PT Bank Danamon Indonesia Tbk Class A · IDX:BDMN
PT Bank Danamon Indonesia Tbk Class A — Bank Danamon Indonesia — Q1 2007 Earnings Presentation
31 slides from PT Bank Danamon Indonesia Tbk Class A's earnings presentation, Apr 26, 2007
Slide 1: Analyst Briefing First Quarter 2007 Results
Analyst Briefing First Quarter 2007 Results Jakarta, 26 April 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 info
Slide 2: Agenda
Agenda • Financial Results • Asset Quality • Business Update • Appendix Slide 2
Slide 3: Executive Summary
Executive Summary • Net profit after tax nearly double to Rp. 482 billion • Total loans grew by 18% driven by the strong growth in mass market business • Total deposits rose by 21% supported by all types of deposits, including saving account that grew by 22% • Operating income rose by 41% to Rp. 2.2
Slide 4: Highlights of Income Statement
Highlights of Income Statement Rp. billion 1Q06 1Q07 UYoY 4Q06 1Q07 UQoQ \ Interest Income 2,519 2,934 16% 2,901 2,934 1% Interest Expense (1,294) (1,275) (1%) (1,349) (1,275) (5%) Net Interest Income 1,225 1,659 35% 1,552 1,659 7% Fee Income 313 504 61% 406 504 24% Operating Income 1,539 2,163 41%
Slide 5: Highlights of Balance Sheets
Highlights of Balance Sheets Rp. billion 1Q06 1Q07 UYoY 4Q06 1Q07 UQoQ \ Total Assets 70,758 84,946 20% 82,073 84,946 4% Loans (gross) 1 36,584 43,109 18% 42,986 43,109 0% Government Bonds 16,569 19,453 17% 18,702 19,453 4% Total Deposits 48,324 58,475 21% 57,830 58,475 1% Current Account 4,380 5,02
Slide 6: Key Ratios
Key Ratios % 1Q06 1Q07 UYoY 4Q06 1Q07 UQoQ Net Interest Margin 1 8.4 10.0 1.6 9.9 10.0 0.1 Cost / Income 50.3 47.5 (2.8) 50.3 47.5 (2.8) Loan / Deposit 78.5 75.7 (2.8) 75.5 75.7 0.2 Capital Adequacy 2 24.3 20.6 (3.7) 20.4 20.6 0.2 ROAA 1.4 2.3 0.9 2.0 2.3 0.3 ROAE 11.4 21.2 9.8 19.9 21.2 1.3 NPL - G
Slide 7: Net interest margin steadily improved to 10.0% on the back of higher asset yields
Net interest margin steadily improved to 10.0% on the back of higher asset yields Net Interest Income Net Interest Margin Rp. billion Quarterly, % Mass Market 16.7 16.6 16.5 17.0 16.5 Adira c Other Businesses Earning Asset Yield 1,659 1,552 8.9 8.4 8.1 7.7 7.7 22% 18% 1,225 c Cost of Funds 14% 30% 3
Slide 8: Fee income rose by 61% and contributed to 23% of operating income
Fee income rose by 61% and contributed to 23% of operating income Fee Income Rp. billion Non Credit Related Rp. billion 1Q06 1Q07 UYoY 504 Credit Related Credit related fees 119 176 48% 406 Cash management 79 77 (3%) 313 328 222 Treasury products 124 200 61% 194 Adira Finance (9) 7 N.M. 184 176 Adir
Slide 9: New initiatives drove the increase in operating expenses
New initiatives drove the increase in operating expenses Manpower Costs Rp. billion UYoY Operating Expenses 1Q06 1Q07 UYoY Variable Costs 665 40% Fixed Costs 590 475 34% 106% Business as usual 651 773 19% 32% 23% Manpower costs 392 499 28% 77% 68% 66% 20% G&A expenses 259 274 5% 1Q06 4Q06 1Q07 New I
Slide 10: Cost of credit stood at 2.9% of earning assets in the first quarter of 2007
Cost of credit stood at 2.9% of earning assets in the first quarter of 2007 Cost Of Credit 1) Cost of Credit / Avg. Earning Assets 2) Rp. billion Quarterly Mass Market Adira Finance Other Businesses 365 16% 4.0% 291 Avg. 2006: 2.9% 263 20% 2.8% 2.9% 2.9% 37% 37% 2.1% 54% 54% 47% 26% 9% 1Q06 4Q06 1Q0
Slide 11: Robust growth in mass market offset the slow pick up in other segments
Robust growth in mass market offset the slow pick up in other segments Breakdown of Loans Rp. billion 42,986 43,109 40,962 UQoQ UYoY 38,625 13% 36,584 15% 16% Rp.bn % Rp.bn % 14% 13% 13% 13% 13% Corporate (569) (9%) 719 15% 13% 14% 19% 19% 19% Commercial 8 0% 620 13% 20% 21% SME (15) (0%) 854
Slide 12: Consumer loans grew by 9% supported by motorcycle, credit card and hire purchase financing
Consumer loans grew by 9% supported by motorcycle, credit card and hire purchase financing Breakdown of Consumer Loans Rp. billion 16,763 16,728 UQoQ UYoY 16,167 15,286 15,513 9% 11% Rp.bn % Rp.bn % 12% 14% 14% 6% 8% 7% JF/AB 1) (306) (16%) (652) (29%) 7% 7% 7% 7% 7% 8% 7% Personal Loan 5% 5% 7%
Slide 13: Government bonds rose by 17% on the back of favorable market development
Government bonds rose by 17% on the back of favorable market development Breakdown of Government Bonds Portfolio Rp. billion Variable Rate Bonds as % of Assets The duration of government bonds is 2.1 Fixed Rate T years as of March 31, 2007 as compared 23% 23% 23% 23% to 2.5 years a year earlier 21%
Slide 14: Strong funding growth to support loan expansion
Strong funding growth to support loan expansion Breakdown of Interest Bearing Funds Rp. billion Loan / Total Funding 67% Structured Funding 66% d 65% 65% Time Deposits 64% Savings Current Account 66,040 66,988 61,938 59,756 12% 13% Breakdown of Structured Funding 54,419 13% 13% As of March 31, 2007
Slide 15: Capital Adequacy Ratio stood at 20.6% as of March 31, 2007
Capital Adequacy Ratio stood at 20.6% as of March 31, 2007 Movement of Capital Adequacy Ratio % Rp. billion Mar-06 Mar-07 UYoY Tier 1 Capital 9,113 8,722 (4%) 24.3 0.3 Tier 2 Capital 3,692 3,890 5% (0.4) Investments 1,122 1,286 15% 20.6 Total Capital after 11,683 11,326 (3%) (3.6) Investments Risk W
Slide 16: Agenda
Agenda • Financial Results • Asset Quality • Business Update • Appendix Slide 16
Slide 17: Well diversified loan portfolio across economic sectors
Well diversified loan portfolio across economic sectors Loans by Economic Sector Loans by Interest Rate As of March 31, 2007 As of March 31, 2007 General Trading & Manufacturing Variable Rate Distribution 16% 52% 28% Business Services 6% Transportation 3% Consumer Others 39% Fixed Rate 8% 48% Total
Slide 18: Loan's Collectibility
Loan’s Collectibility % Total 3.4% 3.6% 3.5% 3.3% 3.2% 10.5% 10.3% 9.4% 9.8% 9.9% Non-Performing 86.1% 87.1% 86.9% Special Mention 86.1% 86.9% Current Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Breakdown of Non-Performing Loans Rp. billion 1,337 1,372 1,365 1,304 1,223 40% 59% 55% 63% 64% Collectibility 5 2
Slide 19: 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 1 - 30 Days Consumer 0 Day Mass Market 4,074 6% 6% 8% 6% 3,931 4,030 9% 3,761 3,819 2% 3% 3% 3% 10% 16% 15% 16% 9% 16% 18% 18
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 % Consumer Adira Mass Market Specific SME Commercial Corporate General 158 142 1,365 136 1,304 131 1,223 115 31% 27% 95 29% 94 7% 7% 90 88 9% 72 30% 32% 26% 8% 13% 12%
Slide 21: Agenda
Agenda • Financial Results • Asset Quality • Business Update • Appendix Slide 21
Slide 22: Danamon Simpan Pinjam (Mass Market)
Danamon Simpan Pinjam (Mass Market) Outstanding Loans Self Employed Mass Market (SEMM) Rp. billion • 693 SEMM units are in operation as of Consumer Mass Market Self Employed Mass Market 6,964 March 2007. We plan to open additional 7 6,228 5,436 units this year 4,073 4,633 • NPL ratio stood at 2.2% i
Slide 23: Danamon Simpan Pinjam (Mass Market)
Danamon Simpan Pinjam (Mass Market) Cost of credit - SEMM SEMM’s asset quality has shown an % of Average Loans encouraging improvement during the year • Cost of credit has steadily declined to 6.5% 6.2% 3.8% on the back of strong loan growth 5.5% • 30 days past due (DPD) loans as a 3.8% percentage o
Slide 24: Adira Finance (consumer auto financing)
Adira Finance (consumer auto financing) Outstanding Receivables • Total receivables rose by 15% to Rp. Rp. billion 11,364 billion as of March 31, 2007 Outs. Receivables (LHS) New Financing (RHS) 14,000 2,500 • Market share in new motorcycle financing 12,000 2,250 units rose to 13.5% in the first qua
Slide 25: Adira Finance (consumer auto financing)
Adira Finance (consumer auto financing) Cost of credit NPL and Repo Assets % of Average Receivables % of Receivables 2.5% 6.3% 6.6% Repossessed assets 2.0% T 5.4% 5.1% 4.9% 1.5% 1.0% c Non performing loans 0.5% 1Q06 2Q06 3Q06 4Q06 1Q07 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Loss on Repo Assets and Turno
Slide 26: Adira Finance (consumer auto financing)
Adira Finance (consumer auto financing) Rp. billion 1Q06 1Q07 UYoY 4Q06 1Q07 UQoQ New Financing Units 134,024 194,240 45% 221,514 194,240 (12%) New Financing Volume 1,513 2,196 45% 2,474 2,196 (11%) O/S Receivables 9,922 11,364 15% 11,227 11,364 1% Interest Income 691 813 18% 798 813 2% Interest Exp
Slide 27: Latest Updates
Latest Updates AGM on 27 March 2007 has approved the payment of 50% of its Payment of 2006 NPAT as dividend. Total dividend amounted to Rp. 663 Dividend billion or approximately Rp. 131.44 per share. The dividend payments are scheduled in June 2007 • Danamon has completed the issuance of Rp. 1.5 tri
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 March. 31, 2007 Daily trading volume in thousands Share price in Rupiah Asia Financial (Indonesia) 68.87% 30,000 7,000 Share Price f 25,000 6,000 20,000 5,000 15,000 4,000 Public 31.13% 10,000 3,000 5,00
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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