Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — FY2013 Earnings Presentation
79 slides from Cimb Group Holdings Bhd's earnings presentation, Feb 25, 2014
Slide 1: Analyst Presentation FY13 Results
Analyst Presentation FY13 Results 25 February 2014
Slide 2: Agenda
Agenda 1. Key Highlights 2. CIMB Group FY13 Financials 3. PBT by Segment 3.1 Regional Consumer Banking 3.2 Regional Wholesale Banking 3.3 Investments 4. Country Analysis 5. Other Highlights 6. 2014 Outlook & Financial Targets 7. Final Remarks 2
Slide 3: 1. Key Highlights
CIMB Group : FY13 Results 1. Key Highlights
Slide 4: FY13 in Summary
FY13 in Summary ROE of 15.5% vs 16.0% target Net profit up 4.5% Y-o-Y, but excluding gains from sale of Aviva and MSS charges, net profit declined 3.6% Y-o-Y Strong credit growth of 12.2% Y-o-Y (+15.5% excluding FOREX) but NIMs fell 22bps Y-o-Y Indonesia stalled, meager growth and 15% IDR/RM depreci
Slide 5: Key Financial Highlights (1)
Key Financial Highlights (1) Operating Income Net Profit +8.7% Y-o-Y +4.5% Y-o-Y FY13 FY13 FY12 FY12 RM14,672 mil RM4,540 mil RM13,495 mil RM4,345 mil ROE Cost to Income -50bps Y-o-Y +120bps Y-o-Y FY13 FY12 FY13 FY12 57.6% 16.0% 15.5% 56.4% 5
Slide 6: Key Financial Highlights (2)
Key Financial Highlights (2) Total Credit* Deposits +12.2% Y-o-Y +7.3% Y-o-Y FY13 FY13 FY12 FY12 RM271.1 bil RM265.4 bil RM241.6 bil RM247.3 bil Excluding FX fluctuations: +15.5% Y-o-Y Excluding FX fluctuations: +10.2% Y-o-Y NIM Gross Impaired Loans Ratio -22bps Y-o-Y -60bps Y-o-Y FY12 FY13 FY12 FY1
Slide 7: PBT By Division
PBT By Division 67% Contribution from Consumer and Corporate Banking FY13* FY12 Investment Investment Banking Banking Investments 4% Investments 6% 9% 9% Consumer Consumer Treasury & Banking Banking Markets 36% 41% 20% Treasury & Markets Corporate 26% Banking Corporate 26% Banking 23% FY13 PBT Y-o-Y
Slide 8: PBT By Country
PBT By Country Indonesia contribution declined FY13* FY12 Others Others Singapore Singapore 2% -1% 4% 3% Thailand Thailand 6% 4% Indonesia Indonesia Malaysia Malaysia 32% 59% 30% 61% FY13 PBT Y-o-Y Growth by Key Countries * ^ ** +1.9% -6.1% +40.3% +49.9% * Excluding HQ costs, gains from sale of CIMB
Slide 9: Operating Expenses Better Controlled
Operating Expenses Better Controlled Cost to Income Key Initiatives Implemented in 2013 for Cost Savings Stricter controls on human resource 56.4% 57.6% Increase productivity of sales staff Stricter discipline on procurement, especially IT 350bps 240bps Reduce branches 14.8% Reduce MarComm budget 11
Slide 10: IB: New APAC Force
IB: New APAC Force FY13 FY11 APAC (ex-Japan) * Market Market Rank Rank Share Share Cash Equities 3.1%~ 12~ 1.1% 16 IPO 3.2% 9 1.9% 14 ECM 2.5% 11 1.4% 17 Institutional Brokerage Income (Ex-ECM) RM ‘mil 2011 vs 2013 ASEAN +34.1% Ex-ASEAN +197.2% +32.7% CAGR +65.0% Y-o-Y 327.1 185.8 198.2 2011 2012 20
Slide 11: Dividend : 40% with DRS
Dividend : 40% with DRS 55% 41% 40% 40% Payout 36% Ratio 23% 26.08 22.00 23.38 23.82 19.83 18.50 Net Dividend Per Share (Sen) 2008 2009 2010 2011 2012 2013 Net Dividend Per Share Payout Ratio 11
Slide 12: Achievements vs Targets for 2013
Achievements vs Targets for 2013 FY13 Y-o-Y FY13 ROE 15.5% 16% TSR -10.1%>FBMKLCI > FBMKLCI Dividend 40% 40% Total Credit Growth * 12.2% (15.5%^) 15% Loan loss charge 0.28 < 0.4 Total Capital (CIMB Group) 13.7% > 11% CET 1 (CIMB Group) 8.0% > 8% Leverage (CIMB Group) 19.1x < 20x Notes:* Credit inclu
Slide 13: 2. CIMB Group FY13 Financials
CIMB Group : FY13 Results 2. CIMB Group FY13 Financials
Slide 14: Record Profits but Declining ROEs
Record Profits but Declining ROEs Average ROE from 2009 – 2013 15.8% Net profit CAGR from 2009 – 2013 13.0% 16.2% 16.4% 16.0% 15.5% 14.9% *RM ’mil 14.7 13.5 11.9 12.1 10.5 5.7 5.9 5.2 4.6 4.3 4.5 3.8 3.5 4.0 2.8 2009 2010 2011 2012 2013 Operating income* PBT* Net profit* ROE 14
Slide 15: Earnings Summary
Earnings Summary (RM ’mil) FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q Net interest income 9,391 8,791 6.8% 2,402 2,383 0.8% Non interest income 5,281 4,704 12.3% 1,395 1,102 26.6% Operating income 14,672 13,495 8.7% 3,797 3,485 9.0% Overhead expenses (8,458) (7,612) 11.1% (2,137) (2,059) 3.8% PPOP 6,214 5,883
Slide 16: Key Ratios
Key Ratios (%) FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q ROE ^ 15.5 16.0 13.8 14.1 NIM ^** 2.85 3.07 2.80 2.82 Non-interest income / total income 36.0 34.9 36.7 31.6 Cost to income 57.6 56.4 56.3 59.1 Allowance coverage 84.8 82.8 84.8 82.2 Allowance coverage after regulatory reserve # 108.3 97.6 108.3 103.4 L
Slide 17: Operating Expenses
Operating Expenses (RM ’mil) FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q Personnel 4,969 4,317 15.1% 1,324 1,234 7.3% Establishment 1,663 1,532 8.6% 430 392 9.7% Marketing 396 356 11.2% 103 100 3.0% Admin & General 1,430 1,407 1.6% 280 333 (15.9%) Total 8,458 7,612 11.1% 2,137 2,059 3.8% Total excluding One-off
Slide 18: Gross Loans and Credit Growth
Gross Loans and Credit Growth Loans by Country as at 31 Dec 13 # Divisions / Products (RM ‘bil) 31 Dec 13 31 Dec 12 Y-o-Y 30 Sep 13 Q-o-Q Others Retail Financial Services (50.5%) 116.8 103.1 13.3% 112.8 3.5% Singapore 2% 10% Mortgages 55.7 50.9 9.4% 54.3 2.6% Thailand 8% Term Loans 25.7 19.8 29.8% 2
Slide 19: Deposits Growth
Deposits Growth Deposits by Country as at 31 Dec 13 Divisions / Products (RM ‘bil) 31 Dec 13 31 Dec 12 Y-o-Y 30 Sep 13 Q-o-Q Others Singapore 4% Retail Financial Services (39.0%) 103.6 98.0 5.7% 103.7 (0.1%) 8% Current 17.8 14.9 19.5% 17.9 (0.6%) Thailand 6% Savings 28.7 27.7 3.6% 29.2 (1.7%) Indone
Slide 20: CASA Growth
CASA Growth CASA by Country as at 31 Dec 13 Country (RM ‘bil) 31 Dec 13 31 Dec 12 Y-o-Y 30 Sep 13 Q-o-Q Others Malaysia 55.7 53.0 5.1% 55.0 1.3% Singapore 1% 11% Indonesia * 19.5 20.9 (6.7%) 20.1 (3.0%) Thailand 5% Thailand 4.3 3.8 13.2% 4.7 (8.5%) Indonesia Malaysia Singapore 10.0 7.4 35.1% 10.9 (8
Slide 21: AFS (Q-o-Q) Position
AFS (Q-o-Q) Position 801.0 692.1 291.3 (15.6) (42.7) Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 21
Slide 22: Capital Management : CIMB Group
Capital Management : CIMB Group Minimum Regulatory Requirements 14.1% 14.1% 14.0% 13.7% ^ Total Capital 8.0% 10.1% 10.3% ^ 10.0% 9.7% Tier 1 4.5% 8.2% 8.4% 8.2% 8.0% ^ Core Equity Tier 1 3.5% Mar-13 Jun-13 Sep-13 Dec-13 Post-FY13 second interim dividend of 11 sen per share and assuming DRS take up r
Slide 23: 3. PBT by Segment
CIMB Group : FY13 Results 3. PBT by Segment
Slide 24: PBT by Segment (Estimated)
PBT by Segment (Estimated) PBT (RM ’mil) FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q Consumer Banking (39.0%) 2,285 2,055 11.2% 572 591 (3.2%) Malaysia (29.8%) 1,743 1,645 6.0% 421 443 (5.0%) Indonesia (8.1%) 536 418 28.2% 159 146 8.9% Thailand (-0.3%) (16) (3) (433.3%) (13) (2) (550.0%) Singapore (0.4%) 20 (1)
Slide 25: 3.1 Regional Consumer Banking
CIMB Group : FY13 Results 3.1 Regional Consumer Banking
Slide 26: Regional Consumer Key Statistics
Regional Consumer Key Statistics Number of Branches CIMB Clicks Users 2013 Branches = 1,057 (-23 Y-o-Y) 2013 CIMB Clicks = 3,513 (+21.5% Y-o-Y) -10 ‘000 +19.6% -14 590 580 2,680 2,240 +26.4% +1 324 310 +75.0% +50.0% 164 165 776 614 2 2 7 12 30 45 Malaysia * Indonesia Thailand Singapore Malaysia Indo
Slide 27: Malaysia : Consumer Gross Loans and Deposits
Malaysia : Consumer Gross Loans and Deposits Divisions / Products (RM ‘bil) 31 Dec 13 31 Dec 12 Y-o-Y 30 Sep 13 Q-o-Q Retail Financial Services (89.0%) 90.2 78.4 15.1% 86.2 4.6% Mortgages 42.4 38.4 10.4% 41.1 3.2% Term loans 23.0 18.0 27.8% 21.1 9.5% Auto 12.6 11.4 10.5% 12.4 1.6% Credit cards 4.3 3
Slide 28: Malaysia : Consumer Key Highlights (1)
Malaysia : Consumer Key Highlights (1) Dec-13 Dec-12 Mortgages – Loan Base Mkt Mkt RM ‘bil Rank* Rank +11.6% CAGR Share Share ASB Financing 26.3% 2 20.8% 3 +10.4% Y-o-Y 42.4 Retail CASA 12.0% 3 11.9% 3 38.4 Auto 7.7% 5 7.4% 5 35.4 32.1 Residential 12.6% 3 13.0% 3 27.3 Mortgages Non-Residential 10.8%
Slide 29: Malaysia : Consumer Key Highlights (2)
Malaysia : Consumer Key Highlights (2) Credit Cards Operating Leverage Improvement 11.6 12.5 12.8 13.9 9.0 11.6 12.5 12.8 13.9 9.0 9.8% CAGR 28.4% +10.3% Y-o-Y 4.2 4.3 4.0 3.9 4.3 4.0 4.2 3.9 3.0 3.0 7.7% 8.0% 2.6% -2.6% -6.7% Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Operating Income Overhead Expenses PPO
Slide 30: Indonesia : Consumer Gross Loans and Deposits
Indonesia : Consumer Gross Loans and Deposits Divisions / Products (IDR ’bil) 31 Dec 13 31 Dec 12 Y-o-Y 30 Sep 13 Q-o-Q Retail Financial Services (42.3%) 47,879 44,100 8.6% 47,971 (0.2%) Mortgage 22,409 20,664 8.4% 22,536 (0.6%) Auto 18,353 17,477 5.0% 18,695 (1.8%) Credit Cards 4,077 3,638 12.0% 3,
Slide 31: Indonesia : Consumer Key Highlights
Indonesia : Consumer Key Highlights Dec-13 ^ Dec-12 Consumer CASA Mkt Mkt IDR ‘tril Rank Rank Share Share +15.0% CAGR Deposits 4.6% 5 4.7% 5 +8.3% Y-o-Y 61.0 56.3 48.3 Mortgages 8.1% 5 9.5% 5 42.9 34.9 Credit Cards* 10.7% 4 10.3% 4 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Mortgages Credit Cards IDR ‘tril
Slide 32: Indonesia : Momentum in Digital Banking
Indonesia : Momentum in Digital Banking CIMB Clicks Rekening Ponsel 174.5 274.1 614.0 775.8 5.3 81 205.5 417.2 +80.7% CAGR >1000% 2,077.2 +25.8% Y-o-Y 106.7 84.8 50.3 516.8 18.1 175.3 15.0 2010 2011 2012 2013 Mar-13 Jun-13 Sep-13 Dec-13 No of Transactions ('mil) No of Users ('000) No of Transactions
Slide 33: Thailand : Consumer Gross Loans and Deposits
Thailand : Consumer Gross Loans and Deposits Divisions / Products (THB ‘bil) 31 Dec 13 31 Dec 12 Y-o-Y 30 Sep 13 Q-o-Q Retail Financial Services (61.3%) 68.8 48.4 42.1% 63.9 7.6% Mortgage 42.7 30.5 40.0% 39.9 6.9% Auto Loans 16.9 11.8 43.0% 15.3 10.4% Personal / Others 9.2 6.1 50.5% 8.7 5.8% Commerc
Slide 34: Thailand : Consumer Key Highlights
Thailand : Consumer Key Highlights Dec-13 Dec-12 Investment Products & Bancassurance Fee Income Mkt Mkt THB ‘mil Rank Rank +92.0 % CAGR Share Share 128.1% Y-o-Y Deposits* 1.5% 10 1.4% 11 730 Mortgages** 2.1% 9 1.8% 9 506 320 Auto* 0.8% 9 0.8% 8 198 279 187 224 11 41 SME Loans ^ 2.1% 7 2.0% 7 2011 20
Slide 35: Singapore : Consumer Gross Loans and Deposits
Singapore : Consumer Gross Loans and Deposits Gross Loans (SGD ’mil) 31 Dec 13 31 Dec 12 Y-o-Y 30 Sep 13 Q-o-Q Retail Financial Services (43.9%) 2,100 1,798 16.8% 1,985 5.8% Mortgages 1,463 1,388 5.4% 1,426 2.6% Term loans 158 154 2.6% 159 (0.6%) Credit cards 386 255 51.4% 344 12.2% Others 93 1 >100
Slide 36: Singapore : Consumer Key Highlights
Singapore : Consumer Key Highlights Consumer PBT Consumer Deposits SGD ‘mil SGD ‘mil +42.1% CAGR +ve CAGR +49.8% Q-o-Q +ve Y-o-Y 6,025 7.7 1,892 4,022 2.1 3,020 920 (5.7) (11.4) 2,203 351 (1.0) 1,479 196 2009 2010 2011 2012 2013 194 4,133 2,669 3,102 1,285 2,007 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Re
Slide 37: New Digital Frontier
New Digital Frontier CIMB Clicks Users New Digital Offerings ‘000 +24.8% CAGR +21.5% Y-o-Y Plug n Pay KWIK 3,513 2,891 2,254 Rekening Ponsel/OctoSend Bank-in-a-Briefcase (NASA) 2011 2012 2013 Malaysia Indonesia Thailand Singapore Geo-location Based Deals Instant Over the Phone Decisioning Enablers C
Slide 38: 3.2 Regional Wholesale Banking
CIMB Group : FY13 Results 3.2 Regional Wholesale Banking
Slide 39: Wholesale Banking
Wholesale Banking (RM ’mil) FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q Net interest income 2,956 2,884 2.5% 735 755 (2.8%) Non interest income 2,195 2,493 (12.0%) 650 490 32.7% Operating income 5,151 5,377 (4.2%) 1,385 1,245 11.2% Overhead expenses (2,254) (2,105) 7.1% (574) (576) (0.4%) PPOP 2,897 3,272 (11.5
Slide 40: Wholesale Banking : Investment Banking
Wholesale Banking : Investment Banking (RM ’mil) FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q Net interest income 97 73 32.9% 26 22 18.2% Non interest income 1,039 1,136 (8.5%) 249 237 5.1% Operating income 1,136 1,209 (6.0%) 275 259 6.2% Overhead expenses (927) (905) 2.4% (224) (240) (6.7%) PPOP 209 304 (31.2%)
Slide 41: Wholesale Banking : Corporate Banking
Wholesale Banking : Corporate Banking (RM ’mil) FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q Net interest income 1,630 1,593 2.3% 415 405 2.5% Non interest income 670 622 7.7% 224 149 50.3% Operating income 2,300 2,215 3.8% 639 554 15.3% Overhead expenses (767) (719) 6.7% (193) (194) (0.5%) PPOP 1,533 1,496 2.5%
Slide 42: Corporate Banking : Gross Loans
Corporate Banking : Gross Loans Divisions / Products 31 Dec 13 31 Dec 12 Y-o-Y 30 Sep 13 Q-o-Q Malaysia (RM ’bil) 44.7 40.5 10.4% 45.5 (1.8%) Indonesia (IDR ’bil) 43,919 43,523 0.9% 42,538 3.2% Thailand (THB ’bil) 55.2 51.6 7.0% 55.2 - Singapore (SGD ’bil) 4.5 3.0 50.0% 4.0 12.5% Total Corporate Loa
Slide 43: Corporate Banking : Deposits
Corporate Banking : Deposits Divisions / Products 31 Dec 13 31 Dec 12 Y-o-Y 30 Sep 13 Q-o-Q Malaysia (RM ’bil) 91.8 81.4 12.8% 88.2 4.1% Indonesia (IDR ’bil) 34,520 31,327 10.2% 34,259 0.8% Thailand (THB ’bil) 38.3 50.7 (24.4%) 44.3 (13.5%) Singapore (SGD ’bil) 2.8 2.5 12.0% 2.8 - Total Corporate De
Slide 44: Wholesale Banking : Treasury & Markets
Wholesale Banking : Treasury & Markets (RM ’mil) FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q Net interest income 1,229 1,230 (0.1%) 294 335 (12.2%) Fee and commission income 34 46 (26.1%) 15 8 87.5% Net trading income 452 719 (37.1%) 161 97 66.0% Operating income 1,715 1,995 (14.0%) 470 440 6.8% Overhead expens
Slide 45: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) FY13 FY12 FY13 FY12 Market Market Market Market Rank Rank Rank Rank Share Share Share Share Cash Equities 17.3% 1 11.7% 1 Cash Equities 6.1% 2 5.2% 3 IPO 19.6% 1 21.8% 1 IPO 0.2% 23 5.3% 7 ECM 24.8% 1 25.2% 1 ECM 11.9% 3 2.4% 12 M&A 23.0% 1 24.0% 3 M&A 11.3% 3 0.3% 16
Slide 46: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) FY13 FY12 FY13 FY12 Market Market ASEAN Market Market Rank Rank Rank Rank Share Share Share Share Cash Equities 0.3% 57 0.1% 81 Cash Equities 8.1%~ 6~ 7.0% 7 IPO 2.3% 18 1.8% 21 IPO 6.8% 2 16.3% 1 ECM 0.9% 25 0.3% 28 ECM 7.2% 3 11.8% 1 M&A 0.5% 47 5.2% 12 EQL Products
Slide 47: Notable Deals of 2013
Notable Deals of 2013 Debt M&A Wesfarmers Limited Massive Equity Sdn Bhd AUD304.0 mil structured lease securitisation RM3,612.0 mil privatisation of both QSR Brands Bhd and capital raising for Wesfarmers / Bunnings KFC Holdings (Malaysia) Bhd Advanced Semiconductor Engineering, Inc. SapuraKencana Pe
Slide 48: Group Asset Management
Group Asset Management PBT (RM ’mil) FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q CIMB-P Group 62.9 50.3 25.0% 12.3 18.5 (33.5%) Wholesale 23.7 13.1 80.9% 6.2 8.2 (24.4%) Total 86.6 63.4 36.6% 18.5 26.7 (30.7%) Asset Under Management as at 31 Dec 2013 Wholesale AUM as at 31 Dec 2013 RM ‘mil +21.3% Y-o-Y CIMB Map
Slide 49: 3.3 Investments
CIMB Group : FY13 Results 3.3 Investments
Slide 50: Investments
Investments (RM ’mil) FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q Net interest income 605 445 36.0% 189 150 26.0% Non interest income 1,119 471 25.7% 254 46 452.2% Total income 1,724 916 88.2% 443 196 126.0% Overhead expenses (1,265) (512) 147.1% (385) (226) 70.4% PPOP 459 404 13.6% 58 (30) n.a. (Provisions) /
Slide 51: Strategic Investments
Strategic Investments RM ’mil FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q PAT to CIMB Group 95.9 89.6 7.0% 26.4 26.8 (1.5%) FY13 vs FY12: Slower PAT growth from margin squeeze due to narrowing of benchmark lending and deposit rates gap. Net loans +22.6% Y-o-Y to RMB27.8 bil while deposits +12.2% to RMB52.5 bil
Slide 52: 4. Country Analysis
CIMB Group : FY13 Results 4. Country Analysis
Slide 53: PBT by Country
PBT by Country PBT (RM‘ mil) FY13 One-offs* excl. one-offs FY12 Y-o-Y Malaysia 3,867 (298) 3,569 3,503 1.9% Indonesia 1,785 - 1,785 1,901 (6.1%) Thailand 336 - 336 240 40.3% Singapore 232 - 232 155 49.9% HQ & Others * (371) - (371) (121) 206.6% CIMBGH PBT 5,849 (298) 5,551 5,678 (2.2%) Note: * Other
Slide 54: Indonesia : Tough Year
Indonesia : Tough Year CIMB Niaga PBT Asset Quality IDR ‘bil Adoption of +28.1% CAGR FRS139 96.4% 81.9% 80.8% +0.8% Y-o-Y 71.1% 75.3% 5,787 5,832 4,392 3.8% 3.6% 3,390 3.2% 2.7% 2,166 3.1% 2.6% 2.6% 2.3% 2.2% 2009 2010 2011 2012 2013 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Gross Impairment Ratio Gross NP
Slide 55: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR ’bil) FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q Net interest income 10,121 9,709 4.2% 2,609 2,596 0.5% Non interest income 3,404 3,165 7.6% 856 943 (9.2%) Operating income 13,525 12,874 5.1% 3,465 3,539 (2.1%) Overhead expenses (6,490) (5,944) 9.2% (1,634) (1,705) (4.2%) PPO
Slide 56: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q ROE ^ 17.7 20.9 16.9 17.7 NIM ^ 5.34 5.87 5.38 5.47 Cost to Income 48.0 46.2 47.2 48.2 Loan Loss Coverage # 118.5 114.2 118.5 111.1 Allowance Coverage 80.8 96.4 80.8 91.0 Loan Loss Charge ^ 0.8 0.8 0.9 0.9 Gross Impaired Loans
Slide 57: Thailand : Good Year
Thailand : Good Year CIMB Thai’s PBT Securities PBT THB ‘mil THB ‘mil +125.9% CAGR +167.0% Y-o-Y -15.6% Y-o-Y 1,668 1,376 1,407 283 654 282 710 639 17.2% 106 30.2% 1,125 771 960 737 54 -61 2009 2010 2011 2012 2013 2012 2013 Core PBT Non Core PBT Total Deposits Total Loans THB ‘bil THB ‘bil +14.5% CA
Slide 58: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q (THB ’mil) Net interest income 6,525 5,207 25.3% 1,807 1,687 7.1% Non interest income 3,721 3,121 19.2% 2,056 655 214.0% Operating income 10,246 8,328 23.0% 3,863 2,341 65.0% Overhead expenses (6,095) (5,325) 14.5%
Slide 59: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q ROE ^ 7.0 7.7 9.6 7.7 NIM ^ 3.18 3.21 3.12 3.16 Cost to Income 59.5 63.9 42.4 66.5 Loan Loss Coverage ** 107.8 85.1 107.8 83.2 Loan Loss Charge ^ 1.6 1.0 4.4 0.9 Gross NPL ratio ** 2.5 2.8 2.5 2.5 Net NPL ratio ** 1.5 2.0 1.5 1
Slide 60: Singapore : Very Good Year
Singapore : Very Good Year PBT Number of Customers SGD ‘mil +75.1 CAGR ’000 +76.5% CAGR +39.3 Y-o-Y 83 +18.2% Y-o-Y 8 215 59 182 37 137 33 3 75 94 9 66 23 6 34 22 3 10 (7) 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Bank Securities Brokerage Income Forex Volume 2011 2012 2013 SGD ‘bil Ranking
Slide 61: 5. Other Highlights
CIMB Group : FY13 Results 5. Other Highlights
Slide 62: Malaysia : CIMB Islamic
Malaysia : CIMB Islamic Ranking of Total Islamic Assets as at 30 Sep 2013 FY13 FY12 Sukuk Total Assets Market Market Market Rank Company Rank Rank RM ’mil Share Share Share 1 Maybank Islamic 113,695 27% Malaysia 26.2% 1 28.1% 1 2 CIMB Islamic 52,803 12% Global 10.4% 2 13.4% 2 3 Bank Islam 41,834 10%
Slide 63: Banca & Insurance
Banca & Insurance PBT (RM ’mil) FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q CIMB Aviva^ - 39.6 - - - - CIMB Sun Life (3.5) (15.9) 78.0% 4.7 (1.5) n.a. Others* 9.7 (2.3) n.a. 2.6 2.6 - Total CIG & GID 6.1 21.3 (71.4%) 7.3 1.1 563.6% Banca Income Y-o-Y Malaysia 18.4% Indonesia 23.7% Thailand 67.2% Singapore 76.5%
Slide 64: 2013 CEO’s Focus Areas
2013 CEO’s Focus Areas Updates Head count declined by 1,189 or 2.8% to 40,804 Stronger spend discipline Cost Management Improve sales productivity Process efficiencies Preserve capital via DRS Capital Issuance of Basel III capital instruments Management RWA optimisation options Priva
Slide 65: 6. 2014 Outlook & Financial Targets
CIMB Group : FY13 Results 6. 2014 Outlook & Financial Targets
Slide 66: 2014 CEO’s Focus Areas
2014 CEO’s Focus Areas 1 Differentiating CIMB 2 Network CIMB 3 Culture Development 4 Digital Banking 5 1Platform 6 Transaction Banking 7 Cost Management 8 Capital & Liability Management 9 KPI Management & Performance Measurement 10 Strategic Review 66
Slide 67: 2014 Capital Management
2014 Capital Management 1 Share Placement 2 Regulatory Reserve Requirement On 13 Jan 2014, CIMBGH completed a RM3.55 bil private On 4 Feb 2014, BNM issued new guidelines on the placement of new ordinary shares. Details as follows: maintenance of Regulatory Requirements No of Shares Total Amount To m
Slide 68: 1Platform Live In Malaysia
1Platform Live In Malaysia Live on 3 Feb 2014!!! Malaysia Cost RM630 mil Progress of Cross-over Completed 5 Mock Runs and 4 Operational Total net benefits over 10-years (e)* Approx. RM1.5 bil Readiness Tests from Sep-13 to Jan-14 42% relates to cost savings On 3 Feb, 9.3 mil CIF records and their co
Slide 69: 2014 Outlook
2014 Outlook Positives Negatives 1Platform successfully implemented Government austerity measures Consumer & corporate banking momentum Consumer demand weakening Malaysia IB Strength Stable interest rates Digital banking Rate rises unlikely to be as sharp Election year Uplift in
Slide 70: New Targets for 2014
New Targets for 2014 FY14 ROE 13.5-14.0% TSR > FBMKLCI Dividend 40% Total Loans Growth 14% Loan loss charge 35-40bps Total Capital (CIMB Group) ^ > 13% CET 1 (CIMB Group) ^ > 8.5% Leverage (CIMB Group) ^ < 20x Note: ^ Basel III 70
Slide 71: 7. Final Remarks
CIMB Group : FY13 Results 7. Final Remarks
Slide 72: Final Remarks
Final Remarks In a year when Indonesia stalled, we did well to achieve 15.5% ROE Significant foundation building from “CIMB 2.0”, APAC IB, 1Platform, MSS etc Challenging year ahead for ASEAN Strong capital position and larger earning asset base Asset quality to be watched closely Expect strong growt
Slide 73: Thank You
THANK YOU 73
Slide 74: Appendices
Appendices bal CIMB GROUP
Slide 75: CIMB Group : Balance Sheet Changes
CIMB Group : Balance Sheet Changes 31 Dec 12 (RM ‘mil) 31 Dec 13 Y-o-Y 30 Sep 13 Q-o-Q (Restated) Cash & short term funds 33,679 30,760 9% 32,270 4% Securities purchased under resale agreements 8,261 5,594 48% 11,700 (29%) Deposits & placements with financial institutions 3,789 4,990 (24%) 5,128 (26
Slide 76: CIMB Niaga : Balance Sheet Changes
CIMB Niaga : Balance Sheet Changes (IDR ’bil) 31 Dec 13 31 Dec 12 Y-o-Y 30 Sep 13 Q-o-Q Placements & Other MS 36,444 34,077 6.9% 35,487 2.7% Government Bonds 10,213 8,084 26.3% 9,919 3.0% Loans (Net) 152,909 141,645 7.9% 151,582 0.9% Other Assets 19,300 13,606 41.8% 21,237 (9.1%) Total Assets 218,86
Slide 77: CIMB Thai : Balance Sheet Changes
CIMB Thai : Balance Sheet Changes Before GAAP Adjustments (THB ’mil) 31 Dec 13 31 Dec 12 Y-o-Y 30 Sep 13 Q-o-Q Placements & Other MS 51,211 15,177 237.4% 20,988 144.0% Government Bonds (Net) 48,110 35,428 35.8% 43,761 9.9% Loans (Net) 166,244 135,804 22.4% 159,730 4.1% Other Assets 14,097 15,983 (11
Slide 78: CIMB Group : Asset Quality Ratios
CIMB Group : Asset Quality Ratios 82.3% 84.3% 84.8% 82.3% 81.1% 82.8% 82.3% 82.2% 80.8% 80.4% 81.3% 82.1% 80.0% 84.0% 82.6% 83.7% 81.1% 81.1% 82.2% 81.9% 81.7% 81.7% 80.6% 80.0% 80.7% 79.5% 6.1% 5.9% 5.7% 5.5% 5.1% 4.7% 4.5% 4.8% 4.5% 4.4% 4.4% 4.2% 4.1% 3.8% 3.9% 3.8% 3.6% 3.4% 3.2% 3.6% 3.5% 3.2%
Slide 79: Consumer Banking – MY and SG
Consumer Banking – MY and SG (RM ’mil) FY13 FY12 Y-o-Y 4Q13 3Q13 Q-o-Q Net interest income 3,574 3,280 9.0% 939 886 6.0 Non interest income 1,111 1,010 10.0% 289 310 (6.8) Operating income 4,685 4,290 9.2% 1,228 1,196 2.7 Overhead expenses (2,886) (2,908) (0.8%) (733) (697) 5.2 PPOP 1,799 1,382 30.2
CIMB Group Holdings Berhad — FY2013 Earnings Presentation on 6ix