Analyst Presentation Full Year 2017 Results (Audited) Jakarta, 26 February 2018

Transcription

1 Analyst Presentation Full Year 2017 Results (Audited) Jakarta, 26 February 2018

2 Key Highlights FY2017 PBT improved 61.4% YoY to Rp 4,155 billion from revenue growth, managed cost controls and lower provisions Operating income grew 5.6% YoY from NII growth and 18.8% YoY improvement in NOII Loans growth of 2.8% YoY contributed by Corporate (+7.7%), SME (+10.7%) and Mortgages (+12%) CIR improved to 47.74% from 49.40% previously CASA Ratio stood at 52.55% with CASA growth 8.4% YoY FY 2017 credit charges improved to 2.26% compared to 2.73% in the previous year Capital Adequacy Ratio (CAR) strengthened by 64 bps to 18.60% 2

3 CIMB Niaga: FY 2017 Results Financial Results

4 Income Statement - Consolidated (Rp bil) 3Q17 4Q17 QoQ FY16* FY17 YoY Interest Income 5,120 5,102 (0.4%) 21,325 20,403 (4.3%) Interest Expense (2,080) (2,068) (0.6%) (9,231) (8,000) (13.3%) Net Interest Income 3,040 3,034 (0.2%) 12,094 12, % Non Interest Income 913 1, % 2,822 3, % Operating Income 3,953 4, % 14,916 15, % Operating Expenses (1,837) (1,932) 5.2% (7,368) (7,521) 2.1% Pre Provision Operating Profit 2,116 2, % 7,548 8, % Provision Expenses (1,029) (923) (10.3%) (4,973) (4,080) (18.0%) PBT 1,087 1, % 2,575 4, % Net Profit (4.4%) 1,875 2, % EPS (Rp, full amount) (4.4%) % PBT (Actual) 1,087 1, % 2,851 4, % Net Profit (Actual) (4.4%) 2,082 2, % *BAU excludes one-off fee income Rp 276 bio 4

5 Financial Position - Consolidated (Rp tril) Dec-16 Sep-17 Dec-17 QoQ YoY Cash & Short Term Funds % 42.6% Govt Bonds & Marketable Securities % 39.5% Loans % 2.8% Loan Provision (8.13) (8.00) (7.32) (8.5%) (10.0%) Fixed & Other Assets % (8.2%) Total Assets % 10.2% Current Account % 10.5% Saving Account (1.1%) 6.4% Time Deposit & Structured Deposit % 1.2% Total Customer Deposits % 4.8% Other Liabilities % 49.5% Total Liabilities % 10.6% Equity % 8.0% 5

6 Key Ratios (%) 3Q17 4Q17 QoQ FY16* FY17 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 *BAU excludes one-off fee income Rp 276 bio 6

7 Quarterly Earnings Trend (Rp bil) Operating Income PBT Net Profit ROE (shareholders' fund) 3,790 3,812 3,923 3,953 4, % 7.40% 8.39% 9.05% 8.47% , , Q16 BAU* 1Q17 2Q17 3Q17 4Q17 * BAU excludes one-off fee income Rp 276 bio 7

8 NIM easing Net Interest Margin (%, YTD Annualized) Net Interest Income Breakdown (incl. FTP) 5.64% 5.71% 5.87% 5.74% 5.60% Treasury 19% Consumer 40% Corporate 16% Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Quarterly Annualized NIM 4Q16 1Q17 2Q17 3Q17 4Q % 5.71% 6.05% 5.50% 5.20% MSME 16% Net Interest Income FY16: Rp 12,094 billion FY17: Rp 12,403 billion Commercial 9% 8

9 Non Interest Income Non Interest Income Breakdown (Rp bil) FY16* FY17 YoY 2, , Recovery Arranger & Syndication Fees Trans. Banking & Trade Fin Forex & Fixed Income Derivatives Fees & Commissions % (13.2%) (1.4%) % 1,753 2, % 673 Bancassurance % Funding & Admin Fee (6.5%) Remittance (0.9%) 1,753 2,020 Card Related (8.5%) Other Fees & Commissions (10.9%) Total 2,822 3, % NoII Quarterly FY16* FY ,034 * BAU excludes one-off fee income Rp 276 bio 4Q16* 1Q17 2Q17 3Q17 4Q17 9

10 Operating Expenses & Cost to Income Ratio YTD CIR (%) 49.40% 49.13% 48.51% 47.82% 47.74% YTD Cost to Income Ratio Dec-16* Mar-17 Jun-17 Sep-17 Dec-17 Rp bil 3Q17 4Q17 QoQ FY16 FY17 YoY Advertising & Promotion % (7.0%) General & Admin % 3,623 3,512 (3.1%) Personnel % 3,472 3, % Total 1,837 1, % 7,368 7, % (%) 3Q17 4Q17 QoQ FY16* FY17 YoY Cost to Income (1.66) Cost to Income (Actual) (0.76) * BAU excludes one-off fee income Rp 276 bio 10

11 Loans Growth Segment (Rp tril) Dec 16 Sep 17 Dec 17 QoQ YoY Consumer Banking (26%) (1.9%) (6.7%) Mortgages % 12.0% Auto Loans (14.0%) (41.1%) Credit Cards % (1.1%) Personal, Multipurpose & Others (1) (2.5%) (4.0%) MSME Banking (19%) % 4.3% Small Medium Enterprise % 10.7% Micro Linkage & Others (1.2%) (6.5%) Micro Finance N/A N/A Commercial Banking (17%) % 6.9% Corporate Banking (38%) % 7.7% Total (100%) % 2.8% Industry 4,377 4,544 4,605 (2) 1.3% (3) 5.2% (4) (1) Others include Staff Loan & Pension Loan (2) As of Nov-17 (3) Growth from Sep-17 to Nov-17 (4) Growth from Dec-16 to Nov-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 5.24% 5.07% 5.01% 5.24% 5.10% % % % % % 3.89% 3.91% 3.89% 3.95% 3.75% 2.16% 2.11% 2.03% 2.02% 2.16% 86.08% 89.46% 83.58% 85.45% 77.52% Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Loans by Collectability (% of Total Loan) Special Mention 6.60% NPL 3.89% Special Mention 6.01% NPL 3.95% Special Mention 4.72% NPL 3.75% Dec-16 Current 89.51% Sep-17 Current 90.04% Dec-17 Current 91.53% 12

13 Asset Quality by Business Segment Gross NPL (%) 3.1% 3.1% 2.6% 2.8% 2.5% Corporate 7.6% 7.0% 7.8% 8.0% 8.2% Commercial 3.6% 3.7% 3.6% 3.5% 3.5% MSME 2.7% 3.0% 3.0% 3.0% 2.5% Consumer Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 13

14 CASA grew 8.4% YoY Rp tril Dec-16 Sep-17 Dec-17 QoQ YoY CASA (0.3%) 8.4% Current Account % 10.5% Saving Account (1.1%) 6.4% Time Deposits & Structured Deposits % 1.2% Total % 4.8% CASA Industry 2,676 2,774 2, % 5.9% Current Account 1,124 1,199 1, % 8.6% Savings 1,552 1,575 1, % 3.9% Time Deposits Industry 2,161 2,369 2,365 (0.1%) 9.5% Industry 4,837 5,143 5,199 (1) 1.1% (2) 7.5% (3) (1) As of Nov-17 (3) Growth from Dec-16 to Nov-17 (2) Growth from Sep-17 to Nov-17 Industry source: Indonesia Banking Statistics 14

15 Improved Capital Base Total Equity (Rp tril) CAR (%) Consolidated Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Tier 1 Tier 2 Capital Adequacy Ratio (%) Dec-16 Sep-17 Dec-17 CAR with Credit Risk Market Risk (0.15) (0.27) (0.25) Operational Risk (2.67) (2.97) (2.80) Total CAR

16 CIMB Niaga: FY 2017 Results Consumer Banking

17 Consumer Loans by Products Total Loans (Rp tril) Growth (Composition) QoQ YoY Total (1.9%) (6.7%) Personal, Pension Loan, Multipurpose & Others (10%) Credit Cards (17%) (2.5%) (4.0%) 1.0% (1.1%) Auto Loans (18%) Mortgage (55%) (14.0%) (41.1%) 1.9% 12.0% Dec-16 Sep-17 Dec-17 17

18 Mortgages Total Loans (Rp tril) +12.0% YoY % QoQ Dec-16 Sep-17 Dec-17 Market Share NPL Ratio 6.5% 6.7% 6.6% 2.5% 2.7% 2.5% Dec-16 Sep-17 Dec-17 Market Share Mortgage Lender Dec-17 BTN 37.3% BCA 20.0%* BNI 9.0% Mandiri 8.1% CIMB Niaga 6.6% * As of Sep-17 Industry Source: Indonesia Banking Statistics 18

19 Auto Loans Realignment Total Loans (Rp tril) 3.2% 3.0% 1.3% Growth QoQ YoY Total (14.0%) (41.1%) Indirect Auto Loans (29.2%) (30.3%) Direct Loans CNAF (16.3%) (51.2%) (12.8%) (41.0%) Dec-16 Sep-17 Dec-17 NPL Ratio 19

20 Unsecured Business Number of Credit Cards Outstanding Balance ( 000) #3 (Rp tril) 13.0% 14.8% 14.1% 2.7% 3.6% 3.3% Market share* +7.8% YoY 2, % QoQ 2,495 2, % YoY -0.3% QoQ Dec-16 Sep-17 Dec-17 Dec-16 Sep-17 Dec-17 Personal, Pension Loan, Multipurpose & Others Credit Card NPL - unsecured business *Market share based on card issued (source: Bank Indonesia) 20

21 CIMB Niaga: FY 2017 Results MSME Banking

22 MSME Loans Total Loans (Rp tril) Dec-16 Sep-17 Dec-17 Growth QoQ YoY Total 0.9% 4.3% Micro Finance N/A N/A Micro Linkage & others Small Medium (1.2%) (6.5%) 1.5% 10.7% 22

23 CIMB Niaga: FY 2017 Results Commercial Banking

24 Commercial Loans Total Loans (Composition) (Rp tril) (61%) (63%) (65%) (39%) (37%) (35%) Dec-16 Sep-17 Dec-17 Growth QoQ YoY Total 3.9% 6.9% Working Capital Investment 6.6% 14.6% (0.7%) (5.0%) 24

25 CIMB Niaga: FY 2017 Results Corporate Banking

26 Corporate Portfolio Total Loans (Composition) (Rp tril) Growth QoQ YoY Total 9.1% 7.7% Working Capital Investment 18.2% 23.3% 0.3% (5.8%) (46%) (49%) (53%) (54%) (51%) (47%) Dec-16 Sep-17 Dec-17 26

27 CIMB Niaga: FY 2017 Results Syariah Banking

28 Syariah Banking Total Financing (Rp tril) +63.5% YoY +12.5% QoQ Total Deposits (Rp tril) +87.3% YoY +18.2% QoQ Dec-16 Sep-17 Dec-17 Dec-16 Sep-17 Dec-17 28

29 CIMB Niaga: FY 2017 Results Final Remarks

30 Notable Awards in FY st winner Annual Report Award 2016 (ARA) for category Private Financial - Listed Best Credit Card Product of the Year CIMB Niaga Platinum Card The Leaders Achievement Award : The Young Promising Banker 2017 Social Business Innovation Award Indonesia Most Innovative Business Award 2017 Indonesia Digital Innovation Award 2017, Category: Bank BUKU 4 Indonesia Banking Awards 2017 : The Best Bank in Digital Services The Best Bank in Retail Banking Services The Best Sharia Business Unit. Sharia Finance Awards 2017, Very Good category for Sharia Business Unit Banking Service Excellent Award : 1 st Best SMS Banking 3 rd Best Digital Lounge 2 nd Best Overall opening account service through web/ application The best overall IICD CG Award

31 IFRS 9 Indonesia will adopt IFRS 9 in 1 Jan 2020 CIMB Niaga will align with CIMB Group in terms of accounting impact for 2018 The alignment on IFRS 9 adoption offer further strengthening of bank underwriting standard; proactive credit risk methodology; efficiently utilize the bank s capital resources 31

32 Final Remarks Improved FY 2017 financial performance despite the soft economic environment Continue to optimize CASA with our Consumer and SME digitalization Focus on improving asset and credit quality, observing better traction on recovery income in 4Q17 Maintain cost management discipline Sharia business continues to gain positive momentum Realign the auto business model in 2017 which will continue in 2018 Continue to enhance digital initiatives for 2018 to further stimulate Consumer and SME business Better position CIMB Niaga for 2018, with stable commodity prices and incremental GDP growth. However, 2018 will be a year of political election with regional elections and the lead up to presidential campaigning in 2H18 32

33 THANK YOU 33

34 CIMB Niaga: FY 2017 Results Appendices

35 Corporate Structure 31 December 2017 Khazanah Nasional EPF PNB KWAP Others 27.27% 14.40% 9.70% 6.15% 42.48% CIMB Group Holdings Berhad 100.0% Public CIMB Group Sdn Bhd 7.5% 92.5%^ 99.9% ^ Includes PT Commerce Kapital 1.02% 35

36 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* *Will be effective after obtaining approval from Financial Services Authority 36

37 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 37

38 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 38

39 5 th in terms of Assets Assets (Rp trillion) Top 10 banks control 64.3% of industry s Asset 1, Loans (Rp trillion) Top 10 banks control 65.9% of industry s loans Market Share BRI Mandiri BCA BNI CIMBN BTN Panin Maybank OCBC NISP Danamon 15.0% 13.6% 10.2% 9.2% 3.7% 3.6% 2.7% 2.2% 2.1% 2.1% BRI Mandiri BCA BNI BTN CIMBN Panin Maybank OCBC NISP Danamon 15.4% 14.0% 10.2% 9.1% 4.3% 4.0% 2.8% 2.4% 2.3% 2.1% Customer Deposits (Rp trillion) Top 10 banks control 66.7% of industry s deposits Network (Sep-17) 10, ,617 2,104 1,225 1, BRI Mandiri BCA BNI BTN CIMBN Panin Maybank OCBC NISP Permata Market 15.5% 14.0% 11.2% 9.4% 3.7% 3.6% 2.7% 2.3% 2.2% 2.1% Share BRI Mandiri BNI BCA Danamon BTN Panin* CIMBN Maybank Permata Source: Internal research based on published Financial Statement *Panin as of Jun-17 39

40 Network & Distribution Channel Dec-16 Sep-17 Dec-17 QoQ YoY Branch & Network Branches* (14) (45) Payment & Cash Point (1) (8) Digital Lounge Mikro Laju (39) Mobile Cash Total Network (15) (92) Electronic Channels ATM 3,865 4,033 4, CDM** MFD*** (2) (15) Employees 13,185 12,981 12,782 (199) (403) * Branches exclude Mikro Laju, Payment & Cash Point; include SME centers ** Inclusive CRM *** MFD (previously was SST) stands for Multi Function Device 40

41 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 Dec-16 Mar-17 Jun-17 Sep-17 Dec-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) 845 1,040 1,170 1,295 1,350 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 41

42 Corporate Activities in 4Q 2017 The Color Run presented by CIMB Niaga, in accordance with brand promise CIMB Niaga "Forward your healthy life style. CIMB Niaga always supports customers in various aspects of life to move forward to achieve their dream. This event attended by Budi Kaliwono, President Director of Trans Jakarta; Chairman of Disabled Children Counseling Foundation; representative of Governor DKI Jakarta and participated by runners. Held on 1 st October 2017, in Senayan, Jakarta. Trade Expo, Trade Expo Indonesia (TEI) 2017 was held in order to increase the value of exports and also open new export markets in Indonesia. Attended by Joko Widodo, President RI ; Enggartiasto Lukito, Minister of Trade RI and for 5 days event was attended by more than 2,000 expectators. This event was held on 11 th 15 th October 2017, at ICE BSD Tangerang City. Re-launching The New Go Mobile, By new tagline No More No, Just Go Mobile, The New Go Mobile expectedly ease for all customers by having several new features, such as finger print access, promo code, bonus, etc presented by CIMB Niaga. This event was held on 29 th November 2017 at Ritz Carlton Pacific Place. CIMB Niaga Indonesia Open Aquatic Championship 2017, The championship conducts as part of Road to ASEAN Games 2018, participated by swimmers from several countries and all over Indonesia provinces. The championship consists 5 Aquatic Sports: Diving, Synchronized Swimming, Swimming, Water Polo, and Master Swimming. Opening ceremony was on 5 th December 2017 in Aquatic Stadium GBK, by Jusuf Kalla, Vice President of Republic Indonesia; Minister of Youth and Sport Affairs; Minister of Public of Works and Housing; State Secretariat. 42

43 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