PT Bank Danamon Indonesia Tbk Class A · IDX:BDMN
PT Bank Danamon Indonesia Tbk Class A — Bank Danamon Indonesia — H1 2007 Earnings Presentation
31 slides from PT Bank Danamon Indonesia Tbk Class A's earnings presentation, Jul 24, 2007
Slide 1: Analyst Briefing 1st Half 2007 Results
Analyst Briefing 1st Half 2007 Results Jakarta, 24 July 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 this report. The informatio
Slide 2: Agenda
Agenda • Financial Results • Asset Quality • Business Update • Appendix Slide 2
Slide 3: Executive Summary
Executive Summary • Net profit after tax grew by 83% to Rp 1,020 billion in the first half of 2007 • Loans grew by 20% to Rp 46 trillion driven by the strong growth in mass market and retail businesses • Deposits increased by 18% to Rp 61 trillion on the back of strong growth in current and saving a
Slide 4: Income Statement Highlights
Income Statement Highlights Rp. billion 2Q06 1Q07 2Q07 UQoQ 1H06 1H07 UYoY \ Interest Income 2,676 2,934 2,995 2% 5,195 5,929 14% Interest Expense (1,283) (1,275) (1,273) 0% (2,577) (2,548) (1%) Net Interest Income 1,393 1,659 1,722 4% 2,618 3,381 29% Fee Income 338 504 538 7% 651 1,042 60% Operatin
Slide 5: Balance Sheet Highlights
Balance Sheet Highlights Rp. billion 2Q06 1Q07 2Q07 UQoQ 1H06 1H07 UYoY \ Total Assets 74,503 84,946 88,043 4% 74,503 88,043 18% Loans (gross) 1) 38,625 43,109 46,394 8% 38,625 46,394 20% Government Bonds 17,153 19,453 18,957 (3%) 17,153 18,957 11% Total Deposits 51,727 58,475 61,294 5% 51,727 61,29
Slide 6: Key Ratios
Key Ratios % 2Q06 1Q07 2Q07 UQoQ 1H06 1H07 UYoY Net Interest Margin 1) 9.2 9.9 10.0 0.1 8.8 10.0 1.2 Cost / Income 46.8 47.5 46.1 (1.4) 48.4 46.8 (1.6) Loan / Deposit 75.6 75.7 75.5 (0.2) 75.6 75.5 (0.1) Capital Adequacy 2) 22.9 20.6 20.5 (0.1) 22.9 20.5 (2.4) ROAA 1.7 2.3 2.4 0.1 1.6 2.4 0.8 ROAE 1
Slide 7: Net interest margin stood at 10% in the first half of 2007
Net interest margin stood at 10% in the first half of 2007 as compared to 8.8% in the previous year period Net Interest Income Net Interest Margin Rp. billion Quarterly, % Danamon Simpan Pinjam Adira Finance 16.7 16.6 16.5 16.1 15.7 Other Businesses 3,381 c Earning Asset Yield 23% 8.4 8.1 7.7 2,618
Slide 8: Fee income rose by 60% and contributed to 24% of operating income
Fee income rose by 60% and contributed to 24% of operating income in the first half of 2007 Fee Income Rp. billion Rp. billion 1H06 1H07 UYoY Non Credit Related Credit Related Credit related fees 274 388 42% 1,042 Cash management 148 151 2% 651 654 Treasury products 90 387 330% Adira Finance 10 15 5
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 Almost half of the increase in operating Rp. billion UYoY expenses was due to new initiatives Variable Costs 37% 1,317 Fixed Costs 959 32% 94% Operating Expenses 1H06 1H07 UYoY 23% Business as usual 1,283 1,528 19%
Slide 10: Cost of credit declined slightly to 2.8% of earning assets
Cost of credit declined slightly to 2.8% of earning assets in the second quarter of 2007 Cost of Credit 1) Cost of Credit / Avg. Earning Assets 2) Rp. billion Annualized Danamon Simpan Pinjam Adira Finance Other Businesses 4.0% 744 726 Avg. 2006: 2.9% 19% 18% 2.9% 2.9% 2.8% 40% 45% 2.1% 41% 37% 1H06
Slide 11: Loans increased by 20% driven by mass market and retail businesses
Loans increased by 20% driven by robust growth in mass market and retail businesses Outstanding Loans Composition Rp. billion 46,394 42,986 43,109 UQoQ UYoY 40,962 16% 38,625 Growth Rp.bn % Rp.bn % 19% 17% 20% 21% 13% Corporate 1) 346 5% (256) (3%) 13% 13% 13% 12% 19% Commercial 349 6% 784 15% 1
Slide 12: Mass market loans expanded by 36%
Mass market loans expanded by 36% supported by strong growth in DSP and motorcycle loans Mass Market Loans composition Rp. billion 20,146 Growth UQoQ UYoY 18,567 17,659 15% 16,289 Rp.bn % Rp.bn % 16% 14,810 17% 19% Hire Purchase 68 28% 215 232% 20% 44% 45% Cars 9 0% (4) 0% 46% 47% Motorcycles
Slide 13: Retail loans increased by 30%
Retail loans increased by 30% on the back of strong growth in credit card and personal loans Retail Loans Composition Rp. billion 4,032 UQoQ UYoY Growth 3,543 11% Rp.bn % Rp.bn % 3,432 3,305 3,102 10% 8% 10% 16% 6% 8% Others 106 31% (62) (12%) 16% 6% 7% 5% 12% 13% Personal Loan 93 44% 306 NM 5%
Slide 14: Government bonds represented 22% of the bank's assets
Government bonds represented 22% of the bank’s assets Government Bonds Composition Rp. billion Variable Rate The duration of government bonds is 3.0 Bonds as % of Assets Fixed Rate T years as of June 30, 2007 as compared to 1.6 years a year earlier 23% 23% 23% 22% 21% Rp.bn Jun-06 Jun-07 UYoY 19,453
Slide 15: Funding increased by 19% on strong deposit growth
Funding increased by 19% on the back of strong deposit growth as well as structured funding Breakdown of Interest Bearing Funds Rp. billion Loan / Total Funding Structured Funding 66% 65% 65% d 65% Time Deposits 64% Savings UYoY Current Account 70,996 19% 66,034 66,983 61,922 21% Structured Funding
Slide 16: Capital Adequacy Ratio (CAR) stood at 20.5% as of June 30, 2007
Capital Adequacy Ratio (CAR) stood at 20.5% as of June 30, 2007 Movement of Capital Adequacy Ratio Rp. billion Jun-06 Jun-07 UYoY % Tier 1 Capital 8,251 9,055 10% 0.9 Tier 2 Capital 3,758 3,894 4% 22.9 Investments (1,109) (1,265) 14% (0.2) 20.5 Total Capital after 10,900 11,684 7% (3.1) Investment R
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 June 30 As of June 30 Manufacturing Variable Rate General Trading & 2007: 15% 2007: 47% Distribution 2006: 19% 2006: 52% 2007: 29% 2006: 28% Business Services 2007: 7% 2006: 6% Transportatio
Slide 19: Loan's Collectibility
Loan’s Collectibility % Total 3.6% 3.3% 3.3% 3.2% 3.1% 10.3% 9.6% 9.8% 9.9% 8.4% Non-Performing 86.1% 87.0% Special Mention 87.1% 86.9% 88.5% Current Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Breakdown of Non-Performing Loans % Total 1,372 1,365 1,338 1,304 1,359 55% 59% 64% 64% 57% Collectibility 5 Collec
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 Corporate 61 - 90 Days SME/Commercial 31 - 60 Days Consumer 1 - 30 Days DSP 0 Day 4,030 4,074 3,931 6% 3,819 2% 3,740 8% 8% 9% 9% 3% 3% 4% 10% 16% 3% 16% 15% 15% 14% 16% 18% 13
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 % Specific Consumer Adira Finance DSP General SME Commercial Corporate 158 153 1,338 1,359 142 1,304 136 131 20% 27% 28% 95 88 10% 94 8% 7% 90 88 31% 28% 32% 12% 20% 12
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 UYoY • 700 units of DSP SEMM are currently in Consumer Mass Market 7,967 72% Self Employed Mass Market operation 6,964 51% 6,228 • SEMM extended Rp 3,310 billion new 5,436 4,633 loans in the first half of 2007, up 2
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 6.9% 5.7% 5.5% • Cost of credit stood at 4.7% of average 4.7% receivables in the second quarter of 3.7% 2007 as compared to 6.9% in the previous year’s quarter
Slide 25: Adira Finance (consumer auto financing)
Adira Finance (consumer auto financing) New financing • New financing amounted to Rp. 4,860 Rp. billion billion in the first half of 2007, a 38% 2,454 2,474 2,664 increase from the same period last year 2,196 2,018 • Market share in new motorcycles rose to 14.5% as compared to 11.5% in the earlier y
Slide 26: Adira Finance (consumer auto financing)
Adira Finance (consumer auto financing) Cost of credit NPL and Repo Assets % of Average Receivables % of Receivables 2.0% 6.6% 5.4% 1.5% Non performing loans 5.1% 5.0% T 4.9% 1.0% S 0.5% Repossessed assets 0.0% 2Q06 3Q06 4Q06 1Q07 2Q07 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Loss on Repo. Assets and Turn
Slide 27: Adira Finance (consumer auto financing)
Adira Finance (consumer auto financing) Rp. billion 2Q06 1Q07 2Q07 UQoQ 1H06 1H07 UYoY New Financing Units 159,039 194,240 232,662 20% 293,063 426,902 46% New Financing Volume 2,018 2,196 2,664 21% 3,531 4,860 38% O/S Receivables 10,124 11,364 11,872 4% 10,124 11,872 17% Interest Income 701 813 830
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 June 30, 2007 Daily trading volume in thousands Share price in Rupiah Asia Financial (Indonesia) 68.48% 30,000 8,000 Share Price f 25,000 7,000 20,000 6,000 Public 31.52% 15,000 5,000 10,000 4,000 Asia F
Slide 30: Credit Ratings
Credit Ratings Danamon Long-term / Short-term Local Currency BB- / Stable / B Standard & Poor’s Long-term / Short-term Foreign Currency BB- / Stable / B Subordinated Debt B / Stable Long-term / Short-term Bank Deposit B2 / Positive / Not Prime Moody’s Bank Financial Strength D / Stable Subordinated
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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