Analyst Presentation 1Q14 Results 22 May 2014
Agenda 1. Key Highlights 2. CIMB Group 1Q14 Financials 3. PBT by Segment 3.1 Regional Consumer Banking 3.2 Regional Wholesale Banking 3.3 Investments 4. Country Analysis 5. Other Highlights 6. Financial Targets 7. Final Remarks 2
CIMB Group : 1Q14 Results 1. Key Highlights
1Q14 Highlights ROE of 13.0% vs 13.5-14.0% target Net profit +4.4% Y-o-Y, excluding gains from the sale of CIMB Aviva and restructuring charges in 1Q13 Reduction in operating expenses Y-o-Y and Q-o-Q Strong gross loans growth of +12.4% Y-o-Y (+14.0% excluding forex), credit costs benign NIM defended at -3bps Y-o-Y Despite macro conditions improving, Indonesia Y-o-Y contribution in RM fell 9.4% Continued strong growth in Thailand and Singapore Strong momentum in MS Consumer and Regional Corporate Banking continues Soft start for Treasury & Markets, IB challenged by weak equity markets and enlarged cost base Corporate and Consumer Banking accounted for 70% of PBT in 1Q14 (2013 : 67%) Good market shares except Indonesia consumer CET 1 at 9.6% post Jan-14 private placement and DRS (before regulatory reserve adjustment) 4
Key Financial Highlights (1) Operating Income Net Profit +3.1% Y-o-Y* +4.4% Y-o-Y** Actual: -10.3% Y-o-Y Actual: -23.1% Y-o-Y 1Q13** 1Q14 1Q14 1Q13* RM1,021 mil RM1,066 mil RM3,538mil RM3,430 mil ROE Cost to Income -110bps Y-o-Y** -210bps Y-o-Y** Actual: -600bps Y-o-Y Actual: +50bps Y-o-Y 1Q13** 1Q13** 1Q14 1Q14 14.1% 58.9% 56.8% 13.0% Notes: * Excludes gains from sale of CIMB Aviva (RM515 mil) 5 ** Excludes gains from sale of CIMB Aviva (RM515 mil), restructuring charges (RM200 mil) and tax impact (RM50 mil)
Key Financial Highlights (2) Deposits Gross Loans +12.4% Y-o-Y Flat Y-o-Y Excluding FX fluctuations: +14.0% Y-o-Y Excluding FX fluctuations: +1.8% Y-o-Y 1Q14 1Q14 1Q13 1Q13 RM264.8 bil RM237.2 bil RM264.8 bil RM211.0 bil NIM Gross Impaired Loans Ratio -3bps Y-o-Y -70bps Y-o-Y 1Q13 1Q13 1Q14 1Q14 2.88% 3.8% 3.1% 2.85% 6
PBT By Division 70% Contribution from Consumer and Corporate Banking 1Q14 1Q13* Investment Investment Banking Banking 4% Investments Investments 1% 10% 10% Treasury & Consumer Consumer Treasury & Markets Banking Banking Markets 19% 39% 41% 21% Corporate Corporate Banking Banking 29% 26% 1Q14 PBT Y-o-Y Growth by Key Divisions Consumer Investment Corporate Treasury & Banking Banking Banking Markets Investments * +9.2% -84.3% +10.2% -7.7% +4.3% * Excluding gains from sale of CIMB Aviva and restructuring charges in 1Q13 7
PBT By Country Singapore Rising 1Q14* 1Q13*~ Others Singapore Singapore Others 0% 3% 5% Thailand Thailand 0% 5% 5% Indonesia Indonesia 28% 31% Malaysia Malaysia 61% 62% 1Q14 PBT Y-o-Y Growth by Key Countries *~ ^ -0.6% -9.9% +8.5% +60.5% * Excluding HQ costs, which mainly comprises funding costs ~ Excluding gains from sale of CIMB Aviva and restructuring charges in 1Q13 ^ IDR depreciated 12.4% Y-o-Y (daily average rate). In local currency, Indonesia PBT +3.4% Y-o-Y 8
CIMB Group : 1Q14 Results 2. CIMB Group 1Q14 Financials
Quarterly Earnings Trend Private Placement 19.0% 16.8% 16.8% 15.5% 15.6% 14.0% 14.1% 13.8% 13.0% 3,945 3,797 3,544 3,538 3,485 3,445 3,369 3,326 3,256 1,718 1,496 1,470 1,431 1,387 1,386 1,371 1,341 1,386 1,358 1,143 1,082 1,109 1,062 1,066 1,054 1,038 1,011 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Operating income* PBT* Net profit* ROE** Notes: * Amounts denoted in RM ’mil 10 ** Annualised
Earnings Summary 1Q13 Y-o-Y (RM ’mil) 1Q14 1Q13 4Q13 Q-o-Q BAU* BAU Net interest income 2,403 2,261 2,261 6.3% 2,402 0.0% Non interest income 1,135 1,684 1,169 (2.9%) 1,395 (18.6%) Operating income 3,538 3,945 3,430 3.1% 3,797 (6.8%) Overhead expenses (2,011) (2,219) (2,019) (0.4%) (2,137) (5.9%) PPOP 1,527 1,726 1,411 8.2% 1,660 (8.0%) Loan impairment (111) (81) (81) 37.0% (308) (64.0%) Other provisions (18) (2) (2) 800.0% (44) (59.1%) Share of JV / Associates 33 75 75 (56.0%) 50 (34.0%) PBT 1,431 1,718 1,403 2.0% 1,358 5.4% Net profit 1,066 1,386 1,021 4.4% 1,038 2.7% EPS (sen) 13.2 18.7 13.7 (3.6%) 13.5 (2.2%) ROE (Annualised) 13.0% 19.0% 14.1% (110bps) 13.8% (80bps) Notes: Weighted average shares of 8.11 bil in 1Q14 and 7.69 bil in 4Q13 11 * Excludes gains from sale of CIMB Aviva (RM515 mil), restructuring charges (RM200 mil) and tax impact (RM50 mil)
Key Ratios (%) 1Q14 1Q13 Y-o-Y 4Q13 Q-o-Q ROE ^ 13.0 19.0 13.8 NIM ^** 2.85 2.88 2.80 Non-interest income / total income 32.1 42.7 36.7 Cost to income 56.8 56.3 56.3 Allowance coverage 83.8 82.3 84.8 Allowance coverage after regulatory reserve # 108.4 97.9 108.3 Loan loss charge ^ 0.19 0.15 0.53 Gross impaired loans ratio 3.1 3.8 3.2 Net impaired loans ratio (Net of IA and PA) 0.5 0.7 0.5 Average shareholders’ funds (RM ’mil) 32,913 29,186 30,127 ROA * 1.14 1.58 1.12 Book value per share (RM) 4.32 4.04 3.92 Loan to Deposit (LDR) 90.7 81.1 88.4 CASA ratio 35.4 33.7 34.2 Notes: ^ Annualised ** Daily Average # Regulatory reserve maintained in equity as an additional credit risk absorbent in accordance with BNM requirement. This is to 12 ensure robustness on the loan/financing loss estimates methodology with the adoption of FRS 139 beginning 1 Jan 2010
Operating Expenses (RM ’mil) 1Q14 1Q13 Y-o-Y 4Q13 Q-o-Q Personnel 1,136 1,211 (6.2%) 1,302 (12.7%) Establishment 470 456 3.1% 470 - Marketing 86 88 (2.3%) 100 (14.0%) Admin & General 319 464 (31.3%) 265 20.4% Total 2,011 2,219 (9.4%) 2,137 (5.9%) Total excluding One-off Cost Items 2,019 1 2,011 (0.4%) 2,120 (5.1%) (%) 1Q14 1Q13 4Q13 56.8 56.3 56.3 Cost to income Cost to income excluding One-off items 58.9 1,2 56.8 55.8 Notes: 1. Restructuring charges (RM200 mil) 13 2. Gains from sale of CIMB Aviva (RM515 mil)
Gross Loans Growth Loans by Country as at 31 Mar 14 # Divisions / Products (RM ‘bil) 31 Mar 14 31 Mar 13 Y-o-Y 31 Dec 13 Q-o-Q Others Singapore 4% Retail Financial Services (50.8%) 120.5 106.8 12.8% 116.8 3.2% 8% Thailand Mortgages 57.5 52.2 10.2% 55.7 3.2% 8% Term Loans 26.5 21.3 24.4% 25.7 3.1% Malaysia Auto 20.1 19.4 3.6% 19.6 2.6% Indonesia 59% 21% Credit Cards 6.4 5.6 14.3% 6.4 0.0% Micro Credit 3.9 4.0 (2.5%) 3.8 2.6% Y-o-Y Growth Loans* Enterprise 4.5 3.1 45.8% 4.1 10.2% Others 1.6 1.2 35.8% 1.5 8.7% Malaysia 9.0% Commercial Banking (17.7%) 42.1 34.9 20.6% 39.8 5.8% Indonesia ^ 9.5% Thailand ^ 20.0% Corporate Banking (31.5%) 74.6 69.3 7.6% 74.8 (0.3%) Gross Loans * 237.2 211.0 12.4% 231.4 2.5% Singapore ^ 72.3% Others** 28.1% Group ~ 14.0% Notes: * Gross loans excludes bad bank. Excluding FX fluctuations, total gross loans grew +14.0% Y-o-Y and +0.5% Q-o-Q # Based on geographical location of counterparty, excluding bad bank ^ In local currency ~ Excluding FX fluctuations 14 ** Inclusive of Labuan, London & Cambodia
Deposits Growth Deposits by Country as at 31 Mar 14 Divisions / Products (RM ‘bil) 31 Mar 14 31 Mar 13 Y-o-Y 31 Dec 13 Q-o-Q Others Singapore 5% Retail Financial Services (40.7%) 107.7 102.7 4.9% 103.6 4.0% 9% Thailand Current 18.2 15.7 15.9% 17.8 2.2% 6% Savings 30.4 29.2 4.1% 28.7 5.9% Indonesia Fixed & Structured Deposits 59.1 57.8 2.2% 57.1 3.5% Malaysia 18% 62% Commercial Banking ** (19.1%) 50.6 47.8 5.9% 49.6 2.0% Corporate & Treasury # (40.2%) 106.5 114.3 (6.8%) 112.2 (5.1%) Y-o-Y Deposits Growth Total * 264.8 264.8 - 265.4 (0.2%) Malaysia (2.4%) Indonesia ^ (3.5%) Thailand ^ 11.7% Singapore ^ 39.2% Others*** 14.2% Group ~ 1.8% Notes: * Excluding FX fluctuations, total group deposits grew 1.8% Y-o-Y and -1.4% Q-o-Q ^ In local currency ~ Excluding FX fluctuations ** Including Enterprise Banking # Includes deposits with options classified as derivatives in MY & SG 15 *** Inclusive of Labuan, London & Cambodia
CASA Growth CASA by Country as at 31 Mar 14 Country (RM ‘bil) 31 Mar 14 31 Mar 13 Y-o-Y 31 Dec 13 Q-o-Q Others Singapore Malaysia 57.1 51.6 10.7% 55.7 2.5% 1% 11% Thailand Indonesia ** 20.8 24.7 (15.8%) 19.5 6.7% 5% Thailand 4.3 4.3 - 4.3 - Indonesia Singapore 10.7 7.9 35.4% 10.0 7.0% 22% Malaysia 61% Others 1.0 0.7 42.9% 1.2 (16.7%) Total * 93.9 89.2 5.3% 90.7 3.5% CASA Growth Y-o-Y Malaysia 10.7% Indonesia ^ (6.9%) Thailand ^ 4.7% Singapore ^ 30.4% Group ~ 7.5% Notes: * Excluding FX fluctuations, total CASA grew 7.5% Y-o-Y and 2.2% Q-o-Q ** Adjusted for high cost saving deposits classified as Structured Deposits ^ In local currency 16 ~ Excludes FX fluctuations
AFS MTM (Q-o-Q) Position 692.1 291.3 (42.7) (15.6) (66.5) Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 17
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