PT Bank Mandiri (Persero) Tbk · IDX:BMRI
PT Bank Mandiri (Persero) Tbk — Q2 2006 Earnings Presentation
92 slides from PT Bank Mandiri (Persero) Tbk's earnings presentation, July 2006
Slide 1: Q2 2006 Results Presentation
PT Bank Mandiri (Persero) Tbk Q2 2006 Results Presentation 0
Slide 2: Share Information
Share Information 2,400 Shareholders as of 30 June 2006 Description 2,200 BMRI Investors Shares % 2,000 JCI DOMESTIC 1,800 1. Government 1 14,000,000,000 68.9% 1,600 2. Retail 9,697 689,959,500 3.4% 1,400 3. Employees 8,776 74,265,402 0.4% 1,200 4. Pension Funds 98 83,902,500 0.4% 1,000 5. Assurance
Slide 3: Bank Mandiri Presentation Contents
Bank Mandiri Presentation Contents Results Results Overview Overview Page Page ## Financial Financial Summary Summary Page Page ## Q2 Q2 2006 2006 Summary Summary Financials Financials 22 -- 33 Summary Summary Balance Balance Sheets Sheets && P&L P&L 33 33 -35 -35 Quarterly Quarterly Ass
Slide 4: Key Quarterly Balance Sheet Items & Financial Ratios
Key Quarterly Balance Sheet Items & Financial Ratios IDR billion / % H1 2005 FY 2005 H1 2006 YoY Change (%) Gross Loans 104,032 106,853 107,828 3.8 Government Bonds 92,536 92,056 92,338 (0.2) Total Assets 256,784 263,383 255,278 (0.6) Customer Deposits 183,184 206,289 197,027 7.6 Total Equity 22,787
Slide 5: Summary P&L Information – H1 2005 vs. H1 2006
Summary P&L Information – H1 2005 vs. H1 2006 H1 2005 H1 2006 YoY Change % of % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets (%) Interest Income 9,556 7.6 13,266 10.2 38.8 Interest Expense (5,001) (4.0) (8,416) (6.5) 68.3 Net Interest Income 4,555 3.6 4,850 3.7 6.5 Other Operating Income 1,14
Slide 6: Quarterly asset mix and interest source
4 As a % of Total Interest Income 47.1% 40.6% 55.1 107.8 92.3 Q2 '06 57.6 105.1 92.2 Q1 '06 40.9% 50.0% 64.5 106.9 92.1 Q4 '05 51.4 106.7 92.3 Q3 '05 Total assets fell by 0.5% Y-o-Y but rose 0.2% Q-o-Q 41.4% 50.6% 60.2 104.0 92.5 Q2 '05 Other Assets 56.6 99.5 93.2 Q1 '05 45.6% 46.2% 60.7 94.4 93.1 Q
Slide 7: Loan volume grew Q-o-Q across all segments but Commercial
Loan volume grew Q-o-Q across all segments but Commercial Quarterly Loan Data – Consolidated Quarterly Loan Segment Details – Bank Only 56.8% Loans (Rp tn) 54.7% Corporate 42.3 44.0 44.7 45.2 40.2 40.6 LDR (%) 38.2 39.5 47.9%53.7% 51.8% 42.5% 37.7 36.1% 35.1 35.7 35.4% Commercial 31.4 33.0 32.9 26.5
Slide 8: Consumer lending rose 8.8% Y-o-Y on Mortgage growth
Consumer lending rose 8.8% Y-o-Y on Mortgage growth Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type 12,000 Other Growth (%) Cash Collateral Loans 876 Loan Type Credit Cards 688 888 792 653 Y-o-Y Q-o-Q 1,241 Payroll Loans 1,279 10,000 1,367 1,354 Home Equity Loans 1,257 Mortgage
Slide 9: Recap Bond Portfolio stable at Rp92.3 tn in Q2 '06
Recap Bond Portfolio stable at Rp92.3 tn in Q2 ‘06 At Fair Value, June 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 1.7 27.0 59.7 88.4 95.8% Hedge Bonds - - - - - Total 2.3 28.9 61.1 92.3 % of Total 2.
Slide 10: Deposit analysis – Rp Savings up 7.1% in Q2
Rp Savings up 7.1% in Q2 while Rp & FX Time accounts drop Deposit Analysis – Bank Only 200 Retail Deposits (%) Low-Cost Deposits (%) 15.7 180 15.9 15.1 23.4 21.5 17.8 20.6 20.6 19.4 18.6 93.2 18.0 17.3 13.3 16.3 90.8 89.1 16.5 13.8 12.5 11.6 105.1 11.1 106.9 160 107.7 106.1 96.7 79.8 104.1 72.3 100.
Slide 11: Savings deposit volume rebounds to 23.6% of total in Q2
Savings deposit volume rebounds to 23.6% of total in Q2 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 11.9% 12.6% SBI 13.1% TD 11.7% 30.6% 10.6% 8.5
Slide 12: Margins drop slightly from a revised Q1 level of 4.2%
10 11.4% 7.8% 7.6% 3.8% 4.1% Q2 '06 11.8% 4.1% 4.2% Q1 '06 10.7% 7.3% 3.4% 3.6% Q4 '05 9.4% 5.7% 3.7% 3.8% Q3 '05 8.2% 4.6% 4.8% 4.6% 4.8% 3.4% 3.6% Q2 '05 Margins drop slightly from a revised Q1 level of 4.2% 8.9% 8.7% 4.1% 4.3% Q1 '05 4.1% 4.3% Q4 '04 3.8% 4.0% Q3 '04 8.4% 8.8% 4.2% 4.5% Q2 '04 4.
Slide 13: 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% 7.3% 13.1% 11.9% 12.6% 6.5% 12.5% 12.6% 12.4% 5.7% 11.7% 10.2% 11.1% 5
Slide 14: Non-loan Related Fees & Commissions jump on Subsidiaries
Non-loan Related Fees & Commissions jump on Subsidiaries Non-loan related fees & commissions Details of Q2 2005 & 2006 Credit Cards % of Operating Income* Transfer, Coll., Clearing & Bank Ref. Non-Loan Q2 Q2 Y-o-Y Opening L/C & Bank Guarantees Related Fees & Fee from Subsidiaries Commissions 2005 20
Slide 15: Cost to Income Ratio remains below 50% with restrained G&A
Cost to Income Ratio remains below 50% with restrained G&A Quarterly Consolidated Operating Expenses & CIR Breakdown of Q2 2005 & 2006 Operating Expenses 83.3% Change Q2 ‘05 Q2 ‘06 CIR* (%) (Y-o-Y) Annual Avg CIR (%) Personnel Expenses 57.6% Base Salary 254,537 244,849 (3.8%) Other Allowances 313,18
Slide 16: Q2 2006 Loan Movement, PL & NPL
Q2 2006 Loan Movement, PL & NPL Performing Loan Movements (Rp bn) - Bank Only Non-Performing Loan Movements (Rp bn) – Bank Only 73,614 70,944 1,478 1,496 2,385 303 564 27,126 653 1,478 1,496 1,086 26,469 322 Beg. U/G from D/ G t o Net FX End Beg. U/G to PL D/G from Disburse. Collections Write-Offs F
Slide 17: Q2 2006 Movement in Category 1 and 2 Loans
Q2 2006 Movement in Category 1 and 2 Loans Category 1 Loan Movements (Rp bn) – Bank Only Category 2 Loan Movements (Rp bn) – Bank Only 61,439 216 58,857 2,730 32 1,902 1,546 24 12,087 1,902 1,546 345 12,175 1,464 1,454 87 Beg. Bal. D/G to 2 U/G from D/G to U/G from Net FX End Bal. Beg. Bal. Cat. 1 U
Slide 18: Provisioning coverage reflects BI requirements
16 50% 40% 30% 20% 10% 0% 12.2% 12,175 Q2 '06 12,086 Q1 '06 12.9% 12,912 Q4 '05 16,423 Q3 '05 2 - Special Mention Loans (Rp Bn) 14,394 Q2 '05 12,352 Q1 '05 9.4% 8,334 Q4 '04 Category 2 Loans – Bank Only Cat 2 % 9,852 Q3 '04 9,912 Q2 '04 15.0% 10,621 Q1 '04 10,983 Q4 '03 Provisioning coverage reflect
Slide 19: NPL, Provisioning & Collateral Details – Bank Only
NPL, Provisioning & Collateral Details – Bank Only Non-Performing Loans by Segment Collateral Valuation Details NPLs Q2U NPLs Collectibility 1 2 3 4 5 (Rp tn) (Rp tn) (%) Total Cash Corporate 16.11 (0.61) 35.66% Prov. (Rp bn) 617 607 395 1,940 9,385 Commercial 8.61 (0.91) 26.16% % Cash 1.0% 5.0% 12.
Slide 20: Quarterly Analysis of Upgrades and Downgrades
Quarterly Analysis of Upgrades and Downgrades* Total Corporate, Commercial & Small Business Loans Net Upgrades/Downgrades# Q2 2006 Details Loan Q2 ‘06 Q3 Q4 Q1 Q2 DG to UG to Background Balance (Rp 2005 2005 2006 2006 NPL PL bn) Restructured 18,444.8 4.5% 2.9% 0.8% 0.4% 1.7% 1.3% IBRA 4,070.4 0.5% 4
Slide 21: H1 2006 core earnings up 8.4% from H1 2005
H1 2006 core earnings up 8.4% from H1 2005 Core Earnings Profit After Tax & ROE IDR bn RoE - After Tax 8,000 Gain on Sale/Value of Securities (Annualized) FX Gain 26.2% Core Earnings 23.6% 7,000 21.5% 22.8% 1,651 2,072 775 Pre-Provision Operating Profit 6,000 402 819 5,000 114 1,408 2,021 367 8.1% 1
Slide 22: Strong CAR maintained at 25.1%
20 25.1% 110.7 27.8 Q2 '06 23.7% 25.2% 110.7 27.9 Q1 '06 115.9 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 Stron
Slide 23: Additional Factors
Additional Factors Aggregate of IDR 24.68 tn (US$ 2.66 bn) in written-off loans as of end-June 2006, with significant recoveries on-going: ¾ 2001: IDR 2.0 tn ¾ 2002: IDR 1.1 tn Written-off Written-off ¾ 2003: IDR 1.2 tn Loans Loans ¾ 2004: IDR 1.08 tn ¾ 2005: IDR 0.818 tn (US$ 83.2 mn) ¾ Q1 ’06: I
Slide 24: 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 22
Slide 25: Operating revenues have significantly improved
Operating revenues have significantly improved Q2 Q2 -- 2005 2005 Q1 Q1 -- 2006 2006 Q2 -- 2006 Q2 2006 593 550 535 1,517 1,309 1,531 2,490 1,928 2,069 1,566 1,294 947 Net Fee Based Overhead Operating Net Fee Based Overhead Operating Net Fee Based Overhead Operating Interest Income Expense Profit In
Slide 26: Balanced Operating Profit from key Business Units
Balanced Operating Profit from key Business Units Cons. Micro & Business Unit Performance (Rp bn) Corp. Comm. Treasury* CRG Finance Retail Earning Assets (Avg. Bal.) 25,786 22,534 11,507 7,929 105,966 24,782 Deposits & Borrowings (Avg. Bal.) 58,428 23,426 0 110,146 7,235 0 Interest Margin on Assets
Slide 27: Key business initiatives drive operating profit growth
Key business initiatives drive operating profit growth 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 stra
Slide 28: Example of CST & Alliance Program in PT Telkom
Example of CST & Alliance Program in PT Telkom Supplier/ Employees Telkom Customer/Channel Value Value Chain Chain Telkom Telkom & & Group Group End End User User Facilities to sub-contractor that Optimize Funding and Leverage Telkom’s customer provides construction as well Lending facilities throug
Slide 29: Gross loan expansion shows active underwriting
Gross loan expansion shows active underwriting, but repayments reduce reported net growth Gross Gross Gross Gross Expansion Expansion Expansion Expansion 5,766 14,709 827 10,886 9,602 2,304 1,592 1,044 100.083 100,325 3,787 98,070 Dec ‘05 Disburse Term FX Payment Mar ‘06 Disburse FX Term Payment W/O
Slide 30: Significant decline in NPLs attributed to top 30 debtors
Significant decline in NPLs attributed to top 30 debtors Rp tn Bank Only Mahakam Ekagraha, Budi Acid Jaya, Sulfindo, Sun Hope, Global Chart 0.47 1.76 Apac Inti Corpora 0.38 0.31 18.46 0.64 0.17 0,80 16.11 14.84 Jun '05 Upgrade Payment Write Off Downgrade Dec '05 Upgrade Downgrade Term Jun '06 paymen
Slide 31: Status of selected large debtors
Status of selected large debtors Raja Bank Mandiri and other syndication members require RGM to increase installment Raja Garuda Garuda amount to improve loan quality and ensure final settlement by June 2010 Mas Mas Debtor has defaulted on the loan restructuring agreement and Bank Mandiri Kiani
Slide 32: Status of selected large debtors
Status of selected large debtors Funds from strategic investors interested in PT Lativi Media Karya have been A. A. Latief Latief deposited in Bank Mandiri Group Group Loans to PT Pasaraya Tosersa Jaya & PT A. Latief Nusa Karya have been handed over to DJPLN (State Collection Agency) Controlli
Slide 33: Commercial segment has significantly deteriorated
Commercial segment has, however, significantly deteriorated Bank Only NPL increasing in the Commercial Segment Restructuring and Consolidation Program NPL (%) 6.89 17.97 19.31 23.38 26.05 26.16 Strengthen portfolio management by setting up account strategy and 8,833 tight monitoring of implementat
Slide 34: Financial Sector Policy Package announced
Financial Sector Policy Package announced The recently announced Financial Sector Policy Package confirms the Government’s commitment to revise the Regulations relevant to NPL resolution amongst State-owned banks. Financial Sector Policy Package: Banking Institutions Policy Aim Improving the perform
Slide 35: Summary Balance Sheet: June 2005, March & June 2006
Summary Balance Sheet: June 2005, March & June 2006 Q2’05 Q1‘06 Q2 ‘06 Y-o-Y Rp (trillions) Rp (trillions) Rp (trillions) USD (billions)# Rp % Change Total Assets 256.8 254.9 255.3 27.6 (0.6) Cash 2.3 3.3 3.0 0.3 30.4 Current Account w/BI 15.9 22.2 20.2 2.2 27.0 Certificates of BI 5.4 7.3 10.3 1.1 9
Slide 36: Summary Quarterly Balance Sheet: Q3 '05 – Q2 '06
Summary Quarterly Balance Sheet: Q3 ‘05 – Q2 ‘06 Q3 ‘05 Q4 ‘05 Q1 ‘06 Q2 ‘06 Q-o-Q Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# Rp % Change Total Assets 250.3 263.4 254.9 255.3 27.6 0.2 Cash 2.6 2.5 3.3 3.0 0.3 (8.3) Current Accounts w/BI 18.8 20.3 22.2 20.2 2.2 (9.0) Certificates of BI 0.1 6.5 7.3 10.
Slide 37: Summary P&L Information – Q2 2006
Summary P&L Information – Q2 2006 Q-o-Q Q2 2005 Q1 2005 Q2 2006 Change % of % of Rp % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets* (Billions) Av.Assets (%) Interest Income 4,680 7.4 6,507 10.0 6,759 10.6 3.9 Interest Expense (2,594) (4.1) (4,297) (6.6) (4,119) (6.5) (4.1) Net Interest Income
Slide 38: Recap Bond Portfolio Details, June 2006 – Bank Only
Recap Bond Portfolio Details, 30 June 2006 – Bank Only Interest Rate Nominal Mark To Fair Value Series Maturity Date (%) Trading AFS HTM Market Trading AFS HTM Fixed Rate FR0002 15-Jun-09 14.00% 68 104.52 71 FR0005 15-Jul-07 12.25% 65,500 100.19 65,621 FR0010 15-Mar-10 13.15% 1,350,000 102.64 1,350,
Slide 39: Bank Mandiri Credit Ratings
Bank Mandiri 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 Mandiri
Slide 40: 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 41: 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 42: 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 43: 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 44: 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 45: 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 46: 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 47: Quarterly Analysis of NPL and PL changes
Quarterly Analysis of NPL and PL changes Q3 2005# Q4 2005# Q1 2006# Q2 2006# Loan Background Net Net Net Value (Rp bn) DG to NPL UG to PL Net Corporate Loans Restructured 5.7% 1.1% 0.8% 12,759 1.3% 1.7% 0.4% IBRA 0.9% 5.2% - 3,474 - 3.8% 3.8% Pre-Merger - 6.1% - 294 - - - Post-Merger 6.9% 3.3% 2.1%
Slide 48: Q2 2006 Loan Detail: Collectibility by Business Unit
Q2 2006 Loan Detail: Collectibility by Business Unit Loan Profile: Q2 Collectibility (%) by BU - Bank Only Loan Profile: Q2 Collectibility (Rp bn) by BU - Bank Only 50,000 2.8% 8.6% 5.8% 1.3% 0.9% 15.6% 1.6% 1.5%3.9% 24.1% 1.2% 15.3% 6.2% 12.1% 13.9% 40,000 4.4% 8.2% 10.8% 3.3% 5 30,000 5 12.3% 4 4
Slide 49: Q2 2006 Loan Detail: Downgrades to NPL
Q2 2006 Loan Detail*: Downgrades to NPL Loan Profile: Q2 Downgrades to NPL (Rp 1,304 bn) - Bank Only Corporate, Commercial & Small 100% Program Business loans downgraded to NPL in L/C Oth<5% Export Small USD Q2 totaled Rp 1,304 billion (1.3% of 90% Trading-Ret Invest. total loans). Of these loans: R
Slide 50: Q2 2006 Loan Detail: Non-Performing Loans
Q2 2006 Loan Detail*: Non-Performing Loans Loan Profile: Q2 NPLs (Rp 25,665 bn) Bank Only Corporate, Commercial & Small 100% Program Business NPLs totaled Rp25,665 billion in L/C Export Q2, or 25.6% of total loans. Of these Oth<5% 90% NPLs in Q2: IBRA Bus Serv 19.0% remain current on interest Synd
Slide 51: 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 12,000 75.0% 30,000 60.0% 60% Rp Value 65.5% Rp Value51.9% 51.3% Current (%) Current (%) 10,000 <30 Days (%) 62.5% 25,000 <30 Days (%) 50%
Slide 52: Q2 2006 Loan Detail: New Downgrades to Category 2
Q2 2006 Loan Detail*: New Downgrades to Category 2 Loan Profile: Q2 Downgrades to Cat. 2 loans (Rp 1,304 bn) - Bank Only Rp 1,304 billion (1.3% of total loans) in 100% Pre-merger Corporate, Commercial & Small Oth<5% Export O/S 61+ Agri-Other Program Business loans were downgraded to 90% Category 2 i
Slide 53: Q2 2006 Loan Detail: Category 2 Loans
Q2 2006 Loan Detail*: Category 2 Loans Loan Profile: Q2 Category 2 Loans (Rp 10,101 bn) Bank Only Rp 10,101 billion (10.1% of total loans) 100% in Corporate, Commercial & Small 61+ Program IBRA Small Oth<5% Synd. Business loans were in Category 2 in Export L/C UG to PL 90% 31-60 Q2. Of these Special
Slide 54: Q2 2006 Loan Detail: Upgrades to PL
Q2 2006 Loan Detail*: Upgrades to PL Loan Profile: Q2 Upgrades to PL (Rp 1,414 bn) - Bank Only Corporate, Commercial & Small 100% Small L/C Business loans upgraded to PL in Q2 Comm IBRA Oth<5% totaled Rp 1,414 billion (1.4% of total 90% IDR loans). Of these loans: 80% Restr 97.5% were to Corporate
Slide 55: Q2 2006 Loan Detail: Performing Loans
Q2 2006 Loan Detail*: Performing Loans Loan Profile: Q2 Performing Loans (Rp 60,672 bn) Bank Only Rp 60,672 billion (60.6% of total loans) 100% in Corporate, Commercial & Small Other Other Small Business loans were performing in Q2. O/S Oth<5% Export 2 90% Of these performing loans in Q2: USD Restr
Slide 56: Limited Restructured Loan Activity in Q2 '06
Limited Restructured Loan Activity in Q2 ‘06 Restructured Loan Movement 1999 - Q2 ‘06 Loans by Restructuring Type in Q2 2006 Others# IDR bn Write-Offs Repayments Restructuring Balance Maturity extension 52% Additional loans 2% LT loans w/convert. option Maturity 8% extension 10,583 27,423 25,123 29,
Slide 57: Q2 2006 Loan Detail: Restructured Loans
Q2 2006 Loan Detail*: Restructured Loans Loan Profile: Q2 Restructured Loans (Rp 18,611 bn) Bank Only 100% Of the remaining Rp 18,611 billion in Program Small NPL DG restructured Corporate, Commercial 90% Oth<5% Synd. & Small Business loans in Q2, or 18.6% of total loans: Comm 5 80% Trading 52.4%
Slide 58: Q2 2006 Loan Detail: IBRA Loans
Q2 2006 Loan Detail*: IBRA Loans Loan Profile: Q2 IBRA Loans (Rp 4,070 bn) Bank Only 100% Rp 4,070 billion in loans purchased Program NPL DG Agri Export from IBRA remain on the books as of Comm 90% Mfg-Text IDR Q2, accounting for 4.1% of total loans: Trading WC 23.5% are performing 80% 85.1% of
Slide 59: Loan Portfolio Sector Analysis, Q2 2006
Loan Portfolio Sector Analysis, Q2 2006 Mfg-Oth Trading-Oth Mfg-F&B Mfg-F&B 9.4% 12.1% Trading-Oth Plantations 9.2% Plantations Mfg-Oth 13.7% Constr Constr 8.7% Mfg-Chem Mfg-Text Oth<4% Mfg-Chem 16.1% 8.2% Bus Serv Mfg-Text Trading-Ret Mfg-P&P 7.3% 4.5% Mfg-P&P Trading-Ret Bus Serv 5.5% 5.3% Oth<4%
Slide 60: Q2 2006 Loan Detail: Corporate Loans
Q2 2006 Loan Detail: Corporate Loans Loan Profile: Q2 Corporate Loans Only (Rp 45,178 bn) Bank Only Rp 45,178 billion in loans were in the 100% 31-60 Program Other NPL DG Corporate portfolio in Q2, or 45.1% of O/S Oth<5% Export L/C total loans. Of the Corporate Loans in 90% 5 < 30 Q2: IBRA Bus Serv
Slide 61: Q2 2006 Loan Detail: Commercial & Small Business Loans
Q2 2006 Loan Detail: Commercial & Small Business Loans* Loan Profile: Q2 Commercial & Small Loans* Only (Rp 41,159 bn) Bank Only Rp 41,159 billion in loans were in the 100% Program NPL DG Commercial portfolio in Q2, or 41.1% Other 5 61+ Export 90% Oth<5% USD of total loans. Of the Commercial & NPL N
Slide 62: Q2 2006 Loan Detail: Rupiah Loans
Q2 2006 Loan Detail*: Rupiah Loans Loan Profile: Q2 Loans (Rp 56,698 bn) Bank Only Rp 56,698 billion in loans were Rupiah 100% Synd. Other NPL DG denominated in Q2, or 56.7% of total 5 61+ Program Oth<5% 90% Small Export loans. Of the Rupiah Loans in Q2: NPL NC 4 31-60 Mfg-Chem Restr 79.7% are per
Slide 63: Q2 2006 Loan Detail: Foreign Currency Loans
Q2 2006 Loan Detail*: Foreign Currency Loans Loan Profile: Q2 FX Loans (Rp 29,6393 bn) Bank Only Rp 29,639 billion in loans were foreign 100% 61+ NPL DG currency denominated in Q2, or 29.6% 31-60 O/S Export of total loans. Of the FX Loans in Q2: 90% Oth<5% Comm L/C 52.3% are performing loans with
Slide 64: Electronic banking channels rapidly expanding
Electronic banking channels rapidly expanding ATM Average Daily Transaction Volume and Value Other Transaction Services 354,143 Debit Cards Issued* (000) 8,233 338,518 SMS Subs. (000) SMS Trans. (000) Avg Daily Volume (000) Internet Bank. Subs. (000) 293,246 6,988 Avg Daily Value (Rp Mn) Call Center
Slide 65: Credit Card business growth has resumed
Credit Card business growth has resumed Mandiri Visa Card Holders and EOQ Receivables Visa Card Quarterly Sales by Type of Transaction (Rp Billion) 784.1 752.4 Transfer Balance 709.4 Receivables (Rp Bn) Cash Advance 42 Cards (000s) 650.7 18 Retail 81 8 68 56 23 48 24 Transferred 16 10 59 from GE 62
Slide 66: Credit Card portfolio stable throughout in Q2
Credit Card portfolio stable throughout in Q2 Mandiri Visa Card Delinquency Rates Monthly Charge-offs, NPLs & Recoveries (%) (Rp Billion) 140.9 21.3% NPLs (90+DPD) Write-Offs 30 DPD - Rp Recoveries 90 DPD - Rp 106.1 30 DPD - Cards 16.0% 98.7 16.8% 90 DPD - Cards 16.1% 82.9 13.3% 75.6 67.2 70.7 12.7%
Slide 67: Summary of Principal Subsidiaries
Summary of Principal Subsidiaries Bank Syariah Mandiri Mandiri Sekuritas AXA Mandiri • Equity Investment of Rp663.9 billion • Equity Investment of Rp652.6 billion • Equity Investment of Rp70.9 billion • Total Assets Rp8,724 billion, with total • Total Assets Rp1,297 billion, total liabilities • Tota
Slide 68: Bank Syariah Mandiri
Bank Syariah Mandiri Branch Network & Customer Growth Summary Balance Sheet (Rp Billions) Rp Bn 2003 2004 2005 H1 ‘06 629 Total Assets 3,422 6,870 8,273 8,724 Branches 533 Cash & placement Customers (000s) 1,023 796 1,689 1,037 w/ BI Current Accounts & Placements 36 235 168 191 w/Other Banks 357 Sec
Slide 69: Bank Syariah Mandiri
Bank Syariah Mandiri Summary P&L (Rp billions) 2002 2003 2004 2005 H1 ‘06 Total Operating Income 162.7 279.4 584.2 865.5 435.7 3rd Party Share on Returns 71.5 148.4 269.2 386.4 223.1 Bank's Share in Operating Income 91.3 131.1 315.0 479.1 212.6 Other Operating income 35.5 51.9 102.0 93.6 61.3 Operat
Slide 70: Mandiri Sekuritas
Mandiri Sekuritas Summary Balance Sheet Summary P&L Rp Bn 2003 2004 2005 H1 ‘06 Rp Bn 2003 2004 2005 H1 ‘06 Total Assets 1,079.7 1,435.7 1,258.7 1,297.4 Operating Revenue 102.4 244.0 197.3 74.6 Cash & Equivalent 82.9 117.4 51.8 60.7 Brokerage Commissions 3.9 15.6 20.9 8.7 Time deposit 50.0 50.0 - -
Slide 71: New Management Team as of 22 May 2006
New Management Team as of 22 May 2006 Agus Martowardojo I Wayan Agus Mertayasa Omar S. Anwar President Director Deputy President Director Director Acting CFO Consumer Finance Abdul Rachman Sasmita Zulkifli Zaini Director Director Director Corporate Banking Technology & Commercial Banking Operations
Slide 72: Organization Structure
Organization Structure Audit Committee Board of Commissioners Risk Policy Committee Nomination & Remuneration Committee Good Corporate Governance Committee New Directorate Board of Directors Consolidated Directorate President Director & CEO Groups moved to New Directorate Agus Martowardojo Subsidiar
Slide 73: Staffing and Distribution Network Growth
71 2,667 107 H1 '06 6,131 H1 '06 2,560 90 2005 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 Staffing and Distribution Network Growth 2001 ATM Network 211 533 2000 2000 New ATMs 513 1999 1999 21,149 921 -0,2 12 H1 '06 H
Slide 74: Loan growth, quality and provisioning relative to peers
72 36.2% Lippo 43% BNI 40.3% BCA 46% Niaga Ratio of Provisions to NPL 50.5% BNI 47% Mandiri Loan to Deposit Ratio 50.9% Mandiri 77% BII 57.5% BII 77% Permata Loan growth, quality and provisioning relative to peers 62.1% Panin (%) (%) 76.5% Permata 88% Danamon 78.2% BRI 95% Panin Danamon 78.5% 146% B
Slide 75: Asset and liability mix relative to peers
73 10.8% Mandiri 4.8% Lippo 11.3% BNI 5.6% BCA Yield on Assets (p.a.) 12.1% Lippo 5.8% BNI Cost of Funds (p.a.) 12.6% Panin 6.5% BRI 13.0% BCA 7.6% Mandiri (%) (%) 13.0% BII 7.7% BII 14.0% Niaga 8.6% Niaga 14.4% Danamon 8.7% Danamon 14.8% Permata 9.0% Permata 17.5% BRI 9.2% Panin 39.6% Lippo 18.4% D
Slide 76: Efficiency measures relative to peers
74 5.8% BRI 42.9% Panin 4.4% Permata 44.4% Mandiri 4.3% BII 46.9% BCA 4.0% Lippo Cost/ Income 48.5% BRI Cost/Assets *Annualized 3.7% Danamon 52.5% Danamon (%)* (%) 3.6% BNI 54.7% Niaga 3.5% BCA 56.4% Lippo 3.3% Niaga 57.8% BNI 2.4% Panin 64.1% BII 2.1% Mandiri 69.6% Permata 77 Danamon 15 Permata 83
Slide 77: Measures of scale and returns relative to peers
75 197 Panin 9.3% Mandiri Return on Equity (After Tax) 298 Niaga 10.9% BNI 546 Permata 11.4% Danamon 674 BRI 12.6% Permata ATMs 691 Lippo 14.9% Panin (%) 717 BII 18.5% Niaga 804 Danamon 20.3% Lippo 2,272 BNI 21.4% BII 2,664 Mandiri Measures of scale and returns relative to peers 26.8% BCA 3,447 BCA
Slide 78: Consolidated Balance Sheets (Assets)
76 BALANCE SHEETS As of June 30, 2006 and 2005 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION June 30,2006 June 30,2005 June 30,2006 June 30,2005 ASSETS 1. Cash 2,932,671 2,264,891 3,031,655 2,348,426 2. Placements with Bank Indonesia a. Current accounts with Bank Indonesia 19,753,925 15,3
Slide 79: Balance Sheets (Liabilities and Shareholders' Equity)
77 BALANCE SHEETS As of June 30, 2006 and 2005 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION June 30,2006 June 30,2005 June 30,2006 June 30,2005 LIABILITIES AND SHAREHOLDERS' EQUITY 1 Demand deposits a. Rupiah 28,017,570 30,768,551 29,448,010 31,712,896 b. Foreign currencies 12,577,207 12
Slide 80: Statements of Profit and Loss
78 STATEMENTS OF PROFIT AND LOSS For the periods from January 1 to June 30, 2006 and 2005 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION June 30,2006 June 30,2005 June 30,2006 June 30,2005 INCOME AND EXPENSES FROM OPERATIONS 1. Interest Income 1.1. Interest income a. Rupiah 11,403,177 7,58
Slide 81: Statements of Commitments and Contingencies
STATEMENTS OF COMMITMENTS AND CONTINGENCIES As of June 30, 2006 and 2005 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION June 30,2006 June 30,2005 June 30,2006 June 30,2005 COMMITMENTS Commitment Receivables 1. Unused fund borrowings facilities a. Rupiah - - - - b. Foreign currencies - - -
Slide 82: Management of the Bank as of June 30, 2006
MANAGEMENT OF THE BANK AS OF JUNE 30, 2006 SHAREHOLDER Jakarta, July 27, 2006 Board of Commissioners - Chairman : Edwin Gerungan *) Republic of Indonesia : 68.93% S. E & O - Deputy Chairman : Muchayat (Ultimate Shareholders') Board of Directors - Commissioner : Soedarjono PT Bank Mandiri (Persero) T
Slide 83: Earning Assets and Other Information
EARNING ASSETS AND OTHER INFORMATION As of June 30, 2006 and 2005 (In Millions of Rupiah) BANK June 30, 2006 June 30, 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 Placement w
Slide 84: Foreign Exchange and Derivatives Transaction
FOREIGN EXCHANGE AND DERIVATIVES TRANSACTION As of June 30, 2006 (In Millions of Rupiah) BANK NO TRANSACTION Contract Market Value Derivative Receivable & Payable Contract Value Hedging Others Receivable Payable Netting Agreement A. Exchange Rate Related 1 Spot - 446 - - - 2 Forward - 897,527 5,793
Slide 85: Calculation of CAR
83 CALCULATION OF CAR As of June 30, 2006 and 2005 (In Millions of Rupiah) BANK NO DESCRIPTION June 30, 2006 June 30, 2005 I. COMPONENTS A. CORE CAPITAL 21,521,868 20,636,697 1. Paid-Up Capital 10,155,812 10,075,034 2. Disclosed Reserves a. Agio 6,023,710 5,973,270 b. Disagio (-/-) - - c. Shares Opt
Slide 86: Loan Purchased from IBRA
LOAN PURCHASED FROM IBRA January 01, 2006 - June 30, 2006 (In millions of Rupiah) NO DESCRIPTION Amount 1 Loan principal / outstanding balance as of June 30, 2006 4,214,979 2 Amount of loan purchased from January 1, 2006 - June 30, 2006 5,579,541 3 Total provision / deferred income 144,614 4 Allowan
Slide 87: Loan Purchased from IBRA
85 LOAN PURCHASED FROM IBRA January 1, 2006 to June 30, 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 NO DESCRIPTION Amount 1 Loan principal / outstanding balance as of June 3
Slide 88: Financial Ratios
FINANCIAL RATIOS As of June 30, 2006 and 2005 BANK NO KEYS RATIOS June 30, 2006 June 30, 2005 I. Capital 1. CAR by considering credit risk 25.13% 23.72% 2. CAR by considering credit risk and market risk 24.58% 23.23% 3. Premises and Equipment to Capital 26.97% 27.27% II. Earning Assets 1. Non-perfor
Slide 89: Notes
Notes _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ____________________________________________________________
Slide 90: Notes
Notes _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ____________________________________________________________
Slide 91: 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 92: For Additional Information
91 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
PT Bank Mandiri (Persero) — Q2 2006 Earnings Presentation on 6ix