Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — FY2014 Earnings Presentation
86 slides from Cimb Group Holdings Bhd's earnings presentation, Feb 27, 2015
Slide 1: Analyst Presentation FY14 Results
Analyst Presentation FY14 Results 27 February 2015
Slide 2: Agenda
Agenda 1. Key Highlights 2. CIMB Group FY14 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. Target 18 7. 2015 Outlook & Financial Targets 8. Final Remarks 2
Slide 3: 1. Key Highlights
CIMB Group : FY14 Results 1. Key Highlights
Slide 4: FY14 Highlights
FY14 Highlights BAU PPOP down 3.2% - Main shortfall from weaker NoII (slower capital markets and bancassurance impact from implementation of new regulations in Indonesia) Costs contained, 0.6% Y-o-Y growth in BAU operating expenses BAU ROE at 9.3%; Reported net profit -31.6% from higher provisions,
Slide 5: Key Financial Highlights
Key Financial Highlights Operating Income Overhead Expenses Loan Impairment RM ‘mil Growth RM ‘mil Growth RM ‘mil Growth 1 FY13 2 FY13 FY13 14,157 BAU (8,241) (661) BAU BAU FY14 4 FY14 -1.0% +0.6% FY14 +130.3% 14,019 BAU (8,292) (1,522) BAU BAU Net Profit Gross Loans Deposits RM ‘mil Growth RM ‘bil
Slide 6: Key Ratios
Key Ratios ROE NIM CI Change Change Change 1,2,3 1,2 FY13 BAU 14.4% FY13 2.85% FY13 58.2% 4, 5,6 4, 5 FY14 BAU 9.3% -510bps FY14 2.81% -4bps FY14 59.1% +90bps LD CASA Loan Loss Charge Change Change Change Dec-13 88.4% Dec-13 34.3% FY13 0.28% Dec-14 93.0% +460bps Dec-14 34.7% +40bps FY14 0.58% +30bps
Slide 7: Actual vs Targets for 2014
Actual vs Targets for 2014 FY14 Actual FY14 Targets ROE 9.2% 13.5-14.0% TSR -22.3% > FBMKLCI > FBMKLCI Dividend 40% 40% Total Loans Growth * 13.2% 14% Loan Loss Charge 0.58% 35-40bps Total Capital (CIMB Group) 15.1% > 13% CET 1 (CIMB Group) 10.1% > 8.5% Leverage (CIMB Group) ** 15.8x < 20x Notes: *
Slide 8: 2. CIMB Group FY14 Financials
CIMB Group : FY14 Results 2. CIMB Group FY14 Financials
Slide 9: Earnings Summary Y-o-Y
Earnings Summary Y-o-Y FY14 FY13 Y-o-Y (RM ’mil) FY14 FY13 Y-o-Y BAU * BAU ** BAU Net interest income 9,962 9,962 9,391 9,391 6.1% 6.1% Non interest income 4,184 4,057 5,281 4,766 (20.8%) (14.9%) Operating income 14,146 14,019 14,672 14,157 (3.6%) (1.0%) Overhead expenses (8,292) (8,292) (8,458) (8,
Slide 10: Key Ratios
Key Ratios FY14 FY13 Y-o-Y (%) FY14 FY13 4Q14 3Q14 Q-o-Q BAU ~ BAU * BAU ROE ^ 9.2 9.3 15.5 14.4 2.2 9.8 NIM ^** 2.81 2.81 2.85 2.85 2.79 2.82 Non-interest income / total income 29.6 28.9 36.0 33.7 31.0 29.2 Cost to income 58.6 59.1 57.6 58.2 61.0 57.6 Allowance coverage 82.7 82.7 84.8 84.8 82.7 74.
Slide 11: Operating Expenses
Operating Expenses FY13 Y-o-Y (RM ’mil) FY14 FY13 4Q14 3Q14 Q-o-Q BAU BAU Personnel 4,609 4,876 4,659 2 (1.1%) 1,249 1,104 13.1% Establishment 1,921 1,829 1,829 5.0% 488 495 (1.4%) Marketing 372 393 393 (5.3%) 107 90 18.9% Admin & General 1,390 1,360 1,360 2.2% 395 345 14.5% Total excluding Extraord
Slide 12: Gross Loans Growth
Gross Loans Growth 50.9% of banking book from RFS Loans by Country as at 31 Dec 14 # Divisions / Products (RM ‘bil) 31 Dec 14 31 Dec 13 Y-o-Y 30 Sep 14 Q-o-Q Others Singapore 5% Retail Financial Services (50.9%) 133.3 116.8 14.1% 127.2 4.8% 9% Thailand Mortgages 63.1 55.7 13.3% 60.1 5.0% 8% Term Loa
Slide 13: Deposits Growth
Deposits Growth Deposits by Country as at 31 Dec 14 Divisions / Products (RM ‘bil) 31 Dec 14 31 Dec 13 Y-o-Y 30 Sep 14 Q-o-Q Others Singapore 4% Retail Financial Services (39.2%) 111.5 103.6 7.6% 106.5 4.7% 11% Current 17.9 17.8 0.6% 17.5 2.3% Thailand 7% Savings 31.1 28.7 8.4% 30.2 3.0% Fixed & Str
Slide 14: CASA Growth
CASA Growth CASA by Country as at 31 Dec 14 Country (RM ‘bil) 31 Dec 14 31 Dec 13 Y-o-Y 30 Sep 14 Q-o-Q Singapore Others 12% 1% Malaysia 58.6 55.7 5.2% 55.6 5.2% Thailand Indonesia ** 22.1 19.4 13.9% 20.6 7.3% 6% Thailand 5.5 4.8 14.6% 6.1 (9.8%) Indonesia Malaysia Singapore 11.5 10.0 15.0% 11.4 0.9
Slide 15: Capital Management – CIMB Group
Capital Management – CIMB Group + 2014 Minimum 15.0%# 15.1% 14.8% ^ 14.6% # Regulatory ~ 13.7% Requirements + ^ # 11.5% # Total Capital 8.0% 11.1% 11.0% 11.2% ~ + 9.7% # 10.1% 9.6% ^ 9.5% # 9.7% Tier 1 5.5% ~ 8.0% Core Equity Tier 1 4.0% Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Ratios are inclusive of cum
Slide 16: 3. PBT by Segment
CIMB Group : FY14 Results 3. PBT by Segment
Slide 17: PBT by Segments
PBT by Segments PBT (RM ’mil) FY14 * FY13 ** Y-o-Y 4Q14 * 3Q14 Q-o-Q Consumer Banking (52.8%) 2,258 2,271 (0.6%) 540 528 2.3% Malaysia (43.3%) 1,850 1,721 7.5% 451 460 (2.0%) Indonesia (7.0%) 298 578 (48.4%) 63 36 75.0% Thailand (0.5%) 20 (23) n.a. 2 9 (77.8%) Singapore (1.8%) 77 (8) n.a. 19 21 (9.5
Slide 18: 3.1 Regional Consumer Banking
CIMB Group : FY14 Results 3.1 Regional Consumer Banking
Slide 19: Malaysia : Consumer Banking
Malaysia : Consumer Banking (RM ’mil) FY14 FY13 Y-o-Y 4Q14 3Q14 Q-o-Q Net interest income 3,633 3,391 7.1% 940 911 3.2% Non interest income 1,059 1,025 3.3% 270 265 1.9% Operating income 4,692 4,416 6.3% 1,210 1,176 2.9% Overhead expenses (2,747) (2,702) 1.7% (748) (663) 12.8% PPOP 1,945 1,714 13.5%
Slide 20: Malaysia : Consumer Gross Loans and Deposits
Malaysia : Consumer Gross Loans and Deposits Consumer Gross Loans (RM ‘bil) 31 Dec 14 31 Dec 13 Y-o-Y 30 Sep 14 Q-o-Q Retail Financial Services (89.0%) 101.3 90.0 12.6% 97.8 3.6% Mortgages 46.9 42.2 11.1% 45.4 3.3% Term loans 26.5 23.0 15.2% 25.3 4.7% Auto 13.5 12.6 7.1% 13.3 1.5% Credit cards 4.9 4
Slide 21: Malaysia : Consumer Key Highlights
Malaysia : Consumer Key Highlights Dec-14 Dec-13 ASB – Loan Base Mkt Mkt RM ‘bil Rank* Rank +41.2% CAGR Share Share Retail CASA 12.0% 3 12.0% 3 +26.0% Y-o-Y 13.1 Auto 8.2% 5 7.7% 5 10.4 Residential 12.7% 3 12.6% 3 Mortgages 6.5 4.1 Non-Residential 3.3 10.3% 3 10.8% 3 Mortgages Credit Cards 13.4% 3 1
Slide 22: Indonesia : Consumer Gross Loans and Deposits
Indonesia : Consumer Gross Loans and Deposits Consumer Gross Loans (IDR ’bil) 31 Dec 14 31 Dec 13 Y-o-Y 30 Sep 14 Q-o-Q Retail Financial Services (41.3%) 50,006 47,879 4.5% 48,747 2.6% Mortgage 22,488 22,409 0.4% 22,227 1.2% Auto 18,658 18,353 1.7% 18,137 2.9% Credit Cards 5,273 4,077 29.3% 4,952 6.
Slide 23: Indonesia : Consumer Key Highlights
Indonesia : Consumer Key Highlights Dec-14* Dec-13 Consumer CASA Mkt Mkt IDR ‘tril Rank Rank Share Share +11.6% CAGR Deposits 4.2% 5 4.5% 5 +10.0% Y-o-Y 67.1 61.0 56.3 Mortgages 7.1% 5 7.9% 5 48.3 43.3 Credit Cards ~ 11.1% 4 10.7% 4 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Credit Card – Loan Base Branch &
Slide 24: Thailand : Consumer Gross Loans and Deposits
Thailand : Consumer Gross Loans and Deposits Consumer Gross Loans (THB ‘bil) 31 Dec 14 31 Dec 13 Y-o-Y 30 Sep 14 Q-o-Q Retail Financial Services (62.0%) 84.7 68.8 23.1% 80.9 4.6% Mortgage 55.1 42.7 29.2% 52.1 5.7% Auto Loans 19.1 16.9 12.7% 18.7 2.1% Personal / Others 10.5 9.2 14.3% 10.1 3.5% Commer
Slide 25: Thailand : Consumer Key Highlights
Thailand : Consumer Key Highlights Dec-14 Dec-13 Mortgage Loans Mkt Mkt THB ‘bil Rank Rank Share Share +32.1% CAGR Deposits 1.8% 9 1.5% 9 +29.2% Y-o-Y 55.1 Mortgages 3.1% * 9* 2.5% 9 42.7 30.5 23.9 Auto 1.2% * 9* 1.0% 9 SME Loans 2.2% 7 2.1% 7 Dec-11 Dec-12 Dec-13 Dec-14 Consumer Deposits Consumer L
Slide 26: Singapore : Consumer Gross Loans and Deposits
Singapore : Consumer Gross Loans and Deposits Consumer Gross Loans (SGD ‘mil) 31 Dec 14 31 Dec 13 Y-o-Y 30 Sep 14 Q-o-Q Retail Financial Services (45.7%) 2,706 2,100 28.9% 2,578 5.0% Mortgages 1,660 1,463 13.5% 1,614 2.9% Term loans 175 158 10.8% 172 1.7% Credit cards 466 386 20.7% 438 6.4% Others 4
Slide 27: Singapore : Consumer Key Highlights
Singapore : Consumer Key Highlights Consumer PBT Consumer Deposits SGD ‘mil SGD ‘mil +37.8% CAGR +94.4% CAGR +31.8% Y-o-Y 7,943 +ve% Y-o-Y 30.0 6,024 3,294 4,022 1,891 3,020 2,203 920 351 4,133 4,649 2.1 (11.4) (0.2) (3.0) 196 2,669 3,102 2,007 2010 2011 2012 2013 2014 Dec-10 Dec-11 Dec-12 Dec-13 De
Slide 28: 3.2 Regional Wholesale Banking
CIMB Group : FY14 Results 3.2 Regional Wholesale Banking
Slide 29: ASEAN Equity Markets, ECM and IPO Activities
ASEAN Equity Markets, ECM and IPO Activities Index Performance MSCI SEA Traded Value 130 USD ‘bil -13.1% Y-o-Y 120 475 110 100 415 413 90 80 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 FY12 FY13 FY14 MXSO Index FBMKLCI Index JCI Index FSSTI Index SET Index Industry ASEAN IPO Industry ASEAN ECM USD ‘mil USD ‘
Slide 30: Fixed Income and Currencies : Flat and Weak Issuances
Fixed Income and Currencies : Flat and Weak Issuances FOREX Movements Bond Yields 120 10 8 110 6 100 4 90 2 80 0 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 31-Dec-13 31-Mar-14 30-Jun-14 30-Sep-14 31-Dec-14 USDMYR USDSGD USDIDR USDTHB USDJPY MY 10Y Gov Bond IND 10Y Gov Bond USDCNH EURUSD GBPUSD AUDUSD TH 10Y
Slide 31: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) FY14 FY13 FY14 FY13 Market Market Market Market Rank Rank Rank Rank Share Share Share Share Cash Equities 11.0% 2 17.3% 1 Cash Equities 4.8% 2 6.1% 2 IPO 7.9% 5 19.6% 1 IPO 2.7% 12 0.2% 24 ECM 19.3% 1 26.2% 1 ECM 4.5% 8 11.7% 3 M&A 43.8% 1 23.0% 1 M&A 0.2% 20 11.3% 3
Slide 32: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) FY14 FY13 FY14 FY13 Market Market ASEAN Market Market Rank Rank Rank Rank Share Share Share Share Cash Equities 0.3% 52 0.3% 57 Cash Equities 6.9% 2 7.9% 2 IPO 1.0% 22 2.3% 18 IPO 4.1% 8 6.8% 2 ECM 0.5% 32 1.0% 25 ECM 6.9% 4 7.5% 3 M&A 0.6% 32 0.5% 47 M&A 13.2% 5 4.8%
Slide 33: Wholesale Banking
Wholesale Banking FY14 Y-o-Y 4Q14 Q-o-Q (RM ’mil) FY14 FY13 4Q14 3Q14 BAU* BAU BAU* BAU Net interest income 2,952 2,952 2,890 2.1% 739 739 750 (1.5%) Non interest income 1,911 1,911 2,151 (11.2%) 458 458 477 (4.0%) Operating income 4,863 4,863 5,041 (3.5%) 1,197 1,197 1,227 (2.4%) Overhead expenses
Slide 34: Wholesale Banking : Investment Banking
Wholesale Banking : Investment Banking FY14 Y-o-Y 4Q14 Q-o-Q (RM ’mil) FY14 FY13 4Q14 3Q14 BAU* BAU BAU* BAU Net interest income 80 80 68 17.6% 27 27 19 42.1% Non interest income 1,021 1,021 967 5.6% 270 270 251 7.6% Operating income 1,101 1,101 1,035 6.4% 297 297 270 10.0% Overhead expenses (1,108)
Slide 35: Wholesale Banking : Corporate Banking
Wholesale Banking : Corporate Banking (RM ’mil) FY14 FY13 Y-o-Y 4Q14 3Q14 Q-o-Q Net interest income 1,672 1,639 2.0% 456 411 10.9% Non interest income 599 669 (10.5%) 149 127 17.3% Operating income 2,271 2,308 (1.6%) 605 538 12.5% Overhead expenses (828) (824) 0.5% (215) (194) 10.8% PPOP 1,443 1,484
Slide 36: Corporate Banking : Gross Loans
Corporate Banking : Gross Loans Country 31 Dec 14 31 Dec 13 Y-o-Y 30 Sep 14 Q-o-Q Malaysia (RM ‘bil) 30.7 34.0 (9.7%) 30.3 1.3% Indonesia (IDR ‘bil) 55,429 43,919 26.2% 48,514 14.3% Thailand (THB ‘bil) 49.2 55.2 (10.9%) 49.3 (0.2%) Singapore (SGD ‘mil) 4,659 4,455 4.6% 4,753 (2.0%) Others* (RM ‘bil)
Slide 37: Wholesale : Deposits
Wholesale : Deposits Country 31 Dec 14 31 Dec 13 Y-o-Y 30 Sep 14 Q-o-Q Malaysia (RM ‘bil) 55.3 47.1 17.4% 47.3 16.9% Indonesia (IDR ‘bil) 32,368 33,198 (2.5%) 31,680 2.2% Thailand (THB ‘bil) 58.7 47.1 24.6% 62.5 (6.1%) Singapore (SGD ‘mil) 2,458 1,851 32.8% 1,712 43.6% Others* (RM ‘bil) 7.6 10.2 (25
Slide 38: Wholesale Banking : T&M Excluding Customer flow
Wholesale Banking : T&M Excluding Customer flow (RM ’mil) FY14 FY13 Y-o-Y 4Q14 3Q14 Q-o-Q Net interest income 1,200 1,184 1.4% 256 320 (20.0%) Fee and commission income 106 49 116.3% 39 28 39.3% Net trading income 185 466 (60.3%) - 71 n.a. Operating income 1,491 1,699 (12.2%) 295 419 (29.6%) Overhea
Slide 39: Group Asset Management
Group Asset Management PBT (RM ‘mil) FY14 FY13 Y-o-Y 4Q14 3Q14 Q-o-Q CIMB-P Group 79.2 62.9 25.9% 17.7 20.2 (12.7%) Wholesale 14.3 23.7 (39.8%) 1.8 4.2 (57.1%) Total 93.5 86.6 7.9% 19.5 24.4 (20.2%) Acquired minority stake in PT Modern International TBK, the listed retail operator and owner of the 7
Slide 40: 3.3 Investments
CIMB Group : FY14 Results 3.3 Investments
Slide 41: Investments
Investments FY14 FY13 Y-o-Y 4Q14 Q-o-Q (RM ’mil) FY14 FY13 4Q14 3Q14 BAU* BAU** BAU BAU* BAU Net interest income 724 724 591 591 22.5% 126 126 181 (30.4%) Non interest income 330 203 1,165 650 (68.8%) 179 52 72 (27.8%) Total income 1,054 927 1,756 1,241 (25.3%) 305 178 253 (29.6%) Overhead expenses
Slide 42: Strategic Investments
Strategic Investments RM ’mil FY14 FY13 Y-o-Y 4Q14 3Q14 Q-o-Q PAT to CIMB Group 114.5 95.9 19.4% 18.2 30.7 (40.7%) FY14 vs FY13: Higher PAT mainly due to better interest income arising from higher loans growth and fixed income investments 19.99% RM ’mil FY14 FY13 Y-o-Y 4Q14 3Q14 Q-o-Q PAT to CIMB Gr
Slide 43: 4. Country Analysis
CIMB Group : FY14 Results 4. Country Analysis
Slide 44: PBT by Country
PBT by Country FY14 FY13 Y-o-Y PBT (RM‘ mil) FY14 FY13 BAU BAU BAU Malaysia 2,5,6 3,311 3,250 3,901 3,603 (9.8%) Indonesia 3 904 838 1,768 1,768 (52.6%) Thailand 213 213 339 339 (37.2%) Singapore 323 323 230 230 40.4% Others 4 (259) (131) (94) (94) (39.4%) PBT 4,492 4,493 6,144 5,847 (23.2%) HQ Cost
Slide 45: Indonesia : Hit by large Provisions and low NoII
Indonesia : Hit by large Provisions and low NoII CIMB Niaga PBT Non Interest Income IDR ‘bil IDR ‘bil -1.4% CAGR +15.7% CAGR -45.1% Y-o-Y -17.5% Y-o-Y 5,787 5,832 3,404 3,196 4,392 2,809 2,440 3,390 3,200 1,566 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Gross Loans Asset Quality IDR ‘tril +13
Slide 46: Thailand : Banking Improving; Securities Dropped
Thailand : Banking Improving; Securities Dropped CIMB Thai’s PBT Securities PBT THB ‘mil THB ‘mil +14.8% CAGR +254.2% CAGR -12.2% Y-o-Y -27.9% Y-o-Y 1,668 283.5 1,377 1,407 1,236 204.5 751 509 102 711 757 106.3 102 1,134 917 898 609 620 1.3 (38.2) 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Co
Slide 47: Singapore : Banking Positive, Weak Securities
Singapore : Banking Positive, Weak Securities Bank PBT Securities PBT SGD ‘mil SGD ’mil +85.0% CAGR +55.9% Y-o-Y -ve% CAGR 117.1 75.1 23.4 66.4 -ve% Y-o-Y 33.6 7.7 10.0 3.3 (7.0) (9.4) 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Corporate Loans Investment & Forex Income SGD ‘mil SGD ‘mil +23.4
Slide 48: 5. Other Highlights
CIMB Group : FY14 Results 5. Other Highlights
Slide 49: Banca & Insurance
Banca & Insurance PBT (RM ’mil) FY14 FY13 Y-o-Y 4Q14 3Q14 Q-o-Q CIMB Sun Life 3.1 (3.5) n.a. 3.1 1.7 82.4% Others* (3.0) 13.1 n.a. (8.3) 1.8 n.a. Total CIG & GID 0.1 9.6 (99.8%) (5.2) 3.5 n.a. Banca Income (RM ’mil) Y-o-Y Malaysia 18.3% Indonesia (48.2%) Thailand 10.1% Singapore 98.7% Total (29.7%)
Slide 50: Malaysia : CIMB Islamic
Malaysia : CIMB Islamic Ranking of Total Islamic Assets as at 30 Sep 2014 FY14 FY13 Sukuk Total Assets Market Market Market Rank Company Rank Rank RM ’mil Share Share Share 1 Maybank Islamic 135,567 29% Malaysia 29.4% 1 26.2% 1 2 CIMB Islamic 50,388 11% Global 15.4% 1 10.5% 2 3 Bank Islam 42,894 9%
Slide 51: Corporate Responsibility
Corporate Responsibility CIMB Foundation Regional 62 Community Link projects Let’s Save & Share programme Increase financial literacy among elementary students approved 5 CIMB Niaga Scholarship programme Project Brickfields approved 45 beneficiaries from universities across Indonesia Community Devel
Slide 52: Key 2014 Priorities Round-up (1)
Key 2014 Priorities Round-up (1) Updates Completed review of 8 business areas with recommendations to strengthen the regional Differentiating proposition and to amplify selected segments CIMB Subsumed under overall T18 plans, with oversight and guidance by Board EXCO Completed 84 cross border
Slide 53: Key 2014 Priorities Round-up (2)
Key 2014 Priorities Round-up (2) Updates Regional sales enablement blue printing initiative concluded Digital Banking Established dedicated Digital Malaysia team to execute and deliver on the blue print 1Platform Indonesia: Completed design phase & progressing on schedule to go-live in 1Q16 (a
Slide 54: 6. Target 18 (T18)
CIMB Group : FY14 Results 6. Target 18 (“T18”)
Slide 55: T18 Overview
T18 Overview Platform Leader in our home market, deep presence in ASEAN with strategic links to APAC and beyond Financials Managing the trade offs between profitability, resilience, efficiency, and diversification >15% >11% ~50% 60% Income ROE CET1 Cost to Income contribution from Consumer Banking 5
Slide 56: T18 Has a Two Prong Focus
T18 Has a Two Prong Focus T18 will entail a simultaneous drive to become leaner and hence more productive, and at the same time a push in core focus areas T18 Cost and Efficiency Optimisation Acceleration of Key Growth Drivers Improve overall productivity and efficiency with Invest and accelerate in
Slide 57: Key Levers for Stronger Performance
Key Levers for Stronger Performance Cost reforms and acceleration of key growth drivers will contribute to ROE improvement over the next few years 100-150 bps 30-60 bps >15.0% 100-200 bps Examples :- 11 - 12% ⁻ SME 2.0 IB ⁻ Transaction restructuring Banking ⁻ Exit ⁻ Digital Australia initiatives
Slide 58: T18 Key Work Streams
T18 Key Work Streams Structure and Differentiation and ‘Biggies’ Governance Optimisation Key strategic Inward looking Differentiated, innovative and transformational organisational and and synergy-focused projects process changes tactical strategies 1. Cost management 1. Organisation 1. Differentiat
Slide 59: T18 Biggies
T18 Biggies Key focus areas are expected to provide a material uplift by 2018 Digital SME 2.0 Transaction Banking Develop and enhance Reorganisation to make Focus on client digital channel SME a key business pillar acquisition and capabilities in its own regard deepening wallet share Better
Slide 60: T18 Biggies : Culture
T18 Biggies : Culture A key lever in balancing strategy and operating model Revitalise our culture as part of our recalibration Seamless collaboration Balance between short-term and long-term Collegiate Empowerment and institutionalisation Performance system that provides clarity 3 critical behavior
Slide 61: Structure and Governance: ROM
Structure and Governance: ROM Structured approach to address our target ROM 1 2 3 4 Macro Targets Reorganisation Biz Level Regional and Strategies Operating Strategies (T18) and Targets Model (ROM) Greater BU level planning Economies of Scale and Skill coordination Greater governance and C
Slide 62: Institutionalising performance oversight of business units
Institutionalising performance oversight of business units Dashboard + Market Intel Recalibrate Triggers areas to review/dive into e.g.: Quantitative Market share declining while industry is growing healthily Missed budget Competitor launches new product Discuss with Biz owners + Present to Bo
Slide 63: Optimisation: Synergy Matrix
Optimisation: Synergy Matrix Established top-down view of synergy potential within the Group Institutionalising Synergy CIMB Group Development and Recognition 1. KPIs Collaboration revenues are measured, controlled and assessed 2. Organisation Alignment Foster cross-regional and cross-divisional col
Slide 64: Group Strategy to drive implementation of T18 initiatives
Group Strategy to drive implementation of T18 initiatives Board EXCO Provide high level T18 (“BEXCO”) guidance and direction GCEO Deep dive on strategic initiatives Group Strategy & PMO Focus Areas 1 “Biggies” Group Strategy to reside in GCEO’s office Dedicated Group PMO team within Group 2
Slide 65: T18 Execution Updates
T18 Execution Updates In line with T18, we are re-organising the group in order to better position ourselves to execute the various priorities. We are also scaling back and right sizing the organisation in line with the push for better efficiency and cost management A significant re-organisation of
Slide 66: T18 Organisational Imperatives
T18 Organisational Imperatives The organisation will require a recalibration to be in a better position to achieve our T18 objectives BUSINESS PILLARS & ENABLERS Key Organization Drivers ASEAN Transaction Globally- 1. Business focus on high priority areas Bank with client-centric ASEAN wholesale rec
Slide 67: CIMB Group Organisation Structure
CIMB Group Organisation Structure Board of Directors Group Chief Internal Auditor* Group Chief Risk Officer* Lim Tiang Siew David Richard Thomas Group CEO’s Office Group Chief Compliance Officer* Adviser - Dato’ Lee Kok Kwan (Wholesale Banking) Group Chief Executive Officer Adviser - Kenny Kim (Fina
Slide 68: Cost management drive in 2015
Cost management drive in 2015 To scale back and right size the Group in line with the push for better efficiency and cost management 1 Close down Australia (announced on 10 Feb 2015): Scale back our Equities and ~100 people affected IB platform Target to complete closure by April 2015 Target 3
Slide 69: 7. 2015 Outlook & Financial Targets
CIMB Group : FY14 Results 7. 2015 Outlook & Financial Targets
Slide 70: 2015 Outlook
2015 Outlook Macro View Internal Opportunities and Challenges Macro-economic challenges with Commercial banking growth to sustain dependency on commodity prices TB alignment Benign interest rate environment Digital sales enablement acceleration Softer consumer market demand Tight liqui
Slide 71: Targets for 2015
Targets for 2015 FY15 Target ROE 11.0% Dividend Payout Ratio 40% Total Loans Growth * 10% Loan Loss Charge 40-50 bps CET 1 (CIMB Group) > 10% Cost to income < 55% Note: * Excluding bad bank 71
Slide 72: 8. Final Remarks
CIMB Group : FY14 Results 8. Final Remarks
Slide 73: Final Remarks
Final Remarks Start 2015 with a stronger capital position and a strengthened balance sheet with CET1 of 10.1% and Allowance Coverage of 82.7% Tough 2015 ahead: Slower GDP growth in Malaysia and Indonesia, weaker commodity outlook, capital markets still slow, asset quality will remain a challenge in
Slide 74: Thank You
THANK YOU 74
Slide 75: Appendices
CIMB Group : FY14 Results Appendices
Slide 76: Consolidated Balance Sheet Changes
Consolidated Balance Sheet Changes (RM ‘mil) 31 Dec 14 31 Dec 13 Y-o-Y 30 Sep 14 Q-o-Q Cash & short term funds 33,463 33,679 (1%) 30,454 10% Securities purchased under resale agreements 4,758 8,261 (42%) 3,601 32% Deposits & placements with financial institutions 4,239 3,789 12% 4,514 (6%) Financial
Slide 77: Asset Quality Ratios – CIMB Group
Asset Quality Ratios – CIMB Group 84.3% 84.8% 82.3% 82.8% 82.3% 82.2% 83.8% 82.7% 81.1% 81.3% 82.1% 79.2% 84.0% 83.7% 82.2% 82.6% 81.9% 81.7% 81.7% 82.6% 74.2% 81.8% 80.7% 81.1% 77.4% 71.9% 5.1% 4.8% 4.4% 4.2% 3.8% 3.8% 3.6% 3.4% 3.2% 3.1% 3.1% 3.3% 3.1% 4.1% 3.9% 3.6% 3.5% 3.2% 3.1% 3.0% 2.9% 2.7%
Slide 78: Yearly Earnings Trend
Yearly Earnings Trend Average ROE from 2010 – 2014 14.7% 16.2% 16.4% 16.0% 15.5% 9.2% 14.7 14.1 13.5 11.9 12.1 5.7 5.8 5.2 4.6 4.3 4.5 4.3 3.5 4.0 3.1 2010 2011 2012 2013 2014 Operating income* PBT* Net profit* ROE Note: * RM ‘bil 78
Slide 79: Earnings Summary Q-o-Q
Earnings Summary Q-o-Q 4Q14 3Q14 Q-o-Q (RM ’mil) 4Q14 3Q14 Q-o-Q BAU * BAU BAU* Net interest income 2,563 2,563 2,498 2,498 2.6% 2.6% Non interest income 1,109 982 1,031 1,031 7.6% (4.8%) Operating income 3,672 3,545 3,529 3,529 4.1% 0.5% Overhead expenses (2,239) (2,239) (2,034) (2,034) 10.1% 10.1%
Slide 80: Dividend : 40% with DRS
Dividend : 40% with DRS 55% 41% 40% 40% 40% Payout Ratio 23% 26.08 22.00 23.38 23.15 18.50 Net Dividend 15.00 Per Share (Sen) 2009 2010 2011 2012 2013 2014 Net Dividend Per Share Payout Ratio 80
Slide 81: AFS MTM (Q-o-Q) Position
AFS MTM (Q-o-Q) Position 149.8 142.6 (42.7) (66.5) (4.6) Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 81
Slide 82: Notable Deals
Notable Deals DCM DCM Government of the Republic of Indonesia Government of United Kingdom USD1.5 bil Trust Certificates due 2024 issued via GBP200.0 mil Trust Certificates due 2019 issued via HM Perusahaan Penerbit SBSN Indonesia III Treasury UK Sovereign Sukuk PLC (Republic of Indonesia’s first Su
Slide 83: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR ’bil) FY14 FY13 Y-o-Y 4Q14 3Q14 Q-o-Q Net interest income 10,689 10,121 5.6% 2,904 2,673 8.6% Non interest income 2,809 3,404 (17.5%) 806 487 65.5% Operating income 13,498 13,525 (0.2%) 3,710 3,160 17.4% Overhead expenses (6,832) (6,490) 5.3% (1,687) (1,719) (1.9%)
Slide 84: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) FY14 FY13 Y-o-Y 4Q14 3Q14 Q-o-Q ROE ^ 8.5 17.7 0.7 4.9 NIM ^ 5.36 5.34 5.63 5.32 Cost to Income 50.6 48.0 45.5 54.4 Loan Loss Coverage # 88.8 116.5 88.8 82.9 Allowance Coverage 72.4 80.8 72.4 51.8 Loan Loss Charge ^ 2.1 0.8 4.4 2.7 Gross Impaired Loans Ratio
Slide 85: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments FY14 FY13 Y-o-Y 4Q14 3Q14 Q-o-Q (THB ’mil) Net interest income 7,889 6,525 20.9% 2,107 2,011 4.8% Non interest income 2,618 3,721 (29.6%) 662 593 11.6% Operating income 10,507 10,246 2.5% 2,769 2,604 6.3% Overhead expenses (7,141) (6,095) 17.2% (1
Slide 86: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) FY14 FY13 Y-o-Y 4Q14 3Q14 Q-o-Q ROE ^ 4.4 7.0 1.5 4.8 NIM ^ 3.37 3.18 3.40 3.37 Cost to Income 68.0 59.5 69.9 67.8 Loan Loss Coverage ** 95.2 107.8 95.2 94.5 Loan Loss Charge ^ 1.1 1.6 1.5 1.1 Gross NPL ratio ** 3.3 2.5 3.3 3.3 Net NPL ratio ** 1.8 1.5 1.8 1.
CIMB Group Holdings Berhad — FY2014 Earnings Presentation on 6ix