PT Bank Danamon Indonesia Tbk Class A · IDX:BDMN
PT Bank Danamon Indonesia Tbk Class A — Q1 2006 Earnings Presentation
32 slides from PT Bank Danamon Indonesia Tbk Class A's earnings presentation, Apr 20, 2006
Slide 1: 1st Quarter 2006 Results Analyst Briefing
1st Quarter 2006 Results Analyst Briefing J.W. Marriot Hotel Jakarta 20 April 2006 Disclaimer: This report has been prepared by P.T. Bank Danamon Indonesia Tbk indepentdently and is circulated for the purpose of general information only. It is not intended to the specific person who may receive this
Slide 2: Highlights of 1Q 2006 results
Highlights of 1Q 2006 results • YoY loan growth of 18% to Rp. 36 trillion • YoY deposits growth of 21% to Rp. 49 trillion • Normalized NPAT growth of 195% compared to 4Q05 Slide 2
Slide 3: Agenda
Agenda • Financial Results • Asset Quality • Business Updates • Appendixes Slide 3
Slide 4: Income Statement Highlights
Income Statement Highlights Rp. billion 1Q05 1Q06 UYoY 4Q05 1Q06 UQoQ Net Interest Income 1,122 1,225 9% 1,130 1,225 8% Normalized Fee Income 259 313 21% 277 313 13% Normalized Op. Income 1,381 1,539 11% 1,407 1,539 9% Operating Expenses 652 777 19% 846 777 (8%) Pre-Provision Op. Profit 729 762 5% 5
Slide 5: Balance Sheet Highlights
Balance Sheet Highlights Rp. billion 1Q05 1Q06 UYoY 4Q05 1Q06 UQoQ Assets & Commitments 68,059 83,916 23% 82,093 83,916 2% Assets 60,458 70,758 17% 67,803 70,758 4% Loans (gross) 30,337 35,704 18% 35,995 35,704 (1%) Government Bonds 18,033 16,569 (8%) 14,102 16,569 17% Deposits 40,231 48,500 21% 47,
Slide 6: Key Ratios
Key Ratios % 1Q05 1Q06 UYoY 4Q05 1Q06 UQoQ Net Interest Margin 1) 9.2 8.4 (0.8) 8.5 8.4 (0.1) Normalized Cost / Income 43.4 50.3 6.9 59.9 50.3 (9.6) Loan / Deposit 76.4 78.5 2.1 80.8 78.5 (2.3) Capital Adequacy 2) 29.6 26.3 (3.3) 23.5 26.3 2.8 Normalized ROAA 2.5 1.6 (0.9) 0.6 1.6 1.0 Normalized ROA
Slide 7: Interest margin was sustained by high asset yield
Interest margin was sustained by high asset yield Steady increase in asset yield is due to improvement in asset composition and shifting loan mix to higher yielding loans Net Interest Income Rp. billion Earning Assets Yield (%) 16.5 SEMM 15.5 13.8 13.9 14.1 Adira 12.2 12.2 13.1 11.9 Others 8.9 1,225
Slide 8: Fee Income
Fee Income Increase in fee income was largely driven by credit related fees and mark to market of marketable securities Breakdown of Fee Income Rp. billion Rp. billion 1Q05 1Q06 UYoY Non Credit Credit Related Credit related fees 95 119 25% 313 259 Cash management 61 72 18% Mark to market 76 113 49%
Slide 9: Increase in operating expenses was in part due to business expansion
Increase in operating expenses was in part due to business expansion Expansion in DSP and Adira Finance accounted for 48% of the expense growth Operating Expenses Rp. billion 777 Expense Growth Rp. billion UYoY DSP Expansion 29 36% 652 110 DSP 81 Adira Finance 31 25% 154 Adira Finance 123 IT 13 33%
Slide 10: Loan growth was driven by mass market, consumer and commercial segments
Loan growth was driven by mass market, consumer and commercial segments Outstanding Loans Rp. trillion 35.7 35.9 35.7 33.4 30.3 16% 14% 14% 16% Growth Rp. bn UYoY 13% 14% 18% 13% 14% Corporate (779) (14%) 13% 21% 21% Commercial 1,154 31% 20% 21% 23% SME 606 9% Consumer 1,584 12% 42% 42% 40% 42% 42%
Slide 11: High yielding consumer auto financing supports the growth in consumer loans
High yielding consumer auto financing supports the growth in consumer loans Consumer Loans Rp. billion 14,073 14,945 14,924 14,405 5% 5% 12,821 5% 6% 5% 19% 19% Growth Rp. billion UYoY 20% 16% 22% Credit Card 135 20% 25% 25% 26% 26% Housing (458) (21%) 26% Car 405 12% Motorcycle 1,474 24% 49% 51% 51
Slide 12: Encouraging results from Commercial Banking Business - Danamon Sahabat
Encouraging results from Commercial Banking Business - Danamon Sahabat SME and Commercial Loans Rp. billion 12,409 12,241 11,961 11,534 10,649 Commercial loans 4,691 4,924 4,718 4,560 3,770 SME loans 7,243 7,550 7,485 6,879 6,974 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Slide 12
Slide 13: Government bonds portfolio
Government bonds portfolio Government Bonds Rp. trillion The average duration of government Variable Rate bonds holdings is 2.5 years as of Fixed Rate March 31, 2006 30% % of Assets 25% 23% Rp. billion 1Q05 1Q06 UYoY 22% 21% Held to 18.0 11,138 7,806 (30%) 16.6 maturity 16.0 14.8 14.1 Available for
Slide 14: Steady growth in deposits despite competitive market conditions
Steady growth in deposits despite competitive market conditions Deposits grew by 21%YoY and LDR improved to 78.5% in March 2006 Customer Deposits Rp. billion Tim e Deposits Loan / Deposits 82% 81% Current Account & Savings 79% 77% 76% 48,500 47,089 43,813 44,662 40,231 63% 69% 72% 74% 67% 37% 33% 31
Slide 15: Capital Adequacy Ratio at 26.3%
Capital Adequacy Ratio at 26.3% Movement of Capital Adequacy Ratio % Rp. billion 1Q05 1Q06 UYoY 4.1 Tier 1 Capital 7,629 9,133 19% 29.6 (0.7) Tier 2 Capital 3,739 3,692 (1%) 26.3 Investments 889 1,122 26% (6.7) Total Capital after Investments 10,479 11,683 11% Risk Weighted Assets (RWA)* 35,418 44,5
Slide 16: Agenda
Agenda • Financial Results • Asset Quality • Business Updates • Appendixes Slide 16
Slide 17: Diversified loan portfolio across economic sectors
Diversified loan portfolio across economic sectors Loans by Economic Sector Loans by Interest Rate As of March 31, 2005 As of March 31, 2005 General Trading & Manufacturing Variable Rate Distribution 17% 54% 28% Business Services 7% Transportation 2% Consumer Others 40% Fixed Rate 6% 46% Total Loans
Slide 18: Loan's Collectibility and Breakdown of Non-Performing Loans
Loan’s Collectibility % Total 2.9% 2.7% 2.2% 2.6% 3.4% 8.4% 8.6% 9.1% 10.8% 10.5% Non-Performing 88.7% 88.7% 86.0% Special Mention 88.7% 86.1% Current Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Breakdown of Non-Performing Loans Rp. billion 1,223 929 905 866 37% 786 20% 37% 40% Collectibility 5 22% 27% 50% 2
Slide 19: Increase in special mention loans is due to growing mass market and consumer finance
Increase in special mention loans is due to growing mass market and consumer finance 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 3,882
Slide 20: Unfavorable operating environment impacted NPL in several businesses
Unfavorable operating environment impacted NPL in several businesses Non-Performing Loans (NPL) NPL by Segments Rp. billion Rp. billion e NPL Ratio 1,223 3.4% 2.9% 2.7% 2.6% 2.2% 29% 1,223 Corporate 866 Commercial 9% 905 929 866 SME 786 26% Mass Market 48% Consumer - Adira 9% 8% Consumer 19% 15% 8%
Slide 21: Adequate provisions to cover non-performing loans
Adequate provisions to cover non-performing loans Increase in cost of credit was largely due to growing consumer auto financing and mass market businesses Normalized Cost Of Credit Loan Loss Provision / NPL Rp. billion % Other Businesses Specific Mass Market General 176 Adira 140 143 146 291 93 115
Slide 22: Agenda
Agenda • Financial Results • Asset Quality • Business Updates • Appendixes Slide 22
Slide 23: Danamon Simpan Pinjam (DSP)
Danamon Simpan Pinjam (DSP) Additional 15 units of DSP Self-Employed Mass Market (SEMM) were opened in 1Q06, bringing a total 633 units of DSP SEMM SEMM loans by size Number of DSP Units As of March 31, 2005 Consumer Mass Market 752 739 729 733 Self-Employed Mass Market Rp.50 – 200 million > Rp.200
Slide 24: Consumer auto financing business with Adira Finance
Consumer auto financing business with Adira Finance Rp. billion 1Q05 1Q06 UYoY 4Q05 1Q06 UQoQ Financing Units 167,739 134,024 (20%) 172,103 134,024 (22%) Financing Volume 1,998 1,513 (24%) 1,952 1,513 (22%) O/S Receivables 8,133 9,919 22% 10,173 9,919 (2%) Interest Income 516 691 34% 692 691 (0%) In
Slide 25: Motorcycle financing remains the main contributor of top line growth
Motorcycle financing remains the main contributor of top line growth Breakdown of Receivables Market Share of New Motorcycle % Total Receivables % of Units, Monthly New MC Used MC 15% New Car Used Car Others 14% 1% 1% 1% 1% 1% 13% 9% 9% 10% 10% 10% 14% 12% 16% 18% 18% 19% 6% 7% 11% 7% 7% 7% 10% 9% 6
Slide 26: Higher losses on repossessed assets resulted in higher net credit losses
Higher losses on repossessed assets resulted in higher net credit losses Repossessed Assets Loss on repo. assets 37% Rp. billion 35% 34% 30% 31% 30% 31% 28% 24% 25% 24% 24% Repo. assets as % receivables 21% 2.2% 2.0% 2.0% 2.0% 1.9% 1.9% 1.8% 1.8% 1.7% 1.6% 1.6% 1.5% 216 207 201 198 195 1.3% 184 179
Slide 27: Non-performing loans and loan write-off of automotive consumer financing business
Non-performing loans and loan write-off of automotive consumer financing business Non-Performing Loans Rp. billion Write-off as a % receivables 4.1% 3.8% 2.7% 3.0% 3.0% 2.1% 2.2% 2.1% 2.4% 2.7% 1.0% 1.1% 1.4% Non-performing loans ratio 1.8% 1.7% 1.7% 1.7% 1.6% 1.6% 1.5% 1.5% 1.4% 1.4% 184 1.3% 1.2%
Slide 28: Latest Updates
Latest Updates We plan to pay out 50% of our 2005 profits as dividend. 2005 Dividend We will seek approval from our shareholders in the upcoming AGM • Danamon is in the process of negotiating with IFC and other foreign institutions to obtain long-term loans. Structured These loans will be used to fu
Slide 29: Agenda
Agenda • Financial Results • Asset Quality • Business Updates • Appendixes Slide 29
Slide 30: Danamon Share Price performance
Danamon Share Price performance Daily share price and trading volume Shareholding Structure As of March 31, 2005 Share Price Volume Asia Financial Morgan Stanley 7,000 70,000,000 Indonesia Securities Ltd. 69.6% 6.9% 6,000 60,000,000 5,000 50,000,000 4,000 40,000,000 3,000 30,000,000 Public (ownershi
Slide 31: Credit Ratings
Credit Ratings Rating Agencies Rating / Outlook Standard & Poor’s Long-term and Short-term Local Currency BB- / Stable / B November 2005 Long-term and Short-term Foreign Currency BB- / Stable / B Subordinated Debt B / Stable Moodys Long-term and Short-term Bank Deposit B3 / Pos / Not Prime June 2005
Slide 32: 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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