Analyst Presentation FY19 Results CIMB Group Holdings 28 February 2020 FORWARD Together 1
FY2019 Year In Review Met all targets except for CIR * Actual vs Targets FY19 FY19 Target Revenue growth came in strongly at 8.2% despite OPR cut and macro challenges ROE 9.3% 9.0 - 9.5% Healthy loans growth of 6.7%, outgrowing market in Malaysia, Thailand and Singapore Dividend Asset quality remains sound, except for select 50.9% 40% - 60% Payout Ratio corporate accounts in Indonesia Investments made in high growth areas such as Total Loan Touch ‘N Go, Vietnam and Philippines 6.7% 6.0% Growth Structural optimisation and strengthening efforts continued Loan Loss 0.44% 0.40% - 0.50% Charge Commendable net profit growth of 7.7% YoY , translating to an ROE of 9.3%, meeting our FY19 target CET 1 12.9% >12.0% (CIMB Group) Ended the year with CET1 of 12.9%, with dividend payout ratio of 50.9% Flat Cost to 53.4% income (52.6%) 2 Note: * Excludes transformational cost (net of tax) of RM270mil
PBT By Segment Consumer affected from impact of OPR cut in MY , MFRS9 adjustments and normalisation of provisions. GVP & Funding However underlying business remain sound with loan 17% growth of 9% Consumer Banking FY19 30% Commercial stronger YoY from operating income Group PBT expansion, lower provisions and NPL sale in Indonesia RM6,618 mil Wholesale Wholesale improved from better T&M trading income Banking 5.5% 29% Improved returns from the Group’s fixed income Commercial portfolio and higher gain from sale of the equities Banking business drove GVPF performance 24% Consumer Commercial Wholesale GVP & Funding^ Banking Banking Banking Y-o-Y 26.3% 87.1% 5.1% 22.0% Q-o-Q 5.0% 31.5% 19.0% 58.3% 3 Note: ^ Excludes transformational cost of RM366mil and impairment and write off of intangible assets of RM277mil in FY19 and CPAM & CPIAM gain of RM928mil in FY18
PBT By Country Malaysia higher YoY from loan growth (+6.0%) and Others Singapore stronger trading income particularly in 3Q 2% 7% Thailand Indonesia PBT declined from higher Corporate 7% provisions Indonesia Thailand’s YoY improvement driven by loan growth 15% (+6.1%) and lower provisions Malaysia 69% Singapore PBT expansion led by loan growth (+3.7%), improved NIM and lower provisions ~ Malaysia* Indonesia* Thailand Singapore Y-o-Y 8.0%^ 20.2% 24.1% 18.8% Q-o-Q 2.6% 100.9% 167.8% 8.1% Notes: ^ Excludes CPAM gain of RM928mil in FY18 4 * 3Q19: Excludes transformational cost of RM349 mil ~ 4Q19: Excludes transformational cost RM17mil; Impairment and write off of intangible assets of RM277mil
Operating Income NII driven by 6.7% loan growth with (RM 'mil) FY19 Y-o-Y 4Q19 Q-o-Q NOII +12.9% from stronger T&M and trading income, and higher 12,659 6.3% 3,346 3.0% Net interest income gain from sale of equities business Non interest income ^ 5,137 12.9% 1,177 (15.3%) 2.5% lower QoQ mainly due to the Total 17,796 8.2% 4,523 (2.5%) absence of Niaga NPL sale in 3Q19 Net Interest Margin* Marginally lower NIM led by compression in Malaysia and Thailand, but Indonesia NIM improved YoY 2.66% 2.63% 2.63% ~ 2.50% 2.49% 2.46% 2015 2016 2017 2018 2019 BAU BAU Notes: * Annualised 5 ^ Excludes CPAM & CPIAM gain of RM928mil in FY18 ~ Normalised NIM excludes the MFRS9 related adjustment to NII
Operating Expenses FY19 4Q19 (RM ‘mil) Y-o-Y Q-o-Q Excluding FX, Opex +7.8% YoY BAU* BAU** from investments and Foward23- related expenses Personnel 5,399 9.6% 1,332 (5.1%) Excluding FX and incremental Establishment 2,002 2.8% 520 7.2% investments costs, BAU Opex Marketing 424 20.8% 153 34.2% +4.2% YoY Admin & General 1,676 17.1% 463 6.4% Total 9,501 9.8% 2,468 1.3% Cost-to-income Ratio 55.6% 53.9% 53.4% 52.6% 51.8% ^ 50.3% 2015 2016 2017 2018 2019 BAU BAU BAU Notes: ~ Excludes CPAM & CPIAM gain of RM928mil * Exclude FY19 transformational cost of RM366mil; Impairment and write off of intangible assets of RM6mil 6 ** Exclude 4Q19 transformational cost of RM17mil ^ Excluding incremental Forward23 costs
Loan Provisions +14.5% Y-o-Y +50.0% Q-o-Q Loan provisions +14.5% YoY and +50.0% QoQ mainly from Indonesia Corporate RM 'mil FY19 LLC stood at 0.44% (-3bps YoY) within 1,639 the target of 40-50bps. Excluding the MFRS9 1,432 related adjustments, LLC would have been 0.55% 606 404 FY18 FY19 3Q19 4Q19 106.3% 99.6% 95.9% 92.2% 84.1% Allowance Coverage ^ 3.4% 3.3% Gross Impaired Loans Ratio 3.1% 3.0% 2.9% Loan Loss Charge ~ 0.74% 0.73% 0.69% * 0.55% 0.41% 0.44% Notes: ^ Including regulatory reserves 7 ~ Annualised 2015 2016 2017 2018 2019 * Normalised
Gross Loans Loans-to-Deposit Ratio (RM 'bil) Dec-19 Y-o-Y Q-o-Q Consumer Banking 184.9 9.0% 2.4% 95.6% 92.9% Commercial Banking 65.5 0.0% 1.7% 90.8% 91.2% 92.0% Wholesale Banking 119.1 7.2% 2.8% Total 369.5 6.7% 2.4% 2015 2016 2017 2018 2019 Others ~ Loan Growth by Country (Y-o-Y) 5% Singapore 8% ^ ** +6.0% +6.1% Others +21.9% Thailand 10% # 31 Dec-19 RM369.5 bil ~ Malaysia ^ ^ Indonesia 60% +3.0% +3.7% +5.5% 17% Notes: ~ Excluding FX fluctuations ^ In local currency 8 # Based on geographical location of counterparty ** Including London, Cambodia, Vietnam, Philippines, Hong Kong & Shanghai
Deposits CASA Ratio (RM 'bil) Dec-19 Y-o-Y Q-o-Q Consumer Banking 179.0 8.9% 3.3% 35.7% 35.0% 34.4% Commercial Banking 65.7 1.1% 7.2% 34.1% 32.7% Wholesale Banking 157.0 4.5% (1.4%) Total 401.7 5.8% 2.0% 2015 2016 2017 2018 2019 WY Others Deposit Growth by Country (Y-o-Y) Singapore 2% 10% ^ ** Thailand +6.2% +7.5% +3.3% Others 7% 31 Dec-19 Indonesia RM401.7 bil 14% ~ ^ ^ Malaysia +2.5% -1.9% +4.8% 67% Notes: ~ Excluding FX fluctuations 9 ^ In local currency ** Including London, Cambodia, Vietnam, Philippines, Hong Kong & Shanghai
Capital and Liquidity Management Total Capital 17.1% 16.8% 16.7% CET1 of 12.9% above FY19 target of >12%; in line with Forward23 3.2% 2.8% 2.5% Tier 2 target of 13% 1.1% 1.1% 1.5% Tier 1 Declared FY19 second interim CET1 cash dividend of RM0.12/share 13.1% 12.9% 12.5% Full year DRS implies an average electable portion of 50% ~ # LCR remains comfortably above Dec-18 ^ Sep-19 Dec-19 100% for all banking entities Liquidity Coverage Ratio 185% 175% CIMB Bank Global * 140% 165% 137% 135% CIMB Islamic 169% 148% 142% CIMB Niaga 140% 132% 121% CIMB Thai Jun-19 Sep-19 Dec-19 Notes: ^ Post CIMBGH’s FY18 Second Interim Dividend of RM1,148 mil & actual corresponding DRS (70.3% take-up rate); and reinvestment of cash dividend surplus into CIMB Bank ~ Post CIMBGH’s FY19 First Interim Dividend of RM1,362 mil & actual corresponding DRS (66.5% take-up rate); and reinvestment of cash dividend surplus into CIMB Bank 10 # Post CIMBGH’s proposed FY19 Second Interim Dividend of RM1,191 mil (no DRS) * CIMB Bank + CIMB Singapore + CIMB London + CIMB Hong Kong + CIMB Shanghai + CIMB Labuan Offshore + CIMB Labuan Ltd
Consumer Banking (RM 'mil) FY19 Y-o-Y 4Q19 Q-o-Q Personal Financing Others 3% 2% Net interest income 5,492 2.0% 1,485 4.1% Credit Cards 5% Non interest income 1,919 3.3% 503 (10.0%) Auto Operating income 7,411 2.3% 1,988 0.1% Gross Loans 13% RM184.9bil Overhead expenses (4,389) 6.7% (1,091) (2.7%) 9.0% Term PPOP 3,022 (3.4%) 897 3.7% Mortgages Loans 57% (Provisions) / Writeback (1,067) 126.5% (286) (0.7%) 20% Share of JV / Associates 4 100.0% - (100.0%) PBT 1,959 (26.3%) 611 5.0% Current Operating income improved by 2.3% YoY mainly from loan growth and the recovery in Account wealth management fee income 10% Deposits Excluding the MFRS9 related adjustments, FY19 NII would have been 4.5% higher, Fixed and RM179.0bil provisions increased by 84.1% and PBT would have been -12.9% YoY Structured Savings 8.9% Deposits Opex increase from business expansion in Thailand and Indonesia Account 65% 25% Higher provisions due to MFRS9 related adjustments and balance sheet growth 11
Commercial Banking ^ (RM 'mil) FY19 Y-o-Y 4Q19 Q-o-Q Others Singapore 3% Net interest income 2,700 4.3% 702 3.7% 8% Thailand Non interest income 712 17.3% 143 (45.6%) 7% Gross Loans Operating income 3,412 6.8% 845 (10.1%) Malaysia RM65.5bil Overhead expenses (1,811) 6.2% (452) (2.6%) 52% Flat Indonesia PPOP 1,601 7.4% 393 (17.4%) 30% (Provisions) / Writeback 8 (101.3%) (150) 24.0% Share of JV / Associates - - - - PBT 1,609 87.1% 243 (31.5%) Commercial Banking had a good FY19 with strong PBT growth of 87.1% YoY Fixed and Current Structured 4.3% NII expansion underpinned by continued loan growth momentum in Malaysia, with Account Deposits Deposits NOII +17.3% YoY 55% RM65.7bil 42% Provisions writebacks due to MFRS9 related adjustments. Underlying Commercial 1.1% Banking asset quality continues to improve. Savings Account 3% 12 Note: ^ Including London, Cambodia, Vietnam, Hong Kong & Shanghai
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