Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — Q1 2021 Earnings Presentation
42 slides from Cimb Group Holdings Bhd's earnings presentation, May 31, 2021
Slide 1: Analyst Presentation 1Q21 Results
Analyst Presentation 1Q21 Results CIMB Group Holdings 31 May 2021 FORWARD Your Ambitions 1
Slide 2: 01 Overview
01 Overview 2
Slide 3: Key Highlights: Improved 1Q21 Performance
Key Highlights: Improved 1Q21 Performance Better performance across all Higher NOII from wealth Lower ECL mainly segments management and trading income from Singapore c RM1,156 mil Strong underlying ROE One-off revaluation gain from of 9.3% deconsolidation of TNGD RM1,156mil revaluation gain from de
Slide 4: Key Business/Operational Highlights
Key Business/Operational Highlights Improved topline from all business segments Strong NOII from wealth management and trading income Total Operating Income (RM 'mil) NOII (RM 'mil) 4,801* Y-o-Y +22.2% +209.4% 4,143 CIMB Group +15.9% 2,106 567 1,913 Consumer +10.1% 464 492 857 Commercial +2.6% 835 1
Slide 5: PBT By Segment
PBT By Segment Consumer PBT growth underpinned by strong NII and CIMB Digital Assets & NOII expansion Group Funding Consumer Sharp improvement in 1Q21 Commercial PBT given 12% Banking absence of large provision in 1Q20 and legacy 1Q21 recoveries 35% Group PBT Wholesale RM1,742 mil Wholesale had a st
Slide 6: PBT By Country
PBT By Country Others Malaysia PBT +125.4% YoY from better NOII and lower Singapore ECL -1% 8% Thailand Indonesia improved on higher NIM despite contraction 3% Malaysia in YoY loans with stronger trading income. Provisions 1Q21 69% were lower QoQ Indonesia Group PBT 21% Thailand 1Q21 PBT reduced YoY
Slide 7: Operating Income
Operating Income 1Q21 NII +8.0% YoY largely driven by (RM 'mil) Q-o-Q Y-o-Y BAU^ improved NIMs of +8bps from Malaysia and Indonesia, as loan Net interest income 3,468 3.5% 8.0% growth remains muted (+0.7%) Non interest income 1,333 (2.3%) 43.2% NOII +43.2% YoY from higher T&M and wealth management f
Slide 8: Operating Expenses
Operating Expenses (RM 'mil) 1Q21 Q-o-Q Y-o-Y Opex +0.9% YoY from higher Personnel and Technology cost, Personnel 1,419 16.4% 5.0% offset by the savings from TNGD deconsolidation, Marketing and Establishment 221 (10.9%) (8.7%) Admin & General costs Technology 316 1.6% 23.9% Higher Technology cost Yo
Slide 9: Total Provisions
Total Provisions (RM 'mil) 1Q21 4Q20 Q-o-Q 1Q20 Y-o-Y Loan Impairment 716 1,384 (48.3%) 968 (26.0%) Commitment & Contingencies 23 75 (69.3%) 52 (55.8%) Debt instruments/ securities (17) 395 (104.3%) 40 (142.5%) Others 34 402 (91.6%) 69 (50.7%) Total 756 2,256 (66.5%) 1,129 (33.0%) Total Provisions B
Slide 10: Loan Provisions/ECL
Loan Provisions/ECL -48.3% Q-o-Q -26.0% Y-o-Y -27.0% YoY mainly due to absence of large impairment and recovery of legacy accounts 1,384 RM 'mil Allowance coverage stood at 101.9% with a GIL of 3.4% MEF & Overlay 968 616 Others/BAU 1Q21 LLC came in at 0.78%. In line 716 with credit cost guidance of
Slide 11: Asset Quality & Moratorium
Asset Quality & Moratorium Gross Loans Bonds Covid-19 Impacted Sectors Continuation of Group-wide R&R Sectors 31 Mar-21 31 Mar-21 approach across all segments and Hospitality 1.3% 0.0% countries Retail 2.3% 0.1% Malaysia Moratorium and R&R higher from QoQ increase in Commercial Aviation 0.3% 0.5% an
Slide 12: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 31 Mar-21 Q-o-Q Y-o-Y 91.2% Consumer Banking 189.9 0.1% 4.4% 89.0% 88.9% Commercial Banking 61.3 (2.9%) (3.0%) 88.2% 87.7% Wholesale Banking 115.4 2.2% (2.9%) Total 366.6 0.2% 0.7% Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Loan Growth by Country (Y-o-Y)~ Others
Slide 13: Deposits
Deposits CASA Ratio (RM 'bil) 31 Mar-21 Q-o-Q Y-o-Y Consumer Banking 174.0 (2.1%) (3.4%) 41.3% 42.3% 40.0% Commercial Banking 72.1 1.5% 10.6% 38.4% 36.5% Wholesale Banking 166.1 2.5% 8.2% Total Deposits 412.2 0.3% 3.3% Total CASA 174.5 2.9% 19.8% Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 WY Others Deposit
Slide 14: Capital and Liquidity Management
Capital and Liquidity Management Total Capital 17.6% CET1 stood at 12.9% as at end Mar- 16.1% 17.1% Tier 2 21 mainly due to lower reserves from 3.0% 2.9% 2.5% 1.3% mark-to-market on the fixed income Tier 1 1.1% 1.3% portfolio and higher RWA CET1 FY20 DRS take-up rate at 76.8% 12.5% 13.3% 12.9% CET1
Slide 15: Consumer Banking
Consumer Banking Personal (RM 'mil) 1Q21 Q-o-Q Y-o-Y Financing Others Credit Cards 3% 2% Net interest income 1,539 1.9% 6.2% 4% Non interest income 567 6.0% 22.2% Auto 13% Gross Loans Operating income 2,106 3.0% 10.1% RM189.9 bil Overhead expenses (1,131) 3.4% 1.4% 4.4% Mortgages Term 60% Loans PPOP
Slide 16: Commercial Banking
Commercial Banking (RM 'mil) 1Q21 Q-o-Q Y-o-Y Others Singapore 4% 6% Net interest income 710 1.0% 4.3% Thailand 5% Non interest income 147 8.1% (4.5%) Gross Loans Operating income 857 2.1% 2.6% RM61.3 bil Malaysia Indonesia 3.0% Overhead expenses (447) 2.8% (1.8%) 59% 26% PPOP 410 1.5% 7.9% (Provisi
Slide 17: Wholesale Banking
Wholesale Banking (RM 'mil) 1Q21 Q-o-Q Y-o-Y Singapore 19% Net interest income 898 (0.1%) 10.6% Non interest income 492 (7.2%) 209.4% Thailand Gross Loans Operating income 1,390 (2.7%) 43.2% 8% RM115.4bil Malaysia Overhead expenses (502) 8.0% (4.6%) 2.9% 54% PPOP 888 (7.9%) 99.6% Indonesia 19% (Prov
Slide 18: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding 1Q21 Touch ‘n Go Digital (RM ‘mil) Q-o-Q Y-o-Y Total Registered Users Annual Active Users BAU (mil) (mil) Net interest income 321 34.3% 18.9% +49.7% Y-o-Y +42.7% Y-o-Y Non interest income 127 (22.6%) (17.5%) 15.5 10.0 Operating income 448 11.2% 5.7% Overhead expen
Slide 19: CIMB Islamic
CIMB Islamic Islamic Financing (RM ‘mil) 1Q21 Q-o-Q Y-o-Y (RM 'bil) Net financing income 728 4.9% 24.4% +0.8% Q-o-Q +6.7% Y-o-Y Non financing income 134 65.4% (12.4%) 99.5 Operating income 862 11.2% 16.8% 96.8 Overhead expenses (293) 23.1% 13.6% 93.3 PPOP 569 6.0% 18.5% (Provisions) / Writeback (36)
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: 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 22: Touch 'n Go Digital Capital Raising
Touch ‘n Go Digital Capital Raising Ongoing fundraising exercise in the private capital markets to accelerate growth and fully fund TNG until breakeven, estimated at 5 years. Potential new shareholders will add value by allowing TNGD to leverage on their knowledge, expertise, experience and network
Slide 23: Asset Composition and Growth
Asset Composition and Growth CDA and Group Year Consumer Commercial Wholesale Funding Dec 2019 33% 11% 43% 12% Mar 2021 32% 10% 43% 15% Note: Malaysia includes London, Hong Kong and Shanghai Loan Growth Initiatives Update 31 Mar-21 YoY Exit Exited Thailand Commercial – Portfolio run down Thailand Co
Slide 24: Structured Cost Take-out
Structured Cost Take-out Approach: Initiatives Update Evolution Analysis RM 'mil Right-sized Thailand Commercial and Singapore 1 2 (300) to (500) * Deconsolidated TNGD Ongoing strategic deep- (30) (45) dives on selected cost pools 9,502 8,977 Operationalised cost dashboard for granular cost monitori
Slide 25: Digitise for Value and Customer Centricity
Digitise for Value and Customer Centricity CIMB Clicks Customer Centricity Digital Availability Launched TNGD GO+ Channel Channels (Malaysia) 4Q20 1Q21 Satisfaction (Voice of Customers 7 Met Target Web 99.12% 99.83% (out of 12 channels) survey) App 99.89% 99.83% Non Digital Key Optimised current Cli
Slide 26: Performance Management & Purpose Driven Organisation
Performance Management & Purpose Driven Organisation Values & Culture Human Capital Sustainability Rolled out new KPI framework Organisational Health survey Committed RM10 billion GSSIPS completed with FY20 score of 75th (Green, Social, Sustainable Impact Rolled out new bonus framework percentile; t
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 Good 1Q21 performance underscored by NIM improvement, strong NOII and lower all-round 1Q20 1Q21 BAU^ FY21 Target provisions, although loan growth was muted Expect growth to remain uneven and there ROTCE* 4.4% 11.4% 8-9% remain headwinds to topline growth trajectory Loan growth expected
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 1Q21 (RM ’mil) 4Q20 Q-o-Q 1Q20 Y-o-Y BAU^ Net interest income 3,468 3,351 3.5% 3,212 8.0% Non interest income 1,333 1,365 (2.3%) 931 43.2% Non interest income (Reported) 2,489 1,365 82.3% 931 167.3% Operating income 4,801 4,716 1.8% 4,143 15.9% Overhead expenses (2,338) (2,329) 0.4%
Slide 31: NOII breakdown
NOII breakdown 1Q21 (RM ’mil) 4Q20 Q-o-Q 1Q20 Y-o-Y BAU^ Fee & commission 650 558 16.5% 565 15.0% Brokerage 1 1 0.0% 2 (50.0%) Asset management and security services 9 7 28.6% 5 80.0% Trading & FX 622 639 (2.7%) 337 84.6% Dividend income 15 18 (16.7%) 9 66.7% Other income 36 142 (74.6%) 13 177.8% To
Slide 32: Key Ratios
Key Ratios 1Q21 (%) 4Q20 Q-o-Q 1Q20 Y-o-Y BAU^ ROE ~ 9.3 1.5 ▲ 3.7 ▲ NIM ~* 2.52 2.37 ▲ 2.44 ▲ Non-interest income / total income 27.8 28.9 ▼ 22.5 ▲ Cost to income 48.7 49.4 ▼ 56.0 ▼ Allowance coverage (including regulatory reserve) 102.9 93.4 ▲ 75.9 ▲ Allowance coverage (excluding regulatory reserv
Slide 33: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Loan Exposure: Borrowers Status: 2.7% of total Group gross loans Impaired Thailand 31% Normal 8% 56% Singapore 14% Watch List (M & H) Indonesia 31 Mar-21 13% 1% RM9.7bil Malaysia Segmental Exposure: 77% Upstream Oil Traders 3% 10% As at Mar-21, the O&G impairment ratio stood
Slide 34: PBT by Segments
PBT by Segments 1Q21 PBT (RM ’mil) 4Q20 Q-o-Q 1Q20 Y-o-Y BAU^ Consumer Banking (35.3%) 615 (128) 580.5% 508 21.1% Commercial Banking (16.8%) 293 45 551.1% (140) 309.3% Wholesale Banking (35.8%) 623 235 165.1% 147 323.8% Corporate Banking (11.6%) 202 26 676.9% 248 (18.5%) Treasury & Markets ~ (21.3%)
Slide 35: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 1Q21 4Q20 Q-o-Q 1Q20 Y-o-Y Malaysia (RM ’mil) 557 (46) >1,000% 335 66.3% Indonesia (IDR ’bil) (63) (209) 69.9% 286 (122.0%) Thailand (THB ’mil) 328 (186) 276.3% 374 (12.3%) Singapore (SGD ’mil) 6 - 100.0% 9 (33.3%) Others * (RM ’mil) 15 5 200.0% 11 36.4% P
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 5.2% 0.2% Consumer Gross Loans 1.6% 0.7% Mortgages 8.5% 1.8% Mortgages 5.2% 1.8% Term loans 0.3% (2.7%) Auto 5.4% 1.4% Auto 8.3% 0.6% Credit cards (7.3%) (2.7%) Credit cards (14.5%) (4.1%) Consumer Deposi
Slide 37: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 1Q21 4Q20 Q-o-Q 1Q20 Y-o-Y Net interest income 3,269 3,213 1.7% 3,068 6.5% Non interest income 1,300 865 50.3% 1,151 12.9% Operating income 4,569 4,078 12.0% 4,219 8.3% Overhead expenses (2,012) (2,005) (0.3%) (2,016) (0.2%) PPOP 2,557 2,073 23.3% 2,203 16.1%
Slide 38: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 1Q21 4Q20 Q-o-Q 1Q20 Y-o-Y ROE ^ 10.5 1.5 ▲ 11.2 ▼ NIM ^ 5.1 4.7 ▲ 5.0 ▲ Cost to Income 44.0 49.1 ▼ 47.8 ▼ Loan Loss Coverage # 194.9 194.3 ▲ 191.1 ▲ Allowance Coverage 115.2 114.6 ▲ 130.0 ▼ Loan Loss Charge ^ 3.0 3.8 ▼ 1.5 ▲ Gross Impaired Loans Ratio 6.3 6
Slide 39: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 1Q21 4Q20 Q-o-Q 1Q20 Y-o-Y (THB 'mil) Net interest income 2,464 2,589 (4.8%) 2,830 (12.9%) Non interest income 1,047 834 25.6% 1,412 (25.9%) Operating income 3,511 3,423 2.6% 4,242 (17.2%) Overhead expenses (2,081) (1,983) (4.9%) (2,461) 15.4% PPO
Slide 40: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 1Q21 4Q20 Q-o-Q 1Q20 Y-o-Y ROE ^ 3.3 (1.7) ▲ 10.6 ▼ NIM ^ 3.2 3.1 ▲ 3.3 ▼ Cost to Income 59.3 57.9 ▲ 58.0 ▲ Loan Loss Coverage ** 98.9 93.3 ▲ 88.6 ▲ Loan Loss Charge ^ 0.5 2.8 ▼ 1.0 ▼ Gross NPL ratio ** 4.8 4.6 ▲ 5.3 ▼ ROA 0.3 (0.2) ▲ 1.0 ▼ Loan to Deposit 10
Slide 41: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 1Q21 1Q20 1Q21 1Q20 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 22.0% 2 34.7% 1 DCM 5.0% 9 10.9% 6 Sukuk 24.7% 2 23.2% 1 M&A - - 0.4% 20 M&A - - 14.5% 1 Syndication ^ 19.4% 1 0.8% 12 Syndication ^ 9.6% 4 - - IPO 1.2% 18 - - IPO
Slide 42: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 1Q21 1Q20 1Q21 1Q20 Market Market ASEAN Market Market Rank Rank Rank Rank Share Share Share Share M&A - - - - DCM 11.7% 1 14.5% 1 Syndication ^ - - - - M&A - - 1.6% 19 IPO - - - 88 Syndication ^ 2.5% 12 0.6% 33 ECM - - - 110 IPO 2.3% 13 1.7% 17 ECM 3.5% 8 13.0% 1 1Q21