Pt Bank Mandiri (persero) Tbk · IDX:BMRI
Pt Bank Mandiri (persero) Tbk — Shareholder Meeting (December 2006)
11 slides from Pt Bank Mandiri (persero) Tbk's shareholder meeting presentation, Dec 22, 2006
Slide 1: Extraordinary General Meeting of the Shareholders
Extraordinary General Meeting of the Shareholders PT BANK MANDIRI (PERSERO) Tbk. 22 December 2006
Slide 2: Background and Context
Background and Context 1. High level of NPL is the main challenge faced by the bank. Reducing the current NPL level is required for Bank Mandiri to regain the status of well-performing bank. This, therefore, requires the support of everybody in the management Background for team. Dec 22, 2006 2. Pre
Slide 3: At present, NPL in Bank Mandiri is still significant
At present, NPL in Bank Mandiri is still significant NPL Bank Mandiri 3Q06 Challenges in 2007 (Rp Tn) Reducing the NPL to below 8.5 25.4 51.7 10% (gross) or 5% (net), through: 16.8 • Expansion • Restructuring • Settlement 3.8 26.3 • Collection 1.9 20.5 • Program NPL Disposal Reducing the level of th
Slide 4: Challenges to reduce the NPL in 2007 and experience for the past 2 years
Challenges to reduce the NPL in 2007 and experience for the past 2 years Needs Realities (Drastic Reduction) (Conventional techniques not effective) NPL (%) Upgrade Track Record (Rp Bn) Rp Rp 26.3Tn 26.3Tn 26.0 16.0 Need breakthrough techniques and 3,349 4,124 approaches to achieve the target NPL 10
Slide 5: The Issuance of PP No. 33/2006 and PMK No. 87/2006 to assist State-Owned Banks
The Issuance of PP No. 33/ 2006 and PMK N0. 87/ 2006 to assist State-Owned Banks to resolve its NPL problems Revision of PP No. 14/ 2005 regarding There is still a need to have a common Procedures for Dealing with the State understanding among the relevant Assets. stakeholders on what State-Owned ba
Slide 6: PP No. 33/2006 and PMK No. 87/2006 will enrich the options for NPL resolution
PP No. 33/ 2006 and PMK N0. 87/ 2006 will enrich the options for NPL resolution in Bank Mandiri NPL NPLOn-book On-book(Col (Col5) 5) NPL NPLOff-book Off-book •28,335 accounts •28,335 accounts •54,152 •54,152accounts accounts •Rp •Rp20.49Tn 20.49Tn •Rp •Rp25.37 25.37Tn Tn Options for resolving the NP
Slide 7: Guiding Principles PPKM Mandiri 2007
Guiding Principles PPKM Mandiri 2007 10 Guiding Principles 1. Priority given to NPLs that have been 8. The winner of the auction process is investor written off that provides the best economic price. 2. Focus will be on debtors that do not have 9. SME debtors that satisfy certain criteria will legal
Slide 8: Criteria for selecting account to be included in PPKM Mandiri
Criteria for selecting account to be included in PPKM Mandiri Accounts Accounts already already under under collectibility • To avoid potential moral hazard 11 collectibility 5, 5, or or those those that that have have been been written-off written-off asas of of 31 31 December 2005 December 2005 Ac
Slide 9: Historical Review of account done by independent auditor prior to disposal
There will be a Historical Review of account done by independent auditor prior to disposal Collateral Sales 3. NPL Resolution Litigation 2. 2. NPL NPL 1. 1. Desktop Desktop Analysis Analysis • Restructuring Settlement Selection Selection • Non-Restructuring PPKM Mandiri 2007 I. NPL Historical II. NP
Slide 10: NPL Disposal Process in PPKM Mandiri 2007
NPL Disposal Process in PPKM Mandiri 2007 Collateral Sales 3. NPL Resolution 2. 2. NPL NPL Litigation 1. 1. Desktop Desktop Analysis Analysis • Restructuring Settlement Selection Selection • Non-Restructuring PPKM Mandiri 2007 I. NPL Historical II. NPL Disposal Review Process 7. Booking of 5. Sales
Slide 11: High Level Work Plan for PPKM Mandiri 2007
High Level Work Plan for PPKM Mandiri 2007 INDICATIVE 2007 No Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Accounts Large & 1 Independent NPL Medium Historical Review for SME and Consumer selected accounts (via sampling) TRANCHE 1 : Large 2 Tranche 1 Loans 3 Tranche 2 TRANCHE 2 : Large
PT Bank Mandiri (Persero) — Shareholder Meeting (December 2006) on 6ix