Analyst Presentation 1Q 2020

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Analyst Presentation

First Quarter 2020 Results (Unaudited)

Jakarta, 8 May 2020

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Final Remarks

First Quarter 2020 Financial Performance

Business Navigation in light of Covid-19

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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.

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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%)

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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%

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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

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(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)

^

Consumer 40%

Corporate 20%

Treasury 15%

MSME 11%

Commercial 14%

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(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

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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)

^ ^

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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

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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

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Asset Quality Management

Loans by Collectability (% of Total Loan)

Coverage Ratio Asset 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 Mention

4.40%

NPL 3.04%

Mar 19

Current Loan 92.26%

Spc Mention

4.95%

NPL 2.79%

Dec 19

Current Loan 88.87%

Spc Mention

8.10%

NPL 3.03%

Mar 20

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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

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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 Ratios

Total 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

19.39 40.96 41.52 42.28 43.29

40.03

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CIMB Niaga: 1Q 2020 Results

Consumer Banking

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Continued Growth in Consumer Banking

Products 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)

49.89 54.29 54.78

Total Deposits (Rp tril)

94.62 101.80 106.89

Products QoQ YoY

TOTAL 5.0% 13.0%

(1.2%) 1.3%

9.7% 22.8%

51.38 57.48 63.08

43.24 44.32 43.81

Mar 19 Dec 19 Mar 20

Time Deposits CASA

31.03 33.78 34.62

8.58 9.70 9.34

6.11 6.46 6.49

4.17 4.35 4.33

Mar-19 Dec-19 Mar-20

Personal Loan & Others (8%) Auto (12%)

Credit Card (17%) Mortgage (63%)

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45%

43%

12%

Primary Secondary Refinancing

31.03

33.78 34.62

Total Loans (Rp tril)

Mortgages

Continue building long term sustainable asset growth

Portfolio Diversification

+ 11.6% YoY + 2.5% QoQ

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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)

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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 *)

6.11

6.46 6.49

Portfolio Diversification

Dealer 68%

Non Dealer 32%

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2,303

2,606 2,698

Channels

Growing usage of mobile banking contributed to CASA growth

Number of Users (‘000) CASA (Rp tril)

21.9

26.4 29.9

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

3,575

6,565 7,168

2,971 3,522

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

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CIMB Niaga: 1Q 2020 Results

SME Banking

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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

2.37 2.47

Non-Retail Lending Program Retail Lending Program 22.35

21.41 20.78

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CIMB Niaga: 1Q 2020 Results

Commercial Banking

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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) 46.28

44.40 46.47

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CIMB Niaga: Q1 2020 Results

Corporate Banking

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TOTAL 0.7% 19.2%

(21.1%) (26.0%)

10.5% 48.3%

Corporate Loans

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

32.64 27.71 29.00

Working Capital Investment

69.47 72.07 74.32

14.9 20.0 22.1

9.6

9.0 7.1

TD CASA 24.5

29.0 29.2

Total Deposits (Rp tril)

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CIMB Niaga: 1Q 2020 Results

Syariah Banking

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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

32.59

30.33

17.71 22.39

18.69 8.81

10.20

11.64

CASA TD

236

300 322

1Q19 4Q19 1Q20

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Final Remarks

First Quarter 2020 Financial Performance

Business Navigation in light of Covid-19

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Immediate Focus in light of Covid-19

Liquidity

Cost Management

Asset Quality Employee Health

& Welfare

Transformation &

Digitalization Supporting

Government

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Final Remarks

First Quarter 2020 Financial Performance

Business Navigation in light of Covid-19

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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

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THANK YOU

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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

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^ Includes PT Commerce Kapital 1.02%

EPF PNB KWAP

Khazanah 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

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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

**)

Board of Commissioner

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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

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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

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39

• Best Bank in Mortgage

• Satisfaction, Loyalty & Engagement (SLE) Awards 2020

Notable Awards in 1Q 2020

Indonesia Green Awards 2020

in the category of Developing Biodiversity

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Corporate Social Responsibility

CSR 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.