Analyst Presentation First Half 2017 Results (Unaudited) Jakarta, 31 July 2017

Transcription

1 Analyst Presentation First Half 2017 Results (Unaudited) Jakarta, 31 July 2017

2 Key Highlights Steady operating income grew by 6.3% YoY due to much improved NII Gross loans grew by 2.8% YoY despite the soft environment CASA grew 1.6% YoY, CASA ratio at 54.32% NIM improved 40 bps YoY to 5.87% from improved liability management Operating expenses remain under control, growing 2.3% YoY Improved credit charges at 2.35%. However, remain elevated given the economic environment 1H17 PBT increased 77.3% YoY to Rp 1,855 billion Capital position strengthened with CAR increasing 81 bps YoY to 18.43% 2

3 CIMB Niaga: 1H 2017 Results Financial Results

4 Income Statement - Consolidated (Rp bil) 1Q17 2Q17 QoQ 1H16 1H17 YoY Interest Income 5,079 5, % 10,616 10, % Interest Expense (1,983) (1,869) -5.7% (4,803) (3,852) -19.8% Net Interest Income 3,096 3, % 5,813 6, % Non Interest Income % 1,464 1, % Operating Income 3,812 3, % 7,277 7, % Operating Expenses (1,873) (1,879) 0.3% (3,669) (3,752) 2.3% GA & Promotion Expenses (951) (927) -2.5% (1,918) (1,878) -2.1% Personnel Expenses (922) (952) 3.3% (1,751) (1,874) 7.0% Pre Provision Operating Profit 1,939 2, % 3,608 3, % Provision Expenses (1,079) (1,049) -2.8% (2,562) (2,128) -16.9% PBT % 1,046 1, % Net Profit % 736 1, % EPS (Rp, full amount) % % 4

5 Financial Position - Consolidated (Rp tril) Jun-16 Mar-17 Jun-17 QoQ YoY Cash & Short Term Funds % -4.7% Govt Bonds & Marketable Securities % -5.9% Loans % 2.8% Loan Provision (8.27) (7.98) (7.54) -5.5% -8.8% Fixed & Other Assets % -1.9% Total Assets % 1.0% Current Account % -1.2% Saving Account % 4.3% Time Deposit & Structured Deposit % -7.5% Total Customer Deposits % -2.7% Other Liabilities % 16.5% Total Liabilities % -0.2% Equity % 8.7% 5

6 Key Ratios (%) 1Q17 2Q17 QoQ 1H16 1H17 YoY ROA ROE (shareholders fund) NIM Fee Income / Total Income Cost to Income (CIR) CASA Ratio Loan to Deposit (LDR) Gross NPL ` Net NPL Cost of Credit Gross Impairment Ratio Loan Loss Coverage Impaired LLC

7 Quarterly Earnings Trend (Rp bil) Operating Income PBT Net Profit ROE (shareholders' fund) 3,724 3,849 3,790 3,812 3, % 6.77% 6.81% 7.40% 8.39% Q16 3Q16 4Q16 BAU* 1Q17 2Q17 * BAU excludes one-off fee income Rp 276 bio 7

8 Optimizing NIM strategy Net Interest Margin (%, YTD Annualized) Net Interest Income Breakdown (incl. FTP) 5.47% 5.54% 5.64% 5.71% 5.87% Treasury 21% Consumer 39% Corporate 16% Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Quarterly Annualized NIM 2Q16 3Q16 4Q16 1Q17 2Q % 5.67% 5.91% 5.71% 6.05% MSME 16% Net Interest Income 2Q16: Rp 2,976 billion 2Q17: Rp 3,233 billion Commercial 8% 8

9 Non Interest Income Non Interest Income Breakdown (Rp bil) 1H16 1H17 YoY Recovery % 1, , Arranger & Syndication Fees % Trans. Banking & Trade Fin % Forex & Fixed Income Derivatives % Fees & Commissions % Bancassurance % Funding & Admin Fee % Remittance % Card Related % Other Fees & Commissions % Total 1,464 1, % NoII Quarterly 1H16 1H * BAU excludes one-off fee income Rp 276 bio 2Q16 3Q16 4Q16* 1Q17 2Q17 9

10 Operating Expenses & Cost to Income Ratio YTD CIR (%) 50.42% 49.82% 49.40% 49.13% 48.51% YTD Cost to Income Ratio Jun-16 Sep-16 Dec-16* Mar-17 Jun-17 Rp bil 1Q17 2Q17 QoQ 1H16 1H17 YoY Advertising & Promotion % % General & Admin % 1,781 1, % Personnel % 1,751 1, % Total 1,873 1, % 3,669 3, % (%) 1Q17 2Q17 QoQ 1H16 1H17 YoY Cost to Income * BAU excludes one-off fee income Rp 276 bio 10

11 Loans Growth Segment (Rp tril) Jun 16 Mar 17 Jun 17 QoQ YoY Consumer Banking (28%) % -6.2% Mortgages % 9.4% Auto Loans % -36.0% Credit Cards % 13.1% Personal, Multipurpose & Others (1) % 2.3% MSME Banking (20%) % 8.0% Small Medium % 12.1% Micro Linkage & Others % 4.8% Micro Finance % -57.3% Commercial Banking (17%) % -0.9% Corporate Banking (35%) % 10.2% Total (100%) % 2.8% Industry 4,168 4,370 4,425 (2) 1.3% (3) 6.2% (4) (1) Others include Staff loan & Pension Loan (2) As of May-17 (3) Growth from Mar-17 to May-17 (4) Growth from Jun-16 to May-17 Industry source: Indonesia Banking Statistics 11

12 Asset Quality Management Asset Quality Gross Impairment Ratio Gross NPL Net NPL Coverage Ratio Loan Loss Coverage Impaired LLC 4.94% 5.20% 5.24% 5.07% 5.01% 3.90% 4.21% 3.89% 3.91% 3.89% % % % % % 95.58% 85.47% 86.08% 89.46% 83.58% 1.93% 2.39% 2.16% 2.11% 2.03% Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Loans by Collectability (% of Total Loan) Special Mention 8.38% NPL 3.90% Special Mention 6.00% NPL 3.91% Special Mention 7.17% NPL 3.89% Jun-16 Current 87.72% Mar-17 Current 90.09% Jun-17 Current 88.94% 12

13 Asset Quality by Business Segment Gross NPL (%) 4.1% 3.8% 3.1% 3.1% 2.6% Corporate 6.8% 8.3% 7.6% 7.0% 7.8% Commercial 3.1% 3.6% 3.6% 3.7% 3.6% MSME 2.6% 2.6% 2.7% 3.0% 3.0% Consumer Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 13

14 Saving Account grew 4.3% YoY Rp tril Jun-16 Mar-17 Jun-17 QoQ YoY CASA % 1.6% Current Account % -1.2% Saving Account % 4.3% Time Deposits & Structured Deposits % -7.5% Total % -2.7% CASA Industry 2,491 2,636 2, % 8.4% Current Account 1,072 1,146 1, % 12.6% Savings 1,419 1,490 1, % 5.3% Time Deposits Industry 2,084 2,281 2, % 10.9% Industry 4,575 4,917 5,012 (1) 1.9% (2) 9.6% (3) (1) As of May-17 (2) Growth from Mar-17 to May-17 (3) Growth from Jun-16 to May-17 Industry source: Indonesia Banking Statistics 14

15 Improved Capital Base Total Equity (Rp tril) CAR (%) Consolidated Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Tier 1 Tier 2 Capital Adequacy Ratio (%) Jun-16 Mar-17 Jun-17 CAR with Credit Risk Market Risk (0.20) (0.16) (0.19) Operational Risk (2.69) (2.91) (2.84) Total CAR

16 CIMB Niaga: 1H 2017 Results Consumer Banking

17 Consumer Loans by Products Total Loans (Rp tril) Growth (Composition) QoQ YoY Total -1.4% -6.2% Personal, Pension Loan, Multipurpose & Others (10%) Credit Cards (16%) -2.4% 2.3% 1.4% 13.1% Jun-16 Mar-17 Jun-17 Auto Loans (23%) Mortgage (51%) -10.9% -36.0% 2.9% 9.4% 17

18 Mortgages Total Loans (Rp tril) +9.4% YoY +2.9% QoQ Jun-16 Mar-17 Jun-17 Market Share NPL Ratio 6.6% 6.7% 6.8% 2.8% 2.5% 2.4% Jun-16 Mar-17 Jun-17 (1) Market Share Mortgage Lender Mar-17 BTN 34.9% BCA 17.7% BNI 9.7% Mandiri 8.1% CIMB Niaga 6.7% (1) As of May-17 Industry Source: Indonesia Banking Statistics 18

19 Auto Loans Realignment Total Loans (Rp tril) 2.8% 3.4% 3.8% Growth QoQ YoY Total -10.9% -36.0% Indirect Auto Loans Direct Loans 17.2% -50.3% -15.9% -51.3% -12.1% -33.5% Jun-16 Mar-17 Jun-17 NPL Ratio 19

20 Unsecured Business Number of Credit Cards Outstanding Balance (thou) +12.0% YoY (Rp tril) 1.8% 3.5% 3.6% +8.8% YoY +1.8% QoQ 2,327 2, % QoQ , Jun-16 Mar-17 Jun-17 Jun-17 # Bank Card Mkt Share 1 BCA n/a 2 Mandiri n/a 3 CIMBN 14.1% Jun-16 Mar-17 Jun-17 Personal, Pension Loan, Multipurpose & Others Credit Card NPL - unsecured business Market share based on card issued (source: Bank Indonesia) 20

21 CIMB Niaga: 1H 2017 Results MSME Banking

22 MSME Loans Total Loans (Rp tril) Growth QoQ YoY Total 1.2% 8.0% Micro Finance Micro Linkage & others -14.5% -57.3% 2.5% 4.8% Small Medium 1.1% 12.1% Jun-16 Mar-17 Jun-17 22

23 CIMB Niaga: 1H 2017 Results Commercial Banking

24 Commercial Loans Total Loans (Composition) (Rp tril) Growth QoQ YoY Total 3.6% -0.9% Working Capital 4.7% 2.6% Investment 1.7% -6.2% (61%) (62%) (63%) (39%) (38%) (37%) Jun-16 Mar-17 Jun-17 24

25 CIMB Niaga: 1H 2017 Results Corporate Banking

26 Corporate Portfolio Total Loans (Composition) (Rp tril) Growth QoQ YoY Total 5.8% 10.2% Working Capital 16.9% 16.8% Investment -3.0% 4.5% (46%) (44%) (49%) (54%) (56%) (51%) Jun-16 Mar-17 Jun-17 26

27 CIMB Niaga: 1H 2017 Results Syariah Banking

28 Syariah Banking Total Financing (Rp tril) +63.5% YoY Total Deposits (Rp tril) +32.2% YoY % QoQ % QoQ Jun-16 Mar-17 Jun-17 Jun-16 Mar-17 Jun-17 28

29 CIMB Niaga: 1H 2017 Results Final Remarks

30 Final Remarks First half performance within expectations but the environment remains challenging Focus on CASA growth with recent innovative product launches Leverage on digital strategy to enhance cross sell and broaden customer base Realign the auto business model in 2017 SME and Consumer banking will be the key drivers for growth Loan growth to follow economic trends, while asset quality management remains paramount 30

31 THANK YOU 31

32 CIMB Niaga: 1H 2017 Results Appendices

33 Corporate Structure 30 June 2017 Khazanah Nasional EPF PNB KWAP MUFG Others 29.1% 12.3% 8.8% 5.3% 4.6%* 39.9% CIMB Group Holdings Berhad 99.9% Public CIMB Group Sdn Bhd 0.7% 6.8% 92.5%^ 99.9% * Only direct stake held via BTMU ^ Includes PT Commerce Kapital 1.02% 33

34 Board of Commissioners Dato Sri Nazir Razak Glenn M.S. Yusuf Zulkifli M. Ali Pri Notowidigdo President Commissioner Vice President Commissioner Independent Commissioner Independent Commissioner Armida Salsiah Alisjahbana Jeffrey Kairupan David Richard Thomas Ahmad Zulqarnain Onn Independent Commissioner Independent Commissioner Commissioner Commissioner 34

35 Directors Tigor M. Siahaan Wan Razly Abdullah Rita Mas Oen Megawati Sutanto Vera Handajani President Director Strategy & Finance Director Operations & IT Director Credit Director Risk Management Director John Simon Lani Darmawan Pandji Pratama Djajanegara Hedy Maria Helena Lapian Fransiska Oei Treasury & Capital Market Director Consumer Banking Director Syariah Banking Director Human Resources Director Compliance, Corp Affairs & Legal Director 35

36 Vision & Mission Vision To be The Leading ASEAN Company Mission To provide universal banking services in Indonesia as a high-performing, institutionalised and integrated company located in ASEAN and key markets beyond, and to champion the acceleration of ASEAN integration and the region s links to the rest of the world 36

37 5 th in terms of Assets Assets (Rp trillion) Top 10 banks control 61.5% of industry s Asset Loans (Rp trillion) Top 10 banks control 63.5% of industry s loans BRI Mandiri BCA BNI CIMBN BTN Panin Maybank Permata Danamon BRI Mandiri BCA BNI BTN CIMBN Panin Maybank Danamon Permata Market Share # 14.3% 13.2% 10.0% 8.3% 3.4% 3.2% 2.7% 2.2% 2.2% 2.1% 14.9% 13.3% 9.7% 8.5% 3.9% 3.9% 2.7% 2.4% 2.1% 2.1% Customer Deposits (Rp trillion) Top 10 banks control 63.4% of industry s deposits Network* (Mar-17) 10, ,619 1,983 1,213 1, Market Share # BRI Mandiri BCA BNI CIMBN BTN Panin Maybank Permata Danamon 14.7% 13.1% 11.0% 8.4% 3.6% 3.2% 2.7% 2.3% 2.3% 2.0% # Industry as of May-17 BRI Mandiri BNI BCA Danamon BTN Permata CIMBN Panin Maybank Source: Published Financial Statement by OJK as of May -17; Bank only * Mandiri exclude outlet Mikro; 37

38 Network & Distribution Channel Jun-16 Mar-17 Jun-17 QoQ YoY Branch & Network Branches* Payment & Cash Point Digital Lounge Mikro Laju Mobile Cash Total Network Electronic Channels ATM 3,514 3,812 3, CDM MFD** Employees 13,288 13,019 12, * Branches exclude Mikro Laju, Payment & Cash Point; include SME centers ** MFD (previously was SST) stands for Multi Function Device 38

39 Share Price and Ratings Share Price & Trading Volume Rating Agencies Rating / Outlook Moody s 21 Feb 2017 Outlook Bank Deposits Baseline Credit Assessment Adj. Baseline Credit Assessment Issuer Rating Positive Baa3/P-3 ba2 baa3 Baa3 Fitch 29 Mar 2017 Foreign Currency Long Term Foreign Currency IDR Short Term Foreign Currency IDR Support Rating Viability Rating BBB / Stable F3 2 bb BNGA Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Fitch 29 Mar 2017 National Ratings National Long Term National Short Term Rupiah Subordinated Bonds Rupiah Senior Bond Program Rupiah Senior Bond Prg. 1 tranche 1 & 2 AAA(idn) / Stable F1+(idn) AA(idn) AAA(idn) AAA(idn) Price (Rp) ,040 1,170 PBV (x) PER Pefindo 23 Aug 2016 Corporate Rating Senior Bond Rating Shelf Registration Bond Rating idaaa idaaa idaaa 39

40 Notable Awards in 2Q17 Indonesia Best Mutual Fund Award (IBMFA) 201 Indonesia Digital Innovation Award 2017, Category: Bank BUKU 4 Banking Service Excellent Award : 1 st Best SMS Banking 3 rd Best Digital Lounge 2 rd Best Account opening services through web/ application The Leaders Achievement Award : The Young Promising Banker 2017 Corporate Image Award 2017 The most expanding financing UUS asset > 1,5 T 40

41 Corporate Activities in 2Q 2017 Annual General Shareholder Meeting (AGM) and Extraordinary General Shareholder Meeting (AGMS) was conducted to obtained the approval on Company s Consolidation Financial Statement from the year ended on 31 Dec 2016 and on repurchasing company s share (share buyback) at a maximum of 2% of the Paid up Capital; Press Conference BUKU 4 was announced that CIMB Niaga is entering the BUKU 4 category. The event was held on April 25 th 2017 at Financial Hall, Graha CIMB Niaga 2 nd Floor, Jakarta Indobuildtech Expo Jakarta 2017 was a sponsored event by CIMB Niaga as official bank partner. CIMB Niaga has opportunities to increase potential acquisition both on business banking, consumer banking, and optimize cross selling of relevant products. CIMB Niaga got privilege to have one on one meeting with all the tenant participants so CIMB Niaga can approach new customers and engage with association and business organization. The event was held on May 2017 at ICE, BSD Safari Ramadhan 1438 H was aimed to enhance communication and relationship between Senior Management and whole employees of CIMB Niaga by having breakfasting in the holy month, Ramadhan. In that event CIMB Niaga gave donation to the orphanage or foundation through Dana Kebajikan CIMB Niaga Syariah and CSR Program. Safari Ramadhan 1438 H was being held on 8-15 June 2017 in several location such as Jakarta (at Graha CIMB Niaga & Bintaro), Bandung, Surabaya, Balikpapan, Medan, Solo, Makassar & Lampung Signing Ceremony Cooperation Agreement with General Directorate of Population and Civil Registration was aimed to support and optimize CIMB Niaga s digital financial service through utilization of civil registration data (ID Card). The event was held on June 22 nd 2017 at Financial Club, Graha CIMB Niaga 28 th Floor, Jakarta 41

42 THANK YOU PT Bank CIMB Niaga Tbk Investor Relations Menara Sentraya 31 st Floor Jl. Iskandarsyah Raya I A Jakarta Tel. : (62-21) Fax. : (62-21) investor.relations@cimbniaga.co.id