PT Bank Danamon Indonesia Tbk Class A · IDX:BDMN
PT Bank Danamon Indonesia Tbk Class A — Bank Danamon Indonesia — Q3 2007 Earnings Presentation
31 slides from PT Bank Danamon Indonesia Tbk Class A's earnings presentation, Oct 25, 2007
Slide 1: Analyst Briefing First Nine Months & Third Quarter 2007 Results
Analyst Briefing First Nine Months & Third Quarter 2007 Results Jakarta, 25 October 2007 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
Slide 2: Agenda
Agenda • Financial Results • Asset Quality • Business Update • Appendix Slide 2
Slide 3: Highlights of 2007 First Nine Months Results
Highlights of 2007 First Nine Months Results • Loans rose by 22% YoY to Rp 50 trillion driven by the strong growth in mass market and retail businesses • Deposits increased by 11% YoY to Rp 59 trillion on the back of strong growth in current and saving accounts • Operating income rose by 33% to Rp 6
Slide 4: Income Statement Highlights
Income Statement Highlights Rp. billion 1Q07 2Q07 3Q07 UQoQ 9M06 9M07 UYoY \ Interest Income 2,934 2,995 3,056 2% 7,995 8,985 12% Interest Expense (1,278) (1,276) (1,168) (8%) (3,902) (3,722) (5%) Net Interest Income 1,656 1,719 1,888 10% 4,093 5,263 29% Fee Income 503 537 381 (29%) 922 1,421 54% Op
Slide 5: Balance Sheet Highlights
Balance Sheet Highlights Rp. billion 1Q07 2Q07 3Q07 UQoQ 9M06 9M07 UYoY \ Total Assets 84,946 88,043 87,987 0% 77,250 87,987 14% Loans (gross) 1) 43,109 46,394 50,153 8% 40,962 50,153 22% Government Bonds 19,453 18,957 16,749 (12%) 16,309 16,749 3% Total Deposits 57,562 61,294 58,853 (4%) 52,997 58,
Slide 6: Key Ratios
Key Ratios % 1Q07 2Q07 3Q07 UQoQ 9M06 9M07 UYoY Net Interest Margin 1) 9.9 10.0 11.1 1.1 9.4 10.4 1.0 Cost / Income 47.5 46.1 46.6 0.5 48.2 46.8 (1.4) Loan / Deposit 75.7 75.5 85.0 9.5 77.8 85.0 7.2 Capital Adequacy 2) 20.6 20.5 19.2 (1.3) 21.1 19.2 (1.9) ROAA 2.3 2.4 2.7 0.3 1.7 2.5 0.8 ROAE 21.2 2
Slide 7: Net interest margin expanded to 11.1% in the third quarter of 2007
Net interest margin expanded to 11.1% in the third quarter of 2007 Net Interest Income Net Interest Margin Rp. billion Quarterly, % Danamon Simpan Pinjam (DSP) 16.6 16.5 16.1 15.7 16.1 Adira Finance Other Businesses c 5,263 Earning Asset Yield 8.1 7.7 7.0 6.6 24% 6.1 4,093 c Cost of Funds 15% 11.1 3
Slide 8: Fee income rose by 54% supported by strong growth in credit related fees and treasury products
Fee income rose by 54% supported by strong growth in credit related fees and treasury products Fee Income Rp. billion Rp. billion 9M06 9M07 UYoY Non Credit Related Credit related fees 415 592 43% Credit Related 1,421 Cash management 209 226 8% 922 832 Treasury products 143 409 186% 507 Adira Finance
Slide 9: An increase in operating expenses was partly driven by new initiatives
An increase in operating expenses was partly driven by new initiatives Manpower Costs New initiatives contributed to over 45% of Rp. billion UYoY the increase in operating expenses Variable Costs 35% Fixed Costs 1,955 94% 9M06 9M07 UYoY 1,444 30% 21% Business as usual 1,894 2,281 20% 70% 20% 79% Man
Slide 10: Cost of credit declined to 2.0% of earning assets in the third quarter of 2007
Cost of credit declined to 2.0% of earning assets in the third quarter of 2007 Cost of Credit 1) Cost of Credit / Avg. Earning Assets 2) Rp. billion %, Annualized Danamon Simpan Pinjam Adira Finance Other Businesses Avg. 2006: 2.9% 2.9% 2.9% 2.8% 1,063 1,018 19% 23% 2.1% 2.0% 44% 41% 37% 35% 9M06 9M
Slide 11: Loans expanded by 22% driven by robust growth in both mass market and retail businesses
Loans expanded by 22% driven by robust growth in both mass market and retail businesses Outstanding Loan Composition Loan Growth Rp. billion Quarter-on-Quarter, Year-on-Year 50,153 UQoQ UYoY 46,394 42,986 43,109 17% Rp.bn % Rp.bn % 40,962 16% 19% 17% 13% Corporate 1) 961 13% (19) 0% 21% 13% 13% 13
Slide 12: Mass market loans expanded by 35% supported by strong growth in DSP
Mass market loans expanded by 35% supported by strong growth in DSP Mass Market Loan Composition Loan Growth Rp. billion Quarter-on-Quarter, Year-on-Year UQoQ UYoY 21,946 Growth 20,146 Rp.bn % Rp.bn % 18,567 14% 17,659 15% 16,300 Hire Purchase 36 12% 175 102% 16% 17% 19% 44% Cars 75 2% (21) (1%)
Slide 13: Retail loans increased by 36% on the back of strong growth in personal and housing loans
Retail loans increased by 36% on the back of strong growth in personal and housing loans Retail Loan Composition Loan Growth Rp. billion Quarter-on-Quarter, Year-on-Year UQoQ UYoY 4,501 Rp.bn % Rp.bn % 4,032 14% 3,543 15% 7% Others 20 3% 134 27% 3,432 3,305 8% 16% 15% 8% Personal Loan (4) (1%) 2
Slide 14: Government bonds represented 19% of the bank's assets
Government bonds represented to 19% of the bank’s assets Government Bonds Composition The duration of government bonds is 4.7 Rp. billion years as of September 30, 2007 as compared to 1.9 years a year earlier Variable Rate Fixed Rate Bonds as % of Assets T 23% 23% 22% Rp.bn Sep-06 Sep-07 UYoY 21% 19
Slide 15: Funding increased by 13% on the back of strong deposit growth
Funding increased by 13% on the back of strong deposit growth as well as structured and long-term funding Breakdown of Interest Bearing Funds Structured and Long Term Funding Rp. billion As of September 30, 2007 Loan / Total Funding Sub-Debt Others 71% 24% 22% d 66% 65% 65% 64% UYoY 70,994 Bonds 66,
Slide 16: Capital Adequacy Ratio (CAR) stood at 19.2% as of September 30, 2007
Capital Adequacy Ratio (CAR) stood at 19.2% as of September 30, 2007 Movement of Capital Adequacy Ratio % Rp. billion Sep-06 Sep-07 UYoY Tier 1 Capital 8,142 9,406 16% 2.9 (0.2) Tier 2 Capital 3,782 3,996 6% 21.1 Investments (1,116) (1,244) 11% 19.2 (3.1) Total Capital after 10,808 12,158 12% Invest
Slide 17: Agenda
Agenda • Financial Results • Asset Quality • Business Update • Appendix Slide 17
Slide 18: Well diversified loan portfolio across economic sectors
Well diversified loan portfolio across economic sectors Loans by Economic Sector Loans by Interest Rate As of September 30 As of September 30 Manufacturing Variable Rate General Trading & 2007: 17% 2007: 47% Distribution 2006: 18% 2006: 51% 2007: 28% 2006: 27% Business Services 2007: 8% 2006: 5% Tra
Slide 19: Non-performing loans ratio steadily decline to 2.8% as of September 2007
Non-performing loans ratio steadily decline to 2.8% as of September 2007 Loan’s Collectibility % Total 3.5% 3.3% 3.2% 3.1% 2.8% 10.1% 9.8% 9.9% 8.4% 7.7% Non-Performing 86.4% 86.9% 87.0% 88.5% 89.5% Special Mention Current Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Non-Performing Loans Breakdown % Total 1,3
Slide 20: Special mention loans concentrate on DPD 1-30 days
Special mention loans concentrate on DPD 1-30 days Special Mention Loans Aging of Special Mention Loans Rp. billion % Total Mass market Retail 0 Day 1 - 30 Days 31 - 60 Days 61 - 90 Days SME/ Commercial Corporate 4,030 4,074 3,737 8% 6% 9% 9% 8% 3,931 3,740 15% 16% 15% 15% 18% 74% 80% 74% 80% 85% 77
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 % Corporate SME/ Commercial Specific Retail Mass market General 158 153 156 1,372 142 1,304 1,359 1,331 136 22% 23% 31% 29% 95 88 94 21% 94 16% 7% 10% 90 41% 43% 43% 40
Slide 22: Agenda
Agenda • Financial Results • Asset Quality • Business Update • Appendix Slide 22
Slide 23: Danamon Simpan Pinjam
Danamon Simpan Pinjam Outstanding Loans Self Employed Mass Market (SEMM) Rp. billion • 700 units and 38 mobile units of DSP Consumer Mass Market UYoY Self Employed Mass Market 8,934 64% SEMM are currently in operation 7,967 6,964 91% • SEMM extended Rp 5,151 billion new 5,436 6,228 loans in the firs
Slide 24: Danamon Simpan Pinjam
Danamon Simpan Pinjam Cost of credit Cost of credit was maintained below 5% % of Average Loans, annualized on the back of strong loan growth • Cost of credit stood at 4.5% of average 5.7% 5.5% receivables in the third quarter of 2007 4.7% 4.5% as compared to 5.7% in the previous 3.7% year’s quarter
Slide 25: Adira Finance (consumer auto financing)
Adira Finance (consumer auto financing) New financing • New financing rose by 31% YoY to Rp. 7,860 Rp. billion billion in the first nine months of 2007 3,000 • Outstanding receivables rose by 18% YoY to 2,664 2,454 2,474 Rp. 12,667 billion as of September 30, 2007 2,196 • Market share in new motorcy
Slide 26: Adira Finance (consumer auto financing)
Adira Finance (consumer auto financing) Cost of credit NPL and Repo Assets % of Average Receivables % of Receivables 5.4% 2.0% 5.1% 5.0% 4.9% Non performing loans 4.4% 1.5% T 1.0% S Repossessed assets 0.5% 0.0% 3Q06 4Q06 1Q07 2Q07 3Q07 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Loss on Repo. Assets and Turn
Slide 27: Adira Finance (consumer auto financing)
Adira Finance (consumer auto financing) Rp. billion 1Q07 2Q07 3Q07 UQoQ 9M06 9M07 UYoY New Financing Units 194,240 232,662 264,434 14% 505,394 691,336 37% New Financing Volume 2,196 2,664 3,000 13% 5,985 7,860 31% O/S Receivables 11,364 11,872 12,667 7% 10,710 12,667 18% Interest Income 813 830 887
Slide 28: Agenda
Agenda • Financial Results • Asset Quality • Business Update • Appendix Slide 28
Slide 29: Shareholding Structure
Shareholding Structure Daily share price and trading volume Shareholding Structure BDMN IJ As of September 30, 2007 Daily trading volume in thousands Share price in Rupiah Asia Financial (Indonesia) 68.16% 30,000 9,000 Share Price f 25,000 8,000 20,000 7,000 Public 31.84% 15,000 6,000 10,000 5,000 A
Slide 30: Credit Rating
Credit Rating Danamon 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 Moody’s Global Local Currency Deposit Baa3 / Stable Foreign Currency Long-term / Short-term Deposit B1 / Stable / Not P
Slide 31: 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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