Analyst Presentation Full Year 2016 Results (Audited) Presentation Full Year 2016 Results (Audited)...
Transcript of Analyst Presentation Full Year 2016 Results (Audited) Presentation Full Year 2016 Results (Audited)...
Analyst Presentation Full Year 2016 Results (Audited)
Jakarta
20 February 2017
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Key Highlights
* Excludes MSS cost (Rp 571 bio) in FY15 Excludes one-off fee income (Rp 276 bio) in FY16
Steady operating income growth from improved net interest income and better capital
markets
Gross loans grew by a respectable 1.6% YoY considering the soft environment
Deposits grew steadily with CASA growing strongly at 9.9% YoY, achieving a CASA ratio
of 50.84%
NIM improved 43 bps YoY to 5.64% with improved liability management
Operating expenses remain under control, growing 1.9% YoY*, below inflation
Loan provision 7.2% lower YoY but remains elevated given the economic environment
FY16 BAU PBT* increased 126% YoY to Rp 2,575 billion
Continue strengthening in capital position with CAR rising 168 bps YoY to 17.96%
CIMB Niaga: FY 2016 Results Financial Results
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Income Statement - Consolidated
(Rp bil) 3Q16
4Q16 BAU*
QoQ FY15 BAU^
FY16 BAU*
YoY
Interest Income 5,379 5,330 -0.9% 22,319 21,325 -4.5%
Interest Expense (2,305) (2,123) -7.9% (10,933) (9,231) -15.6%
Net Interest Income 3,074 3,207 4.3% 11,386 12,094 6.2%
Non Interest Income 775 583 -24.8% 2,350 2,822 20.1%
Operating Income 3,849 3,790 -1.5% 13,736 14,916 8.6%
Operating Expenses (1,874) (1,825) -2.6% (7,234) (7,368) 1.9%
GA & Promotion Expenses (1,014) (964) -4.9% (3,816) (3,896) 2.1%
Personnel Expenses (860) (861) 0.1% (3,418) (3,472) 1.6%
Pre Provision Operating Profit 1,975 1,965 -0.5% 6,502 7,548 16.0%
Provision Expenses (1,216) (1,195) -1.7% (5,361) (4,973) -7.2%
PBT (BAU) 760 770 1.3% 1,141 2,575 125.7%
Net Profit (BAU) 563 576 2.3% 856 1,875 119.0%
EPS (Rp, full amount) 22.39 22.92 2.4% 34.07 74.60 119.0%
PBT (Actual) 760 1,046 37.6% 570 2,851 400.2%
Net Profit (Actual) 563 783 39.1% 428 2,082 386.4%
* BAU excludes one-off fee income Rp 276 bio ^ BAU excludes MSS cost Rp 571 bio
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Financial Position - Consolidated
(Rp tril) Dec-15 Sep-16 Dec-16 QoQ YoY
Cash & Short Term Funds 27.09 22.65 22.67 0.1% -16.3%
Govt Bonds & Marketable Securities 25.91 29.20 27.56 -5.6% 6.4%
Loans 177.36 174.08 180.16 3.5% 1.6%
Loan Provision (7.40) (7.74) (8.13) 5.0% 9.9%
Fixed & Other Assets 15.89 18.93 19.31 2.0% 21.5%
Total Assets 238.85 237.12 241.57 1.9% 1.1%
Current Account 40.44 45.82 44.60 -2.7% 10.3%
Saving Account 43.12 48.12 47.21 -1.9% 9.5%
Time Deposit & Structured Deposit 94.97 84.73 88.76 4.8% -6.5%
Total Customer Deposits 178.53 178.67 180.57 1.1% 1.1%
Other Liabilities 31.64 24.90 26.79 7.6% -15.3%
Total Liabilities 210.17 203.57 207.36 1.9% -1.3%
Equity 28.68 33.55 34.21 1.9% 19.3%
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Key Ratios
(%) 3Q16 4Q16 BAU*
QoQ FY15 BAU^
FY16 BAU*
YoY
ROA 1.27 1.30 0.47 1.09
ROE (shareholders’ fund) 6.77 6.81 2.99 5.81
NIM 5.67 5.91 5.21 5.64
Fee Income / Total Income 20.14 15.36 17.11 18.91
Cost to Income (CIR) 48.69 48.14 52.67 49.40
CASA Ratio 52.58 50.84 46.81 50.84
Loan to Deposit (LDR) 96.07 98.38 97.98 98.38
Gross NPL 4.21 3.89 3.74 3.89
Net NPL 2.39 2.16 1.59 2.16
Cost of Credit 2.62 2.63 3.02 2.73
Gross Impairment Ratio 5.20 5.24 5.03 5.24
Loan Loss Coverage 107.00 117.68 111.53 117.68
Impaired LLC 85.47 86.08 82.99 86.08
* BAU excludes one-off fee income Rp 276 bio ^ BAU excludes MSS cost Rp 571 bio
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(Rp bil)
Quarterly Earnings Trend
3,476 3,553 3,724
3,849 3,790
293 390 655 760 770
238 269 467 563 576
3.34% 3.61%
5.72% 6.77% 6.81%
4Q15 BAU^ 1Q16 2Q16 3Q16 4Q16 BAU*
Operating Income PBT Net Profit ROE (shareholders' fund)
* BAU excludes one-off fee income Rp 276 bio ^ BAU excludes MSS cost Rp 100 bio
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NIM continues to widen
Retail 39%
Commercial 9%
MSME 17%
Corporate 15%
Treasury 20%
5.21% 5.35%
5.47% 5.54% 5.64%
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
Net Interest Margin (%, YTD Annualized)
Net Interest Income Breakdown (incl. FTP)
Net Interest Income
FY15: Rp 11,386 billion
FY16: Rp 12,094 billion
Quarterly Annualized NIM
4Q15 1Q16 2Q16 3Q16 4Q16
5.25% 5.35% 5.62% 5.67% 5.91%
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Non Interest Income (Rp bil) FY15 FY16* YoY
195 172 -11.8%
45 76 68.9%
169 148 -12.4%
250 673 169.2%
1,691 1,753 3.7%
Bancassurance 672 570 -15.2%
Funding & Admin Fee 316 338 7.0%
Remittance 130 107 -17.7%
Card Related 324 389 20.1%
Other Fees & Commissions 249 349 40.2%
Total 2,350 2,822 20.1%
NoII – Quarterly
614 716 748 775
583
4Q15 1Q16 2Q16 3Q16 4Q16*
1,691 1,753
250
673 169
148
45
76
195
172
FY15 FY16*
Recovery
Arranger & Syndication Fees
Trans. Banking & Trade Fin
Forex & Fixed Income Derivatives
Fees & Commissions
Non Interest Income Breakdown
2,822 2,350
* BAU excludes one-off fee income Rp 276 bio
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Operating Expenses & Cost to Income Ratio
Rp bil 3Q16 4Q16 QoQ FY15 BAU^
FY16 YoY
Advertising & Promotion 71 65 -8.5% 315 273 -13.3%
General & Admin. 943 899 -4.7% 3,501 3,623 3.5%
Personnel 860 861 0.1% 3,418 3,472 1.6%
Total 1,874 1,825 -2.6% 7,234 7,368 1.9%
Total (Actual) 1,874 1,825 -2.6% 7,805 7,368 -5.6%
(%) 3Q16 4Q16 BAU*
QoQ FY15 BAU^
FY16 BAU*
YoY
Cost to Income 48.69 48.14 -0.55 52.67 49.40 -3.27
Cost to Income (Actual) 48.69 44.88 -3.81 56.82 48.50 -8.32
52.67% 51.27% 50.42% 49.82% 49.40%
Dec-15^ Mar-16 Jun-16 Sep-16 Dec-16*
YTD Cost to IncomeRatio
YTD CIR (%)
* BAU excludes one-off fee income Rp 276 bio ^ BAU excludes MSS cost Rp 571 bio
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Loans Growth
(1) Others include Staff loan Industry source: Indonesia Banking Statistics
Segment (Rp tril) Dec 15 Sep 16 Dec 16 QoQ YoY
Consumer Banking (29%) 51.98 51.01 51.42 0.8% -1.1%
Mortgages 23.27 23.43 23.90 2.0% 2.7%
Auto Loans 18.57 15.53 14.81 -4.6% -20.2%
Credit Cards 6.37 7.83 8.24 5.2% 29.4%
Personal, Multipurpose & Others (1) 3.77 4.22 4.47 5.9% 18.6%
MSME Banking (19%) 34.18 33.04 34.51 4.4% 1.0%
Small Medium 22.84 23.47 24.88 6.0% 8.9%
Micro Linkage & Others 9.06 8.71 8.97 3.0% -1.0%
Micro Finance 2.28 0.86 0.66 -23.3% -71.1%
Commercial Banking (18%) 34.25 32.60 33.22 1.9% -3.0%
Corporate Banking (34%) 56.95 57.43 61.01 6.2% 7.1%
Total (100%) 177.36 174.08 180.16 3.5% 1.6%
Industry 4,058 4,212 4,377 3.9% 7.9%
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Asset Quality Management
111.53% 116.09% 120.90% 107.00%
117.68%
82.99% 91.04% 95.58% 85.47% 86.08%
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
Loan Loss Coverage Impaired LLC
Loans by Collectability (% of Total Loan)
Coverage Ratio
Current 88.10%
Special Mention
8.16%
NPL 3.74%
Dec-15
Current 88.31%
Special Mention
7.48%
NPL 4.21%
Sep-16
Asset Quality
Current 89.51%
Special Mention
6.60%
NPL 3.89%
Dec-16
5.03% 4.97% 4.94% 5.20% 5.24%
3.74% 3.90% 3.90% 4.21% 3.89%
1.59% 1.91% 1.93% 2.39% 2.16%
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
Gross Impairment Ratio Gross NPL Net NPL
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Asset Quality by Business Segment
Gross NPL (%)
4.5% 4.6% 4.2% 4.0% 3.3%
6.0% 6.6% 6.1% 7.4% 6.8%
1.9% 2.0% 2.5% 2.5% 2.7%
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
2.9% 3.2% 3.2% 3.7% 3.7%
Corporate
Commercial
MSME
Consumer
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Steady Savings Growth
Rp tril Dec-15 Sep-16 Dec-16 QoQ YoY
CASA 83.56 93.94 91.81 -2.3% 9.9%
Current Account 40.44 45.82 44.60 -2.7% 10.3%
Saving Account 43.12 48.12 47.21 -1.9% 9.5%
Time Deposits & Structured Deposits
94.97 84.73 88.76 4.8% -6.5%
Total 178.53 178.67 180.57 1.1% 1.1%
Industry 4,413 4,605 4,837 5.0% 9.6%
CASA 2,384 2,499 2,676 7.1% 12.2%
Time Deposits 2,030 2,106 2,161 2.6% 6.5%
Industry source: Indonesia Banking Statistics
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Improved Capital base
Total Equity (Rp tril) CAR (%) – Consolidated
Capital Adequacy Ratio (%) Dec-15 Sep-16 Dec-16
CAR with Credit Risk 18.82 21.13 20.78
Market Risk (0.15) (0.19) (0.15)
Operational Risk (2.39) (2.80) (2.67)
Total CAR 16.28 18.14 17.96
14.20 16.01 15.96 16.56 16.44
2.08
2.00 1.66 1.58 1.52
Dec-15 Mar-16 Jun-16 Sep-16 Dec 16
Tier 1 Tier 2
16.28
17.62 18.14 18.01
28.68
32.45 32.86 33.55 34.21
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
17.96
CIMB Niaga: FY 2016 Results Consumer Banking
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Consumer Loans by Products
Growth (Composition)
QoQ YoY
Total 0.8% -1.1%
5.9% 18.6%
5.2% 29.4%
-4.6% -20.2%
2.0% 2.7%
Total Loans
23.27 23.43 23.90
18.57 15.53 14.81
6.37 7.83 8.24
3.77 4.22 4.47
Dec-15 Sep-16 Dec-16
Personal, Multipurpose& Others (9%)
Credit Cards (16%)
Auto Loans (29%)
Mortgage (46%)
51.98 51.01
(Rp tril)
51.42
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Mortgages
Total Loans
Market Share
Mortgage Lender Sep 16
BTN 33.7%
BCA 17.5%
BNI 10.3%
Mandiri 7.9%
CIMB Niaga 6.6%
2.2% 2.7% 2.5%
Dec-15 Sep-16 Dec-16
23.27 23.43
23.90
Dec-15 Sep-16 Dec-16
(Rp tril)
6.8% 6.6% 6.6%
NPL Ratio
Market Share
+2.7% YoY
* As of Nov-16 Industry Source: Indonesia Banking Statistics
+2.0% QoQ
*
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Auto Loans – Consolidating
(Rp tril)
Growth QoQ YoY
Total -4.6% -20.2%
725.0% -30.5%
-16.8% -47.2%
-7.8% -17.0%
Total Loans
NPL Ratio
16.03 14.44
13.31
1.59
1.01
0.84
0.95
0.08
0.66
1.9% 3.1% 3.2%
Dec-15 Sep-16 Dec-16
Indirect Auto Loans
Direct Loans
18.57 15.53 14.81
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Unsecured business
2,001
2,178 2,263
Dec-15 Sep-16 Dec-16
Number of Credit Cards Outstanding Balance
(thou) (Rp tril)
• Market share based on card issued (source: Bank Indonesia)
+3.9% QoQ
+13.1% YoY
Dec-16
# Bank Card Mkt Share
1 BCA xx%
2 Mandiri xx%
3 CIMBN 13%
6.37 7.83 8.24
3.77 4.22 4.47
1.4% 1.4% 2.4%
-7.0%
-5.0%
-3.0%
-1.0%
1.0%
Dec-15 Sep-16 Dec-16
Credit Card
Personal Loan
NPL - unsecured business
10.14
12.05 12.71 +5.4% QoQ
+25.3% YoY
CIMB Niaga: FY 2016 Results MSME Banking
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MSME Loans
Growth QoQ YoY
Total 4.4% 1.0%
-23.3% -71.1%
3.0% -1.0%
6.0% 8.9%
Total Loans
22.84 23.47 24.88
9.06 8.71 8.97
2.28 0.86 0.66
Dec-15 Sep-16 Dec-16
Micro Finance
Micro Linkage & others
Small Medium
34.18 33.04 34.51
(Rp tril)
CIMB Niaga: FY 2016 Results Commercial Banking
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Commercial Loans
Growth QoQ YoY
Total 1.9% -3.0%
4.7% -6.0%
-1.4% 1.1%
Total Loans (Composition)
14.39 (42%)
14.76 (45%)
14.55 (44%)
19.86 (58%)
17.84 (55%)
18.67 (56%)
Dec-15 Sep-16 Dec-16
Working Capital
Investment
34.25 32.60 33.22
(Rp tril)
CIMB Niaga: FY 2016 Results Corporate Banking
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Corporate Portfolio
Growth QoQ YoY
Total 6.2% 7.1%
7.9% 4.7%
4.7% 9.5%
28.97 (51%)
30.29 (53%)
31.72 (52%)
27.98 (49%)
27.14 (47%)
29.29 (48%)
Dec-15 Sep-16 Dec-16
Working Capital
Investment
Total Loans (Composition)
(Rp tril)
56.95 57.43 61.01
CIMB Niaga: FY 2016 Results Syariah Banking
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7.28 8.13
10.21
Dec-15 Sep-16 Dec-16
Syariah Banking
Total Deposits
(Rp tril)
7.58
9.29 10.63
Dec-15 Sep-16 Dec-16
Total Financing
(Rp tril) +40.2% YoY
+14.4% QoQ
+40.2% YoY
+25.6% QoQ
CIMB Niaga: FY 2016 Results Final Remarks
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Final Remarks
Economic environment and competitive landscape expected to continue in 2017
CIMB Niaga will continue to adopt cautious growth approach, with sustained focus
on improving asset quality
Strengthening CASA, cost management and capital optimisation
Leverage digital strategy to enhance cross sell and broaden customer base
Repositioning our auto business model in 2017
SME and Consumer banking will be the key drivers for growth
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THANK YOU
CIMB Niaga: FY 2016 Results Appendices
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Corporate Structure – 31 December 2016
* Only direct stake held via BTMU ^ Includes PT Commerce Kapital 1.02% # Effective 30 August 2016, CIMB Group has transferred 5.44% shares ownership of CIMB Niaga to public in compliance with 7.5% free float shares as set out in IDX rule No.I-A
EPF KWAP MUFG Others Khazanah Nasional
Public
29.3% 16.1% 4.1% 4.7%* 45.8%
99.9%
7.5% 92.5%^
99.9%
CIMB Group Holdings Berhad
CIMB Group Sdn Bhd
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Board of Commissioners
Dato’ Sri Nazir Razak
President Commissioner
Glenn M.S. Yusuf
Vice President Commissioner
Zulkifli M. Ali
Independent Commissioner
Pri Notowidigdo
Independent Commissioner
Armida Salsiah Alisjahbana
Independent Commissioner
Jeffrey Kairupan
Independent Commissioner
David Richard Thomas
Commissioner
Ahmad Zulqarnain Onn
Commissioner
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Directors
Tigor M. Siahaan
President Director
Wan Razly Abdullah
Strategy & Finance Director
Rita Mas’Oen
Operations & IT Director
Megawati Sutanto
Credit Director
Vera Handajani
Risk Management Director
Lani Darmawan
Consumer Banking Director
Pandji Pratama Djajanegara
Syariah Banking Director
John Simon
Treasury & Capital Market Director
Hedy Maria Helena Lapian
Human Resources Director
Fransiska Oei
Compliance, Corp Affairs & Legal
Director
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Vision & Mission
To be The Leading ASEAN Company
Vision 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
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5th in terms of Asset
Assets (Rp trillion)
Source: Published Financial Statement by Bank Indonesia as of Nov-16, Bank only # Industry as of Nov-16
926 886
650
536
233 198 182 175 152 140
BRI Mandiri BCA BNI CIMBN BTN Panin Permata Maybank Danamon
Market Share# 14.1% 13.5% 9.9% 8.1% 3.5% 3.0% 2.8% 2.7% 2.3% 2.1%
Top 10 banks control 62.0% of industry’s Asset
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Maintained position as the 5th largest bank
693 644
518
390
178 148 135 133 115 101
BRI Mandiri BCA BNI CIMBN BTN Permata Panin Maybank Danamon
627 575
390 363
169 158 120 107 105 95
BRI Mandiri BCA BNI CIMBN BTN Panin Permata Maybank Danamon
Loans (Rp trillion) Customer Deposits (Rp trillion)
Top 10 banks control 63.2% of industry’s loans Top 10 banks control 64.5% of industry’s deposits
Source: Published Financial Statement by Bank Indonesia as of Nov -16; Bank only * Branches exclude Micro, Cash Counters, Payment Point & Mobile Cash; Danamon incl. Danamon Simpan Pinjam (DSP); Panin as of Dec-15
14.6% 13.4% 9.1% 8.5% 3.9% 3.7% 2.8% 2.5% 2.5% 2.2% 14.6% 13.6% 10.9% 8.2% 3.8% 3.1% 2.9% 2.8% 2.4% 2.1% Market Share#
Branches* (Sep-16)
23,695
17,461 17,057 16,525
3,704 1,830 1,641 1,521 1,023 1,012
BRI Mandiri BCA BNI CIMBN BTN Danamon Maybank Panin Permata
ATM~ (Sep-16)
1,288 1,257 1,204 1,118 1,073
566 528 407 347 309
Mandiri Danamon BCA BNI BRI Panin CIMBN Maybank BTN Permata
# Industry as of Nov-16 ~ ATM Danamon per Jun 2016
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Network & Distribution Channel
Dec-15 Sep-16 Dec-16 QoQ YoY
Branch & Network
Branches* 553 528 521 -7 -32
Payment & Cash Point 65 54 54 - -11
Digital Lounge 22 21 22 1 -
Mikro Laju 188 95 39 -56 -149
Mobile Cash 20 20 20 - -
Total Network 826 697 634 -63 -192
Electronic Channels
ATM 3,365 3,704 3,865 161 500
CDM 715 750 769 19 54
MFD** 203 187 189 2 -14
Employees 13,577 13,069 13,185 116 -392
* Branches exclude Mikro Laju, Payment & Cash Point; include SME centers ** MFD (previously was SST) stands for Multi Function Device
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Share Price and Ratings
Rating Agencies Rating / Outlook
Moody’s 4 Jul 2016
Outlook
Bank Deposits
Baseline Credit Assessment
Adj. Baseline Credit Assessment
Issuer Rating
Stable
Baa3/P-3
ba2
baa3
Baa3
Fitch 25 Nov 2016
Foreign Currency Long Term Foreign Currency IDR Short Term Foreign Currency IDR Support Rating Viability Rating
BBB / Stable F3 2 bb
Fitch 31 Mar 2016
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)
Pefindo 23 Aug 2016
Corporate Rating Senior Bond Rating Shelf Registration Bond Rating
idAAA idAAA idAAA
Share Price & Trading Volume
BNGA Dec-15 Mar-16 Jun-16 Sep-16 Dec-16
Price (Rp) 595 575 525 830 845
PBV (x) 0.54 0.45 0.40 0.62 0.62
PER 31.99 23.54 13.36 14.27 10.20
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Notable Awards in FY 2016
Market Conduct Awards 2015 as Financial Service Institution who implement principles for Customer Protection
Best Electronic Banking Implementation, Best Trade Finance Solution & Best Service Provider Cash Management - Best The Asset Triple A Treasury, Trade, and Risk Management Award 2016
The 8th IICD CG Award 2016
The Best Sharia Finance 2016
Excellence in Provision of Literacy & Education Award - The 8th Annual Global CSR Summit and Awards 2016
The Best Trade Finance Bank in Indonesia
Best Credit Card Product in Indonesia
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Launching E-Samsat Online on November 14th, 2016 at Gedung Sate Bandung
CIMB Niaga held Drama Musikal Khatulistiwa“Jejak Langkah Negeriku” in order to promote nationalism among the young generation through a Musical Play Khatulistiwa and launch of CIMB Niaga Second Tourism Sponsorship Bus for Jakarta. The event was held on 18-20 November 2016
Launching of CIMB Niaga IB Wakaf on December 13th, 2016 at M Floor Graha CIMB Niaga-Jakarta
CIMB Niaga Scholarship Inauguration on December 16th, 2016 at Phoenix Hotel-Yogyakarta
Corporate Activities in 4Q 2016
THANK YOU
PT Bank CIMB Niaga Tbk Investor Relations Menara Sentraya 31st Floor Jl. Iskandarsyah Raya I A Jakarta 12160 Tel. : (62-21) 270 0555 Fax. : (62-21) 250 5205 Email : [email protected]
www.cimbniaga.com