Analyst Presentation 2Q 2020

(1)

Analyst Presentation

First Half 2020 Results (Unaudited)

Jakarta, 30 July 2020

(2)

Final Remarks CEO Remarks

1H20 Financial Performance

(3)

Key Highlights

Successful shift to CASA raising CASA ratio to 61% as CA grew 17.8 % and SA grew 15.5 % YoY

Loans contracted 2.3% YoY as attention on asset quality increased

Operating Expenses decreased by 2.8% YoY and brought CIR to 47.97%

NPL ratio increased by 102 bps YoY

PBT decreased by 15.2% YoY attributed to higher Provision Expenses ROA and ROE at 1.28% and 8.74% respectively

CAR and liquidity remained strong with CAR at 19.97% and LDR at 89.84%

(4)

Macroeconomics

5.01% 5.01% 5.06% 5.19% 5.06% 5.27% 5.17% 5.18% 5.07% 5.05% 5.02% 4.97% 2.97%

14,141

14,174

13,901 16,367

14,302

3.28% 3.39%

2.72% 2.96%

1.96%

6.00%

5.25% 5.00%

4.50% 4.25%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000

Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20

GDP Growth (Quarterly) Exchange Rate Inflation Rate BI 7 Day Repo Rate

GDP Growth, Exchange Rate, Inflation Rate & BI 7 Day Repo Rate

(5)

Split operation and work from home Daily staff monitoring & managing

confirmed and suspected cases Postponements of events and gatherings Workplace safety & health assurance

Vitamin and additional allowance for staffs working in office

Travel restrictions and quarantine requirements

Staff engagement and awareness Temporary close of some branches

Employee Health &

Welfare

Tightening of additional & new to bank

requests Drawdown/disbursement protocol

Stimulus/relaxation framework Weekly review of out of money

FX/derivatives transactions

Policy tightening for acquisition and portfolio management

Identification of affected segments of existing portfolio and their impact

Launch of R&R programs

Application & behavior scorecard adjustments

Intensify early warning Robust delinquency & loss forecast

Retail Asset Quality Non Retail Asset Quality

How We Navigate Through Covid-19 Pandemic (1/2)

Customer engagement & communication

(6)

RWA Optimization Increase CASA Capital &

Liquidity Management

Process calibration for efficiency

Adjustments of process and control Asset optimization and centralization

Drive usage of digital channels

G&A costs optimization Operation &

Cost

Management

How We Navigate Through Covid-19 Pandemic (2/2)

IT & cyber security

Transformation

& Digitalization

Build strong infrastructure

Digitize internal process Revamp customer journeys

Develop internal talent

Drive customer digital adoption Add and enhance apps features Price monitoring and management Surplus liquidity management

(7)

1. Playing to Our

Strengths 2. Expanding CASA

Franchise 3. Discipline in Cost Management

4. Preservation of Capital and Balanced

Risk Culture

5. Leverage Information Technology

Increase Branch Productivity Focus on Preferred and Payroll segments

Leverage Analytics to Define Targeted Customers

Continue Building Digital Capabilities

Grow Consumer Segment (Mortgage, Auto Finance, Wealth Management, CC, PL) Grow SME Segment

Productivity Increase and Process Improvement in COBA/COMBA

Cross-selling of Treasury and Transaction Banking products

Optimize Network Footprint

& Align with New Normal Utilize new technology to reduce costs

Centralization and Process Improvements

Optimize G&A Expenses

Analytics based, advanced technology and data driven risk management

World-class risk infrastructures

Embed Balanced Risk Culture in daily operations

Optimize capital utilization to support growth

Build Internal Capabilities for Application Developments Optimum IT and Application Architectures

Prepare IT Infrastructure for Growth

Focus on Cyber Security

Continue 5 Pillar Strategy Execution Beyond Covid-19

(8)

Final Remarks CEO Remarks

1H20 Financial Performance

(9)

Financial Position – Consolidated

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

Cash & Short Term Funds 32.26 28.75 23.54 (18.1%) (27.0%)

Gov’t Bonds & Marketable Securities 32.85 36.21 48.88 35.0% 48.8%

Loans 190.54 194.28 186.08 (4.2%) (2.3%)

Loan Provision BS (5.45) (10.35) (10.80) 4.3% 98.2%

Fixed & Other Assets 21.66 25.63 26.72 4.3% 23.4%

Total Assets 271.86 274.52 274.42 0.0% 0.9%

Current Account 50.72 56.32 59.76 6.1% 17.8%

Savings Account 55.91 65.33 64.56 (1.2%) 15.5%

Time Deposit & Structured Deposits 91.22 80.91 79.37 (1.9%) (13.0%)

Total Customer Deposits 197.85 202.56 203.69 0.6% 3.0%

Other Liabilities 32.49 31.93 31.01 (2.9%) (4.6%)

Total Liabilities 230.34 234.49 234.70 0.1% 1.9%

Equity 41.52 40.03 39.72 (0.8%) (4.3%)

(10)

Income Statement

(Rp bil) 1Q20 2Q20 QoQ 1H19 1H20 YoY

Interest Income 5,291 5,210 (1.5%) 10,823 10,501 (3.0%)

Interest Expense (2,223) (2,075) (6.7%) (4,507) (4,298) (4.6%)

Net Interest Income 3,068 3,135 2.2% 6,316 6,203 (1.8%)

Non Interest Income 1,151 951 (17.4%) 1,982 2,102 6.1%

Operating Income 4,219 4,086 (3.2%) 8,298 8,305 0.1%

Operating Expenses (2,016) (1,968) (2.4%) (4,099) (3,984) (2.8%)

Pre Provision Operating Profit 2,203 2,118 (3.9%) 4,199 4,321 2.9%

Provision Expenses (774) (1,277) 65.0% (1,521) (2,051) 34.8%

PBT 1,429 841 (41.1%) 2,677 2,270 (15.2%)

Net Profit 1,055 689 (34.7%) 1,976 1,744 (11.7%)

(11)

Key Ratios

(%) 1Q20 2Q20 QoQ 1H19 1H20 YoY

ROA 1.55 1.02 1.51 1.28

ROE (shareholders’ fund) 10.58 6.91 9.75 8.74

NIM 5.02 5.08 5.41 5.05

Fee Income / Total Income 27.28 23.28 23.88 25.31

Cost to Income (CIR) 47.78 48.17 49.40 47.97

CASA Ratio 60.06 61.03 53.89 61.03

Loan to Deposit (LDR) 94.30 89.84 94.67 89.84

Gross NPL 3.03 3.89 2.87 3.89

Net NPL 1.56 1.87 1.50 1.87

Cost of Credit 1.51 3.01 1.70 2.26

Gross Impairment Ratio 4.38 5.18 3.17 5.18

Loan Loss Coverage 191.13 159.37 102.15 159.37

Impaired LLC 129.98 117.71 90.10 117.71

(12)

Deposit Growth

Product (Rp tril)

^{Jun 19} ^{Mar 20} ^{Jun 20} ^QoQ ^YoY

CASA 106.63 121.65 124.32 2.2 % 16.6 %

Current Account 50.72 56.32 59.76 6.1 % 17.8 %

Saving Account 55.91 65.33 64.56 (1.2%) 15.5 %

Time Deposits & Structured Deposits 91.22 80.91 79.37 (1.9%) (13.0%)

Total (100%) 197.85 202.56 203.69 0.6% 3.0%

CASA Ratio 53.89 60.06 61.03 +97bps +714bps

(13)

Loans Growth

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

Consumer Banking (29%) 51.11 54.78 53.88 (1.6%) 5.4%

Mortgages 31.75 34.62 34.67 0.1% 9.2%

Credit Cards 8.94 9.34 8.69 (7.0%) (2.8%)

Auto Loans 6.17 6.49 6.46 (0.5%) 4.7%

Personal Loan & Others 4.25 4.33 4.06 (6.2%) (4.5%)

SME Banking (11%) 21.63 20.78 20.12 (3.2%) (7.0%)

Commercial Banking (22%) 46.40 44.40 40.45 (8.9%) (12.8%)

Corporate Banking (38%) 71.40 74.32 71.63 (3.6%) 0.3%

Total (100%) 190.54 194.28 186.08 (4.2%) (2.3%)

(14)

4,228 4,387 4,139 4,219 4,086

8,298 8,305

1,393 1,337 1,298 1,429 841

2,677 2,270

2Q19 3Q19 4Q19 1Q20 2Q20 1H19 1H20

Operating Income PBT

10.10% 9.18% 8.91% 10.58%

6.91% 9.75% 8.74%

3,278 3,155 3,096 3,068 3,135

6,316 6,203

950 1,232 1,043 1,151 951 1,982 2,102

2Q19 3Q19 4Q19 1Q20 2Q20 1H19 1H20

NII NoII

5.53%

5.29% 5.14% 5.02% 5.08%

5.41%

5.05%

Operating Income & PBT (Rp bil)

Quarterly and YoY Earnings Trend

^

ROE (shareholders’ fund)

NIM

NII & NoII (Rp bil)

^

(15)

155 101 123 305 315 298

339 310 286 621

313 255

723

568

112 90 128

148 233

228

381

117 129 67

162 37

249

199

119 101 116

112 61

226

174

107 501

325

111

49

257

160

2Q19 3Q19 4Q19 1Q20 2Q20 1H19 1H20

Recovery Income Card Related Bancassurance Gain (Loss) from MS Fee & Commission FX and Derivatives 950

1,232

1,043 1,151

951

1,982 2,102

Non Interest Income

Non Interest Income Breakdown

 QoQ NoII lower due to increasing impact of Covid-19 pandemic

 YoY NoII grew 6.1% mainly due to higher FX, Derivatives and gain from Marketable securities

 Lower Card Related, Fee & Commission, and Bancassurance due to Covid-19

(16)

Operating Expenses & Cost to Income Ratio

YTD CIR (%)

Rp bil 1Q20 2Q20 QoQ 1H19 1H20 YoY

Personnel 1,074 1,035 (3.6%) 2,045 2,109 3.1%

Other Expenses 942 933 (1.0%) 2,054 1,875 (8.7%)

Total 2,016 1,968 (2.4%) 4,099 3,984 (2.8%)

(%) 1Q20 2Q20 QoQ 1H19 1H20 YoY

Cost to Income 47.78 48.17 +39bps 49.40 47.97 -143bps

49.40%

48.92% 49.07%

47.78% 47.97%

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

(17)

3.4% 2.2% 2.2% 2.7% 2.6%

4.6% 4.3% 4.4% 4.8% 4.9%

2.3% 2.2% 2.0% 2.2% 2.5%

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

Asset Quality Management

Gross NPL (%) by Segment Asset Quality

1.8% 1.9% 2.4% 2.6% 4.6% Corporate

Commercial

SME

Consumer

Loans by Collectability (% of Total Loan)

Current Loan 88.87%

Spc Mention 8.10%

NPL 3.03%

Mar 20

Current Loan Spc Mention

3.94%

NPL 2.87%

Jun 19

Current Loan Spc Mention

5.18%

NPL 3.89%

Jun 20

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

Gross NPL 2.9% 2.6% 2.8% 3.0% 3.9%

Net NPL 1.5% 1.3% 1.3% 1.6% 1.9%

Gross Impairment Ratio 3.2% 3.1% 3.8% 4.4% 5.2%

Impaired LLC 90.1% 93.3% 82.0% 130.0% 117.7%

Loan Loss Coverage 101.2% 111.86% 113.6% 191.1% 159.4%

190.5 Rp tril

194.3 Rp tril

Rp 186.1

tril

(18)

Covid-19 Loan Restructuring as of 1H2020

18%

32%

16%

29%

5%

Corporate Commercial

SME Consumer - Non-Auto

Consumer - Auto

Restructured Loans

22,851 Rp bil

Proportion to Total Loans

5.59% 17.94% 18.12% 14.15% 19.17%

94.41% 82.06% 81.88% 85.85% 80.84%

Corporate Commercial SME Consumer - Non-Auto

Consumer - Auto Non-Restructured Loans Restructured Loans

71.63 40.45 20.13 47.42 6.46

(19)

19.38 19.96 20.20

18.14 18.76

1.21 1.25 1.27

1.25 1.21

Tier 2 Tier 1

Capital Ratios

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

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

CAR with Credit Risk 24.18 23.11 24.02

Market Risk (0.20) (0.30) (0.34)

Operational Risk (3.39) (3.42) (3.71)

Total CAR 20.59 19.39 19.97

19.97 20.59

19.39 21.21 21.47

41.52 42.28 43.29

40.03 39.72

(20)

CIMB Niaga: 1H 2020 Results

Consumer Banking

(21)

Products QoQ YoY

TOTAL (1.6%) 5.4%

(6.2%) (4.4%)

(0.5%) 4.7%

(6.9%) (2.8%)

0.1% 9.2%

Consumer Banking

Total Loans by Products (Rp tril)

51.11 54.78 53.88

Total Deposits (Rp tril)

97.43 106.89 106.55

Products QoQ YoY

TOTAL (0.4%) 9.3%

1.1% (1.1%)

(1.4%) 18.2%

31.75 34.62 34.67

8.94 9.34 8.69

6.17 6.49 6.46

4.25 4.33 4.06 Personal Loan & Others (8%)

Auto Loan (12%) Credit Card (16%) Mortgage (64%)

52.62 63.08 62.20

44.81 43.81 44.35

Jun-19 Mar-20 Jun-20

Time Deposits CASA

(22)

CIMB Niaga: 1H 2020 Results

SME Banking

(23)

SME Banking

Loans QoQ YoY

TOTAL (3.2%) (7.0%)

Total Loans (Rp tril)

21.63 20.78 20.12

Types QoQ YoY

TOTAL (0.7%) 4.9%

(25.3%) (26.8%)

13.4% 25.5%

16.34 18.08 20.50

10.60 10.39 7.76

TD CASA

26.94 28.47 28.26

21.63 20.78 20.12

(24)

CIMB Niaga: 1H 2020 Results

Commercial Banking

(25)

TOTAL (2.0%) (0.5%)

(5.9%) (8.3%)

0.6% 4.7%

11.17 11.63 11.70

7.47 7.28 6.85

TD CASA

TOTAL (8.9%) (12.8%)

(9.5%) (13.0%) (7.5%) (12.5%)

14.40 13.62 12.60

32.00 30.79 27.85

Working Capital Investment

Commercial Banking

Total Loans by Types (Rp tril) 46.41

40.45 44.40

18.64 18.92 18.55

(26)

CIMB Niaga: 1H 2020 Results

Corporate Banking

(27)

TOTAL (3.6%) 0.3%

(12.9%) (16.3%)

2.3% 12.5%

41.21 45.32 46.36

30.19 29.00 25.27

WC Investment

TOTAL 6.4% 6.8%

7.4% (22.6%)

6.0% 22.0%

Corporate Banking

29.06 29.19 31.05

Total Loans by Types (Rp tril)

71.40 74.32 71.63

19.18 22.07 23.40

9.88 7.12 7.65

TD CASA

(28)

CIMB Niaga: 1H 2020 Results

Digitalization

(29)

Digitalization Framework

Develop Internal Talents Digital talent recruitment Digital Center of Excellence Agile working method Internal talent training

Digitize Internal Processes Robotic Process Automation Optical Character Recognition Straight through processing Artificial Intelligence

Launch/Optimize Internal Apps Digital tools for sales force

Virtual learning apps Digitized workflows Build Strong Infrastructures

Enhanced Integration Platform Cloud & big data infrastructure

Best-in-class Security System Application Portfolio Management

Revamp Customer Journeys Single product related Cross-selling/up-selling Customer care Segment specific

Launch/Revive Customer Apps Octo Mobile

Octo Clicks CNAF Mobile

(30)

User Base of Digital Channels

2,402

2,606 2,772

1,762 1,860 1,923 35.0 36.8 38.6

23.0

26.4

31.6

Jun-19 Dec-19 Jun-20

28.8 30.6 32.7

Jun-19 Dec-19 Jun-20

47.9 52.9 58.2

Jun-19 Dec-19 Jun-20 15.4% YoY

37.4% YoY

9.1% YoY

13.5% YoY

10.3% YoY

21.5% YoY

(31)

CIMB Niaga: 1H 2020 Results

Syariah Banking

(32)

TOTAL 6.2% 18.6%

28.0% 64.2%

(7.3%) (4.2%)

18.09 18.69 17.33

9.08 11.64 14.90

CASA

27.96 34.48 33.93 TD

Financing

- 1.6%QoQ + 21.4% YoY

Total Financing (Rp tril)

Syariah Banking: Driven by Syariah First

Syariah PBT (Rp bil)

Total Deposits

27.17 30.33 32.23

1.22% 1.07% 1.14%

NPF

300 312 300 322 309

536

631

2Q19 3Q19 4Q19 1Q20 2Q20 1H19 1H20

+ 17.7% YoY - 4.0% QoQ

(33)

Final Remarks CEO Remarks

1H20 Financial Performance

(34)

Final Remarks

We faced challenges in the first half of the year as expected Second half of the year will still be challenging

Our main priorities are still employees health and welfare as well as business continuity of our customers

Liquidity, asset quality, and cost management are still our main focus

We continue to drive Forward23 programs particularly on customer journey,

digitalization, productivity improvement and finding new opportunities beyond Covid- 19 pandemic

We will continue to support all government efforts to revive national economy

(35)

THANK YOU

(36)

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 27 May 2020

Foreign Currency

Long Term Foreign Currency IDR Short Term Foreign Currency IDR Support Rating

Viability Rating

BBB- / Negative F3

2 bb

Fitch 27 May 2020

National Ratings National Long Term National Short Term Subordinated Bonds II

AA+(idn) / Negative 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 Jun-19 Mar-20 Jun-20

Price (Rp) 1,115 600 720

PBV (x) 0.68 0.38 0.46

PER 7.59 3.75 4.92

Share Price & Ratings

Share Price Volume

0 5,000 10,000 15,000 20,000 25,000 30,000

0 200 400 600 800 1,000 1,200 1,400

(37)

EPF PNB KWAP Khazanah

Nasional

Public

27.22% 16.30% 12.20% 6.84%

7.5% 92.5%^

99.9%

CIMB Group Holdings Berhad

Others 37.44%

94.8%

Corporate Structure as per 30 June 2020

(38)

Board of Commissioner

Didi Syafruddin Yahya*

President Commissioner

Glenn M.S. Yusuf*

Vice President Commissioner (Independent)

Jeffrey Kairupan

Independent Commissioner **

David Richard Thomas

Commissioner

Sri Widowati

Independent Commissioner

(39)

Directors

Tjioe Mei Tjuen*

Operations & IT Director Tigor M. Siahaan

President Director

Vera Handajani

Risk Management Director John Simon

Treasury & Capital Market 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

(40)

Jun-19 Mar-20 Jun-20 QoQ YoY Branch & Network

Branches* 427 390 390 - (37)

Digital Lounge 28 34 34 - 6

Mobile Branch 27 27 27 - -

Total Network 482 451 451 - (31)

Electronic Channels

ATM 4,505 4,486 4,499 13 (6)

CDM & CRM 941 929 924 (5) (17)

EDC & QR 103,189 252,958 273,331 20,373 170,142

Employees

Bank only 12,382 12,100 12,185 85 (197)

CNAF 874 891 842 (49) (32)

CNS 19 22 24 2 5

Total Employees 13,275 13,013 13,051 38 (224)

Network & Distribution Channel

(41)

Notable Awards

CRM & Vending

Bank Service Exellence Monitor (BSEM) 2020 from Infobank & Marketing

Research Indonesia CRM 2020 awards

(Jul 2020)

• Corporate & Investment Bank of the Year – Indonesia

• Syndicated Loan of the Year – Indonesia

• Project Infrastructure Finance Deal of the Year – Indonesia

Corporate & Investment Banking Awards 2020

(Jul 2020)

The Most Helpful Bank during Covid-19 Rank #1 in Indonesia

Rank #10 in Asia Pacific The Asian Banker Awards

(Jul 2020)

20 Pilar Financial Indonesia Award (Jul 2020)

For:

&

Top 3 Indonesia Public Listed Companies ACGS awards

(Jun 2020)

(42)

Corporate Social Responsibility 2Q 2020

Mask N95 400 pcs APD4,500 pcs

Cover shoes 3,000 pcs APD Donation Part 1^st

RSUI (9 April 2020) RS Marinir (13 April 2020)

APD Donation Part 2^nd RSUI (27 April 2020) RS Polri (27 April 2020) RS Marinir (28 April 2020) RS Mintohardjo (28 April 2020)

APD Donation Part 3^rd RS Marinir (12 May 2020) RS PELNI Petamburan (13 May 2020)

RSUD Koja (13 May 2020) APD Donation Part 4^th RS Marinir (12 June 2020)

APD Donation Part 5^th RS Marinir (20 July 2020)

RSUD Koja (20 July 2020)

RAMADHAN DONATION – COVID-19 200 Food Groceries Package

9 Cities – Jakarta, Tangerang, Bandung, Cirebon, Semarang, Surabaya, Malang, Yogyakarta dan Makassar FUND RAISING

CIMB NIAGA PEDULI Rp 284,312,610.- 1^stApril – 30^thJune 2020 Distribution of Fund Raising – CIMB NIAGA PEDULI

RSUI (19^th May & 5^th June 2020) Yayasan Anak Bangsa Bisa (YABB) (20^thMay 2020)