Analyst Presentation First Quarter 2018 Results (Unaudited) Jakarta, 25 April 2018

Transcription

1 Analyst Presentation First Quarter 2018 Results (Unaudited) Jakarta, 25 April 2018

2 Key Highlights 1Q18 PBT improved 41.9% YoY to Rp 1,220 billion, driven by non interest income and lower provisions Operating income was 5.6% higher YoY at Rp 4,025 billion, primarily due to higher recoveries and forex & fixed income derivatives Improved credit charges of 1.79% compared to 2.31% in the previous year CIR improved to 48.58% compared to 49.13% in 1Q17 Loans grew 1.8% YoY contributed by Corporate (+7.3%), SME (+5.3%), Commercial (+4.9%) and Mortgages (+9.9%) Gross NPL improved 40 bps to 3.51%, with gross impairment ratio decreasing 46 bps to 4.61% Capital Adequacy Ratio (CAR) strengthened by 67 bps to 19.13% Announced 20% Dividend Payout at the AGM for financial year

3 CIMB Niaga: 1Q 2018 Results Financial Results

4 Income Statement - Consolidated (Rp bil) 1Q17 4Q17 1Q18 QoQ YoY Interest Income 5,079 5,102 5,009 (1.8%) (1.4%) Interest Expense (1,983) (2,068) (1,976) (4.4%) (0.4%) Net Interest Income 3,096 3,034 3,033 (0.0%) (2.0%) Non Interest Income 716 1, (4.1%) 38.5% Operating Income 3,812 4,068 4,025 (1.1%) 5.6% Operating Expenses (1,873) (1,932) (1,955) 1.2% 4.4% Pre Provision Operating Profit 1,939 2,136 2,070 (3.1%) 6.8% Provision Expenses (1,079) (923) (850) (7.9%) (21.2%) PBT 860 1,213 1, % 41.9% Net Profit % 37.0% EPS (Rp, full amount) % 37.4% 4

5 Financial Position - Consolidated (Rp tril) Mar-17 Dec-17 Mar-18 QoQ YoY Cash & Short Term Funds (23.9%) 11.1% Govt Bonds & Marketable Securities % 50.3% Loans (3.3%) 1.8% Loan Provision (7.98) (7.32) (6.53) (10.8%) (18.2%) Fixed & Other Assets % (1.7%) Total Assets (3.3%) 8.7% Current Account % 4.7% Saving Account % 10.1% Time Deposit & Structured Deposit (4.1%) 10.5% Total Customer Deposits % 8.8% Other Liabilities (29.3%) 9.7% Total Liabilities (4.2%) 8.9% Equity % 7.8% 5

6 Key Ratios (%) 1Q17 4Q17 1Q18 QoQ 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) 3,812 3,923 3,953 4,068 4, % 8.39% 9.05% 8.47% 9.40% ,213 1, , Q17 2Q17 3Q17 4Q17 1Q18 7

8 NIM easing Net Interest Margin (%, YTD Annualized) Net Interest Income Breakdown (incl. FTP) 5.71% 5.87% 5.74% 5.60% 5.10% Corporate 18% Treasury 16% Consumer 43% Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Quarterly Annualized NIM 1Q17 2Q17 3Q17 4Q17 1Q % 6.05% 5.50% 5.20% 5.10% MSME 15% Net Interest Income 1Q17: Rp 3,096 billion 1Q18: Rp 3,033 billion Commercial 8% 8

9 Non Interest Income Non Interest Income Breakdown (Rp bil) 1Q17 1Q18 YoY Recovery Arranger & Syndication Fees % % Trans. Banking & Trade Fin % Forex & Fixed Income Derivatives % Fees & Commissions % Bancassurance % Funding & Admin Fee (8.2%) Remittance % Card Related % Other Fees & Commissions % Total % NoII Quarterly 1Q17 1Q , Q17 2Q17 3Q17 4Q17 1Q18 9

10 Operating Expenses & Cost to Income Ratio YTD CIR (%) 49.13% 48.51% 47.82% 47.74% 48.58% YTD Cost to Income Ratio Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Rp bil 1Q17 4Q17 1Q18 QoQ YoY Personnel % 2.6% Other Expenses , % 6.1% Total 1,873 1,932 1, % 4.4% (%) 1Q17 4Q17 1Q18 QoQ YoY Cost to Income (0.55) 10

11 Loans Growth Segment (Rp tril) Mar 17 Dec 17 Mar 18 QoQ YoY Consumer Banking (27%) (1.1%) (6.0%) Mortgages % 9.9% Auto Loans (8.9%) (39.6%) Credit Cards (1.0%) 0.7% Personal, Multipurpose & Others (1) (2.7%) (7.8%) MSME Banking (20%) % 0.9% Small Medium Enterprise % 5.3% Micro Linkage & Others (2.2%) (6.6%) Micro Finance (100%) Commercial Banking (17%) (3.8%) 4.9% Corporate Banking (36%) (6.3%) 7.3% Total (100%) (3.3%) 1.8% Industry 4,370 4,738 4,662 (2) (1.6%) (3) 6.7% (4) (1) Others include Staff Loan & Pension Loan (2) As of Feb-18 (3) Growth from Dec-17 to Feb-18 (4) Growth from Mar-17 to Feb-18 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 5.07% 5.01% 5.24% 5.10% 4.61% % % % % % 3.91% 3.89% 3.95% 3.75% 3.51% 89.46% 83.58% 85.45% 77.52% 79.11% 2.11% 2.03% 2.02% 2.16% 1.99% Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Loans by Collectability (% of Total Loan) Special Mention 6.00% NPL 3.91% Special Mention 4.72% NPL 3.75% Special Mention 5.59% NPL 3.51% Mar-17 Current 90.09% Dec-17 Current 91.53% Mar-18 Current 90.90% 12

13 Asset Quality by Business Segment Gross NPL (%) 3.1% 2.6% 2.8% 2.5% 1.9% Corporate 7.0% 7.8% 8.0% 8.2% 8.8% Commercial 3.7% 3.6% 3.5% 3.5% 3.0% MSME 3.0% 3.0% 3.0% 2.5% 2.5% Consumer Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 13

14 CASA grew 7.4% YoY Rp tril Mar-17 Dec-17 Mar-18 QoQ YoY CASA % 7.4% Current Account % 4.7% Saving Account % 10.1% Time Deposits & Structured Deposits (4.1%) 10.5% Total % 8.8% 14

15 Improved Capital Base Total Equity (Rp tril) CAR (%) Consolidated Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Tier 1 Tier 2 Capital Adequacy Ratio (%) Mar-17 Dec-17 Mar-18 CAR with Credit Risk Market Risk (0.16) (0.25) (0.27) Operational Risk (2.91) (2.80) (3.09) Total CAR

16 CIMB Niaga: 1Q 2018 Results Consumer Banking

17 Consumer Loans by Products Total Loans (Rp tril) Growth (Composition) QoQ YoY Total (1.1%) (6.0%) Personal, Pension Loan, Multipurpose & Others (10%) Credit Cards (17%) (2.7%) (7.8%) (1.0%) 0.7% Auto Loans (16%) Mortgage (57%) (8.9%) (39.6%) 1.6% 9.9% Mar-17 Dec-17 Mar-18 17

18 Mortgages Total Loans (Rp tril) +9.9% YoY % QoQ Mar-17 Dec-17 Mar-18 Market Share NPL Ratio * As of Feb % 6.6% 6.6% 2.5% 2.5% 2.5% Mar-17 Dec-17 Mar-18 * Market Share Mortgage Lender Dec-17 BTN 37.3% BCA 17.8% BNI 9.0% Mandiri 8.1% CIMB Niaga 6.6% Industry Source: Indonesia Banking Statistics 18

19 Auto Loans Realignment Total Loans (Rp tril) 3.4% 1.3% 1.2% Growth QoQ YoY Total (8.9%) (39.6%) Indirect Auto Loans 45.7% 4.7% Direct Loans CNAF (7.3%) (44.9%) (12.2%) (41.7%) Mar-17 Dec-17 Mar-18 NPL Ratio 19

20 Unsecured Business Number of Credit Cards Outstanding Balance ( 000) #3 (Rp tril) 13.2% 14.1% 14.6% 3.5% 3.3% 3.2% Market share* +9.4% YoY +4.3% QoQ 2,546 2,440 2, % YoY -1.6% QoQ Mar-17 Dec-17 Mar-18 Mar-17 Dec-17 Mar-18 Personal, Pension Loan, Multipurpose & Others Credit Card NPL - unsecured business *Market share based on card issued as of Mar-18 (source: Bank Indonesia) 20

21 CIMB Niaga: 1Q 2018 Results MSME Banking

22 MSME Loans Total Loans (Rp tril) Mar-17 Dec-17 Mar-18 Growth QoQ YoY Total 0.3% 0.9% Micro Finance Micro Linkage & others Small Medium N/A (100%) (2.2%) (6.6%) 1.0% 5.3% 22

23 CIMB Niaga: 1Q 2018 Results Commercial Banking

24 Commercial Loans Total Loans (Composition) (Rp tril) (62%) (65%) (65%) (38%) (35%) (35%) Mar-17 Dec-17 Mar-18 Growth QoQ YoY Total (3.8%) 4.9% Working Capital Investment (4.3%) 9.4% (2.8%) (2.5%) 24

25 CIMB Niaga: 1Q 2018 Results Corporate Banking

26 Corporate Portfolio Total Loans (Composition) (Rp tril) Growth QoQ YoY Total (6.3%) 7.3% Working Capital Investment (14.5%) 17.4% 2.9% (0.8%) (44%) (53%) (48%) (56%) (47%) (52%) Mar-17 Dec-17 Mar-18 26

27 CIMB Niaga: 1Q 2018 Results Syariah Banking

28 Syariah Banking Total Financing Total Deposits (Rp tril) +58.5% YoY (Rp tril) +80.8% YoY +4.3% QoQ % QoQ Mar-17 Dec-17 Mar-18 Mar-17 Dec-17 Mar-18 28

29 CIMB Niaga: 1Q 2018 Results Final Remarks

30 Final Remarks Expect stable political outlook with the regional elections, leading up to presidential campaign in 2H18 Positive first quarter performance in-line with gradually improving macro-economic conditions Loans growth expected to pickup in 2H18 from infrastructure pipelines Optimize CASA with digital banking offering within Consumer and SME segments Continue to strengthen Sharia business proposition and Sharia-compliant product offerings Auto finance realignment expected to continue until the end of 2018 Maintain focus on cross selling activities to drive fee income Credit charges expected to improve with better asset quality Dividend policy aligned with commitment to maintain CAR at above 17.5% 30

31 THANK YOU 31

32 CIMB Niaga: 1Q 2018 Results Appendices

33 Corporate Structure 31 March 2018 Khazanah Nasional EPF PNB KWAP Others 27.27% 13.21% 10.30% 6.59% 42.63% CIMB Group Holdings Berhad 100.0% Public CIMB Group Sdn Bhd 7.5% 92.5%^ 99.9% ^ 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 Tengku Dato Sri Zafrul Tengku Abdul Aziz 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 Rahardja Alimhamzah Treasury & Capital Market Director Consumer Banking Director Syariah Banking Director Human Resources Director Compliance, Corporate Secretary & Legal Director Business Banking 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 Network & Distribution Channel Mar-17 Dec-17 Mar-18 QoQ YoY Branch & Network Branches* (7) (49) Payment & Cash Point (3) Digital Lounge Mikro Laju (1) Mobile Cash Total Network (2) (51) Electronic Channels ATM 3,812 4,500 4, CDM** (11) (5) MFD*** (1) (14) Employees 13,019 12,782 12,729 (53) (290) * Branches exclude Mikro Laju, Payment & Cash Point; include SME centers ** Inclusive CRM *** MFD (previously was SST) stands for Multi Function Device 37

38 Share Price and Ratings Share Price & Trading Volume Rating Agencies Rating / Outlook Moody s 13 April 2018 Outlook Bank Deposits Baseline Credit Assessment Adj. Baseline Credit Assessment Issuer Rating Stable Baa2/P-2 ba2 baa3 Baa2 Fitch 16 Mar 2018 Foreign Currency Long Term Foreign Currency IDR Short Term Foreign Currency IDR Support Rating Viability Rating BBB / Stable F3 2 bb BNGA Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Fitch 16 Mar 2018 National Ratings National Long Term National Short Term Subordinated Bonds II Shelf Registration Bonds I AAA(idn) / Stable F1+(idn) AA(idn) AAA(idn) Price (Rp) 1,040 1,170 1,295 1,350 1,170 PBV (x) PER Pefindo 31 Jul 2017 Corporate Rating Continuous Bond Rating II/2016 Continuous Bond Rating I/2012 Shelf Registration Bond Rating idaaa/ Stable idaaa idaaa idaaa 38

39 Notable Awards in 1Q 2018 Digital Touch Points Customer Engagement Award 2018 Indonesia CSR Award 2018 Penghargaan Economic Review 2018, kategori Sales & Marketing, Risk Management, Legal Indonesia Prestige Brand Award 2018 Indonesia Netizen Brand Choice Award 2018 Warta Ekonomi Jawara Financial Indonesia 2018 Sustainability Awards 2018, kategori "Commendation for Best Disclosure on CIMB Niaga Peduli" The Most Inspiring CEO Award 2018 The Best Islamic Bank di Indonesia 39

40 Corporate Activities in 1Q 2018 CIMB ASEAN Stock Challenge 2.0, a regional competition of stock trading on 15 th January 2018 at IDX Building, Jakarta to challenge and create young talented traders from 6 ASEAN countries (Indonesia, Malaysia, Singapore, Thailand, Cambodia, and Brunei). Attended by : Tigor M. Siahaan, CEO CIMB Niaga ; Alpino Kianjaya, BEI Trading and Membership Director ; Yusrizal Yoesuf, Regional Manager Malaysia Airlines ; Lim Kim Siah, Head of Equities PT CIMB Securities Indonesia ; Dr. Arham Abdullah, Industry Relations Division Director of Ministry of Higher Education Malaysia ; Paul Treston Taylor, CEO Progresif Cellular Sdn Bhd Brunei COMBA & MSME Townhall, a sharing session for Commercial Banking and MSME teams about the achievement during 2017 and direction about vision, positioning and strategy in capturing market opportunities in Indonesia. This event was held on 29 th January 2018 at M Floor Graha CIMB Niaga Sudirman, Jakarta. Sharia Townhall Umrah Expo, The Expo and signing of cooperation between CIMB Niaga Syariah unit with four umrah travels (PT. Dream Tours & Travel, PT. Sandhora Wahana Wisata, PT. IBS Buana Sejahtera, and PT. Kafilah Magfirah Wisata) based on the collaboration between CIMB Niaga and Hajj & Umrah Travel Association (HIMPUH, ASPHURINDO, and AMPHURI) to provide umrah facilites for CIMB Niaga employees. Attended by : Pandji P. Djajanegara, Syariah Banking Director ; Hedy Lapian, HR Director, this event was held on 22nd February 2018 at M Floor Graha CIMB Niaga Sudirman, Jakarta Signing Partnership with PT Pos Indonesia (Persero), The signing ceremony of agreement on 28th March 2018 at Financial Club, 27th Floor Graha CIMB Niaga Sudirman, Jakarta to enhance the cooperation in Virtual Account Online facility, PT Pos as Channelling CIMB Niaga, Operating Account facility, Sharia s Remittance facility, Pension Loan facility and ATM Gallery or Corporate CDM on prime location. Attended by : Tigor M. Siahaan, CEO CIMB Niaga ; Pandji P. Djajanegara, Syariah Banking Director ; Rahardja Alimhamzah, Business Banking Director ; John Simon, Treasury & Capital Market Director, Direktur Utama PT. POS Indonesia ; Eddi Santosa, Direktur Keuangan PT. POS Indonesia ; Ihwan Sutardiyanta, Direktur Jasa Keuangan PT. POS Indonesia 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