Analyst Presentation First Half 2017 Results (Unaudited) Jakarta, 31 July 2017
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
CIMB Niaga: 1H 2017 Results Financial Results
Income Statement - Consolidated (Rp bil) 1Q17 2Q17 QoQ 1H16 1H17 YoY Interest Income 5,079 5,102 0.5% 10,616 10,181-4.1% Interest Expense (1,983) (1,869) -5.7% (4,803) (3,852) -19.8% Net Interest Income 3,096 3,233 4.4% 5,813 6,329 8.9% Non Interest Income 716 690-3.6% 1,464 1,406-4.0% Operating Income 3,812 3,923 2.9% 7,277 7,735 6.3% 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 2,044 5.4% 3,608 3,983 10.4% Provision Expenses (1,079) (1,049) -2.8% (2,562) (2,128) -16.9% PBT 860 995 15.7% 1,046 1,855 77.3% Net Profit 640 740 15.6% 736 1,380 87.5% EPS (Rp, full amount) 25.45 29.47 15.8% 29.29 54.92 87.5% 4
Financial Position - Consolidated (Rp tril) Jun-16 Mar-17 Jun-17 QoQ YoY Cash & Short Term Funds 25.19 22.12 24.00 8.5% -4.7% Govt Bonds & Marketable Securities 28.31 27.72 26.65-3.9% -5.9% Loans 175.34 175.98 180.25 2.4% 2.8% Loan Provision (8.27) (7.98) (7.54) -5.5% -8.8% Fixed & Other Assets 18.81 19.02 18.45-3.0% -1.9% Total Assets 239.38 236.86 241.81 2.1% 1.0% Current Account 45.43 50.17 44.88-10.5% -1.2% Saving Account 47.78 47.99 49.83 3.8% 4.3% Time Deposit & Structured Deposit 86.08 77.93 79.66 2.2% -7.5% Total Customer Deposits 179.29 176.09 174.37-1.0% -2.7% Other Liabilities 27.23 25.80 31.72 22.9% 16.5% Total Liabilities 206.52 201.89 206.09 2.1% -0.2% Equity 32.86 34.97 35.72 2.1% 8.7% 5
Key Ratios (%) 1Q17 2Q17 QoQ 1H16 1H17 YoY ROA 1.44 1.68 0.89 1.55 ROE (shareholders fund) 7.40 8.39 4.74 7.90 NIM 5.71 6.05 5.47 5.87 Fee Income / Total Income 18.78 17.59 20.12 18.18 Cost to Income (CIR) 49.13 47.90 50.42 48.51 CASA Ratio 55.74 54.32 51.99 54.32 Loan to Deposit (LDR) 98.50 101.69 96.54 101.69 Gross NPL 3.91 3.89 3.90 3.89 ` Net NPL 2.11 2.03 1.93 2.03 Cost of Credit 2.31 2.38 2.84 2.35 Gross Impairment Ratio 5.07 5.01 4.94 5.01 Loan Loss Coverage 117.58 109.33 120.90 109.33 Impaired LLC 89.46 83.58 95.58 83.58 6
Quarterly Earnings Trend (Rp bil) Operating Income PBT Net Profit ROE (shareholders' fund) 3,724 3,849 3,790 3,812 3,923 5.72% 6.77% 6.81% 7.40% 8.39% 655 760 770 860 467 563 576 640 995 740 2Q16 3Q16 4Q16 BAU* 1Q17 2Q17 * BAU excludes one-off fee income Rp 276 bio 7
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 2Q17 5.62% 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
Non Interest Income Non Interest Income Breakdown (Rp bil) 1H16 1H17 YoY Recovery 87 139 59.8% 1,464 87 70 380 15 1,406 139 66 247 30 Arranger & Syndication Fees 15 30 100.0% Trans. Banking & Trade Fin 70 66-5.7% Forex & Fixed Income Derivatives 380 247-35.0% Fees & Commissions 912 924 1.3% Bancassurance 361 375 3.9% Funding & Admin Fee 172 160-7.0% Remittance 67 53-20.9% 912 924 Card Related 170 181 6.5% Other Fees & Commissions 142 155 9.2% Total 1,464 1,406-4.0% NoII Quarterly 1H16 1H17 748 775 583 716 690 * BAU excludes one-off fee income Rp 276 bio 2Q16 3Q16 4Q16* 1Q17 2Q17 9
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 56 78 39.3% 137 134-2.2% General & Admin. 895 849-5.1% 1,781 1,744-2.1% Personnel 922 952 3.3% 1,751 1,874 7.0% Total 1,873 1,879 0.3% 3,669 3,752 2.3% (%) 1Q17 2Q17 QoQ 1H16 1H17 YoY Cost to Income 49.13 47.90-1.23 50.42 48.51-1.91 * BAU excludes one-off fee income Rp 276 bio 10
Loans Growth Segment (Rp tril) Jun 16 Mar 17 Jun 17 QoQ YoY Consumer Banking (28%) 53.78 51.14 50.43-1.4% -6.2% Mortgages 23.49 24.96 25.69 2.9% 9.4% Auto Loans 18.31 13.14 11.71-10.9% -36.0% Credit Cards 7.18 8.01 8.12 1.4% 13.1% Personal, Multipurpose & Others (1) 4.80 5.03 4.91-2.4% 2.3% MSME Banking (20%) 32.61 34.79 35.21 1.2% 8.0% Small Medium 23.61 26.16 26.46 1.1% 12.1% Micro Linkage & Others 7.90 8.08 8.28 2.5% 4.8% Micro Finance 1.10 0.55 0.47-14.5% -57.3% Commercial Banking (17%) 30.59 29.28 30.32 3.6% -0.9% Corporate Banking (35%) 58.36 60.77 64.29 5.8% 10.2% Total (100%) 175.34 175.98 180.25 2.4% 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
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% 120.90% 117.68% 117.58% 107.00% 109.33% 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
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
Saving Account grew 4.3% YoY Rp tril Jun-16 Mar-17 Jun-17 QoQ YoY CASA 93.21 98.16 94.71-3.5% 1.6% Current Account 45.43 50.17 44.88-10.5% -1.2% Saving Account 47.78 47.99 49.83 3.8% 4.3% Time Deposits & Structured Deposits 86.08 77.93 79.66 2.2% -7.5% Total 179.29 176.09 174.37-1.0% -2.7% CASA Industry 2,491 2,636 2,701 2.5% 8.4% Current Account 1,072 1,146 1,207 5.3% 12.6% Savings 1,419 1,490 1,494 0.3% 5.3% Time Deposits Industry 2,084 2,281 2,311 1.3% 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
Improved Capital Base Total Equity (Rp tril) 32.86 33.55 34.21 34.97 35.72 CAR (%) Consolidated 17.62 18.14 17.96 18.46 18.43 1.58 1.44 1.35 1.66 1.52 15.96 16.56 16.44 17.02 17.08 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 20.51 21.53 21.46 Market Risk (0.20) (0.16) (0.19) Operational Risk (2.69) (2.91) (2.84) Total CAR 17.62 18.46 18.43 15
CIMB Niaga: 1H 2017 Results Consumer Banking
Consumer Loans by Products Total Loans (Rp tril) 53.78 51.14 50.43 Growth (Composition) QoQ YoY Total -1.4% -6.2% 4.80 5.03 4.91 7.18 8.01 8.12 18.31 13.14 11.71 Personal, Pension Loan, Multipurpose & Others (10%) Credit Cards (16%) -2.4% 2.3% 1.4% 13.1% 23.49 24.96 25.69 Jun-16 Mar-17 Jun-17 Auto Loans (23%) Mortgage (51%) -10.9% -36.0% 2.9% 9.4% 17
Mortgages Total Loans (Rp tril) +9.4% YoY +2.9% QoQ 24.96 25.69 23.49 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
Auto Loans Realignment Total Loans (Rp tril) 2.8% 3.4% 3.8% Growth QoQ YoY Total -10.9% -36.0% 18.31 13.14 11.71 1.51 1.19 Indirect Auto Loans Direct Loans 17.2% -50.3% -15.9% -51.3% -12.1% -33.5% 15.61 0.64 0.69 11.81 0.75 0.58 10.38 Jun-16 Mar-17 Jun-17 NPL Ratio 19
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 2,369 11.98-0.1% QoQ 13.04 13.03 2,115 4.80 5.03 4.91 7.18 8.01 8.12 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
CIMB Niaga: 1H 2017 Results MSME Banking
MSME Loans Total Loans (Rp tril) Growth QoQ YoY 32.61 34.79 35.21 Total 1.2% 8.0% 1.10 7.90 0.55 0.47 8.08 8.28 Micro Finance Micro Linkage & others -14.5% -57.3% 2.5% 4.8% Small Medium 1.1% 12.1% 23.61 26.16 26.46 Jun-16 Mar-17 Jun-17 22
CIMB Niaga: 1H 2017 Results Commercial Banking
Commercial Loans Total Loans (Composition) (Rp tril) 30.59 29.28 30.32 Growth QoQ YoY Total 3.6% -0.9% Working Capital 4.7% 2.6% Investment 1.7% -6.2% 18.51 (61%) 18.14 (62%) 18.99 (63%) 12.08 (39%) 11.14 (38%) 11.33 (37%) Jun-16 Mar-17 Jun-17 24
CIMB Niaga: 1H 2017 Results Corporate Banking
Corporate Portfolio Total Loans (Composition) (Rp tril) 58.36 60.77 64.29 Growth QoQ YoY Total 5.8% 10.2% Working Capital 16.9% 16.8% Investment -3.0% 4.5% 26.90 (46%) 26.89 (44%) 31.43 (49%) 31.46 (54%) 33.88 (56%) 32.86 (51%) Jun-16 Mar-17 Jun-17 26
CIMB Niaga: 1H 2017 Results Syariah Banking
Syariah Banking Total Financing (Rp tril) +63.5% YoY Total Deposits (Rp tril) +32.2% YoY 8.31 +23.8% QoQ 13.59 10.98 9.36 9.71 +27.4% QoQ 12.37 Jun-16 Mar-17 Jun-17 Jun-16 Mar-17 Jun-17 28
CIMB Niaga: 1H 2017 Results Final Remarks
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
THANK YOU 31
CIMB Niaga: 1H 2017 Results Appendices
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
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
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
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
5 th in terms of Assets Assets (Rp trillion) Top 10 banks control 61.5% of industry s Asset 987 910 693 571 Loans (Rp trillion) Top 10 banks control 63.5% of industry s loans 658 588 429 375 234 218 189 153 151 147 174 171 121 107 95 95 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 737 656 554 Network* (Mar-17) 10,643 422 179 160 135 118 115 101 2,619 1,983 1,213 1,212 896 667 591 564 427 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
Network & Distribution Channel Jun-16 Mar-17 Jun-17 QoQ YoY Branch & Network Branches* 536 518 505-13 -31 Payment & Cash Point 58 52 49-3 -9 Digital Lounge 21 23 21-2 0 Mikro Laju 114 1 0-1 -114 Mobile Cash 20 20 20 0 0 Total Network 728 591 574-17 -154 Electronic Channels ATM 3,514 3,812 3,869 57 355 CDM 732 768 758-10 26 MFD** 208 187 182-5 -26 Employees 13,288 13,019 12,915-104 -373 * Branches exclude Mikro Laju, Payment & Cash Point; include SME centers ** MFD (previously was SST) stands for Multi Function Device 38
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 1 2012 Rupiah Senior Bond Prg. 1 tranche 1 & 2 AAA(idn) / Stable F1+(idn) AA(idn) AAA(idn) AAA(idn) Price (Rp) 525 830 845 1,040 1,170 PBV (x) 0.40 0.62 0.62 0.75 0.82 PER 13.36 14.27 10.20 10.65 10.79 Pefindo 23 Aug 2016 Corporate Rating Senior Bond Rating Shelf Registration Bond Rating idaaa idaaa idaaa 39
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
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 17-21 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
THANK YOU PT Bank CIMB Niaga Tbk Investor Relations Menara Sentraya 31 st Floor Jl. Iskandarsyah Raya I A Jakarta 12160 Tel. : (62-21) 270 0555 Fax. : (62-21) 250 5205 Email : investor.relations@cimbniaga.co.id www.cimbniaga.com