Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — Q1 2022 Earnings Presentation
42 slides from Cimb Group Holdings Bhd's earnings presentation, May 31, 2022
Slide 1: Analyst Presentation 1Q22 Results
Analyst Presentation 1Q22 Results CIMB Group Holdings 31 May 2022 FORWARD Your Ambitions 1
Slide 2: Overview
01 Overview 2
Slide 3: Key Highlights
Key Highlights Higher topline QoQ driven by Sustained loan CIR improvement to 47.0% stronger trading income growth momentum from continued cost controls Significantly lower 1Q22 LLC of 34bps Strong core net profit growth from benign asset quality and writebacks underscored 1Q22 core ROE of 10.5% NII
Slide 4: Key Business/Operational Highlights
Key Business/Operational Highlights Operating income higher QoQ from NOII; Flattish YoY Lower provisions from writebacks, reduced overlays and (RM 'mil) provisions on other receivables +2.9% QoQ -0.3% YoY 0.81% 0.84% Loan Loss 4,737 4,753 4,737 Charge 0.34% 4,604 1,148 NII 3,549 3,420 3,549 Total 3,
Slide 5: PBT By Segment
PBT By Segment CIMB Digital Assets & Strong performance by Consumer in 1Q22 from loan Group Funding growth, well controlled opex and markedly lower provisions 8% Commercial improvement mainly due to provision Consumer writebacks in Singapore Banking 1Q22 Robust Wholesale performance on the back of s
Slide 6: PBT By Country
PBT By Country Malaysia PBT +111.6% QoQ driven by strong PPOP Singapore Others growth and lower Consumer and Corporate 10% -1% provisions while YoY PBT was flat due to lower NOII Thailand Indonesia PBT improved QoQ and YoY from higher 8% 1Q22 trading and lower Corporate provisions Group PBT Thailand
Slide 7: Operating Income
Operating Income NII +0.2% QoQ from 4bps NIM (RM 'mil) 1Q22 Q-o-Q Y-o-Y improvement mainly in Malaysia. +3.8% YoY NII growth driven by good loan Net interest income 3,549 0.2% 3.8% growth although NIM declined 3bps largely attributed to Indonesia Non interest income 1,188 11.9% (10.9%) NOII grew by
Slide 8: Operating Expenses
Operating Expenses 1Q22 Opex -6.3% QoQ due to lower (RM 'mil) Q-o-Q Y-o-Y BAU^ expenses from year-end seasonal expenses in 4Q21, offset by higher Personnel 1,358 0.7% (1.1%) Technology costs Establishment 194 (17.1%) (11.4%) Opex flattish at -0.8% YoY with Technology 362 5.5% 13.7% Technology contin
Slide 9: Total Provisions
Total Provisions Total ECL significantly lower QoQ and YoY (RM 'mil) 1Q22 4Q21 Q-o-Q 1Q21 Y-o-Y mainly due to reduced credit related impairment, overlays and covid-19 related Loan Impairment 287 717 (60.0%) 716 (59.9%) provisions Commitment & Contingencies 33 68 (51.5%) 23 43.5% Commitments & contin
Slide 10: Loan Provisions/ECL
Loan Provisions/ECL -60.0% Q-o-Q Loan provisions QoQ and YoY from: 1) partial writeback of MEF & overlays; 2) lower credit- RM 'mil -59.9% Y-o-Y related provisions in Indonesia and MEF & Overlay 716 717 writebacks from Commercial Singapore; 3) Covid-19 related 20 lower Covid-19 provisions in Malaysi
Slide 11: Asset Quality & Moratorium
Asset Quality & Moratorium Gross Loans Bonds Continuation of Group wide R&R Covid-19 Impacted Sectors approach across all segments and Sectors 31 Mar-22 31 Mar-22 countries Hospitality 1.2% 0.0% Malaysia Consumer Moratorium and Retail 2.1% 0.1% R&R fell to 4% at end Apr-22 from 30% at end Jan-22 due
Slide 12: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 31 Mar-22 Q-o-Q Y-o-Y 88.9% Consumer Banking 203.0 1.8% 6.9% 87.8% 87.2% 85.8% Commercial Banking 62.8 1.5% 2.4% 84.5% Wholesale Banking 118.9 2.0% 3.0% Total 384.7 1.8% 4.9% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 ~ Loan Growth by Country (Y-o-Y) Others Singa
Slide 13: Deposits
Deposits CASA Ratio (RM 'bil) 31 Mar-22 Q-o-Q Y-o-Y 43.5% Consumer Banking 176.2 0.2% 1.0% 42.3% 42.5% Commercial Banking 77.7 2.2% 10.1% 41.6% 41.5% Wholesale Banking 187.2 (0.7%) 11.9% Total Deposits 441.1 0.2% 7.0% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Total CASA 191.8 2.6% 9.9% WY Deposit Growth by
Slide 14: Capital and Liquidity Management
Capital and Liquidity Management Total Capital 18.3% 18.3% 17.1% CET1 remains stable at 14.5% as at Tier 2 2.9% 2.9% end Mar-21; 160bps higher YoY 2.9% 0.9% 0.9% Tier 1 1.3% DRS take-up rate at 84.5% for FY21 CET1 second interim dividend 12.9% 14.5% 14.5% CET1 ratio remains comfortably above the tar
Slide 15: Consumer Banking
Consumer Banking Personal (RM 'mil) 1Q22 Q-o-Q Y-o-Y Financing Others Credit Cards 2% 3% Net interest income 1,594 3.8% 4.3% 4% Auto Non interest income 517 3.4% (8.8%) 12% Gross Loans Operating income 2,111 3.7% 0.8% RM203.0 bil Overhead expenses (1,081) (7.1%) (3.5%) Term 6.9% Mortgages Loans 61%
Slide 16: Commercial Banking
Commercial Banking (RM 'mil) 1Q22 Q-o-Q Y-o-Y Others Singapore 4% 7% Net interest income 718 (2.8%) 1.4% Thailand Non interest income 165 (1.8%) 12.2% 3% Gross Loans Operating income 883 (2.6%) 3.3% RM62.8 bil Indonesia 2.4% Malaysia Overhead expenses (446) (2.6%) 0.2% 25% 61% PPOP 437 (2.7%) 6.6% (
Slide 17: Wholesale Banking
Wholesale Banking (RM 'mil) 1Q22 Q-o-Q Y-o-Y Others 1% Singapore Net interest income 933 (2.3%) 3.6% 17% Non interest income 450 56.3% (8.5%) Thailand Gross Loans Operating income 1,383 11.3% (0.7%) 8% RM118.9 bil Malaysia Overhead expenses (517) (4.1%) 2.4% 3.0% 55% PPOP 866 23.0% (2.5%) Indonesia
Slide 18: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding 1Q22 Touch ‘n Go Digital (RM ‘mil) Q-o-Q Y-o-Y Total Registered Users Annual Transacting BAU* (mil) Users (mil) Net interest income 304 (2.9%) 7.0% +11.6% Y-o-Y -19.0% Y-o-Y Non interest income 55 (48.6%) (56.7%) 17.3 Operating income 359 (14.5%) (12.7%) 10.0 8.1
Slide 19: CIMB Islamic
CIMB Islamic 1Q22 Islamic Financing (RM ‘mil) Q-o-Q Y-o-Y (RM 'bil) BAU* Net financing income 797 1.9% 10.8% +3.4% Q-o-Q +9.5% Y-o-Y Non financing income 120 14.3% (10.4%) 109.0 105.4 Operating income 917 3.4% 7.5% Overhead expenses (332) 37.8% 17.2% 99.5 PPOP 585 (9.4%) 2.7% (Provisions) / Writebac
Slide 20: 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 Increased allocation in Group Funding due to the increase in bonds while continue to derisk Commercial CDA and Group Year Consumer Commercial Wholesale Funding Dec-19 33% 11% 43% 12% Mar-22 33% = 10% 42% 15% Loan Growth (YoY) Initiatives / Comments Mar-22 Dec-21 Dec-20 D
Slide 23: Structured Cost Take-out
Structured Cost Take-out Evolution Analysis Total Cost RM’mil Cumulative 2021 & 2022 Impact Decrease in cost Increase in cost FY21 Cost Base(1) (195) (45) (20) (55) (200) (38) 8,938 (45) (30) (55) (200) (80) 8,748 Annualised Impact of RM410mil 8,938 9,175 FY19A Cost FY20A Cost BAU Spend FY21A SG TH
Slide 24: Digital Reliability/Customer Centricity
Digital Reliability/Customer Centricity Metrics tracking well with digital transactions increasing Clicks & Bizchannel Technology & Operational Investments Digital % Availability Technology Capex (RM’mil) 1Q21 1Q22 YoY Country FY22 2021 1Q22 Planned Digital Transactions Target 143 146 2.6% 1,200 (‘m
Slide 25: Sustainability
Sustainability 1Q22 Highlights Published Sustainability Report for Recognised at the Alpha Mobilised RM25.9 bil in FY2021 Southeast Asia’s 15th Green, Social & the first Task Force on Climate-related Annual Best Deal and Sustainable Impact Financial Disclosures (TCFD) aligned Solution Awards 2021 on
Slide 26: 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 We had a strong 1Q22 performance on the back of FY24 good QoQ topline growth, sustained cost control 1Q22 FY22 Forward23+ and significantly lower provisions BAU Targets Ambition As at 1Q22, all key targets were met or exceeded ROE 9.6% 7.5-8.0% We are optimistic for the rest of 2022 on
Slide 28: 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) 1Q22 1Q21 4Q21 PBT BAU 2,101 1,788 1,083 Gain on deconsolidation Touch ‘n Go Digital - 1,156 - Gain / Loss on dilution of interest on disposal of associates - - (17) Transformational / Restructuring cost (6) (46) (7) Intangible assets write off and accelerated amortisatio
Slide 30: Earnings Summary
Earnings Summary 1Q22 4Q21 1Q21 (RM ’mil) Q-o-Q Y-o-Y BAU^ BAU^ BAU^ Net interest income 3,549 3,542 0.2% 3,420 3.8% Non interest income 1,188 1,062 11.9% 1,333 (10.9%) Operating income 4,737 4,604 2.9% 4,753 (0.3%) Overhead expenses (2,225) (2,374) (6.3%) (2,244) (0.8%) PPOP 2,512 2,230 12.6% 2,509
Slide 31: NOII breakdown
NOII breakdown 4Q21 1Q21 (RM ’mil) 1Q22 Q-o-Q Y-o-Y BAU^ BAU^ Fee & commission 625 639 (2.2%) 650 (3.8%) Brokerage 0 1 (100.0%) 1 (100.0%) Asset management and security services 6 7 (14.3%) 9 (33.3%) Trading & FX 494 333 48.3% 622 (20.6%) Dividend income 11 10 10.0% 15 (26.7%) Other income 52 72 (27
Slide 32: Key Ratios
Key Ratios 1Q22 4Q21 1Q21 (%) Q-o-Q Y-o-Y BAU^ BAU^ BAU ROE ~ 10.5 5.5 ▲ 9.4 ▲ NIM ~* 2.45 2.41 ▲ 2.48 ▼ Non-interest income / total income 25.1 23.1 ▲ 28.0 ▼ Cost to income 47.0 51.6 ▼ 47.2 ▼ Allowance coverage (including regulatory reserve) 104.3 101.2 ▲ 102.9 ▲ Allowance coverage (excluding regul
Slide 33: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Loan Exposure: Borrowers Status: 2.3% of total Group Impaired gross loans 43% Normal Thailand 55% 7% Watch List (M & H) Singapore 2% 16% Indonesia 1% Malaysia Segmental Exposure: 76% Upstream Oil Traders 9% 10% As at Mar-22, the O&G impairment ratio stood at 42.4% Midstream
Slide 34: PBT by Segments
PBT by Segments 1Q22 4Q21 1Q21 PBT (RM ’mil) Q-o-Q Y-o-Y BAU^ BAU^ BAU^ Consumer Banking (34.3%) 720 260 176.9% 615 17.1% Commercial Banking (21.2%) 445 342 30.1% 293 51.9% Wholesale Banking (36.8%) 773 321 140.8% 623 24.1% Corporate Banking (13.7%) 288 (10) >1000.0% 202 42.6% Treasury & Markets ~ (
Slide 35: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 1Q22 4Q21 Q-o-Q 1Q21 Y-o-Y Malaysia (RM ’mil) 494 117 322.2% 557 (11.3%) Indonesia (IDR ’bil) 340 28 >1000.0% (66) 615.2% Thailand (THB ’mil) 658 1,249 (47.3%) 330 99.4% Singapore (SGD ’mil) 11 (12) 191.7% 6 83.3% Others * (RM ’mil) 9 11 (18.2%) 15 (40.0%)
Slide 36: 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 5.3% 1.1% Consumer Gross Loans 12.4% 3.7% Mortgages 7.5% 2.0% Mortgages 9.2% 1.8% Term loans 3.1% (0.6%) Auto 48.8% 17.1% Auto 1.2% 1.2% Credit cards (1.2%) (0.5%) Credit cards 4.3% (2.0%) Consumer Deposi
Slide 37: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 1Q22 4Q21* Q-o-Q 1Q21 Y-o-Y Net interest income 3,209 3,201 0.3% 3,269 (1.8%) Non interest income 1,590 1,042 52.6% 1,300 22.3% Operating income 4,799 4,242 13.1% 4,569 5.0% Overhead expenses* (2,104) (2,029) 3.7% (2,012) 4.6% PPOP* 2,695 2,213 21.8% 2,557 5.
Slide 38: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 1Q22 4Q21 Q-o-Q 1Q21 Y-o-Y ROE ^* 11.8 9.7 ▲ 10.5 ▲ NIM ^ 4.46 4.47 ▼ 5.12 ▼ Cost to Income* 43.8 47.8 ▼ 44.0 ▼ Loan Loss Coverage # 210.8 212.1 ▼ 194.9 ▲ Allowance Coverage 111.5 108.6 ▲ 115.2 ▼ Loan Loss Charge ^ 2.4 2.1 ▲ 3.0 ▼ Gross Impaired Loans Ratio
Slide 39: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 1Q22 4Q21 Q-o-Q 1Q21 Y-o-Y (THB 'mil) Net interest income 2,311 2,385 (3.1%) 2,464 (6.2%) Non interest income 1,173 1,079 8.7% 1,047 12.1% Operating income 3,484 3,464 0.6% 3,511 (0.8%) Overhead expenses (1,789) (2,110) (15.2%) (2,081) (14.0%) PPO
Slide 40: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 1Q22 4Q21 Q-o-Q 1Q21 Y-o-Y ROE ^ 9.8 6.8 ▲ 3.3 ▲ NIM ^ 2.8 2.9 ▼ 3.1 ▼ Cost to Income 51.4 60.9 ▼ 59.3 ▼ Loan Loss Coverage ** 111.9 117.5 ▼ 98.9 ▲ Loan Loss Charge ^ 0.7 1.1 ▼ 1.8 ▼ Gross NPL ratio ** 3.8 3.7 ▼ 4.8 ▼ ROA 0.3 0.7 ▼ 0.1 ▲ Loan to Deposit 98.0
Slide 41: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 1Q22 1Q21 1Q22 1Q21 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 17.2% 3 18.8% 2 DCM 7.9% 6 4.3% 10 Sukuk 16.8% 2 24.9% 2 M&A - - - - M&A 18.1% 4 - - Syndication ^ 14.2% 2 5.7% 4 Syndication ^ 8.9% 6 38.6% 1 IPO 2.9% 6 0.7% 18 I
Slide 42: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 1Q22 1Q21 1Q22 1Q21 Market Market ASEAN Market Market Rank Rank Rank Rank Share Share Share Share M&A - - - - DCM 10.5% 1 11.7% 1 Syndication ^ - - - - M&A 1.5% 15 - - IPO - - - - Syndication ^ 8.0% 4 4.2% 7 ECM - - - - IPO 6.9% 5 1.4% 23 ECM 7.9% 4 3.2% 12 1Q22 1Q21
CIMB Group Holdings Berhad — Q1 2022 Earnings Presentation on 6ix