Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — Investor Day (March 2025)
65 slides from Cimb Group Holdings Bhd's investor day presentation, Mar 5, 2025
Slide 1: Investor Day | 5 March 2025
INVESTOR DAY | 5 MARCH 2025
Slide 2: Forward30 Strategic Plan
Forward30 Strategic Plan Novan Amirudin Investor Day 5 March 2025 2
Slide 3: We are a leading focused ASEAN bank
We are a leading focused ASEAN bank ASEAN corporate network income of 10% >RM300 billion1 Wealth AUM across ASEAN 28 million 33K+ 600+ FX income 15.0% customers people branches YoY 1. Preferred and Private banking 3
Slide 4: We have achieved Forward23+
We have achieved Forward23+ Forward23+ 2020 2021 2022 2023 2024 Ambition Share 4.57 5.11 5.44 8.20 • Reallocate 3.49 price, - capital RM Annualised TSR1 34.6% vs FBM KLCI 0.7% 11.2% • New culture ROE, 8.1% 10.2% 10.7% Top quartile % 2.1% (EPICC) 11.5% – 12.5% CIR, 51.7% • Safeguard the 48.6% 46.9% 4
Slide 5: Current allocation of capital vs returns
Current allocation of capital vs returns % of RWA % of PBT ROE 54% 57% 11.0% 19% 25% 14.6% 12% 13% 19.9% 12% 4% 5.9% 2% 1% 8.4% Others 1% 0% - Group 11.2% 5
Slide 6: ASEAN Network: Opportunity to grow cross-border income
ASEAN Network: Opportunity to grow ASEAN cross-border income Corporate example: Cross-border income contributes to 10% of total corporate segment income 14% Whereas, intra- ASEAN trade 10% amounts to ~25% of total regional 6% trade 5% 5% Deposit Treasury Investment Loans Overall Banking 6
Slide 7: CIMB vs weighted average MIST peers
CIMB vs weighted average MIST peers MIST peers1 2024 50th percentile 75th percentile Best-in-class ROE, % 11.2 11.0 13.0 15.0 CASA Ratio, % 43.1 45.0 51.0 53.0 NOII Ratio, % 31.0 26.0 30.0 32.0 CIR, % 46.7 44.0 38.0 34.0 1. MIST = Malaysia, Indonesia, Singapore, Thailand. Weighted average based on %
Slide 8: Forward30 is designed to navigate a complex and uncertain world
Forward30 is designed to navigate a complex and uncertain world Geopolitics Uncertain economic Gen AI policies 8
Slide 9: CIMB's purpose: Advancing Customers & Society
There is a need for organizations to make lives Simpler, Better, Faster CIMB’s purpose: Advancing Customers & Society 33K+ People ~30M Customers Simpler, better, faster Simpler, better, faster operations while advancing products and services customers and society 9
Slide 10: Our Forward30 plan
Our Forward30 plan Purpose Advancing Customers and Society Society & Priorities People & Culture Customers Sustainability Where to 1 be and Capital and resources: Reallocate and optimise not to be 2 3 Cash: Build deposit Cross-sell: Increase Reimagining franchise returns banking 4 Capabilities: Simp
Slide 11: Reimagining banking: Simpler, Better, Faster in CIMB
Reimagining banking: Bringing to life the power of Simpler, Better, Faster in CIMB 11
Slide 12: Our people: Shifting mindset of our 33K+ people
Our people: Shifting mindset of our 33K+ people to reimagine banking Culture - EPICC Training, development Well-being and mobility • Enabling talent: Empower & • >RM100 million spent annually • Top quartile OHI1 in 2023 & encourage each other on trainings across the Group 2024, from third quartile i
Slide 13: New CRM system: Simpler, better, faster way of working
New CRM system: Simpler, better, faster way of working for Consumer Banking Malaysia 3 legacy systems to 1 2 steps Service Request 1 complete dashboard vs integrated system (SR) creation vs 5 steps multiple screens Legacy CRM CBMY 1 Perform biometric • 500 information fields System Portal 2 Re-perfo
Slide 14: OCTO: Simpler, better, faster banking experience
OCTO: Simpler, better, faster banking experience Regional Account Apply Products – CC, QR Payment Increase Card Limit Linkage CPL, CASA 110 million+ Monthly transactions; up to 70% YoY >50 Upcoming Wealth Portal Credit Card Control Malware Monitoring Flexi Payment Plan features; simplify Integration
Slide 15: TNG Digital: Simpler, better, faster digital solution
TNG Digital: Simpler, better, faster digital solution Enhanced TnG Card SOS Balance Payment + Wealth & PayDirect Remittance • NFC technology •• Automatically Automatically • Accepted at 1.6 •• Higher Higherreturn returnrate rate • Auto-reload covers covers toll toll charges charges million+ merchant
Slide 16: Forward30 ambition: embed ourselves in customers' lives
Forward30 ambition: We need to embed ourselves in all parts of our customers’ lives Lifestyle: Currently present through TNGD Where we want to be Work Banking: Home Where we are Working CASA Capital FX Education Loans Shop CIMB Customers Insurance Wealth Payment Travel Grocery Health 16
Slide 17: Key strategic themes
Key strategic themes Scale Top ROE market • Best-in-class universal bank • Most profitable KBMI3 • Best challenger bank ROE • Undisputed #2 Sharia Bank • ASEAN Corporate hub • Top 3 in efficiency in Indonesia • ASEAN Wealth hub • Bank and digital business ecosystem Transformation Future growth marke
Slide 18: We will deliver sustainable financial performance
We will deliver sustainable financial performance Key Metrics 2024 2027 2030 NPS 12th 1st 5th Top 3 Reduce cost of CASA ratio, % 43.1 45 funds by 10-20 bps NOII ratio, % 31.0 33 – 34 ~75% client franchise income vs CIR, % 46.7 Below 45 Low 40s 65% today Credit cost, bps 25 30 – 40 40 – 50 CET1, % 14
Slide 19: Summary: ROE uplift driven by 4Cs
Summary: ROE uplift driven by 4Cs 1 Capital reallocation and 2 Cash: Build deposit franchise 4 Capabilities: corporate actions Simpler, 3 Cross-sell: Increase returns better, faster ROE, % Top Quartile 11.2 2024 BAU trajectory Portfolio & Strategic Wholesale Wealth, Cost 2030 business partnership ba
Slide 20: Presenters
Presenters [X] – Main presenter [X] – Subject matter expert Khairul Rifaie Haniz Nazlan 1 Group Chief Financial & 2 CEO, Group Consumer Strategy Officer Banking Capital & Cash: Lawrence Loh Resources: Build Deposit Co-CEO, Group Commercial Reallocation & & Transaction Banking Franchise Optimisation
Slide 21: Capital & Resources
Capital & Resources Khairul Rifaie Capital & Resources Cash Cross-sell Investor Day Capabilities (Simpler, Better, Faster) 5 March 2025 21
Slide 22: Optimise group and in-country portfolio through capital and resource reallocation
Forward30 will focus on accelerating growth in areas we are winning Forward23+ • Exited CIMB Thailand Commercial • Exited CIMB Singapore Commodity Financing Optimise group and • Turned around CIMB Indonesia in-country portfolio Commercial Banking through capital and • Accelerated Consumer and intra-
Slide 23: We know where and how to compete
We know where and how to compete – driven by market opportunities, our endowments and probability of successful strategy execution Factors driving capital allocation.. ..present opportunities for value creation.. ..especially in areas of strength for CIMB • Increasing Intra-ASEAN trade volume • Scal
Slide 24: Our ASEAN portfolio is diversified across geographies and segments
Our ASEAN portfolio is diversified well across high growth geographies and segments Returns Delta2 vs Group 2024 ROE Commercial Wholesale Consumer 11.0% 14.6% 19.9% 5.9% - Others1 - - - - Group 11.2% 1. Include BE, EXCO, Group Funding and CDA 2. Scaled-up 24
Slide 25: Capital reallocation will focus on Commercial, Wealth, Singapore and Indonesia
Capital reallocation will focus on Commercial, Wealth, Singapore and Indonesia... 2030 Capital allocation 2024 RWA 2030 Commercial Wholesale Consumer (%) 54 Maintain Growth Accelerate Maintain Growth Maintain Growth 19 Accelerate Accelerate Maintain Growth Accelerate 12 Accelerate Accelerate Acceler
Slide 26: Capital optimisation initiatives including opportunistic moves
...and capital optimisation initiatives including opportunistic moves Sustain 55% Opportunistic Organic Internal Organic dividend capital accretion optimisation accretion payout optimisation CET1, % 14.6 14 – 15 13 – 14 Top quartile ROE, % 12 – 13 11.2 2024 2027 2030 26
Slide 27: Cash
Cash Haniz Nazlan & Lawrence Loh Capital & Resources Cash Cross-sell Investor Day Capabilities (Simpler, Better, Faster) 5 March 2025 27
Slide 28: We have demonstrated strong CASA growth
We have demonstrated strong CASA growth Deposits and CASA, Payment transactions, RM’billion and % Clients, million billion 512 5% 9% 22% 402 57% 2% 66% 28.2 1.4 24% 10% 18.0 19% 0.5 19% 9% 16% 2019 2024 2019 2024 2019 2024 Deposit CASA Retail Non-Retail Retail & Non-Retail X CAGR 28
Slide 29: CASA ratios have moved up across MIST
CASA ratios have moved up across MIST CASA ratio, % Retail Non-Retail X CAGR (CASA Balance) 5% 13% 23% 18% 54.0% 65.0% 39.4% 58.0% 50.8% 72.1% 32.4% 28.9% 2019 2024 2019 2024 2019 2024 2019 2024 6% 4% 17% 27% 56.4% 65.6% 35.7% 48.3% 63.8% 30.8% 33.4% 23.7% 2019 2024 2019 2024 2019 2024 2019 2024 29
Slide 30: We are well positioned to ride on ASEAN's future growth
We are well positioned to ride on ASEAN’s future growth Young and Rising intra-ASEAN Sustainable affluent population trade & economic investment influx integration • ASEAN population accounts >8% • Businesses are increasingly • ASEAN’s strategic position in the of the world population where diversif
Slide 31: Established consumer franchise with key endowments to drive CASA growth
Our established consumer franchise has today brought about key endowments to drive higher CASA growth 1 Comprehensive product suite 2 Multi-channel distribution • Innovative propositions across entire spectrum of • Expansive footprint of over ~650 branches, digital financial services – deposits, len
Slide 32: Holistic customer-centric model to create CASA stickiness
Shifting to a more holistic customer-centric model to create CASA stickiness Attract Acquire Deepen Relationship Retain Ubiquitous 2 CASA-led 1 360 customer 3 4 Forward30 engagement E2E lifecycle persona relationship view for Simpler and faster Focus channels – ASEAN propositions and better cross se
Slide 33: Case study: Seamless SG-MY online remittance
Case study: Seamless SG-MY online remittance with guaranteed best in town FX rates Proposition / Supported by Persona / Digital Competitive strong brand Segment enablement advantage awareness Transaction volume CAGR1 70% • >1.1 million • Best-in-class SGD- • Seamless cross- • Brand recognition in To
Slide 34: Non-retail revenue growth through payments, platform innovation and transaction-led banking
On the non-retail front, we will drive revenue growth through payments, platform innovation and transaction-led banking in ASEAN Scaling Growth Embedding Digital Leveraging Customer’s Payments and Ecosystem Collections Modernised Banking Platform 34
Slide 35: Driving CASA through digital payments and collections
Driving CASA accumulation through digital payments and collections by supporting our customers’ operational flow activities Cross Border Solution Commercial Domestic Cards Real-Time Payment Virtual Cards Virtual Self-Service Accounts Reconciliation Tools Pay Cashflow Management Merchant Acceptance S
Slide 36: Client experiencing seamless Cash Management service
An illustration of client experiencing the value of our seamless Cash Management service A Malaysian multi-industrial, multi-country company CFO Payroll Cards Direct Bank-in (Cheques) FX / Cross Local Fund Border suppliers Transfers Payment Collect Liquidity Pay Virtual Account Bulk Utilities Paymen
Slide 37: RM200 million+ invested in digital banking solutions
We invested RM200 million+ to accelerate our digital banking solutions, which has reached >100K small business customers since launching in 2H2024 Modernised Next Gen BizChannel Platform.. ..delivers a differentiated digital banking experience.. ..across our network Persona driven user experience In
Slide 38: Scaling CASA growth through client-centric ecosystem approach
Scaling our CASA growth through client-centric, transaction-led ecosystem approach Segments Propositions What Differentiates CIMB Simple, real-time • Persona Approach with targeted customer value proposition Sole payment & collections • Embedding CIMB on our customer’s day-to-day operations Propriet
Slide 39: Building a CASA franchise and reducing cost of funds by 10-20bps
We will achieve Forward30 by building a CASA franchise across retail and non-retail, and target to reduce cost of funds by 10 – 20bps Deposits and CASA, % Cost of Funds, % CASA MY Market Share, % Deposit CASA X CAGR 55% 7% (10 – 20 bps) 57% ~15.0 45% 9% 11.9% % 43% 2024 2030 2024 2030 Balance 2030 2
Slide 40: Cross-sell
Cross-sell Chu Kok Wei & Haniz Nazlan Capital & Resources Cash Cross-sell Investor Day Capabilities (Simpler, Better, Faster) 5 March 2025 40
Slide 41: Strong Affluent franchise across ASEAN via CIMB Preferred
We have built a strong Affluent franchise across ASEAN via CIMB Preferred Priority Client CIO-Led Advisory Enhanced Sales and Cross-Border Wealth Seamless Digital Singapore Wealth Privileges Research & Insights Servicing Model Solutions Wealth Experience Hub Exclusive Preferred Affluent wealth Enhan
Slide 42: Reimagining our ASEAN Affluent franchise on 3 pillars
Reimagining our ASEAN Affluent franchise from the customer’s perspective, anchored on 3 pillars Tailored segment- Focused shift to wealth Double down in-house Differentiated segment 1 based UVP & propositions and advisory capabilities based products solutions portfolio management Seamless CX & Hybri
Slide 43: Delivering 2.0x Affluent AUM and >30% NOII
Delivering 2.0x Affluent AUM & >30% NOII by delivering a more holistic customer-centric strategy PRELIMINARY Simpler Solutions. Key metrics Better Experience. 2024 2030 Faster Service. • Tailored propositions based on AUM1, customer needs RM’billion ~234 ~2.0x • Ubiquitous access and rewarding custo
Slide 44: Wholesale Banking has diversified income and client segment
Wholesale Banking has delivered diversification of income and client segment, reducing concentration on lending and corporates Product diversification beyond lending Client segment1 diversification beyond corporates Total GWB income +4% +9% Total GWB income +4% +9% GWB client GWB client segment1 inc
Slide 45: The focus on cross-sell will continue
The focus on cross-sell will continue 1 “One-bank” view to clients Simpler structure and process 2 Effective performance tracking Faster 3 Build on our competitive edge turnaround time for clients 4 Broaden and deepen deposit franchise Better product capabilities 5 Improve Treasury and Investment Ba
Slide 46: Organisational streamlining for a one-bank view to clients
Organisational streamlining to deliver a “one-bank” view to clients, having coverage relationship managers, supported by product partners Banks, Insurers, Local Corporates, Regional ASEAN Corporates, Asset Managers, High Net-Worth Clients Multinational Corporations, Federal & State Sovereign Wealth
Slide 47: Building on our competitive edge with balance sheet and client relationships
Building on our competitive edge by leveraging our balance sheet and client relationships with aligned KPIs and regional client coverage model Our competitive edge Impact • Enhance balance sheet Balance sheet velocity lending and • Enable end-to-end KPI Cross-sell financing framework, across coverag
Slide 48: Broaden and deepen our deposit franchise
Focusing on client centricity, network connectivity and digital transformation to broaden and deepen our deposit franchise Customer centricity Network connectivity Digital transformation • Deepen and broaden • Focus on key markets – • Offer differentiated digital growth opportunity with Malaysia, In
Slide 49: Improve Treasury and Investment Banking capabilities
Improve Treasury and Investment Banking capabilities to increase income and returns Treasury Investment Banking • Clear segregation of client • Coverage bankers and segments relationship managers arranged Revamp Treasury • Flow sales to capture high based on sector / segment sales model to volume tr
Slide 50: Ambition to diversify income and increase NOII
Our ambition is to diversify income and increase NOII, where client franchise contributes ~75% of bank-wide NOII Product diversification Client segment1 Client franchise beyond lending diversification beyond business contribution to corporates total bank-wide NOII GWB client GWB client segment1 inco
Slide 51: Capabilities (Simpler, Better, Faster)
Capabilities (Simpler, Better, Faster) Gurdip Singh Sidhu Capital & Resources Cash Cross-sell Investor Day Capabilities (Simpler, Better, Faster) 5 March 2025 51
Slide 52: Capabilities to deliver Simpler, Better, Faster operations
Capabilities to deliver Simpler, Better, Faster (SBF) operations is a pivotal move in Forward30 Purpose Advancing Customers and Society Society & People & Culture Customers Sustainability Strategic moves – the 4Cs 1 Capital and resources: Reallocate and optimise 2 3 Cash: Build deposit franchise Cro
Slide 53: Making CIMB Simpler | Better | Faster
Strategic moves – 4. Capabilities: Simpler, Better, Faster Pending Legal to clear icon usage Making CIMB Simpler | Better | Faster will unlock value and drive superior performance for Forward30 and beyond SIMPLER BETTER FASTER Streamline processes, fewer Continuous improvement Shorter time in transa
Slide 54: Equipping our people with new operating models and tools
Simpler, Better, Faster will require equipping our people with new operating models and tools Sustainable value creation via: Organisational Processes Cost to Income Productivity Ratio Construct Customer Net Promoter Our Experience Score People Tech AI Market Position Revenue and Market Share Data O
Slide 55: We have commenced our Simpler, Better, Faster journey
We have commenced our Simpler, Better, Faster journey and it will continue to be a priority in Forward30 Wholesale Banking Malaysia Operations Digitalisation Transformation and Transformation Our challenges Our challenges People’s time Number of sign Clarity of Internal and external allocation offs
Slide 56: SBF Lab driving initiatives with agile methodologies
Many of these initiatives will be driven by the SBF Lab, utilising agile methodologies and best-in-class tools to scale transformation effectively Approach Define opportunity Analyse Design Execute Biz / Ops challenges statement Funding Checkpoint Powered by SBF Lab Agile teams will be supported wit
Slide 57: RM4.3 billion tech CAPEX invested in Forward23+
RM4.3 billion tech CAPEX invested in Forward23+; in Forward30 we expect similar annualised investment with strong shift to change-the-bank initiatives Tech Focus Areas Tech CIR, % Tech CIR Change the bank Run the bank Execution and Core platform Operating delivery cadence 8–9% architecture model – S
Slide 58: Data and AI will form a critical part of our transformation
Data and AI will form a critical part of our transformation CIMB AI Journey Why AI? AI-led Banking “Human-like” continuous improvement done Agentic1 • AI-driven self-service Automation banking & financial • Faster advisory • AI-driven automation for (virtual RMs, automated Intelligent complex E2E pr
Slide 59: Making CIMB Simpler, Better, Faster will unlock value
Making CIMB Simpler, Better, Faster will unlock value and drive superior performance Our people NPS 2024 12th 1st 5th Simpler, better, faster Organisational Processes operations Construct 2030 Top 3 across Our People Our customer Operational resiliency Tech AI Simpler, better, faster Strengthened pl
Slide 60: Closing Remarks
Closing Remarks Novan Amirudin Investor Day 5 March 2025 60
Slide 61: Our Forward Ambition
Fulfilling our purpose through the 4Cs Purpose Advancing Customers and Society People & Society & Customers Culture Sustainability Our Strategic moves – the 4Cs Forward 1 Ambition Capital and resources: Reallocate and optimise 2 3 Cash: Build deposit Cross-sell: Increase franchise returns 4 Capabili
Slide 62: Disclaimer and Forward-looking Statements
Disclaimer and Forward-looking Statements Investor Day 5 March 2025 62
Slide 63: Disclaimer
Disclaimer Important notice This presentation is for information purposes only and does not purport to be a complete description of all material terms. This presentation has not been and will not be independently verified, and no representation or warranty, express or implied, is made or given by or
Slide 64: Forward-looking statements
Forward-looking statements This presentation should be read as on overview of CIMB Group’s current business activities and operating environment which may contain statement relating to CIMB Group’s growth strategy and future business aspirations. This presentation contains forward-looking statements
Slide 65: Thank you
Thank you Investor Day 5 March 2025 65
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