first quarter 2020 results (unaudited)investor.cimbniaga.co.id/misc/ap/2020/bnga-q1-2020.pdf · 5...

Analyst PresentationFirst Quarter 2020 Results (Unaudited)

Jakarta, 8 May 2020

2

Final Remarks

First Quarter 2020 Financial Performance

Business Navigation in light of Covid-19

3

Key Highlights

Despite challenging environment due to Covid-19 pandemic, CIMB Niaga

generated double digit PBT growth of 11.2% YoY and 10.1% QoQ

CASA growth of 18.8% YoY generated CASA ratio of 60.1% and mainly

contributed to customer deposits growth of 6.3% YoY

Loans grew 3.3% YoY with an increased attention on asset quality

Operating Expenses decreased by 2.7% YoY and brought CIR to 47.78%

Maintained asset quality, with NPL ratio improving slightly YoY to 3.03%

Higher ROA and ROE at 1.55% (+8bps YoY) and 10.58% (+ 110bps YoY)

respectively

CAR remained strong at 19.39% post IFRS/PSAK71 implementation

Second Quarter will be more challenging as we see headwinds coming. Asset

quality will become primary focus as our customers have been requesting for loan

rescheduling and restructuring.

4

Financial Position – Consolidated

(Rp tril) Mar-19 Dec-19 Mar-20 QoQ YoY

Cash & Short Term Funds 22.09 31.38 28.75 (8.4%) 30.1%

Gov’t Bonds & Marketable Securities 37.90 34.16 36.21 6.0% (4.5%)

Loans 187.99 194.24 194.28 0.0% 3.3%

Loan Provision BS (6.40) (6.06) (10.35) 70.8% 61.7%

Fixed & Other Assets 21.24 20.75 25.63 23.5% 20.7%

Total Assets 262.82 274.47 274.52 0.0% 4.5%

Current Account 48.09 48.94 56.32 15.1% 17.1%

Savings Account 54.32 59.32 65.33 10.1% 20.3%

Time Deposit & Structured Deposits 88.15 87.34 80.91 (7.4%) (8.2%)

Total Customer Deposits 190.56 195.60 202.56 3.6% 6.3%

Other Liabilities 31.30 35.58 31.93 (10.3%) 2.0%

Total Liabilities 221.86 231.18 234.49 1.4% 5.7%

Equity 40.96 43.29 40.03 (7.5%) (2.3%)

5

Income Statement

(Rp bil) 1Q19 4Q19 1Q20 QoQ YoY

Interest Income 5,250 5,387 5,291 (1.8%) 0.8%

Interest Expense (2,212) (2,291) (2,223) (3.0%) 0.5%

Net Interest Income 3,038 3,096 3,068 (0.9%) 1.0%

Non Interest Income 1,032 1,043 1,151 10.4% 11.5%

Operating Income 4,070 4,139 4,219 1.9% 3.7%

Operating Expenses (2,073) (2,050) (2,016) (1.7%) (2.7%)

Pre Provision Operating Profit 1,997 2,089 2,203 5.5% 10.3%

Provision Expenses (712) (791) (774) (2.1%) 8.7%

PBT 1,285 1,298 1,429 10.1% 11.2%

Net Profit 944 966 1,055 9.2% 11.8%

6

Key Ratios(%) 1Q19 4Q19 1Q20 QoQ YoY

ROA 1.47 1.42 1.55

ROE (shareholders’ fund) 9.48 8.91 10.58

NIM 5.28 5.14 5.02

Fee Income / Total Income 25.36 25.20 27.28

Cost to Income (CIR) 50.93 49.53 47.78

CASA Ratio 53.74 55.35 60.06

Loan to Deposit (LDR) 97.02 97.64 94.30

Gross NPL 3.04 2.79 3.03

Net NPL 1.42 1.30 1.56

Cost of Credit 1.60 1.63 1.51

Gross Impairment Ratio 3.91 3.81 4.38

Loan Loss Coverage 113.76 113.60 191.13

Impaired LLC 86.92 81.98 129.98

7

(Rp bil)

Quarterly Earnings Trend

Quarterly NIM

1Q19 2Q19 3Q19 4Q19 1Q20

5.28% 5.53% 5.29% 5.14% 5.02%

4,070 4,228 4,387 4,139 4,219

1,285 1,393 1,337 1,298 1,429 944 1,032 971 966 1,055

1Q19 2Q19 3Q19 4Q19 1Q20

Operating Income PBT Net Profit

Note: ^ Excludes MSS Cost

^

Net Interest Margin (YTD) Net Interest Income Breakdown

Net Interest Income

1Q 19: Rp 3,038 billion

1Q 20: Rp 3,068 billion

5.28%5.41% 5.37% 5.31%

5.02%

Mar-19 Jun-19 Sep-19 Dec-19 Mar-20

9.48% 10.10% 9.18% 8.91% 10.58%

ROE (shareholders' fund)

^

Consumer40%

Corporate20%

Treasury15%

MSME11%

Commercial14%

8

(Rp bil) 1Q19 4Q19 1Q20 QoQ YoY

385 285 313 9.8% (18.7%)

142 123 305 148.0% 114.8%

133 66 162 145.5% 21.8%

115 128 148 15.6% 28.7%

150 325 111 (65.8%) (26.0%)

107 116 112 (3.4%) 4.7%

Total 1,032 1,043 1,151 10.4% 11.5%

Non Interest Income

1,032

950

1,232

1,043

1,151

1Q19 2Q19 3Q19 4Q19 1Q20

Non Interest Income Breakdown

Quarterly NoII (Rp bil)

107 116 112

150

325

111

115

128

148

133

66

162

142

123 305

385

285

313

1Q19 4Q19 1Q20

Fees & Commissions

FX & Derivatives

Bancassurance

Gain (Loss) from MS

Recovery Income

Card Related

9

50.93%

49.40%48.92% 49.07%

47.78%


Operating Expenses & Cost to Income Ratio

Note: ^ Excludes MSS Cost

YTD CIR (%)

Rp bil 1Q19 4Q19 1Q20 QoQ YoY

Personnel 1,043 999 1,074 7.51% 2.97%

Other Expenses 1,030 1,051 942 (10.37%) (8.54%)

Total 2,073 2,050 2,016 (1.66%) (2.75%)

(%) 1Q19 4Q19 1Q20 QoQ YoY

Cost to Income 50.93 49.53 47.78 (1.75) (3.15)

^ ^

10

Deposit Growth

Product (Rp tril) Mar 19 Dec 19 Mar 20 QoQ YoY

CASA 102.41 108.26 121.65 12.4% 18.8%

Current Account 48.09 48.94 56.32 15.1% 17.1%

Saving Account 54.32 59.32 65.33 10.1% 20.3%

Time Deposits & Structured Deposits 88.15 87.34 80.91 (7.4%) (8.2%)

Total (100%) 190.56 195.60 202.56 3.6% 6.3%

CASA Ratio 53.74 55.35 60.06 +471bps +632bps

11

Loans Growth

Segment (Rp tril) Mar 19 Dec 19 Mar 20 QoQ YoY

Consumer Banking (28%) 49.89 54.29 54.78 0.9% 9.8%

Mortgages 31.03 33.78 34.62 2.5% 11.6%

Credit Cards 8.58 9.70 9.34 (3.7%) 8.9%

Auto Loans 6.11 6.46 6.49 0.5% 6.2%

Personal Loan & Others 4.17 4.35 4.33 (0.5%) 3.8%

SME Banking (11%) 22.35 21.41 20.78 (2.9%) (7.0%)

Commercial Banking (23%) 46.28 46.47 44.40 (4.5%) (4.1%)

Corporate Banking (38%) 69.47 72.07 74.32 3.1% 7.0%

Total (100%) 187.99 194.24 194.28 0.0% 3.3%

Note: Loans growths with constant FX are -1.9% QoQ and +1.4% YoY

12

Asset Quality Management

Loans by Collectability (% of Total Loan)

Coverage RatioAsset Quality

1.42% 1.50% 1.30% 1.30% 1.56%

3.04% 2.87%2.62% 2.79%

3.03%

3.91%3.17%

3.10%3.81%

4.38%


Gross Impairment Ratio Gross NPL Net NPL

86.92% 90.10% 93.26% 81.98%

129.98%

113.76% 101.20%111.86% 113.60%

191.13%


Loan Loss Coverage Impaired LLC

Current Loan

92.56%

Spc Mention4.40%

NPL3.04%

Mar 19

Current Loan

92.26%

Spc Mention4.95%

NPL2.79%

Dec 19

Current Loan

88.87%

Spc Mention8.10%

NPL3.03%

Mar 20

13

Gross NPL (%)

1.0% 1.8% 1.9% 2.4% 2.6%

6.3%4.6% 4.3% 4.4% 4.8%

2.4% 2.3% 2.2% 2.0% 2.2%


3.8% 3.4% 2.2% 2.2% 2.7%

Corporate

Commercial

SME

Consumer

Asset Quality by Business Segment

14

19.16 19.38 19.96 20.20 18.14

1.21 1.21 1.25 1.27

1.25


Tier 2

Tier 1

Capital RatiosTotal Equity (Rp tril) CAR (%) – Consolidated

Capital Adequacy Ratio (%) Mar 19 Dec 19 Mar 20

CAR with Credit Risk 24.00 25.36 23.11

Market Risk (0.24) (0.31) (0.30)

Operational Risk (3.39) (3.58) (3.42)

Total CAR 20.37 21.47 19.39

20.37 20.59 21.21 21.47

19.3940.96 41.52 42.28

43.29

40.03


CIMB Niaga: 1Q 2020 Results

Consumer Banking

16

Continued Growth in Consumer BankingProducts QoQ YoY

TOTAL 0.9% 9.8%

(0.5)% 3.8%

0.5% 6.2%

(3.7%) 8.9%

2.5% 11.6%

Total Loans by Products (Rp tril)

49.8954.29 54.78

Total Deposits (Rp tril)

94.62 101.80106.89

Products QoQ YoY

TOTAL 5.0% 13.0%

(1.2%) 1.3%

9.7% 22.8%

51.38 57.48 63.08

43.2444.32

43.81

Mar 19 Dec 19 Mar 20

Time Deposits

CASA

31.03 33.78 34.62

8.589.70 9.34

6.116.46 6.494.174.35 4.33

Mar-19 Dec-19 Mar-20

Personal Loan & Others (8%)

Auto (12%)

Credit Card (17%)

Mortgage (63%)

17

45%

43%

12%

Primary Secondary Refinancing

31.03

33.7834.62


Total Loans (Rp tril)

Mortgages Continue building long term sustainable asset growth

Portfolio Diversification

+ 11.6% YoY

+ 2.5% QoQ

18

6,877

7,339

7,666

Mar 18 Mar 19 Mar 20

10,173 10,270

10,903


2,546 2,554

2,631


Credit Cards Carefully growing portfolio, transaction & sales volume

+0.3%

+3.0%

+1.0%

+6.2%

+6.7%

+4.5%

Sales Volume (Rp bil)Number of Credit Cars (‘000) Number of Transactions (‘000)

19

Growth QoQ YoY

Total 0.5% 6.2%

(4.0%) 0.1%

1.5% 7.7%

Total Loans (Rp tril)

*) CNAF: include direct auto and JF with CNAF

Auto Loans Growing despite challenging condition

4.91 5.21 5.29

1.20

1.25 1.20


Indirect Auto Loans

CNAF *)

6.116.46 6.49

Portfolio Diversification

Dealer 68%

Non Dealer32%

20

2,303

2,606 2,698


Channels Growing usage of mobile banking contributed to CASA growth

Number of Users (‘000) CASA (Rp tril)

21.926.4

29.9


Monthly Volume (Rp bil) Monthly Number of Transactions (‘000)

3,575

6,5657,168


2,9713,522

4,156


+17.15% YoY

+39.89% YoY

+36.53% YoY

+3.53% QoQ

+100.50% YoY

+9.19% QoQ +18.00% QoQ

+13.26% QoQ


SME Banking

22

SME Loans

Programs QoQ YoY

TOTAL (2.9%) (7.0%)

4.2% (69.8%)

(3.8%) 29.3%

Total Loans by Programs (Rp tril)

14.16

19.04 18.31

8.19

2.372.47


Non-Retail Lending Program

Retail Lending Program

22.3521.41

20.78


Commercial Banking

24

Commercial Loans

Types QoQ YoY

TOTAL (4.5%) (4.1%)

1.1% (12.4%)

(6.7%) 0.1%

30.74 33.00

30.78

15.54 13.47

13.62


Investment

Working Capital

Total Loans by Types (Rp tril)

46.2844.40

46.47

CIMB Niaga: Q1 2020 Results

Corporate Banking

26

Types QoQ YoY

TOTAL 0.7% 19.2%

(21.1%) (26.0%)

10.5% 48.3%

Corporate Loans

Types QoQ YoY

TOTAL 3.1% 7.0%

4.7% (11.2%)

2.2% 23.1%

Total Loans by Types (Rp tril)

36.83 44.36 45.32

32.6427.71 29.00


Working Capital

Investment

69.47 72.07 74.32

14.920.0 22.1

9.6

9.0 7.1


TD

CASA

24.5

29.0 29.2

Total Deposits (Rp tril)


Syariah Banking

28

28.04 33.10 34.48


Financing

Types QoQ YoY

TOTAL (6.9%) 14.4%

14.1% 32.1%

(16.5%) 5.5%

1.15%0.98%

1.07%

NPF

Total Financing (Rp tril)

Syariah Banking: Driven by Syariah First

Syariah PBT (Rp bil)

+ 23.0% YoY

+ 4.2%QoQ

Total Deposits

+ 36.4% YoY

+ 7.3%QoQ

26.52

32.5930.33

17.7122.39

18.69

8.81

10.2011.64


CASA

TD

236

300322

1Q19 4Q19 1Q20

29

Final Remarks



30

Immediate Focus in light of Covid-19

Liquidity

Cost Management

Asset QualityEmployee Health

& Welfare

Transformation &

Digitalization

Supporting

Government

31

Final Remarks



32

Final Remarks

We are delighted with stronger 1Q20 performance despite very challenging economic

and physical environment

We expect headwinds in the following months given impacts of Covid-19 and hence

moderation of financial performance

Employee health and welfare as well as customers business continuity are our main

priorities

Given the headwinds, our business focus are liquidity, asset quality, and cost

management

We continue to drive Forward23 program focusing on customer journey,

digitalization, and productivity improvement

Supporting all government efforts to ensure business and economic sustainability

33

THANK YOU

34

Rating Agencies Rating / Outlook

Moody’s

29 Nov 2019

Outlook

Counterparty Risk Rating

Bank Deposits

Baseline Credit Assessment

Adj. Baseline Credit Assessment

Counterparty Risk Assessment

Issuer Rating

Stable

Baa1/P-2

Baa2/P-2

ba1

baa2

Baa1(cr)/P-2(cr)

Baa2

Fitch

24 Feb 2020

Foreign Currency

Long Term Foreign Currency IDR

Short Term Foreign Currency IDR

Support Rating

Viability Rating

BBB- / Stable

F3

2

bb

Fitch

24 Feb 2020

National Ratings

National Long Term

National Short Term

Subordinated Bonds II

AA+(idn) / Stable

F1+(idn)

AA-(idn)

Pefindo

10 Sep 2019

Corporate Rating

Shelf Registration Bond Rating

Subordinated Bonds III

Sukuk Mudharabah

idAAA/ Stable

idAAA

IdAA

idAAA(SY)

Share Price & Trading Volume

BNGA Mar-19 Dec-19 Mar-20

Price (Rp) 1,065 965 600

PBV (x) 0.65 0.56 0.38

PER 7.67 6.66 3.75

Share Price & Ratings

Share Price Volume

-

5,000

10,000

15,000

20,000

25,000

30,000

-

200

400

600

800

1,000

1,200

1,400

35^ Includes PT Commerce Kapital 1.02%

EPF PNB KWAPKhazanah

Nasional

Public

23.77% 15.21% 12.20% 6.36%

7.5% 92.5%^

99.9%

CIMB Group Holdings Berhad

Others

42.46%

94.8%

Corporate Structure as per 31 Mar 2020

https://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiMk-X98rvXAhXLPY8KHe1YC_sQjRwIBw&url=https://www.cermati.com/kredit-mobil-bekas/kredit-mobil-bekas-cimb-niaga-auto-finance&psig=AOvVaw2BXTtzhnmXxYw240tuaaDw&ust=1510674436409074

https://www.google.co.id/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiMk-X98rvXAhXLPY8KHe1YC_sQjRwIBw&url=https://www.cermati.com/kredit-mobil-bekas/kredit-mobil-bekas-cimb-niaga-auto-finance&psig=AOvVaw2BXTtzhnmXxYw240tuaaDw&ust=1510674436409074

36

Tengku Dato’ Sri Zafrul

Tengku Abdul Aziz

President

Commissioner*)

Glenn M.S. Yusuf

Vice President

Commissioner

Zulkifli M. Ali

Independent

Commissioner

Pri Notowidigdo

Independent

Commissioner

Jeffrey Kairupan

Independent

Commissioner***)

David Richard

Thomas

Commissioner

Sri Widowati

Independent

Commissioner

Didi Syafruddin Yahya

Commissioner

*) tendered his resignation from his position as President Commissioners through the letter that has been received on 9 March 2020 and

will be conveyed to obtain resolution in the 2020 AGM

**) tendered resignation as Vice President Commissioner in accordance through letter dated 31 August 2019 that became effective on 1

September 2019

***) appointed as a Senior Independent Commissioners of the Bank through Circular Resolution of Board of Commissioners of CIMB

Niaga as of 28 June 2019

**)

Board of Commissioner

37

Rahardja

Alimhamzah

Business Banking

Director *)

Tigor M.

Siahaan

President

Director

Rita Mas’Oen

Operations & IT

Director

Megawati

Sutanto

Credit

Director

Vera Handajani

Risk Management

Director

John Simon

Treasury & Capital

Market Director

Hedy Maria

Helena Lapian

Human Resources

Director

Fransiska Oei

Compliance,

Corporate Affairs and

Legal Director

Pandji Pratama

Djajanegara

Syariah Banking

Director

Lani Darmawan

Consumer Banking

Director

Lee Kai Kwong

Finance & SPAPM

Director

Directors

*) tendered resignation as Director through letter received by the Bank on 21 February 2020 and will be conveyed to obtain resolution in the 2020 AGM

38

Mar-19 Dec-19 Mar-20 QoQ YoY

Branch & Network

Branches 438 391 390 (1) (48)

Digital Lounge 27 33 34 1 7

Mobile Branch 27 27 27 - -

Total Network 492 451 451 - (41)

Electronic Channels

ATM 4,497 4,500 4,486 (14) (11)

CDM & CRM 951 952 929 (23) (22)

EDC & QR 92,143 232,910 252,958 20,048 160,815

Employees

Bank only 12,375 12,372 12,100 (272) (275)

CNAF 1,007 882 891 9 (116)

CNS n.a 15 22 7 22

Total Employees 13,382 13,269 13,013 (256) (369)

Network & Distribution Channel

39

• Best Bank in Mortgage• Satisfaction, Loyalty & Engagement (SLE) Awards 2020

Notable Awards in 1Q 2020

Indonesia Green Awards 2020in the category of Developing Biodiversity

40

Corporate Social ResponsibilityCSR Activity in 1Q 2020

23 January 2020. Accountability of Let’s Save and Share (AMDB) Program 2019, CIMB

Niaga gave educational support donations for 3 foundations and 3 senior high schools

19 – 20 February 2020. Samarinda became the 1st city for launching Let’s Save

and Share Program (AMDB) 2020. This event was attended by 525 students from

Bunga Bangsa Islamic Middle School, Sunodia Christian High School, Sunodia

Christian Middle School and Cita Hati Elementary School.

29 February 2020. Lampung became the 1st city for launching Tour de Bank (TDB)

Program 2020. The event was attended by 250 students from SD Islam Azzahra, SD

Rawa Laut, SD Pelita Bangsa, SD Trinitas and SD Mawar Sharon.

28 February 2020. Fund raising of CIMB Niaga Peduli for Jabodetabek Flood in

January 2020 has resulted of Rp74,014,100. CIMB Niaga with LAZ Al Azhar provided

'Logistics Distribution' to community in Pantai Harapan Jaya Village, Muara Gembong

District, Bekasi.

first quarter 2020 results (unaudited)investor.cimbniaga.co.id/misc/ap/2020/bnga-q1-2020.pdf · 5...

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