20240512_BNGA_Laporan Informasi dan Fakta Material_31637767_lamp1.pdf

modest loan growth. The bank's tangible common equity as a percentage of risk-
weighted assets will remain strong at around 17%-18% despite its expected 50%
dividend payout in 2024.
CIMB Niaga's loan quality improved over the recent quarters, with its stage 3 ratio
declining to 4.2% as of the first quarter (Q1) 2024 from 5.8% a year-earlier. Its
reported loans-at-risk (LAR), measured by nonperforming loans, special mention
loans and restructured loans classified as current, have decreased to 10.9% from
13.9% over the same period. Moody's expects the bank's asset quality to remain
stable in 2024, with a continued recovery in restructured loans in line with the
country's improving operating environment.
The bank's profitability, as measured by return on tangible assets, improved to 2.1%
in Q1 2024 from 1.9% in the year-earlier period underpinned by lower provisioning
costs that more than offset its net interest margin compression. Moody's expects the
bank's profitability to decline mildly but remain strong over the next 12-18 months,
with continued pressure on funding costs with the recent policy rate hike by Bank
Indonesia in April 2024, balanced by its focus on higher yielding small and medium
enterprise and consumer segments, as well as low provisioning and operating costs.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE
RATINGS
Moody's could upgrade CIMB Niaga's ratings if CIMB Group's ability to provide
support improves. An upgrade of CIMB Niaga's BCA would likely depend on a
significant strengthening of its franchise, as well as improvements in its credit metrics
including asset quality, profitability and funding.
Moody's could downgrade CIMB Niaga's ratings if CIMB Group's willingness or
capacity to provide support reduces. CIMB Niaga's BCA could be downgraded if the
bank's gross impaired loan ratio increases to above 8.0%, its tangible common
equity/risk-weighted assets ratio decreases to below 14.0% and its net
income/tangible assets ratio decreases to below 1.3%.
The principal methodology used in these ratings was Banks Methodology published in
March 2024 and available at https://ratings.moodys.com/rmc-documents/409852 .
Alternatively, please see the Rating Methodologies page on
https://ratings.moodys.com for a copy of this methodology.
PT Bank CIMB Niaga Tbk (CIMB Niaga) is headquartered in Jakarta and reported
total assets of IDR332.9 trillion as of 31 March 2024.
REGULATORY DISCLOSURES
For further specification of Moody's key rating assumptions and sensitivity analysis,
see the sections Methodology Assumptions and Sensitivity to Assumptions in the
disclosure form. Moody's Rating Symbols and Definitions can be found on

https://ratings.moodys.com/rating-definitions .
For ratings issued on a program, series, category/class of debt or security this
announcement provides certain regulatory disclosures in relation to each rating of a
subsequently issued bond or note of the same series, category/class of debt, security
or pursuant to a program for which the ratings are derived exclusively from existing
ratings in accordance with Moody's rating practices. For ratings issued on a support
provider, this announcement provides certain regulatory disclosures in relation to the
credit rating action on the support provider and in relation to each particular credit
rating action for securities that derive their credit ratings from the support provider's
credit rating. For provisional ratings, this announcement provides certain regulatory
disclosures in relation to the provisional rating assigned, and in relation to a definitive
rating that may be assigned subsequent to the final issuance of the debt, in each case
where the transaction structure and terms have not changed prior to the assignment
of the definitive rating in a manner that would have affected the rating. For further
information please see the issuer/deal page for the respective issuer on
https://ratings.moodys.com.
For any affected securities or rated entities receiving direct credit support from the
primary entity(ies) of this credit rating action, and whose ratings may change as a
result of this credit rating action, the associated regulatory disclosures will be those of
the guarantor entity. Exceptions to this approach exist for the following disclosures, if
applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure
from rated entity.
These ratings are solicited. Please refer to Moody's Policy for Designating and
Assigning Unsolicited Credit Ratings available on its website
https://ratings.moodys.com.
Regulatory disclosures contained in this press release apply to the credit rating and, if
applicable, the related rating outlook or rating review.
The Global Scale Credit Rating(s) discussed in this Credit Rating Announcement
was(were) issued by one of Moody's affiliates outside the EU and UK and is(are)
endorsed for use in the EU and UK in accordance with the EU and UK CRA
Regulation.
Please see https://ratings.moodys.com for any updates on changes to the lead rating
analyst and to the Moody's legal entity that has issued the rating.
Please see the issuer/deal page on https://ratings.moodys.com for additional
regulatory disclosures for each credit rating.
Clarabelle Tan
Analyst
Financial Institutions Group

Moody's Investors Service Singapore Pte. Ltd.
71 Robinson Road #05-01/02
Singapore, 068895
Singapore
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077
Patrick Winsbury
Associate Managing Director
Financial Institutions Group
JOURNALISTS: 61 2 9270 8141
Client Service: 852 3551 3077
Releasing Office:
Moody's Investors Service Singapore Pte. Ltd.
71 Robinson Road #05-01/02
Singapore, 068895
Singapore
JOURNALISTS: 852 3758 1350
Client Service: 852 3551 3077




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