Pt Bank Central Asia Tbk · IDX:BBCA
Pt Bank Central Asia Tbk — Q3 2005 Earnings Presentation
32 slides from Pt Bank Central Asia Tbk's earnings presentation, Oct 24, 2005
Slide 1: Opportunities in a Changing Macro Environment
Opportunities in a Changing Macro Environment Third Quarter 2005 Results Analysts’ Meeting PT Bank Central Asia Tbk Jakarta, 24 October 2005
Slide 2: Agenda
Agenda Macro Environment Performance Overview Financial Review 2
Slide 3: Macro economic environment
Macro economic environment Inflationary pressure… 12.09% Inflation and SBI Rates 11.00% 1 month SBI 10.00% • Year on year inflation reached 9.1% and may rise 3-month SBI to 12.0% by year end due to inflationary pressure Inflation 9.51% 9.25% from the recent increases in fuel prices 9.25% 8.49% 9.10%
Slide 4: Impact on the banking sector
Impact on the banking sector Higher cost of funds and pressure on asset quality 1-month TD interest rates* Mar-05 Jun-05 Sep-05 BCA 5.50% 5.50% 7.00% • Higher costs of funds: Bank Mandiri 5.75% 6.50% 10.00% – Increase in reserve requirements and SBI rates led to higher deposit rates across the BNI 6
Slide 5: Agenda
Agenda Macro Environment Performance Overview Financial Review 5
Slide 6: Key Highlights
Key Highlights +/– YoY Change Third Party Deposits Rp. 127,432 billion 1.40% Outstanding Loans Rp. 50,974 billion 41.75% Net Interest Income Rp. 5,622 billion 15.75% Fee Based Income Rp. 1,603 billion 31.70% Operating Profit Rp. 3,625 billion 10.38% Net Profit Rp. 2,627 billion 12.26% Se
Slide 7: Retained position as transaction bank of choice
Retained position as transaction bank of choice Continued enhancement of services for customer convenience ATM Transactions 380 329,910 330,000 • Expansion of network and points of 370 Frequency (Millions) 310,000 Transaction Value (Rp.Millions) sales: 360 290,000 350 – 14 new branches (total 773) 3
Slide 8: Loan growth and secondary reserves
Loan growth and secondary reserves Q3-05 loan growth of Rp. 7.25 trillion Secondary Reserves (Rp. Billion) • Converting secondary reserves to 7,253 Loans higher yielding assets through loan 34,404 Additional expansion and utilization of existing 32,699 29,213 5,678 Reserve 25,236 facilities Req’mnt
Slide 9: Pricing for optimum balance of liquidity and margin
Pricing for optimum balance of liquidity and margin Comparison of Interest Rates Commercial • Maintaining interest rates of Demand 14% Rupiah Loan Deposit and Saving accounts at relatively low levels 12% – Demand deposits: no increase – Saving accounts: increased by 25 b.p 10% SBI 8% 1-monthTD 6% •
Slide 10: Optimizing net interest income
Optimizing net interest income Through earning asset and third party funding composition Government Bond and loan profile Variable Fixed Rate Rate 21.70% • Maintaining a balanced variable and 78.30% fixed rate asset portfolio to safeguard interest income Third Party Funds Demand • Favorable funding
Slide 11: Net interest margins maintained
Net interest margins maintained Increased interest income offset rising cost of funds • Despite a rising interest rate Net Interest Margin environment, net interest margin rose to 5.81% from 5.65% in June 2005 5.59% 5.65% 5.81% • Net interest margin includes negative 5.25% 5.28% impact of additional
Slide 12: NPL below industry average
NPL below industry average Effective risk management enables maintenance of loan quality (Bank only) • NPL within BI maximum guidelines 6% BI maximum NPL of 5% • Continued enhancement of lending and 5% risk management infrastructure 4% NPL Ratio - net NPL Ratio - gross • Considering unfavorable econ
Slide 13: Agenda
Agenda Macro Environment Performance Overview Financial Review 13
Slide 14: Balance Sheet Highlights
Balance Sheet Highlights (Rp Billions) Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 YoY Change Total Assets 141,329 143,789 149,169 148,057 148,732 148,550 3.31% Secondary Reserves – Gross 38,562 34,404 32,699 29,213 25,236 12,305 (64.23%) Loans - Gross 33,470 35,960 40,360 41,591 43,710 50,974 41.75%
Slide 15: Income Statement Summary
Income Statement Summary (Rp Billions) Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 YoY Change Net Interest Income 3,197 4,857 6,585 1,807 3,656 5,622 15.75% Other Operating Income Other fees and commissions 529 871 1,227 355 718 1,100 26.29% Gain on foreign exchange - net 99 153 200 44 84 167 9.15% Ga
Slide 16: Financial Ratio Summary
Financial Ratio Summary (Bank only) % Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 ROA 3.11 3.20 3.21 3.22 3.34 3.35 ROE 25.86 27.51 28.32 26.58 27.42 27.35 NIM 5.19 5.25 5.28 5.59 5.65 5.81 CAR 28.65 25.84 23.95 26.64 25.79 22.21 LDR 27.05 28.50 30.60 32.42 34.01 39.95 Cost Efficiency Ratio 44.79 43.1
Slide 17: Improved profitability levels
Improved profitability levels Led by net interest margin improvement and fee based income growth Net Interest Margin (Rp. Billions) Net Interest Income 6,000 5.59% 5.65% 5.81% Fee Based Income 5,622 Net Profit 5.25% 5.28% 5,000 4,857 3,920 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 4,000 Fee Based Income 3,
Slide 18: Balancing a favorable earning asset composition
Balancing a favorable earning asset composition BCA’s earning asset mix provided stability in a volatile environment Earning Assets Other* (Rp. Billions) Government Bonds (Rekap BCA - HTM) Loan - Gross Secondary Reserves - Gross 100% 19,000 20,805 24,038 27,316 25,578 90% Government Bonds and loan p
Slide 19: Substantial third quarter loan expansion
Substantial third quarter loan expansion 41.83% rise in lending y.o.y; LDR reached 39.95% (Bank only) Consumer 60,000 SME & Commercial 39.95% Corporate 50,000 34.01% • Rp. 15,029 billion year-on- LDR 32.42% 17.87% 28.50% 30.60% year loan growth 40,000 17.16% 14.97% 16.27% Non-Corporate 13.58% loans,
Slide 20: Steady growth in consumer lending
Steady growth in consumer lending Consumer loans reached Rp. 9.11 trillion at the end of Q305 Consumer Loans Consumer Loans (Bank only) (Bank only, Rp. Billions) QoQ YoY Sep '04 Jun '05 Sep '05 Change Change 9,000 11.94% Mortgage 1,647 2,878 3,320 15.36% 101.58% Mortgage Vehicles Credit Cards 8,000
Slide 21: Higher interest income contribution from loans
Higher interest income contribution from loans Supported by strong trend in loan expansion and improved net interest margin Outstanding Loans (Rp. Billions) Earning Assets Income Contribution 50,962 43,709 40,384 41,589 100% 4.16% 4.86% 5.19% 5.98% 6.58% 35,933 90% 33.07% 34.08% 38.84% 38.75% 80% 39
Slide 22: A diversified loan portfolio
A diversified loan portfolio Exposure to each industry sector below 10% Top Ten Credit Sectors As of September 30, 2005 Sectors % Automotive & Transportation 7.54% Distributor, Wholesaler, Retailer 6.96% Consumer Goods, Household & Office Supplies 6.69% Textile and Garments 5.85% Public Utilities &
Slide 23: Loan quality remains satisfactory
Loan quality remains satisfactory NPLs in line with PBI No. 7/2/PBI/2005 (Bank only) Loan Quality 3.50% 431.98% (Bank only, Rp Billions) 347.93% Mar-05 Jun-05 Sep-05 3.00% 207.90% 179.45% 158.20% 150.93% Current 39,799 41,677 48,816 NPL Ratio - net Special Mention 1,164 1,277 1,303 2.50% NPL Ratio -
Slide 24: Securing funds by enhancing customer convenience
Securing funds by enhancing customer convenience Cost of funds increased due to price adjustments Interest Rates Adjustment 10% Third Party Deposits & Cost of Funds 9% Demand Deposits (Bank Only, Rp. Billions) 8% Savings Demand Deposits Savings 7% TD (1-month) TD Cost of funds 3.98% 6% 3.94% 3.93% 3
Slide 25: Steady improvement in efficiency ratio
Steady improvement in efficiency ratio Operating Expenses (Rp. Billions) 4,000 43.27% 43.92% 43.10% 135 43.14% 3,500 42.09% 160 YoY 3,000 (Rp. Billions) Sep-04 Jun-05 Sep-05 Change 80 1,849 General & 1,146 827 1,339 16.84% 2,500 Administrative 74 1,646 2,000 Salaries & employees’ 1,423 1,171 1,646 1
Slide 26: In Summary
In Summary 1. Changing macroeconomic environment 2. Maintained position as the transaction bank of choice 3. Strong loan growth supported by funding and liquidity position 4. Improved net interest and fee based income 5. Maintained NPL ratio below industry average 26
Slide 27: Going Forward
Going Forward Maintaining profit & asset quality • Continue securing quality funding mix by maintaining position as transaction bank of choice Network Expansions: Secure source of New branch offices, ATMs, Quality Third EDCs Party Funding Improved Enhancement of Customer delivery channels Convenienc
Slide 28: Thank You
Thank You 28
Slide 29: Appendix
Appendix 29
Slide 30: Recent Awards & Accolades
Recent Awards & Accolades • Asia Money Magazine – Asia Money Polls 2005: “Best Overall Domestic Cash Management in Indonesia”, “Best Cash Management Bank in Indonesia”, “Best Domestic FX Bank in Indonesia”, “Best Domestic FX Provider in Indonesia” • The Asian Banker – Excellence in Retail Financial
Slide 31: BCA Share Performance
BCA Shareholding Performance vs. JCI BCA Share Performance January 3 to October 21, 2005 Rp. JCI Index 4,500 1,250 4,000 1,200 3,500 1,150 3,000 1,100 2,500 1,050 BCA Shareholding Structure 2,000 1,000 1,500 BBCA As of September 30, 2005 JCI 950 1,000 500 900 Number of Ownership Shares - 850 Jan-05
Slide 32: Government bonds maturity
Government bonds maturity 18,000 (Bank only, Rp. Billions) 16,000 Variable - Market Participation 14,000 Variable - Recap Bonds Fixed - Market Participation 12,000 Fixed - Recap Bonds 10,000 8,000 6,000 4,000 2,000 - Maturity 2006 2007 2008 2009 2010 2011 2012 2013 2014 (Rp Billion) 2006 2007 2008 2