PT Bank Danamon Indonesia Tbk Class A · IDX:BDMN

PT Bank Danamon Indonesia Tbk Class A — Bank Danamon Indonesia — 9M 2008 Earnings Presentation

33 slides from PT Bank Danamon Indonesia Tbk Class A's earnings presentation, Oct 15, 2008

  1. Slide 1: Analyst Briefing First Nine Months 2008 Results

    Analyst Briefing First Nine Months 2008 Results Jakarta, 15 October 2008 Untuk Anda, Bisa

  2. Slide 2: Agenda

    Agenda • First Nine Months 2008 Performance • Financial Results • Asset Quality • Business Update • Appendix Slide 2 Untuk Anda, Bisa

  3. Slide 3: Highlights of First Nine Months 2008 Results

    Highlights of First Nine Months 2008 Results • Loans grew by 33% to Rp 67 trillion largely driven by mass market business • Third party deposits rose by 22% to Rp 72 trillion; total funding increased by 20% to Rp 84 trillion • Net Interest Income increased by 18% to Rp 6,231 billion • Net profit aft

  4. Slide 4: Highlights of Income Statement

    Highlights of Income Statement 9M07 9M08 YoY 1Q08 2Q08 3Q08 QoQ Net Interest Income 5,272 6,231 18% 1,977 2,079 2,175 5% Fee Income 949 1,619 71% 453 593 573 (3%) Operating Income before Gain (Loss) 6,221 7,850 26% 2,430 2,672 2,748 3% on Sale of Marketable Securities Gain (Loss) on Sale of Marketab

  5. Slide 5: Highlights of Balance Sheet

    Highlights of Balance Sheet 9M07 9M08 YoY 1Q08 2Q08 3Q08 QoQ Total Assets 87,987 103,462 18% 92,178 96,582 103,462 7% Loans (gross) 1) 50,153 66,523 33% 55,917 61,207 66,523 9% Government Bonds 16,749 12,754 (24%) 15,010 13,129 12,754 (3%) Total Deposits 58,853 71,709 22% 61,996 65,939 71,709 9% Cur

  6. Slide 6: Key Ratios

    Key Ratios 9M07 9M08 YoY 1Q08 2Q08 3Q08 QoQ Net Interest Margin 1) 10.4 11.4 1.0 11.3 11.5 11.4 (0.1) Cost / Income 46.8 52.6 5.8 50.2 52.2 55.3 3.1 Credit Cost/Earning Assets 2) 2.6 1.8 (0.8) 2.0 1.9 1.6 (0.3) ROAA 2.5 2.4 (0.1) 2.5 2.5 2.4 (0.1) ROAE 23.4 22.5 (0.9) 20.6 23.6 23.3 (0.3) Loan / Dep

  7. Slide 7: NIM stood at 11.4% in the third quarter supported by high asset yield

    NIM stood at 11.4% in the third quarter supported by high asset yield Net Interest Income Net Interest Margin #* +' % Wholesale Earning Asset Yield Retail & SME 16.8 16.0 16.0 16.1 16.1 Mass Market 6,231 5,272 6.2 6.1 6.0 6.0 6.9 17% 23% Cost of Funds 19% 11.3 11.5 11.4 10.9 10.9 20% 64% 57% 9M07 9M

  8. Slide 8: Non-interest income contributed to 19% of operating income

    Non-interest income contributed to 19% of operating income Fee Income Rp. billion 9M07 9M08 YoY #* Wholesale Fee Income 949 1,619 71% Retail & SME Credit related fees 592 769 30% Mass market Cash management 226 237 5% 1,619 Treasury products (51) 236 NM Adira Finance 39 155 297% 27% Adira Insurance

  9. Slide 9: Increase in operating expenses attributable to mass market expansion

    Increase in operating expenses was largely attributable to mass market businesses expansion Manpower Costs Rp billion 9M07 9M08 YoY #* YoY Variable Costs Fixed Costs 2,589 32% Wholesale 525 489 (7%) 1,956 34% 43% 31% Retail & SME 1,356 1,666 23% 69% 66% 28% Mass Market 1,243 1,896 53% 9M07 9M08 Adir

  10. Slide 10: Cost of credit declined by 15% despite 33% loan expansion

    Cost of credit declined by 15% despite 33% loan expansion Cost of Credit 1) Cost of Credit / Avg. Earning Assets 2) #* +' % Wholesale Retail & SME 3.0% Mass market Cost of credit in 2007: 2.3% 1,018 2.5% 863 2.0% 2.0% 22% 2.0% 1.9% 9% 12% 10% 1.5% 1.6% 1.5% 1.0% 66% 81% 0.5% 1) Cost of credit compri

  11. Slide 11: Loans expanded by 33% largely driven by mass market businesses

    Loans expanded by 33% largely driven by mass market businesses Outstanding Loans Composition Loan Growth #* , , YoY Rp. billion Sep-07 Sep-08 66,523 Rp.bn % 61,207 55,917 53,330 Wholesale 14,734 21,421 6,687 45%* 50,153 32% 32% 31% 30% SME 8,972 9,861 889 10% 29% 15% 16% 17% 16% Retail 4,411 5,710 1

  12. Slide 12: Wholesale loan growth driven by trade financing business

    Wholesale loan growth driven by trade financing business Wholesale Loan Composition Loan Growth #* , , YoY Rp. billion Sep-07 Sep-08 21,421 Rp.bn % 19,368 17,463 Corporate 7,061 10,446 3,385 48% 16,286 14,734 48% 46% 49% JFAB 1) 1,361 2,044 683 50% 47% 48% 9% 10% 8% 8% Commercial 6,312 8,931 2,619 4

  13. Slide 13: Retail loans rose by 29% on mortgage and credit card growth

    Retail loans rose by 29% on the back of strong growth in mortgage and credit card receivables Retail Loans Composition Loan Growth #* , , YoY Rp. billion Sep-07 Sep-08 Rp.bn % 5,710 Multipurpose & 5,391 1,143 1,302 159 14% others 1) 4,710 4,870 23% 4,411 23% Personal Loan 302 264 (38) (13%) 25% 24%

  14. Slide 14: Mass market loans grew by 34% driven by motorcycle financing and micro lending

    Mass market loans grew by 34% largely driven by motorcycle financing and micro lending Mass Market Loan Composition Loan Growth #* , , YoY Rp. billion Sep-07 Sep-08 Rp.bn % 29,531 26,512 Hire Purchase 364 736 372 102% 24,528 13% 23,383 22,036 13% Cars 3,098 3,741 643 21% 13% 14% 14% 43% Motorcycles

  15. Slide 15: Government bonds represented 12% of the bank's assets

    Government bonds represented 12% of the bank’s assets Government Bonds Composition YoY Duration #* Rp. billion Sep-07 Sep-08 Rp.bn % (years) Variable Rate Fixed Rate Held to 4,201 2,335 1,866 (44%) 5.2 Bonds / Assets maturity 19% 18% 16% 14% Available 12% 11,328 10,217 1,111 (10%) 2.0 16,749 for sal

  16. Slide 16: Total deposit rose by 22% to Rp 71.7 trillion

    Total deposit rose by 22% to Rp 71.7 trillion, representing 86% of the bank’s funding Breakdown of Interest Bearing Funds Long-Term Funding #* ( 8 Current Account Savings Change Sub-Debt Others Time Deposits Long Term Funding YoY 2008: 23% 2008: 19% 83,890 2007: 24% 20% 2007: 22% 78,743 73,717 14% 8

  17. Slide 17: Consolidated Capital Adequacy Ratio stood at 16.6%

    Consolidated Capital Adequacy Ratio stood at 16.6% Movement of Capital Adequacy Ratio Rp. billion Sep-07 Sep-08 YoY Tier 1 Capital 9,051 10,710 18% 19.3 Tier 2 Capital 4,021 1,634 (59%) (1.1) (0.1) Investments (268) (352) 31% 16.6 Total Capital after (1.5) 12,804 11,992 (6%) Investment Risk Weighted

  18. Slide 18: Agenda

    Agenda • First Nine Months 2008 Performance • Financial Results • Asset Quality • Business Update • Appendix Slide 18 Untuk Anda, Bisa

  19. Slide 19: Loan portfolio is well diversified across economic sectors

    Loan portfolio is well diversified across economic sectors Loans by Economic Sector Loans by Interest Rate ( 8 ( 8 Trading, Restaurant Manufacturing & Hotel 2008: 16% 2007: 17% Variable Rate 2008: 26% 2008: 54% 2007: 28% Business Services 2007: 47% 2008: 13% 2007: 8% Transportation, warehousing & co

  20. Slide 20: Non-performing loans ratio steadily declined to 2.1%

    Non-performing loans ratio steadily declined to 2.1% from 2.8% a year earlier Loan’s Collectibility + > = 2.8% 2.3% 2.3% 2.3% 2.1% 7.7% 7.0% 7.2% Non-Performing 7.7% 8.2% Special Mention 90.0% 90.7% 90.7% 89.5% 89.5% Current Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Non-Performing Loans Breakdown + 4 < = 1

  21. Slide 21: Special mention loans are mostly in DPD 1-30 days category

    Special mention loans are mostly in DPD 1-30 days category Special Mention Loans Aging of Special Mention Loans #* + ( ) = Mass market Retail & SME Wholesale 0 Day 1 - 30 Days 31 - 60 Days 61 - 90 Days 4,658 4,173 4,210 1% 8% 8% 8% 9% 7% 4,190 11% 3,737 1% 2% 2% 15% 13% 15% 14% 14% 13% 12% 12% 2% 13

  22. Slide 22: 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) #* + Mass market Retail & SME Wholesale General Specific 161 162 156 156 152 1,331 1,333 1,333 1,258 1,162 32% 25% 26% 22% 90 91 23% 94 89 85 31% 31% 41% 39% 40% 44% 43% 65 71 67

  23. Slide 23: Agenda

    Agenda • First Nine Months 2008 Performance • Financial Results • Asset Quality • Business Update • Appendix Slide 23 Untuk Anda, Bisa

  24. Slide 24: Self Employed Mass Market Business

    Self Employed Mass Market Business Outstanding Loans SEMM also known as Danamon Simpan Pinjam #* (DSP) was established in 2004 to serve and help 10,278 micro and small scale enterprises gain better access 9,099 9,548 8,158 8,600 to banking services. It currently operates two business models: Wet Mar

  25. Slide 25: Self Employed Mass Market Business

    Self Employed Mass Market Business Cost of credit Asset quality % of Average Loans, annualized • Cost of credit stood at 3.6% of average loans in the third quarter of 2008 as compared to 4.3% in the previous quarter 5.7% 4.9% • 30+ Days Past Due (DPD 30+) loans as % of total 4.3% 3.6% 3.3% loans was

  26. Slide 26: Consumer Mass Market Business

    Consumer Mass Market Business Outstanding Loans Consumer Mass Market Business (CMM) offers #* personal loans to salaried individuals. 2,049 CMM currently operates two business models: 1,574 Worksite Model 1,185 996 CMM continue expanding its network (Points of 776 Sales) to sell personal loans to em

  27. Slide 27: Adira Finance (auto financing business)

    Adira Finance (auto financing business) New Financing • New financing grew by 36% to Rp 10.7 trillion #* in the first nine months of 2008 Car 4,285 • Outstanding receivables rose by 29% to Rp Motorcycles 3,510 3,000 2,898 2,877 16.5 trillion in September 2008 2,664 2,196 • Market share in new motorc

  28. Slide 28: Adira Finance (auto financing business)

    Adira Finance (auto financing business) Rp. billion 9M07 9M08 YoY 1Q08 2Q08 3Q08 QoQ New Financing Units 691,336 892,675 29% 247,023 294,631 351,021 19% New Financing Volume 7,860 10,673 36% 2,877 3,510 4,285 22% O/S Receivables 12,738 16,468 29% 13,789 14,811 16,468 11% Net Interest Income 1) 1,686

  29. Slide 29: Adira Finance (auto financing business)

    Adira Finance (auto financing business) Cost of credit NPL and Repo Assets + # + # 1.6% 1.4% Non performing loans 4.4% 1.2% 4.3% 1.0% 0.8% 3.1% 3.1% 0.6% 2.9% 0.4% Repossessed assets 0.2% 0.0% Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 3Q07 4Q07 1Q08 2Q08 3Q08 Loss on Repo. Assets and Turnover Ratio 1) Net

  30. Slide 30: Agenda

    Agenda • First Nine Months 2008 Performance • Financial Results • Asset Quality • Business Update • Appendix Slide 30 Untuk Anda, Bisa

  31. Slide 31: Shareholding Structure

    Shareholding Structure Daily share price and trading volume Shareholding Structure 2)4 3 ( 8' 889 20 # ($ #$ 160 10,000 Asia Financial (Indonesia) 67.87% 140 9,000 120 8,000 Share Price 100 7,000 80 6,000 Public 60 5,000 32.13% 40 4,000 Asia Financial (Indonesia) (AFI) 20 3,000 • AFI is a consortium

  32. Slide 32: Credit Rating

    Credit Rating Danamon PEFINDO Corporate Rating idAA+ / Stable Bond Rating idAA+ / Stable Standard & Long-term / Short-term Local Currency BB- / Stable / B Poor’s Long-term / Short-term Foreign Currency BB- / Stable / B Subordinated Debt B / Stable Fitch Ratings Long-term / Short-term Foreign Currenc

  33. Slide 33: Thank You

    Thank You Investor Relations Bank Danamon Indonesia 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 Untuk Anda, Bisa

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