Analyst Presentation Full Year 2016 Results (Audited) Presentation Full Year 2016 Results (Audited) Jakarta 20 February 2017

Analyst Presentation Full Year 2016 Results (Audited)

Jakarta

20 February 2017

2

Key Highlights

* Excludes MSS cost (Rp 571 bio) in FY15 Excludes one-off fee income (Rp 276 bio) in FY16

Steady operating income growth from improved net interest income and better capital

markets

Gross loans grew by a respectable 1.6% YoY considering the soft environment

Deposits grew steadily with CASA growing strongly at 9.9% YoY, achieving a CASA ratio

of 50.84%

NIM improved 43 bps YoY to 5.64% with improved liability management

Operating expenses remain under control, growing 1.9% YoY*, below inflation

Loan provision 7.2% lower YoY but remains elevated given the economic environment

FY16 BAU PBT* increased 126% YoY to Rp 2,575 billion

Continue strengthening in capital position with CAR rising 168 bps YoY to 17.96%

CIMB Niaga: FY 2016 Results Financial Results

4

Income Statement - Consolidated

(Rp bil) 3Q16

4Q16 BAU*

QoQ FY15 BAU^

FY16 BAU*

YoY

Interest Income 5,379 5,330 -0.9% 22,319 21,325 -4.5%

Interest Expense (2,305) (2,123) -7.9% (10,933) (9,231) -15.6%

Net Interest Income 3,074 3,207 4.3% 11,386 12,094 6.2%

Non Interest Income 775 583 -24.8% 2,350 2,822 20.1%

Operating Income 3,849 3,790 -1.5% 13,736 14,916 8.6%

Operating Expenses (1,874) (1,825) -2.6% (7,234) (7,368) 1.9%

GA & Promotion Expenses (1,014) (964) -4.9% (3,816) (3,896) 2.1%

Personnel Expenses (860) (861) 0.1% (3,418) (3,472) 1.6%

Pre Provision Operating Profit 1,975 1,965 -0.5% 6,502 7,548 16.0%

Provision Expenses (1,216) (1,195) -1.7% (5,361) (4,973) -7.2%

PBT (BAU) 760 770 1.3% 1,141 2,575 125.7%

Net Profit (BAU) 563 576 2.3% 856 1,875 119.0%

EPS (Rp, full amount) 22.39 22.92 2.4% 34.07 74.60 119.0%

PBT (Actual) 760 1,046 37.6% 570 2,851 400.2%

Net Profit (Actual) 563 783 39.1% 428 2,082 386.4%

* BAU excludes one-off fee income Rp 276 bio ^ BAU excludes MSS cost Rp 571 bio

5

Financial Position - Consolidated

(Rp tril) Dec-15 Sep-16 Dec-16 QoQ YoY

Cash & Short Term Funds 27.09 22.65 22.67 0.1% -16.3%

Govt Bonds & Marketable Securities 25.91 29.20 27.56 -5.6% 6.4%

Loans 177.36 174.08 180.16 3.5% 1.6%

Loan Provision (7.40) (7.74) (8.13) 5.0% 9.9%

Fixed & Other Assets 15.89 18.93 19.31 2.0% 21.5%

Total Assets 238.85 237.12 241.57 1.9% 1.1%

Current Account 40.44 45.82 44.60 -2.7% 10.3%

Saving Account 43.12 48.12 47.21 -1.9% 9.5%

Time Deposit & Structured Deposit 94.97 84.73 88.76 4.8% -6.5%

Total Customer Deposits 178.53 178.67 180.57 1.1% 1.1%

Other Liabilities 31.64 24.90 26.79 7.6% -15.3%

Total Liabilities 210.17 203.57 207.36 1.9% -1.3%

Equity 28.68 33.55 34.21 1.9% 19.3%

6

Key Ratios

(%) 3Q16 4Q16 BAU*

QoQ FY15 BAU^

FY16 BAU*

YoY

ROA 1.27 1.30 0.47 1.09

ROE (shareholders’ fund) 6.77 6.81 2.99 5.81

NIM 5.67 5.91 5.21 5.64

Fee Income / Total Income 20.14 15.36 17.11 18.91

Cost to Income (CIR) 48.69 48.14 52.67 49.40

CASA Ratio 52.58 50.84 46.81 50.84

Loan to Deposit (LDR) 96.07 98.38 97.98 98.38

Gross NPL 4.21 3.89 3.74 3.89

Net NPL 2.39 2.16 1.59 2.16

Cost of Credit 2.62 2.63 3.02 2.73

Gross Impairment Ratio 5.20 5.24 5.03 5.24

Loan Loss Coverage 107.00 117.68 111.53 117.68

Impaired LLC 85.47 86.08 82.99 86.08


7

(Rp bil)

Quarterly Earnings Trend

3,476 3,553 3,724

3,849 3,790

293 390 655 760 770

238 269 467 563 576

3.34% 3.61%

5.72% 6.77% 6.81%

4Q15 BAU^ 1Q16 2Q16 3Q16 4Q16 BAU*

Operating Income PBT Net Profit ROE (shareholders' fund)


8

NIM continues to widen

Retail 39%

Commercial 9%

MSME 17%

Corporate 15%

Treasury 20%

5.21% 5.35%

5.47% 5.54% 5.64%

Dec-15 Mar-16 Jun-16 Sep-16 Dec-16

Net Interest Margin (%, YTD Annualized)

Net Interest Income Breakdown (incl. FTP)

Net Interest Income

FY15: Rp 11,386 billion

FY16: Rp 12,094 billion

Quarterly Annualized NIM

4Q15 1Q16 2Q16 3Q16 4Q16

5.25% 5.35% 5.62% 5.67% 5.91%

9

Non Interest Income (Rp bil) FY15 FY16* YoY

195 172 -11.8%

45 76 68.9%

169 148 -12.4%

250 673 169.2%

1,691 1,753 3.7%

Bancassurance 672 570 -15.2%

Funding & Admin Fee 316 338 7.0%

Remittance 130 107 -17.7%

Card Related 324 389 20.1%

Other Fees & Commissions 249 349 40.2%

Total 2,350 2,822 20.1%

NoII – Quarterly

614 716 748 775

583

4Q15 1Q16 2Q16 3Q16 4Q16*

1,691 1,753

250

673 169

148

45

76

195

172

FY15 FY16*

Recovery

Arranger & Syndication Fees

Trans. Banking & Trade Fin

Forex & Fixed Income Derivatives

Fees & Commissions

Non Interest Income Breakdown

2,822 2,350

* BAU excludes one-off fee income Rp 276 bio

10

Operating Expenses & Cost to Income Ratio

Rp bil 3Q16 4Q16 QoQ FY15 BAU^

FY16 YoY

Advertising & Promotion 71 65 -8.5% 315 273 -13.3%

General & Admin. 943 899 -4.7% 3,501 3,623 3.5%

Personnel 860 861 0.1% 3,418 3,472 1.6%

Total 1,874 1,825 -2.6% 7,234 7,368 1.9%

Total (Actual) 1,874 1,825 -2.6% 7,805 7,368 -5.6%

(%) 3Q16 4Q16 BAU*

QoQ FY15 BAU^

FY16 BAU*

YoY

Cost to Income 48.69 48.14 -0.55 52.67 49.40 -3.27

Cost to Income (Actual) 48.69 44.88 -3.81 56.82 48.50 -8.32

52.67% 51.27% 50.42% 49.82% 49.40%

Dec-15^ Mar-16 Jun-16 Sep-16 Dec-16*

YTD Cost to IncomeRatio

YTD CIR (%)


11

Loans Growth

(1) Others include Staff loan Industry source: Indonesia Banking Statistics

Segment (Rp tril) Dec 15 Sep 16 Dec 16 QoQ YoY

Consumer Banking (29%) 51.98 51.01 51.42 0.8% -1.1%

Mortgages 23.27 23.43 23.90 2.0% 2.7%

Auto Loans 18.57 15.53 14.81 -4.6% -20.2%

Credit Cards 6.37 7.83 8.24 5.2% 29.4%

Personal, Multipurpose & Others (1) 3.77 4.22 4.47 5.9% 18.6%

MSME Banking (19%) 34.18 33.04 34.51 4.4% 1.0%

Small Medium 22.84 23.47 24.88 6.0% 8.9%

Micro Linkage & Others 9.06 8.71 8.97 3.0% -1.0%

Micro Finance 2.28 0.86 0.66 -23.3% -71.1%

Commercial Banking (18%) 34.25 32.60 33.22 1.9% -3.0%

Corporate Banking (34%) 56.95 57.43 61.01 6.2% 7.1%

Total (100%) 177.36 174.08 180.16 3.5% 1.6%

Industry 4,058 4,212 4,377 3.9% 7.9%

12

Asset Quality Management

111.53% 116.09% 120.90% 107.00%

117.68%

82.99% 91.04% 95.58% 85.47% 86.08%


Loan Loss Coverage Impaired LLC

Loans by Collectability (% of Total Loan)

Coverage Ratio

Current 88.10%

Special Mention

8.16%

NPL 3.74%

Dec-15

Current 88.31%

Special Mention

7.48%

NPL 4.21%

Sep-16

Asset Quality

Current 89.51%

Special Mention

6.60%

NPL 3.89%

Dec-16

5.03% 4.97% 4.94% 5.20% 5.24%

3.74% 3.90% 3.90% 4.21% 3.89%

1.59% 1.91% 1.93% 2.39% 2.16%


Gross Impairment Ratio Gross NPL Net NPL

13

Asset Quality by Business Segment

Gross NPL (%)

4.5% 4.6% 4.2% 4.0% 3.3%

6.0% 6.6% 6.1% 7.4% 6.8%

1.9% 2.0% 2.5% 2.5% 2.7%


2.9% 3.2% 3.2% 3.7% 3.7%

Corporate

Commercial

MSME

Consumer

14

Steady Savings Growth

Rp tril Dec-15 Sep-16 Dec-16 QoQ YoY

CASA 83.56 93.94 91.81 -2.3% 9.9%

Current Account 40.44 45.82 44.60 -2.7% 10.3%

Saving Account 43.12 48.12 47.21 -1.9% 9.5%

Time Deposits & Structured Deposits

94.97 84.73 88.76 4.8% -6.5%

Total 178.53 178.67 180.57 1.1% 1.1%

Industry 4,413 4,605 4,837 5.0% 9.6%

CASA 2,384 2,499 2,676 7.1% 12.2%

Time Deposits 2,030 2,106 2,161 2.6% 6.5%

Industry source: Indonesia Banking Statistics

15

Improved Capital base

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

Capital Adequacy Ratio (%) Dec-15 Sep-16 Dec-16

CAR with Credit Risk 18.82 21.13 20.78

Market Risk (0.15) (0.19) (0.15)

Operational Risk (2.39) (2.80) (2.67)

Total CAR 16.28 18.14 17.96

14.20 16.01 15.96 16.56 16.44

2.08

2.00 1.66 1.58 1.52

Dec-15 Mar-16 Jun-16 Sep-16 Dec 16

Tier 1 Tier 2

16.28

17.62 18.14 18.01

28.68

32.45 32.86 33.55 34.21


17.96

CIMB Niaga: FY 2016 Results Consumer Banking

17

Consumer Loans by Products

Growth (Composition)

QoQ YoY

Total 0.8% -1.1%

5.9% 18.6%

5.2% 29.4%

-4.6% -20.2%

2.0% 2.7%

Total Loans

23.27 23.43 23.90

18.57 15.53 14.81

6.37 7.83 8.24

3.77 4.22 4.47

Dec-15 Sep-16 Dec-16

Personal, Multipurpose& Others (9%)

Credit Cards (16%)

Auto Loans (29%)

Mortgage (46%)

51.98 51.01

(Rp tril)

51.42

18

Mortgages

Total Loans

Market Share

Mortgage Lender Sep 16

BTN 33.7%

BCA 17.5%

BNI 10.3%

Mandiri 7.9%

CIMB Niaga 6.6%

2.2% 2.7% 2.5%


23.27 23.43

23.90


(Rp tril)

6.8% 6.6% 6.6%

NPL Ratio

Market Share

+2.7% YoY

* As of Nov-16 Industry Source: Indonesia Banking Statistics

+2.0% QoQ

*

19

Auto Loans – Consolidating

(Rp tril)

Growth QoQ YoY

Total -4.6% -20.2%

725.0% -30.5%

-16.8% -47.2%

-7.8% -17.0%

Total Loans

NPL Ratio

16.03 14.44

13.31

1.59

1.01

0.84

0.95

0.08

0.66

1.9% 3.1% 3.2%


Indirect Auto Loans

Direct Loans

18.57 15.53 14.81

20

Unsecured business

2,001

2,178 2,263


Number of Credit Cards Outstanding Balance

(thou) (Rp tril)

• Market share based on card issued (source: Bank Indonesia)

+3.9% QoQ

+13.1% YoY

Dec-16

# Bank Card Mkt Share

1 BCA xx%

2 Mandiri xx%

3 CIMBN 13%

6.37 7.83 8.24

3.77 4.22 4.47

1.4% 1.4% 2.4%

-7.0%

-5.0%

-3.0%

-1.0%

1.0%


Credit Card

Personal Loan

NPL - unsecured business

10.14

12.05 12.71 +5.4% QoQ

+25.3% YoY

CIMB Niaga: FY 2016 Results MSME Banking

22

MSME Loans

Growth QoQ YoY

Total 4.4% 1.0%

-23.3% -71.1%

3.0% -1.0%

6.0% 8.9%

Total Loans

22.84 23.47 24.88

9.06 8.71 8.97

2.28 0.86 0.66


Micro Finance

Micro Linkage & others

Small Medium

34.18 33.04 34.51

(Rp tril)

CIMB Niaga: FY 2016 Results Commercial Banking

24

Commercial Loans

Growth QoQ YoY

Total 1.9% -3.0%

4.7% -6.0%

-1.4% 1.1%

Total Loans (Composition)

14.39 (42%)

14.76 (45%)

14.55 (44%)

19.86 (58%)

17.84 (55%)

18.67 (56%)


Working Capital

Investment

34.25 32.60 33.22

(Rp tril)

CIMB Niaga: FY 2016 Results Corporate Banking

26

Corporate Portfolio

Growth QoQ YoY

Total 6.2% 7.1%

7.9% 4.7%

4.7% 9.5%

28.97 (51%)

30.29 (53%)

31.72 (52%)

27.98 (49%)

27.14 (47%)

29.29 (48%)


Working Capital

Investment

Total Loans (Composition)

(Rp tril)

56.95 57.43 61.01

CIMB Niaga: FY 2016 Results Syariah Banking

28

7.28 8.13

10.21


Syariah Banking

Total Deposits

(Rp tril)

7.58

9.29 10.63


Total Financing

(Rp tril) +40.2% YoY

+14.4% QoQ

+40.2% YoY

+25.6% QoQ

CIMB Niaga: FY 2016 Results Final Remarks

30

Final Remarks

Economic environment and competitive landscape expected to continue in 2017

CIMB Niaga will continue to adopt cautious growth approach, with sustained focus

on improving asset quality

Strengthening CASA, cost management and capital optimisation

Leverage digital strategy to enhance cross sell and broaden customer base

Repositioning our auto business model in 2017

SME and Consumer banking will be the key drivers for growth

31

THANK YOU

CIMB Niaga: FY 2016 Results Appendices

33

Corporate Structure – 31 December 2016

* Only direct stake held via BTMU ^ Includes PT Commerce Kapital 1.02% # Effective 30 August 2016, CIMB Group has transferred 5.44% shares ownership of CIMB Niaga to public in compliance with 7.5% free float shares as set out in IDX rule No.I-A

EPF KWAP MUFG Others Khazanah Nasional

Public

29.3% 16.1% 4.1% 4.7%* 45.8%

99.9%

7.5% 92.5%^

99.9%

CIMB Group Holdings Berhad

CIMB Group Sdn Bhd

34

Board of Commissioners

Dato’ Sri Nazir Razak

President Commissioner

Glenn M.S. Yusuf

Vice President Commissioner

Zulkifli M. Ali

Independent Commissioner

Pri Notowidigdo


Armida Salsiah Alisjahbana


Jeffrey Kairupan


David Richard Thomas

Commissioner

Ahmad Zulqarnain Onn

Commissioner

35

Directors

Tigor M. Siahaan

President Director

Wan Razly Abdullah

Strategy & Finance Director

Rita Mas’Oen

Operations & IT Director

Megawati Sutanto

Credit Director

Vera Handajani

Risk Management Director

Lani Darmawan

Consumer Banking Director

Pandji Pratama Djajanegara

Syariah Banking Director

John Simon

Treasury & Capital Market Director

Hedy Maria Helena Lapian

Human Resources Director

Fransiska Oei

Compliance, Corp Affairs & Legal

Director

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

5th in terms of Asset

Assets (Rp trillion)

Source: Published Financial Statement by Bank Indonesia as of Nov-16, Bank only # Industry as of Nov-16

926 886

650

536

233 198 182 175 152 140

BRI Mandiri BCA BNI CIMBN BTN Panin Permata Maybank Danamon

Market Share# 14.1% 13.5% 9.9% 8.1% 3.5% 3.0% 2.8% 2.7% 2.3% 2.1%

Top 10 banks control 62.0% of industry’s Asset

38

Maintained position as the 5th largest bank

693 644

518

390

178 148 135 133 115 101

BRI Mandiri BCA BNI CIMBN BTN Permata Panin Maybank Danamon

627 575

390 363

169 158 120 107 105 95

BRI Mandiri BCA BNI CIMBN BTN Panin Permata Maybank Danamon

Loans (Rp trillion) Customer Deposits (Rp trillion)

Top 10 banks control 63.2% of industry’s loans Top 10 banks control 64.5% of industry’s deposits

Source: Published Financial Statement by Bank Indonesia as of Nov -16; Bank only * Branches exclude Micro, Cash Counters, Payment Point & Mobile Cash; Danamon incl. Danamon Simpan Pinjam (DSP); Panin as of Dec-15

14.6% 13.4% 9.1% 8.5% 3.9% 3.7% 2.8% 2.5% 2.5% 2.2% 14.6% 13.6% 10.9% 8.2% 3.8% 3.1% 2.9% 2.8% 2.4% 2.1% Market Share#

Branches* (Sep-16)

23,695

17,461 17,057 16,525

3,704 1,830 1,641 1,521 1,023 1,012

BRI Mandiri BCA BNI CIMBN BTN Danamon Maybank Panin Permata

ATM~ (Sep-16)

1,288 1,257 1,204 1,118 1,073

566 528 407 347 309

Mandiri Danamon BCA BNI BRI Panin CIMBN Maybank BTN Permata

# Industry as of Nov-16 ~ ATM Danamon per Jun 2016

39

Network & Distribution Channel

Dec-15 Sep-16 Dec-16 QoQ YoY

Branch & Network

Branches* 553 528 521 -7 -32

Payment & Cash Point 65 54 54 - -11

Digital Lounge 22 21 22 1 -

Mikro Laju 188 95 39 -56 -149

Mobile Cash 20 20 20 - -

Total Network 826 697 634 -63 -192

Electronic Channels

ATM 3,365 3,704 3,865 161 500

CDM 715 750 769 19 54

MFD** 203 187 189 2 -14

Employees 13,577 13,069 13,185 116 -392

* Branches exclude Mikro Laju, Payment & Cash Point; include SME centers ** MFD (previously was SST) stands for Multi Function Device

40

Share Price and Ratings

Rating Agencies Rating / Outlook

Moody’s 4 Jul 2016

Outlook

Bank Deposits

Baseline Credit Assessment

Adj. Baseline Credit Assessment

Issuer Rating

Stable

Baa3/P-3

ba2

baa3

Baa3

Fitch 25 Nov 2016

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

BBB / Stable F3 2 bb

Fitch 31 Mar 2016

National Ratings National Long Term National Short Term Rupiah Subordinated Bonds Rupiah Senior Bond Program 1 2012 Rupiah Senior Bond Prg. 1 tranche 1 & 2

AAA(idn) / Stable F1+(idn) AA(idn) AAA(idn) AAA(idn)

Pefindo 23 Aug 2016

Corporate Rating Senior Bond Rating Shelf Registration Bond Rating

idAAA idAAA idAAA

Share Price & Trading Volume

BNGA Dec-15 Mar-16 Jun-16 Sep-16 Dec-16

Price (Rp) 595 575 525 830 845

PBV (x) 0.54 0.45 0.40 0.62 0.62

PER 31.99 23.54 13.36 14.27 10.20

41

Notable Awards in FY 2016

Market Conduct Awards 2015 as Financial Service Institution who implement principles for Customer Protection

Best Electronic Banking Implementation, Best Trade Finance Solution & Best Service Provider Cash Management - Best The Asset Triple A Treasury, Trade, and Risk Management Award 2016

The 8th IICD CG Award 2016

The Best Sharia Finance 2016

Excellence in Provision of Literacy & Education Award - The 8th Annual Global CSR Summit and Awards 2016

The Best Trade Finance Bank in Indonesia

Best Credit Card Product in Indonesia

42

Launching E-Samsat Online on November 14th, 2016 at Gedung Sate Bandung

CIMB Niaga held Drama Musikal Khatulistiwa“Jejak Langkah Negeriku” in order to promote nationalism among the young generation through a Musical Play Khatulistiwa and launch of CIMB Niaga Second Tourism Sponsorship Bus for Jakarta. The event was held on 18-20 November 2016

Launching of CIMB Niaga IB Wakaf on December 13th, 2016 at M Floor Graha CIMB Niaga-Jakarta

CIMB Niaga Scholarship Inauguration on December 16th, 2016 at Phoenix Hotel-Yogyakarta

Corporate Activities in 4Q 2016

THANK YOU

PT Bank CIMB Niaga Tbk Investor Relations Menara Sentraya 31st Floor Jl. Iskandarsyah Raya I A Jakarta 12160 Tel. : (62-21) 270 0555 Fax. : (62-21) 250 5205 Email : [email protected]

www.cimbniaga.com

Analyst Presentation Full Year 2016 Results (Audited) Presentation Full Year 2016 Results (Audited) Jakarta 20 February 2017

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