PT Bank Mandiri (Persero) Tbk · IDX:BMRI

PT Bank Mandiri (Persero) Tbk — Q1 2007 Earnings Presentation

98 slides from PT Bank Mandiri (Persero) Tbk's earnings presentation, April 2007

  1. Slide 1: Q1 2007 Results Presentation

    PT Bank Mandiri (Persero) Tbk Q1 2007 Results Presentation 0

  2. Slide 2: Share Information

    Share Information as of 31 March 2007 3,000 Description No. of No. of shares % Investors 2,750 DOMESTIC BMRI 1. Government of RI 1 14,000,000,000 67.86% 2,500 JCI 2. Retail 15,583 598,500,483 2.90% 3. Employees 9,336 147,628,509 0.72% 2,250 4. Coops./Foundations 12 11,155,500 0.05% 2,000 5. Pension

  3. Slide 3: Bank Mandiri Presentation Contents

    Bank Mandiri Presentation Contents Results Results Overview Overview Page Page # # ƒƒ FYFY Financial Financial Highlights Highlights 22 ƒƒ Quarterly Quarterly Loan Loan Growth Growth && LDR LDR 33 ƒƒ Quarterly Quarterly Funding Funding Mix Mix && Deposit Deposit Costs Costs 44 ƒƒ Quarterly Quarterly

  4. Slide 4: Key Financial Highlights

    Key Financial Highlights* Bank Mandiri’s Q1 2007 Performance continued to demonstrate marked improvements in a number of key indicators: Organization Structure Q1 2006 Q1 2007 Change Loans Rp105.1 tn Rp114.3 tn 8.8% Net NPL Ratio 15.0% 4.7% (68.7%) Low Cost Funds Ratio 44.4% 54.5% 22.7% NIM (1) 4.2%

  5. Slide 5: LDR reached 57.6% on 8.8% Y-o-Y consolidated growth

    LDR reached 57.6% on 8.8% Y-o-Y consolidated growth Quarterly Loan Data – Consolidated Quarterly Loan Segment Details – Bank Only Loans (Rp tn) LDR (%) 57.3% 55.9% 57.6% Corporate 44.0 45.2 53.6 51.3 42.3 44.7 40.2 42.5% Commercial 37.7 35.1 35.7 32.9 32.6 31.6 22.2 Consumer 10.8 11.5 11.8 12.6 12.2

  6. Slide 6: Q1 Deposits fell 4.1% on 9.4% drop in IDR Time Deposits

    4 Q1 Deposits fell 4.1% on 9.4% drop in IDR Time Deposits 9.3% 8.1% 4.1% 2.8% 3.7% 2.0% Q1 '07 Q4 '06 Rp Savings 1 Mo. SBIs Q3 '06 FX TD Q2 '06 12.7% 11.9% 4.3% 2.7% 4.4% 3.3% Q1 '06 Average Quarterly Deposit Costs (%) Q4 '05 Q3 '05 Rp DD Rp TD FX DD Q2 '05 1.5% 7.4% 6.3% 4.1% 0.5% 3.7% Q1 '05 Q4 '0

  7. Slide 7: Q1 NIM expands on falling COF across currencies

    Q1 NIM expands on falling COF across currencies Quarterly Net Interest Margins* Quarterly Yields & Costs by Currency* 20% Yield on Assets IDR 13.0% 13.0% Cost of Funds 15% 12.7% 11.8% 11.6% 11.4% 9.3% 10.7% 11.0% 10% 10.8% 10.8% 10.6% 9.3% 9.5% 9.4% 8.9% 5% 8.7% 5.6% 8.2% 7.8%7.6% 7.3% 7.3% 0% 6.3%

  8. Slide 8: Non-loan Related Fees & Commissions up 43.5% Y-o-Y

    Non-loan Related Fees & Commissions up 43.5% Y-o-Y Non-loan related fees & commissions Details of Q1 2006 & 2007 Credit Cards Transfer, Coll., Clearing & Bank Ref. % of Operating Income* Opening L/C & Bank Guarantees Non-Loan Related Q1 Q1 Y-o-Y Fees & Fee from Subsidiaries Commissions 2006 2007 U O

  9. Slide 9: Q1 Cost to Income Ratio declined to 37.3%

    Q1 Cost to Income Ratio declined to 37.3% Quarterly Consolidated Operating Expenses & CIR* Breakdown of Q1 2006 & 2007 Operating Expenses CIR* (%) 83.3% Change Annual Avg CIR (%) Q1 ‘06 Q1 ‘07 (Y-o-Y) Personnel Expenses 58.9%57.6% Base Salary 268,354 281,175 4.78% Other Allowances 303,387 349,848 15

  10. Slide 10: Q1 NPLs fall to Rp17.97 billion on collections & write-offs

    Q1 NPLs fall to Rp17.97 billion on collections & write-offs Non-Performing Loan Movements (Rp bn) – Bank Only Movement by Customer Segment (Rp Bn) 700 Cons 619 25.0 Micro/Small 883 600 Comm 94.7 338 423 Corp 500 643 18,677 116 400 122.0 300 44.9 17,971 488.6 14.5 38.2 200 207.9 240.4 100 87.3 35.1 0

  11. Slide 11: Net NPLs at 4.7% with provisioning coverage of 83.3%

    9 50% 40% 30% 20% 10% 0% 15.9% 16,750 Q1 '07 Net NPLs at 4.7% with provisioning coverage of 83.3% 16,966 Q4 '06 10,991 Q3 '06 12.2% 2 - Special Mention Loans (Rp Bn) 12,175 Q2 '06 12,086 Q1 '06 12,912 Q4 '05 Cat 2 % 16,423 Q3 '05 14.8% Category 2 Loans – Bank Only 14,394 Q2 '05 12,352 Q1 '05 8,334 Q

  12. Slide 12: Cash Provisioning for Category 5 loans at 79.8%

    Cash Provisioning for Category 5 loans at 79.8% Non-Performing Loans by Segment Collateral Valuation Details NPLs Q4U NPLs (Rp tn) (Rp tn) (%) Collectibility 1 2 3 4 5 Corporate 10.12 (0.19) 19.75% Total Cash 726 1,446 346 228 12,407 Prov. (Rp bn) Commercial 6.36 (0.63) 20.12% % Cash Small 0.70 0.04

  13. Slide 13: Declining trend on net downgrades for new loans

    Declining trend on net downgrades for new loans* Total Loans originated since 2005 Q1 2007 Net Upgrades/Downgrades# Details Q1 ‘07 UG Loan Q1 Q2 Q3 Q4 Q1 DG to Balance to Background 2006 2006 2006 2006 2007 NPL (Rp bn) PL Corporate 14,926.2 0.59 - - 0.02 - - - Commercial 9,271.0 1.63 1.27 1.33 2.04

  14. Slide 14: Progress on Selected Top Debtors (1)

    Progress on Selected Top Debtors (1) ƒ The agreement to restructure the syndicated loans of 3 companies within the group (“Riau Complex”) was concluded on 19 October 2006, with the total facilities of USD 1.43 billion as of 30 September 2006 (Bank Mandiri’s portion was USD 589.93 million). ƒ The loa

  15. Slide 15: Progress on Selected Top Debtors (2)

    Progress on Selected Top Debtors (2) ƒ The obligor has submitted a proposal to resolve all of its NPLs through refinancing from other creditors. This process is expected to be finalized by the first semester of 2007. Domba Domba Mas Mas ƒ The obligor has already repaid, through refinancing, loans to

  16. Slide 16: Progress on Selected Top Debtors (3)

    Progress on Selected Top Debtors (3) ƒ Total exposure to this obligor as of 15 March 2007 is USD50,528,935, all of which are past due L/C obligations to 7 companies guaranteed by Askrindo. ƒ A joint agreement between the Bank, Ministry of SOE and Askrindo to resolve these obligations was signed on 2

  17. Slide 17: Progress on Selected Top Debtors (4)

    Progress on Selected Top Debtors (4) ƒ Total exposure to this debtor is USD76,583,277. ƒ The obligor settled loans to PT. Hasil Tambak Amboina and PT. Kinantan Sena Putra in October 2006. ƒ To resolve loans to PT. Biak Mina Jaya, the Bank has agreed that the obligor would sell its assets in Biak (ma

  18. Slide 18: Summary PBI No. 9/6/PBI/2007

    Summary PBI No. 9/6/PBI/2007 Second Revision of PBI No. 7/2/PBI/2005 on Asset Quality 11 ƒ The same rating will be assigned for earning assets given by several banks for the financing of one debtor or a single project if the amount exceeds Rp 10 billion or; if Uniform Uniform the amount is between R

  19. Slide 19: Progress of PPKM Mandiri To-Date

    Progress of PPKM Mandiri To-Date …however, …however,several severalexternal external …necessitating …necessitatingMandiri Mandiritoto Mandiri’s Mandiri’sinternal internalpreparation preparationon on factors factors impactingthe impacting the adjust the timeline of the adjust the timeline of the trac

  20. Slide 20: Where are we now?

    Where are we now? Current Current Status Status Next Next Plan Plan NPL Historical Review Review on 150 accounts Remaining 93 accounts (considered for Tranche 1) to be (considered for subsequent completed in early May 2007 Tranches) to be completed in July 2007 Collateral Reappraisal 101 accounts co

  21. Slide 21: Q1 '07 operating profit up 100.9% from Q1 '06

    Q1 ‘07 operating profit up 100.9% from Q1 ‘06 Q1 Q1 2006 2006 Q1 Q1 2007 2007 Rp billion Rp billion 714 3,799 1,669 554 2,844 2,369 Up 2,326 1,464 Excluding Non- 100.9% recurring Interest Income 1,416 Net Interest Fee-Based Overhead Pre-provision Net Interest Fee-Based Overhead Pre-provision Income

  22. Slide 22: Q1 core earnings up 73.8% to Rp2,282 billion

    Q1 core earnings up 73.8% to Rp2,282 billion Core Earnings Profit After Tax & ROE IDR bn RoE - After Tax 8,000 Gain on Sale/Value of Securities FX Gain (Annualized) Non-Recurring Interest 26.2% Core Earnings 23.6% 7,000 21.5% 22.8% 1,651 Pre-Provision Operating Profit 247 2,072 6,000 775 402 380 15.

  23. Slide 23: Mandiri fulfills BI criteria as Good Performing Bank

    Mandiri fulfills BI criteria as “Good Performing Bank” Anchor Bank Q1 2007 Requirement ROA 2.2% > 1.5% 5 LDR 57.6% > 50% 5 Net NPL 4.7% < 5% 5 CAR (incl. 26.3% > 12% market Risk) 5 TIER I 21.4% > 6% 5 Loan Growth 8.8% > 22% p.a 21

  24. Slide 24: Recap: Leveraging leadership in cash generating businesses

    Recap: Leveraging leadership in cash generating businesses to build emerging and future growth engines Consumer Finance & Micro/Retail Banking Corporate & Building 11 Treasury Future Growth Engine Leveraging on Optimizing Optimizing Our Cash 33 Synergies Synergies Generator Across Across Business Bu

  25. Slide 25: Future businesses generated largest profit in Q1 2007

    Future businesses generated largest profit in Q1 2007 . . . SBU Q1 ‘07 Earnings before Tax (Unaudited) 161 Rp billion 396 502 419 1,452 263 503 Corporate Treasury Commercial Micro & Consumer Others, Incl. Profit Before Retail Finance SAM Tax 23

  26. Slide 26: Strong franchise in all SBUs indicated by solid profitability

    Strong franchise in all SBUs indicated by solid profitability Y-T-D March 2007 Corp Treasury Comm M&RB Consumer Others Total Spread 182 346 337 161 228 5,143 6,397 Asset Provision 7 53 96 49 77 1,062 1,344 Revenue Net Revenue 175 293 241 112 151 4,081 5,053 Spread 348 (115) 266 859 3 (4,174) (2,813)

  27. Slide 27: Corporate Banking

    Corporate Banking: Contribution margin grew by 11.2%, primarily from liabilities Corporate Performance to Date (Q1 ‘07) Contribution Margin (after PPAP) Rp bn Rp bn 53 38 7 545 538 348 54 537 483 182 Asset Liabilities Fees Overhead Operating Provisions Profit Q1 2006 *) Q1 2007 Spread Spread Profit

  28. Slide 28: Retaining leadership & profit growth in Corporate

    Retaining leadership & profit growth in Corporate Corporate 1. Leverage existing customer base, particularly among SOEs and government business to generate cash and contribution margin 2. Cross-sell to existing customers to generate transactions and corporate fee income 3. Develop value chain busine

  29. Slide 29: Leverage existing customer base from SOEs and Government Relations

    Leverage existing customer base from SOEs and Government Relations to generate cash & contribution margin Corporate Leverage Leverage existing existing customer customer base base to to cross cross Generating Generating profit profit & & case case from from existing existing customer customer base b

  30. Slide 30: Treasury & International Banking

    Treasury & International Banking: Significant fee income generator for the bank Treasury Performance to Date (Q1 ‘07) Breakdown of Treasury Fee-Based Income (%) Rp bn (%) 171 82 Forex; 39.8% 319 53 266 230 Fixed Income; 24.6% Others; 13.5% POL Transfer; 4.7% Subsidiaries; 12.3% Fee Custody; 5.3% Net

  31. Slide 31: Building on significant achievements in Treasury

    Building on significant achievements in Treasury Treasury ƒ IT Standardization in Overseas Branch (Singapore Branch) Building Building and and Fixing Fixing ƒ Implementation local settlement for USD (Mandiri Direct Settlement) Platform Platform in in 2006 2006 and and ƒ Open Regional Treasury Market

  32. Slide 32: Commercial Banking

    Commercial Banking: Commercial Generating balanced revenues from an emerging business Performance to Date (Q1 ‘07) – P&L Contribution Margin (after PPAP) Rp bn Rp bn 28 48 266 583 96 487 487 Rp718 bn 337 Q1 2006 *) Q1 2007 (231) Asset Liabilities Fees Overhead Operating Provisions Profit After Sprea

  33. Slide 33: Diversified business across geography & sectors

    Diversified business across geography & sectors Commercial Commercial Operating Profit by Geography (Mar ‘07) Commercial Loans by Sector (%) (%) Manufacturing Jakarta 32.9% 54.1% Mining 2.4% Electric, Gas & Agriculture Water 8.5% 1.5% Construction Other 15.5% Others 12.0% 12.0% Java ex-Jakarta 18.0%

  34. Slide 34: Focus on building a foundation for future growth

    Focus on building a foundation for future growth Commercial ƒ Establish a new group to focus on regional sales in key growth areas, including Semarang, Surabaya and Denpasar ƒ New department in Commercial products focused on developing Organization Organization funding products and monitoring sales

  35. Slide 35: Micro & Retail Banking

    Micro & Retail Banking: Micro Retail Solid growth in profitability driven by improving liabilities spread Performance to Date (Q1 ‘07) Contribution Margin (after PPAP) Rp bn Rp bn 329 573 860 727 30% 440 50 623 573 161 Asset Liabilities Fees Overhead* Operating Provisions Profit Q1 2006 * Q1 2007 Sp

  36. Slide 36: Micro & Retail Banking: Building a strong low cost deposit platform

    Micro & Retail Banking: Micro Retail Building our deposit franchise while enhancing loan margins 1. Building a strong low cost deposit and transactional platform franchise to match key competitor starting in 2007 onward 2. Continue relentless effort to improve service as a key element in retaining d

  37. Slide 37: Building a strong savings deposit franchise

    Building a strong savings deposit franchise Micro Retail Savings Deposit Growth Transaction channel growth Savings Deposits (Rp tn) As % of Total Deposits Avg ATM Daily Vol (000) Withdrawal/Inquiry National Share of Savings Deposits (%) Transfer Payment Other 30.2% 492.1 521.8 554.9 576.6 607.5 627.

  38. Slide 38: Continuous efforts to improve service levels

    Continuous efforts to improve service levels Micro Retail MRI MRI Survey: Survey: Bank Bank Best Best in in Service Service Excellence Excellence 2004 2005 2005 2006 Danamon 87.04 Permata 89.13 Danamon 89.64 Permata 86.81 Danamon 87.17 Mandiri 2 89.03 Niaga 84.57 Mandiri 3 86.91 Permata 87.65 NISP 8

  39. Slide 39: Service levels are strong across the board

    Service levels are strong across the board Micro Retail MRI MRI Survey: Survey: Bank Bank Best Best in in Service Service Excellence Excellence 2006 2006 Phone Banking Security 2005 Customer Service Mandiri 1 90.97 Danamon 97.40 Danamon 81.83 Danamon 90.28 Mandiri 2 95.51 Mandiri 2 81.11 Permata 87.

  40. Slide 40: Develop higher margin business in small business & micro

    Develop higher margin business in small business & micro, building on existing strengths Micro Retail Credit program for plantation revitalization ƒ Focus on CPO and plantation value chain which includes: Leverage Leverage on on – 41 corporates which are already Bank customers, with total plantation

  41. Slide 41: Consumer Finance

    Consumer Finance: Consumer Significant growth in spread and fee income Finance Performance to Date* (Q1 ‘07) Contribution Margin (after PPAP) Rp bn Rp bn 51 70 244 3 228 77 5.6% 151 142 151 Asset Liabilities Fees Overhead Operating Provisions Profit Q1 2006 * Q1 2007 Spread Spread Profit After PPAP

  42. Slide 42: Consumer lending rose 6.8% Y-o-Y on mortgages

    Consumer lending rose 6.8% Y-o-Y on mortgages Consumer Finance Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type Other Cash Collateral Loans Growth (%) 14,000 Credit Cards Loan Type Payroll Loans Y-o-Y Q-o-Q Home Equity Loans 12,000 Other 17.43% 3.07% 1,544 1,293 2,285 Mortgages

  43. Slide 43: 919k Visa Cards made Q1 transactions of Rp1,020 bn

    919k Visa Cards made Q1 transactions of Rp1,020 bn Consumer Finance Mandiri Visa Card Holders and EOQ Receivables Visa Card Quarterly Sales by Type of Transaction (Rp Bn) Receivables (Rp Bn) 918.8 Transfer Balance 872.5 17 Cards (000s) Cash Advance 67 784.1 Retail 752.4 11 709.4 68 650.7 3 72 18 42

  44. Slide 44: Stronger relationships with merchant partners

    Stronger relationships with merchant partners on local and national scale will drive higher usage of cards Consumer Finance 60% growth in sales, 20% growth in receivables, 7.7% value of transactions in Indonesia and 12% growth number of card 1,200 Merchants 200 200 Prime Prime Marketing Marketing Pr

  45. Slide 45: 2007 Major Goals

    2007 Major Goals ƒ Gross NPL below 10% and Net NPL below 5% ƒ Fulfill all criteria to be considered an anchor bank (consolidator bank) as of the end of 2007 ƒ ROE improvement to above 13% (envisioned a normalized ROE of above 18% starting from 2008) ƒ Gross loan growth of more than Rp 20 trillion or

  46. Slide 46: Key Quarterly Balance Sheet Items & Financial Ratios

    Key Quarterly Balance Sheet Items & Financial Ratios IDR billion / % Q1 ‘06 FY 2006 Q1 ‘07 YoY Change (%) Gross Loans 105,075 117,671 114,306 8.8% Government Bonds 92,225 90,648 90,628 (1.7%) Total Assets 254,885 267,517 261,026 2.4% Customer Deposits 198,083 205,708 198,298 0.1% Total Equity 23,889

  47. Slide 47: Summary P&L Information – Q1 '06 vs. Q1 '07

    Summary P&L Information – Q1 ‘06 vs. Q1 ‘07 Q1 2006 Q1 2007 YoY Change % of % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets (%) Interest Income 6,623 10.3% 6,761 10.4% 2.1% Interest Expense (4,297) (6.7%) (2,962) (4.6%) (31.1%) Net Interest Income 2,326 3.6% 3,799 5.9% 63.3% Other Operating In

  48. Slide 48: Total assets rose by 2.4% Y-o-Y

    46 As a % of Total Interest Income 32.9% 52.0% 56.1 114.3 90.6 Q1 '07 Total assets rose by 2.4% Y-o-Y but fell 2.4% Q-o-Q 59.2 117.7 90.6 Q4 '06 42.8% 44.1% 54.0 108.8 91.0 Q3 '06 55.1 107.8 92.3 Q2 '06 Other Assets 44.8% 40.9% 57.6 105.1 92.2 Q1 '06 Int. from Loans 64.5 106.9 92.1 Q4 '05 48.0% 38.2

  49. Slide 49: Recap Bond sales of Rp120 bn in Q1 '07

    Recap Bond sales of Rp120 bn in Q1 ‘07 At Fair Value, Trading AFS HTM % of Mar. 2006 (Rp tn) Total (Mark to Market*) (Mark to Market#) (Nominal Value) Total Fixed Rate 0.86 2.06 1.35 4.27 4.72% Variable Rate 0.03 26.58 59.75 86.36 95.28% Hedge Bonds - - - - - Total 0.89 28.64 61.10 90.63 % of Total

  50. Slide 50: CAR rose to 27.1% on a 3.2% increase in capital

    48 27.1% 107.9 29.3 Q1 '07 112.2 28.4 Q4 '06 CAR rose to 27.1% on a 3.2% increase in capital 110.4 28.1 Q3 '06 110.7 27.8 Q2 '06 25.2% 110.7 27.9 Q1 '06 Total Capital (Rp tn) 115.9 27.4 Q4 '05 117.5 27.8 Q3 '05 115.9 27.5 Q2 '05 RWA (Rp tn) 26.6% 114.1 30.4 Q1 '05 25.3% 108.9 27.5 Q4 '04 BI Min Req

  51. Slide 51: Additional Factors

    Additional Factors ƒ Aggregate of IDR 25.176 tn (US$ 2.76 bn) in written-off loans as of end-March 2007, with significant recoveries on-going: ¾ 2001: IDR 2.0 tn ¾ 2002: IDR 1.1 tn ¾ 2003: IDR 1.2 tn Written-off Written-off ¾ 2004: IDR 1.08 tn Loans Loans ¾ 2005: IDR 0.818 tn (US$ 83.2 mn) ¾ 2006: I

  52. Slide 52: Summary Quarterly Balance Sheet: Q1 '06 – Q1 '07

    Summary Quarterly Balance Sheet: Q1 ‘06 – Q1 ‘07 Q1 ‘06 Q2 ‘06 Q3 ‘06 Q4 ‘06 Q1 ‘07 Y-o-Y Rp (tn) Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# % Change Total Assets 254.9 255.3 253.7 267.5 261.0 28.6 2.4 Cash 3.3 3.0 3.3 4.0 3.6 0.4 11.3 Current Accounts w/BI 22.2 20.2 19.5 21.6 19.8 2.2 (10.6) Certifi

  53. Slide 53: Summary P&L Information – Q1 2007

    Summary P&L Information – Q1 2007 Q-o-Q Q1 2006 Q4 2006 Q1 2007 Change % of % of Rp Rp % of (Billions) Av.Assets Rp (Billions) Av.Assets (Billions) Av.Assets (%) * * Interest Income 6,623 10.3% 6,458 9.9 6,761 10.2 4.7 Interest Expense (4,297) (6.7%) (3,566) (5.5) (2,962) (4.5) (16.9) Net Interest I

  54. Slide 54: Recap Bond Portfolio Details, 31 Mar 2007 – Bank Only

    Recap Bond Portfolio Details, 31 Mar 2007 – Bank Only Maturity Interest Nominal Fair Value Series Date Rate (%) Trading AFS HTM MtM Trading AFS HTM Fixed Rate FR0002 15-Jun-09 14.00% 68 111.79 76 FR0013 15-Sep-10 15.43% 20,000 120.36 24,071 FR0010 15-Mar-10 13.15% 1,350,000 100.00 1,350,000 FR0014 1

  55. Slide 55: Bank Mandiri Credit Ratings

    Bank Mandiri Credit Ratings S&P Moody’s Fitch Pefindo Bank Mandiri Ratings Long Term Foreign Currency Outlook Stable Positive Positive Long Term Bank Deposits B2 Long Term Foreign Currency Debt BB- WR BB- Short Term Outlook Stable Short Term Foreign Currency Debt B NP B Subordinated Debt Ba3 B+ Indi

  56. Slide 56: 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 54

  57. Slide 57: 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. Classification Classification Category 1 - Current Current Current 1% by by Aging Aging of of Category 2 – Special Mention 1 – 90 days 1 – 90 days 5% Interest Int

  58. Slide 58: 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

  59. Slide 59: Q1 2007 Movement in Category 1 and 2 Loans

    Q1 2007 Movement in Category 1 and 2 Loans Category 1 Loan Movements (Rp bn) – Bank Only Category 2 Loan Movements (Rp bn) – Bank Only 73,736 7 1,486 1,268 21 2,868 70,888 224 16,966 1,486 1,268 416 455 16,750 317 120 Beg. D/G to U/G D/G to U/G Net FX End Bal. Beg. Bal. Cat. 1 U/G to D/G to NPL Net

  60. Slide 60: Q1 2007 Loan Detail: Collectibility by Business Unit

    Q1 2007 Loan Detail: Collectibility by Business Unit Loan Profile: Q1 Collectibility (%) by BU - Bank Only Loan Profile: Q1 Collectibility (Rp bn) by BU - Bank Only 55,000 6.6% 3.0% 6.2% 0.9% 0.8% 17.9% 16.9% 0.6%1.0% 3.5% 50,000 1.9% 15.0% 11.3% 0.0% 0.7% 45,000 1.9% 2.5% 18.6% 8.6% 40,000 21.2% 5

  61. Slide 61: NPL Loan Detail: Quarterly by Interest Days Past Due

    NPL Loan Detail*: Quarterly by Interest Days Past Due Quarterly D/G to NPL & Interest DPD - Bank Only Quarterly NPL Stock & Interest DPD - Bank Only Rp tn 12,000 75.0% 30,000 60.0% Rp Value 60% Current (%) 65.5% Rp Value <30 Days (%) Current (%) 51.3% 51.9% 10,000 <30 Days (%) 62.5% 25,000 50% 53.0%

  62. Slide 62: Rp244 bn in loans were restructured in Q1 '07

    Rp244 bn in loans were restructured in Q1 ’07 Restructured Loan Movement 2000 - Q1 2007 Loans by Restructuring Type in Q1 2007 Others# IDR bn Write-Offs Repayments Restructuring B alance Maturity extension 63% Additional loans 1% LT loans w/convert. option 6% Maturity 27,423 25,123 29,542 23,987 21,

  63. Slide 63: Loan Portfolio Sector Analysis, Q1 2007

    Loan Portfolio Sector Analysis, Q1 2007 Mfg-Oth Mfg-F&B Agri Mfg-F&B 10.0% Agri 11.9% Constr Constr 8.1% Mfg-Oth Trading-Oth 12.0% Trading-Oth Mfg-Chem 8.0% Mining Mfg-Chem Mfg-P&P Oth<4% 8.0% 9.1% Mfg-Text Mining Trading-Ret Trans 4.2% 7.0% Bus Serv Bus Serv 4.3% Mfg-P&P Trading-Ret 6.9% Trans 4.5%

  64. Slide 64: Q1 2007 Loan Detail: Downgrades to NPL

    Q1 2007 Loan Detail*: Downgrades to NPL Loan Profile: Q1 Downgrades to NPL (Rp 235 bn) - Bank Only Corporate, Commercial & Small 100% Other Business loans downgraded to NPL in Oth<5% 5 USD Program Q1 totaled Rp 235 billion (0.22% of 90% Trading-Oth total loans). Of these loans: Agri-Oth 80% „ 7.1% w

  65. Slide 65: Q1 2007 Loan Detail: Non-Performing Loans

    Q1 2007 Loan Detail*: Non-Performing Loans Loan Profile: Q1 NPLs (Rp 17,180 bn) Bank Only Corporate, Commercial & Small 100% Program Business NPLs totaled Rp17,180 billion Small Synd in Q1, or 16.3% of total loans. Of these Oth<5% 90% Export NPLs in Q1: „ 21.2% remain current on interest Bus Serv 80

  66. Slide 66: Q1 2007 Loan Detail: New Downgrades to Category 2

    Q1 2007 Loan Detail*: New Downgrades to Category 2 Loan Profile: Q1 Downgrades to Cat. 2 loans (Rp 847 bn) - Bank Only Rp 847 billion (0.8% of total loans) 100% Other Other in Corporate, Commercial & Small 61+ USD Business loans were downgraded to 90% Oth<5% Category 2 in Q1. Of the 31-60 Invest Sma

  67. Slide 67: Q1 2007 Loan Detail: Category 2 Loans

    Q1 2007 Loan Detail*: Category 2 Loans Loan Profile: Q1 Category 2 Loans (Rp 14,561 bn) Bank Only Rp 14,561 billion (13.8% of total 100% loans) in Corporate, Commercial & Other UG to PL Small 61+ Oth<5% Small Business loans were in >2004 90% 31-60 Trans Category 2 in Q1. Of these Special Synd Mentio

  68. Slide 68: Loan Detail: Upgrades to PL

    Q1 2006 Loan Detail*: Upgrades to PL Loan Profile: Q1 Upgrades to PL (Rp 283 bn) - Bank Only Corporate, Commercial & Small 100% Small >2004 Oth<5% Business loans upgraded to PL in Q1 Constr totaled Rp 283 billion (0.3% of total Comm 90% WC loans). Of these loans: Trading IDR „ 84.9% were to Corporat

  69. Slide 69: Loan Detail: Performing Loans

    Q1 2006 Loan Detail*: Performing Loans Loan Profile: Q1 Performing Loans (Rp 74,282 bn) Bank Only Rp 74,282 billion (70.3% of total loans) 100% Other in Corporate, Commercial & Small Small Export Business loans were performing in 90% Oth<5% Synd 2 Q1. Of these performing loans in Q4: USD „ 55.4% are

  70. Slide 70: Q1 2007 Loan Detail: Restructured Loans

    Q1 2007 Loan Detail*: Restructured Loans Loan Profile: Q1 Restructured Loans (Rp 23,129 bn) Bank Only 100% Of the remaining Rp 23,129 billion in Program Small restructured Corporate, Commercial Oth<5% Synd 90% & Small Business loans in Q1, or 5 Comm 21.9% of total loans: Trading Export 80% „ 71.4% a

  71. Slide 71: Q1 2007 Loan Detail: IBRA Loans

    Q1 2007 Loan Detail*: IBRA Loans Loan Profile: Q1 IBRA Loans (Rp 2,821 bn) Bank Only 100% Rp 2,821 billion in loans purchased Oth<5% Program Small from IBRA remain on the books as of Mfg-Text IDR Comm 5 WC Q1, accounting for 2.7% of total 90% Mfg-NonM loans: 4 Mfg-Oth 80% „ 82.2% are performing „ 92

  72. Slide 72: Q1 2007 Loan Detail: Corporate Loans

    Q1 2007 Loan Detail: Corporate Loans Loan Profile: Q1 Corporate Loans Only (Rp 51,260 bn) Bank Only Rp 51,260 billion in loans were in the 100% 61+ Other Corporate portfolio in Q1, or 48.5% of 31-60 Export <30 total loans. Of the Corporate Loans in 90% 5 Oth<5% Synd Q1: 80% 3 >2004 „ 80.3% are perfo

  73. Slide 73: Q1 2007 Loan Detail: Commercial Loans

    Q1 2007 Loan Detail: Commercial Loans Loan Profile: Q1 Commercial Loans* Only (Rp 31,598 bn) Bank Only Rp 31,598 billion in loans were in the 100% Other PL UG Export Commercial portfolio in Q1, or 29.9% 90% 5 Oth<5% of total loans. Of the Commercial 61+ USD Loans in Q1: 43 Mfg-Text >2004 80% „ 79.9%

  74. Slide 74: Q1 2007 Loan Detail: Small Business Loans

    Q1 2007 Loan Detail: Small Business Loans* Loan Profile: Q1 Small Business Loans* Only (Rp 8,605 bn) Bank Only Rp 8,605 billion in loans were in the 100% USD Other PL UG 5 Small Business portfolio in Q1, or Oth<5% Program 4 8.1% of total loans. Of the Small 90% 61+ Bus Serv Business Loans* in Q1: 2

  75. Slide 75: Q1 2007 Loan Detail: Rupiah Loans

    Q1 2007 Loan Detail*: Rupiah Loans Loan Profile: Q1 Loans (Rp 56,789 bn) Bank Only Rp 56,789 billion in loans were 100% PL UG Oth<5% Other Rupiah denominated in Q1, or 53.8% 5 61+ 90% Small Export of total loans. Of the Rupiah Loans in Trans 34 Q1: 31-60 Mfg-Chem 80% >2004 „ 84.6% are performing loa

  76. Slide 76: Q1 2007 Loan Detail: Foreign Currency Loans

    Q1 2007 Loan Detail*: Foreign Currency Loans Loan Profile: Q1 FX Loans (Rp 34,673 bn) Bank Only Rp 34,673 billion in loans were 100% 61+ PL UG foreign currency denominated in Q1, Export 31-60 or 32.8% of total loans. Of the FX Comm 90% < 30 Oth<5% 5 Synd Loans in Q1: „ 75.7% are performing loans wit

  77. Slide 77: Credit Card portfolio continued to improve in Q1

    Credit Card portfolio continued to improve in Q1 Mandiri Visa Card Delinquency Rates (%) Monthly Charge-offs, NPLs & Recoveries (Rp Bn) 16.8% 30 DPD - Rp NPLs (90+DPD) 90 DPD - Rp 16.0% Write-Offs 30 DPD - Cards Recoveries 90 DPD - Cards 98.7 11.7% 87.5 11.2% 82.9 10.7% 9.2% 83.8 67.2 9.5% 7.2% 7.1%

  78. Slide 78: Summary of Principal Subsidiaries

    Summary of Principal Subsidiaries Bank Syariah Mandiri Mandiri Sekuritas AXA Mandiri • Equity Investment of Rp 732.39 billion • Equity Investment of Rp732.62 billion • Equity Investment of Rp85.34 billion • Total Assets of Rp10,385 billion, with • Total Assets Rp 2,448 billion, total • Total Assets

  79. Slide 79: Bank Syariah Mandiri

    Bank Syariah Mandiri Branch Network & Customer Growth Summary Balance Sheet (Rp Billions) Rp Bn 2004 2005 2006 Q1’07 812 759 Total Assets 6,870 8,273 9,612 10,385 Branches Cash & placement Customers (000s) 796 1,689 1,377 2,002 w/ BI Current Accounts & Placements 235 168 326 298 533 w/Other Banks Se

  80. Slide 80: Bank Syariah Mandiri

    Bank Syariah Mandiri Summary P&L (Rp billions) 2003 2004 2005 2006 Q1 ‘07 Total Operating Income 279.4 584.2 865.5 935.2 268.2 3rd Party Share on Returns 148.4 269.2 386.4 455.5 109.0 Bank's Share in Operating 131.1 315.0 479.1 479.7 159.1 Income Other Operating income 51.9 102.0 93.6 142.4 44.3 Ope

  81. Slide 81: Mandiri Sekuritas

    Mandiri Sekuritas Summary Balance Sheet Summary P&L Rp Bn 2004 2005 2006 Q1 ‘07 Rp Bn 2004 2005 2006 Q1 ‘07 Total Assets 1,435.7 1,258.7 2,367.4 2,448.1 Operating Revenue 244.0 197.3 221.6 78.5 Cash & Brokerage Commissions 15.6 20.9 20.2 13.0 117.4 51.8 80.1 302.9 Equivalent Investment Mgmt Fees 53.

  82. Slide 82: Staffing and Distribution Network Growth

    80 2,800 Q1 '07 6,256 Q1 '07 0 2,800 240 2006 6,265 2006 2,560 2005 6,025 90 2005 2,470 5,537 500 2004 2004 2,022 2003 4,716 490 2003 Staffing and Distribution Network Growth 1,559 2002 4,000 520 2002 ATM-Link Network 1,184 2001 3,160 500 2001 ATM Network 533 2000 211 2000 513 1999 1999 ATMs New 21,

  83. Slide 83: Loan growth, quality and provisioning relative to peers

    81 40.3% BCA 52% BII 44.9% Lippo 56% BNI Ratio of Provisions to NPL 48.1% BNI 60% Niaga Loan to Deposit Ratio 55.0% Mandiri 67% Permata 57.2% BII 75% Mandiri (%) (%) Loan growth, quality and provisioning relative to peers 72.5% BRI 82% Panin 75.5% Danamon 104% Danamon 80.5% Panin 155% BRI 83.1% Perm

  84. Slide 84: Asset and liability mix relative to peers

    82 10.8% BNI 4.8% Lippo 10.8% Mandiri 5.3% BCA Yield on Assets (p.a.) 11.4% Panin Cost of Funds (p.a.) 5.4% BNI 11.7% Lippo 6.2% BRI 12.5% BCA 6.9% Mandiri (%) (%) 12.7% BII 7.3% BII 13.3% Niaga 7.3% Panin 14.7% Danamon 7.9% Niaga 14.7% Permata 8.0% Danamon 16.9% BRI 8.2% Permata 42.1% BCA 27.7% Dan

  85. Slide 85: Efficiency measures relative to peers

    83 4.9% BRI 43.4% BCA 4.5% Permata 45.4% Panin 4.2% Lippo 50.0% BRI Cost/ Income 4.0% BII 50.3% Niaga Cost/Assets *Annualized 3.8% Danamon 50.5% Mandiri (%)* (%) 3.4% BNI 52.8% Danamon 3.1% Niaga 59.5% BNI 2.9% BCA 60.2% Lippo 2.4% Mandiri 62.4% BII 2.4% Panin 66.8% Permata 198 Danamon 61 Danamon 39

  86. Slide 86: Measures of scale and returns relative to peers

    84 345 Panin 11.1% Mandiri Return on Equity (After Tax) 397 Niaga 13.1% Permata 581 Permata 14.3% Panin 691 Lippo 15.1% Danamon ATMs 697 BII 16.6% Niaga (%) 779 Danamon 19.5% BII 971 BRI 22.6% BNI 2,272 BNI 23.7% Lippo 2,800 Mandiri 29.1% BCA Measures of scale and returns relative to peers 4,173 BCA

  87. Slide 87: Consolidated Balance Sheets – Assets

    85 BALANCE SHEETS As of March 31, 2007 and 2006 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION March 31,2007 March 31,2006 March 31,2007 March 31,2006 ASSETS 1. Cash 3,505,450 3,166,068 3,638,853 3,266,239 2. Placements with Bank Indonesia a. Current accounts with Bank Indonesia 19,376,755

  88. Slide 88: Consolidated Balance Sheets – Liabilities and Equity

    86 BALANCE SHEETS As of March 31, 2007 and 2006 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION March 31,2007 March 31,2006 March 31,2007 March 31,2006 LIABILITIES AND SHAREHOLDERS' EQUITY 1 Demand deposits a. Rupiah 30,963,241 30,176,496 33,246,615 31,486,315 b. Foreign currencies 14,388,3

  89. Slide 89: Statements of Profit and Loss

    87 STATEMENTS OF PROFIT AND LOSS For the periods from January 1 to March 31, 2007 and 2006 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION March 31,2007 March 31,2006 March 31,2007 March 31,2006 INCOME AND EXPENSES FROM OPERATIONS 1. Interest Income 1.1. Interest income a. Rupiah 5,113,566

  90. Slide 90: Statements of Commitments and Contingencies

    88 STATEMENTS OF COMMITMENTS AND CONTINGENCIES As of March 31, 2007 and 2006 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION March 31,2007 March 31,2006 March 31,2007 March 31,2006 COMMITMENTS Commitment Receivables 1. Unused fund borrowings facilities a. Rupiah - - - - b. Foreign currencie

  91. Slide 91: Management of the Bank as of March 31, 2007

    MANAGEMENT OF THE BANK AS OF MARCH 31, 2007 SHAREHOLDER Jakarta, April 20 , 2007 Board of Commissioners - Chairman : Edwin Gerungan *) Republic of Indonesia : 67.86% S. E & O - Deputy Chairman : Muchayat (Ultimate Shareholders) Board of Directors - Commissioner : Soedarjono PT Bank Mandiri (Persero)

  92. Slide 92: Earning Assets and Other Information

    EARNING ASSETS AND OTHER INFORMATION As of March 31, 2007 and 2006 (In Millions of Rupiah) BANK March 31, 2007 March 31, 2006 No DESCRIPTION SPECIAL SUB SPECIAL SUB CURRENT DOUBTFUL LOSS TOTAL CURRENT DOUBTFUL LOSS TOTAL MENTION STANDARD MENTION STANDARD I Related Parties A EARNING ASSETS 1. Placeme

  93. Slide 93: Foreign Exchange and Derivatives Transaction

    FOREIGN EXCHANGE AND DERIVATIVES TRANSACTION As of March 31, 2007 (In Millions of Rupiah) BANK NO TRANSACTION Contract Market Value Derivative Receivable & Payable Contract Value Hedging Others Receivable Payable Netting Agreement A. Exchange rate related 1 Spot - 1,082 - - - 2 Forward - 955,052 1,3

  94. Slide 94: Calculation of CAR

    92 CALCULATION OF CAR As of March 31, 2007 and 2006 (In Millions of Rupiah) BANK NO DESCRIPTION March 31, 2007 March 31, 2006 I. COMPONENTS A. CORE CAPITAL 23,093,819 21,632,308 1. Paid-Up Capital 10,315,984 10,144,789 2. Disclosed Reserves a. Agio 6,434,182 6,016,827 b. Disagio (-/-) - - c. Shares

  95. Slide 95: Loans Purchased from IBRA

    93 LOANS PURCHASED FROM IBRA January 1, 2007 to March 31, 2007 (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 loans purchased from IBRA NO DESCRIPTION Amount 1. Loan principal / outstanding balance as of Ma

  96. Slide 96: Financial Ratios

    FINANCIAL RATIOS As of March 31, 2007 and 2006 BANK NO KEYS RATIOS March 31, 2007 March 31, 2006 I. Capital 1. CAR by considering credit risk 27.14% 25.21% 2. CAR by considering credit risk and market risk 26.31% 24.55% 3. Premises and equipment to capital 26.27% 27.65% II. Earning Assets 1. Non-per

  97. Slide 97: Equity Research Contact Details

    Equity Research Contact Details BROKERAGE ANALYST TELEPHONE E-MAIL ABN AMRO Asia Securities Indonesia Aditya Srinath 6221-515-6016 aditya.srinath@id.abnamro.com BAHANA SECURITIES Ari Pitoyo 6221-250-5081 aripitoyo@bahana.co.id BNP PARIBAS PEREGRINE Tjandra Lienandjaja 6221-5798-4661 tjandra.lienandj

  98. Slide 98: For Additional Information

    97 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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