Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — FY2021 Earnings Presentation
43 slides from Cimb Group Holdings Bhd's earnings presentation, Feb 28, 2022
Slide 1: Analyst Presentation FY21 Results
Analyst Presentation FY21 Results CIMB Group Holdings 28 February 2022 FORWARD Your Ambitions 1
Slide 2: Overview
01 Overview 2
Slide 3: FY21 Year In Review
FY21 Year In Review Met and exceeded all targets except for Gross Loan FY21 FY21 FY21 growth target BAU Target Guidance Loan growth was slightly below target as we grew loans judiciously and reshaped our portfolio ROTCE 9.6% 8-9% 9-10% especially in Indonesia and Thailand Improved FY21 financials dr
Slide 4: Key Highlights
Key Highlights Stronger operating income Loan growth momentum Cost remains under control with QoQ and YoY picked up in 4Q CIR at 48.6%. PPOP grew 14.9% Core FY21 net profit remains Better YoY performance across strong and ROE at 8.1% all business segments Operating income grew 8.2% YoY from NIM expa
Slide 5: Key Business/Operational Highlights
Key Business/Operational Highlights Operating income strong QoQ and YoY FY21 NIM expanded to 2.45%, 18bps improvement YoY Total Operating Income (RM 'mil) NIM~ +4.8% QoQ +8.2% YoY FY20 FY21^ 18,372 2.27% 2.45% 16,987 2.52% 2.51% 4,604 4,393 2.40% 2.41% 2.37% 3Q21 4Q21 FY20 FY21 4Q20 1Q21 2Q21 3Q21 4
Slide 6: PBT By Segment
PBT By Segment Strong YoY Consumer growth from improved income and lower provisions. QoQ -47.8% due to higher overlays and provision on CIMB Digital Assets other receivables & Group Funding 14% Consumer Commercial improved YoY driven by the absence of large Banking Singapore provision in FY20, while
Slide 7: PBT By Country
PBT By Country Malaysia PBT +122.9% YoY from improved NIM and lower Others Corporate provisions YoY. QoQ decline mainly from higher Singapore -2% 9% Corporate provisions in 4Q21 Thailand Stronger YoY performance in Indonesia from topline expansion 5% and lower provisions. However, higher provisions
Slide 8: Operating Income
Operating Income 4Q21 FY21 NII improved YoY on NIM expansion (RM 'mil) Q-o-Q Y-o-Y and loan growth BAU^ BAU^ FY21 NIM expanded strongly mainly Net interest income 3,542 2.5% 13,958 11.5% from Malaysia and Singapore, but tapered QoQ across all core markets Non interest income 1,062 13.5% 4,414 (1.1%)
Slide 9: Operating Expenses
Operating Expenses 4Q21 FY21 Opex +1.8% YoY with higher (RM 'mil) Q-o-Q Y-o-Y BAU^ BAU^ Personnel and Technology investments, partially offset by Personnel 1,349 2.8% 5,348 4.0% lower Establishment and A&G Establishment 234 10.3% 881 (6.4%) QoQ +9.8% from year-end accrued Technology 343 6.1% 1,303 1
Slide 10: Total Provisions
Total Provisions 4Q21 3Q21 FY21 Commitments & contingencies lower (RM 'mil) Q-o-Q FY20 Y-o-Y YoY from lower MEF & overlays BAU^ BAU^ BAU^ Debt Instruments / securities were Loan Impairment 717 529 35.5% 2,614 5,342 (51.1%) significantly lower YoY but higher Commitment & Contingencies 68 44 54.5% 110
Slide 11: Loan Provisions/ECL
Loan Provisions/ECL +35.5% Q-o-Q -51.1% Y-o-Y -51.1% YoY mainly from lower overlays and absence of large RM 'mil 5,342 Singapore provisions MEF & Overlay 717 1,529 Higher QoQ due to top up of Covid-19 related 529 Corporate provisions in Malaysia 191 and Indonesia Underlying 829 2,614 Credit related/
Slide 12: Asset Quality & Moratorium
Asset Quality & Moratorium Gross Loans Bonds Covid-19 Impacted Sectors Continuation of Group-wide R&R Sectors 31 Dec-21 31 Dec-21 approach across all segments and Hospitality 1.2% 0.0% countries Retail 2.1% 0.1% Malaysia Consumer Moratorium and R&R stable at 30% Aviation 0.3% 0.4% Indonesia declined
Slide 13: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 31 Dec-21 Q-o-Q Y-o-Y Consumer Banking 199.5 2.8% 5.1% 89.0% 88.9% 87.8% Commercial Banking 61.9 0.9% 1.1% 85.8% 84.5% Wholesale Banking 116.6 (0.3%) 1.6% Total 378.0 1.5% 3.3% Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 ~ Loan Growth by Country (Y-o-Y) Others Sin
Slide 14: Deposits
Deposits CASA Ratio (RM 'bil) 31 Dec-21 Q-o-Q Y-o-Y 42.5% 42.3% Consumer Banking 175.5 1.7% (0.7%) 41.6% 41.5% Commercial Banking 77.6 1.9% 10.5% 41.3% Wholesale Banking 187.3 (2.5%) 14.3% Total Deposits 440.4 (0.1%) 7.2% Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Total CASA 187.0 2.1% 10.3% WY Deposit Grow
Slide 15: Capital and Liquidity Management
Capital and Liquidity Management 17.6% 18.3% Total Capital 16.4% 17.1% 16.8% 3.0% 2.9% 2.9% 3.2% 2.8% 0.9% Tier 2 1.1% 1.3% 1.4% 1.5% Tier 1 CET1 13.3% 14.5% 12.2% 12.5% 12.9% ^ # ^^ ~ * Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Liquidity Coverage Ratio Record high CET1 of 14.5% as at end Dec-21, compared
Slide 16: Consumer Banking
Consumer Banking FY21 Personal (RM 'mil) 4Q21 Q-o-Q Y-o-Y Financing BAU* Others 3% Credit Cards 3% Net interest income 1,536 5.6% 6,072 7.5% 4% Non interest income 500 17.1% 1,944 13.8% Auto 12% Gross Loans Operating income 2,036 8.2% 8,016 8.9% RM199.5 bil Overhead expenses (1,163) 9.0% (4,432) 3.2
Slide 17: Commercial Banking
Commercial Banking FY21 (RM 'mil) 4Q21 Q-o-Q Y-o-Y BAU* Others Singapore 4% Net interest income 739 0.8% 2,907 6.3% 6% Thailand Non interest income 168 24.4% 595 10.4% 3% Gross Loans Operating income 907 4.5% 3,502 6.9% RM61.9 bil Indonesia 1.1% Malaysia Overhead expenses (458) 8.8% (1,758) 0.1% 26%
Slide 18: Wholesale Banking
Wholesale Banking FY21 Others (RM 'mil) 4Q21 Q-o-Q Y-o-Y BAU* 1% Singapore Net interest income 955 (0.6%) 3,740 9.0% 17% Non interest income 288 (7.1%) 1,481 0.8% Thailand Gross Loans Operating income 1,243 (2.2%) 5,221 6.6% 8% RM116.6 bil Malaysia Overhead expenses (539) 10.2% (2,017) 5.8% 1.6% 55%
Slide 19: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding 4Q21 FY21 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 313 2.0% 1,239 75.0% +10.5% Y-o-Y -28.6% Y-o-Y Non interest income 107 67.2% 395 (47.1%) 16.8 Operating income 420 13.2% 1
Slide 20: CIMB Islamic
CIMB Islamic 4Q21 FY21 Islamic Financing (RM ‘mil) Q-o-Q Y-o-Y (RM 'bil) BAU* BAU* Net financing income 782 12.4% 2,943 27.7% +4.2% Q-o-Q +6.8% Y-o-Y Non financing income 105 (10.3%) 458 4.9% 105.4 Operating income 887 9.1% 3,401 24.1% 101.2 Overhead expenses (241) (26.8%) (1,149) 17.8% 98.7 PPOP 64
Slide 21: 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: Vision and Strategic Themes
Vision To be the leading focused ASEAN bank Strategic Themes 1 Delivering a) Reshape b) Drive cost c) Digitise for d) Focused investments Sustainable portfolio efficiency value Facilitate intra-ASEAN Financial Accelerate Reset cost base Strengthen wholesale Returns profitable growth Tighte
Slide 23: Asset Composition and Growth
Asset Composition and Growth Increased allocation in Group Funding as we continue to increase bonds and rebuild our loan book CDA and Group Year Consumer Commercial Wholesale Funding Dec-19 33% 11% 43% 12% Dec-21 32% 10% 43% 15% Loan Growth (YoY) Initiatives / Comments Dec-21 Sep-21 Dec-20 Dec-19 In
Slide 24: Structured Cost Take-out
Structured Cost Take-out Evolution Analysis RM 'mil 2 Identified RM410 mil of annualised cost take-out Total Cost Increase in cost 1 (611) out of the RM300-500 mil target Decrease in cost Details TBD 8,938 9,386 8,775 Annualised Impact (RM410mil) 2021 impact of RM195 mil FY2019A Cost FY2020A TH SG T
Slide 25: Digital Reliability/Customer Centricity
Digital Reliability/Customer Centricity Metrics tracking well with continued focus on improving digital and operational resiliency Clicks & Bizchannel Technology & Operational Investments Digital % Availability Technology Capex (RM’mil) FY20 FY21 YoY Country FY21 FY20 FY21 1,200 Target Digital Trans
Slide 26: Performance Management & Purpose Driven Organisation
Performance Management & Purpose Driven Organisation Values & Culture Human Capital Sustainability • Completed review of current operating model • Organisational Health survey completed with • Strengthened Green, Social, Sustainable and simplifying P&L accountability FY20 score of 75th percentile Im
Slide 27: 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 Cautiously optimistic for 2022 with gradual FY24 economic recovery anticipated across all our key FY21 FY22 Forward23+ operating markets BAU Targets Ambition Expect an improved 2022 financial performance ROE driven by topline growth, sustained NIM, positive 7.5% 7.5-8.0% (Reported) Top
Slide 29: Appendices
04 Appendices <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only>
Slide 30: Exceptional Items
Exceptional Items (RM 'mil) 4Q21 3Q21 2Q21 1Q21 FY21 PBT BAU 1,083 1,639 1,835 1,788 6,345 Gain on deconsolidation Touch ‘n Go Digital - - - 1,156 1,156 Gain / Loss on dilution of interest on disposal of associates (17) 2 - - (15) Transformational / Restructuring cost (7) (10) (17) (46) (80) Intangi
Slide 31: Earnings Summary
Earnings Summary 4Q21 3Q21 FY21 (RM ’mil) Q-o-Q FY20 Y-o-Y BAU^ BAU^ BAU^ Net interest income 3,542 3,457 2.5% 13,958 12,523 11.5% Non interest income 1,062 936 13.5% 4,414 4,464 (1.1%) Operating income 4,604 4,393 4.8% 18,372 16,987 8.2% Overhead expenses (2,375) (2,162) 9.8% (8,938) (8,775) 1.8% P
Slide 32: NOII breakdown
NOII breakdown 4Q21 3Q21 FY21 (RM ’mil) Q-o-Q FY20 Y-o-Y BAU^ BAU^ BAU^ Fee & commission 639 525 21.7% 2,356 1,992 18.3% Brokerage 1 0 n.a. 2 3 (33.3%) Asset management and security services 7 9 (22.2%) 33 24 37.5% Trading & FX 333 364 (8.5%) 1,783 2,087 (14.6%) Dividend income 10 15 (33.3%) 60 70 (
Slide 33: Key Ratios
Key Ratios 4Q21 3Q21 FY21 (%) Q-o-Q FY20 Y-o-Y BAU^ BAU^ BAU^ ROE ~ 5.5 8.4 ▼ 8.1 2.1 ▲ NIM ~* 2.41 2.40 ▲ 2.45 2.27 ▲ Non-interest income / total income 23.1 21.3 ▲ 24.0 26.3 ▼ Cost to income 51.6 49.2 ▲ 48.6 51.7 ▼ Allowance coverage (including regulatory reserve) 101.2 105.3 ▼ 101.2 93.4 ▲ Allowa
Slide 34: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Loan Exposure: Borrowers Status: 2.3% of total Group Impaired gross loans Thailand 46% Normal 6% 52% Singapore 18% Watch List (M & H) 2% Indonesia 2% Malaysia 74% Segmental Exposure: Upstream Oil Traders 8% 11% As at Dec-21, the O&G impairment ratio stood at 46.0% Midstream
Slide 35: PBT by Segments
PBT by Segments 4Q21 3Q21 FY21 PBT (RM ’mil) Q-o-Q FY20 Y-o-Y BAU^ BAU^ BAU^ Consumer Banking (30.4%) 260 499 (47.8%) 1,929 561 243.9% Commercial Banking (16.9%) 342 131 161.1% 1,072 (130) 924.6% Wholesale Banking (39.0%) 321 855 (62.5%) 2,475 512 383.4% Corporate Banking (14.7%) (10) 490 (102.0%) 9
Slide 36: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 4Q21 3Q21 Q-o-Q FY21 FY20 Y-o-Y Malaysia (RM ’mil) 117 341 (65.7%) 1,411 1,793 (21.3%) Indonesia (IDR ’bil) (2) 274 (100.7%) 544 2,869 (81.0%) Thailand (THB ’mil) 11 371 (97.0%) 972 (1,616) 160.1% Singapore (SGD ’mil) 0 7 (100.0%) 24 (342) 107.0% Others *
Slide 37: 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 4.4% 2.5% Consumer Gross Loans 9.2% 4.0% Mortgages 7.2% 2.3% Mortgages 9.1% 2.0% Term loans 0.9% 2.1% Auto 28.8% 14.3% Auto 0.6% 1.8% Credit cards (3.4%) 4.2% Credit cards 2.0% 11.1% Consumer Deposits 0.9
Slide 38: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 4Q21 3Q21 Q-o-Q FY21 FY20 Y-o-Y Net interest income 3,201 3,350 (4.5%) 13,089 12,471 5.0% Non interest income 1,042 948 9.9% 4,479 3,888 15.2% Operating income 4,242 4,298 (1.3%) 17,568 16,359 7.4% Overhead expenses* (2,029) (2,001) 1.4% (8,060) (8,007) 0.7%
Slide 39: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 4Q21 3Q21 Q-o-Q FY21 FY20 Y-o-Y ROE ^* 9.7 10.6 ▼ 10.7 5.3 ▲ NIM ^ 4.47 4.84 ▼ 4.86 4.88 ▼ Cost to Income* 47.8 46.6 ▲ 45.9 48.9 ▼ Loan Loss Coverage # 212.1 217.2 ▼ 212.1 194.3 ▲ Allowance Coverage 108.6 103.8 ▲ 108.6 114.6 ▼ Loan Loss Charge ^ 2.1 2.1 = 2.
Slide 40: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 4Q21 3Q21 Q-o-Q FY21 FY20 Y-o-Y (THB 'mil) Net interest income 2,385 2,484 (4.0%) 9,951 10,939 (9.0%) Non interest income 1,079 1,115 (3.2%) 4,396 3,988 10.2% Operating income 3,464 3,600 (3.8%) 14,347 14,927 (3.9%) Overhead expenses (2,110) (1,93
Slide 41: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 4Q21 3Q21 Q-o-Q FY21 FY20 Y-o-Y ROE ^ 6.8 7.1 ▼ 5.7 3.1 ▲ NIM ^ 2.9 3.0 ▼ 3.0 3.2 ▼ Cost to Income 60.9 53.7 ▲ 57.0 59.6 ▼ Loan Loss Coverage ** 117.5 105.9 ▲ 117.5 93.3 ▲ Loan Loss Charge ^ 1.1 1.4 ▼ 1.5 1.8 ▼ Gross NPL ratio ** 3.7 4.4 ▼ 3.7 4.6 ▼ ROA 0.7 0
Slide 42: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) FY21 FY20 FY21 FY20 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 23.4% 2 29.1% 1 DCM 6.1% 9 7.5% 6 Sukuk 21.8% 2 24.4% 2 M&A - - - - M&A - - - - Syndication ^ 4.2% 6 3.5% 5 Syndication ^ 13.0% 2 2.0% 15 IPO 0.7% 18 0.9% 20 IPO 1
Slide 43: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) FY21 FY20 FY21 FY20 Market Market ASEAN Market Market Rank Rank Rank Rank Share Share Share Share M&A - - - - DCM 11.7% 1 13.8% 1 Syndication ^ - - - - M&A - - - - IPO - - 0.1% 62 Syndication ^ 2.3% 13 1.1% 19 ECM - - 0.1% 80 IPO 1.4% 23 2.8% 11 ECM 3.2% 12 3.1% 11 FY
CIMB Group Holdings Berhad — FY2021 Earnings Presentation on 6ix