PT Bank Mandiri (Persero) Tbk · IDX:BMRI
PT Bank Mandiri (Persero) Tbk — Q1 2006 Earnings Presentation
98 slides from PT Bank Mandiri (Persero) Tbk's earnings presentation, May 30, 2006
Slide 1: PT Bank Mandiri (Persero) Tbk Q1 2006 Results Presentation
PT Bank Mandiri (Persero) Tbk Q1 2006 Results Presentation 0
Slide 2: Shareholding Information
Shareholding Information Shareholders as of 31 March 2006 2,200 Description Investors Shares % 2,000 BMRI DOMESTIC JCI 1,800 1. Government 1 14,000,000,000 69.0% 1,600 2. Retail 2,924 246,470,000 1.2% 3. Employees 10,568 101,833,814 0.5% 1,400 4. Pension Funds/ 1,200 Cooperatives/ 82 71,459,500 0.4%
Slide 3: Bank Mandiri Presentation Contents
Bank Mandiri Presentation Contents Results Results Overview Overview Page Page ## Financial Financial Summary Summary Page Page ## Q1 Q1 2006 2006 Summary Summary Financials Financials 22 -- 33 Summary Summary Balance Balance Sheets Sheets && P&L P&L 38 38 -40 -40 Quarterly Quarterly Ass
Slide 4: Key Quarterly Balance Sheet Items & Financial Ratios
Key Quarterly Balance Sheet Items & Financial Ratios IDR billion / % FY 2005 Q1 2005 Q1 2006 YoY Change (%) Gross Loans 106,853 99,650 105,075 5.6 Government Bonds 92,056 93,211 92,225 (1.1) Total Assets 263,383 249,373 254,885 2.2 Customer Deposits 206,289 171,016 198,083 15.8 Total Equity 23,215 2
Slide 5: Summary P&L Information – Q1 2005 vs. Q1 2006
Summary P&L Information – Q1 2005 vs. Q1 2006 Q1 2005 Q1 2006 YoY Change % of % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets (%) Interest Income 4,777 7.9 6,507 10.2 36.2 Interest Expense (2,407) (4.0) (4,297) (6.7) 78.5 Net Interest Income 2,370 3.9 2,210 3.4 (6.8) Other Operating Income 566
Slide 6: Total assets grew by 2.2% Y-o-Y
4 As a % of Total Interest Income 57.6 105.1 92.2 Q1 '06 46.7% 42.6% 64.5 106.9 92.1 Q4 '05 48.0% 38.2% 51.4 106.7 92.3 Q3 '05 60.2 104.0 92.5 Q2 '05 40.7% 50.5% 56.6 99.5 93.2 Q1 '05 46.2% 60.7 94.4 93.1 Q4 '04 45.6% Other Assets Total assets grew by 2.2% Y-o-Y – Consolidated 54.6 87.0 94.0 Q3 '04
Slide 7: Loan volume was flat or declining across all segments Q-o-Q
Loan volume was flat or declining across all segments Q-o-Q Quarterly Loan Data – Consolidated Quarterly Loan Segment Details – Bank Only 42.7 Corporate 53.1% 40.2 40.6 41.8 41.5 42.3 42.9 44.0 45.1 44.7 43.5 Loans (Rp tn) 56.8% 38.2 38.939.5 47.9% 53.7% 44.1 43.1 LDR (%) 51.8% 42.4 43.7 40.4 42.5%
Slide 8: Business Unit Performance, Q1 2006 (Reviewed)
Business Unit Performance, Q1 2006 (Reviewed) Small & Business Unit Performance (Rp bn) Corp. Comm. Cons. CRG Treasury* Micro Earning Assets (Avg. Bal.) 24,963 23,945 11,466 7,670 23,844 106,813 Deposits & Borrowings (Avg. Bal.) 58,770 23,204 111,154 1,328 0 7,315 Interest Margin on Assets 128 207 1
Slide 9: Consumer lending contracted 0.8% despite Mortgage growth
Consumer lending contracted 0.8% despite Mortgage growth Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type 12,000 Other Growth (%) Cash Collateral Loans 688 888 792 Loan Type Credit Cards 653 Y-o-Y Q-o-Q 1,279 10,000 1,367 1,354 Payroll Loans 1,257 Home Equity Loans Mortgages 727
Slide 10: Sales of Rp20 bn from the Recap Bond Portfolio in Q1 '06
Sales of Rp20 bn from the Recap Bond Portfolio in Q1 ‘06 At Fair Value, Mar Trading AFS HTM 2006 (Rp tn) (Mark to Market#) (Nominal Value) Total % of Total (Mark to Market*) Fixed Rate 0.6 1.9 1.4 3.9 4.2% Variable Rate 1.6 27.0 59.7 88.4 95.8% Hedge Bonds - - - - - Total 2.2 28.9 61.1 92.2 % of Tot
Slide 11: Q1 fall of 4.0% on Rp Time & Savings, FX Demand accounts
Q1 fall of 4.0% on Rp Time & Savings, FX Demand accounts Deposit Analysis – Bank Only Retail Deposits (%) Low-Cost Deposits (%) 200 15.7 180 15.9 23.4 21.5 93.2 17.8 20.6 20.6 19.4 18.6 13.3 16.3 90.8 23.6 18.0 17.3 16.5 13.8 11.6 105.1 25.9 21.3 106.9 160 11.1 107.7 106.1 96.7 79.8 72.3 12.5 104.1
Slide 12: Savings deposit volume slips 7.5% in Q1
Savings deposit volume slips 7.5% in Q1 Savings Deposit Growth Average Quarterly Deposit Costs (%) Savings Deposits (Rp tn) 17.1% As % of Total Deposits Rp DD National Share of Savings Deposits (%) 17.0% 13.9% Rp Savings Rp TD 1 Mo. SBIs 12.7% 11.9% SBI 13.1% 11.9% TD 30.6% 10.6% 8.5% 11.4% 9.5% 7.4
Slide 13: Margins expand slightly on rising bond yields
11 11.3% 7.8% 3.6% 3.8% Q1 '06 10.7% 7.3% 3.4% 3.6% Q4 '05 9.4% 5.7% 3.7% 3.8% Q3 '05 8.2% 4.8% 4.6% 4.8% 3.4% 3.6% Q2 '05 8.9% 8.7% 4.1% 4.3% Q1 '05 4.1% 4.3% Q4 '04 3.8% 4.0% Q3 '04 8.4% 4.6% 4.6% 8.8% 4.2% 4.5% Q2 '04 Margins expand slightly on rising bond yields 9.5% 9.3% 4.2% 4.7% Q1 '04 5.1% 6
Slide 14: Quarterly Margin Analysis by Currency
Quarterly Margin Analysis by Currency Quarterly Rupiah Margins Quarterly Foreign Currency Margins 18.9% 18.3% 11.8% Avg Spread Avg Loan Yield 17.6% Avg Bond Yield 17.6% 15.9% Avg USD 1Mo SIBOR Avg COF 14.0% 14.0% 7.6% 14.4% 14.1% 13.0% 7.3% 13.1% 11.9% 6.5% 12.7% 12.5% 12.4% 5.7% 11.7% 10.2% 11.1% 5
Slide 15: Non-loan Related Fees & Commissions decline on Subsidiaries
Non-loan Related Fees & Commissions decline on Subsidiaries Non-loan related fees & commissions Details of Q1 2005 & 2006 Credit Cards Transfer, Collection, Clearing & Bank Reference Non-Loan Q1 Q1 Y-o-Y Opening L/C & Bank Guarantees Related Fees & Fee from Subsidiaries 2005 2006 U Commissions Other
Slide 16: Cost to Income Ratio returns to below 50% in Q1
Cost to Income Ratio returns to below 50% in Q1 Quarterly Consolidated Operating Expenses & CIR Breakdown of Q1 2005 & 2006 Operating Expenses 83.3% Change Q1‘05 Q1 ‘06 CIR* (%) (Y-o-Y) Annual Avg CIR (%) Personnel Expenses 57.6% Other Allowances 265,803 303,387 14.1% Post Employment Benefits 18,239
Slide 17: Q1 2006 Loan Movement, PL & NPL
Q1 2006 Loan Movement, PL & NPL Performing Loan Movements (Rp bn) - Bank Only Non-Performing Loan Movements (Rp bn) – Bank Only 73,574 81 1,787 1,245 70,944 321 228 34 1,787 120 1,190 27,126 26,752 81 Beg. U/G from D/G to Net FX Impact End Beg. U/G to PL D/G from Disburse. CollectionsWrite-Offs FX I
Slide 18: Q1 2006 Movement in Category 1 and 2 Loans
Q1 2006 Movement in Category 1 and 2 Loans Category 1 Loan Movements (Rp bn) – Bank Only Category 2 Loan Movements (Rp bn) – Bank Only 60,662 257 889 2,295 58,857 1,409 26 201 12,912 2,295 1,409 356 12,087 1,530 55 120 Beg. Bal. D/G to 2 U/G from D/G to U/G from Net FX Impact End Bal. Beg. Bal. Cat.
Slide 19: Provisioning coverage reflects BI requirements
17 50% 40% 30% 20% 12.3% 10% 0% 12086 Q1 '06 12,912 16,423 Q3 '05 14,394 12,352 Q1 '05 2 - Special Mention Loans (Rp Bn) 9.4% 8,334 9,852 Q3 '04 9,912 15.0% Category 2 Loans – Bank Only 10621 Q1 '04 Cat 2 % 10,983 15,345 Q3 '03 15,585 24.8% Provisioning coverage reflects BI requirements 17,432 Q1 '0
Slide 20: NPL, Provisioning & Collateral Details – Bank Only
NPL, Provisioning & Collateral Details – Bank Only Non-Performing Loans by Segment Collateral Valuation Details Collateral value is credited against cash provisioning NPLs Q1U NPLs requirements on a conservative basis. For assets valued (Rp tn) (Rp tn) (%) above Rp 5bn: Corporate 16.72 0.02 38.82%
Slide 21: Quarterly Analysis of Upgrades and Downgrades
Quarterly Analysis of Upgrades and Downgrades* Total Corporate, Commercial & Small Business Loans Net Upgrades/Downgrades# Q1 2006 Details Loan Q1 ‘06 Q2 Q3 Q4 Q1 DG to UG to Background Balance (Rp 2005 2005 2005 2006 NPL PL bn) Restructured 18,762.7 10.0% 4.5% 2.9% 0.8% 0.9% 0.1% IBRA 4,123.9 3.4%
Slide 22: Q1 2006 core earnings decline 19.4% from Q1 2005
Q1 2006 core earnings decline 19.4% from Q1 2005 Core Earnings Profit After Tax & ROE IDR bn 8,000 RoE - After Tax Gain on Sale/Value of Securities 26.2% (Annualized) FX Gain 23.6% Core Earnings 21.5% 22.8% 1,651 7,000 2,072 Pre-Provision Operating Profit 6,000 775 402 5,000 819 114 2,021 1,408 367
Slide 23: High CAR maintained at 25.2%
21 25.2% 110.7 27.9 Q1 '06 23.7% 115.9 27.4 Q4 '05 117.5 27.8 Q3 '05 23.7% 115.9 27.5 Q2 '05 114.1 30.4 Q1 '05 25.3% 108.9 27.5 Q4 '04 102.3 27.2 Q3 '04 27.5% 96.2 26.5 Q2 '04 94.2 28.1 Q1 '04 Total Capital (Rp tn) 27.7% 91.9 25.5 Q4 '03 89.5 25.0 Q3 '03 30.7% 79.5 24.4 Q2 '03 High CAR maintained at
Slide 24: Additional Factors
Additional Factors Aggregate of IDR 22.93 tn (US$ 2.53 bn) in written-off loans as of end- March 2006, with significant recoveries on-going: ¾ 2001: IDR 2.0 tn Written-off Written-off ¾ 2002: IDR 1.1 tn Loans Loans ¾ 2003: IDR 1.2 tn ¾ 2004: IDR 1.08 tn ¾ 2005: IDR 0.818 tn (US$ 83.2 mn) ¾ Q1 ’06:
Slide 25: Corporate Actions
Corporate Actions Dividend Payment of Rp14.853 per share Schedule : Dividend a. Cum Date : June 14, 2006 Dividend Payment Payment b. Ex Date : June 15, 2006 c. Payment Date : June 30, 2006 Total Dividend payments for 2005 = Rp301,684,655,575.70 23
Slide 26: Annual General Meeting Results
Annual General Meeting Results Agenda Agenda 11 1. Approved Annual Report of the Company for the Financial Year Ending on 31 Dec ’05 and ratified Consolidated Financial Report of the Company for the Financial Year Ending on 31 Dec ’05. 2. Approved Annual Report of the Partnership and Environment Con
Slide 27: Annual General Meeting Results
Annual General Meeting Results Agenda Agenda 44 1. Approved that Salary of the members of The Board of Directors and the members of the Board of Commissioners shall not increase, therefore the amount of such salary and honorarium remains the same as the amount of salary and honorarium as determined
Slide 28: Annual General Meeting Results
Annual General Meeting Results Agenda Agenda 55 (cont.) (cont.) 3. Approved that to grant authority to the Board of Commissioners to: a. Increase the issued and paid-up capital of the Company, which followed by the amendment of article 4 paragraph 2 and paragraph 3 of the Company’s Articles of Assoc
Slide 29: Comprehensive implementation of Service Excellence Program
Comprehensive implementation of Service Excellence Program A mystery shopping survey by MRI, along with setting up measurement parameters & service level indicators in respective working units at Measuring Measuring banking industry best practice as well as its rigorous and continuous Service Serv
Slide 30: Significantly Boost Customer Service Level and Loyalty
…Significantly Boost Customer Service Level and Loyalty Top-10 Top-10 Banks Banks for for Service Service Excellence Excellence -- MRI MRI Survey Survey 2004 2005 Bank Danamon 87.04 PermataBank 89.13 PermataBank 86.81 Bank Danamon 87.17 Bank Niaga 84.57 Bank Mandiri 86.91 Bank NISP 82.46 Bank Niaga
Slide 31: Outstanding in several Service Areas
Outstanding in several Service Areas Customer Customer Service Service Banking Banking Hall Hall Phone Phone Banking Banking Bank Permata 82.94 Bank Danamon 100.00 Bank Mandiri 80.43 Bank Danamon 78.12 Bank Mandiri 100.00 Bank Permata 78.42 Bank Mandiri 78.02 Bank Niaga 100.00 Bank NISP 78.03 Bank N
Slide 32: Top debtors with collectibility 4 & 5
Top debtors with collectibility 4 & 5 Debtors Debtors 1. Raja Garuda Mas Group (3 entities) 15. PT Anugrah Lingkar Selatan 2. PT Kiani Kertas 16. PT Petrowidada 3. Domba Mas Group (7entities) 17. Batavindo Group (3 entities) 4. Argo Pantes Group (8 entities) 18. PT Kalimantan Energi Lestari 5. Bosow
Slide 33: Status of selected large debtors
Status of selected large debtors Raja Raja Garuda Garuda RGM is required to increase installment amount to improve loan quality Mas Mas and ensure final settlement by June 2010 Kiani Bank Mandiri still open to opportunities to negotiate with potential Kiani Kertas Kertas investors to resolve the
Slide 34: Status of selected large debtors
Status of selected large debtors Several investors are interested in PT. Lativi Media Karya A. A. Latief Latief Loans to PT Pasaraya Tosersa Jaya & PT A. Latief Nusa Karya have been Group Group handed over to DJPLN (State Collection Agency) Has already proposed a loan restructuring scheme. Ban
Slide 35: Update on regulations to accelerate NPL resolution
Update on regulations to accelerate NPL resolution Ministries of Finance and SOE have publicly stated that the Government is in the process of preparing two regulations to accelerate NPL resolution in Ministry Ministry of of State Banks: Finance Finance && Ministry Ministry of of A Government Regu
Slide 36: New regulations expected to provide flexibility in managing NPLs
New regulations expected to provide flexibility in managing NPLs Clarification will allow for resolution and management of SOE receivables Clarify Clarify that that through mechanisms not available for state receivables SOE SOE The regulation is the basis to provide authority to SOE banks to manag
Slide 37: Alternatives for NPL resolution with expected new regulations
Alternatives for NPL resolution with expected new regulations State Banks can currently provide principal reduction up to Rp 10bn when approved by the Minister of Finance. The new regulations would allow for Principal Principal principal reduction in settlement with existing debtors after considerat
Slide 38: Establishing a "Bad Bank" remains an option
Establishing a “Bad Bank” remains an option Due to the high level of NPLs both off and on balance sheet, Bank Mandiri needs to pursue options which could quickly: Resolution Resolution of of Achieve the target of 5% Net NPL by 2007 NPLs NPLs in in bulk bulk Bank Mandiri has Rp ~27.1tn on-balance
Slide 39: Internal work in progress to accelerate NPL resolution
Internal work in progress to accelerate NPL resolution Shareholder Shareholder In AGM/EGMs, a limit of Rp 5 tn in principal reduction has been approved Approval Approval for for and is available for written-off loans Principal Principal Our credit restructuring unit will centrally monitor the ut
Slide 40: Summary Balance Sheet: March & Dec 2005, March 2006
Summary Balance Sheet: March & Dec 2005, March 2006 Q1’05 Q4‘05 Q1 ‘06 Y-o-Y Rp (trillions) Rp (trillions) Rp (trillions) USD (billions)# Rp % Change Total Assets 249.4 263.4 254.9 28.1 2.2 Cash 2.4 2.5 3.3 0.4 36.0 Current Account w/BI 14.3 20.3 22.2 2.4 55.3 Certificates of BI 3.7 6.5 7.3 0.8 98.3
Slide 41: Summary Quarterly Balance Sheet: Q2 '05 – Q1 '06
Summary Quarterly Balance Sheet: Q2 ‘05 – Q1 ‘06 Q2 ‘05 Q3 ‘05 Q4 ‘05 Q1 ‘06 Q-o-Q Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# Rp % Change Total Assets 256.8 250.3 263.4 254.9 28.1 (3.1) Cash 2.3 2.6 2.5 3.3 0.4 29.5 Current Accounts w/BI 15.9 18.8 20.3 22.2 2.4 9.4 Certificates of BI 5.4 0.1 6.5 7.3
Slide 42: Summary P&L Information – Q1 2006
Summary P&L Information – Q1 2006 Q-o-Q Q1 2005 Q4 2005 Q1 2006 Change % of % of Rp % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets* (Billions) Av.Assets (%) Interest Income 4,777 8.0 6,023 9.4 6,507 10.0 8.0 Interest Expense (2,407) (4.0) (3,952) (6.2) (4,297) (6.6) 8.7 Net Interest Income 2,
Slide 43: Recap Bond Portfolio Details, Mar 2006 – Bank Only
Recap Bond Portfolio Details, 31 Mar 2006 – Bank Only Maturity Interest Nominal Mark to Fair Value Series Date Rate (%) Trading AFS HTM Market Trading AFS HTM Fixed Rate FR0002 15-Jun-09 14.00% 68 105.85 72 FR0005 15-Jul-07 12.25% 500 100.66 503 FR0010 15-Mar-10 13.15% 1,350,000 100.00 1,350,000 FR0
Slide 44: Bank Mandiri's Credit Ratings
Bank Mandiri’s Credit Ratings S&P Moody’s Fitch Pefindo Sovereign Ratings Outlook Positive Positive Stable Long Term Bank Deposits B3 Long Term Foreign Currency Debt B+ B2 BB- Short Term Foreign Currency Debt B NP NR Long Term Local Currency Debt BB B2 NR Short Term Local Currency Debt B Bank Mandir
Slide 45: Reconciliation to IFRS
Reconciliation to IFRS FY ’02 FY ’03 FY ’04 FY ’05 Rp (Billions) Rp (Billions) Rp (Billions) Rp (Billions) Net profit under Indonesian GAAP 2,746 4,586 5,256 603 IFRS Adjustments Allow. for possible losses on earning assets 955 (662) (309) (2,681) Allow. for possible losses on commitments & continge
Slide 46: Our aspiration is to be a Dominant Multi-Specialist Bank
Our aspiration is to be a Dominant Multi-Specialist Bank Dominant Multi-specialist Bank Model Dominant Dominant Bank Bank in in Indonesia, Indonesia, with with 20-30% 20-30% market market share share of of revenue revenue across across all all segments, segments, with with distinctive distinctive st
Slide 47: Individual segment strategies
Individual segment strategies Maintaining our position as market leader and focusing our effort to shift into a more profitable product mix (e.g. fee-based products) Corporate Corporate Leveraging our strength in wholesale and investment banking through Mandiri Sekuritas Banking Banking Ensuri
Slide 48: Transformation themes for achieving these aspirations
Transformation themes for achieving these aspirations Strategic Aspiration: Dominant Multi-Specialist Bank Build Build winning winning Delivertailored Deliver tailored Strengthen Strengthenrisk risk organization organization and and propositionfor proposition for Revamp Revampalliance alliance manag
Slide 49: Vision of Bank Mandiri Implementation Roadmap
Vision of Bank Mandiri Implementation Roadmap ~12 months ~12-24 months ~12-24 months Horizon 1: Horizon 2: Horizon 3: Fix the leaks and lay foundations Consolidate and build momentum Accelerate and grow “Back on Track” “Outperform the Market” “Shaping the End Game” Build winning New BU structure a
Slide 50: Regulations on Asset Classification: PBI No. 7/2/PBI/2005
Regulations on Asset Classification: PBI No. 7/2/PBI/2005) Classification by Payment History Previously Current No change to BI Prov. Req. Category 1 - Current Current Current 1% Classification Classification Category 2 – Special Mention 1 – 90 days 1 – 90 days 5% by by Aging Aging ofof Category 3 –
Slide 51: Accounting for Interest, Provisions and Collateral
Accounting for Interest, Provisions and Collateral Classification Regular Loans Restructured Loans IBRA Loans Cat. 1 - Current Accrual Basis Accrual Basis Cash Basis Recognition Recognition of of Cat. 2 – Special Mention Accrual Basis Cash Basis Cash Basis Interest Interest Income Income Cat. 3 – Su
Slide 52: Quarterly Analysis of NPL and PL changes
Quarterly Analysis of NPL and PL changes Q2 2005# Q3 2005# Q4 2005# Q1 2006# Loan Background Net Net Net Value (Rp bn) DG to NPL UG to PL Net Corporate Loans Restructured 6.1% 5.7% 1.1% 12,873 0.8% - 0.8% IBRA 3.5% 0.9% 5.2% 3,503 - - - Pre-Merger 0.2% - 6.1% 258 - - - Post-Merger 12.0% 6.9% 3.3% 24
Slide 53: Q1 2006 Loan Detail: Collectibility by Business Unit
Q1 2006 Loan Detail: Collectibility by Business Unit Loan Profile: Q1 Collectibility (%) by BU - Bank Only Loan Profile: Q1 Collectibility (Rp bn) by BU - Bank Only 0.8% 2.1% 1.5% 4.5% 1.4% 50,000 0.9% 1.0% 8.4% 3.2% 17.1% 1.0% 24.4% 16.6% 14.4% 4.4% 40,000 5.5% 9.1% 13.1% 5.3% 5 30,000 5 4 11.1% 4
Slide 54: Q1 2006 Loan Detail: Downgrades to NPL
Q1 2006 Loan Detail*: Downgrades to NPL Loan Profile: Q1 Downgrades to NPL (Rp 1,558 bn) - Bank Only Corporate, Commercial & Small 100% IBRA O/S Business loans downgraded to NPL in Program Oth<5% Small Restr Q1 totaled Rp 1,558 billion (1.6% of Trading-Oth 90% Export total loans). Of these loans: Tr
Slide 55: Q1 2006 Loan Detail: Non-Performing Loans
Q1 2006 Loan Detail*: Non-Performing Loans Loan Profile: Q1 NPLs (Rp 26,424 bn) Bank Only Corporate, Commercial & Small 100% Program Business NPLs totaled Rp26,424 billion in O/S Export Q1, or 26.9% of total loans. Of these 90% IBRA NPLs in Q1: Oth<5% 22.1% remain current on interest Synd 80% paym
Slide 56: NPL Loan Detail: Quarterly by Interest Days Past Due
NPL Loan Detail*: Quarterly by Interest Days Past Due Quarterly Downgrades to NPL & Interest DPD - Bank Only Quarterly NPL Stock & Interest DPD - Bank Only Rp tn 30,000 60.0% 60% 12,000 75.0% Rp Value 65.5% Rp Value 51.9% 51.3% Current (%) Current (%) 10,000 <30 Days (%) 62.5% 25,000 <30 Days (%) 50
Slide 57: Q1 2006 Loan Detail: New Downgrades to Category 2
Q1 2006 Loan Detail*: New Downgrades to Category 2 Loan Profile: Q1 Downgrades to Cat. 2 loans (Rp 1,492 bn) - Bank Only Rp 1,492 billion (1.5% of total loans) in 100% Program IBRA O/S Corporate, Commercial & Small Oth<5% Export 61+ Restr Business loans were downgraded to 90% Mfg-Chem USD Category 2
Slide 58: Q1 2006 Loan Detail: Category 2 Loans
Q1 2006 Loan Detail*: Category 2 Loans Loan Profile: Q1 Category 2 Loans (Rp 9,928 bn) Bank Only Rp 9,928 billion (10.1% of total loans) in 100% Program Corporate, Commercial & Small IBRA New Bal. 61+ Small Oth<5% Synd. Business loans were in Category 2 in 90% 31-60 Export Q1. Of these Special Menti
Slide 59: Q1 2006 Loan Detail: Upgrades to PL
Q1 2006 Loan Detail*: Upgrades to PL Loan Profile: Q1 Upgrades to PL (Rp 58 bn) - Bank Only Corporate, Commercial & Small 100% Business loans upgraded to PL in Q1 O/S totaled Rp 58 billion (0.1% of total Program USD 90% loans). Of these loans: Oth<5% 80% Small 51.1% were to Commercial borrowers Re
Slide 60: Q1 2006 Loan Detail: Performing Loans
Q1 2006 Loan Detail*: Performing Loans Loan Profile: Q1 Performing Loans (Rp 58,343 bn) Bank Only Rp 58,343 billion (59.5% of total loans) 100% O/S in Corporate, Commercial & Small IBRA Other Small Business loans were performing in Q1. Oth<5% 2 90% Export Of these performing loans in Q1: USD Restr
Slide 61: Limited Restructured Loan Activity in Q1 '06
Limited Restructured Loan Activity in Q1 ‘06 Restructured Loan Movement 1999 - Q1 ‘06 Loans by Restructuring Type in Q1 2006 Others# IDR bn Write-Offs Repayments Restructuring Balance Maturity extension 53% Additional loans 2% LT loans w/convert. option Maturity 8% extension 10,583 27,423 25,123 29,
Slide 62: Q1 2006 Loan Detail: Restructured Loans
Q1 2006 Loan Detail*: Restructured Loans Loan Profile: Q1 Restructured Loans (Rp 18,763 bn) Bank Only 100% Of the remaining Rp 18,763 billion in Program Small PL UG restructured Corporate, Commercial 90% Oth<5% Export & Small Business loans in Q1, or 19.1% 5 of total loans: Comm 80% 53.0% are perf
Slide 63: Q1 2006 Loan Detail: IBRA Loans
Q1 2006 Loan Detail*: IBRA Loans Loan Profile: Q1 Restructured Loans (Rp 4,124 bn) Bank Only 100% Rp 4,124 billion in loans purchased Program Agri Export from IBRA remain on the books as of Comm 90% Trading IDR Q1, accounting for 4.2% of total loans: PL NC Mfg-Text WC 22.1% are performing 80% NPL
Slide 64: Loan Portfolio Sector Analysis, Q1 2006
Loan Portfolio Sector Analysis, Q1 2006 Mfg-Oth Agri Mfg-F&B Mfg-F&B 10.3% 11.6% Agri Constr Constr Mfg-Oth 9.5% 14.1% Trading-Oth Trading-Oth Mfg-Chem 8.3% Mfg-Text Mfg-Chem Oth<4% 7.6% Trading-Ret 18.7% Mfg-Text Bus Serv 6.2% Mfg-P&P 4.4% Trading-Ret Mfg-P&P Bus Serv 4.8% 4.6% Oth<4% (1) Non-conso
Slide 65: Q1 2006 Loan Detail: Corporate Loans
Q1 2006 Loan Detail: Corporate Loans Loan Profile: Q1 Corporate Loans Only (Rp 43,073 bn) Bank Only Rp 43,073 billion in loans were in the 100% 61+ Other PL UG Corporate portfolio in Q1, or 43.9% of O/S 31-60 < 30 Export IBRA total loans. Of the Corporate Loans in 90% Oth<5% 5 1 Day Q1: Synd. 80%
Slide 66: Q1 2006 Loan Detail: Commercial & Small Business Loans
Q1 2006 Loan Detail: Commercial & Small Business Loans* Loan Profile: Q1 Commercial & Small Loans* Only (Rp 41,694 bn) Bank Only Rp 41,694 billion in loans were in the 100% IBRA PL UG Other Commercial portfolio in Q1, or 42.5% 61+ Program 90% 5 Oth<5% USD Export Restr of total loans. Of the Commerci
Slide 67: Q1 2006 Loan Detail: Rupiah Loans
Q1 2006 Loan Detail*: Rupiah Loans Loan Profile: Q1 Loans (Rp 56,095 bn) Bank Only Rp 56,095 billion in loans were Rupiah 100% IBRA PL UG 61+ Other denominated in Q1, or 57.2% of total 5 90% Oth<5% Small Program loans. Of the Rupiah Loans in Q1: Export Restr 4 31-60 Bus Serv 79.2% are performing l
Slide 68: Q1 2006 Loan Detail: Foreign Currency Loans
Q1 2006 Loan Detail*: Foreign Currency Loans Loan Profile: Q1 FX Loans (Rp 28,673 bn) Bank Only Rp 28,673 billion in loans were foreign 100% 61+ PL UG currency denominated in Q1, or 29.2% O/S 31-60 Export of total loans. Of the FX Loans in Q1: 90% < 30 Comm Oth<5% IBRA 48.5% are performing loans w
Slide 69: Electronic banking channels rapidly expanding
Electronic banking channels rapidly expanding ATM Average Daily Transaction Volume and Value Other Transaction Services 338,518 7,364 Debit Cards Issued* (000) SMS Subs. (000) 6,988 293,246 SMS Trans. (000) Avg Daily Volume (000) Internet Bank. Subs. (000) Avg Daily Value (Rp Mn) 263,908 Call Center
Slide 70: Credit Card business growth has resumed
Credit Card business growth has resumed Mandiri Visa Card Holders and EOQ Receivables Visa Card Monthly Sales by Type of Transaction (Rp Billion) 764.9 Transfer Balance 731.9752.4 709.4 Cash Advance 7 Receivables (Rp Bn) 679.1 Retail 30 7 18 Cards (000s) 650.7 4 2 18 7 4 4 28 4 20 2 22 9 2 21 11 20
Slide 71: Credit Card portfolio stable throughout in Q1
Credit Card portfolio stable throughout in Q1 Mandiri Visa Card Delinquency Rates Monthly Charge-offs, NPLs & Recoveries (%) (Rp Billion) 106.1 98.7 21.3% NPLs (90+DPD) Write-Offs 30 DPD - Rp 82.9 Recoveries 90 DPD - Rp 30 DPD - Cards 75.6 16.8% 16.04% 90 DPD - Cards 70.7 67.2 13.3% 12.7%10.7% 10.2%
Slide 72: Summary of Principal Subsidiaries
Summary of Principal Subsidiaries Bank Syariah Mandiri Mandiri Sekuritas AXA Mandiri • Equity Investment of Rp650.3 billion • Equity Investment of Rp671.7 billion • Equity Investment of Rp69.5 billion • Total Assets Rp8,228billion, with total • Total Assets Rp1,028 billion, total liabilities • Total
Slide 73: Bank Syariah Mandiri
Bank Syariah Mandiri Branch Network & Customer Growth Summary Balance Sheet (Rp Billions) Rp Bn 2003 2004 2005 Q1 ‘06 587 533 Total Assets 3,422 6,870 8,273 8,228 Branches Cash & placement Customers (000s) 1,023 796 1,689 1,232 w/ BI Current Accounts & Placements 36 235 168 231 357 w/Other Banks Sec
Slide 74: Bank Syariah Mandiri
Bank Syariah Mandiri Summary P&L (Rp billions) 2002 2003 2004 2005 Q1 ‘06 Total Operating Income 162.7 279.4 584.2 865.5 208.7 3rd Party Share on Returns 71.5 148.4 269.2 386.4 112.2 Bank's Share in Operating Income 91.3 131.1 315.0 479.1 96.5 Other Operating income 35.5 51.9 102.0 93.6 27.1 Operati
Slide 75: Mandiri Sekuritas
Mandiri Sekuritas Summary Balance Sheet Summary P&L Rp Bn 2003 2004 2005 Q1 ‘06 Rp Bn 2003 2004 2005 Q1 ‘06 Total Assets 1,079.7 1,435.7 1,258.7 1,027.9 Operating Revenue 102.4 244.0 197.3 47.7 Brokerage Commissions 3.9 15.6 20.9 4.5 Cash & Equivalent 82.9 117.4 51.8 104.7 Investment Mgmt Fees 5.1 5
Slide 76: New Management Team as of 22 May 2006
New Management Team as of 22 May 2006 Agus Martowardojo I Wayan Agus Mertayasa Omar S. President Director Deputy President Director Anwar Director Abdul Rachman Sasmita Zulkifli Zaini Director Director Director Sentot A. Sentausa Bambang Setiawan Budi G. Sadikin Director Director Director Thomas Ari
Slide 77: Curriculum Vitae Director
CURRICULUM VITAE Director Personal Data: Name : Sentot A. Sentausa Date of Birth : Jakarta, 10 June 1957 Educational Background: Master of Business Administration, Monash University, Melbourne, 1995; Bachelor of Statistics, Faculty of Math and Science, Padjadjaran University, Bandung, 1983 Work Expe
Slide 78: Curriculum Vitae Director
CURRICULUM VITAE Director Personal Data: Name : Thomas Arifin Date of Birth : Tanjung Enim, 16 Januari 1961 Educational Background: Master of Business Administration, European University, Toulouse, France, 1993-Now; Bachelor of Management, University of Indonesia , Jakarta, 1990 Bachelor of Accounti
Slide 79: Curriculum Vitae Director
CURRICULUM VITAE Director Personal Data: Name : Budi Gunadi Sadikin Date of Birth : Bogor, 6 Mei 1964 Educational Background: Bachelor of Physics, Faculty of Math and Science, Institute of Technology, Bandung 1988 Work Experience: Executive Vice President, Head Of Consumer Mass Market Bank Danamon,
Slide 80: Curriculum Vitae Director
CURRICULUM VITAE Director Personal Data: Name : Bambang Setiawan Date of Birth : Semarang, 20 November 1958 Educational Background: Master of Business Administration in Accounting, Temple University, Philadelphia, Pennsylvania, 1993; Bachelor of Accounting, Airlangga University, Surabaya, 1984 Work
Slide 81: Curriculum Vitae Director
CURRICULUM VITAE Director Personal Data: Name : Riswinandi Date of Birth : Jakarta, 12 September 1957 Educational Background: Bachelor of Corporate Management, Trisakti University, Jakarta, 1983 Work Experience: Group Head Credit Recovery II Bank Mandiri, 2005-2006; Commissioner, Bank Mandiri, 2003;
Slide 82: Staffing and Distribution Network Growth
80 104 2,664 Q1 '06 6,121 Q1 '06 2,560 2005 90 6,025 2005 500 2,470 2004 5,537 2004 490 2,022 2003 4,716 2003 520 1,559 2002 4,000 2002 ATM-Link Network 500 1,184 2001 3,160 2001 Staffing and Distribution Network Growth ATM Network 211 533 2000 2000 New ATMs 513 1999 1999 -0,1 21,179 Q1 '06 909 Q1 '
Slide 83: Loan growth, quality and provisioning relative to peers
81 32.4% Lippo 42% Niaga 41.8% BCA 44% Mandiri Ratio of Provisions to NPL 50.0% Mandiri 50% BNI Loan to Deposit Ratio 54.2% BNI 73% BII 80% Permata Loan growth, quality and provisioning relative to peers 55.2% Panin (%) (%) 55.3% BII 83% Panin 77.8% BRI 109% Danamon 78.5% Permata 146% BCA 80.8% Dana
Slide 84: Asset and liability mix relative to peers
82 8.7% Mandiri 3.7% Lippo 9.4% Lippo 4.2% BCA Yield on Assets (p.a.) 10.2% BCA 4.7% BNI Cost of Funds (p.a.) 10.3% BNI 5.0% BRI 10.4% BII 5.3% Mandiri (%) (%) 10.6% Panin 5.5% BII 11.1% Niaga 5.8% Permata 11.7% Permata 6.1% Niaga 12.3% Danamon 6.4% Danamon 16.5% BRI 7.2% Panin 35.3% Lippo 28.4% Nia
Slide 85: Efficiency measures relative to peers
83 6.1% BRI 44.4% BCA 4.5% Permata 52.0% Danamon 4.0% BII 56.1% Panin 3.9% Lippo 56.1% Niaga Cost/ Income Cost/Assets *Annualized 3.7% Danamon 56.6% BRI (%)* (%) 3.6% BNI 59.3% Mandiri 2.9% BCA 59.7% BNI 2.8% Niaga 65.7% Lippo 2.5% Mandiri 70.2% BII 2.2% Panin 78.1% Permata 293 Permata 54 Mandiri 29
Slide 86: Measures of scale and returns relative to peers
84 197 Panin 2.8% Mandiri 298 Niaga Return on Equity (After Tax) 12.6% BNI 546 Permata 14.1% Panin 674 BRI 14.3% Permata ATMs 691 Lippo 21.1% Niaga (%) 717 BII 24.1% Lippo 804 Danamon 24.2% Danamon 2,272 BNI 26.0% BII 2,560 Mandiri Measures of scale and returns relative to peers 28.2% BCA 3,447 BCA
Slide 87: Consolidated Balance Sheets (Assets)
85 BALANCE SHEETS As of March 31, 2006 and 2005 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION March 31,2006 March 31,2005 March 31,2006 March 31,2005 (Unaudited) (Unaudited) (Unaudited) (Unaudited) ASSETS 1. Cash 3,166,068 2,274,552 3,266,239 2,359,664 2. Placements with Bank Indonesia a.
Slide 88: Balance Sheets: Liabilities and Shareholders' Equity
86 BALANCE SHEETS As of March 31, 2006 and 2005 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION March 31,2006 March 31,2005 March 31,2006 March 31,2005 (Unaudited) (Unaudited) (Unaudited) (Unaudited) LIABILITIES AND SHAREHOLDERS' EQUITY 1 Demand deposits a. Rupiah 30,176,496 27,510,591 31,4
Slide 89: Statements of Profit and Loss
87 STATEMENTS OF PROFIT AND LOSS For the periods from January 1 to March 31, 2006 and 2005 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION March 31,2006 March 31,2005 March 31,2006 March 31,2005 (Unaudited) (Unaudited) (Unaudited) (Unaudited) INCOME AND EXPENSES FROM OPERATIONS 1. Interest
Slide 90: Statements of Commitments and Contingencies
88 STATEMENTS OF COMMITMENTS AND CONTINGENCIES As of March 31, 2006 and 2005 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION March 31,2006 March 31,2005 March 31,2006 March 31,2005 (Unaudited) (Unaudited) (Unaudited) (Unaudited) COMMITMENTS Commitment Receivables 1. Unused fund borrowings f
Slide 91: Management of the Bank and Shareholders as of March 31, 2006
MANAGEMENT OF THE BANK AS OF MARCH 31, 2006 SHAREHOLDER Jakarta, May 31, 2006 Board of Commissioners - Chairman : Edwin Gerungan Republic of Indonesia : 69% S. E & O - Deputy Chairman : Muchayat (Ultimate Shareholders') Board of Directors - Commissioner : Soedarjono PT Bank Mandiri (Persero) Tbk. -
Slide 92: Earning Assets and Other Information
EARNING ASSETS AND OTHER INFORMATION As of March 31, 2006 and 2005 (In Millions of Rupiah) BANK March 31, 2006 March 31, 2005 No DESCRIPTION SPECIAL SUB SPECIAL SUB CURRENT DOUBTFUL LOSS TOTAL CURRENT DOUBTFUL LOSS TOTAL MENTION STANDARD MENTION STANDARD I Related Parties A EARNING ASSETS 1 Placemen
Slide 93: Foreign Exchange and Derivatives Transaction
FOREIGN EXCHANGE AND DERIVATIVES TRANSACTION As of March 31, 2006 (In Millions of Rupiah) BANK (Unaudited) NO TRANSACTION Contract Market Value Derivative Receivable & Payable Contract Value Hedging Others Receivable Payable Netting Agreement A. Exchange Rate Related 1 Spot - 3,870 - - - 2 Forward -
Slide 94: Calculation of CAR
92 CALCULATION OF CAR As of March 31, 2006 and 2005 (In Millions of Rupiah) BANK NO DESCRIPTION March 31, 2006 March 31, 2005 I. COMPONENTS A. CORE CAPITAL 21,632,308 23,363,919 1. Paid-Up Capital 10,144,789 10,070,008 2. Disclosed Reserves a. Agio 6,016,827 5,970,132 b. Disagio (-/-) - - c. Shares
Slide 95: Loan Purchased from IBRA
93 LOAN PURCHASED FROM IBRA January 1, 2006 to March 31, 2006 (In millions of Rupiah) (Based on Bank Indonesia's Regulation No. 4/7/PBI/2002 dated September 27, 2002 Chapter VI section 24) a. Summary of loan purchased from IBRA Amount NO DESCRIPTION (Unaudited) 1 Loan principal / outstanding balance
Slide 96: Financial Ratios
94 FINANCIAL RATIOS As of March 31, 2006 and 2005 BANK NO KEYS RATIOS March 31, 2006 March 31, 2005 I. Capital 1. CAR by considering credit risk 25.22% 26.62% 2. CAR by considering credit risk and market risk 24.56% 25.77% 3. Premises and Equipment to Capital 27.64% 24.54% II. Earning Assets 1. Non-
Slide 97: Equity Research Contact Details
Equity Research Contact Details BROKERAGE ANALYST TELEPHONE E-MAIL ABN AMRO Asia Securities Indonesia Manoj Nanwani 6221-515-6014 manoj.nanwani@id.abnamro.com BAHANA SECURITIES Andy Lesmana 6221-250-5081 alesmana@bahana.co.id BNP PARIBAS PEREGRINE Tjandra Lienandjaja 6221-5798-4661 tjandra.lienandja
Slide 98: For Additional Information
97 For Additional Information: Please refer to our website at www.bankmandiri.co.id Or Contact: Ekoputro Adijayanto Corporate Secretary Tel: (6221) 524 5299 Fax: (6221) 5296 4024 Jonathan Zax Head of Investor Relations Tel: (6221) 3002-3171 Fax: (6221) 5290 4249 E-mail: ir@bankmandiri.co.id PT Bank
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