Cimb Group Holdings Bhd · MYX:CIMB
Cimb Group Holdings Bhd — 9M19 Earnings Presentation
36 slides from Cimb Group Holdings Bhd's earnings presentation, Nov 22, 2019
Slide 1: Analyst Presentation 9M19 Results
Analyst Presentation 9M19 Results CIMB Group Holdings 22 November 2019 FORWARD Together
Slide 2: Key Financial Highlights
Key Financial Highlights Net Profit* (RM) ROE*^ Gross Loan (RM) 3,969mil 9.7% 360.7bil +12.2%Y-o-Y -10bps Y-o-Y +5.6% Y-o-Y Cost-to-Income* Loan Loss Charge^ CET1 53.0% 0.38% 13.1% +140bps Y-o-Y -7bps Y-o-Y +80bps Y-o-Y Notes: * 3Q19: Excludes transformational cost (net of tax) of RM258 mil 2Q18: Ex
Slide 3: Key Business/Operational Highlights
Key Business/Operational Highlights Underlying Provisions Remain Steady Stronger 9M NOII Driven by Trading & FX Total NOII (RM 'mil) 0.45% +12.8% Y-o-Y -5.4% Q-o-Q LLC ~ 0.38% 3,960 3,510 1,145 1,469 1,389 1,033 1,154 1,548 569 537 Loan Provisions (RM 'mil) 9M18 ^ 9M19 2Q19 3Q19 9M18 9M19 Trading &
Slide 4: PBT By Segment
PBT By Segment Decreased Consumer PBT in 9M19 due to impact of the OPR cut, MFRS9 adjustments and normalisation of GVP & Funding ^ provisions 20% Consumer Banking Revenue growth and lower provisions drove the 9M19 26% stronger Commercial performance Group PBT RM5,245 mil Wholesale improved from bett
Slide 5: PBT By Country
PBT By Country Malaysia PBT higher YoY from stronger performances Others Singapore in Commercial, Wholesale and GVPF 3% 7% Thailand Indonesia PBT growth led by loans growth (+4.7%) and 5% stronger NOII Indonesia * Thailand impacted by lower YoY trading income and 19% Malaysia * higher overheads. QoQ
Slide 6: Operating Income
Operating Income (RM 'mil) 9M19 Y-o-Y 3Q19 Q-o-Q Better NII YoY from loan growth while NOII +12.8% from improved Net interest income 9,313 5.0% 3,249 8.3% FX and trading income Non interest income ~ 3,960 12.8% 1,389 (5.4%) QoQ +3.8% driven by NII growth partially offset by absence of gain Total 13,
Slide 7: Operating Expenses
Operating Expenses 9M19 3Q19 (RM ‘mil) Y-o-Y Q-o-Q Higher BAU opex YoY driven by BAU* BAU* investments and Forward23-related Personnel 4,067 10.8% 1,403 6.9% expenses Establishment 1,482 2.0% 485 (1.8%) Excluding these items, the core underlying opex rose 4.9% YoY Marketing 271 34.2% 114 28.1% 9M19
Slide 8: Future-proofing #teamCIMB
Future-proofing #teamCIMB Future of Work Centre (FOWC) 3D Academy Forward23 3D Talent Composition ~ 3x 6 competency pillars x Digital World Awareness Agile & Entrepreneurial Thinking Future Communication Skills • Eco-system to provide a holistic approach on upskilling, Risk & Governance reskilling a
Slide 9: Loan Provisions
Loan Provisions -9.8% Y-o-Y +22.8% Q-o-Q Loan provisions -9.8% YoY from MFRS9- related write backs 1,145 RM 'mil 1,033 QoQ +22.8% mainly from higher writebacks in 2Q LLC stood at 0.38% for 9M19 (-7bps YoY). 404 Excluding MFRS9 related adjustments, LLC 329 would have been 0.51% 9M18 9M19 2Q19 3Q19 10
Slide 10: Gross Loans
Gross Loans (RM 'bil) Sep-19 Y-o-Y Q-o-Q Loans-to-Deposit Ratio Consumer Banking 180.5 8.9% 2.7% 93.1% Commercial Banking 64.4 (0.9%) (3.0%) 91.6% 91.2% 91.4% 91.5% Wholesale Banking 115.8 4.5% 1.8% Total 360.7 5.6% 1.3% Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Others Singapore 6% Loan Growth by Country (
Slide 11: Deposits
Deposits (RM 'bil) Sep-19 Y-o-Y Q-o-Q CASA Ratio Consumer Banking 173.2 13.6% 1.1% 34.4% 34.3% Commercial Banking 61.3 (1.1%) (1.9%) 32.7% 32.7% 32.9% Wholesale Banking 159.2 4.4% 2.6% Total 393.7 7.3% 1.2% Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Others Singapore 2% Deposit Growth by Country (Y-o-Y) 10%
Slide 12: Capital and Liquidity Management
Capital and Liquidity Management Total Capital 16.9% 16.6% 16.7% CET1 rose to 13.1% as at end Sep-19 (+80bps YoY; 3.5% 2.6% 2.6% Tier 2 +20bps QoQ) 1.1% 1.1% Tier 1 1.1% CET1 target remains CET1 unchanged at >12.0% for 12.3% 12.9% 13.1% end-2019 LCR remains comfortably ~ above 100% for all banking S
Slide 13: Consumer Banking
Consumer Banking (RM 'mil) 9M19 Y-o-Y 3Q19 Q-o-Q Personal Financing Others 3% 2% Net interest income 4,007 (1.2%) 1,427 16.7% Credit Cards Non interest income 1,416 2.5% 559 29.1% 5% Operating income 5,423 (0.2%) 1,986 19.9% Auto Gross Loans 13% RM180.5bil Overhead expenses (3,298) 8.8% (1,121) 3.1%
Slide 14: Commercial Banking
Commercial Banking (RM 'mil) 9M19 Y-o-Y 3Q19 Q-o-Q Others ^ Singapore 2% Net interest income 1,998 3.4% 677 2.1% 9% Non interest income 569 19.5% 263 65.4% Thailand 7% Gross Loans Operating income 2,567 6.6% 940 14.4% RM64.4bil Malaysia Overhead expenses (1,359) 8.5% (464) 1.3% 0.9% 50% PPOP 1,208 4
Slide 15: Wholesale Banking
Wholesale Banking (RM 'mil) 9M19 Y-o-Y 3Q19 Q-o-Q Others ^ 4% Net interest income 2,289 5.5% 771 (1.9%) Singapore Non interest income 1,385 14.2% 448 (6.1%) 18% Operating income 3,674 8.6% 1,219 (3.5%) Gross Loans Malaysia Thailand RM115.8bil 49% Overhead expenses (1,761) 8.9% (574) (3.2%) 4.5% 9% P
Slide 16: Group Ventures, Partnerships & Funding
Group Ventures, Partnerships & Funding 9M19 3Q19 TnG Digital (RM ‘mil) Y-o-Y Q-o-Q BAU^ BAU^ Total Registered Users Annual Active Users (mil) (mil) Net interest income 1,019 42.9% 374 14.0% +20.0% Q-o-Q +15.2% Q-o-Q Non interest income 590 34.1% 119 (70.3%) Operating income 1,609 39.5% 493 (32.3%) 5
Slide 17: CIMB Islamic
CIMB Islamic 9M19 3Q19 Islamic Financing (RM 'mil) Y-o-Y Q-o-Q BAU* BAU* (RM 'bil) Net financing income 1,659 20.2% 605 12.5% +8.5% Y-o-Y +1.0% Q-o-Q Non financing income 377 17.8% 140 6.9% 89.4 90.3 Operating income 2,036 19.8% 745 11.4% 83.2 Overhead expenses (634) 18.5% (205) (1.9%) PPOP 1,402 20
Slide 18: 02 Other Updates
[#]02 Other Updates 18
Slide 19: Translating Strategy To Action - Overall Status
Translating Strategy To Action - Overall Status 21 95% 99% of programmes projects reviewed Programmes commenced and approved for execution 2019 3Q19 Progress Year 1 activities for Forward23 Clear targets disseminated Positive traction in our headline has ramped up faster compared supported by projec
Slide 20: Translating Strategy To Action
Translating Strategy To Action Customer Centricity Technology & Data Our People Ventures & Sustainability Partnerships Transforming Customer Technology • Strengthened the headline Touch ‘n Go • Founding signatory for Journeys • The first tranche of initiatives target from 15% to 30% of • Acquired mi
Slide 21: 03 Final Remarks
[#]03 Final Remarks 21
Slide 22: Final Remarks
Final Remarks Sustained topline performance in 3Q19 with 9M19 FY19 Target steady market related income despite BAU ~ challenging operating environment On track to meet all key 2019 targets although ROE 9.7% 9.0 - 9.5% CIR remains dependent on revenue growth Continued focus on BAU cost management Div
Slide 23: 04 Appendices
[#]04 Appendices 23
Slide 24: Earnings Summary
Earnings Summary 9M19 9M18 3Q19 (RM ’mil) Y-o-Y 2Q19 Q-o-Q BAU * BAU^ BAU * Net interest income 9,313 8,869 5.0% 3,249 3,000 8.3% Non interest income 3,960 3,510 12.8% 1,389 1,469 (5.4%) Operating income 13,273 12,379 7.2% 4,638 4,469 3.8% Overhead expenses (7,033) (6,387) 10.1% (2,437) (2,294) 6.2%
Slide 25: NOII breakdown
NOII breakdown 9M18 (RM ’mil) 9M19 Y-o-Y 3Q19 2Q19 Q-o-Q BAU^ Fee & commission 1,807 1,792 0.8% 622 602 3.3% Brokerage 67 104 (35.6%) 1 30 (96.7%) Asset management and security services 18 197 (90.9%) 5 6 (16.7%) Trading & FX 1,548 1,154 34.1% 537 569 (5.6%) Dividend income 57 40 42.5% 23 31 (25.8%)
Slide 26: Key Ratios
Key Ratios 9M19 9M18 3Q19 (%) Y-o-Y 2Q19 Q-o-Q BAU* BAU^ BAU* ROE ~ 9.7 9.8 9.1 9.9 NIM ~** 2.47 2.52 2.53 2.37 Non-interest income / total income 29.8 28.4 29.9 32.9 Cost to income 53.0 51.6 52.6 51.3 Allowance coverage (including regulatory reserve) 94.8 107.1 94.8 96.6 Allowance coverage (excludi
Slide 27: PBT by Segments
PBT by Segments 9M19 9M18 3Q19 (RM ’mil) Y-o-Y 2Q19 Q-o-Q BAU* BAU^ BAU* Consumer Banking (25.7%) 1,348 2,113 (36.2%) 582 183 218.0% Commercial Banking (26.1%) 1,366 675 102.4% 355 690 (48.6%) Wholesale Banking (28.6%) 1,502 1,287 16.7% 526 499 5.4% Corporate Banking (18.9%) 990 915 8.2% 367 303 21.
Slide 28: PBT by Segment and Country
PBT by Segment and Country Consumer Banking 9M19 9M18 Y-o-Y 3Q19 2Q19 Q-o-Q Malaysia (RM ’mil) 758 1,398 (45.8%) 388 (37) >1000.0% Indonesia (IDR ’bil) 1,066 1,316 (19.0%) 360 492 (26.8%) Thailand (THB ’mil) 1,438 1,918 (25.0%) 371 387 (4.1%) Singapore (SGD ’mil) 18 28 (35.7%) 8 6 33.3% Others * (RM
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 6.3% 1.9% Consumer Gross Loans 8.5% 3.0% Mortgages 8.3% 2.2% Mortgages 12.6% 3.4% Term loans 5.5% 1.5% Auto (7.8%) 1.8% Auto 2.6% 0.6% Credit cards 11.4% 3.2% Credit cards - 1.8% Consumer Deposits 4.7% 1.
Slide 30: CIMB Niaga : Earnings Summary
CIMB Niaga : Earnings Summary 9M19 3Q19 (IDR 'bil) 9M18 Y-o-Y 2Q19 Q-o-Q BAU* BAU* Net interest income 9,472 9,012 5.1% 3,155 3,278 (3.8%) Non interest income 3,213 2,867 12.1% 1,232 950 29.7% Operating income 12,685 11,879 6.8% 4,387 4,228 3.8% Overhead expenses (6,205) (5,943) 4.4% (2,106) (2,026)
Slide 31: CIMB Niaga : Key Ratios
CIMB Niaga : Key Ratios 9M19 3Q19 (Consolidated, %) 9M18 Y-o-Y 2Q19 Q-o-Q BAU* BAU* ROE ^ 9.5 9.1 9.2 10.1 NIM ^ 5.37 5.12 5.29 5.53 Cost to Income 48.9 50.0 48.0 47.9 Loan Loss Coverage # 111.9 101.2 111.9 101.2 Allowance Coverage 93.3 78.4 93.3 90.1 Loan Loss Charge ^ 1.8 1.7 2.0 1.8 Gross Impaire
Slide 32: CIMB Thai : Earnings Summary
CIMB Thai : Earnings Summary Before GAAP Adjustments 9M19 9M18 Y-o-Y 3Q19 2Q19 Q-o-Q (THB 'mil) Net interest income 8,185 7,943 3.1% 2,751 2,727 0.9% Non interest income 2,202 2,208 (0.3%) 698 652 7.0% Operating income 10,387 10,150 2.3% 3,449 3,379 2.1% Overhead expenses (7,144) (6,083) 17.4% (2,55
Slide 33: CIMB Thai : Key Ratios
CIMB Thai : Key Ratios (Consolidated, %) 9M19 9M18 Y-o-Y 3Q19 2Q19 Q-o-Q ROE ^ 2.6 2.2 3.1 1.1 NIM ^ 3.32 3.77 3.36 3.30 Cost to Income 68.8 59.9 74.1 72.1 Loan Loss Coverage ** 98.0 94.1 98.0 106.5 Loan Loss Charge ^ 1.3 2.1 1.0 1.2 Gross NPL ratio ** 4.6 5.7 4.6 4.5 Net NPL ratio ** 2.6 2.9 2.6 2.
Slide 34: IB Market Share and Ranking (1)
IB Market Share and Ranking (1) 9M19 9M18 9M19 9M18 Market Market Market Market Rank Rank Rank Rank Share Share Share Share DCM Domestic 23.8% 2 23.6% 1 DCM 12.7% 3 9.7% 4 Sukuk 20.8% 2 22.9% 1 M&A - - - - M&A 20.1% 1 4.9% 8 Syndication ^ 8.3% 4 6.6% 5 Syndication ^ 15.2% 1 2.5% 10 IPO - - 4.1% 10 I
Slide 35: IB Market Share and Ranking (2)
IB Market Share and Ranking (2) 9M19 9M18 9M19 9M18 Market Market ASEAN Market Market Rank Rank Rank Rank Share Share Share Share M&A - - 0.4% 31 DCM 11.0% 1 10.2% 1 Syndication ^ - - - - M&A 2.1% 20 1.5% 21 IPO 0.1% 76 - - Syndication ^ 4.1% 7 3.1% 12 ECM 0.0% 94 0.3% 39 IPO 0.6% 33 0.9% 26 ECM 6.2
Slide 36: Corporate Responsibility
Corporate Responsibility CSR Spend as at September 2019 Donation Education 3% 8% Community Development 26% Sports Education 30% CIMB 38% Non-CIMB Foundation Foundation* RM9.4 mil RM13.4 mil Donation Community 66% Development 29% Agro-entrepreneurship CIMB Pan Disability Football Ayo Menabung Dan Ber