Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — Q1 2010 Earnings Presentation
57 slides from Cimb Group Holdings Bhd's earnings presentation, May 20, 2010
Slide 1: CIMB Group Holdings Berhad 1Q10 Results
CIMB GROUP HOLDINGS BERHAD 1Q10 RESULTS Analyst Presentation 20 May 2010
Slide 2: Agenda
Agenda 1. Summary 2. FRS 139 3. CIMB Group FY09 Financials 4. Malaysian Consumer Bank 5. Treasury & Investment Banking 6. Asset Management & Insurance 7. CIMB Niaga 8. CIMB Thai 9. Other Highlights 10. Outlook 2
Slide 3: Summary
CIMB GROUP : 1Q10 RESULTS SUMMARY
Slide 4: Key Messages
Key Messages Full adoption of FRS 139, 1st Malaysian Bank FRS balance sheet clean-up and dynamic provisioning methodology enhances economic accuracy of provisioning and significantly improves outlook for credit charge Asset quality ratios will improve as we re-align approach to provisioning fo
Slide 5: FRS 139
CIMB GROUP : 1Q10 RESULTS FRS 139
Slide 6: Impact of Accounting Changes on Balance Sheet
Impact of Accounting Changes on Balance Sheet 31st Dec Effects of FRS 1st Jan (RM ‘mil) % change 2009 139 2010 Cash & short term funds 28,275 - 28,275 - Reverse repurchase agreements 4,545 - 4,545 - Deposits & placements with banks & other FI 2,383 - 2,383 - Financial investments at fair value throu
Slide 7: Impact of Accounting Changes on Equity
Impact of Accounting Changes on Equity Effects of % (RM ‘mil) 31st Dec 2009 1st Jan 2010 FRS 139 change Share capital 3,532 - 3,532 - Reserves 16,814 (355) 16,459 (2.1%) Share premium – ordinary shares 5,587 - 5,587 - Statutory reserve 3,416 - 3,416 - Capital reserve 137 - 137 - Exchange fluctuation
Slide 8: CIMB Group 1Q10 Financials
CIMB GROUP : 1Q10 RESULTS CIMB GROUP 1Q10 FINANCIALS
Slide 9: Earnings Summary
Earnings Summary 1Q10 4Q09 1Q09 (RM ’mil) Q-o-Q Y-o-Y (FRS 139) (GP3) (GP3) Net interest/financing income* 1,830 1,782 2.7% 1,550 18.1% Non interest income 1,012 998 1.4% 964 5.0% Operating income 2,842 2,780 2.2% 2,514 13.0% Loan impairment (150) (203) (26.1%) (272) (44.9%) - Individual impairment
Slide 10: Quarterly Earnings Trend
Quarterly Earnings Trend 2,787 2,780 2,842 2,589 2,514 2,158 2,017 16.6% 16.2% 16.5% 1,882 15.1% 15.4% 14.4% 13.6% 1,683 11.4% 1,094 1,129 7.7% 1,001 947 839 879 838 749 727 803 650 614 663 535 572 448 448 319 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Series break Operating income* PBT* Net profi
Slide 11: Contribution by Entity
Contribution by Entity 1Q10 4Q09 1Q09 RM ’mil % of PBT RM ’mil % of PBT RM ’mil % of PBT CIMB Bank 567 50% 331 30% 589 70% CIMB Niaga 423 37% 229 21% 116 14% CIMB Thai 6 1% 26 2% (18) (2%) CIMB Labuan 42 4% 77 7% 67 8% CIMB Islamic 81 7% 49 4% 40 5% CIMB Investment Bank 12 1% 151 14% 25 3% CIMB-GK 1
Slide 12: Contribution by Geography
Contribution by Geography 1Q10 Thailand Others 1% 8% Indonesia 37% Malaysia 54% 4Q09 1Q09 Others Thailand Others Thailand 6% 2% 7% -2% Indonesia Indonesia 14% 20% Malaysia Malaysia 72% 81% Note: FRS 139 only applies for 2010. Retrospective financials remain GP3 12
Slide 13: Estimated PBT By Segment
Estimated PBT By Segment 1Q10 4Q09 1Q09 Q-o-Q Y-o-Y PBT (FRS 139) (GP3) (GP3) (after Head Office cost allocation) RM ’mil RM ’mil % RM ’mil % Consumer Banking - Good Bank 136 244 (44.3%) 121 12.4% - Bad Bank (9) 42 n.a (5) (80.0%) 127 286 (55.6%) 116 9.5% Corporate & Investment Banking 236 248 (4.8%
Slide 14: Estimated PBT By Segment
Estimated PBT By Segment 1Q10 CIMB Thai Consumer 1% Banking 11% CIMB Niaga Corporate & 37% Inv Banking 21% GAM & Insurance Treasury & 0% Investments 30% 4Q09 1Q09 Note: FRS 139 only applies for 2010. Retrospective financials remain GP3 14
Slide 15: Consolidated Balance Sheet Changes
Consolidated Balance Sheet Changes (RM ‘mil) 31st Mar 10 1st Jan 2010* Q-o-Q Cash & short term funds 25,852 28,275 (9%) Reverse repurchase agreements 3,980 4,545 (12%) Deposits & placements with banks & other FI 11,784 2,383 394% Financial investments at fair value through profit or loss 11,099 14,9
Slide 16: AFS MTM Position
AFS MTM Position (RM ’mil) Mar 2009 Jun 2009 Sep 2009 Dec 2009 1st Jan 2010* Mar 2010 Total 370.0 459.1 545.6 545.1 783.6 624.0 783.6 624.0 545.6 545.1 459.1 370.0 Mar-09 Jun-09 Sep-09 Dec-09 1st Jan 2010* Mar-10 Note: *Opening balances adjusted for FRS 139 16
Slide 17: Key Ratios
Key Ratios (%) 1Q10 1st Jan 2010 4Q09 1Q09 ROE * 16.5 - 16.2 14.4 NIM * 3.33 - 3.34 3.05 Fee income / total income 13.3 - 19.7 15.2 Non-interest income/ total income 43.6 - 43.6 44.0 Cost / income 55.0 - 55.3 52.8 Allowance coverage / Loan loss coverage 80.5 80.6 90.8 85.6 Loan loss charge 0.10 - 0.
Slide 18: Gross Loans Growth
Gross Loans Growth 31st Mar 10 31st Dec 09 31st Mar 09 Products / Divisions Q-o-Q Y-o-Y (RM ’bil) (RM ’bil)* (RM ’bil)* Consumer Banking 73.8 71.2 3.7% 63.9 15.6% Mortgages 31.0 29.4 5.4% 25.5 21.8% HP 11.5 11.3 1.3% 11.0 4.1% OD and TL 12.4 11.6 7.5% 9.7 27.9% Credit cards 3.4 3.0 12.6% 2.6 32.1% C
Slide 19: Deposits Growth
Deposits Growth Divisions / 31st Mar 10 31st Dec 09 31st Mar 09 Q-o-Q Y-o-Y Products (RM ’bil) (RM ’bil) (RM ’bil) Retail 44.5 43.3 2.8% 38.2 16.5%* - Current 7.9 7.3 8.2% 5.0 58.0% - Savings 10.6 10.3 2.9% 9.5 11.6% - Fixed & structured deposits 26.0 25.7 1.2% 23.7 9.7% Business 20.5 20.6 (0.3%) 18
Slide 20: CASA Growth
CASA Growth Divisions / 31st Mar 10 31st Dec 09 31st Mar 09 Q-o-Q Y-o-Y Products (RM ’bil) (RM ’bil) (RM ’bil) Current Deposits 37.7 36.9 1.9% 30.1 25.2% - Malaysia 28.5 29.5 (3.1%) 23.9 19.7% - Thailand 0.2 0.2 0.0% 0.1 100% - Indonesia 8.9 7.2 23.6% 6.1 45.9% Savings Deposits 19.9 19.7 1.0% 17.9 1
Slide 21: Asset Quality Ratios – CIMBG
Asset Quality Ratios – CIMBG Series break due to adoption of FRS 139 88.1% 86.8% 86.7% 85.6% 78.5% 90.8% 75.8% 73.2% 70.4% 80.6% 80.5% 65.9% 61.5% 59.3% 9.1% 8.6% 7.9% 7.6% 7.5% 7.2% 7.1% 6.5% 6.1% 5.6% 5.6% 5.5% 4.9% 5.1% 4.4% 3.8% 3.6% 5.5% 3.2% 5.0% 3.0% 2.3% 2.5% 2.4% 2.4% 2.0% 1Q07 2Q07 3Q07 4Q
Slide 22: Loan Assets
Loan Assets Mar 2010 Dec 2009 * Singapore and Singapore and Others Others Thailand RM6.2 bil Thailand RM5.7 bil RM9.4 bil RM9.3 bil 4% 4% 6% 6% Indonesia Indonesia RM32.2 bil RM31.6 bil Malaysia, 21% 21% RM106.0 bil Malaysia 69% RM103.6 bil 69% Notes: Others include overseas branches and Labuan 22 *
Slide 23: 1Q10 Annualised Credit Charge by Country
1Q10 Annualised Credit Charge by Country Others -0.12% Thailand 1.21% Indonesia 0.92% Malaysia 0.19% Note: 23 Others include overseas branches and Labuan
Slide 24: Capital Management
Capital Management RWCR – CIMB Bank 13.3 % 13.8 % 14.0 % 15.1% 15.3% 14.9 % 15.6 % 2.9% 3.4% 3.3% 3.3% 3.5% 2.9% Tier 2 CAR 4.6% 12.7% 13.5% 14.8% 14.6% 10.9% 14.8% 14.2% Tier 1 CAR Mar-09 Jun-09 Sep-09 Dec-09 1st Jan 10 Mar-10 Mar-10 (Reported) (Proforma**) Mar 10 Mar 10 1st Jan Mar 10 Dec 09 4Q09
Slide 25: CIMBG: Operating Expenses
CIMBG : Operating Expenses (RM ’mil) 1Q10 4Q09 Q-o-Q 1Q09 Y-o-Y Personnel 783 771 1.6% 648 20.8% Establishment 357 295 21.0% 289 23.5% Marketing 90 61 47.5% 74 21.6% Admin & General 333 411 (19.0%) 316 5.4% Total 1,563 1,538 1.6% 1,327 17.8% 25
Slide 26: Malaysian Consumer Bank
CIMB GROUP : 1Q10 RESULTS MALAYSIAN CONSUMER BANK
Slide 27: Consumer Bank: 1Q10 Financials
Consumer Bank : 1Q10 Financials 1Q10 4Q09 1Q09 (RM ’mil) Q-o-Q Y-o-Y (FRS 139) (GP3) (GP3) Net interest / financing income 671 704 (4.7%) 694 (3.3%) Non interest income 206 230 (10.4%) 175 17.7% Total income 877 934 (6.1%) 869 0.9% Overheads (direct + head office (691) (707) (2.3%) (630) 9.9% alloca
Slide 28: Consumer Bank: Good Bank
Consumer Bank : Good Bank 1Q10 4Q09 1Q09 (RM ’mil) Q-o-Q Y-o-Y (FRS 139) (GP3) (GP3) Net interest / financing income 665 683 (2.6%) 677 (1.8%) Non interest income 206 228 (9.6%) 173 19.1% Total income 871 911 (4.4%) 850 2.5% Overheads (direct + head office (646) (649) (0.5%) (598) 8.0% allocation) L
Slide 29: Consumer Revenue & Loan Impairment Provision Trend
Consumer Revenue & Loan Impairment Provision Trend Series break (RM ’mil) due to adoption of FRS 139 191 230 188 181 175 192 206 184 163 678 702 694 697 708 704 671 623 654 128 110 123 117 115 61 78 79 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 (59) Fee & commission income Net interest / financing
Slide 30: Malaysian Consumer Market Shares
Malaysian Consumer Market Shares Mortgages Credit Cards Rank #3 #2 #2 Rank #4 #3 #3 11.2 10.6 13.5 10.5 12.8 12.9 13.0 10 9.6 11.1 8.8 11.0 Market Share (%) Market Share (%) 31st Dec 07 31st Dec 08 31st Dec 09 31st Dec 07 31st Dec 08 31st Dec 09 Residential Non-Residential Loan Base Card Base HP^ SM
Slide 31: Malaysian Retail Banking Indicators
Malaysian Retail Banking Indicators Retail Loans – Housing Loans and Business Premises Loans (RM ’mil) 1,200 Sales spiked due to various Sales slowed down in 3Q and Drop in sales mainly due to sales campaigns launched in 4Q09 due to less sales campaigns festive season and shorter 1,000 1Q09 launched
Slide 32: Malaysian Consumer Banking Indicators
Malaysian Consumer Banking Indicators HP Loan Base, Disbursement & Repayment (RM ’bil) Credit Card – Card Base (’000) 11.3 11.5 1,155 1,142 11.2 11.2 11.2 1,113 1,102 1.0 1.0 986 1.0 1.0 1 0.9 0.9 0.8 0.7 0.7 1Q09 2Q09 3Q09 4Q09 1Q10 Loan Base Disbursement Repayment Mar-09 Jun-09 Sep-09 Dec-09 Mar-1
Slide 33: Singapore Retail Banking
Singapore Retail Banking Retail Deposits (SGD ’mil) Home Loan Acceptance (SGD ’mil) 1,449 1,509 377 1,388 1,280 314 227 203 473 63 Aug-09 Dec-09 Jan-10 Feb-10 Mar-10 Aug-09 Dec-09 Jan-10 Feb-10 Mar-10 Retail Customer Base* Credit Cards Loan Base (SGD ’mil) 12,357 13,155 43 11,581 10,630 35 28 20 4,8
Slide 34: Treasury & Investment Banking
CIMB GROUP : 1Q10 RESULTS TREASURY & INVESTMENT BANKING
Slide 35: Treasury and Investment Financials
Treasury and Investment Financials 1Q10 4Q09 1Q09 (RM ’mil) Q-o-Q Y-o-Y (FRS 139) (GP3) (GP3) Net interest / financing income 193 164 17.7% 165 17.0% Fee income 5 17 (70.6%) 2 150.0% Net trading income 170 63 169.8% 212 (19.8%) Total income 368 244 50.8% 379 (2.9%) Provision 3 (23) n.a. 1 200.0% Ove
Slide 36: Corporate & Investment Banking Financials
Corporate & Investment Banking Financials 1Q10 4Q09 1Q09 (RM ’mil) Q-o-Q Y-o-Y (FRS 139) (GP3) (GP3) Net interest / financing income 222 226 (1.8%) 180 23.3% Fee & commission income 115 244 (52.9%) 119 (3.4%) Net trading income 20 18 11.1% 8 150.0% Brokerage income 78 67 16.4% 38 105.3% Total income
Slide 37: Malaysian Market Shares (1Q10)
Malaysian Market Shares (1Q10) M&A Advisory** CIMB Express IPO Advisory CIMB 19.2% RM15,893 mil CIMB 94.0% RM704 mil Goldman Sachs 13.8% RM11,404 mil MIMB 3.8% RM29 mil Public Public Investment 10.5% RM8,709 mil 2.2% RM16 mil Investment RHB Investment 10.4% RM8,569 mil Brokerage ECM Deals# RM17,234
Slide 38: Notable Deals 1Q10
Notable Deals 1Q10 Notable CIMB Deals 1Q10 DCM RM1.2 bil, Exchangeable bonds RM81.7 mil, Senior/ unsecured debenture RM176.7 mil, Bonds Loans CVC RM1.2 bil, syndicated loan facility IPO RM704 mil offering M&A RM8.3 bil privatisation exercise RM4.9 bil proposed acquisition of EON Cap ECM Axiata RM1.7
Slide 39: Asset Management & Insurance
CIMB GROUP : 1Q10 RESULTS ASSET MANAGEMENT & INSURANCE
Slide 40: Group Asset Management & Insurance
Group Asset Management & Insurance PBT (after HOCA) 1Q10 4Q09 Q-o-Q 1Q09 Y-o-Y (RM ’mil) CIMB-P Group 13 14 (7.1%) 5 160.0% Wholesale 3 2 50.0% 4 (25.0%) Insurance (12) (10) 20.0% 24 n.a. Total 4 6 (33.3%) 33 (87.9%) AUM (RM ’mil) Total GAM’s AUM fell 2.6% mainly due to deferral of 26,141 injectio
Slide 41: CIMB Niaga
CIMB GROUP : 1Q10 RESULTS CIMB NIAGA
Slide 42: CIMB Niaga: Earnings Summary
CIMB Niaga: Earnings Summary 1Q10 4Q09 1Q09 (IDR ’bil) Q-o-Q Y-o-Y (FRS 139) (GP3) (GP3) Net Interest Income 1,665 1,538 8.3% 1,436 16.0% Non Interest Income 299 525 (43.1%) 240 24.6% Operating Income 1,964 2,063 (4.8%) 1,676 17.2% Overhead Expenses (1,033) (960) 7.6% (889) 16.2% Pre Provision Opera
Slide 43: CIMB Niaga: Balance Sheet Changes
CIMB Niaga : Balance Sheet Changes (IDR ’bil) 31st Mar 10 1st Jan 2010* Q-o-Q Placements & Other MS 20,361 11,028 85% Government Bonds 5,031 6,613 (24%) Loans 80,678 80,334 0.4% Other Assets 8,519 8,909 (4%) Total Assets 114,589 106,884 7% Low Cost Fund (CASA) 44,838 39,389 14% Time Deposits & CD 48
Slide 44: CIMB Niaga: Key Ratios
CIMB Niaga : Key Ratios (Consolidated, %) 1Q10 1st Jan 2010 4Q09 1Q09 ROE 18.3 - 15.1 11.1 NIM 6.41 - 5.91 5.90 Cost to Income 52.6 - 46.5 52.8 Allowance Coverage / Loan 115.1 119.8 108.1 84.1 Loss Coverage* Loan Loss Charge* 0.2 - 0.6 0.3 Gross Impaired Loans Ratio / 3.1 3.1 3.1 2.8 Gross NPL ratio
Slide 45: CIMB Thai
CIMB GROUP : 1Q10 RESULTS CIMB Thai
Slide 46: CIMB Thai: Earnings Summary
CIMB Thai : Earnings Summary (Baht ’mil) 1Q10 4Q09 Q-o-Q 1Q09 Y-o-Y (Before GAAP Adjustments) Net Interest Income 1,245 1,129 10.3% 1,087 14.5% Non Interest Income 559 415 34.7% 531 5.3% Operating Income 1,804 1,544 16.8% 1,618 11.5% Overhead Expenses (1,317) (1,410) (6.6%) (1,570) (16.1%) Pre Provi
Slide 47: CIMB Thai: Balance Sheet Changes
CIMB Thai : Balance Sheet Changes (Baht ’mil) (Before GAAP 31st Mar 10 31st Dec 09 31st Mar 09 Q-o-Q Y-o-Y Adjustments) Placements & Other MS 12,953 24,555 68,381 (47.2%) (81.1%) Government Bonds (Net) 13,231 11,529 12,600 14.8% 5.0% Loans (Net) 79,915 78,299 77,215 2.1% 3.5% Other Assets 11,803 12,
Slide 48: CIMB Thai: Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 1Q10 4Q09 1Q09 ROE 17.0 2.1 (16.1) NIM 4.57 4.09 2.73 Cost to Income 73.0 91.4 97.0 Allowance Coverage / Loan Loss 53.6 62.2 64.1 Coverage Loan Loss Charge 0.8 0.4 1.4 Gross Impaired Loans Ratio / Gross NPL 10.4 14.9 15.6 ratio Loan to Deposit 102.4 97.3 59.2
Slide 49: CIMB Thai – Latest developments
CIMB Thai – Latest developments Net Interest Margin LDR and CASA % 102.4% 4.7% 97.3% 4.6% 83.9% 4.1% 71.9% 59.2% 3.3% 2.7% 27.4% 29.7% 23.3% 25.1% 17.8% 1Q09 2Q09 3Q09 4Q09 1Q10 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 LDR CASA Latest developments 1. To raise capital by THB 3 billion via rights issue 2. U
Slide 50: Other Highlights
CIMB GROUP : 1Q10 RESULTS OTHER HIGHLIGHTS
Slide 51: CIMB Islamic – No. 2 by Assets in 5 years
CIMB Islamic – No. 2 by Assets in 5 years Ranking of Total Islamic Assets as at Dec 2009 1Q10 Global Sukuk League Table Market Market Total Assets Share Rank Company USD ’mil Share Rank Company RM ’mil % % 1 MIBB 37,853 16 1 CIMB 284 23.5 2 CIMB Islamic 27,785 12 2 Standard Chartered 188 15.5 3 Bank
Slide 52: Bank of Yingkou
Bank of Yingkou 1Q10 4Q09 Q-o-Q 1Q09 Operating income (RMB ‘mil) 232 232 0% 194 Net profit (RMB ‘mil) 103 78 32.1% 94 ROE 19.5% 17.0% 14.7% 37.9% Contribution to CIMB Group (RM ‘mil) 10.2 7.9 29.1% - Gross NPL ratio 0.7% 0.8% (12.5%) 1.1% Balance Sheet (RMB ’mil) 31st Mar 10 31st Dec 09 30th Sept 09
Slide 53: Outlook
CIMB GROUP : 1Q10 RESULTS OUTLOOK
Slide 54: Key 2010 Priorities Update
Key 2010 Priorities Update Priorities Updates Regional ATM links completed in M’sia, Thai & Sg; Indonesia by June Advance regional value proposition Cross-border servicing available across all Preferred Centres in M’sia and Sg; Thai and Indon on going Advance regional investment banking Region
Slide 55: Latest Events Update
Latest Events Update Proposed acquisition of up to 19.7% stake in CIMB Niaga from Khazanah Nasional for up to RM1.9 bil Sale and leaseback of branches completed in April 2010 Issued RFP for potential divestment of stake in bad bank (SEASAM) Attained consumer banking licence in Cambodia Set
Slide 56: Targets for 2010
Targets for 2010 1Q10 Annualised 2010 Target On Track ROE 16.5% 16% 9 TSR +6% above KLCI > KLCI 9 Dividend -* 18.5 sen (9.25 sen post bonus) 9 Gross loans growth 6.5% 12% r Group CASA growth 7.0% 18% r Loan loss charge 0.4% 0.6% 9 Tier 1 (at bank) 14.30% 10% 9 RWCR (at bank) 15.07% 12% 9 : Under rev
Slide 57: Thank You
THANK YOU 57
CIMB Group Holdings Berhad — Q1 2010 Earnings Presentation on 6ix