PT Bank Danamon Indonesia Tbk Class A · IDX:BDMN
PT Bank Danamon Indonesia Tbk Class A — Bank Danamon Indonesia — Q3 2006 Earnings Presentation
31 slides from PT Bank Danamon Indonesia Tbk Class A's earnings presentation, Oct 19, 2006
Slide 1: 3rd Quarter 2006 Results Analyst Briefing
3rd Quarter 2006 Results Analyst Briefing Mercantile Athletic Club Jakarta October 19, 2006 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 rece
Slide 2: Highlights of the third quarter 2006 results
Highlights of the third quarter 2006 results • Loan growth of 6% to Rp. 41 trillion • Deposits growth of 4% to Rp. 54 trillion • NPAT growth of 16% to Rp. 356 billion • Concluded American Express card business acquisition Slide 2
Slide 3: Agenda
Agenda • Financial Results • Asset Quality • Business Updates • Appendixes Slide 3
Slide 4: Highlights of Income Statement
Highlights of Income Statement Rp. billion 1Q06 2Q06 3Q06 UQoQ 9M05 9M06 UYoY Interest Income 2,519 2,676 2,800 5% 5,792 7,995 38% Interest Expense 1,294 1,283 1,325 3% 2,319 3,902 68% Net Interest Income 1,225 1,393 1,475 6% 3,473 4,093 18% Normalized Fee Income 313 338 301 (11%) 803 952 19% Normal
Slide 5: Highlights of Balance Sheet
Highlights of Balance Sheet Rp. billion 1Q06 2Q06 3Q06 UQoQ 9M05 9M06 UYoY Assets & Commitments 83,916 85,327 87,565 3% 77,696 87,565 13% Assets 70,758 74,531 77,250 4% 65,979 77,250 17% Loans (gross) 1 36,584 38,625 40,962 6% 36,516 40,962 12% Government Bonds 16,569 17,153 16,249 (5%) 14,798 16,24
Slide 6: Key Ratios
Key Ratios % 1Q06 2Q06 3Q06 UQoQ 9M05 9M06 UYoY Net Interest Margin 1 8.4 9.2 9.4 0.2 9.0 9.0 0.0 Normalized Cost / Income 50.3 46.0 47.7 1.7 44.7 48.3 3.6 Loan / Deposit 78.5 75.6 77.8 2.2 82.4 77.8 (4.6) Capital Adequacy 2 26.3 22.9 21.1 (1.8) 24.4 21.1 (3.3) Normalized ROAA 1.6 1.8 1.9 0.1 2.4 1.
Slide 7: Interest margin rose to 9.4% due to continuous growth in high yielding loans
Interest margin rose to 9.4% due to the continuous growth in high yielding loans and lower cost of funds Breakdown of Net Interest Income Rp. billion Earning Assets Yield (%) Mass Market 16.5 16.7 16.6 Adira 15.5 13.8 13.9 14.1 Others 12.2 13.1 4,093 8.3 8.9 8.4 8.1 5.3 5.6 6.1 15% 4.5 4.8 3,473 Cos
Slide 8: Normalized Fee Income
Normalized Fee Income Increased in fee income was largely driven by credit related fees, cash management and Adira Insurance consolidation Breakdown of Fee Income Rp. billion Non Credit Related Rp. billion 9M05 9M06 UYoY Credit Related 952 Credit related fees 309 415 34% 803 Cash management 184 303
Slide 9: Operating expenses
Operating expenses Adira Finance, Adira Insurance and the mass market business contributed to over 60% of the increased in operating expenses Breakdown of Operating Expenses Rp. billion 2,435 Mass Market Growth Rp. billion UYoY 2,063 351 Adira Insurance 75 & Quantum Mass Market 53 18% 298 0 487 Adir
Slide 10: Loan growth was driven by mass market and corporate segments
Loan growth was driven by mass market and corporate segments Breakdown of Loans Rp. billion 40,962 38,625 36,516 36,757 36,584 16% 14% 14% 13% UQoQ UYoY 16% Loan 13% 13% Growth Rp. bn % Rp. bn % 13% 14% 13% Corporate 943 17% 609 10% 19% 20% 21% 21% 20% Commercial 40 1% 431 9% SME (104) (1%) 524 7% 4
Slide 11: Slower growth in automotive and housing loans
Slower growth in automotive and housing loans Breakdown of Consumer Loans Rp. billion 15,658 15,685 15,513 16,167 15,286 7% 8% 9% 7% 7% 7% UQoQ UYoY 5% 5% 5% 5% Loan Growth 9% 9% 8% 7% 7% Rp. bn % Rp. bn % Others 1 240 25% (36) (3%) 25% 25% 24% 24% 24% Credit Card 2 284 35% 332 43% Housing (70) (6%)
Slide 12: Government bonds accounted for 21% of assets
Government bonds accounted for 21% of assets Breakdown of Government Bonds Portfolio Rp. billion The average duration of government Variable Rate bonds holdings is 1.9 years as of Fixed Rate Bonds as % of Assets September 30, 2006 as compared to T to 1.8 years a year earlier 23% 23% 22% 21% 21% Rp.
Slide 13: Funding grows steadily despite competitive market conditions
Funding grows steadily despite competitive market conditions Total Deposits grew by 21% YoY to Rp. 53,920 billion as of September 30, 2006 Breakdown of Interest Bearing Funding Rp. billion Loan / Total Funding 72% 65% d 64% 62% 62% 61,806 63,561 • Senior bonds 57,864 • Subordinated debts 56,394 16%
Slide 14: Capital Adequacy Ratio at 21.1% on September 30, 2006
Capital Adequacy Ratio at 21.1% on September 30, 2006 Movement of Capital Adequacy Ratio % Rp. billion Sep.05 Sep.06 UYoY 24.4 (0.3) Tier 1 Capital 7,876 8,142 3% (0.1) Tier 2 Capital 4,159 3,783 (9%) 21.1 Investments 1,164 1,116 (4%) (2.9) Total Capital after 10,871 10,808 (1%) Investments Risk Wei
Slide 15: Agenda
Agenda • Financial Results • Asset Quality • Business Updates • Appendixes Slide 15
Slide 16: Diversified loan portfolio across economic sectors
Diversified loan portfolio across economic sectors Fixed rate loans are mainly comprised of high yielding automotive and mass market loans Loans by Economic Sector Loans by Interest Rate As of September 30, 2006 As of September 30, 2006 General Trading & Manufacturing Variable Rate Distribution 18%
Slide 17: Loan portfolio by tenor and currency
Loan portfolio by tenor and currency Loans by Tenor Loans by Currency As of September 30, 2006 As of September 30, 2006 1 to 3 Years 44% Rupiah 87% 3 to 5 Years 12% > 5 Years 5% < 1 Years 39% Foreign Currency 13% Total Loans Rp. 40,962 billion Total Loans Rp. 40,962 billion Slide 17
Slide 18: Loan's Collectibility
Loan’s Collectibility % Total 2.2% 2.6% 3.4% 3.6% 3.5% 9.1% 10.8% 10.5% 10.3% 9.4% Non-Performing 88.7% 86.1% Special Mention 86.6% 86.1% 87.1% Current Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Breakdown of Non-Performing Loans Rp. billion 1,372 1,337 1,223 929 40% 55% 59% 792 50% Collectibility 5 37% 28%
Slide 19: Cost of credit improved substantially in the third quarter of 2006
Cost of credit improved substantially in the third quarter of 2006 as compared to the previous quarter Non-Performing Loans Normalized Cost Of Credit Rp. billion Rp. billion NPL Ratio 3.6% 3.5% Other Businesses 3.4% T Mass Market 2.6% 435 2.2% Adira 1,372 1,337 1,223 343 329 191 291 929 133 141 75 7
Slide 20: 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 % 1,372 Specific General 28% 176 146 Corporate 8% 131 136 792 Commercial 115 93 SME 30% 85 32% Mass Market 90 88 7% Consumer - Adira 72 27% 12% Consumer 4% 83 9% 61 15%
Slide 21: Higher special mention loans due to growing mass market and auto financing
Higher special mention loans due to growing mass market and consumer auto financing businesses Special mention loans concentrate on DPD 1 – 30 days Special Mention Loans Aging of Special Mention Loans Rp. billion % Total Corporate 61 - 90 Days SME/Commercial 31 - 60 Days 1 - 30 Days Consumer 0 Days
Slide 22: Agenda
Agenda • Financial Results • Asset Quality • Business Updates • Appendixes Slide 22
Slide 23: Danamon Simpan Pinjam (Mass Market)
Danamon Simpan Pinjam (Mass Market) DSP Units Consumer Mass Market An additional 75 units of DSP Self-Employed Mass Market 766 733 752 739 729 734 SEMM were opened in the first 509 nine months of 2006, bringing total DSP SEMM to 693 units 264 115 Mass market loans grew by an additional Rp 803 bi
Slide 24: Consumer auto financing business with Adira Finance
Consumer auto financing business with Adira Finance Rp. billion 1Q06 2Q06 3Q06 UQoQ 9M05 9M06 UYoY New Financing Units 134,024 159,039 212,331 34% 556,335 505,394 (9%) New Financing Volume 1,513 2,018 2,454 22% 6,822 5,985 (12%) O/S Receivables 9,919 10,124 10,710 6% 9,926 10,710 8% Interest Income
Slide 25: Improvement in inventory management resulted in lower losses on repossessed assets
Improvement in inventory management resulted in lower losses on repossessed assets Repossessed Assets Rp. billion Loss on repossessed assets 37% 36% 34% 35% T 33% 32% 30% 28% 30% 30% 30% 28% 26% 2.6% 2.4% 2.3% 2.3% 2.3% 2.2% 2.1% Repo. assets as % receivables 2.0% 2.0% 1.9% T 262 1.6% 235 238 233 23
Slide 26: Lower non-performing loans and write-off as a result of improved risk management
Lower non-performing loans and write-off as a result of improvement in risk management Non-Performing Loans Rp. billion 3.4% Net Write-off as a % receivables 2.9% T 2.5% 2.5% 2.6% 2.7% 2.6% 2.7% 2.4% 2.4% 2.4% 2.2% 1.8% 1.8% 1.8% 1.7% 1.7% 1.7% 1.6% 1.6% 1.5% 1.5% Non-performing loans ratio 184 1.4%
Slide 27: Latest Updates
Latest Updates • Danamon concluded the transfer of American Express American Express card business. Starting September 30, 2006, Danamon Acquisition will be the sole issuer and manager of the American Express card and merchant in Indonesia • Danamon formed a bancassurance partnership with PT Asurans
Slide 28: Agenda
Agenda • Financial Results • Asset Quality • Business Updates • Appendixes Slide 28
Slide 29: Danamon's shares
Danamon’s shares Daily share price and trading volume Shareholding Structure As of Sept. 30, 2006 Share Price Volume In Rupiah In millions shares Asia Financial Public (Indonesia) 30.6% 7,000 35,000 69.4% 6,000 30,000 5,000 25,000 4,000 20,000 3,000 15,000 2,000 10,000 1,000 5,000 Asia Financial (In
Slide 30: Danamon's Credit Ratings
Danamon’s Credit Ratings Rating Agencies Rating / Outlook 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 Bank Deposit B2 / Stable / Not Prime Moodys Bank Financial S
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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