bnga3q15 analysis report

Analyst Presentation First Nine Months 2015 Results (Unaudited)

Jakarta

30 October 2015

2

Key Highlights

* BAU excludes MSS cost (Rp 471 bio)

Economic activity remains slow

Loan growth moderate at 7.2% YoY growth given the current environment

Deposits at 11.3% YoY growth, with CASA Ratio at 47.7% as CASA growing by 15.7% YoY

Gross NPL at 3.17%, improved due to sale of assets into Indonesian bad bank

NIMs holding at 5.19% in 9M15 (5.40% for 3Q15). Expect NIM pressure to persist

Operating income held up considerably well at 4.8% YoY growth at Rp10.3 tio in 9M15,

contributed mainly from NII growth of 9.5% YoY

One-off MSS cost of Rp471 bio taken in 3Q15

PBT BAU* down 73% YoY to Rp 848 bio in 9M15 (9M14: Rp3,136 bio), however

improved 392% QoQ to Rp615 bio in 3Q15 (2Q15: Rp125 bio)

CIMB Niaga: 9M 2015 Results Financial Results

4

Income Statement - Consolidated

* BAU excludes MSS cost (Rp 471 bio)

(Rp bil) 2Q15 3Q15 BAU*

QoQ 9M14 9M15 BAU*

YoY

Interest Income 5,558 5,696 2.5% 15,273 16,715 9.4%

Interest Expense (2,810) (2,718) -3.3% (7,488) (8,191) 9.4%

Net Interest Income 2,748 2,978 8.4% 7,785 8,524 9.5%

Non Interest Income 576 556 -3.5% 2,003 1,736 -13.3%

Operating Income 3,324 3,534 6.3% 9,788 10,260 4.8%

Operating Expenses (1,864) (1,728) -7.3% (5,145) (5,440) 5.7%

GA & Promotion Expenses (962) (899) -6.5% (2,747) (2,813) 2.4 %

Personnel Expenses (902) (829) -8.1% (2,398) (2,627) 9.5%

Pre Provision Operating Profit 1,460 1,806 23.7% 4,643 4,820 3.8 %

Provision Expenses (1,335) (1,191) -10.8% (1,507) (3,972) 163.6%

PBT 125 615 392.0% 3,136 848 -73.0%

Net Profit 93 442 375.3% 2,296 618 -73.1%

EPS (Rp, full amount) 3.73 17.59 371.6% 91.36 24.60 -73.1%

PBT (Actual) 125 144 15.2% 3,136 377 -88.0%

Net Profit (Actual) 93 89 -4.3% 2,296 265 -88.5%

5

Financial Position - Consolidated

(Rp tril) Sep-14 Jun-15 Sep-15 QoQ YoY

Cash & Short Term Funds 24.21 27.90 27.65 -0.9% 14.2%

Govt Bonds & Marketable Securities 26.02 28.63 26.67 -6.8% 2.5%

Loans* 166.84 180.82 178.89 -1.1% 7.2%

Loan Provision (4.64) (7.72) (6.85) -11.3% 47.6%

Fixed & Other Assets 15.31 15.61 17.93 14.9% 17.1%

Total Assets 227.74 245.24 244.29 -0.4% 7.3%

Current Account 37.87 46.93 45.19 -3.7% 19.3%

Saving Account 38.59 41.26 43.31 5.0% 12.2%

Time Deposit & Structured Deposit 90.33 97.80 97.22 -0.6% 7.6%

Total Customer Deposits 166.79 185.99 185.72 -0.1% 11.3%

Other Liabilities 32.69 30.72 30.33 -1.3% -7.2%

Total Liabilities 199.48 216.71 216.05 -0.3% 8.3%

Equity 28.26 28.53 28.24 -1.0% -0.1%

* On normalized level, Loans grew 0.4% QoQ and 8.8% YoY

6

Key Ratios - Consolidated

Key Ratios - Consolidated

* BAU excludes MSS Cost (Rp 471 bio)

WIP

(%) 2Q15 3Q15 BAU*

QoQ 9M14 9M15 BAU*

YoY

ROA 0.20 1.01 1.89 0.47

ROE (shareholders’ fund) 1.31 6.19 11.22 2.88

NIM 5.04 5.40 5.27 5.19

Fee Income / Total Income 17.33 15.73 20.46 16.92

Cost to Income (CIR) 56.09 48.88 52.56 53.02

CASA Ratio 47.42 47.66 45.84 47.66

Loan to Deposit (LDR) 95.81 94.93 98.51 94.93

LDR (Bank Only) 92.76 92.04 94.53 92.04

Gross NPL 4.28 3.17 3.35 3.17

Net NPL 1.66 1.47 2.19 1.47

Cost of Credit 2.95 2.67 1.24 2.98

Impairment – Gross 5.74 5.18 5.37 5.18

Loan Loss Coverage 99.60 120.96 82.89 120.96

Impaired LLC 74.35 73.96 51.75 73.96

7

(Rp bil)

Quarterly Earnings Trend

3,159

3,710

3,402 3,324 3,534

500

64 108 125

615 343

46 83 93

442

4.89%

0.66% 1.15% 1.31%

6.19%

3Q14 4Q14 1Q15 2Q15 3Q15 BAU*

Operating Income PBT Net Profit ROE (shareholders' fund)(1)

(1) Quarterly Annualized * BAU excludes MSS Cost (Rp 471 bio)

8

Net Interest Margin (%, YTD Annualized)

Net Interest Income Breakdown (incl. FTP)

5.27% 5.36%

5.22% 5.08%

5.19%

Sep-14 Dec-14 Mar-15 Jun-15 Sep-15

Net Interest Income

9M14: Rp 7,785 billion

9M15: Rp 8,524 billion

Quarterly Annualized NIM

3Q14 4Q14 1Q15 2Q15 3Q15

5.32% 5.63% 5.22% 4.94% 5.40%

NIMs Holding

Retail 30%

Commercial 11%

MSME 19%

Corporate 18%

Treasury 22%

9

(Rp bil) 9M14 9M15 YoY

188 131 -30.3%

57 32 -43.9%

132 128 -3.0%

353 190 -46.2%

1,273 1,255 -1.4%

Bancassurance 547 492 -10.1%

Remittance 102 103 1.0%

Card Related 247 250 1.2%

Other Fees & Commissions 377 410 8.8%

Total 2,003 1,736 -13.3%

NoII – Quarterly

487 806 604 576 556

3Q14 4Q14 1Q15 2Q15 3Q15

1,736 2,003

1,273 1,255

353 190

132

128

57

32

188

131

9M14 9M15

Recovery

Arranger & Syndication Fees

Trans. Banking & Trade Fin

Forex & Fixed Income Derivatives

Fees & Commissions

Non Interest Income Non Interest Income Breakdown

10

Operating Expenses & Cost to Income Ratio

Rp bil 2Q15

3Q15 BAU*

QoQ 9M14 9M15 BAU*

YoY

Advertising & Promotion 69 64 -7.2% 277 213 -23.1%

General & Admin. 893 835 -6.5% 2,470 2,600 5.3%

Personnel 902 829 -8.1% 2,398 2,627 9.5%

Total 1,864 1,728 -7.3% 5,145 5,440 5.7%

Total (Actual) 1,864 2,199 18.0% 5,145 5,911 14.9%

* BAU excludes MSS cost (Rp471 bio)

(%) 2Q15 3Q15 QoQ 9M14 9M15 YoY

Cost to income 56.09 62.20 6.11 52.56 57.60 5.04

Cost to income BAU* 56.09 48.88 -7.21 52.56 53.02 0.46

11

Loan Growth at 7.2% YoY

Segment (Rp tril) Sep-14 Jun-15 Sep-15 QoQ YoY

Consumer Banking (28%) 48.75 51.25 51.40 0.3% 5.4%

Mortgages 22.23 22.96 23.06 0.4% 3.7%

Auto Loans 18.14 18.86 18.80 -0.3% 3.6%

Credit Cards 4.95 5.72 5.88 2.8% 18.8%

Personal Loans 2.06 2.45 2.48 1.4% 20.6%

Multipurpose & Others (1) 1.37 1.26 1.18 -6.3% -13.9%

MSME Banking (20%) 33.61 35.94 35.26 -1.9% 4.9%

Small Medium 20.83 22.81 22.98 0.7% 10.3%

Micro Linkage & Others 9.99 10.06 9.56 -5.0% -4.3%

Micro Finance 2.79 3.07 2.72 -11.4% -2.5%

Commercial Banking (20%) 35.97 35.54 36.03 1.4% 0.2%

Corporate Banking (32%) 48.51 58.09 56.20 -3.3% 15.9%

Total (100%) 166.84 180.82 178.89 -1.1%* 7.2%*

Industry 3,561 3,828 3,881 (2) n.a. 10.9% (3)

(1) Others include Staff loan & CLB (2) As Of Aug-15 (3) Aug-15 YoY growth Industry source: Indonesia Banking Statistics

* On normalized level, Total Loans grew 0.4% QoQ and 8.8% YoY

12

82.89% 88.78% 102.55% 99.60%

120.96%

51.75% 72.38% 78.29% 74.35% 73.96%


Loan Loss Coverage Impaired LLC

Asset Quality Management remains a Priority Asset Quality

Loans by Collectability (% of Total Loan)

Coverage Ratio

3.35% 3.90% 4.07% 4.28%

3.17%

2.19% 1.94% 1.81% 1.66% 1.47%

5.37% 4.79% 5.33% 5.74%

5.18%


Gross NPL Net NPL Gross Impairment Ratio

Current 90.73%

Special Mention

5.92%

NPL 3.35%

Sep 14

Current 88.57%

Special Mention

8.26%

NPL 3.17%

Sep 15

Current 89.62%

Special Mention

6.10%

NPL 4.28%

Jun 15

13

Asset Quality by Business Segment

Gross NPL (%)

3.8% 7.3% 7.9% 6.9%

2.5%

5.8% 3.3% 3.5%

5.3% 6.0%

1.8% 1.6% 1.7% 1.6% 2.0%


2.4% 2.4% 2.5% 2.7% 2.9%

Corporate

Commercial

MSME

Consumer

14

Rp tril Sep-14 Jun-15 Sep-15 QoQ YoY

CASA 76.46 88.19 88.50 0.4% 15.7%

Current Account 37.87 46.93 45.19 -3.7% 19.3%

Saving Account 38.59 41.26 43.31 5.0% 12.2%

Time Deposits & Structured Deposits

90.33 97.80 97.22 -0.6% 7.6%

Total 166.79 185.99 185.72 -0.1% 11.3%

Industry 3,996 4,320 4,367* n.a 13.2% #

CASA 2,123 2,277 2,284* n.a 12.2% #

Time Deposits 1,873 2,043 2,082* n.a 14.4% #

* As of Aug-15 # Aug-15 YoY growth

Total Deposits grew 11.3% YoY

15

Capital Ratios

Total Equity (Rp tril) & ROE CAR (%) – Consolidated

Capital Adequacy Ratio (%) Sep-14 Jun-15 Sep-15

CAR with Credit Risk 18.34 18.44 18.45

Market Risk (0.17) (0.18) (0.14)

Operational Risk (2.16) (2.28) (2.30)

Total CAR 16.01 15.98 16.01

13.75 13.33 14.26 13.84 13.90

2.26 2.25

2.20 2.14 2.11


Tier 1 Tier 2

16.01 15.58

16.46 15.98 16.01

28.26 28.45 28.63 28.53 28.24

4.89% 0.66% 1.15% 1.31%

6.19%


Equity (Rp tril) ROE Shareholders Fund BAU* (1)

(1) Quarterly Annualized * BAU excludes MSS Cost (Rp 471 bio)

CIMB Niaga: 9M 2015 Results Consumer Banking

17

Consumer Loans by Products

Growth (Composition)

QoQ YoY

Total 0.3% 5.4%

-1.3% 6.7%

2.8% 18.8%

-0.3% 3.6%

0.4% 3.7%

Total Loans

22.23 22.96 23.06

18.14 18.86 18.80

4.95 5.72 5.88 3.43

3.71 3.66

Sep-14 Jun-15 Sep-15

Personal, Multipurpose& Others (7%)

Credit Cards (11%)

Auto Loans (37%)

Mortgage (45%)

48.75 51.25

(Rp tril)

51.40

18

Mortgages

Total Loans

Market Share

Mortgage Lender Jun-15

BTN 34.4%

BCA 17.4%

BNI 10.1%

Mandiri 8.0%

CIMB Niaga 7.0%

2.7% 2.3% 2.6%


22.23

22.96 23.06


(Rp tril)

7.2% 7.0% 7.0%

NPL Ratio

Market Share

+3.7% YoY

(1) As of Aug-15 Industry Source: Indonesia Banking Statistics

(1)

+0.4% QoQ

19

Auto Loans by Segment

Total Loans

(Rp tril)

Growth (Composition) QoQ YoY

Total -0.3% 3.6%

-6.4% 250.0%

0.0% -17.1%

-3.0% -15.1%

0.7% 2.5%

13.28 13.52 13.61

1.92 1.68 1.63

2.52 2.09 2.09

0.42 1.57 1.47

0.9% 0.9% 1.5%


Indirect Auto Loans

KITAF

Direct Loans

CNAF

NPL ratio

18.14 18.86 18.80

NPL Ratio

20

1,750

1,865 1,924


Credit Cards

Number of Cards Outstanding Balance

2013

# Bank Mkt Share

3 BNI

4 Mega

5 CIMBN 10.7%

4.95 5.72 5.88

1.2% 1.2% 1.1%


Outstanding Balance NPL

(thou) (Rp tril)

2014

# Bank Mkt Share

3 Mega

4 CIMBN 11.3%

5 BNI

* Market share based on card issued

Jun 2015

# Bank Mkt Share

3 Mega

4 CIMBN 11.2%

5 BNI

+3.2% QoQ

+9.9% YoY

21

Sustained Personal Loans growth

Total Loan

2,059

2,449 2,483

1.5% 1.9% 1.8%


Total Loan (Rp bil) NPL

(Rp bil)

+20.6% YoY

+1.4% QoQ

22

No. of Users

948 1,132 1,187


(thou) +25.2% YoY

+4.9% QoQ

Stable Growth in Digital Banking Platform

760 1,000 1,106


+10.6% QoQ

+45.5% YoY

No. of Users

(thou)

No. of Users

585

945 1,189


+25.8% QoQ

+103.2% YoY (thou)

CIMB Niaga: 9M 2015 Results MSME Banking

24

Growth QoQ YoY

Total -1.9% 4.9%

-11.4% -2.5%

-5.0% -4.3%

0.7% 10.3%

Total Loans

20.83 22.81 22.98

9.99 10.06 9.56

2.79 3.07 2.72


Micro Finance

Micro Linkage & others

Small Medium

33.61 35.94 35.26

(Rp tril)

MSME Loans

CIMB Niaga: 9M 2015 Results Commercial Banking

26

Commercial Loans

Growth QoQ YoY

Total 1.4% 0.2%

2.7% 6.4%

-0.3% -7.0%

Total Loans

16.75 15.62 15.58

19.22 19.92 20.45


Working Capital (57%)

Investment (43%)

35.97 35.54 36.03

(Rp tril)

CIMB Niaga: 9M 2015 Results Corporate Banking

28

Corporate Loans

Growth (Composition) QoQ YoY

Total -3.3% 15.9%

-1.5% 36.3%

-4.6% 3.5%

Total Loans

(Rp tril)

30.23 32.80 31.29

18.28

25.29 24.91


Working Cap. (44%)

Investment (56%)

48.51 58.09 56.20

Holcim Indonesia

Term Loan

IDR 750 bio

Ivo Mas Tunggal

Working Capital & Term Loan

USD 100 mio

* On normalized level, Total Corporate Loans grew 1.2% QoQ and 21.7% YoY

CIMB Niaga: 9M 2015 Results Syariah Banking

30

Syariah Banking

Total Deposits

(Rp tril)

4.88

7.91 7.85


Total Financing

(Rp tril)

5.90 6.56 6.91


+60.9% YoY

-0.8% QoQ

+17.1% YoY

+5.3% QoQ

CIMB Niaga: 9M 2015 Results Final Remarks

32

Final Remarks

Indonesia economic activity would be dependent on realization of government spending and economic packages

Focus remains on CASA growth, costs management and asset quality

MSS cost saving expected to be approximately Rp350 bio on an annualized basis.

Expect further cost initiatives being undertaken to reduce overhead expenses

1P Project near completion in 2016, currently under Operational Readiness Testing (ORT)

33

THANK YOU

CIMB Niaga: 9M 2015 Results Appendices

35

Corporate Structure – 30 September 2015

* Only direct stake held via BTMU ** Includes PT Commerce Kapital 1.02%

EPF KWAP MUFG Others Khazanah Nasional

Public

29.5% 17.3% 3.6% 4.6%* 45.0%

99.9%

2.1% 97.9%**

99.9% 99.9% 3.8%

CIMB Group Holdings Berhad

CIMB Group Sdn Bhd

36

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

37

Dato’ Sri Nazir Razak Glenn M.S. Yusuf

President Commissioner Vice President Commissioner

Roy Edu Tirtadji Sri Hartina Urip Simeon Zulkifli M. Ali

Independent Commissioner Independent Commissioner Independent Commissioner

Pri Notowidigdo David Richard Thomas Ahmad Zulqarnain Onn

Independent Commissioner Commissioner Commissioner

Board of Commissioners

38

Tigor M. Siahaan D. James Rompas Lo Nyen Khing*

President Director Vice President Director & SMME

Vice President Director & Corporate Banking

Wan Razly L. Wulan Tumbelaka Rita Mas’Oen

Strategy & Finance Compliance, Corp. Affairs & Legal

IT & Operations

Samir Gupta Megawati Sutanto Harjanto Tanuwidjaja

Consumer Banking Credit Human Resources

Vera Handajani John Simon

Risk Management Treasury & Capital Market

Directors

* Resigned effective 31 July 2015

39

5th in terms of Asset

Assets (Rp trillion)

Source: Published Financial Statement by Bank Indonesia as of August-15; Bank only # Industry as of August-15

814 765

570

415

237 183 167 165 163 144

Mandiri BRI BCA BNI CIMBN Permata Panin Danamon BTN BII

Market Share# 13.5% 12.7% 9.5% 6.9% 3.9% 3.0% 2.8% 2.8% 2.7% 2.4%

Top 10 banks control 60.3% of industry’s Asset

40

Maintained position as the 5th largest bank

595 591

462

317

183 145 122 120 116 109

Mandiri BRI BCA BNI CIMBN Permata BTN Panin Danamon BII

507 494

359

278

175 130 129 115 106 102

BRI Mandiri BCA BNI CIMBN Permata BTN Panin Danamon BII

Loans (Rp trillion) Customer Deposits (Rp trillion)

Branches* (Jun-15) ATMs (Jun-15)

Top 10 banks control 61.7% of industry’s loans Top 10 banks control 63.2% of industry’s deposits

Source: Published Financial Statement by Bank Indonesia as of August-15; Bank only * Branches exclude Micro, Cash Counters, Payment Point & Mobile Cash; Danamon incl. Danamon Simpan Pinjam (DSP) # Industry as of August-15

13.1% 12.7% 9.2% 7.2% 4.5% 3.3% 3.3% 3.0% 2.7% 2.6% 13.6% 13.5% 10.6% 7.3% 4.2% 3.3% 2.8% 2.7% 2.7% 2.5% Market Share#

2,327

1,364 1,135 1,080 1,069

563 560 428 375 314

Mandiri Danamon BCA BNI BRI CN Panin BII BTN Permata

21,215

17,032 16,707

14,157

3,325 1,830 1,530 1,473 1,019 1,007

BRI Mandiri BCA BNI CIMBN BTN BII Danamon Panin Permata

41

Network & Distribution Channel

* Branches exclude Mikro Laju, Payment & Cash Point; include SME centers ** Total Mikro including co-located branches 277 as of Sep-15 *** Rahn outlets are co-located with Mikro Laju

Sep-14 Jun-15 Sep-15 QoQ YoY

Branch & Network

Branches* 573 563 553 -10 -20

Payment & Cash Point 66 65 65 0 -1

Digital Lounge 19 21 22 1 3

Mikro Laju** 309 271 271 0 -38

Rahn*** 92 89 89 0 -3

Mobile Cash 20 20 20 0 0

Total Network 968 919 909 -10 -59

Electronic Channels

ATM 3,259 3,325 3,366 41 107

CDM 606 713 725 12 119

SST 175 215 220 5 45

Employees 14,853 15,078 13,959 -1,119 -894

42

Share Price and Ratings

Rating Agencies Rating / Outlook

Standard & Poors (Unsolicited Rating)

21 Apr 2012

Long term counterparty credit ratings/ Outlook

BB+/Positive/B

Moody’s 10 June 2015

Outlook

Bank Deposits

Baseline Credit Assessment

Adj. Baseline Credit Assessment

Issuer Rating

Stable

Baa3/P-3

ba2

Baa3

Baa3

Fitch 13 Apr 2015

Long Term Foreign Currency IDR Short Term Foreign Currency IDR Support Rating Viability Rating National Long Term National Short Term Rupiah Subordinated Bonds Rupiah Senior Bond Program 1 2012 Rupiah Senior Bond Prg. 1 tranche 1 & 2

BBB / Stable F3 2 bb AAA(idn) / Stable F1+(idn) AA(idn) AAA(idn) AAA(idn)

Pefindo 02 Jul 2015

Corporate Rating Senior Bond Rating Shelf Registration Bond Rating

idAAA idAAA idAAA

Share Price & Trading Volume

BNGA Sep-14 Dec-14 Mar-15 Jun-15 Sep-15

Price (Rp) 950 835 800 675 540

PBV (x) 0.84 0.74 0.70 0.59 0.48

PER 7.09 8.96 15.15 29.95 43.51

43

Notable Awards in 3Q 2015

“The Innovative Home Loan Bank”- Majalah Properti Indonesia

Platinum Trophy for “very good financial performance in 10 consecutive years”– Infobank Awards 2015

”Best Supporting Bank in Property for Excellence Service and Innovative.” - Indonesia Property Watch bekerja sama dengan majalah Property and The City

Indonesia WOW Brand 2015 untuk kategori Time Deposit – (Conventional Bank BUKU III) dan Installment Savings (Conventional Bank) – Indonesia Wow Brand 2015

44

PT Bank CIMB Niaga Tbk and PT Kereta Api Indonesia (Persero) signed the Agreement of ticket online transaction through CIMB Niaga Card Sites on Wednesday, 1 July 2015

CIMB Niaga officially launched OctoPay, a secure and reliable online banking service through facebook in cooperation with MasterCard, on 21 September 2015.

CIMB Niaga held a Philantrophy program in “Safari Ramadhan 1436 H” on July 2015.

CIMB Niaga held a Philantrophy CSR Program in “World Alzheimer Months” event in Monas through fun walk.

Corporate Activities in 3Q 2015

THANK YOU

PT Bank CIMB Niaga Tbk Investor Relations Graha CIMB Niaga 10th Floor Jl. Jend. Sudirman Kav. 58 Jakarta 12190 Tel. : (62-21) 250 5252, 250 5353 Fax. : (62-21) 250 5205 Email : [email protected]

www.cimbniaga.com

bnga3q15 analysis report

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