Analyst Presentation First Half 2018 Results (Unaudited) Jakarta, 14 August 2018

Transcription

1 Analyst Presentation First Half 2018 Results (Unaudited) Jakarta, 14 August 2018

2 Key Highlights 1H18 PBT increased 30.5% YoY to Rp 2,421 billion, underpinned by 32.6% increase in non interest income and 27.1% reduction in provisions Operating income of Rp 7,852 billion increased by 1.5% YoY from higher fees, recoveries and forex income Loans grew 3.0% YoY from Corporate (+8.8%), SME (+6.2%), Commercial (+5.7%) and Mortgages (+8.9%) ROE grew by 147 bps to 9.37% in 1H18 CASA ratio continues to increase from 54.32% to 56.12% in Jun 18 Cost of credit improves a further 68 bps to 1.67% compared to previous year Gross NPL reduced by 50 bps to 3.39%, with gross impairment ratio improving 65 bps to 4.36%, compared to previous year 2

3 CIMB Niaga: 1H 2018 Results Financial Results

4 Income Statement - Consolidated (Rp bil) 1Q18 2Q18 QoQ 1H17 1H18 YoY Interest Income 5,009 4,946 (1.3%) 10,181 9,955 (2.2%) Interest Expense (1,976) (1,991) 0.8% (3,852) (3,967) 3.0% Net Interest Income 3,033 2,955 (2.6%) 6,329 5,988 (5.4%) Non Interest Income (12.1%) 1,406 1, % Operating Income 4,025 3,827 (4.9%) 7,735 7, % Operating Expenses (1,955) (1,924) (1.6%) (3,752) (3,879) 3.4% Pre Provision Operating Profit 2,070 1,903 (8.1%) 3,983 3,973 (0.3%) Provision Expenses (850) (702) (17.4%) (2,128) (1,552) (27.1%) PBT 1,220 1,201 (1.6%) 1,855 2, % Net Profit % 1,380 1, % EPS (Rp, full amount) % % 4

5 Financial Position - Consolidated (Rp tril) Jun-17 Mar-18 Jun-18 QoQ YoY Cash & Short Term Funds (5.8%) (3.5%) Govt Bonds & Marketable Securities (6.6%) 46.1% Loans % 3.0% Loan Provision (7.54) (6.53) (6.61) 1.2% (12.3%) Fixed & Other Assets % 2.3% Total Assets % 7.6% Current Account (0.8%) 16.2% Saving Account % 9.7% Time Deposit & Structured Deposit (3.1%) 4.8% Total Customer Deposits (0.7%) 9.1% Other Liabilities % 1.4% Total Liabilities % 7.9% Equity (0.2%) 5.3% 5

6 Key Ratios (%) 1Q18 2Q18 QoQ 1H17 1H18 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) 3,923 3,953 4,068 4,025 3, % 9.05% 8.47% 9.40% 9.43% 1,213 1, ,087 1, Q17 3Q17 4Q17 1Q18 2Q18 7

8 NIM stabilizing Net Interest Margin (%, YTD Annualized) Net Interest Income Breakdown (incl. FTP) 5.87% 5.74% 5.60% 5.10% 5.09% Corporate 18% Treasury 18% Consumer 41% Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 MSME 15% Commercial 8% Quarterly Annualized NIM 2Q17 3Q17 4Q17 1Q18 2Q % 5.50% 5.20% 5.10% 5.03% Net Interest Income 1H17: Rp 6,329 billion 1H18: Rp 5,988 billion 8

9 Non Interest Income Non Interest Income Breakdown (Rp bil) 1H17 1H18 YoY 1,406 1,864 Recovery Arranger & Syndication Fees % % Trans. Banking & Trade Fin % Forex & Fixed Income Derivatives % Fees & Commissions % Bancassurance % Funding & Admin Fee (4.4%) Remittance (7.5%) Card Related % Other Fees & Commissions % Total 1,406 1, % NoII Quarterly 1H17 1H , Q17 3Q17 4Q17 1Q18 2Q18 9

10 Operating Expenses & Cost to Income Ratio YTD CIR (%) 48.51% 47.82% 47.74% 48.58% 49.40% YTD Cost to Income Ratio Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Rp bil 1Q18 2Q18 QoQ 1H17 1H18 YoY Personnel (4.0%) 1,874 1,854 (1.1%) Other Expenses 1,009 1, % 1,878 2, % Total 1,955 1,924 (1.6%) 3,752 3, % (%) 1Q18 2Q18 QoQ 1H17 1H18 YoY Cost to Income

11 Loans Growth Segment (Rp tril) Jun 17 Mar 18 Jun 18 QoQ YoY Consumer Banking (26%) (0.4%) (5.0%) Mortgages % 8.9% Auto Loans (7.6%) (37.3%) Credit Cards % 0.1% Personal, Multipurpose & Others (1) (3.7%) (9.0%) MSME Banking (19%) % 1.7% Small Medium Enterprise % 6.2% Micro Linkage & Others % (6.9%) Micro Finance (100.0%) Commercial Banking (17%) % 5.7% Corporate Banking (38%) % 8.8% Total (100%) % 3.0% Industry 4,491 4,743 4,879 (2) 2.9% (3) 8.6% (4) (1) Others include Staff Loan & Pension Loan (2) As of May-18 (3) Growth from Mar-18 to May-18 (4) Growth from Jun-17 to May-18 Industry source: Indonesia Banking Statistics 11

12 Asset Quality Management Asset Quality Gross Impairment Ratio Gross NPL Net NPL 5.01% 5.24% 5.10% 4.61% 4.36% Coverage Ratio Loan Loss Coverage Impaired LLC % % % % % 3.89% 3.95% 3.75% 3.51% 3.39% 2.03% 2.02% 2.16% 1.99% 1.87% 83.58% 85.45% 77.52% 79.11% 81.65% Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Loans by Collectability (% of Total Loan) Special Mention 7.17% NPL 3.89% Special Mention 5.59% NPL 3.51% Special Mention 6.14% NPL 3.39% Jun-17 Current 88.94% Mar-18 Current 90.90% Jun-18 Current 90.47% 12

13 Asset Quality by Business Segment Gross NPL (%) 2.6% 2.8% 2.5% 1.9% 1.1% Corporate 7.8% 8.0% 8.2% 8.8% 9.3% Commercial 3.6% 3.5% 3.5% 3.0% 3.2% MSME 3.0% 3.0% 2.5% 2.5% 2.6% Consumer Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 13

14 CASA grew 12.8% YoY Rp tril Jun-17 Mar-18 Jun-18 QoQ YoY CASA % 12.8% Current Account (0.8%) 16.2% Saving Account % 9.7% Time Deposits & Structured Deposits (3.1%) 4.8% Total (0.7%) 9.1% 14

15 Capital Ratios Total Equity (Rp tril) CAR (%) Consolidated Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Tier 1 Tier 2 Capital Adequacy Ratio (%) Jun-17 Mar-18 Jun-18 CAR with Credit Risk Market Risk (0.19) (0.27) (0.20) Operational Risk (2.84) (3.09) (2.90) Total CAR

16 CIMB Niaga: 1H 2018 Results Consumer Banking

17 Consumer Loans by Products Total Loans (Rp tril) Growth (Composition) QoQ YoY Total (0.4%) (5.0%) Personal, Pension Loan, Multipurpose & Others (10%) Credit Cards (17%) (3.7%) (9.0%) 0.7% 0.1% Auto Loans (15%) (7.6%) (37.3%) Jun-17 Mar-18 Jun-18 Mortgage (58%) 1.9% 8.9% 17

18 Mortgages Total Loans (Rp tril) % YoY % QoQ Jun-17 Mar-18 Jun-18 Market Share NPL Ratio * As of May % 6.5% 6.5% 2.4% 2.5% 2.8% Jun-17 Mar-18 Jun-18 * Market Share Mortgage Lender Jun-18 BTN 38.0% BCA 17.3% BNI 9.0% Mandiri 8.0% CIMB Niaga 6.5% Industry Source: Indonesia Banking Statistics 18

19 Auto Loans Realignment Total Loans (Rp tril) 3.8% % 1.2% Growth QoQ YoY Total (7.6%) (37.3%) Indirect Auto Loans 26.9% 13.3% Direct Loans (2.6%) (36.2%) CNAF (11.2%) (41.0%) Jun-17 Mar-18 Jun-18 NPL Ratio 19

20 Unsecured Business Number of Credit Cards Outstanding Balance ( 000) (Rp tril) 14.1% 14.6% 14.9% 3.6% 3.2% 3.1% Market share* +8.4% YoY -3.3% YoY +0.9% QoQ 2,546 2, % QoQ , Jun-17 Mar-18 Jun-18 Jun-17 Mar-18 Jun-18 Personal, Pension Loan, Multipurpose & Others Credit Card NPL - unsecured business *Market share based on card issued (source: Bank Indonesia) 20

21 CIMB Niaga: 1H 2018 Results MSME Banking

22 MSME Loans Total Loans (Rp tril) Jun-17 Mar-18 Jun-18 Growth QoQ YoY Total 2.1% 1.7% Micro Finance Micro Linkage & others Small Medium N/A (100%) 2.1% (6.9%) 2.0% 6.2% 22

23 CIMB Niaga: 1H 2018 Results Commercial Banking

24 Commercial Loans Total Loans (Composition) (Rp tril) (63%) (65%) (67%) (37%) (35%) (33%) Jun-17 Mar-18 Jun-18 Growth QoQ YoY Total 4.3% 5.7% Working Capital Investment 7.9% 12.7% (2.1%) (6.2%) 24

25 CIMB Niaga: 1H 2018 Results Corporate Banking

26 Corporate Portfolio Total Loans (Composition) (Rp tril) Growth QoQ YoY Total 7.3% 8.8% Working Capital Investment 16.6% 17.1% (1.4%) 0.9% (49%) (48%) (53%) (51%) (52%) (47%) Jun-17 Mar-18 Jun-18 26

27 CIMB Niaga: 1H 2018 Results Syariah Banking

28 1.0 0% 0.8 0% 0.6 0% 0.4 0% 0.2 0% 0.0 0% Syariah Banking Total Financing Profit Before Tax (Rp tril) 0.97% 0.94% 0.98% +56.4% YoY +22.1% QoQ (Rp bio) +13.0% QoQ % YoY Jun-17 Mar-18 Jun-18 Financing NPF 1Q18 2Q18 1H17 1H18 Total Deposits (Rp tril) % YoY +12.4% QoQ Jun-17 Mar-18 Jun-18 28

29 CIMB Niaga: 1H 2018 Results Final Remarks

30 Final Remarks First half performance within expectations in the midst of competitive market BI shifts its policy focus from growth to stability, and with up-coming Presidential election campaigning in 2H18 Loans growth may pickup in 2H18 from infrastructure pipelines More intensive Commercial Banking recovery efforts expected in upcoming quarters Optimize CASA with digital banking offering through Consumer and SME segments Continue to build Syariah momentum while strengthening Syariah business proposition and product offerings 30

31 THANK YOU 31

32 CIMB Niaga: 1H 2018 Results Appendices

33 Share Price and Ratings Share Price & Trading Volume Rating Agencies Rating / Outlook Moody s 3 July 2018 Outlook Bank Deposits Adj. Baseline Credit Assessment Issuer Rating Stable Baa2/P-2 baa2 Baa2 Fitch 13 Aug 2018 Foreign Currency Long Term Foreign Currency IDR Short Term Foreign Currency IDR Support Rating BBB- / Stable F3 2 BNGA Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Fitch 13 Aug 2018 National Ratings National Long Term National Short Term Subordinated Bonds II Shelf Registration Bonds I AA+(idn) / Stable F1+(idn) AA-(idn) AA+(idn) Price (Rp) 1,170 1,295 1,350 1, PBV (x) PER Pefindo 11 Jul 2018 Corporate Rating Shelf Registration Bond Rating idaaa/ Stable idaaa 33

34 Corporate Structure 30 June 2018 Khazanah Nasional EPF PNB KWAP Others 27.37% 14.08% 11.30% 6.82% 40.43% CIMB Group Holdings Berhad 100.0% Public CIMB Group Sdn Bhd 7.5% 92.5%^ 99.9% ^ Includes PT Commerce Kapital 1.02% 34

35 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 Tengku Dato Sri Zafrul Tengku Abdul Aziz Independent Commissioner Independent Commissioner Commissioner Commissioner 35

36 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 Rahardja Alimhamzah Treasury & Capital Market Director Consumer Banking Director Syariah Banking Director Human Resources Director Compliance, Corporate Secretary & Legal Director Business Banking Director 36

37 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 37

38 Network & Distribution Channel Jun-17 Mar-18 Jun-18 QoQ YoY Branch & Network Branches* (14) (50) Payment & Cash Point (4) Digital Lounge Mobile Cash Total Network (13) (47) Electronic Channels ATM 3,869 4,502 4, CDM** (2) 3 MFD*** (1) (10) Employees Bank only 12,915 12,729 12,670 (59) (245) CNAF 1, (40) (141) Total Employees 14,006 13,719 13,620 (99) (386) * Branches exclude Payment & Cash Point; include SME centers ** Include CRM *** MFD (previously was SST) stands for Multi Function Device 38

39 Notable Awards in 1H 2018 Digital Touch Points Customer Engagement Award 2018 Indonesia CSR Award 2018, category Didaktika Unggul Penghargaan Economic Review 2018, kategori Sales & Marketing, Risk Management, Legal Top 100 Enterprises, Best in Financial Industry Bank Sharia Finance Award 2018, Top 5 Customer Chouce Unit Syariah 2018 Credit Card Product of The Year Infobank Banking Service Excellence Awards 2018 ; 1. Peringkat IX Best Overall Performance 2. Peringkat III Kategori Digital Branch 3. Peringkat II Kategori Opening Account Website Application Indonesia s top 100 Most Valuable Brands

40 Corporate Activities in 1H 2018 Outstanding Performance Recognition Award 2017, an appreciation session for top performers sales and beyond across CASA, loan, and fee income. Attended by : Tigor M. Siahaan, CEO CIMB Niaga; Wan Razly Abdullah, Strategy & Finance Director; John Simon, Treasury & Capital Market Director; Lani Darmawan, Consumer Banking Director; Frans R. Alihamzah, Business Banking Director; Hedy Lapian, Human Resources Director; Fransiska Oei, Compliance, Corporate Affairs and Legal Director. This event was held on Thursday, April 12th CNAF Dealers Gathering, this event was held on Friday, April 20 th A gathering between CNAF Management & Big Dealers all over Indonesia since the last gathering which was conducted on Attended by : Tigor M. Siahaan, CEO; Wan Razly Abdullah, Strategy & Finance Director ; Pandji Djajanegara, Sharia Banking Director ; Vera Handajani, Risk Mangement Director ; Frans R. Alihamzah, Business Banking Director ASEAN RISK Conference, CIMB Group participated as main sponsor and official bank partner on ASEAN Risk Conference organized by Asia Risk. This event was held on Monday, May 7 th Attended by : Rionald Silaban, Assistant of Minister for Macro Economy and International Finance, Ministry of Finance; Aziz Durrani, Senior Financial Sector Specialist, Financial Stability and Supervision and Payment & Settlement Systems, THE SEACEN CENTRE; Mr. Nicholas J. Many, Principal Credit Risk Officer, Asian Infrastructure Investment Bank; Tigor M. Siahaan, CEO CIMB Niaga; John Simon, Treasury and Capital Market Director; Mr. Chu Kok Wei, Group Treasury; Dr. Donald Hanna, Group Economist. Indobuildtech 2018, this event was held on Wednesday-Sunday, 2 6 May 2018, Indonesia Convention Exhibition (ICE), BSD. CIMB Niaga sponsored the event as official bank partner and has opportunities to increase potential acquisition both on business banking, consumer banking, and optimize cross selling of relevant products. Attended by : Effi Setiabudi, Direktur Utama PT. Debindo International Trade Exhibitions; Tigor M. Siahaan, CEO CIMB Niaga; Frans R. Alimhamzah, Business Banking Director; Sukarman Omar, Chief of MSME 40

41 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