CIMB Group Analyst Presentation 1Q17 Results Tengku Dato ’ Sri Zafrul Aziz 24 May 2017
Agenda 1. Key Highlights 2. CIMB Group 1Q17 Financials 3. PBT by Segment 3.1 Regional Consumer Banking 3.2 Regional Commercial Banking 3.3 Regional Wholesale Banking 3.4 Group Asset Management & Investments 3.5 Group Funding 3.6 CIMB Islamic 4. T18 Updates 5. Final Remarks 2
CIMB Group : 1Q17 Results 1. Key Highlights
Key Financial Highlights Operating Income Overhead Expenses Loan Impairment (RM ‘ mil) (RM ‘ mil) (RM ‘ mil) -8.8% Y-o-Y +17.1% Y-o-Y +7.4% Y-o-Y -43.6% Q-o-Q +1.1% Q-o-Q +3.0% Q-o-Q Gross Loans * Net Profit Deposits (RM ‘ mil) (RM ‘ mil) (RM ‘ mil) +10.8% Y-o-Y +45.0% Y-o-Y +12.2% Y-o-Y +4.6% Q-o-Q +38.2% Q-o-Q +0.3% Q-o-Q 4 Notes: * Excluding bad bank
Key Ratios ROE NIM CI +240bps Y-o-Y +10bps Y-o-Y -480bps Y-o-Y +260bps Q-o-Q +3bps Q-o-Q +90bps Q-o-Q LD Loan Loss Charge CET 1 +90bps Y-o-Y -12bps Y-o-Y +110bps Y-o-Y -41bps Q-o-Q -390bps Q-o-Q +20bps Q-o-Q 5
PBT By Segments 1Q17 1Q16 1Q17 PBT Growth by Key Divisions Consumer Commercial Wholesale Group Asset Group Banking Banking Banking Management Funding & Investments +20.4% +13.1% +23.3% +17.2% +>1000% PPOP Y-o-Y +0.5% -7.8% +117.0% -53.8% +>1000% PBT Y-o-Y -1.2% 494.4% +30.5% +63.6% +46.5% PBT Q-o-Q 6
PBT By Country 1Q17* 1Q16* 1Q17* PBT Y-o-Y Growth by Key Countries +44.6% +15.9% +13.3% +49.3% PPOP Y-o-Y +37.0% +135.5% +15.9% +121.0% PBT Y-o-Y +0.2% -15.1% +177.9% +226.2% PBT Q-o-Q 7 Notes: * Excluding HQ costs, mainly comprising of funding costs
CIMB Group : 1Q17 Results 2. CIMB Group 1Q17 Financials
Quarterly Earnings Trend *RM ’mil Notes: FY15: 1Q15 Excluding IB restructuring cost (RM202 mil) 2Q15 Excluding MY MSS cost (RM316 mil) and tax on MY MSS (RM79 mil) 9 3Q15 Excluding tax and MI on ID MSS (RM36 mil) and ID MSS cost (RM134 mil) 4Q15: ID MSS cost (RM32mil) and tax on ID MSS (RM8 mil)
Earnings Summary (RM ‘mil) 1Q17 1Q16 Y-o-Y 4Q16 Q-o-Q Net interest income 3,046 2,731 11.5% 3,016 1.0% Non interest income 1,315 994 32.3% 1,297 1.4% Operating income 4,361 3,725 17.1% 4,313 1.1% Overhead expenses (2,296) (2,137) 7.4% (2,230) 3.0% PPOP 2,065 1,588 30.0% 2,083 (0.9%) Loan impairment (424) (465) (8.8%) (752) (43.6%) Other provisions (31) (50) (38.0%) (135) (77.0%) Share of JV / Associates 4 50 (92.0%) 16 (75.0%) PBT 1,614 1,123 43.7% 1,212 33.2% Net profit 1,180 814 45.0% 854 38.2% EPS (sen) 13.3 9.5 40.0% 9.7 37.1% ROE (Annualised) 10.3% 7.9% 240bps 7.7% 260bps 10
Key Ratios (%) 1Q17 1Q16 Y-o-Y 4Q16 Q-o-Q ROE ~ 10.3 7.9 7.7 NIM ~** 2.72 2.62 2.69 Non-interest income / total income 30.2 26.7 30.1 Cost to income 52.6 57.4 51.7 Allowance coverage # 79.6 84.8 79.8 Loan loss charge ~ 0.52 0.64 0.93 Gross impaired loans ratio 3.2 3.0 3.3 Net impaired loans ratio (Net of IA and PA) 0.7 0.5 0.7 Average shareholders’ funds (RM ’mil) 46,031 40,999 44,558 ROA ~ 0.95 0.70 0.72 Book value per share (RM) 5.27 4.80 5.11 Loan to Deposit (LDR) 91.7 90.6 95.6 CASA ratio 36.0 35.4 35.6 Notes: ~ Annualised ** Daily Average 11 # Including regulatory reserve, allowance coverage was 93.2% as at end-Mar 2017
Operating Expenses (RM ‘mil) 1Q17 1Q16 Y-o-Y 4Q16 Q-o-Q Personnel 1,277 1,155 10.6% 1,238 3.2% Establishment 580 558 3.9% 536 8.2% Marketing 66 83 (20.5%) 73 (9.6%) Admin & General 373 341 9.4% 383 (2.6%) Total 2,296 2,137 7.4% 2,230 3.0% Cost to income 52.6% 57.4% (480bps) 51.7% 90bps 12
Gross Loans Growth Loans by Country as at 31 Mar 17 # Divisions / Products (RM ‘bil) 31 Mar 17 31 Mar 16 Y-o-Y 31 Dec 16 Q-o-Q Consumer Banking (50.8%) 163.5 147.7 10.7% 161.1 1.5% Mortgages 82.6 72.5 13.9% 80.2 3.0% Term Loans 36.2 33.2 9.0% 36.3 (0.3%) Auto 19.6 19.9 (1.5%) 19.7 (0.5%) Credit Cards 9.5 8.6 10.5% 9.8 (3.1%) Personal Financing 4.8 4.4 9.1% 4.8 - Enterprise 8.1 6.9 17.4% 7.8 3.8% Loans* + Y-o-Y Growth Others 2.7 2.2 22.7% 2.5 8.0% Commercial Banking (13.1%) 42.2 37.8 11.6% 41.7 1.2% Malaysia 11.8% Wholesale Banking (36.1%) 115.9 101.2 14.5% 117.7 (1.5%) Indonesia ^ (0.3%) Gross Loans excl bad bank* 321.6 286.7 12.2% 320.5 0.3% Thailand ^ (0.4%) Bad Bank 2.9 2.7 7.4% 3.2 (9.4%) Singapore ^ 1.6% Total Gross Loans 324.5 289.4 12.1% 323.7 0.2% Others** (6.9%) Group ~ 6.8% Notes: * Excluding FX fluctuations, total gross loans grew 6.8% Y-o-Y and 0.04% Q-o-Q + Gross loans exclude bad bank # Based on geographical location of counterparty, excluding bad bank ^ In local currency ~ Excluding FX fluctuations 13 ** Including Labuan, London, Cambodia, Hong Kong & Shanghai
Deposits Growth Deposits by Country as at 31 Mar 17 Divisions / Products (RM ‘bil) 31 Mar 17 31 Mar 16 Y-o-Y 31 Dec 16 Q-o-Q Consumer Banking (43.7%) 154.9 134.0 15.6% 151.0 2.6% Commercial Banking (13.0%) 45.9 41.7 10.1% 45.4 1.1% Wholesale Banking # (43.3%) 153.2 143.9 6.5% 142.1 7.8% Total * 354.0 319.6 10.8% 338.5 4.6% Deposits Y-o-Y Growth Malaysia 13.1% Indonesia ^ 1.9% Thailand ^ 15.3% Singapore ^ (2.5%) Others** (35.6%) Group ~ 6.3% Notes: * Excluding FX fluctuations, total group deposits +6.3% Y-o-Y and +4.3% Q-o-Q ^ In local currency ~ Excluding FX fluctuations # Including deposits with options classified as derivatives in MY & SG 14 ** Including Labuan, London, Cambodia, Hong Kong & Shanghai
CASA Growth CASA by Country as at 31 Mar 17 Country (RM ‘bil) 31 Mar 17 31 Mar 16 Y-o-Y 31 Dec 16 Q-o-Q Malaysia 65.9 61.2 7.7% 63.1 4.4% Indonesia ** 32.6 26.5 23.0% 30.7 6.2% Thailand 10.4 9.2 13.0% 10.6 (1.9%) Singapore 15.4 10.9 41.3% 14.1 9.2% + Others 3.0 5.5 (45.5%) 2.3 30.4% Total * 127.3 113.3 12.4% 120.8 5.4% CASA Y-o-Y Growth Malaysia 7.8% Indonesia ^ 7.1% Thailand ^ (1.4%) Singapore ^ 30.1% Group ~ 6.8% Notes: * Excluding FX fluctuations, total CASA grew 6.8% Y-o-Y and 5.1% Q-o-Q ** Adjusted for high cost saving deposits classified as Structured Deposits ^ In local currency 15 ~ Excluding FX fluctuations + Including Labuan, London, Cambodia, Hong Kong & Shanghai
Capital Management : CIMB Group Capital Ratios Min Req. 11.5% 11.3% 10.9% CET1 5.125% 10.7% 10.6% 13.0% 12.9% 12.4% 12.2% 11.8% Tier 1 6.625% 16.3% 16.4% 15.8% 15.4% 15.6% Total Capital 8.625% # # ^ ~ ~ Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Leverage Ratio (times) Gearing Ratio Double Leverage Ratio 16.6 23.9% 116.0% 115.7% 23.2% 22.9% 115.3% 22.8% 115.2% 15.6 15.6 15.3 20.8% 113.0% 15.1 ^ # # # # ^ # # ~ ~ ~ ^ ~ ~ Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 ~ Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Notes: ^ Post CIMBGH’s FY15 Second Interim Dividend & the actual corresponding DRS (86.8% take-up rate); and reinvestment of cash dividend surplus into CIMB Bank # Post CIMBGH’s FY16 First Interim Dividend of RM698 mil and actual corresponding DRS take-up rate of 85.7% 16 ~ Dec’ 16 and Mar’ 17 post CIMBGH’s FY16 Second Interim Dividend & the actual corresponding DRS (81.8% take-up rate); and projected reinvestment of cash dividend surplus into CIMB Bank
CIMB Group : 1Q17 Results 3. PBT by Segment
PBT by Segments PBT (RM ‘mil) 1Q17 1Q16 Y-o-Y 4Q16 Q-o-Q Consumer Banking (34.8%) 561 558 0.5% 568 (1.2%) Commercial Banking (8.8%) 142 154 (7.8%) (36) 494.4% Wholesale Banking (45.0%) 727 335 117.0% 557 30.5% Corporate Banking (29.6%) 479 179 167.6% 416 15.1% Treasury & Markets ~ (15.4%) 248 180 37.8% 130 90.8% Investment Banking + (0.0%) - (24) 100.0% 11 (100.0%) GAMI ** (2.2%) 36 78 (53.8%) 22 63.6% Group Funding # (9.2%) 148 (2) >1000% 101 46.5% PBT 1,614 1,123 43.7% 1,212 33.2% Notes: ~ Including treasury operations, markets and transaction banking + Including advisory, equities, capital markets, private banking and research ** Including asset management and strategic investments 18 # Including capital investments in fixed income securities and investment in Group’s proprietary capital
CIMB Group : 1Q17 Results 3.1 Regional Consumer Banking
Consumer Banking (RM ‘mil) 1Q17 1Q16 Y-o-Y 4Q16 Q-o-Q Net interest income 1,444 1,301 11.0% 1,436 0.6% Non interest income 483 440 9.8% 499 (3.2%) Operating income 1,927 1,741 10.7% 1,935 (0.4%) Overhead expenses (1,088) (1,044) 4.2% (1,073) 1.4% PPOP 839 697 20.4% 862 (2.7%) (Provisions) / Writeback (280) (140) 100.0% (294) (4.8%) Share of JV / Associates 2 1 100.0% - - PBT 561 558 0.5% 568 (1.2%) PBT by Country 1Q17 1Q16 Y-o-Y 4Q16 Q-o-Q Malaysia (RM ‘mil) 510 470 8.5% 401 27.2% Indonesia (IDR ‘bil) (75) 158 (147.5%) 442 (117.0%) Thailand (THB ‘mil) 411 162 153.7% 82 401.2% Singapore (SGD ‘mil) 6 6 - 4 50.0% Others * (RM ‘mil) 4 2 100.0% 3 33.3% PBT 561 558 0.5% 568 (1.2%) 20 Note: * Including Labuan, London, Cambodia, Hong Kong & Shanghai
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