting Social, and Sustainable Impact Zakat contributi
Slide 28: 03 Final Remarks
03 Final Remarks <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 28 28
Slide 29: Final Remarks
Final Remarks We continue to benefit from our diversified ASEAN FY24 FY24 portfolio, serving all client segments 1H24 Target Guidance Focused on meeting Forward23+ targets which completes this year end, while being vigilant and ROE* 11.4% 11.0-11.5% 11.0-11.5% responsive to current market trends We
Slide 30: 04 Appendices
04 Appendices <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only>
Slide 31: Earnings Summary
Earnings Summary (RM ’mil) 2Q24 1Q24 Q-o-Q 1H24 1H23 Y-o-Y 2Q23 Y-o-Y Net interest income 3,859 3,792 1.8% 7,651 7,168 6.7% 3,646 5.8% Non interest income 1,743 1,837 (5.1%) 3,580 3,163 13.2% 1,688 3.3% Operating income 5,602 5,629 (0.5%) 11,231 10,331 8.7% 5,334 5.0% Overhead expenses (2,573) (2,55
Slide 32: Key Ratios
Key Ratios (%) 2Q24 1Q24 Q-o-Q 1H24 1H23 Y-o-Y 2Q23 Y-o-Y ROE ~ 11.5 11.4 ▲ 11.4 10.6 ▲ 10.7 ▲ NIM ~* 2.22 2.18 ▲ 2.20 2.25 ▼ 2.24 ▼ Non-interest income / total income 31.1 32.6 ▼ 31.9 30.6 ▲ 31.6 ▼ Cost to income 45.9 45.3 ▲ 45.6 46.0 ▼ 45.1 ▲ Allowance coverage (including regulatory 116.6 111.3 ▲
Slide 33: NOII breakdown
NOII breakdown (RM ’mil) 2Q24 1Q24 Q-o-Q 1H24 1H23 Y-o-Y Fee & commission 713 677 5.3% 1,390 1,222 13.7% Brokerage 11 8 37.5% 19 0 100.0% Asset management and security services 5 5 0.0% 10 11 (9.1%) Trading & FX 911 996 (8.5%) 1,907 1,586 20.2% Dividend income 72 9 700.0% 81 37 118.9% Other income 3
Slide 34: PBT by Segments
PBT by Segments PBT (RM ’mil) 2Q24 1Q24 Q-o-Q 1H24 1H23 Y-o-Y Consumer Banking (27.7%) 838 629 33.2% 1,467 1,369 7.2% Commercial Banking (18.7%) 418 575 (27.3%) 993 971 2.3% Wholesale Banking (39.0%) 1,077 992 8.6% 2,069 1,573 31.5% Corporate Banking (22.9%) 639 578 10.6% 1,217 880 38.3% Treasury &
Slide 35: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 2Q24 1Q24 Q-o-Q 1H24 1H23 Y-o-Y Malaysia (RM ’mil) 524 371 41.2% 895 945 (5.3%) Indonesia (IDR ’bil) 910 690 31.9% 1,600 1,053 51.9% Thailand (THB ’mil) (161) 31 (619.4%) (130) 388 (133.5%) Singapore (SGD ’mil) 17 10 70.0% 27 13 107.7% Others * (RM ’mil) 9
Slide 36: Consumer Banking Key Highlights
Consumer Banking Key Highlights Malaysia Q-o-Q Y-o-Y Indonesia ^ Q-o-Q Y-o-Y Consumer Gross Loans 1.1% 6.3% Consumer Gross Loans 0.7% 5.8% Mortgages 1.5% 8.4% Mortgages (0.1%) 1.4% Term loans (3.2%) (17.9%) Auto 0.4% 13.1% Auto 1.0% 9.7% Credit cards 3.7% 8.1% Credit cards 0.8% 8.3% Consumer Deposit
Slide 37: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 2Q24 1Q24 Q-o-Q 1H24 1H23 Y-o-Y Net interest income 3,371 3,285 2.6% 6,655 6,835 (2.6%) Non interest income 1,414 1,515 (6.7%) 2,929 3,184 (8.0%) Operating income 4,785 4,800 (0.3%) 9,584 10,019 (4.3%) Overhead expenses (2,074) (2,135) (2.9%) (4,209) (4,337)
Slide 38: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 2Q24 1Q24 Q-o-Q 1H24 1H23 Y-o-Y ROE ^ 15.2 14.4 ▲ 14.8 15.4 ▲ NIM ^ 4.22 4.20 ▲ 4.21 4.61 ▼ Cost to Income 43.3 44.5 ▼ 43.9 43.3 ▲ Loan Loss Coverage # 253.1 257.4 ▼ 253.1 261.9 ▲ Allowance Coverage 113.4 113.5 ▲ 113.4 110.7 ▲ Loan Loss Charge ^ 0.96 0.82 ▲
Slide 39: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 2Q24 1Q24 Q-o-Q 1H24 1H23 Y-o-Y (THB 'mil) Net interest income 2,442 2,317 4.5% 4,739 4,879 (2.9%) Non interest income 1,091 1,189 (8.2%) 2,299 2,278 0.9% Operating income 3,513 3,506 0.2% 7,038 7,157 (1.7%) Overhead expenses (2,152) (2,192) (1.8%
Slide 40: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 2Q24 1Q24 Q-o-Q 1H24 1H23 Y-o-Y ROE ^ 5.6 5.3 ▲ 5.4 5.9 ▲ NIM ^ 2.3 2.2 ▲ 2.2 2.7 ▼ Cost to Income 61.3 62.5 ▼ 62.0 56.6 ▲ Loan Loss Coverage ** 129.1 121.3 ▲ 129.1 122.1 ▲ Loan Loss Charge ^ 0.9 0.8 ▲ 0.9 1.1 ▼ Gross NPL ratio ** 2.9 3.4 ▲ 2.9 3.1 ▼ ROA 0.5
Slide 41: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 1H24 1H23 1H24 1H23 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 27.6% 2 24.5% 1 DCM 4.3% 8 8.8% 5 Sukuk 27.4% 2 25.1% 1 M&A - - - - M&A 31.3% 3 42.4% 1 Syndication ^ 2.6% 11 2.0% 12 Syndication ^ 9.3% 5 12.4% 3 IPO - - - - IPO
Slide 42: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 1H24 1H23 1H24 1H23 ASEAN Market Market Global Market Market Rank Rank Rank Rank Share Share Share Share DCM 11.0% 1 12.7% 1 Sukuk 3.5% 10 7.6% 1 M&A 6.0% 13 4.0% 12 Syndication ^ 1.8% 15 1.8% 15 IPO 4.3% 9 2.0% 14 ECM 12.2% 2 4.5% 8 Sources: Dealogic, Bloomberg, Loca
CIMB Group Holdings Berhad — 2Q24 Earnings Presentation on 6ix