Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — Q1 2024 Earnings Presentation
41 slides from Cimb Group Holdings Bhd's earnings presentation, May 31, 2024
Slide 1: Analyst Presentation 1Q24 Results
Analyst Presentation 1Q24 Results CIMB Group Holdings 31 May 2024 FORWARD Your Ambitions 1
Slide 2: 01 Overview
01 Overview 2 2
Slide 3: Key Highlights
Key Highlights Strong topline Sustained Improved CIR Continued Robust 1Q24 net growth deposit and CASA despite inflationary improvement in profit growth with YoY and QoQ growth pressures asset quality ROE at 11.4% indicators Operating income +4.7% QoQ and 12.6% YoY from higher Opex was 2.8% lower Qo
Slide 4: Key Business Highlights
Key Business Highlights Strong revenue growth from both NII and NOII Improving CIR with positive JAW (RM ‘mil) (RM 'mil) QoQ YoY 48.8% +4.7% Q-o-Q +12.6% Y-o-Y 45.3% Malaysia +1.9% +15.7% CIR 5,375 5,629 4,997 Indonesia +10.7% +0.7% +4.7% 5,629 Operating Income 5,375 JAW 3,522 3,701 3,792 Thailand +
Slide 5: PBT By Segment
PBT By Segment CIMB Digital Assets & Softer Consumer PBT performance attributed to higher opex Group Funding and provisions due to overlay writeback in the prior year 14% Consumer Banking Commercial PBT +9.1% YoY and +9.3% QoQ mainly driven by 24% lower provisions 1Q24 Group PBT Wholesale PBT expand
Slide 6: PBT By Country
PBT By Country Others Strong Malaysia performance driven by robust topline growth, Singapore 1% 11% partially offset by increased opex and Consumer provisions Thailand Indonesia PBT grew 14.3% YoY on the back of reduced opex 3% and lower Consumer and Wholesale provisions; PBT +1.1% 1Q24 QoQ largely
Slide 7: Operating Income
Operating Income NII +2.5% QoQ from 3bps NIM expansion (RM 'mil) 1Q24 Q-o-Q Y-o-Y underpinned by lower cost of deposits in Malaysia and improved Indonesia loan yield; Net interest income 3,792 2.5% 7.7% while +7.7% YoY from strong loan and securities growth despite a 8bps NIM contraction Non interes
Slide 8: Operating Expenses
Operating Expenses Opex declined 2.8% QoQ given the absence of (RM 'mil) 1Q24 Q-o-Q Y-o-Y year-end expenses accruals The 8.9% YoY increase was attributed to higher Personnel 1,570 0.3% 12.5% Personnel and Marketing cost from the impact of Establishment 205 3.5% (1.0%) inflation and FX. Investment in
Slide 9: Total Provisions
Total Provisions Total provisions increased 26.1% QoQ (RM 'mil) 1Q24 4Q23 Q-o-Q 1Q23 Y-o-Y and 13.0% YoY mainly from higher ECL in Consumer Loan Impairment 404 373 8.3% 306 32.0% Commitments & contingencies higher Commitment & Contingencies (14) (34) 58.8% 78 (117.9%) QoQ from lower writebacks in Wh
Slide 10: Asset Quality
Asset Quality Loan Loss Charge (bps) * 151 LLC was 4bps higher QoQ due to increased loan provisions from 37 39 31 35 73 Malaysia and Indonesia 21 45 51 32 35 Gross Impaired Loans Ratio (%) GIL declined 10bps QoQ mainly 3.6 3.5 due to Malaysia and Indonesia 3.1 3.3 3.2 3.3 3.2 To double down on these
Slide 11: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 31 Mar-24 Q-o-Q Y-o-Y Consumer Banking 231.2 0.6% 7.1% 88.6% Commercial Banking 72.4 1.4% 8.5% 88.3% 88.1% 87.8% 136.1 (0.9%) 5.8% 87.4% Wholesale Banking CIMB Digital Assets and Others 2.6 8.3% 30.0% Total 442.3 0.3% 7.0% Mar-23 Jun-23 Sep-23 Dec-23 Mar-
Slide 12: Deposits
Deposits CASA Ratio (RM 'bil) 31 Mar-24 Q-o-Q Y-o-Y 41.2% 40.8% Consumer Banking 225.8 2.8% 12.3% 39.2% 37.8% 38.5% Commercial Banking 91.7 0.4% 8.4% 34.4% Wholesale Banking 185.5 1.7% 5.0% CIMB Digital Assets and Others 2.9 (34.1%) (46.3%) Total Deposits 505.9 1.6% 8.2% Dec-19 Mar-23 Jun-23 Sep-23
Slide 13: Capital and Liquidity Management
Capital and Liquidity Management 18.2% 18.7% CET1 increased 50bps QoQ and Total Capital 18.0% 3.1% 70bps YoY to 15.0% as at Mar-24 Tier 2 2.9% 3.1% 0.8% 0.6% 0.6% Tier 1 The QoQ improvement is largely due CET1 to the inclusion of 1Q24 PAT and 14.3% 14.5% 15.0% FVOCI gains LCR remains comfortably abo
Slide 14: Consumer Banking
Consumer Banking Personal (RM 'mil) 1Q24 Q-o-Q Y-o-Y Financing Others 3% 3% Credit Cards Net interest income 1,719 4.8% 9.4% 4% Non interest income 586 1.7% 9.9% Auto 13% Gross Loans Operating income 2,305 4.0% 9.6% RM231.2 bil Term 7.1% Overhead expenses (1,300) 2.2% 9.7% Loans Mortgages 14% 63% PP
Slide 15: Commercial Banking
Commercial Banking (RM 'mil) 1Q24 Q-o-Q Y-o-Y Others Singapore 4% 8% Net interest income 819 0.2% 3.3% Thailand Non interest income 200 (6.1%) (4.3%) 1% Indonesia Gross Loans Operating income 1,019 (1.1%) 1.7% 24% RM72.4 bil 8.5% Malaysia Overhead expenses (497) (4.8%) 8.5% 63% PPOP 522 2.8% (4.0%)
Slide 16: Wholesale Banking
Wholesale Banking (RM 'mil) 1Q24 Q-o-Q Y-o-Y Others Singapore 1% Net interest income 667 (5.1%) (10.5%) 20% Non interest income 963 30.8% 43.3% Thailand Gross Loans Operating income 1,630 13.3% 15.0% 8% RM136.1 bil Malaysia 52% 5.8% Overhead expenses (600) (2.8%) 7.7% PPOP 1,030 25.3% 19.8% Indonesi
Slide 17: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding Touch ‘n Go Digital (RM 'mil) 1Q24 Q-o-Q Y-o-Y Total Registered Users Annual Transacting (mil) Users (mil) Net interest income 587 8.5% 42.1% +40.4% Y-o-Y +74.7% Y-o-Y Non interest income 88 (40.9%) 44.3% 27.1 16.6 Operating income 675 (2.2%) 42.4% Overhead expens
Slide 18: CIMB Digital Businesses
CIMB Digital Businesses Uplift to Group ROE CIMB Philippines Revenue (bps) (PHP ‘mil) 60 bps 19 577.4 16 12 9 234.5 4 168.4 76.8 10.7 2020 2021 2022 2023 1Q24 2020 2021 2022 2023 1Q24 Narrowing CDA losses have cumulatively contributed 60bps to the Group’s ROE expansion since 2020 Improvement attribu
Slide 19: CIMB Islamic
CIMB Islamic Islamic Financing (RM ‘mil) 1Q24 Q-o-Q Y-o-Y (RM ‘bil) +2.4% Q-o-Q +14.2% Y-o-Y Net financing income 857 (0.1%) 17.4% Non financing income 197 2.1% 5.9% 143.3 146.8 Operating income 1,054 0.3% 15.1% 128.5 Overhead expenses (349) 6.1% (7.9%) PPOP 705 (2.4%) 31.3% (Provisions) / Writeback
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: Forward23+ Strategic Plan
Forward23+ Strategic Plan 21
Slide 22: Realising Forward23+ ambitions
Realising Forward23+ ambitions On track to meet our Forward23+ ambitions, save for CIR being challenged Key Group Forward23+ Shareholder Value Creation Actual Metrics Ambition Annualised FBM CIMB 2020 2021 2022 2023 1Q24 2024 TSR (%)* KLCI BAU BAU 11.4% 3M24 +75.9% +22.4% 8.1% 10.2% 10.7% ROE 2.1% T
Slide 23: 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% Mar-24 31%▼ 10%▼ 42% ▼ 17%
Slide 24: Digital Reliability/Customer Centricity
Digital Reliability/Customer Centricity Platform availability maintains above target in 1Q24 Committed to Clicks & Bizchannel Digital Platform Incidences strengthening resiliency and % Availability No. Unscheduled maintaining Country Malaysia Downtimes FY24 uptime FY20 FY21 FY22 FY23 1Q24 FY20 FY21
Slide 25: TSR and ROE Journey and Trajectory
TSR and ROE Journey and Trajectory 10 bps 11.4% 11.0 - 11.5 - 8.5% 11.5% 12.5% 2019 2019 Portfolio Portfolio Opex Opex ECL ECL Capital Capital NIM NIM 1Q24 1Q24 Drivers Drivers 20242024 Guidance Original F23+ Original ROE ROE Reported Reshaping Reshaping Optimisation Optimisation Reduction Reduction
Slide 26: Sustainability Updates
Sustainability Updates Sustainable Business Publications Awards • Introduced SMEBizReady in Malaysia Published the Sustainability Report • Won three awards at The Asset Triple A to foster growth for SMEs through 2023. Key highlights: Awards: digitalisation, technology, and sustainability • CIMB Inve
Slide 27: 03 Final Remarks
03 Final Remarks <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 27
Slide 28: Final Remarks
Final Remarks Positive start to the year underscored by robust topline FY24 FY24 expansion, reflecting NIM recovery strategy, good 1Q24 Guidance Target CASA growth as well as sustained lower provisions The Group maintains a cautious outlook for the year given the global economic headwinds with uncer
Slide 29: 04 Appendices
04 Appendices <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only>
Slide 30: Earnings Summary
Earnings Summary (RM ’mil) 1Q24 4Q23 Q-o-Q 1Q23 Y-o-Y Net interest income 3,792 3,701 2.5% 3,522 7.7% Non interest income 1,837 1,674 9.7% 1,475 24.5% Operating income 5,629 5,375 4.7% 4,997 12.6% Overhead expenses (2,552) (2,625) (2.8%) (2,343) 8.9% PPOP 3,077 2,750 11.9% 2,654 15.9% Loan impairmen
Slide 31: Key Ratios
Key Ratios (%) 1Q24 4Q23 Q-o-Q 1Q23 Y-o-Y ROE ~ 11.4 10.1 ▲ 10.3 ▲ NIM ~* 2.18 2.15 ▲ 2.26 ▼ Non-interest income / total income 32.6 31.2 ▲ 29.5 ▲ Cost to income 45.3 48.8 ▼ 46.9 ▼ Allowance coverage (including regulatory reserve) 111.3 106.3 ▲ 98.3 ▲ Allowance coverage (excluding regulatory reserve
Slide 32: NOII breakdown
NOII breakdown (RM ’mil) 1Q24 4Q23 Q-o-Q 1Q23 Y-o-Y Fee & commission 653 754 (13.4%) 606 7.8% Brokerage 31 - 100.0% 7 342.9% Asset management and security services 5 9 (44.4%) 5 - Trading & FX 996 797 25.0% 745 33.7% Dividend income 9 13 (30.8%) 7 28.6% Other income 143 101 41.6% 105 36.2% Total 1,8
Slide 33: PBT by Segments
PBT by Segments PBT (RM ’mil) 1Q24 4Q23 Q-o-Q 1Q23 Y-o-Y Consumer Banking (24.3%) 624 643 (3.0%) 696 (10.3%) Commercial Banking (22.8%) 586 536 9.3% 537 9.1% Wholesale Banking (38.6%) 994 799 24.4% 709 40.2% Corporate Banking (22.5%) 579 406 42.6% 348 66.4% Treasury & Markets ~ (15.1%) 388 365 6.3%
Slide 34: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 1Q24 4Q23 Q-o-Q 1Q23 Y-o-Y Malaysia (RM ’mil) 366 404 (9.4%) 484 (24.4%) Indonesia (IDR ’bil) 690 919 (24.9%) 598 15.4% Thailand (THB ’mil) 31 (781) 104.0% 205 (84.9%) Singapore (SGD ’mil) 10 15 (33.3%) 6 66.7% Others * (RM ’mil) 10 15 (33.3%) (6) 266.7% P
Slide 35: 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 0.9% 6.2% Consumer Gross Loans 1.4% 6.9% Mortgages 1.9% 8.7% Mortgages 0.5% 2.4% Term loans (10.2%) (20.2%) Auto 4.5% 15.8% Auto 2.4% 10.5% Credit cards 1.1% 3.6% Credit cards (1.4%) 10.6% Consumer Depo
Slide 36: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 1Q24 4Q23 Q-o-Q 1Q23 Y-o-Y Net interest income 3,285 3,165 3.8% 3,408 (3.6%) Non interest income 1,515 1,114 36.0% 1,576 (3.9%) Operating income 4,800 4,279 12.2% 4,984 (3.7%) Overhead expenses (2,135) (2,007) 6.4% (2,219) (3.8%) PPOP 2,665 2,271 17.3% 2,765
Slide 37: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 1Q24 4Q23 Q-o-Q 1Q23 Y-o-Y ROE ^ 14.4 13.9 ▲ 15.1 ▼ NIM ^ 4.20 4.05 ▲ 4.71 ▼ Cost to Income 44.5 46.9 ▼ 44.5 = Loan Loss Coverage # 257.4 292.1 ▼ 253.5 ▲ Allowance Coverage 113.5 110.0 ▲ 105.0 ▲ Loan Loss Charge ^ 0.82 0.54 ▲ 1.48 ▼ Gross Impaired Loans Rati
Slide 38: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 1Q24 4Q23 Q-o-Q 1Q23 Y-o-Y (THB 'mil) Net interest income 2,317 2,413 (4.0%) 2,346 (1.2%) Non interest income 1,189 1,037 14.7% 1,483 (19.8%) Operating income 3,506 3,450 1.6% 3,829 (8.4%) Overhead expenses (2,192) (2,383) (8.0%) (1,960) 11.8% PPO
Slide 39: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 1Q24 4Q23 Q-o-Q 1Q23 Y-o-Y ROE ^ 5.3 (1.1) ▲ 7.3 ▼ NIM ^ 2.2 2.4 ▼ 2.6 ▼ Cost to Income 62.5 69.1 ▼ 51.2 ▲ Loan Loss Coverage ** 121.3 124.2 ▼ 122.6 ▼ Loan Loss Charge ^ 0.8 1.9 ▼ 1.4 ▼ Gross NPL ratio ** 3.4 3.3 ▲ 3.1 ▲ ROA 0.5 (0.1) ▲ 0.7 ▼ Loan to Deposit
Slide 40: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 1Q24 1Q23 1Q24 1Q23 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 26.9% 2 27.5% 2 DCM 5.4% 8 9.2% 5 Sukuk 36.3% 1 31.7% 1 M&A - - - - M&A 36.0% 2 - - Syndication ^ 1.1% 12 1.3% 23 Syndication ^ 14.8% 4 - - IPO - - - - IPO 11.8% 2
Slide 41: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 1Q24 1Q23 1Q24 1Q23 ASEAN Market Market Global Market Market Rank Rank Rank Rank Share Share Share Share DCM 11.9% 2 13.5% 1 Sukuk 5.5% 6 8.4% 2 M&A 9.0% 10 1.5% 15 Syndication ^ 3.7% 9 0.3% 48 IPO 4.4% 5 0.2% 39 ECM 13.3% 2 3.9% 10 Sources: Dealogic, Bloomberg, Local