Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — Q1 2009 Earnings Presentation
51 slides from Cimb Group Holdings Bhd's earnings presentation, May 14, 2009
Slide 1: BCHB Group First Quarter 2009 Results
BCHB GROUP FIRST QUARTER 2009 RESULTS Analyst Presentation 14 May 2009
Slide 2: Agenda
Agenda 1) BCHB Group 1Q09 Financials 2) Malaysian Consumer Bank 3) Treasury & Investment Banking 4) Asset Management & Insurance 5) CIMB Niaga 6) CIMB Thai 7) Other Highlights 8) Closing Remarks 2
Slide 3: BCHB Group 1Q09 Financials
BCHB GROUP : 1Q09 RESULTS BCHB GROUP 1Q09 FINANCIALS
Slide 4: Highlights
Highlights • A strong 1Q09 despite the difficult economic environment • Strong revenue growth driven by enlarged asset base, stable margins and higher non interest income • Softening of product sales but NPLs remain benign • First consolidation of CIMB Thai results • Treasury, Niaga and Insurance sa
Slide 5: Earnings Summary
Earnings Summary (RM ‘mil) 1Q09 4Q08 Q-o-Q 1Q08 Y-o-Y Net interest income 1,407 1,286 9.4% 1,125 25.1% Non interest income ** 1,107 597 85.4% 892 24.1% Operating income 2,514 1,883 33.5% 2,017 24.6% Loan provisions (272) (263) 3.4% (189) 43.9% - Specific (211) (226) (6.6%) (142) 48.6% - General (61)
Slide 6: Quarterly Earnings Trend
Quarterly Earnings Trend 2,482 2,514 2,106 2,158 2,017 1,962 20.2% 1,836 1,883 19.1% 1,683 16.5% 13.6% 13.6% 14.2% 11.2% 11.4% 916 947 826 839 742 749 7.8% 615 660 650 614 577 535 572 490 448 448 403 319 + 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 Net Profit* PBT* Operating Income* ROAE** + Exclu
Slide 7: Contribution by Entity
Contribution by Entity CIMB (RM ‘mil) Universal CIMB Thai CIMB Niaga BCHB BCHB Group Bank Revenue 1,860 158 510 (14) 2,514 Profit/ (loss) before 747 (18) 116 (6) 839 tax Net profit/ (loss) 570 (17) 64 (3) 614 PBT Overseas / Domestic share of PBT CIMB Universal Bank % of PBT (RM ‘mil) Bank * 636 87%
Slide 8: M&A Related Charges
M&A Related Charges (RM ‘mil) 1Q09 4Q08 Q-o-Q Net profit 614 319 92.5% One-off (gains)/losses : (Gain)/Loss of disposal of subsidiaries - SIBB (17) - - SBB Securities - 19 Menara Bumi-Commerce (69) - -26 128 CIMB-GK Thai licence surplus 30 - CIMB Niaga merger costs 25 69 CIMB Thai* 5 40 Core net pro
Slide 9: Quarterly Core Earnings Trend
Quarterly Core Earnings Trend 2,482 2,415 2,140 2,019 2,017 1,965 20.3% 1,902 1,836 1,683 17.4% 16.5% 13.6% 13.6% 13.0% 11.2% 11.4% 11.0% 964 929 811 739 745 749 695 577 632 607 588 529 535 572 492 448 447 403 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 Core Net Profit* Core PBT* Operating Income*
Slide 10: Revenue By Segment
Revenue By Segment (RM ‘mil) 1Q09 4Q08 Q-o-Q 1Q08 Y-o-Y Consumer Banking 869 883 (1.6%) 786 10.6% Corporate & Investment Banking 345 335 3.0% 476 (27.5%) Treasury & Investments 464 219 111.9% 417 11.3% GAM & Insurance 69 0 100% 53 30.2% CIMB Niaga 510 465 9.7% 285 78.9% CIMB Thai 158 - 100% - 100% T
Slide 11: Estimated PBT By Segment
Estimated PBT By Segment PBT (RM 'mil) 1Q09 4Q08 Q-o-Q 1Q08 Y-o-Y (after Head Office cost allocation) Consumer Banking - Good Bank 121 80 51.3% 31 290% - Bad Bank (5) 88 (106%) 22 (123%) 116 168 (31.0%) 53 119% Corporate & Investment Banking 116 243 (52.3%) 252 (54.0%) Treasury & Investments 407 154
Slide 12: Estimated PBT By Segment
Estimated PBT By Segment 1Q09 4Q08 Consumer CIMB Thai, CIMB Niaga, Consumer Banking, CIMB Niaga, -2% 17% Banking, 14% 19% 28% GAM & Corporate & GAM & Insurance, Investment Insurance, -10% Banking, 4% 14% Treasury & Investments, 25% Corporate & Treasury & Investment Investments, Banking, 50% 40% 12
Slide 13: Consolidated Balance Sheet Changes
Consolidated Balance Sheet Changes 31st Mar 31st Dec 31st Mar (RM ‘mil) Q-o-Q Y-o-Y 09 08 08 Cash & short term funds 19,519 24,409 27,856 (20.0%) (29.9%) Securities purchased under resale agreements 7,916 3,311 4,476 139% 76.9% Deposits & placements with financial institutions 8,383 4,063 10,988 106
Slide 14: Key Ratios
Key Ratios (%) 1Q09 4Q08 1Q08 ROAE* 13.6 11.0 13.6 Net interest margin (excl. IIS)* 2.6 2.5 2.3 Loan loss charge 0.20 0.21 0.19 Non-interest income/ total income 41.7 32.4 44.2 Cost/ income 53.4 52.5 52.6 Loan loss coverage 83.5 88.1 71.9 - excluding CIMB Thai 87.5 Gross NPL ratio 5.6 4.9 7.1 - excl
Slide 15: Gross Loans Growth
Gross Loans Growth 31st Mar 09 31st Dec 08 Q-o-Q 31st Mar 08 Y-o-Y Products / Divisions (RM ‘bil) (RM ‘bil) Growth (RM ‘bil) Growth Consumer Banking 63.0 62.0 1.5% 56.5 11.4% Mortgages 25.2 24.2 4.2% 20.3 24.2% - Of which performing 23.6 22.6 4.4% 18.6 26.8% HP 11.0 11.0 0.6% 11.1 (0.8%) OD and TL 9
Slide 16: Deposits Growth
Deposits Growth 31st Mar 09 31st Dec 08 Q-o-Q 31st Mar 08 Y-o-Y Products / Divisions (RM ‘bil) (RM ‘bil) Growth (RM ‘bil) Growth Retail 38.2 36.6 3.2% 32.4 17.9% - Current 5.0 4.3 16.3% 4.0 25.0% RM167.4bil 27.2% - Savings 9.5 9.3 2.2% 8.5 11.8% - Fixed & structured 23.7 23.0 1.3% 19.9 19.1% deposit
Slide 17: Asset Quality Ratios – BCHB Group
Asset Quality Ratios – BCHB Group Excluding 100.0% CIMB Thai 87.5% 19.0% 90.0% 88.1% 17.0% 80.0% 83.5% 74.2% 76.6% 71.9% 15.0% 69.3% 70.0% 65.1% 13.0% 59.0% 61.0% 60.0% 57.5% 54.2% 54.9% 55.8% 11.0% 9.1% Excluding 50.0% 8.8% 8.6% 9.0% 9.8% 9.5% 7.9% CIMB Thai 9.0% 7.2% 7.1% 4.9% 40.0% 6.5% 7.0% 5.9%
Slide 18: BCHB: Operating Expenses
BCHB : Operating Expenses (RM ‘mil) 1Q09 4Q08 Q-o-Q 1Q08 Y-o-Y Personnel 648 427 51.8% 527 23.0% Establishment 275 256 7.4% 202 36.1% Marketing 74 105 (29.5%) 57 29.8% Admin & General 294 210 40.0% 275 6.9% Total 1,291 998 29.4% 1,061 21.7% • Higher overall costs due to consolidation of CIMB Thai ex
Slide 19: BCHB: Operating Expenses (Excl. CIMB Thai)
BCHB : Operating Expenses (Excl. CIMB Thai) (RM ‘mil) 1Q09 4Q08 Q-o-Q 1Q08 Y-o-Y Personnel 594 427 39.1% 527 12.7% Establishment 254 256 (0.8%) 202 25.7% Marketing 69 105 (34.3%) 57 21.1% Admin & General 237 210 12.9% 275 (13.8%) Total 1,154 998 15.6% 1,061 8.8% • Personnel cost increased 13% Y-o-Y
Slide 20: Good Bank, Bad Bank
Good Bank, Bad Bank G-SAM recovery portfolio * 31st Mar 09 31st Dec 08 (RM ‘bil) Legally Claimable Balance 11.18 11.18 Net book value* 1.27 1.32 Estimated FSV (Collateral Value) 3.12 3.59 Gross NPL* 4.51 4.59 Gross / Net NPL ratios (%)* 74.5% / 45.2% 74.4% / 45.4% Good Bank portfolio (CIMB Bank) 31s
Slide 21: Gearing and Double Leverage
Gearing and Double Leverage BCHB Holding Company 1Q09 4Q08 Further capital management initiatives Timeline (RM ‘mil) Investment in subsidiaries 13,339 13,339 a) Capital injection to Yingkou 2Q09 External debt & borrowings 4,032 3,950 Share capital 3,578 3,578 b) CIMB Bank’s USD300 mil sub-debt 2Q09
Slide 22: Malaysian Consumer Bank
BCHB GROUP : 1Q09 RESULTS MALAYSIAN CONSUMER BANK
Slide 23: Consumer Bank: 1Q09 Financials
Consumer Bank : 1Q09 Financials (RM ‘mil) 1Q09 4Q08 Q-o-Q 1Q08 Y-o-Y Net interest income 694 702 (1.1%) 623 11.4% Non interest income 175 181 (3.3%) 163 7.4% Total income 869 883 (1.6%) 786 10.6% Overheads (direct + head office (630) (605) 4.1% (606) 4.0% allocation) Loan provisions (123) (110) 11.8
Slide 24: Consumer Revenue & LLP Trend
Consumer Revenue & LLP Trend 800 702 694 700 681 653 616 629 623 599 599 600 500 RM 'mil 400 300 236 222 195 184 188 200 181 175 162 158 161 157 163 163 127 123 110 100 78 79 - 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 Interest income LLP Non-interest income 24
Slide 25: Malaysian Consumer Market Shares
Malaysian Consumer Market Shares Market shares 31st Dec 2008 30th Sep 2008 Mortgages - Residential 12.8% 12.4% 2* - Non-residential 12.9% 12.6% 9.8% 10.0% 4* HP ^ Credit Cards - Loan base 10.5% 10.6% 3** - Card Base 10.1% 9.8% 3* Retail Deposits 9.2% 9.4% 3** SME Loan 12.6% 12.5% ^ Based on loans fr
Slide 26: Retail Banking Indicators (1)
Retail Banking Indicators (1) Housing Loans and Business Premises Loans RM 'mil 900 800 700 600 500 400 300 200 100 07 07 07 07 l0 7 07 07 t 07 v 07 c 07 08 b 08 r 08 r 08 y 08 08 l 08 08 08 t 08 v 08 c 08 09 b 09 r 09 ar Ap r ay Ju n Ju Aug Sep Oc No e J an Fe a Ap a J un J u u g e p O c No e J an
Slide 27: Retail Banking Indicators (2)
Retail Banking Indicators (2) Total CIMB Clicks Customers OTC vs SST 17% 800 16% 700 600 15% 500 14% '000 400 13% 300 12% 200 11% 100 0 10% Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 1Q08 2Q08 3Q08 4Q08 1Q09 08 08 08 08 08 08 08 08 08 08 09 09 09 CIMB Express Loan Base Credit Card Base 1,00
Slide 28: Treasury & Investment Banking
BCHB GROUP : 1Q09 RESULTS TREASURY & INVESTMENT BANKING
Slide 29: IB and Treasury Financials
IB and Treasury Financials Corporate & Investment Banking (RM ‘mil) 1Q09 4Q08 Q-o-Q 1Q08 Y-o-Y Net interest / financing income 180 205 (12.2%) 188 (4.3%) Fee & commission income 119 79 50.6% 96 24.0% Net trading income 8 12 (33.3%) 110 (92.7%) Brokerage income 38 39 (2.6%) 82 (53.7%) Total income 34
Slide 30: Malaysian Market Shares (YTD)
Malaysian Market Shares (YTD) M&A ADVISORY* PRIMARY BOND MARKET RM 1,115 mil RM 2,066 mil AmInvestment 21.8% CIMB 21.2% RM 975 mil RM 1,939 mil OSK 19.1% Maybank Investment 19.9% RM 719 mil RM 1,903 mil CIMB 14.1% AmInvestment 19.6% RM 633 mil RM 1,595 mil RHB 12.4% RHB 16.4% RM 1,667 mil RM 790 mil
Slide 31: Regional Market Share (YTD)
Regional Market Share (YTD) Singapore Singapore Indonesia Indonesia •• No. No.11M&A M&AAdvisor Advisorbased basedon onnumber numberof ofdeals dealsfor for •• Rank Rank88for forstock stockbroking, broking,3.4% 3.4%market marketshare share 1Q09 1Q09(Mid-Market (Mid-MarketRanking) Ranking) •• Rank Rank
Slide 32: Asset Management & Insurance
BCHB GROUP : 1Q09 RESULTS ASSET MANAGEMENT & INSURANCE
Slide 33: Group's Asset Management & Insurance
Group's Asset Management & Insurance PBT (RM 'mil) 1Q09 4Q08 Q-o-Q 1Q08 Y-o-Y CIMB-P Group 5 5 - 12 (58.3%) Wholesale 4 4 - 0 100% Insurance 24 (71) 133.8% (1) >100% Total 33 (62) 153.2% 11 200% AUM • AUM remains stable with no new funds launched 20,000 • Indonesia: JV Agreement signed with Sun Life
Slide 34: CIMB Niaga
BCHB GROUP : 1Q09 RESULTS CIMB NIAGA
Slide 35: CIMB Niaga: Earnings Summary
CIMB Niaga: Earnings Summary (As Reported On 29 April 09) (IDR ‘bil) 1Q09 4Q08 Q-o-Q 1Q08 Y-o-Y Net Interest Income 1,369 1,300 5.3% 1,108 23.6% Non Interest Income 249 433 (42.5%) 253 (1.6%) Operating Income 1,618 1,732 (6.6%) 1,361 18.9% Overhead Expenses (840) (908) (7.5%) (802) 4.7% Pre Provisio
Slide 36: CIMB Niaga: Balance Sheet Changes
CIMB Niaga : Balance Sheet Changes (As Reported On 29 April 09) 1Q09 1Q09 1Q08 1Q08 Y-o-Y (IDR ‘bil) (RM ‘mil) (IDR ‘bil) (RM ‘mil) Placements & Other MS 11,293 3,530 13,811 4,317 (18.2%) Government Bonds 8,828 2,760 11,012 3,442 (19.8%) Loans 72,885 22,784 63,307 19,790 15.1% Other Assets 9,905 3,0
Slide 37: CIMB Niaga: Key Ratios
CIMB Niaga : Key Ratios (As Reported On 29 April 09) (Consolidated, %) 1Q09 4Q08 Q-o-Q 1Q08 Y-o-Y ROA 1.4 1.1 0.3% 1.9 (0.4%) ROE 10.9 8.1 (2.8%) 10.9 (0.0%) NIM 5.9 5.4 0.5% 5.4 0.5% Fee Income 15.3 19.0 (3.7%) 16.7 (1.3%) Cost to Income 51.7 58.2 (6.5%) 61.8 (10.1%) Loan to Deposit 85.8 87.8 (2.1%
Slide 38: CIMB Niaga Updates
CIMB Niaga Updates • SPD1 on schedule for completion in 3Q09 • 200 out of 652 branches have been rebranded • Rankings : – 6th largest by assets – 5th largest by deposits – 5th largest by loans – 5th largest by branch network • Estimated gross merger cost approx. RM150 mil for 2009 38
Slide 39: CIMB Thai
BCHB GROUP : 1Q09 RESULTS CIMB THAI
Slide 40: CIMB Thai: Earnings Summary (Consolidated)
CIMB Thai : Earnings Summary (Consolidated) (As Reported On 21 April 09) (THB ‘bil) 1Q09 4Q08 Q-o-Q 1Q08 Y-o-Y Net Interest Income 1,086 1,150 (5.6%) 1,848 (41.2%) Non Interest Income 506 126 302% (1,732) 129% Operating Income 1,592 1,276 24.8% 116 1272% Overhead Expenses 1,544 1,654 (6.7%) 1,624 (4
Slide 41: CIMB Thai: Balance Sheet Changes (Consolidated)
CIMB Thai : Balance Sheet Changes (Consolidated) (As Reported On 21 April 09) 1Q09 1Q09 1Q08 1Q08 Y-o-Y (THB ‘bil) (RM ‘mil) (THB ‘bil) (RM ‘mil) Placements & Other MS 68,604 6,668 64,029 6,307 7.1% Government Bonds 12,491 1,214 23,853 2,350 (47.6%) Loans 77,207 7,505 86,899 8,560 (11.2%) Other Asse
Slide 42: CIMB Thai: Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 1Q09 4Q08 Q-o-Q 1Q08 Y-o-Y ROA^ (0.5) (2.1) 1.5 (4.0) 3.4 ROE^ (16.2) (75.6) 59.4 (298.7) 282.5 NIM^ 2.2 2.3 (0.1) 3.5 (1.3) Fee Income 10.5 17.3 (6.8) 9.5 1.0 Cost to Income 97.0 129.6 (32.6) 64.2 32.8 Loan to Deposit 59.2 57.8 1.4 60.8 (1.7) Gross NPL* 7.6
Slide 43: CIMB Thai Update
CIMB Thai Update 93.15% owned as of 23 March 09 Recapitalisation of CIMB Thai is complete Legal and bank branch name change to CIMB Thai Bank on 4 May 09. Formal brand launch targeted on mid-May 09 Progress update on CIMB Thai: – Synergy planning in full swing governed by steering committee – Strate
Slide 44: Other Highlights
BCHB GROUP : 1Q09 RESULTS OTHER HIGHLIGHTS
Slide 45: CIMB Islamic Business Indicators
CIMB Islamic Business Indicators Ranking by Total Islamic Assets • 3rd largest (2007: no. 6) by total Islamic banking Total Assets Market Rank Company assets in Malaysia RM ‘mil Share, % 1 MIBB 31,257 17.3 • Gross financing assets grew by 27% to RM7.9 bil in 2 Bank Islam 23,559 13.1 1Q09 from RM6.2b
Slide 46: Global Islamic Investment Banking Leadership
Global Islamic Investment Banking leadership 1Q09 Global Sukuk League Table 1Q09 Domestic Sukuk League Table Market Market Rank Company USD ‘mil Rank Company USD ‘mil Share, % Share, % 1 CIMB 517 24.4 1 CIMB 1,660 25.2 2 Maybank Investment 382 18.0 2 Maybank Investment 1,393 21.1 3 RHB 274 12.9 3 Am
Slide 47: Other Highlights
Other Highlights Acquisition of 19.99% in Bank of Yingkou completed on 17 Apr 09 - Acquisition was RMB349mil with CIMB Bank’s post-money entry P/B at 1.26x - Plans for secondment of management professionals are underway CIMB-Sun Life bancassurance partnership in Indonesia. Net gain of approx. RM74 m
Slide 48: Closing Remarks
BCHB GROUP : 1Q09 RESULTS CLOSING REMARKS
Slide 49: Targets for 2009
Targets for 2009 2009 On Track ROE > 12.5% TSR > KLCI Dividend 18.5 sen (single tier) Total loans growth 8% Retail deposit 18 % Loan loss charge 0.9 % Tier 1 (at bank) 10% RWCR (at bank) 12% Double leverage 115% - 120% 49
Slide 50: Closing Remarks
Closing Remarks Strong 1Q suggest Malaysian consumers and corporates are resilient due to low leverage and supportive banks We remain cautious and still anticipate asset quality to deteriorate in coming months. But balance sheet is well-positioned, capital markets are showing signs of recovery and t
Slide 51: Thank You
THANK YOU BUMIPUTRA COMMERCE
CIMB Group Holdings Berhad — Q1 2009 Earnings Presentation on 6ix