PT Bank Mandiri (Persero) Tbk · IDX:BMRI

PT Bank Mandiri (Persero) Tbk — Q3 2006 Earnings Presentation

96 slides from PT Bank Mandiri (Persero) Tbk's earnings presentation, October 2006

  1. Slide 1: PT Bank Mandiri (Persero) Tbk Q3 2006 Results Presentation

    PT Bank Mandiri (Persero) Tbk Q3 2006 Results Presentation 0

  2. Slide 2: Share Information

    Share Information Shareholders as of 30 Sep. 2006 2,500 Description Investors Shares % 2,250 BMRI DOMESTIC JCI 2,000 1. Government 1 14,000,000,000 68.9% 1,750 2. Retail 7,031 322,171,500 1.6% 1,500 3. Employees 8,510 67,725,716 0.3% 4. Pension Funds 84 73,029,000 0.4% 1,250 5. Assurance/Bank 24 70,

  3. Slide 3: Bank Mandiri Presentation Contents

    Bank Mandiri Presentation Contents Results Results Overview Overview Page Page ## Financial Financial Summary Summary Page Page ## „ 99 Month „ Month 2006 2006 Summary Summary Financials Financials 22 -- 33 „ „ Summary Summary Balance Balance Sheets Sheets && P&L P&L 39 39 -- 40 40 „ Quarterly „ Qua

  4. Slide 4: Key Quarterly Balance Sheet Items & Financial Ratios

    Key Quarterly Balance Sheet Items & Financial Ratios IDR billion / % Q3 2005 Q2 2006 Q3 2006 YoY Change (%) Gross Loans 106,867 107,828 108,796 1.8 Government Bonds 92,267 92,338 90,958 (1.4) Total Assets 250,341 255,278 253,713 1.3 Customer Deposits 186,450 197,027 194,473 4.3 Total Equity 23,564 2

  5. Slide 5: Summary P&L Information – 9 Mo. 2005 vs. 9 Mo. 2006

    Summary P&L Information – 9 Mo. 2005 vs. 9 Mo. 2006 9 Months 2005 9 Months 2006 YoY Change % of % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets (%) Interest Income 14,989 8.0 19,827 10.3 32.3 Interest Expense (8,092) (4.3) (12,350) (6.4) 52.6 Net Interest Income 6,897 3.7 7,477 3.9 8.4 Other O

  6. Slide 6: Quarterly Asset Mix & Interest Source

    4 As a % of Total Interest Income 44.1% 42.8% 54.0 108.8 91.0 Q3 '06 47.1% 40.6% 55.1 107.8 92.3 Q2 '06 57.6 105.1 92.2 Q1 '06 40.9% 50.0% 64.5 106.9 92.1 Q4 '05 Total assets rose by 1.3% Y-o-Y but fell 0.6% Q-o-Q 51.4 106.9 92.3 Q3 '05 41.4% 50.6% Other Assets 60.2 104.0 92.5 Q2 '05 56.6 99.5 93.2

  7. Slide 7: Loan volume grew Q-o-Q in Corporate, Small & Consumer

    Loan volume grew Q-o-Q in Corporate, Small & Consumer Quarterly Loan Data – Consolidated Quarterly Loan Segment Details – Bank Only 56.8% 55.9% Loans (Rp tn) 40.6 Corporate 42.3 44.0 44.7 45.2 45.7 40.2 LDR (%) 38.2 39.5 47.9%53.7% 51.8% 42.5% 37.7 36.1% 35.1 35.7 32.9 35.4% Commercial 31.4 33.0 32.

  8. Slide 8: Consumer lending rose 6.8% Y-o-Y on Mortgage growth

    Consumer lending rose 6.8% Y-o-Y on Mortgage growth Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type 12,000 Other Growth (%) 959 1,231 876 1,241 Cash Collateral Loans Loan Type 888 1,367 792 1,279 688 1,354 Credit Cards Y-o-Y Q-o-Q 653 1,257 Payroll Loans 10,000 Home Equity Loan

  9. Slide 9: Recap Bond Portfolio dropped to Rp91.0 tn on sale of VR Bonds

    Recap Bond Portfolio dropped to Rp91.0 tn on sale of VR Bonds At Fair Value, Sep. Trading AFS HTM 2006 (Rp tn) (Mark to Market#) (Nominal Value) Total % of Total (Mark to Market*) Fixed Rate 0.6 2.1 1.4 4.1 4.5% Variable Rate 0.2 26.9 59.7 86.8 95.5% Hedge Bonds - - - - - Total 0.8 29.0 61.1 91.0 %

  10. Slide 10: Savings up 4.1% in Q3 while Rp & FX Time deposits fall

    Savings up 4.1% in Q3 while Rp & FX Time deposits fall Rp5.1tn Deposit Analysis – Bank Only Retail Deposits (%) Low-Cost Deposits (%) 200 15.7 180 15.9 15.1 13.4 23.4 21.5 17.8 20.6 20.6 19.4 18.6 93.2 18.0 17.3 13.3 16.3 90.8 89.1 85.7 16.5 13.8 12.5 11.6 105.1 106.9 160 11.1 107.7 106.1 96.7 79.8

  11. Slide 11: Savings deposit volume surged by Rp1.9 tn in Q3

    Savings deposit volume surged by Rp1.9 tn in Q3 Savings Deposit Growth Average Quarterly Deposit Costs (%) Savings Deposits (Rp tn) 17.1% As % of Total Deposits Rp DD National Share of Savings Deposits (%) Rp Savings 17.0% 13.9% Rp TD 1 Mo. SBIs 11.9% 11.9% SBI 13.1% TD 30.6% 10.6% 8.5% 11.4% 10.9%

  12. Slide 12: Rapid expansion in ATM transfer and payment transactions

    10 92.6 285.0 Q3 '06 81.5 256.2 75.3 242.0 Q1 '06 43.9 234.4 Rapid expansion in ATM transfer and payment transactions 62.3 218.7 Q3 '05 53.2 201.6 46.1 186.8 Q1 '05 ATM Average Daily Transaction Value 37.7 176.2 29.2 146.8 Q3 '04 20.1 113.2 17.2 95.6 Q1 '04 98.0 97.4 Q3 '03 88.3 65.6 Q1 '03 Avg Dail

  13. Slide 13: Growth in other channels shows the strength of our franchise

    Growth in other channels shows the strength of our franchise Users for Other e-Banking Services Average Daily Transactions for SMS & Call Centers 5,368 10,142 Debit Cards Issued* (000) 5,024 SMS Trans. (000) SMS Subs. (000) 4,702 Call Center Trans. (000) Internet Bank. Subs. (000) 4,429 8,233 4,118

  14. Slide 14: Margins rise to 4.6% on improving Cost of Funds

    Margins rise to 4.6% on improving Cost of Funds All figures - Bank Only 13.9%13.6% 13.5% 13.0% 13.0% 13.0% 12.6%12.8% 12.3% 2.1% 2.0% 11.9% 11.8% 11.8% 2.5% 11.5% 11.4%11.6% 1.7% 2.2% 2.2% 2.2% 11.3% 1.5% 1.1% 10.9% 10.7% 1.8% 11.8%11.6% 10.4% 0.8% 2.2% 0.8% 2.5% 11.2%11.1%11.1% 11.0%10.8% 9.5% 9.3%

  15. Slide 15: Quarterly Margin Analysis by Currency

    13 5.4% 4.9% 4.1% Q3 '06 Avg USD 1Mo SIBOR 0.9% 1.6% -0.8% Q1 '06 Avg Bond Yield Avg Loan Yield -0.2% 0.1% Q3 '05 Avg Spread Avg COF 1.3% Q1 '05 Quarterly Foreign Currency Margins 2.5% 7.3% 3.5% 3.4% 2.9% Q3 '04 3.0% 2.2% Q1 '04 5.6% 1.4% 3.1% Q3 '03 1.4% 3.0% Q1 '03 0.6% 7.6% 2.9% Q3 '02 1.6% 1.0%

  16. Slide 16: Non-loan Related Fees & Commissions jump on Subsidiaries

    Non-loan Related Fees & Commissions jump on Subsidiaries Non-loan related fees & commissions Details of Q3 2005 & 2006 Credit Cards % of Operating Income* Transfer, Coll., Clearing & Bank Ref. Non-Loan Q3 Q3 Y-o-Y Opening L/C & Bank Guarantees Related Fees & Fee from Subsidiaries Commissions 2005 20

  17. Slide 17: Cost to Income Ratio falls further to 45.9% on restrained G&A

    Cost to Income Ratio falls further to 45.9% on restrained G&A Quarterly Consolidated Operating Expenses & CIR Breakdown of Q3 2005 & 2006 Operating Expenses 83.3% Change Q3 ‘05 Q3 ‘06 CIR* (%) (Y-o-Y) Annual Avg CIR (%) Personnel Expenses 57.6% Base Salary 262,460 261,181 (0.5%) Other Allowances 290

  18. Slide 18: Q3 2006 Loan Movement, PL & NPL

    Q3 2006 Loan Movement, PL & NPL Performing Loan Movements (Rp bn) - Bank Only Non-Performing Loan Movements (Rp bn) – Bank Only 64 74,605 73,614 221 1,256 2,090 274 26,469 221 1,256 236 1,160 58 26,248 Beg. Balance U/G from D/G to NPL Net FX Impact End Balance Beg. U/G to PL D/G from Disburse. Colle

  19. Slide 19: Q3 2006 Movement in Category 1 and 2 Loans

    Q3 2006 Movement in Category 1 and 2 Loans Category 1 Loan Movements (Rp bn) – Bank Only Category 2 Loan Movements (Rp bn) – Bank Only 43 63,614 61,439 3,189 12 2,345 1,369 17 12,175 2,345 1,369 1,244 1,099 21 10,991 204 Beg. Bal. D/G to 2 U/G from D/G to U/G from Net FX End Bal. Beg. Bal. Cat. 1 U/

  20. Slide 20: Provisioning coverage reflects BI requirements

    18 50% 40% 30% 20% 10% 0% 10.9% 10,991 Q3 '06 12,175 Q2 '06 Q1 '06 12.9% 12,086 12,912 Q4 '05 2 - Special Mention Loans (Rp Bn) 16,423 Q3 '05 14,394 Q2 '05 12,352 Q1 '05 9.4% Q4 '04 Category 2 Loans – Bank Only 8,334 Cat 2 % 9,852 Q3 '04 9,912 Q2 '04 15.0% 10,621 Q1 '04 Provisioning coverage reflect

  21. Slide 21: NPL, Provisioning & Collateral Details – Bank Only

    NPL, Provisioning & Collateral Details – Bank Only Non-Performing Loans by Segment Collateral Valuation Details NPLs Q3U NPLs Collectibility 1 2 3 4 5 (Rp tn) (Rp tn) (%) Total Cash Corporate 16.44 0.34 35.98% Prov. (Rp bn) 641 551 533 384 10,881 Commercial 8.14 (0.47) 24.80% % Cash Provisions 1.0%

  22. Slide 22: Quarterly Analysis of Upgrades and Downgrades

    Quarterly Analysis of Upgrades and Downgrades* Total Corporate, Commercial & Small Business Loans Net Upgrades/Downgrades# Q3 2006 Details Loan Q3 ‘06 Q4 Q1 Q2 Q3 DG to UG to Background Balance (Rp 2005 2006 2006 2006 NPL PL bn) Restructured 17,219.6 2.9% 0.8% 0.4% 0.6% - 0.6% IBRA 3,929.8 4.8% 0.3%

  23. Slide 23: Core earnings up 15.1% from 9-Months 2005

    9 Months 2006 core earnings up 15.1% from 9-Months 2005 Core Earnings Profit After Tax & ROE IDR bn RoE - After Tax 8,000 Gain on Sale/Value of Securities (Annualized) FX Gain 26.2% Core Earnings 23.6% 21.5% 22.8% 1,651 7,000 2,072 6,000 775 Pre-Provision Operating Profit 402 5,000 819 1,408 114 2,0

  24. Slide 24: CAR rose to 25.45% on a 1% increase in capital

    22 25.4% 110.4 28.1 Q3 '06 25.1% 110.7 27.8 Q2 '06 110.7 27.9 Q1 '06 23.7% 115.9 27.4 Q4 '05 117.5 27.8 Q3 '05 23.7% 115.9 27.5 Q2 '05 114.1 30.4 Q1 '05 CAR rose to 25.45% on a 1% increase in capital 25.3% 108.9 27.5 Q4 '04 102.3 27.2 Q3 '04 27.5% 96.2 26.5 Q2 '04 Total Capital (Rp tn) 94.2 28.1 Q1

  25. Slide 25: Additional Factors

    Additional Factors ƒ Aggregate of IDR 25.51 tn (US$ 2.77 bn) in written-off loans as of end- September 2006, with significant recoveries on-going: ¾ 2001: IDR 2.0 tn ¾ 2002: IDR 1.1 tn Written-off Written-off ¾ 2003: IDR 1.2 tn Loans Loans ¾ 2004: IDR 1.08 tn ¾ 2005: IDR 0.818 tn (US$ 83.2 mn) ¾ Q1

  26. Slide 26: Operating Profit again shows significant Y-o-Y increase

    Operating Profit again shows significant Y-o-Y increase Q3 Q3 -- 2005 2005 Q2 Q2 -- 2006 2006 Q3 -- 2006 Q3 2006 593 643 631 1,517 1,501 1,396 2,490 2,471 2,175 1,410 1,566 1,612 Net Fee Based Overhead Operating Net Fee Based Overhead Operating Net Fee Based Overhead Operating Interest Income Expens

  27. Slide 27: Business Unit Performance, 30 September 2006

    Business Unit Performance, 30 September 2006 Micro & Special Business Unit Performance (Rp bn) Corp. Comm. Cons. Treasury* Retail Asset Mgmt Earning Assets (Avg. Bal.) 24,982 22,085 11,660 8,092 25,866 104,973 Deposits & Borrowings (Avg. Bal.) 56,903 23,426 0 109,889 0 6,806 Interest Margin on Asset

  28. Slide 28: Key business initiatives drive operating profit growth

    Key business initiatives drive operating profit growth Dominant Multi-specialist Bank Model Dominant Bank in Indonesia, with 20-30% market share of revenue across all segments, with distinctive strategies for each business that capture synergies across different market segments To be the customers’

  29. Slide 29: Gross loan expansion shows active underwriting, but repayments reduce net growth

    Gross loan expansion shows active underwriting, but repayments reduce reported net growth Gross Gross Gross Gross Expansion Expansion Expansion Expansion 14,709 827 10,886 7,168 2,211 1,592 1,044 11,354 116 1,089 100,083 100,853 98,070 Mar ‘06 Disburse FX Term Payment W/Off Jun ‘06 Disburse FX Term

  30. Slide 30: Continuing reductions in NPLs attributed to top 30 debtors

    Continuing reductions in NPLs attributed to top 30 debtors Rp tn Bank Only 0.64 0.17 0.80 0.03 0.00 0.17 16.11 0.73 0.18 14.84 13.73 Dec '05 Upgrade Downgrade Term Jun '06 Upgrade Downgrade Term Principal Write-Offs Sep '06 Payment & Payment & Payments Others Others 28

  31. Slide 31: Status of selected top debtors

    Status of selected top debtors ƒ The Obligor has 3 companies grouped in the “Riau Complex” whose loans have been classified as Loss since June 2005. Raja Raja Garuda Garuda ƒ Total exposure is USD589.9 million, of which a portion has been written off Mas Mas ƒ Negotiations on the “Riau Complex” are

  32. Slide 32: Status of selected top debtors

    Status of selected top debtors ƒ Total loans of Rp1.85 tn currently classified as Loss because the debtor has not fulfilled obligations including payment of interest and other required documentation. Kiani Kiani Kertas Kertas ƒ Debtor has committed to fulfill all interest payment obligations within

  33. Slide 33: Status of selected top debtors

    Status of selected top debtors ƒ Lativi is currently in legal proceedings in the Attorney General’s Office. Lativi Lativi ƒ Potential investor is still committed to continue its investment plan in LMK and still has funds deposited in Bank Mandiri. ƒ This debtor consists of 12 companies with total ex

  34. Slide 34: Status of selected top debtors

    Status of selected top debtors ƒ Shareholder has failed to meet commitments to inject additional working capital. ƒ The controlling shareholder has not come to the Bank to discuss any concrete Great Great River River restructuring plan. ƒ The Obligor is currently involved in legal proceedings. ƒ Add

  35. Slide 35: Regulations on NPL Resolution at State-owned Banks Revised

    Regulations on NPL Resolution at State-owned Banks Revised Government regulation PP No. 33/ 2006 amends government regulation PP No. 14/ 2005 concerning the Mechanism for Managing State Receivables: ƒ Confirms that SOE’s receivables, including Bank Mandiri’s, are not State receivables, consistent wi

  36. Slide 36: Next Steps – Socialization & Establishing Oversight Committee

    Next Steps – Socialization & Establishing Oversight Committee ƒ Inform all stakeholders that PP 33/2006 and PMK 87/2006 revise PP 14/ 2005 and PMK 31/2005 concerning management of state’s and regional receivables. ƒ To ensure common and similar understanding among lawmakers and banking regulators on

  37. Slide 37: Next Steps – Internal Preparation

    Next Steps – Internal Preparation NPL NPL Selection Selection NPL NPL Legal Legal Transaction Transaction Structuring Structuring Corporate Corporate Approval Approval Internal Internal Policy Policy && Stratification Stratification Due Due Dilligence Dilligence ƒ Along with Financial ƒ To identify

  38. Slide 38: Majority of Written-Off Loans are more than 5 years old

    Majority of Written-Off Loans are more than 5 years old Bank Mandiri Q3 2006 Written-Off Loan Portfolio Notes (Rp tn) Total Total <3 yrs >100bn 3-5 yrs 5.5 5bn-100bn Partial W/O >5 yrs <5bn 8.2 W/O Loans 4.9 17.0 17.0 Rp3.1 6.0 25.5 25.5 6.6 DJPLN 2.8 Rp8.5 Rp17.0 0.4 0.9 2.2 Rp13.9 Bank Mandiri 8.5

  39. Slide 39: Four transformation themes for achieving Mandiri's aspirations

    Four transformation themes for achieving Mandiri’s aspirations Strategic Aspiration: Dominant Multi-Specialist Bank/Regional Champion Hone Hone&&deliver deliver Build Build winning winning tailored tailored Strengthen Strengthenrisk risk Revamp Revampinternal internal organization organization and a

  40. Slide 40: CMO Directorate to manage overall transformation program

    CMO Directorate to manage overall transformation program… …there will be a range of initiatives Based on the 4 transformation that must be well-coordinated and themes… closely monitored... Bank-wide strategic Initiatives: ƒ Setup a “bad bank” (SPV) for asset disposal …which necessitates the setup of

  41. Slide 41: Summary Quarterly Balance Sheet: Q3 '05 – Q3 '06

    Summary Quarterly Balance Sheet: Q3 ‘05 – Q3 ‘06 Q3 ‘05 Q4 ‘05 Q1 ‘06 Q2 ‘06 Q3 ‘06 Q-o-Q Rp (tn) Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# Rp % Change Total Assets 250.3 263.4 254.9 255.3 253.7 27.5 1.3 Cash 2.6 2.5 3.3 3.0 3.3 0.4 28.3 Current Accounts w/BI 18.8 20.3 22.2 20.2 19.5 2.1 3.7 Certifi

  42. Slide 42: Summary P&L Information – Q3 2006

    Summary P&L Information – Q3 2006 Q-o-Q Q3 2005 Q2 2006 Q3 2006 Change % of % of Rp % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets* (Billions) Av.Assets (%) Interest Income 5,532 8.7 6,759 10.6 6,561 10.3 (2.9) Interest Expense (3,091) (4.9) (4,119) (6.5) (3,934) (6.2) (4.5) Net Interest Inco

  43. Slide 43: Recap Bond Portfolio Details, 30 September 2006 – Bank Only

    Recap Bond Portfolio Details, 30 September 2006 – Bank Only Interest Nominal Mark To Fair Value Series Maturity Date Rate (%) Trading AFS HTM Market Trading AFS HTM Fixed Rate FR0002 15-Jun-09 14.00% 68 108.40 74 FR0005 15-Jul-07 12.25% 500 101.39 507 FR0010 15-Mar-10 13.15% 1,350,000 100.00 1,350,0

  44. Slide 44: Bank Mandiri Credit Ratings

    Bank Mandiri Credit Ratings S&P Moody’s Fitch Pefindo Sovereign Ratings Outlook Positive Positive Stable Long Term Bank Deposits B3 Long Term Foreign Currency Debt B+ B2 BB- Short Term Foreign Currency Debt B NP NR Long Term Local Currency Debt BB B2 NR Short Term Local Currency Debt B Bank Mandiri

  45. Slide 45: Reconciliation to IFRS

    Reconciliation to IFRS FY ’02 FY ’03 FY ’04 FY ’05 Rp (Billions) Rp (Billions) Rp (Billions) Rp (Billions) Net profit under Indonesian GAAP 2,746 4,586 5,256 603 IFRS Adjustments Allow. for possible losses on earning assets 955 (662) (309) (2,681) Allow. for possible losses on commitments & continge

  46. Slide 46: Corporate Actions

    Corporate Actions ƒ Dividend Payment of Rp14.853 per share ƒ Schedule : Dividend a. Cum Date : June 14, 2006 Dividend Payment Payment b. Ex Date : June 15, 2006 c. Payment Date : June 30, 2006 ƒ Total Dividend payments for 2005 = Rp301,684,655,575.70 44

  47. Slide 47: Our aspiration is to be a Dominant Multi-Specialist Bank

    Our aspiration is to be a Dominant Multi-Specialist Bank Dominant Multi-specialist Bank Model Dominant Dominant Bank Bank in in Indonesia, Indonesia, with with 20-30% 20-30% market market share share of of revenue revenue across across all all segments, segments, with with distinctive distinctive st

  48. Slide 48: Individual segment strategies

    Individual segment strategies ƒ Maintaining our position as market leader and focusing our effort to shift into a more profitable product mix (e.g. fee-based products) Corporate Corporate ƒ Leveraging our strength in wholesale and investment banking through Mandiri Sekuritas Banking Banking ƒ Ensuri

  49. Slide 49: Vision of Bank Mandiri Implementation Roadmap

    Vision of Bank Mandiri Implementation Roadmap ~12 months ~12-24 months ~12-24 months Horizon 1: Horizon 2: Horizon 3: Fix the leaks and lay foundations Consolidate and build momentum Accelerate and grow “Back on Track” “Outperform the Market” “Shaping the End Game” Build winning ƒ New BU structure a

  50. Slide 50: Regulations on Asset Classification: PBI No. 7/2/PBI/2005

    Regulations on Asset Classification: PBI No. 7/2/PBI/2005) Classification by Payment History Previously Current No change to BI Prov. Req. Category 1 - Current Current Current 1% Classification Classification Category 2 – Special Mention 1 – 90 days 1 – 90 days 5% by by Aging Aging ofof Category 3 –

  51. Slide 51: Accounting for Interest, Provisions and Collateral

    Accounting for Interest, Provisions and Collateral Classification Regular Loans Restructured Loans IBRA Loans Cat. 1 - Current Accrual Basis Accrual Basis Cash Basis Recognition Recognition of of Cat. 2 – Special Mention Accrual Basis Cash Basis Cash Basis Interest Interest Income Income Cat. 3 – Su

  52. Slide 52: Quarterly Analysis of NPL and PL changes

    Quarterly Analysis of NPL and PL changes Q3 2005# Q4 2005# Q1 2006# Q2 2006# Q3 2006# Loan Background Net Net Net Net Value (Rp bn) DG to NPL UG to PL Net Corporate Loans Restructured 5.7% 1.1% 0.8% 0.4% 11,694 - - - IBRA 0.9% 5.2% - 3.8% 3,372 - 0.5% 0.5% Pre-Merger - 6.1% - - 326 - - - Post-Merger

  53. Slide 53: Q3 2006 Loan Detail: Collectibility by Business Unit

    Q3 2006 Loan Detail: Collectibility by Business Unit Loan Profile: Q3 Collectibility (%) by BU - Bank Only Loan Profile: Q3 Collectibility (Rp bn) by BU - Bank Only 50,000 6.2% 5.2% 3.2% 1.3% 0.8% 1.2% 3.5% 19.3% 2.4% 1.8% 28.7% 15.2% 13.1% 0.9% 16.5% 40,000 4.6% 2.9% 11.1% 4.4% 5 30,000 5 9.0% 4 4

  54. Slide 54: Q3 2006 Loan Detail: Downgrades to NPL

    Q3 2006 Loan Detail*: Downgrades to NPL Loan Profile: Q3 Downgrades to NPL (Rp 1,031 bn) - Bank Only Corporate, Commercial & Small 100% Program Business loans downgraded to NPL in Other Oth<5% Small Q3 totaled Rp 1,031 billion (1.0% of 90% L/C Elec., Gas & Water Export total loans). Of these loans:

  55. Slide 55: Q3 2006 Loan Detail: Non-Performing Loans

    Q3 2006 Loan Detail*: Non-Performing Loans Loan Profile: Q3 NPLs (Rp 25,414 bn) Bank Only Corporate, Commercial & Small 100% Program Business NPLs totaled Rp25,414 billion in L/C Export Q3, or 25.2% of total loans. Of these 90% Oth<5% NPLs in Q3: IBRA „ 16.2% remain current on interest 80% Mfg-NonM

  56. Slide 56: NPL Loan Detail: Quarterly by Interest Days Past Due

    NPL Loan Detail*: Quarterly by Interest Days Past Due Quarterly Downgrades to NPL & Interest DPD - Bank Only Quarterly NPL Stock & Interest DPD - Bank Only Rp tn 12,000 75.0% 30,000 60.0% 60% Rp Value Current (%) 65.5% Rp Value <30 Days (%) Current (%) 51.3% 51.9% 10,000 <30 Days (%) 62.5% 25,000 50

  57. Slide 57: Q3 2006 Loan Detail: New Downgrades to Category 2

    Q3 2006 Loan Detail*: New Downgrades to Category 2 Loan Profile: Q3 Downgrades to Cat. 2 loans (Rp 1,645 bn) - Bank Only Rp 1,645 billion (1.6% of total loans) in 100% Program O/S Corporate, Commercial & Small 61+ Oth<5% Export Pre-merger Restr Agri Business loans were downgraded to 90% USD Category

  58. Slide 58: Q3 2006 Loan Detail: Category 2 Loans

    Q3 2006 Loan Detail*: Category 2 Loans Loan Profile: Q3 Category 2 Loans (Rp 8,844 bn) Bank Only Rp 8,844 billion (8.8% of total loans) in 100% Corporate, Commercial & Small 61+ Program IBRA Small Oth<5% Synd. Business loans were in Category 2 in Export L/C UG to PL 90% 31-60 Q3. Of these Special Me

  59. Slide 59: Q3 2006 Loan Detail: Upgrades to PL

    Q3 2006 Loan Detail*: Upgrades to PL Loan Profile: Q3 Upgrades to PL (Rp 178 bn) - Bank Only Corporate, Commercial & Small 100% O/S Pre-merger Business loans upgraded to PL in Q3 Oth<5% Purpose IBRA totaled Rp 178 billion (0.2% of total 90% USD Trading loans). Of these loans: Small Invest „ 43.8% we

  60. Slide 60: Q3 2006 Loan Detail: Performing Loans

    Q3 2006 Loan Detail*: Performing Loans Loan Profile: Q3 Performing Loans (Rp 61,490 bn) Bank Only Rp 61,490 billion (61.0% of total loans) 100% Other in Corporate, Commercial & Small Other Small O/S Oth<5% 2 Business loans were performing in Q3. Export 90% USD Of these performing loans in Q3: Restr

  61. Slide 61: Rp321 bn in loans restructured in Q3 '06

    Rp321 bn in loans restructured in Q3 ’06 Restructured Loan Movement 1999 - Q3 ‘06 Loans by Restructuring Type in Q3 2006 Others# IDR bn Write-Offs Repayments Restructuring B alance Maturity extension 50% Additional loans 2% LT loans w/convert. Maturity option extension 9% 10,583 27,423 25,123 29,542

  62. Slide 62: Q3 2006 Loan Detail: Restructured Loans

    Q3 2006 Loan Detail*: Restructured Loans Loan Profile: Q3 Restructured Loans (Rp 17,378 bn) Bank Only 100% Of the remaining Rp 17,378 billion in Program Small PL UG restructured Corporate, Commercial Oth<5% & Small Business loans in Q3, or 17.2% 90% Synd Electricity of total loans: Comm Constr 80% „

  63. Slide 63: Q3 2006 Loan Detail: IBRA Loans

    Q3 2006 Loan Detail*: IBRA Loans Loan Profile: Q3 IBRA Loans (Rp 3,930 bn) Bank Only 100% Rp 3,930 billion in loans purchased Mfg-Oth Program PL UG Export from IBRA remain on the books as of Comm Mfg-NonM IDR Q3, accounting for 3.9% of total loans: 90% PL NC Agri WC „ 22.0% are performing 80% Mfg-Te

  64. Slide 64: Loan Portfolio Sector Analysis, Q3 2006

    Loan Portfolio Sector Analysis, Q3 2006 Mfg-Oth Agri Mfg-F&B 10.4% Mfg-F&B 11.7% Agri Mfg-Chem Mfg-Chem 9.0% Mfg-Oth Trading-Oth 13.6% Constr Trading-Oth 8.8% Mfg-Text Oth<4% Trading-Ret 12.5% Constr 8.5% Trans Mfg-P&P 4.4% Mfg-Text Bus Serv Bus Serv 6.7% 4.6% Trading-Ret Mfg-P&P Trans 5.0% 4.7% Oth

  65. Slide 65: Q3 2006 Loan Detail: Corporate Loans

    Q3 2006 Loan Detail: Corporate Loans Loan Profile: Q3 Corporate Loans Only (Rp 45,703 bn) Bank Only Rp 45,703 billion in loans were in the 100% 61-90 Program Pre-merger PL UG Corporate portfolio in Q3, or 45.3% of O/S 31-60 Oth<5% Export L/C total loans. Of the Corporate Loans in 90% IBRA Q3: 5 < 30

  66. Slide 66: Q3 2006 Loan Detail: Commercial Loans

    Q3 2006 Loan Detail: Commercial Loans Loan Profile: Q3 Commercial Loans* Only (Rp 32,843 bn) Bank Only Rp 32,843 billion in loans were in the 100% Other PL UG Other Commercial portfolio in Q3, or 32.6% 61+ Export 90% 5 of total loans. Of the Commercial Oth<5% USD Restr Loans in Q3: 31-60 80% 4 „ 75.

  67. Slide 67: Q3 2006 Loan Detail: Small Business Loans

    Q3 2006 Loan Detail: Small Business Loans* Loan Profile: Q3 Small Business Loans* Only (Rp 8,358 bn) Bank Only Rp 8,358 billion in loans were in the 100% USD Other Pre-merger PL UG 5 Small Business portfolio in Q3, or 8.3% Oth<5% 4 Program Restr of total loans. Of the Small Business 90% 3 61+ Constr

  68. Slide 68: Q3 2006 Loan Detail: Rupiah Loans

    Q3 2006 Loan Detail*: Rupiah Loans Loan Profile: Q3 Loans (Rp 57,830 bn) Bank Only Rp 57,830 billion in loans were Rupiah 100% PL UG Other Other denominated in Q3, or 57.3% of total 61+ Oth<5% Program 5 Small Export loans. Of the Rupiah Loans in Q3: 90% Trans Restr 4 31-60 „ 81.0% are performing loa

  69. Slide 69: Q3 2006 Loan Detail: Foreign Currency Loans

    Q3 2006 Loan Detail*: Foreign Currency Loans Loan Profile: Q3 FX Loans (Rp 29,074 bn) Bank Only Rp 29,074 billion in loans were foreign 100% 61+ PL UG currency denominated in Q3, or 28.8% 31-60 O/S Export of total loans. Of the FX Loans in Q3: 90% Oth<5% L/C Comm „ 50.3% are performing loans with Sy

  70. Slide 70: Cards issued reached 817k, with Q3 transactions of Rp829 bn

    Cards issued reached 817k, with Q3 transactions of Rp829 bn Mandiri Visa Card Holders and EOQ Receivables Visa Card Quarterly Sales by Type of Transaction (Rp Billion) 817.1 Transfer Balance 3 784.1 Receivables (Rp Bn) 752.4 Cash Advance 72 Cards (000s) 709.4 Retail 650.7 18 42 Transferred 81 8 68 f

  71. Slide 71: Credit Card portfolio showed marked improvement in Q3

    Credit Card portfolio showed marked improvement in Q3 Mandiri Visa Card Delinquency Rates Monthly Charge-offs, NPLs & Recoveries (%) (Rp Billion) 140.9 21.3% NPLs (90+DPD) Write-Offs 30 DPD - Rp Recoveries 90 DPD - Rp 106.1 30 DPD - Cards 16.0% 98.7 16.8% 90 DPD - Cards 103.0 16.1% 82.9 13.3% 75.6 1

  72. Slide 72: Summary of Principal Subsidiaries

    Summary of Principal Subsidiaries Bank Syariah Mandiri Mandiri Sekuritas AXA Mandiri • Equity Investment of Rp674.19 billion • Equity Investment of Rp668.34billion • Equity Investment of Rp 81.39 billion • Total Assets Rp8,895billion, with total • Total Assets Rp 2,716 billion, total • Total Assets

  73. Slide 73: Bank Syariah Mandiri

    Bank Syariah Mandiri Branch Network & Customer Growth Summary Balance Sheet (Rp Billions) 9 Mo. 652 Rp Bn 2003 2004 2005 ‘06 Branches Total Assets 3,422 6,870 8,273 8,895 Customers (000s) 533 Cash & placement 1,023 796 1,689 935 w/ BI Current Accounts & Placements 36 235 168 206 w/Other Banks 357 Se

  74. Slide 74: Bank Syariah Mandiri

    Bank Syariah Mandiri Summary P&L (Rp billions) 2002 2003 2004 2005 Q3 ‘06 Total Operating Income 162.7 279.4 584.2 865.5 677.5 3rd Party Share on Returns 71.5 148.4 269.2 386.4 337.5 Bank's Share in Operating Income 91.3 131.1 315.0 479.1 339.9 Other Operating income 35.5 51.9 102.0 93.6 101.7 Opera

  75. Slide 75: Mandiri Sekuritas

    Mandiri Sekuritas Summary Balance Sheet Summary P&L Rp Bn 2003 2004 2005 Q3 ‘06 Rp Bn 2003 2004 2005 Q3 ‘06 Total Assets 1,079.7 1,435.7 1,258.7 2,715.9 Operating Revenue 102.4 244.0 197.3 138.2 Cash & Equivalent 82.9 117.4 51.8 132.7 Brokerage Commissions 3.9 15.6 20.9 11.9 Time deposit 50.0 50.0 -

  76. Slide 76: CURRICULUM VITAE: New EVP Coordinators

    CURRICULUM VITAE: New EVP Coordinators Personal Data: Name : Pahala N. Mansury Job Title : EVP Coordinator, Finance & Strategy; CFO Educational Background: Master of Business Administration, NYU – Stern School of Business; Bachelor of Arts, Accounting, University of Indonesia, Jakarta Work Experienc

  77. Slide 77: Organization Structure

    Organization Structure Audit Committee Board of Commissioners Risk Policy Committee Nomination & Remuneration Committee Good Corporate Governance Committee New Directorate Board of Directors Consolidated Directorate President Director & CEO Groups moved to New Directorate Agus Martowardojo Subsidiar

  78. Slide 78: Staffing and Distribution Network Growth

    76 2,662 102 Q3 '06 6,131 H1 '06 2,560 90 2005 6,025 2005 500 2,470 2004 5,537 2004 490 2,022 2003 4,716 2003 520 1,559 2002 4,000 2002 ATM-Link Network 500 1,184 2001 3,160 Staffing and Distribution Network Growth 2001 ATM Network 211 533 2000 2000 New ATMs 513 1999 1999 21,079 921 -0.5 12 Q3 '06 H

  79. Slide 79: Loan growth, quality and provisioning relative to peers

    77 39.2% BCA 43% BNI 39.6% Lippo 44% Niaga Ratio of Provisions to NPL 51.8% BNI 49% Mandiri Loan to Deposit Ratio 52.4% Mandiri 70% BII 58.6% BII 68% Permata Loan growth, quality and provisioning relative to peers 73.2% Panin (%) (%) 73.9% Permata 93% Danamon 75.6% Danamon 90% Panin 76.3% BRI 141% B

  80. Slide 80: Asset and liability mix relative to peers

    78 11.0% Mandiri 4.9% Lippo 11.5% BNI 5.6% BCA Yield on Assets (p.a.) 12.2% Lippo 5.8% BNI Cost of Funds (p.a.) 12.6% Panin 6.5% BRI 13.0% BCA 7.5% Mandiri (%) (%) 13.2% BII 7.7% BII 14.0% Niaga 8.4% Niaga 14.5% Danamon 8.4% Danamon 14.9% Permata 8.8% Permata 17.4% BRI 8.8% Panin 39.8% BCA 27.4% Dan

  81. Slide 81: Efficiency measures relative to peers

    79 5.8% BRI 44.5% BCA 4.7% Lippo 48.9% Mandiri 4.6% BII 49.9% Panin 4.4% Permata Cost/ Income 51.2% Danamon Cost/Assets *Annualized 3.8% Danamon 52.2% Niaga (%)* (%) 3.6% BNI 53.3% BRI 3.2% BCA 56.3% BNI 3.2% Niaga 65.1% BII 2.9% Panin 69.1% Lippo 2.3% Mandiri 70.9% Permata 144 Danamon 30 Permata 16

  82. Slide 82: Measures of scale and returns relative to peers

    80 333 Niaga 7.5% Mandiri Return on Equity (After Tax) 345 Panin 11.9% Permata 582 Permata 13.0% Danamon 691 Lippo 14.9% Panin ATMs 697 BII 18.4% Niaga (%) 779 Danamon 19.8% BNI 971 BRI 21.8% Lippo 2,272 BNI 21.8% BII 2,667 Mandiri Measures of scale and returns relative to peers 27.9% BCA 4,173 BCA

  83. Slide 83: Consolidated Balance Sheets

    81 BALANCE SHEETS As of September 30, 2006 and 2005 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION September September September September 30,2006 30,2005 30,2006 30,2005 ASSETS 1. Cash 3,211,240 2,517,175 3,326,384 2,593,491 2. Placements with Bank Indonesia a. Current accounts with Bank

  84. Slide 84: Consolidated Liabilities and Shareholders' Equity

    82 BALANCE SHEETS As of September 30, 2006 and 2005 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION September September September September 30,2006 30,2005 30,2006 30,2005 LIABILITIES AND SHAREHOLDERS' EQUITY 1 Demand deposits a. Rupiah 29,484,565 28,279,253 30,937,711 28,972,005 b. Foreign

  85. Slide 85: Consolidated Statements of Profit and Loss

    83 STATEMENTS OF PROFIT AND LOSS For the periods from January 1 to September 30, 2006 and 2005 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION September September September September 30,2006 30,2005 30,2006 30,2005 INCOME AND EXPENSES FROM OPERATIONS 1. Interest Income 1.1. Interest income

  86. Slide 86: Statements of Commitments and Contingencies

    84 STATEMENTS OF COMMITMENTS AND CONTINGENCIES As of September 30, 2006 and 2005 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION September September September September 30,2006 30,2005 30,2006 30,2005 COMMITMENTS Commitment Receivables 1. Unused fund borrowings facilities a. Rupiah - - - -

  87. Slide 87: Management of the Bank as of September 30, 2006

    MANAGEMENT OF THE BANK AS OF SEPTEMBER 30, 2006 SHAREHOLDER Jakarta, October 20, 2006 Board of Commissioners - Chairman : Edwin Gerungan *) Republic of Indonesia : 68.90% S. E & O - Deputy Chairman : Muchayat (Ultimate Shareholders) Board of Directors - Commissioner : Soedarjono PT Bank Mandiri (Per

  88. Slide 88: Earning Assets and Other Information

    EARNING ASSETS AND OTHER INFORMATION As of September 30, 2006 and 2005 (In Millions of Rupiah) BANK September 30, 2006 September 30, 2005 No DESCRIPTION SPECIAL SUB SPECIAL SUB CURRENT DOUBTFUL LOSS TOTAL CURRENT DOUBTFUL LOSS TOTAL MENTION STANDARD MENTION STANDARD I Related Parties A EARNING ASSET

  89. Slide 89: Foreign Exchange and Derivatives Transaction

    FOREIGN EXCHANGE AND DERIVATIVES TRANSACTION As of September 30, 2006 (In Millions of Rupiah) BANK Derivative Receivable & NO TRANSACTION Contract Market Value Contract Value Payable Netting Agreement Hedging Others Receivable Payable A. Exchange Rate Related 1 Spot - 431 - - - 2 Forward - 748,034 3

  90. Slide 90: Calculation of CAR

    88 CALCULATION OF CAR As of September 30, 2006 and 2005 (In Millions of Rupiah) BANK NO DESCRIPTION September 30, September 30, 2006 2005 I. COMPONENTS A. CORE CAPITAL 21,705,999 21,210,657 1. Paid-Up Capital 10,159,165 10,116,800 2. Disclosed Reserves a. Agio 6,025,803 5,999,350 b. Disagio (-/-) -

  91. Slide 91: Loan Purchased from IBRA

    89 LOAN PURCHASED FROM IBRA January 1, 2006 to September 30, 2006 (In millions of Rupiah) (Based on Bank Indonesia's Regulation No. 4/7/PBI/2002 dated September 27, 2002 Chapter VI section 24) a. Summary of loan purchased from IBRA NO DESCRIPTION Amount 1 Loan principal / outstanding balance as of S

  92. Slide 92: Financial Ratios

    90 FINANCIAL RATIOS As of September 30, 2006 and 2005 BANK NO KEYS RATIOS September September 30, 2006 30, 2005 I. Capital 1. CAR by considering credit risk 25.45% 23.65% 2. CAR by considering credit risk and market risk 24.84% 23.04% 3. Premises and Equipment to Capital 26.71% 27.17% II. Earning As

  93. Slide 93: Notes

    Notes _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ____________________________________________________________

  94. Slide 94: Notes

    Notes _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ____________________________________________________________

  95. Slide 95: Equity Research Contact Details

    Equity Research Contact Details BROKERAGE ANALYST TELEPHONE E-MAIL ABN AMRO Asia Securities Indonesia Manoj Nanwani 6221-515-6014 manoj.nanwani@id.abnamro.com BAHANA SECURITIES Ari Pitoyo 6221-250-5081 aripitoyo@bahana.co.id BNP PARIBAS PEREGRINE Tjandra Lienandjaja 6221-5798-4661 tjandra.lienandjaj

  96. Slide 96: For Additional Information

    95 For Additional Information: Please refer to our website at www.bankmandiri.co.id Or Contact: Mansyur Nasution Corporate Secretary Tel: (6221) 524 5299 Fax: (6221) 5296 4024 Jonathan Zax Head of Investor Relations Tel: (6221) 3002-3171 Fax: (6221) 5290 4249 E-mail: ir@bankmandiri.co.id PT Bank Man

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