PT Bank Danamon Indonesia Tbk Class A · IDX:BDMN
PT Bank Danamon Indonesia Tbk Class A — Bank Danamon Indonesia — FY2008 Earnings Presentation
41 slides from PT Bank Danamon Indonesia Tbk Class A's earnings presentation, Feb 12, 2009
Slide 1: Analyst Briefing Full Year 2008 Results
Analyst Briefing Full Year 2008 Results Jakarta, 12 February 2009 Untuk Anda, Bisa
Slide 2: Agenda
Agenda • 2008 Performance • Financial Results • Asset Quality • Business Update • 2009 Strategic Priorities • Latest Update • Appendix Slide 2 Untuk Anda, Bisa
Slide 3: Highlights of 2008 Full Year Results
Highlights of 2008 Full Year Results • Loans grew by 25% to Rp 67 trillion largely driven by mass market business • Third party deposits rose by 27% to Rp 75 trillion; total funding increased by 24% to Rp 88 trillion • Net Interest Income increased by 17% to Rp 8,354 billion • Reported NPAT amounted
Slide 4: Highlights of Income Statement
Highlights of Income Statement Rp. billion FY07 FY08 UYoY 1Q08 2Q08 3Q08 4Q08 Net Interest Income 7,136 8,354 17% 1,977 2,079 2,175 2,123 Fee Income 1,330 2,149 62% 453 593 573 530 Operating Income before Gain (Loss) 8,466 10,503 25% 2,430 2,672 2,748 2,653 on Sale of Marketable Securities Gain (Los
Slide 5: Highlights of Balance Sheet
Highlights of Balance Sheet Rp. billion FY07 FY08 UYoY 1Q08 2Q08 3Q08 4Q08 Total Assets 89,410 107,268 20% 92,178 96,582 103,462 107,268 Loans (gross) 1) 53,330 66,898 25% 55,917 61,207 66,523 66,898 Government Bonds 15,808 13,083 (17%) 15,010 13,129 12,754 13,083 Total Deposits 59,528 75,373 27% 61
Slide 6: Key Ratios
Key Ratios % FY07 FY08 UYoY 1Q08 2Q08 3Q08 4Q08 Net Interest Margin 1) 10.4 11.1 0.7 11.3 11.5 11.4 10.3 Cost / Income 47.9 54.1 6.2 50.2 52.2 55.3 58.5 Normalized Cost of Credit 2, 3) 2.3 1.6 (0.7) 2.0 1.9 1.6 1.2 Normalized ROAA 3) 2.4 2.4 (0.0) 2.5 2.5 2.4 2.1 Normalized ROAE 3) 22.9 22.3 (0.6) 2
Slide 7: Net Interest Margin expanded to 11.1% in 2008 sustained by high asset yield
Net Interest Margin expanded to 11.1% in 2008 sustained by high asset yield Net Interest Income Net Interest Margin Rp. billion %, annualized Earning Asset Yield Wholesale 18.0 16.1 16.1 16.8 SME & Commercial 16.0 Retail Mass Market Cost of Funds 8.7 6.9 6.1 6.0 6.0 8,354 10% 11.5 11.4 7,136 11.3 10
Slide 8: Non-interest income contributed to 19% of operating income in 2008
Non-interest income contributed to 19% of operating income in 2008 Fee Income Rp. billion Rp. billion 2007 2008 UYoY Wholesale SME & Commercial Fee Income 1,330 2,149 62% Retail Credit related fees 797 1,025 29% Mass market 2,149 Cash management 288 302 5% 22% Treasury products (49) 392 NM Adira Fin
Slide 9: Increase in operating expenses was largely attributable to mass market businesses expansion
Increase in operating expenses was largely attributable to mass market businesses expansion Manpower Costs Rp billion 2007 2008 UYoY Rp. billion UYoY Variable Costs 28% Wholesale 444 529 19% Fixed Costs 3,365 2,621 32% 30% Retail 1,503 1,812 21% 29% 70% 71% 27% SME & Commercial 547 647 18% 2007 2008
Slide 10: Normalized cost of credit declined to Rp 1,076 billion in 2008
Normalized cost of credit declined to Rp 1,076 billion in 2008, representing 1.6% of average earning assets Cost of Credit 11) Cost of Credit / Avg. Earning Assets 22) Rp. billion %, Annualized Non-recurring 6.0% 3) Wholesale 6.0% Cost of credit 2007: 2.3% SME & Commercial Normalized Cost of credit
Slide 11: Loans expanded by 25% driven mainly by mass market businesses
Loans expanded by 25% driven mainly by mass market businesses Outstanding Loans Composition Loan Growth Rp. billion Year-on-Year UYoY Rp. billion Dec-07 Dec-08 66,523 66,898 Rp.bn % 61,207 55,917 19% 17% 53,330 17% Wholesale 9,000 11,518 2,518 28% 18% 17% 28% SME & 28% 16,237 18,678 2,441 15% 31
Slide 12: SME & Commercial loans growth partly driven by asset based financing
SME & Commercial loans growth partly driven by asset based financing SME & Commercial Loans Composition Breakdown of SME & Commercial Loans Rp. billion As of December 31 SME Others Change 2008: 6% Commercial UYoY 2007: 4% Assets Based 18,639 18,792 18,678 15% Investment Financing Loan 2008: 17% 16,2
Slide 13: Retail loans rose by 20% on strong mortgage and credit card growth
Retail loans rose by 20% on the back of strong growth in mortgage and credit card receivables Retail Loans Composition Loan Growth Rp. billion Year-on-Year UYoY Rp. billion Dec-07 Dec-08 Rp.bn % Multipurpose 5,710 1,192 1,259 68 6% 5,361 5,659 & others 1) 4,870 4,710 23% 23% Personal loan 295 24
Slide 14: Mass market loans grew by 33% driven by motorcycle financing and micro lending
Mass market loans grew by 33% driven by motorcycle financing and micro lending Mass Market Loan Composition Loan Growth Rp. billion Year-on-Year UYoY Rp. billion Dec-07 Dec-08 Rp.bn % 31,043 29,531 2% 26,512 2% Hire Purchase 1) 402 767 365 91% 23,383 24,528 14% 2% 13% 1% 2% 13% Cars 2) 3,164 4,2
Slide 15: Government bonds represented 12% of the bank's assets at end of 2008
Government bonds have steadily reduced and only represented 12% of the bank’s assets at the end of 2008 Government Bonds Composition UYoY Rp. billion Duration Rp. billion Dec-07 Dec-08 Rp.bn % (years) Variable Rate Fixed Rate Held to 4,225 2,478 (1,747) (41%) 5.0 maturity Bonds / Assets 18% T 16% 14
Slide 16: Total deposit rose by 27% to Rp 75.4 trillion
Total deposit rose by 27% to Rp 75.4 trillion, representing 86% of the bank’s funding Breakdown of Interest Bearing Funds Long-Term Funding Rp. billion As of December 31 Current Account Savings Change Sub-Debt Time Deposits Long Term Funding UYoY 2008: 26% Others 2008: 18% 27% 2007: 25% 2007: 21% 83
Slide 17: Consolidated Capital Adequacy Ratio stood at 15.4% at the end of 2008
Consolidated Capital Adequacy Ratio stood at 15.4% at the end of 2008 Movement of Capital Adequacy Ratio Rp. billion Dec-07 Dec-08 UYoY % 20.3 Tier 1 Capital 9,769 10,438 7% Tier 2 Capital 4,116 1,405 (66%) Investments (300) (389) 30% (2.7) Total Capital after Investment 13,585 11,454 (16%) 15.4 Ris
Slide 18: Agenda
Agenda • 2008 Performance • Financial Results • Asset Quality • Business Update • 2009 Strategic Priorities • Latest Update • Appendix Slide 18 Untuk Anda, Bisa
Slide 19: Loan portfolio is well diversified across economic sectors
Loan portfolio is well diversified across economic sectors Loans by Economic Sector Loans by Type As of December 31 As of December 31 Manufacturing Trading, Restaurant 2008: 14% 2007: 16% Working Capital & Hotel 2008: 46% 2008: 27% Business Services 2007: 45% 2007: 28% 2008: 13% Investment 2007: 9%
Slide 20: Over 87% of the loan portfolio is denominated in local currency
Over 87% of the loan portfolio is denominated in local currency Loans by Currency Loans by Interest Rate As of December 31 As of December 31 Local Currency Variable Rate 2008: 87% 2008: 53% 2007: 87% 2007: 49% Foreign Currency 2008: 13% 2007: 13% Fixed Rate 2008: 47% 2007: 51% Total Loans Total Loan
Slide 21: Non-performing loans ratio remain stable at 2.3% at the end of 2008
Non-performing loans ratio remain stable at 2.3% at the end of 2008 Loan’s Collectibility % of Outstanding Loans 2.3% 2.2% 2.3% 2.3% 2.1% 8.3% 8.2% 7.7% 7.0% 7.2% Non-Performing Special Mention 89.4% 90.7% 90.7% 89.5% 90.0% Current Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Non-Performing Loans Breakdown 1,
Slide 22: Special mention loans are mostly in DPD 1-30 days category
Special mention loans are mostly in DPD 1-30 days category Special Mention Loans Aging of Special Mention Loans Rp. billion % of Special Mention Loans Mass market Retail 0 Day 1 - 30 Days 31 - 60 Days 61 - 90 Days SME & Commercial Wholesale 5,398 4,658 8% 4,173 4,210 7% 4,190 5% 8% 8% 9% 7% 5% 8% 3%
Slide 23: 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 % Mass market Retail General Specific SME & Commercial Wholesale 161 162 156 152 137 1,534 1,258 1,333 1,333 8% 1,162 90 91 89 85 53 10% 12% 8% 41% 10% 39% 42% 38% 45%
Slide 24: Agenda
Agenda • 2008 Performance • Financial Results • Asset Quality • Business Update • 2009 Strategic Priorities • Latest Update • Appendix Slide 24 Untuk Anda, Bisa
Slide 25: Self Employed Mass Market Business
Self Employed Mass Market Business Outstanding Loans SEMM, also known as DSP (Danamon Simpan Rp. billion Pinjam), was established in 2004 to serve micro 10,278 10,965 and small scale enterprises to gain better access to 9,548 8,600 9,099 banking services. Business Performance • DSP currently operate
Slide 26: Self Employed Mass Market Business
Self Employed Mass Market Business Cost of credit Asset quality % of Average Loans, annualized • Cost of credit declined to 3.2% in 2008 as compared to 4.2% in the previous year. Cost of credit 2007: 4.2% 5.7% Cost of credit 2008: 3.2% • In the fourth quarter of 2008, cost of credit was a 4.3% minus
Slide 27: Consumer Mass Market Business
Consumer Mass Market Business Outstanding Loans Consumer Mass Market Business (CMM) offers Rp. billion personal loans to salaried individuals. 2,304 2,049 CMM currently operates two business models: 1,574 X Worksite Model 1,185 996 CMM continue expanding its network (Points of Sales) to sell persona
Slide 28: Adira Finance (auto financing business)
Adira Finance (auto financing business) New Financing Lending growth Rp. billion • New financing volume increased by 30% to Rp Car 4,285 14.0 trillion in 2008. Motorcycles 3,510 3,334 • Receivables grew by 27% to Rp 16.9 trillion in 2,898 2,877 December 2008. • Market share in new motorcycle stood a
Slide 29: Adira Finance (auto financing business)
Adira Finance (auto financing business) Rp. billion 2007 2008 UYoY 1Q08 2Q08 3Q08 4Q08 New Financing Units 942,968 1,143,861 21% 247,023 294,631 351,021 251,186 New Financing Volume 10,758 14,007 30% 2,877 3,510 4,285 3,334 O/S Receivables 13,273 16,862 27% 13,712 14,699 16,345 16,862 Net Interest I
Slide 30: Adira Finance (auto financing business)
Adira Finance (auto financing business) Cost of credit NPL and Repossessed Assets % of Average Receivables % of Receivables 1.5% Cost of credit 2007: 4.6% Non performing loans 4.3% Cost of credit 2008: 3.0% T 1.0% 3.1% 3.1% 3.1% 2.9% 0.5% S Repossessed assets 0.0% 4Q07 1Q08 2Q08 3Q08 4Q08 Dec-07 Mar
Slide 31: Agenda
Agenda • 2008 Performance • Financial Results • Asset Quality • Business Update • 2009 Strategic Priorities • Latest Update • Appendix Slide 31 Untuk Anda, Bisa
Slide 32: Strategic Priorities during the global financial crisis
Strategic Priorities during the global financial crisis • Maintain a strong liquidity position Liquidity − Loan to Deposits (LDR) below 85% management − Loan to Total Funding below 75% • Maintain excess liquidity in liquid asset classes • Focus on improving our productivity as we have grown our manp
Slide 33: Agenda
Agenda • 2008 Performance • Financial Results • Asset Quality • Business Update • 2009 Strategic Priorities • Latest Update • Appendix Slide 33 Untuk Anda, Bisa
Slide 34: Sub-debt and Call Option of Adira Finance
Sub-debt and Call Option of Adira Finance We are calling our USD 300 million subordinated debt due in March 2009 with the following considerations: USD 300 million • The value of the sub-debt as Tier 2 Capital reduces rapidly since it must be amortized sub-debt over 5 years period, thus becoming a v
Slide 35: We entered into foreign currency forward contracts (TARN) with customers
We entered into foreign currency forward contracts (TARN) with our customers and offsetting contracts with counterparty banks • The bank entered into some foreign currency forward contracts with customers, which involve a series of foreign currency exchange contracts on agreed pre-determined deliver
Slide 36: Significantly reduced TARN exposure
Significantly reduced TARN exposure Gross notional amount Net notional amount Fair value of derivative As of September 30, 2008 (USD million) to customers receivables to customers Instruments Customers Counterparty bank (USD million) (USD million) Foreign currency forward (TARN) 2 - 2 0 Foreign curr
Slide 37: Rp 804 billion total cost set aside in 2008 for TARN
We have set aside a total cost of Rp 804 billion in 2008 for TARN, including provisions for outstanding contracts As of September 30, 2008 A sudden depreciation of IDR Number of customers 55 coupled with the collapse of Net Notional Amount USD 1,441 mn commodity prices caused some customers unable t
Slide 38: Agenda
Agenda • 2008 Performance • Financial Results • Asset Quality • Business Update • 2009 Strategic Priorities • Latest Update • Appendix Slide 38 Untuk Anda, Bisa
Slide 39: Shareholding Structure
Shareholding Structure Daily share price and trading volume Shareholding Structure BDMN IJ As of December 31, 2008 Daily trading volume in Rp billion Share price in Rupiah 160 9,000 Asia Financial (Indonesia) 67.87% 140 8,000 120 7,000 Share Price f 100 6,000 80 5,000 Public 60 4,000 32.13% Asia Fin
Slide 40: Credit Ratings
Credit Ratings Danamon PEFINDO Corporate Rating idAA+ / Stable February 2008 Bond Rating idAA+ / Stable Standard & Poor’s Long-term / Short-term Local Currency BB- / Stable / B December 2008 Long-term / Short-term Foreign Currency BB- / Stable / B Subordinated Debt B / Stable Fitch Ratings Long-term
Slide 41: Thank You
Thank You Investor Relations Bank Danamon Indonesia 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 Untuk Anda, Bisa
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