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%
Mar-19 Jun-19 Sep-19 Dec-19 Mar-20
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%
Mar-19 Jun-19 Sep-19 Dec-19 Mar-20
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%
Mar-19 Jun-19 Sep-19 Dec-19 Mar-20
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%
Mar-19 Jun-19 Sep-19 Dec-19 Mar-20
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
Mar-19 Jun-19 Sep-19 Dec-19 Mar-20
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
Mar-19 Jun-19 Sep-19 Dec-19 Mar-20
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
Mar-19 Dec-19 Mar-20
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
Mar 18 Mar 19 Mar 20
2,546 2,554
2,631
Mar 18 Mar 19 Mar 20
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
Mar 19 Dec 19 Mar 20
Indirect Auto Loans
CNAF *)
6.116.46 6.49
Portfolio Diversification
Dealer 68%
Non Dealer32%
20
2,303
2,606 2,698
Mar 19 Dec 19 Mar 20
Channels Growing usage of mobile banking contributed to CASA growth
Number of Users (‘000) CASA (Rp tril)
21.926.4
29.9
Mar 19 Dec 19 Mar 20
Monthly Volume (Rp bil) Monthly Number of Transactions (‘000)
3,575
6,5657,168
Mar 19 Dec 19 Mar 20
2,9713,522
4,156
Mar 19 Dec 19 Mar 20
+17.15% YoY
+39.89% YoY
+36.53% YoY
+3.53% QoQ
+100.50% YoY
+9.19% QoQ +18.00% QoQ
+13.26% QoQ
CIMB Niaga: 1Q 2020 Results
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
Mar-19 Dec-19 Mar-20
Non-Retail Lending Program
Retail Lending Program
22.3521.41
20.78
CIMB Niaga: 1Q 2020 Results
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
Mar-19 Dec-19 Mar-20
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
Mar-19 Dec-19 Mar-20
Working Capital
Investment
69.47 72.07 74.32
14.920.0 22.1
9.6
9.0 7.1
Mar-19 Dec-19 Mar-20
TD
CASA
24.5
29.0 29.2
Total Deposits (Rp tril)
CIMB Niaga: 1Q 2020 Results
Syariah Banking
28
28.04 33.10 34.48
Mar-19 Dec-19 Mar-20
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
Mar-19 Dec-19 Mar-20
CASA
TD
236
300322
1Q19 4Q19 1Q20
29
Final Remarks
First Quarter 2020 Financial Performance
Business Navigation in light of Covid-19
30
Immediate Focus in light of Covid-19
Liquidity
Cost Management
Asset QualityEmployee Health
& Welfare
Transformation &
Digitalization
Supporting
Government
31
Final Remarks
First Quarter 2020 Financial Performance
Business Navigation in light of Covid-19
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
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.