CIMB Group Analyst Presentation FY17 Results 28 February 2018
Agenda 1. Key Highlights 2. CIMB Group FY17 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. Other Highlights 6. Final Remarks 2
CIMB Group : FY17 Results 1. Key Highlights
Key Financial Highlights Operating Income Overhead Expenses Loan Impairment (RM ‘ mil) (RM ‘ mil) (RM ‘ mil) +9.7% Y-o-Y -7.4% Y-o-Y +5.6% Y-o-Y -2.7% Q-o-Q +2.1% Q-o-Q +1.8% Q-o-Q Gross Loans * Net Profit Deposits (RM ‘ mil) (RM ‘ bil) (RM ‘bil) +5.5% Y-o-Y +0.2% Y-o-Y +25.6% Y-o-Y +0.8% Q-o-Q -6.4% Q-o-Q -0.4% Q-o-Q 4 Notes: * Excluding bad bank
Key Ratios ROE NIM CI -210bps Y-o-Y +130bps Y-o-Y -70bps Q-o-Q Flat -7bps Q-o-Q -20bps Q-o-Q LD Loan Loss Charge CET 1 -480bps Y-o-Y +90bps Y-o-Y -5bps Y-o-Y -2bps Q-o-Q +20bps Q-o-Q -120bps Q-o-Q 5
Key Business / Operational Highlights Consumer PBT Growth Consumer Thailand PBT Indonesia Provisions RM ’mil RM ‘mil THB ‘mil +23.7% CAGR -13.6% CAGR 2015 2017 2016 Islamic PBT ASEAN Local Currency Bonds Productivity RM ’mil (USD ’mil) RM ’mil PBT growth driven by Islamic First CIMB Ranked No.1 for 7 consecutive Strategy and expansion of fee- years in ASEAN local currency bonds based income contribution to and 13 years for Malaysian Ringgit revenue (22.7% to 25.4%) Bonds 6
PBT By Segments FY17 FY16 FY17 PBT Growth by Key Divisions Consumer Commercial Wholesale Group Asset Group Banking Banking Banking Management Funding & Investments +12.3% +12.2% +13.8% +33.1% +32.5% PPOP Y-o-Y +11.8% -18.1% +53.0% -39.4% +50.5% PBT Y-o-Y -9.3% -231.3% +18.9% +428.6% +1.8% PBT Q-o-Q 7
PBT By Country FY17* FY16* FY17* PBT Y-o-Y Growth by Key Countries +15.1% +5.5% +4.7% +34.1% PPOP Y-o-Y +10.7% +48.5% +>1,000% +46.9% PBT Y-o-Y +22.0% +18.2% -147.8% -13.3% PBT Q-o-Q 8 Notes: * Excluding HQ costs, which mainly comprise of funding costs
Performance vs 2017 Targets FY17 FY17 Target 9.6% 9.5% ROE Dividend Payout Ratio 51% 40% - 60% Total Loans Growth * 0.2% 7.0% Loan Loss Charge 0.69% 0.60% - 0.65% CET 1 (CIMB Group) 12.2% >11.5% Cost to income 51.8% <53.0% 9 Notes: * Excluding bad bank
CIMB Group : FY17 Results 2. CIMB Group FY17 Financials
Yearly Earnings Trend Average BAU ROE from 2013 – 2017 10.0% Private Placement *RM ’ bil Notes: FY15: 1Q15 Excluding IB restructuring cost (RM202 mil) 2Q15 Excluding MY MSS cost (RM316 mil) and tax on MY MSS (RM79 mil ) 3Q15 Excluding ID MSS cost (RM134 mil) and tax and MI on ID MSS (RM36 mil) 4Q15: ID MSS cost (RM32mil) and tax on ID MSS (RM8 mil) FY14: 4Q14 Excluding gains from sale of Karawaci building (RM66 mil), gains from sale of Insurance Brokers (RM61 mil), IB goodwill impairment (RM128 mil) and DTA reversal (RM51 mil) 11 FY13: 1Q13 Excluding gains from sale of CIMB Aviva (RM515 mil), restructuring charges (RM217 mil) and tax impact (RM54 mil)
Earnings Summary (RM ‘mil) FY17 FY16 Y-o-Y 4Q17 3Q17 Q-o-Q Net interest income 12,207 11,263 8.4% 2,994 3,049 (1.8%) ^ Non interest income 5,419 4,802 12.8% 1,521 1,374 10.7% Operating income 17,626 16,065 9.7% 4,515 4,423 2.1% Overhead expenses (9,133) (8,651) 5.6% (2,307) (2,267) 1.8% PPOP 8,493 7,414 14.6% 2,208 2,156 2.4% Loan impairment (2,231) (2,409) (7.4%) (579) (595) (2.7%) Other provisions (165) (236) (30.1%) (98) (35) 180.0% Share of JV / Associates 13 115 (88.7%) 4 2 100.0% PBT 6,110 4,884 25.1% 1,535 1,528 0.5% Net profit 4,475 3,564 25.6% 1,060 1,132 (6.4%) EPS (sen) 49.6 41.0 21.0% 11.6 12.5 (7.2%) ROE (Annualised) 9.6% 8.3% 130bps 8.8% 9.5% (70bps) 12 Note: ^ Including gain on sale of Sun Life in 3Q16 (RM150mil)
Key Ratios ^ (%) FY17 FY16 Y-o-Y 4Q17 3Q17 Q-o-Q ROE ~ 9.6 8.3 8.8 9.5 NIM ~** 2.63 2.63 2.53 2.60 Non-interest income / total income 30.7 29.9 33.7 31.1 Cost to income 51.8 53.9 51.1 51.3 Allowance coverage # 70.5 79.8 70.5 72.4 Loan loss charge ~ 0.69 0.74 0.71 0.73 Gross impaired loans ratio 3.4 3.3 3.4 3.5 Net impaired loans ratio (Net of IA and PA) 1.0 0.7 1.0 1.0 Average shareholders’ funds (RM ’mil) 46,777 43,170 48,145 47,595 ROA ~ 0.90 0.75 0.85 0.91 Book value per share (RM) 5.23 5.11 5.23 5.31 Loan to Deposit (LDR) 90.8 95.6 90.8 92.0 CASA ratio 35.0 35.7 35.0 35.5 Notes: ~ Annualised ** Daily Average ^ Including gain on sale of Sun Life in 3Q16 (RM150 mil) 13 # Including regulatory reserve, allowance coverage was 84.1% as at end-Dec2017
Operating Expenses (RM ‘mil) FY17 FY16 Y-o-Y 4Q17 3Q17 Q-o-Q Personnel 5,254 4,821 9.0% 1,336 1,314 1.7% Establishment 2,130 2,108 1.0% 479 546 (12.3%) Marketing 302 311 (2.9%) 90 63 42.9% Admin & General 1,447 1,411 2.6% 402 344 16.9% Total 9,133 8,651 5.6% 2,307 2,267 1.8% Cost to income 51.8% 53.9% (210bps) 51.1% 51.3% (20bps) CI Ratio JAW ~ * ~ ^ ^ * 2014 2015 2013 2017 2013 2014 2015 2017 2016 2016 (BAU) (BAU) (BAU) (BAU) (BAU) (BAU) Notes: *FY15: 1Q15 Excluding IB restructuring cost (RM202 mil) 2Q15 Excluding MY MSS cost (RM316 mil) 3Q15 Excluding ID MSS cost (RM134 mil) 4Q15: ID MSS cost (RM32mil) ~FY14: 4Q14 Excluding gains from sale of Karawaci building (RM66 mil) and gains from sale of Insurance Brokers (RM61 mil) 14 ^FY13: 1Q13 Excluding gains from sale of CIMB Aviva (RM515 mil) and restructuring charges (RM217 mil)
Gross Loans Growth Loans by Country as at 31 Dec 17 # Divisions / Products (RM ‘bil) 31 Dec 17 31 Dec 16 Y-o-Y 30 Sep 17 Q-o-Q Consumer Banking (52.2%) 167.6 161.1 4.0% 166.1 0.9% Mortgages 86.7 80.2 8.1% 85.8 1.0% Term Loans 35.7 36.2 (1.4%) 35.4 0.8% Auto 19.4 19.7 (1.5%) 19.5 (0.5%) Credit Cards 9.5 9.8 (3.1%) 9.4 1.1% Personal Financing 4.6 4.9 (6.1%) 4.8 (4.2%) Enterprise 8.8 7.8 12.8% 8.4 4.8% Loans Growth* + Y-o-Y Others 2.9 2.5 16.0% 2.8 3.6% Malaysia 6.5% Commercial Banking (13.3%) 43.0 41.7 3.1% 43.0 - Indonesia ^ 2.8% Wholesale Banking (34.5%) 110.7 117.7 (5.9%) 113.6 (2.6%) Thailand ^ 2.9% Gross Loans excl bad bank* 321.3 320.5 0.2% 322.7 (0.4%) Singapore ^ (2.7%) Bad Bank 2.9 3.2 (9.4%) 3.1 (6.5%) Others** (11.8%) Total Gross Loans 324.2 323.7 0.2% 325.8 (0.5%) Group ~ 3.1% Notes: * Excluding FX fluctuations, total gross loans grew 3.1% Y-o-Y and 1.1% Q-o-Q + Gross loans exclude bad bank # Based on geographical location of counterparty, excluding bad bank ^ In local currency ~ Excluding FX fluctuations 15 ** Including Labuan, London, Cambodia, Hong Kong & Shanghai
Deposits Growth Deposits by Country as at 31 Dec 17 Divisions / Products (RM ‘bil) 31 Dec 17 31 Dec 16 Y-o-Y 30 Sep 17 Q-o-Q Consumer Banking (46.2%) 164.8 151.0 9.1% 166.4 (1.0%) Commercial Banking (12.8%) 45.8 45.4 0.9% 45.3 1.1% Wholesale Banking # (41.0%) 146.4 142.1 3.0% 142.3 2.9% Total * 357.0 338.5 5.5% 354.0 0.8% Deposits Growth Y-o-Y Malaysia 12.4% Indonesia ^ 4.8% Thailand ^ (3.4%) Singapore ^ 2.5% Others** (4.8%) Group ~ 8.0% Notes: * Excluding FX fluctuations, total group deposits +8.0%Y-o-Y and +2.2% Q-o-Q ^ In local currency ~ Excluding FX fluctuations # Including deposits with options classified as derivatives in MY & SG 16 ** Including Labuan, London, Cambodia, Hong Kong & Shanghai
CASA Growth CASA by Country as at 31 Dec 17 Country (RM ‘bil) 31 Dec 17 31 Dec 16 Y-o-Y 30 Sep 17 Q-o-Q Malaysia 68.6 63.1 8.7% 67.2 2.1% Indonesia ** 29.8 30.7 (2.9%) 31.3 (4.8%) Thailand 7.7 10.6 (27.4%) 8.4 (8.3%) Singapore 16.4 14.1 16.3% 16.0 2.5% + Others 2.4 2.3 4.3% 2.7 (11.1%) Total * 124.9 120.8 3.4% 125.6 (0.6%) CASA Growth Y-o-Y Malaysia 8.7% Indonesia ^ 8.3% Thailand ^ (27.3%) Singapore ^ 18.6% Group ~ 6.8% Notes: * Excluding FX fluctuations, total CASA grew 6.8% Y-o-Y and 1.1% Q-o-Q ** Adjusted for high cost saving deposits classified as Structured Deposits ^ In local currency ~ Excluding FX fluctuations 17 + Including Labuan, London, Cambodia, Hong Kong & Shanghai
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