Analysts Presentation 1H12 Results 15 August 2012 CIMB GROUP : - PowerPoint PPT Presentation

Analysts Presentation 1H12 Results 15 August 2012

CIMB GROUP : 1H12 RESULTS KEY HIGHLIGHTS

Key Financial Highlights (1) Revenue Net Profits ROE * Cost to Income +15.3% +12.3% +20bps -90bps 56.2 RM ’ bil RM ’ bil 16.0 % % 2,120 6,581 55.3 15.8 1,887 5,709 1H11 1H12 1H11 1H12 1H11 1H12 1H11 1H12 Q-o-Q +2.2% Q-o-Q +9.7% Q-o-Q +120bps Q-o-Q +40bps Note: *Annualised 3

Key Financial Highlights (2) Gross Impairment Gross Loans ** Deposits NIM * Loans Ratio +14.5% +7.3% -130bps -2bps 5.7 RM ’ bil RM ’ bil % % 195.8 226.4 3.11 4.4 3.09 210.9 171.0 Jun-11 Jun-12 Jun-11 Jun-12 1H11 1H12 1H11 1H12 Q-o-Q +5.3% Q-o-Q -1.5% Q-o-Q +9bps Q-o-Q -40bps Notes: * Annualised 4 ** Excluding bad bank

PBT by Division 1H12 1H11 Investment Investment Banking Banking 5% 7% Investments 10% Investments 13% Consumer Consumer Banking Banking 40% 40% Corporate Banking 20% Corporate Banking 26% Markets Markets 25% 14% 1H12 PBT Y-o-Y Growth by Key Division Consumer Investment Corporate Banking Banking Banking Markets Investments +12.4% +105.6% -18.1% -16.4% -15.6% 5

Other Highlights  Lower dividend payout of 18% or 5 sen per share. Prudent move as we await BNM’s new capital framework “CIMB 2.0 ” has strengthen synergies in wholesale business   “CIMB 2.0 ” in consumer still WIP  BoC acquisition on schedule  RBS APAC IB acquisition on schedule but minus India  Significant management changes in 1H12 6

CIMB GROUP : 1H12 RESULTS 1H12 FINANCIALS

Earnings Summary (RM ’mil) 1H12 1H11 Y-o-Y 2Q12 1Q12 Q-o-Q Net interest income 4,262 3,878 9.9% 2,189 2,073 5.6% Non interest income 2,319 1,831 26.7% 1,137 1,182 (3.7%) 6,581 5,709 15.3% 3,326 3,255 2.2% Operating income (195) (92) 112.0% (51) (144) (63.9%) Loan impairment (18) 21 n.a. (6) (12) (50.0%) Other provisions Overhead expenses (3,639) (3,207) 13.5% (1,847) (1,792) 3.1% Share of JV / Associates 82 80 2.5% 48 34 41.2% PBT 2,811 2,511 11.9% 1,470 1,341 9.6% 2,120 1,887 12.3% 1,109 1,011 9.7% Net profit 28.5 25.4 12.2% 14.9 13.6 9.6% EPS (sen) 16.0% 15.8% 20bps 16.8% 15.6% 120bps ROE (Annualised) Note: Weighted average shares of 7.43 bil in 2Q12 & 1Q12 8

Quarterly Earnings Trend 17.8% 17.1% 16.9% 16.8% 16.3% 16.1% 15.7% 15.6% 14.8% 3,381 3,326 3,255 3,186 3,032 2,993 2,959 2,897 2,750 1,470 1,405 1,341 1,287 1,278 1,233 1,180 1,180 1,143 1,133 1,109 1,012 1,011 970 917 884 911 873 ^ ^ ^ 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 Operating income* PBT* Net profit* ROE** Notes: 9 ^ Retrospective restatement due to adoption of FRS 2 for share-based payment expense * Amounts denoted in RM ’mil ** Annualised

Regional PBT By Segment (Estimated) PBT (RM ‘mil) 1H12 1H11 Y-o-Y 2Q12 1Q12 Q-o-Q Consumer Banking (39.9%) 1,122 998 12.4% 596 526 13.2% 2.6% Malaysia (29.1%) 817 783 4.3% 413 404 Indonesia (11.0%) 310 235 31.7% 182 128 41.8% Singapore (0.1%) 2 (15) n.a. 3 (1) n.a. n.a. Thailand (-0.2%) (4) (1) n.a. (0) (4) (21.6%) Others (-0.1%) (3) (4) 32.4% (2) (1) Wholesale Banking (50.5%) 1,418 1,191 19.1% 773 645 19.5% Investment Banking (5.3%) 148 181 (18.1%) 134 14 838.6% 20.6% Corporate Banking (19.7%) 553 661 (16.4%) 303 250 (11.8%) Markets (25.5%) 717 349 105.6% 336 381 Investments (9.6%) 271 322 (15.6%) 101 170 (39.8%) 9.6% PBT 2,811 2,511 11.9% 1,470 1,341 Notes: Corporate Banking includes corporate lending and deposit taking 10 Markets includes treasury activities and services which include foreign exchange, money market, derivatives and trading of capital market instruments. It includes the Group’s equity derivatives which develops and issues new equity derivatives instruments such as structured wa rrants and over-the- counter options to provide investors with alternative investment avenues.

Key Ratios (%) 1H12 1H11 Y-o-Y 2Q12 1Q12 Q-o-Q ROE * 16.0 15.8 16.8 15.6 NIM * 3.09 3.11 3.13 3.04 Non-interest income / total income 35.2 32.1 34.2 36.3 Cost to income 55.3 56.2 55.5 55.1 Allowance coverage 82.3 80.4 82.3 81.3 Allowance coverage after regulatory 90.0 83.0 90.0 87.4 reserve # 0.10 Loan loss charge * 0.20 0.10 0.30 Gross impaired loans ratio 4.4 5.7 4.4 4.8 Gross impaired loans ratio (excluding 3.6 4.5 3.6 3.9 SEASAM) Net impaired loans ratio (Net of IA and PA) 0.8 1.2 0.8 0.9 Average shareholders’ funds (RM ’mil) 26,578 23,900 26,492 25,994 1.38 1.37 1.42 1.32 ROA * Book value per share (RM) 3.64 3.31 3.64 3.49 CASA ratio ** 34.9 34.3 34.9 34.1 Notes: * Annualised 11 # Regulatory reserve maintained in equity as an additional credit risk absorbent in accordance with BNM requirement. This is to ensure robustness on the loan/financing loss estimates methodology with the adoption of FRS 139 beginning 1 January 2010 ** Adjusted for high cost saving deposits classified as Structured Deposits

LD Ratios Loan to Deposit Ratio 98.8% 96.5% 95.3% 94.4% 93.4% 91.0% 89.7% 88.8% 88.3% 88.0% 78.8% 77.0% 75.9% 75.9% 72.9% Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 12

Strong NoII Growth Notable Deals 1H12 Banca Income 28.8% Y-o-Y RM ’mil 114 10.1 89 7.3 74.8 57.8 5.1 2.9 24.1 20.5 1H11 1H12 Malaysia Singapore Indonesia Thailand Breakdown of NoII 26.7% Y-o-Y -3.8% Q-o-Q RM ’mil 1,182 2,319 1,137 42 1% 3% 1,831 191 8% 9% 56 179 1,083 39% 54% 612 49% 984 1,002 37% 1H11 1H12 1Q12 2Q12 Fee and Commission Income Net Trading Income Brokerage Income Others Fee and Commission Income Net Trading Income Brokerage Income Others 13

Operating Expenses 1H12 1H11 Y-o-Y 2Q12 1Q12 Q-o-Q (RM ’mil) 1,958 1,682 16.4% 982 976 0.6% Personnel Establishment 802 698 14.9% 380 423 (10.2%) 195 173 12.7% 111 84 32.1% Marketing Admin & General 684 654 4.6% 374 309 21.0% 3,639 3,207 13.5% 1,847 1,792 3.1% Total 14

Gross Loans Growth (Regional) Divisions / Products 30 Jun 12 30 Jun 12 30 Jun 11 Y-o-Y 31 Mar 12 Q-o-Q (RM ‘ bil) Retail Banking (48.5%) 97.0 88.4 9.8% 93.9 3.3% Others Singapore 2% 6% Mortgages 49.1 44.0 11.5% 47.7 2.8% Thailand 7% Auto 11.9 11.3 5.6% 11.6 2.6% Term Loans 24.8 22.8 8.6% 23.7 4.7% Indonesia Malaysia 24% Credit Cards 5.5 5.2 4.3% 5.3 2.1% 61% Micro Credit 3.7 3.1 21.3% 3.6 2.2% 30 Jun 11 Others 2.1 2.0 5.6% 2.0 8.2% Others Commercial Banking 31.5 26.2 19.8% 29.2 8.1% Singapore 2% (15.7%) 5% Thailand Corporate Banking 6% 67.3 56.4 19.3% 62.9 6.9% (33.7%) Total 195.8 171.0 14.5% 186.0 5.3% Indonesia 24% Bad Bank (2.1%) 4.2 5.8 (27.6%) 4.5 (7.7%) Malaysia 63% Total Gross Loans 200.0 176.8 190.5 5.0% 13.1% 15

Deposits Growth (Regional) 30 Jun 12 Divisions / Products 30 Jun 12 30 Jun 11 Y-o-Y 31 Mar 12 Q-o-Q (RM ‘ bil) Thailand 5% Retail Banking (45.8%) 103.7 92.8 11.6% 100.7 2.9% Indonesia 21% Current 22.9 20.0 14.3% 22.5 2.0% Singapore 4% Savings 25.2 22.0 14.5% 24.5 2.8% Malaysia 70% Fixed & Structured 55.6 50.8 9.4% 53.7 3.4% Deposits 30 Jun 11 Commercial Banking 34.7 30.3 14.8% 34.5 0.7% (15.3%) Thailand Corporate and 4% 88.0 87.8 0.2% 94.6 (7.0%) Indonesia Treasury (38.9%) 21% Total 226.4 210.9 7.3% 229.8 (1.5%) Singapore 4% Malaysia 71% 16

CASA Growth 30 Jun 12 Country (RM ‘ bil) 30 Jun 12 30 Jun 11 Y-o-Y 31 Mar 12 Q-o-Q Others CiMB Thai >0.1% 4% CIMB Niaga Malaysia & Singapore * 55.6 50.4 10.5% 55.9 (0.7%) 26% CIMB Niaga ^ ** 20.2 19.4 4.1% 19.7 2.5% CIMB Thai + 3.1 2.5 24.0% 2.7 14.8% Malaysia & Singapore 70% Others 0.1 - n.a 0.1 - 30 Jun 11 Total 79.0 72.3 9.3% 78.4 0.8% CIMB Thai 3% CIMB Niaga 26% Malaysia & Singapore 71% Notes: * Malaysia CASA (excluding Singapore) fell -1.0% Q-o-Q and grew 9.2% Y-o-Y 17 ^ As reported by CIMB Niaga, in IDR, CASA grew 1.3% Q-o-Q and 8.3% Y-o-Y + As reported by CIMB Thai, in THB, CASA grew 12.7% Q-o-Q and 16.5% Y-o-Y ** Adjusted for high cost saving deposits classified as Structured Deposits

AFS MTM Position ^ 678.6 663.9 639.0 ^ ^ 612.2 611.0 ^ 539.0 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Note: ^ Restated due to adoption of MFRS 1 First Time Adoption of Malaysian Financial Reporting Standards 18

Capital Management – CIMB Bank 16.9% 16.8% 15.7%^ 15.9% RWCR 15.0% 14.7% 14.7% 14.6% 15.1% 13.7%^ 15.0% 14.6% 14.5% Tier 1 13.9% 13.9% 13.8% 13.8% 13.1% 12.4% Core Tier 1 11.4%^ 12.1% 11.9% 11.5% 11.4% 11.4% 11.4% 10.8% RWA (RM’mil) 101,905 106,377 110,349 105,449 104,381 102,240 110,329 114,375 Sep -10 (B2) Dec -10 (B2) Mar -11 (B2) Jun -11 (B2) Sep -11 (B2) Dec -11 (B2) Mar -12 (B2) Jun -12 (B2) CIMB Group Jun-12 Mar-12 Gearing ratio 21.2% 20.2% Double leverage ratio 118.6% 118.1%  New BNM Basel III framework for bank holding company expected at the end of FY12 Note: RWCR , Tier 1 and Core Tier 1 capital ratios included quarterly net profits and after proposed dividends. 19 ^ Before proposed dividends

CIMB GROUP : 1H12 RESULTS MALAYSIA & SINGAPORE CONSUMER BANK