Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — 9M23 Earnings Presentation
42 slides from Cimb Group Holdings Bhd's earnings presentation, Nov 30, 2023
Slide 1: Analyst Presentation 9M23 Results
Analyst Presentation 9M23 Results CIMB Group Holdings 30 November 2023 FORWARD Your Ambitions 1
Slide 2: 01 Overview
01 Overview 2 2
Slide 3: Key Highlights
Key Highlights YoY topline growth Sustained loan and Opex under watch Asset quality under 9M23 net profit remains positive deposit growth with with CIR marginally control with 9M23 growth remains despite flattish QoQ CASA increasing higher at 46.3% LLC significantly strong with ROE of lower at 32bps
Slide 4: Key Business/Operational Highlights
Key Business/Operational Highlights Strong revenue growth YoY driven by positive portfolio Continued cost discipline amidst inflationary pressure diversification 46.3% Revenue (RM 'mil) QoQ YoY 46.1% Malaysia +6.2% +1.1% CIR -0.5% Q-o-Q +7.0% Y-o-Y 15,639 Indonesia -11.4% +6.3% (RM ‘mil) +7.0% 14,61
Slide 5: PBT By Segment
PBT By Segment Consumer PBT +30.2% QoQ from improved NII and provisions; CIMB Digital Assets & +3.1% YoY from lower provisions Group Funding 17% Commercial PBT fell 21.4% QoQ due to higher top-up Consumer provisions in Malaysia. 9M23 performance remained strong at Banking 9M23 +16.0% YoY from toplin
Slide 6: PBT By Country
PBT By Country Others Strong Malaysia YoY performance from lower provisions. QoQ Singapore 0.2% PBT was relatively flat with improved revenue offset by higher 11% provisions and opex Thailand 4% Indonesia PBT fell 4.5% QoQ due to lower NOII given absence 9M23 of NPL sale. However, YoY performance re
Slide 7: Operating Income
Operating Income NII +3.0% QoQ from slight NIM expansion and (RM 'mil) 3Q23 Q-o-Q 9M23 Y-o-Y loan growth; -1.8% YoY due to 24bps NIM compression from higher cost of deposits Net interest income 3,757 3.0% 10,925 (1.8%) QoQ NIM sustained driven by Malaysia and Singapore Non interest income 1,551 (8.1
Slide 8: Operating Expenses
Operating Expenses Opex +3.6% QoQ on the back of higher (RM 'mil) 3Q23 Q-o-Q 9M23 Y-o-Y Marketing and A&G expenses due to absence of writebacks, while YoY increased by 7.4% Personnel 1,479 (1.1%) 4,370 6.0% due to cost inflation, mainly on higher Establishment 213 0.0% 633 9.1% personnel cost Techno
Slide 9: Total Provisions
Total Provisions Total provisions significantly improved (RM 'mil) 3Q23 2Q23 Q-o-Q 9M23 9M22 Y-o-Y QoQ and YoY from lower Consumer provision given moderate credit Loan Impairment 297 558 (46.8%) 1,161 1,231 (5.7%) environment Commitment & Commitments & contingencies rose (69) (150) 54.0% (141) 39 (4
Slide 10: Asset Quality
Asset Quality Loan Loss Charge (bps) ~ LLC improved by 18bps QoQ due to lower loan provisions from 70 151 Indonesia and Singapore 48 73 9M23 LLC improved to 32bps 39 45 51 32 37 and on track to exceed FY23 21 targets FY19 FY20 FY21 FY22 9M23 Gross Impaired Loans Ratio (%) GIL fell 10bps QoQ and YTD
Slide 11: Gross Loans
Gross Loans Loans-to-Deposit Ratio (RM 'bil) 30 Sep-23 Q-o-Q Y-o-Y Consumer Banking 224.6 1.7% 6.1% 89.9% Commercial Banking 69.8 0.9% 6.1% 88.4% 88.3% 88.1% 87.8% Wholesale Banking 137.4 0.4% 6.8% Total 431.8 1.1% 6.4% Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Loan Growth by Country (Y-o-Y) Others Singapo
Slide 12: Deposits
Deposits CASA Ratio (RM 'bil) 30 Sep-23 Q-o-Q Y-o-Y 42.5% Consumer Banking 214.0 2.5% 17.7% 39.9% Commercial Banking 88.3 0.1% 11.3% 39.2% Wholesale Banking 188.0 (0.8%) (1.3%) 37.9% 38.5% Total Deposits 490.3 0.8% 8.6% Total CASA 192.2 2.6% 2.1% Dec-21 Dec-22 Mar-23 Jun-23 Sep-23 WY Deposit Growth
Slide 13: Capital and Liquidity Management
Capital and Liquidity Management CET1 increased 20bps QoQ and Total Capital 18.1% 17.8% 17.9% 30bps YoY to 14.4% as at Sep-23 Tier 2 3.2% 2.8% 2.8% The QoQ improvement emanated 0.8% 0.8% 0.8% from the higher PAT, partially offset Tier 1 by lower FX translation reserve and CET1 lower FVOCI reserve fr
Slide 14: Consumer Banking
Consumer Banking Personal (RM 'mil) 3Q23 Q-o-Q 9M23 Y-o-Y Financing Others 3% 4% 1,749 3.9% 5,003 2.0% Credit Cards Net interest income 4% Non interest income 518 3.8% 1,550 (2.7%) Auto 12% Gross Loans Operating income 2,267 3.9% 6,553 0.8% RM224.6 bil Term 6.1% Overhead expenses (1,278) 2.2% (3,714
Slide 15: Commercial Banking
Commercial Banking (RM 'mil) 3Q23 Q-o-Q 9M23 Y-o-Y Others Singapore 4% 7% Net interest income 774 (1.9%) 2,337 4.2% Thailand Non interest income 221 23.5% 609 22.3% 2% Indonesia Gross Loans Operating income 995 2.8% 2,946 7.5% 25% RM69.8 bil Overhead expenses (487) 2.1% (1,422) 9.5% 6.1% Malaysia 62
Slide 16: Wholesale Banking
Wholesale Banking (RM 'mil) 3Q23 Q-o-Q 9M23 Y-o-Y Others 2% Net interest income 642 (3.5%) 2,045 (26.5%) Singapore 20% Non interest income 707 (20.6%) 2,269 78.1% Gross Loans Operating income 1,349 (13.2%) 4,314 6.3% Thailand Malaysia RM137.4 bil 9% 51% Overhead expenses (555) (4.8%) (1,695) 7.9% 6.
Slide 17: CIMB Digital Assets & Group Funding
CIMB Digital Assets & Group Funding Touch ‘n Go Digital (RM 'mil) 3Q23 Q-o-Q 9M23 Y-o-Y Total Registered Users Annual Transacting (mil) Users (mil) Net interest income 592 16.3% 1,540 29.2% +18.0% Y-o-Y +20.9% Y-o-Y Non interest income 105 (12.5%) 286 123.4% 21.6 11.0 Operating income 697 10.8% 1,82
Slide 18: CIMB Islamic
CIMB Islamic Islamic Financing (RM ‘mil) 3Q23 Q-o-Q 9M23 Y-o-Y (RM ‘bil) Net financing income 858 4.1% 2,412 (3.7%) +3.1% Q-o-Q +13.5% Y-o-Y Non financing income 186 6.3% 547 48.6% 132.2 136.3 Operating income 1,044 4.5% 2,959 3.0% 120.1 Overhead expenses (315) (6.0%) (1,029) 16.0% PPOP 729 9.8% 1,9
Slide 19: 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> 19 19
Slide 20: Forward23+ 2023 Strategic Plan
Forward23+ 2023 Strategic Plan 20
Slide 21: Asset Composition and Growth
Asset Composition and Growth Growth momentum continued to improve on areas we would like to invest Asset Composition Gross Loan Composition CDA and Year Consumer Commercial Wholesale Group Year Consumer Commercial Wholesale Funding Dec-19 33% 11% 43% 12% Dec-19 50% 18% 32% Sep-23 31%▼ 10%▼ 43% = 17%
Slide 22: TSR and ROE Journey and Trajectory
TSR and ROE Journey and Trajectory 70-130 bps Annualised FBM CIMB Return (%) KLCI 9M23 -1.4% -6.3% From 11.5- 17.5% -1.3% 31/5/20 10.2- 12.5% 10.7% 11.0% 8.5% 1Y 11.4% 1.9% 3Y 26.3% -1.8% 2019 Portfolio Opex ECL Capital NIM 9M23 2023 Drivers 2024 5Y 2.3% -4.6% ROE Reshaping Optimisation Reduction Ac
Slide 23: Digital Reliability/Customer Centricity
Digital Reliability/Customer Centricity Platform availability maintains above target with steady growth in digital transactions Clicks & Bizchannel Digital Platform Incidences Technology & Operational Investments % Availability No. Unscheduled Technology Capex Downtimes RM’mil Country FY23 Malaysia
Slide 24: Sustainability 3Q23 Update
Sustainability 3Q23 Update The Cooler Earth • Co-financed Asia's first SGD$180 million Sustainability- Sustainability Summit – Linked Loan in the self-storage industry to StorHub Self Hosted CIMB’s fifth Summit Storage Group. The loan is tied to StorHub's sustainability KPIs themed Sustainability In
Slide 25: 03 Final Remarks
03 Final Remarks <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only> 25
Slide 26: Final Remarks
Final Remarks 9M23 on a good trajectory driven by robust FY24 NOII, sustained loan and deposit growth with FY23 FY23 9M23 Forward23+ CASA and deposits efforts showing initial Guidance Targets Ambition positive results Top quartile We are on track to meet the FY23 targets ROE * 10.7% 10.2-11.0% 10.2-
Slide 27: 04 Appendices
04 Appendices <Specify Data Classifications one of the following: 1) Highly Confidential 2) Confidential 3) Proprietary/Internal Use Only>
Slide 28: Exceptional Items
Exceptional Items (RM 'mil) 3Q23 2Q23 1Q23 9M23 3Q22 2Q22 1Q22 9M22 PBT BAU 2,492 2,482 2,236 7,210 2,210 2,157 2,101 6,468 Gain on deconsolidation Touch ‘n Go Digital - - - - - - - - Gain / Loss on dilution of interest on disposal of - - - - - - - - associates Loss on disposal of 25% CGS-CIMB - - -
Slide 29: Earnings Summary
Earnings Summary 9M22 3Q22 (RM ’mil) 3Q23 2Q23 Q-o-Q 9M23 Y-o-Y Y-o-Y BAU^ BAU^ Net interest income 3,757 3,646 3.0% 10,925 11,125 (1.8%) 3,901 (3.7%) Non interest income 1,551 1,688 (8.1%) 4,714 3,493 35.0% 1,096 41.5% Operating income 5,308 5,334 (0.5%) 15,639 14,618 7.0% 4,997 6.2% Overhead expen
Slide 30: Key Ratios
Key Ratios 9M22 3Q22 (%) 3Q23 2Q23 Q-o-Q 9M23 Y-o-Y Y-o-Y BAU^ BAU^ ROE ~ 10.9 10.7 ▲ 10.7 10.4 ▲ 10.7 ▲ Reported ROE 10.9 10.7 ▲ 10.7 9.1 ▲ 9.2 ▲ NIM ~* 2.25 2.24 ▲ 2.25 2.49 ▼ 2.55 ▼ Non-interest income / total income 29.2 31.6 ▼ 30.1 23.9 ▲ 21.9 ▲ Cost to income 46.9 45.1 ▲ 46.3 46.1 ▲ 45.5 ▲ All
Slide 31: NOII breakdown
NOII breakdown (RM ’mil) 3Q23 2Q23 Q-o-Q 9M23 9M22 Y-o-Y Fee & commission 654 616 6.2% 1,876 1,909 (1.7%) Brokerage 1 (7) (114.3%) 1 1 0.0% Asset management and security services 6 6 0.0% 17 20 (15.0%) Trading & FX 806 841 (4.2%) 2,392 1,322 80.9% Dividend income 18 30 (40.0%) 55 42 31.0% Other inco
Slide 32: PBT by Segments
PBT by Segments 9M22 PBT (RM ’mil) 3Q23 2Q23 Q-o-Q 9M23 Y-o-Y BAU^ Consumer Banking (32.5%) 932 716 30.2% 2,343 2,273 3.1% Commercial Banking (17.6%) 331 421 (21.4%) 1,270 1,095 16.0% Wholesale Banking (32.6%) 781 865 (9.7%) 2,348 2,393 (1.9%) Corporate Banking (19.7%) 511 554 (7.8%) 1,420 1,338 6.1
Slide 33: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 3Q23 2Q23 Q-o-Q 9M23 9M22 Y-o-Y Malaysia (RM ’mil) 637 504 26.4% 1,624 1,512 7.4% Indonesia (IDR ’bil) 859 455 88.8% 1,912 1,349 41.7% Thailand (THB ’mil) (61) 183 (133.3%) 327 1,668 (80.4%) Singapore (SGD ’mil) 11 7 57.1% 24 36 (33.3%) Others * (RM ’mil)
Slide 34: Asset Quality & Moratorium
Asset Quality & Moratorium Gross Loans Bonds Covid-19 Impacted Sectors Sectors 30 Sep-23 30 Sep-23 Hospitality 1.0% 0.1% Retail 2.6% 0.1% Aviation 0.2% 0.5% Leisure 0.5% 0.4% Total: Directly impacted sectors 4.4% 1.1% vs 30 Jun-23 4.4% 1.1% Others: Indirectly impacted sectors 20.0% 4.4% vs 30 Jun-23
Slide 35: Asset Quality: Oil & Gas
Asset Quality: Oil & Gas Loan Exposure: Borrowers Status: 1.5% of total Group gross loans Impaired 24% Thailand 7% Watch List (M & H) 0% Singapore Normal 19% 76% Indonesia Segmental Exposure: 6% Oil Traders Malaysia 5% Upstream 68% 12% As at Sep-23, the O&G impairment ratio stood at 23.6% Downstream
Slide 36: Consumer Banking Key Highlights
Consumer Banking Key Highlights Malaysia Q-o-Q Y-o-Y Indonesia ^ Q-o-Q Y-o-Y Consumer Gross Loans 2.1% 4.8% Consumer Gross Loans 1.2% 5.9% Mortgages 2.7% 8.9% Mortgages 1.0% 2.7% Term loans (0.7%) (9.9%) Auto 2.3% 11.5% Auto 3.2% 7.9% Credit cards (0.1%) 2.2% Credit cards 3.4% 15.1% Consumer Deposit
Slide 37: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR 'bil) 3Q23 2Q23 Q-o-Q 9M23 9M22 Y-o-Y Net interest income 3,352 3,427 (2.2%) 10,187 9,974 2.1% Non interest income 1,136 1,608 (29.4%) 4,320 4,111 5.1% Operating income 4,488 5,035 (10.9%) 14,507 14,085 3.0% Overhead expenses* (2,077) (2,119) (2.0%) (6,414) (6,251)
Slide 38: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 3Q23 2Q23 Q-o-Q 9M23 9M22 Y-o-Y ROE ^* 15.3 15.8 ▼ 15.4 12.9 ▲ NIM ^ 4.33 4.52 ▼ 4.52 4.62 ▼ Cost to Income* 46.3 42.1 ▲ 44.2 44.4 ▼ Loan Loss Coverage # 267.1 261.9 ▲ 267.1 208.8 ▲ Allowance Coverage 108.8 110.7 ▼ 108.8 117.9 ▼ Loan Loss Charge ^ 0.4 1.8 ▼
Slide 39: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 3Q23 2Q23 Q-o-Q 9M23 9M22 Y-o-Y (THB 'mil) Net interest income 2,476 2,533 (2.3%) 7,355 7,081 3.9% Non interest income 689 797 (13.6%) 2,967 3,629 (18.2%) Operating income 3,165 3,330 (5.0%) 10,322 10,710 (3.6%) Overhead expenses (2,200) (2,093) 5
Slide 40: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 3Q23 2Q23 Q-o-Q 9M23 9M22 Y-o-Y ROE ^ 3.1 4.6 ▼ 5.0 8.5 ▼ NIM ^ 2.6 2.7 ▼ 2.6 2.7 ▼ Cost to Income 69.5 62.8 ▲ 60.6 53.2 ▲ Loan Loss Coverage ** 111.3 122.1 ▼ 111.3 113.6 ▼ Loan Loss Charge ^ 0.8 0.9 ▼ 1.0 0.9 ▲ Gross NPL ratio ** 3.2 3.1 ▲ 3.2 3.4 ▼ ROA 0.3
Slide 41: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 9M23 9M22 9M23 9M22 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 27.2% 1 22.0% 2 DCM 6.3% 8 6.7% 7 Sukuk 28.9% 1 23.1% 2 M&A - - 5.9% 9 M&A 41.4% 1 22.2% 4 Syndication ^ 2.9% 11 3.9% 7 Syndication ^ 11.1% 5 14.0% 2 IPO - - 2.7%
Slide 42: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 9M23 9M22 9M23 9M22 Asia ASEAN Market Market Market Market Rank Rank (ex-Japan) * Rank Rank Share Share Share Share DCM 13.3% 1 10.2% 1 DCM 0.6% 39 0.6% 39 M&A 2.1% 15 2.2% 17 M&A 0.6% 34 0.4% 40 Syndication ^ 2.4% 13 3.1% 10 Syndication ^ 0.5% 43 0.6% 32 IPO 2.3% 12