PT Bank Danamon Indonesia Tbk Class A · IDX:BDMN
PT Bank Danamon Indonesia Tbk Class A — Bank Danamon Indonesia — Q1 2008 Earnings Presentation
37 slides from PT Bank Danamon Indonesia Tbk Class A's earnings presentation, Apr 22, 2008
Slide 1: Analyst Briefing First Quarter 2008 Results
Analyst Briefing First Quarter 2008 Results Jakarta, 22 April 2008 Disclaimer: This report has been prepared by P.T. Bank Danamon Indonesia Tbk independently and is circulated for the purpose of general information only. It is not intended to the specific person who may receive this report. The info
Slide 2: Agenda
Agenda • 2008 Performance • Financial Results • Asset Quality • Business Update • Latest Update • Appendix Slide 2
Slide 3: Highlights of First Quarter 2008 Results
Highlights of First Quarter 2008 Results • Loans grew by 30% to Rp 56 trillion; driven by mass market and wholesale businesses • Total funding increased by 10% to Rp 74 trillion; current and savings accounts grew by 35% and 18% respectively • Operating income rose by 12% to Rp 2,418 billion • Net pr
Slide 4: Highlights of Income Statements
Highlights of Income Statements Rp. billion 1Q07 1Q08 YoY 4Q07 1Q08 QoQ \ Interest Income 2,934 3,149 7% 3,062 3,149 3% Interest Expense (1,278) (1,172) (8%) (1,197) (1,172) (2%) Net Interest Income 1,656 1,977 19% 1,865 1,977 6% Fee Income 503 441 (12%) 328 441 34% Operating Income 2,159 2,418 12%
Slide 5: Highlights of Balance Sheets
Highlights of Balance Sheets Rp. billion 1Q07 1Q08 YoY 4Q07 1Q08 QoQ \ Total Assets 84,946 92,178 9% 89,410 92,178 3% Loans (gross) 1) 43,109 55,916 30% 53,330 55,916 5% Government Bonds 19,453 15,010 (23%) 15,808 15,010 (5%) Total Deposits 57,562 62,002 8% 60,937 62,002 2% Current Account 5,022 6,7
Slide 6: Key Ratios
Key Ratios % 1Q07 1Q08 YoY 4Q07 1Q08 YoY \ Net Interest Margin 1) 9.8 11.3 1.5 10.9 11.3 0.4 Cost / Income 47.5 50.2 2.7 51.5 50.2 (1.3) Credit Cost / Avg.Earn. Assets 2.9 2.0 (0.9) 1.5 2.0 0.5 2) ROAA 2.3 2.5 0.2 2.3 2.5 0.2 ROAE 3) 21.2 20.6 (0.6) 21.5 20.6 (0.9) Loan / Deposit 75.7 89.4 13.7 88.1
Slide 7: Net interest margin continues to improve to 11.3%
Net interest margin continues to improve to 11.3% on the back of sustained asset yield and lower cost of funds Net Interest Income Net Interest Margin Rp. billion %, annualized Wholesale Earning Asset Yield Retail & SME 16.0 16.0 16.1 16.0 15.6 Mass Market 1,977 17% 1,656 7.0 6.6 6.2 6.1 6.0 23% 19%
Slide 8: Fee income amounted to Rp 441 billion, 18% of operating income
Fee income amounted to Rp 441 billion and contributed to 18% of operating income Credit related fees rose by 44% driven by strong Fee Income growth in loans and trade finance Rp. billion Wholesale Rp. billion 1Q07 1Q08 YoY Retail & SME Mass market Credit related fees 176 251 43% 503 441 Cash managem
Slide 9: Increase in operating expenses due to mass market expansion
Increase in operating expenses was due to the expansion in mass market businesses Manpower Costs Rp. billion Rp billion 1Q07 1Q08 YoY Variable Costs YoY Fixed Costs 777 17% 665 Wholesale 171 161 (6%) 36% 14% 37% Retail & SME 468 520 11% 63% 64% 19% Mass Market 388 532 37% 1Q07 1Q08 Adira Finance 179
Slide 10: Cost of credit declined by 21% despite 30% loan expansion
Cost of credit declined by 21% despite 30% loan expansion, reflecting robust risk management Cost of Credit 1) Cost of Credit / Avg. Earning Assets 2) Rp. billion %, Annualized Wholesale Retail & SME Avg. Credit Cost Mass market 2007: 2.3% 2.9% 2.8% 365 2.0% 2.0% 44% 290 14% 1.5% 12% 86% 54% 1Q07 1Q
Slide 11: Loans expanded by 30% driven by mass market and wholesale
Loans expanded by 30% largely driven by mass market and wholesale businesses Outstanding Loans Composition Loan Growth Rp. billion Year-on-Year Rp. billion Mar-07 Mar-08 YoY 55,916 53,330 50,153 46,394 Wholesale 12,639 17,463 4,824 38% 31% 43,109 30% 29% 29% SME 8,360 9,055 695 8% 29% 17% 16% 18% 19
Slide 12: Corporate loans grew by 56%
Corporate loans grew by 56% partly driven by strong growth in trade financing Wholesale Loan Composition Loan Growth Rp. billion Year-on-Year 17,463 Rp. billion Mar-07 Mar-08 YoY 16,286 14,734 13,354 12,639 49% Corporate 5,535 8,630 3,095 56% 47% 48% 44% 46% JFAB 1) 1,560 1,341 (219) (14%) 8% 8% 9%
Slide 13: Retail loans rose by 39%
Retail loans rose by 39% on the back of strong growth in mortgage and credit card Retail Loans Composition Loan Growth Rp. billion Year-on-Year Rp. billion Mar-07 Mar-08 YoY 4,870 4,710 4,411 Multipurpose & 24% 901 1,184 283 31% 3,971 25% others 1) 26% 3,492 6% Personal Loan 213 279 66 31% 27% 6% 7%
Slide 14: Mass market loans grew by 32%
Mass market loans grew by 32% on the back of strong growth in micro lending and motorcycle financing businesses Mass Market Loan Composition Loan Growth Rp. billion Year-on-Year Rp. billion Mar-07 Mar-08 YoY 24,528 23,383 22,036 Hire Purchase 242 456 215 88% 13% 20,208 14% 18,618 14% 15% Cars 3,010
Slide 15: Government bonds steadily declined to 17% of assets
Government bonds steadily declined and now represented 17% of the bank’s assets Government Bonds Composition The duration of government bonds is 3.6 Rp. billion years as of March 31, 2008 as compared to 2.1 years a year earlier Variable Rate Fixed Rate 23% G. Bonds as % of Assets Rp. bn Mar-07 Mar-0
Slide 16: Current and savings accounts rose by 35% and 18%
Current and savings accounts rose by 35% and 18% respectively and represented 25% of total funding Breakdown of Interest Bearing Funds Long Term Funding Rp. billion As of March 31 Current Account Savings Sub-Debts Others Time Deposits Long Term Funding 2008: 23% 2008: 29% 2007: 29% YoY 2007: 13% 72,
Slide 17: Agenda
Agenda • 2008 Performance • Financial Results • Asset Quality • Business Update • Latest Update • Appendix Slide 17
Slide 18: Loan portfolio is well diversified across economic sectors
Loan portfolio is well diversified across economic sectors Loans by Economic Sector Loans by Interest Rate As of March 31 As of March 31 Trading, Manufacturing Variable Rate Restaurant & Hotel 2008: 16% 2008: 51% 2008: 28% 2007: 16% 2007: 47% 2007: 28% Business Services 2008: 9% 2007: 6% Transportat
Slide 19: Non-performing loans ratio declined to 2.3%
Non-performing loans ratio steadily declined to 2.3% from 3.2% a year earlier Loan’s Collectibility % Total 3.2% 3.1% 2.8% 2.3% 2.3% 8.4% 7.7% 8.2% 7.7% Non-Performing 9.9% Special Mention 88.5% 89.5% 89.5% 90.0% 86.9% Current Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Non-Performing Loans Breakdown % Total
Slide 20: Special mention loans are mostly in DPD 1-30 days
Special mention loans are mostly in DPD 1-30 days category Special Mention Loans Aging of Special Mention Loans Rp. billion % Total 0 Day 1 - 30 Days Mass market Retail & SME Wholesale 31 - 60 Days 61 - 90 Days 4,074 4,190 4,173 3,737 2% 9% 9% 8% 8% 8% 5% 1% 3,740 12% 2% 13% 13% 14% 15% 15% 15% 6% 1
Slide 21: Adequate loan loss provision to cover non performing loans
Adequate loan loss provision to cover non performing loans Non Performing Loans by Segments Loan Loss Provision / NPL 1) Rp. billion % Mass market Retail & SME Wholesale General Specific 158 156 161 153 156 1,359 1,331 1,304 1,258 1,162 27% 32% 22% 32% 90 23% 95 88 94 89 41% 42% 39% 40% 45% 63 65 71
Slide 22: Agenda
Agenda • 2008 Performance • Financial Results • Asset Quality • Business Update • Latest Update • Appendix Slide 22
Slide 23: Self Employed Mass Market (SEMM) Business
Self Employed Mass Market (SEMM) Business Outstanding Loans SEMM also known as Danamon Simpan Pinjam Rp. billion (DSP) was established in 2004 to serve and help micro and small scale enterprises gain 8,600 9,098 7,386 8,158 better access to banking services. Below are 6,539 two business models of DS
Slide 24: Self Employed Mass Market (SEMM) Business
Self Employed Mass Market (SEMM) Business Cost of credit Asset Quality % of Average Loans, annualized • Cost of credit stood at 5.7% of average loans in the first quarter of 2008 as Average 2007: 4.2% compared to 3.8% in the previous year 5.7% 5.0% 4.9% • 30+ Days Past Due (DPD 30+) loans as a 3.8%
Slide 25: Consumer Mass Market (CMM) Business
Consumer Mass Market (CMM) Business Outstanding Loans CMM offers personal loans to salaried Rp. billion individuals. Below are two business models of 1,185 CMM: 996 776 Worksite Model 581 425 • Currently CMM operates 93 units to sell personal loans to employees of selected companies in cities Mar-07
Slide 26: Adira Finance (auto financing business)
Adira Finance (auto financing business) New financing Danamon’s consumer auto financing Rp. billion business is managed through its 75% owned Car subsidiary, Adira Finance Motorcycles 3,000 2,898 2,877 2,664 Business Performance 2,196 • Outstanding receivables rose by 21% to Rp 13.8 trillion • Cost
Slide 27: Adira Finance (auto financing business)
Adira Finance (auto financing business) Rp. billion 1Q07 1Q08 YoY 4Q07 1Q08 QoQ New Financing Units 194,240 247,023 27% 251,632 247,023 (2%) New Financing Volume 2,196 2,877 31% 2,898 2,877 - O/S Receivables 11,414 13,789 21% 13,385 13,789 3% Net Interest Income 1) 540 652 21% 638 652 2% Fee Income
Slide 28: Adira Finance (auto financing business)
Adira Finance (auto financing business) Cost of credit NPL and Repo Assets % of Average Receivables % of Receivables 2.0% Average 2007: 4.6% Non performing loans 5.0% 5.0% 1.5% 4.4% 4.3% 1.0% 3.1% 0.5% Repossessed assets 0.0% 1Q07 2Q07 3Q07 4Q07 1Q08 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Loss on Repo.
Slide 29: Agenda
Agenda • 2008 Performance • Financial Results • Asset Quality • Business Update • Latest Update • Appendix Slide 29
Slide 30: Latest Updates
Latest Updates Danamon held its annual general meeting of shareholders (AGMS) on April 3, 2008. The AGMS approved among others: • To acquit and discharge the Board of Directors and the Board of Commissioners for their management and supervision in the Annual General fiscal year that ended on Decembe
Slide 31: Board of Commissioners
Board of Commissioners Ng Kee Choe JB Kristiadi Milan Robert Shuster Harry Arief S. Sukadis President Commissioner Vice President Commissioner Commissioner (Independent) Commissioner (Independent) Commissioner since 2004 Commissioner since 2005 Commissioner since 2000 Commissioner since 2003 Chairma
Slide 32: Board of Directors
Board of Directors Sebastian Paredes Joseph Luhukay* Muliadi Raharja Ali Yong President Director Vice President Director, Legal Director, Operation & CREM Director, Self-Employed Mass Compliance & Human Resources Director since 1999 and joined Market Business President Director since 2005 Previously
Slide 33: Agenda
Agenda • 2008 Performance • Financial Results • Asset Quality • Business Update • Latest Update • Appendix Slide 33
Slide 34: Shareholding Structure
Shareholding Structure Daily share price and trading volume Shareholding Structure BDMN IJ As of March 31, 2008 Daily trading volume in thousands Share price in Rupiah Asia Financial (Indonesia) 67.89% 30,000 9,000 25,000 8,000 Share Price 20,000 7,000 Public 32.11% 15,000 6,000 10,000 5,000 Asia Fi
Slide 35: Credit Rating
Credit Rating Danamon PEFINDO Corporate Rating idAA+ / Stable Bond Rating idAA+ / Stable Standard & Poor’s Long-term / Short-term Local Currency BB- / Stable / B Long-term / Short-term Foreign Currency BB- / Stable / B Subordinated Debt B / Stable Long-term / Short-term Foreign Currency BB- / Positi
Slide 36: Capital Adequacy Ratio (CAR) stood at 19.7%
Capital Adequacy Ratio (CAR) stood at 19.7% Movement of Capital Adequacy Ratio % Rp. billion Mar-07 Mar-08 YoY Tier 1 Capital 8,722 11,029 26% 4.5 Tier 2 Capital 3,890 4,056 4% (0.7) Investments (1,286) (1,680) 31% 20.6 19.7 Total Capital after 11,326 13,405 18% (4.7) Investment Risk Weighted 55,121
Slide 37: Thank You
Thank You Investor Relations Bank Danamon Menara Bank Danamon, 6th Floor Jl. Prof. Dr. Satrio Kav. E4 No.6 Mega Kuningan, Jakarta 12950 Phone: +62 21 5799 1001-03 Fax: +62 21 5799 1445 www.danamon.co.id
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