Slide 1: Analyst Presentation 1H18 Results
Analyst Presentation 1H18 Results CIMB Group Holdings 29 August 2018
Slide 2: Key Financial Highlights
Key Financial Highlights Net Profit ^ (RM) Net ROE *^ Gross Loan ~ (RM) 2,359mil 9.7% 329.9bn +3.3% Y-o-Y -20bps Y-o-Y +3.4% Y-o-Y Cost-to-Income ^ Loan Loss Charge * CET1 51.3% 0.45% 11.9% -120bps Y-o-Y -21bps Y-o-Y Flat Y-o-Y Notes: ^ Includes CSI gain of RM163mil. Excludes CPAM & CPIAM gain of RM
Slide 3: Key Business/Operational Highlights
Key Business/Operational Highlights Wholesale & Capital Markets quiet post GE-14 Completed partial sale of CPAM & CPIAM. Wholesale Revenue (RM ’mil) Recognised RM928 mil gain and total CET1 uplift of 15bps 2,893 2,324 Consumer PBT remains strong (RM ’mil) 1,857 +34.7% Y-o-Y 1,601 1,236 1,088 818 783
Slide 4: PBT By Segment
PBT By Segment ^ Consumer Banking continues to perform strongly Commercial Banking improved on lower 1H18 provisions Group PBT RM3,274mil ^ Wholesale Banking impacted by weaker markets 7.4% GAMI was steady, with Group Funding higher from gain on sale of 50% of CSI Consumer Commercial Wholesa
Slide 5: PBT By Country
PBT By Country Malaysia: Consumer the main driver as markets were much weaker in 2Q Indonesia: Performed well although contribution affected by FX. Excluding FX +8.6% YoY ^ Thailand: Progressive growth in Consumer and lower provisions Singapore: Improved from deconsolidation of CSI. QoQ affe
Slide 6: 1H18 Financials
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Slide 7: Quarterly Earnings Trend
Quarterly Earnings Trend RM ’mil ^ ~ * Notes: ^ Includes CSI gain of RM152mil ~ Excludes CPAM & CPIAM gain of RM928mil and includes CSI gain of RM11mil *Annualised 7
Slide 8: Operating Income
Operating Income 1H18 2Q18 (RM ‘mil) Y-o-Y Q-o-Q 1H18 operating income BAU^ BAU^ affected by weak NoII in Net interest income 5,869 (4.8%) 2,931 (0.2%) 2Q. Including the CPAM & CPIAM gain, operating income was Non interest income 2,370 (6.1%) 1,005 (26.4%) +5.5% 2Q18 impacted by Total 8,239 (5.2
Slide 9: Operating Expenses
Operating Expenses (RM ‘mil) 1H18 Y-o-Y 2Q18 Q-o-Q Cost management efforts continue to yield Personnel 2,422 (7.0%) 1,176 (5.6%) results Cost reduction mainly Establishment 974 (11.9%) 489 0.8% from deconsolidation of CSI (c.RM150m per quarter) and FX impact Marketing 134 (10.1%) 76 31.0% Excl
Slide 10: Loan Provisions
Loan Provisions -29.4% Y-o-Y -14.0 % Q-o-Q Improvement from Consumer (-53.0% YoY) and Commercial (-34.4% YoY) RM ’mil Wholesale Banking provisions higher YoY from writebacks in 1H17, but 30.1% lower QoQ Allowance coverage improved to 106.8% Allowance • Improvement in LLC Coverage (%) ^ mainly
Slide 11: Gross Loans
Gross Loans RM ’bil Jun-18 Y-o-Y Q-o-Q Loans-to-Deposit Ratio (%) Consumer Banking 171.5 4.0% 1.4% Commercial Banking 42.7 1.4% 0.9% Wholesale Banking 115.7 3.1% 3.6% + Total 329.9 3.4% 2.1% Loan Growth by Country (Y-o-Y) +~ ^ ** +9.4% +6.3% Others -6.7% 30 Jun-18 # RM329.9bil ^ ^ ~ +3.0% +11.0% +7.
Slide 12: Deposits
Deposits RM ’bil Jun-18 Y-o-Y Q-o-Q CASA Ratio (%) Consumer Banking 164.6 (0.2%) (0.9%) Commercial Banking 42.1 (6.9%) 0.2% Wholesale Banking 147.3 6.1% (5.2%) Total 354.0 1.5% (2.6%) Deposits Growth by Country (Y-o-Y) ^ ** +4.4% +2.7% Others +3.6% 30 Jun-18 RM354.0bil ^ ^ ~ +9.1% +1.9% +4.7% Notes:
Slide 13: Capital and Liquidity Management
Capital and Liquidity Management Total Capital CET1 strengthened to 11.9% (+20bps QoQ) Partial disposals of CSI and CPAM & CPIAM provided 14bps and 15bps CET1 uplift, respectively CET1 target remains at ^ # ~ 12.0% for end-2018 Liquidity Coverage Ratio LCR comfortably above 100% for all bank
Slide 14: PBT by Segments
PBT by Segments 1H18 2Q18 (RM ‘mil) Y-o-Y Q-o-Q BAU^ BAU^ Consumer Banking (49.2%) 1,611 34.7% 763 (10.0%) Commercial Banking (9.0%) 295 19.9% 173 41.8% Wholesale Banking (27.9%) 914 (26.2%) 424 (13.5%) Corporate Banking (21.3%) 697 (10.8%) 364 9.3% Treasury & Markets ~ (5.4%) 176 (60.5%) 53 (56.9%)
Slide 15: Consumer Banking
Consumer Banking (RM ‘mil) 1H18 Y-o-Y 2Q18 Q-o-Q Net interest income 3,007 2.7% 1,513 1.3% Non interest income 1,067 9.3% 486 (16.4%) Operating income 4,074 4.4% 1,999 (3.7%) Gross Loans* RM171.5bil Overhead expenses (2,204) 2.3% (1,110) 1.5% 4.0% PPOP 1,870 6.9% 889 (9.4%) (Provisions) / Writeback
Slide 16: Commercial Banking
Commercial Banking (RM ‘mil) 1H18 Y-o-Y 2Q18 Q-o-Q ^ Net interest income 839 (5.9%) 419 (0.2%) Non interest income 187 (14.2%) 91 (5.2%) Operating income 1,026 (7.6%) 510 (1.2%) Gross Loans* RM42.7bil Overhead expenses (550) (6.5%) (264) (7.7%) 1.4% PPOP 476 (8.8%) 246 7.0% (Provisions) / Writeback
Slide 17: Wholesale Banking
Wholesale Banking (RM ‘mil) 1H18 Y-o-Y 2Q18 Q-o-Q ^ Net interest income 1,601 (13.8%) 783 (4.3%) Non interest income 723 (30.2%) 305 (27.0%) Operating income 2,324 (19.7%) 1,088 (12.0%) Gross Loans* RM115.7bil Overhead expenses (1,114) (20.8%) (539) (6.3%) 3.1% PPOP 1,210 (18.6%) 549 (16.9%) (Provis
Slide 18: Group Asset Management & Investments
Group Asset Management & Investments Public Markets AUM (RM ‘mil) 1H18 Y-o-Y 2Q18 Q-o-Q (RM ’mil) Public Markets 83 29.7% 42 - +14.4% Y-o-Y -0.3% Q-o-Q Private Markets 17 (29.2%) (2) (111.1%) Direct Investments & 79,950 79,677 15 36.4% (4) (122.2%) Others Private Equity Fund (1) (107.7%) (1) (>100.0
Slide 19: CIMB Islamic
CIMB Islamic Islamic Financing ^ (RM ‘mil) 1H18 Y-o-Y 2Q18 Q-o-Q RM ’bil Net financing income 897 21.1% 463 6.7% 30.9% Y-o-Y +5.0% Q-o-Q Non financing income 238 7.2% 128 16.4% Operating income 1,135 17.9% 591 8.6% Overhead expenses (365) 7.7% (178) (4.8%) PPOP 770 23.4% 413 15.7% (Provisions) / Wri
Slide 20: Other Updates
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Slide 21: T18 Financial Targets Scorecard
T18 Financial Targets Scorecard T18 Financial Progress T18 Targets Remarks Cost-to- On track to Income meet target CET1 On track to meet target ^ Dependent ROE on market conditions Income Contribution On track to From Consumer meet target & Commercial 2015* 2016 2017 1H18 BAU # Notes: * Based on BAU
Slide 22: Corporate Responsibility
Corporate Responsibility Grants Disbursed as at Jun 2018 CIMB Non-CIMB Foundation Foundation* RM 3,233,048 RM 1,849,573 Brightening Lives Programme Ramadan Shopping with Mobile Ramadan Bazaar for Rural Communities Orphan, Indonesia Note: * Including CIMB Islamic, CIMB Bank, Indonesia, Thailand and o
Slide 23: Final Remarks
Final Remarks
Slide 24: Final Remarks
Final Remarks 2018 targets within reach but 1H18 FY18 challenged by macro BAU^ Target uncertainties ROE 9.7% # 10.5% Loan growth remain on track to meet target Dividend Sustained focus on cost, asset 51.6% 40% - 60% Payout Ratio quality and capital management Total Loans 3.4% Beyond 2018 str
Slide 25: Appendices
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Slide 26: Earnings Summary
Earnings Summary 1H18 2Q18 (RM ’mil) 1H17 Y-o-Y 1Q18 Q-o-Q BAU^ BAU^ Net interest income 5,869 6,164 (4.8%) 2,931 2,938 (0.2%) Non interest income 2,370 2,524 (6.1%) 1,005 1,365 (26.4%) Operating income 8,239 8,688 (5.2%) 3,936 4,303 (8.5%) Overhead expenses (4,228) (4,559) (7.3%) (2,087) (2,141) (2
Slide 27: Key Ratios
Key Ratios 1H18 2Q18 (%) 1H17 Y-o-Y 1Q18 Q-o-Q BAU^ BAU^ ROE ~ 9.7 9.9 8.8 10.2 NIM ~** 2.52 2.71 2.48 2.57 Non-interest income / total income 28.8 29.1 25.5 31.7 Cost to income 51.3 52.5 53.0 49.8 Allowance coverage (including regulatory reserve) 106.8 91.1 106.8 105.3 Allowance coverage (excluding
Slide 28: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 1H18 1H17 Y-o-Y 2Q18 1Q18 Q-o-Q Malaysia (RM ‘mil) 1,154 989 16.7% 536 618 (13.3%) Indonesia (IDR ‘bil) 706 103 585.4% 357 349 2.3% Thailand (THB ‘mil) 1,459 981 48.7% 663 796 (16.7%) Singapore (SGD ‘mil) 21 13 61.5% 13 8 62.5% Others * (RM ‘mil) 13 8 62.5
Slide 29: 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 * 8.0% 1.7% Consumer Gross Loans* (5.0%) (0.4%) Mortgages 10.1% 2.0% Mortgages 8.9% 1.9% Term loans 5.9% 1.3% Auto (37.3%) (7.5%) Auto 4.2% 2.1% Credit cards 0.1% 0.7% Credit cards 3.6% - Consumer Deposit
Slide 30: Group Funding
Group Funding 1H18 2Q18 (RM ‘mil) 1H17 Y-o-Y 1Q18 Q-o-Q BAU^ BAU^ Net interest income 408 473 (13.7%) 210 198 6.1% Non interest income 181 71 154.9% 28 153 (81.7%) Operating income 589 544 8.3% 238 351 (32.2%) Overhead expenses (210) (264) (20.5%) (103) (107) (3.7%) PPOP 379 280 35.4% 135 244 (44.7%
Slide 31: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary (IDR ‘bil) 1H18 1H17 Y-o-Y 2Q18 1Q18 Q-o-Q Net interest income 5,988 6,329 (5.4%) 2,955 3,033 (2.6%) Non interest income 1,864 1,406 32.6% 872 992 (12.1%) Operating income 7,852 7,735 1.5% 3,827 4,025 (4.9%) Overhead expenses (3,879) (3,752) 3.4% (1,924) (1,955) (1.6%)
Slide 32: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 1H18 1H17 Y-o-Y 2Q18 1Q18 Q-o-Q ROE ^ 9.4 7.9 9.4 9.4 NIM ^ 5.09 5.87 5.03 5.10 Cost to Income 49.4 48.5 50.3 48.6 Loan Loss Coverage # 106.8 109.3 106.8 105.5 Allowance Coverage 81.7 83.6 81.7 79.1 Loan Loss Charge ^ 1.7 2.4 1.5 1.8 Gross Impaired Loans Rat
Slide 33: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 1H18 1H17 Y-o-Y 2Q18 1Q18 Q-o-Q (THB ‘mil) Net interest income 5,235 4,977 5.2% 2,640 2,596 1.7% Non interest income 1,560 1,406 11.0% 773 787 (1.8%) Operating income 6,795 6,383 6.5% 3,413 3,382 0.9% Overhead expenses (3,874) (3,419) 13.3% (1,941
Slide 34: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 1H18 1H17 Y-o-Y 2Q18 1Q18 Q-o-Q ROE ^ 2.2 3.5 2.3 2.1 NIM ^ 3.87 3.81 3.78 3.98 Cost to Income 57.0 53.6 56.9 57.2 Loan Loss Coverage ** 90.1 84.0 90.1 92.3 Loan Loss Charge ^ 2.3 2.4 2.3 2.3 Gross NPL ratio ** 5.8 5.4 5.8 5.2 Net NPL ratio ** 2.9 2.9 2.9 2.7
Slide 35: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 1H18 1H17 1H18 1H17 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 23.1% 1 32.4% 1 DCM 9.4% 4 10.9% 5 Sukuk 23.7% 1 30.6% 1 M&A - - 3.6% 3 M&A 9.4% 2 6.6% 2 Syndication ^ 8.5% 2 1.7% 15 Syndication ^ - - 4.5% 7 IPO 5.7% 8 3.5% 10
Slide 36: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 1H18 1H17 1H18 1H17 Market Market ASEAN Market Market Rank Rank Rank Rank Share Share Share Share M&A 0.7% 26 0.4% 29 DCM 10.0% 1 14.1% 1 Syndication ^ - - - - M&A 1.7% 18 5.4% 8 IPO - - 0.2% 56 Syndication ^ 3.0% 11 1.3% 20 ECM 0.4% 27 0.2% 64 IPO 1.0% 25 13.0% 2 Cas