Pt Bank Pembangunan Daerah Jawa Timur Tbk Class B · IDX:BJTM
Pt Bank Pembangunan Daerah Jawa Timur Tbk Class B — Non-Deal Roadshow (January 2013)
58 slides from Pt Bank Pembangunan Daerah Jawa Timur Tbk Class B's roadshow presentation, Jan 24, 2013
Slide 1: Non Deal Roadshow
PRIVATE & CONFIDENTIAL Non Deal Roadshow PT Bank Pembangunan Daerah Jawa Timur Tbk ( Bank Jatim) 21-24 January 2013. Our Partner: 1
Slide 2: Agenda (detailed contents)
Page Page Agenda 3 Overview & Investement Highlights 4-24 - 51 years Experience 5 Prospects of Banking Industry 37-44 - Ownership Structure After IPO 6 - The Economic Potential of East Java Towards 38-39 - Investment Highlights 7 Bank Jatim - Funding Product 8 - Third Party Funds 9 - Economic Sector
Slide 3: Agenda
AGENDA 1 Overview & Investment Highlights 2 Strengths 3 Prospects of Banking Industry 4 Financial Highlights 3
Slide 4: Overview & Investment Highlights
SECTION 1 OVERVIEW & INVESTMENT HIGHLIGHTS 4
Slide 5: 51 Years of Experience
51 YEARS OF EXPERIENCE Since its inception at 1961, Bank Jatim has been successfully stimulating and driving improvement on the local area, managing local government money, and subsequently becoming one source of local revenue. Initial Public Offering PT Bank Bank Jatim Tbk on 12 July 2012 with 20%
Slide 6: Ownership Structure After IPO
OWNERSHIP STRUCTURE AFTER IPO Series A shares East Java Province City Government / County Municipal Public Government Government of East Java 51.46 % 28.54% 20.00% The following is the current Bank Jatim ownership and shareholders structure : Nominal value Rp250 per share Total Nominal Value Remark
Slide 7: Investment Highlight
INVESTMENT HIGHLIGHT Good financial performance, primarily in profitability and efficiency Well-balanced development Good reputation and having strategy between growth, loyal customers security, and profitability Condusive business prospects, Development of captive market particularly supported by E
Slide 8: Funding Product
FUNDING PRODUCT Bank Jatim provides various products and comprehensive services with high quality to cater all of the customers needs. CONVENTIONAL FUND COLLECTION FOREIGN EXCHANGESERVICES OTHER SERVICES ► Demand Deposit ► Saving & Time Deposit ► Bank Reference / Bank Guarantee ► Time Deposit ► Bank
Slide 9: Third Party Fund
THIRD PARTY FUND (In Million Rp.) Description Dec 2011 Dec 2012 YoY Government Current Account 3.844.580 4.241.099 10,31% CASA RATIO : General Current Account 4.332.133 5.406.899 24,81% 80,3 % Total Current Account 8.176.713 9.647.998 17,99% Simpeda Saving 6.461.071 7.298.630 12,96% Siklus Saving 19
Slide 10: Third Party Fund Customer
THIRD PARTY FUND CUSTOMER Third Party Dec Dec Aug Sept Oct Nov Dec 2009 Dec 2012 YTD Fund 2010 2011 2012 2012 2012 2012 Governement Current 161 147 67 113 112 113 120 117 74,63% Account Private Current 38.342 40.645 33.102 42.013 42.347 42.542 42.946 43.022 29,97% Account Simpeda 960.767 1.102.834 1
Slide 11: Product Plan & New Activities 2013
PRODUCT PLAN & NEW ACTIVITIES 2013 Bank Jatim provides various products and comprehensive services with high quality to cater all of the customers needs. PRODUCTS SMS BANKING – Provider INTERNET BANKING Increase ► Transaction of buying Mobile ► Banking transaction via Phone prepaid & payment of web/
Slide 12: Type of Loan
TYPE OF LOAN Bank Jatim provides various products and comprehensive services with high quality to cater all of the customers needs. LOAN CONSUMER LOAN COMMERCIAL LOAN ► Multipurpose Loan ► Keppres Loan ► Mortgage Loan ► Standby Loan ► Others ► Syndicate Loan ► R/C Loan ► Others MICRO AND SMALL LOAN
Slide 13: Loan Composition
LOAN COMPOSITION (in million) Dec % of Total Loan Dec 2011 YoY 2012 Consumer Loan 9.565.344 11.090.565 63,33% 15,94% Multipurpose 8.869.102 10.017.607 57,20% 12,95% Mortgage 291.416 604.523 3,45% 107,44% Others 404.826 468.435 2,67% 15,71% Commercial Loan 2.905.625 3.209.830 18,33% 10,47% Standby Lo
Slide 14: Sharia
SHARIA Bank Jatim provides various products and comprehensive services with high quality to cater all of the customers needs. SYARIAH FUND PRODUCTS SERVICES PRODUCTS ► Amanah Current Account ► National Clearing System, Western ► Amanah Haji Saving Union ► Barokah Saving ► RTGS ► TabunganKu iB ► Bank
Slide 15: Loan and Third Party Fund Portfolio
LOAN AND THIRD PARTY FUND PORTFOLIO Bank Jatim has a high-yielding loan portfolio supported by low cost of deposits. Loan Value (Rp trillion) Multipurpose loan and demand deposit significantly contribute to our Credit classification business. Credit Amount classification Small < Rp500 million Medium
Slide 16: Exclusive of Multipurpose Loan
EXCLUSIVE OF MULTIPURPOSE LOAN Bank Jatim, as the payment bank of the East Java Province, has the sole and exclusive access to extend Multiguna, the consumer loan product, to civil servants in East Java. Provincial / City / Multiguna is a very high yielding loan Municipal Government product with ver
Slide 17: Top Ten Loans by Industry Concentration
TOP TEN LOANS BY INDUSTRY CONCENTRATION (In Million Rp.) Social Household Trade Construction Agriculture Electricity Processing Real Estate Education Finance Others Service Dec 2010 3,559,406 3,789,827 1,206,496 741,425 530,583 207,080 487,227 346,044 306,480 67,591 1,149,533 Sep-11 6,594,773 3,009,
Slide 18: Branches and ATM
BRANCHES AND ATM To anticipate increased competition amongst banks and improve service quality to its customers, Bank Jatim continues to develop and expand its network of services. Branches Network*) ATM Network *) Branches Network includes all syariah, supporting conventional and supporting syariah
Slide 19: Human Resources
HUMAN RESOURCES With the support of professional human resources, Bank Jatim is committed to provide excellent service to its customers. Vision, Mission, and HR Development and Quality Improvement HR Management Corporate Culture Policy HR Development Competencies based education and training program
Slide 20: Information Technology
INFORMATION TECHNOLOGY Transformation of Information Technology (IT) system to anticipate business development and intensifying competition. IT Development Strategy Bank Jatim IT Transformation Bank Jatim approaches its IT development strategy based on the customers needs by implementing some steps,
Slide 21: Company Transformation
COMPANY TRANSFORMATION As the East Java industrial climate improves, the competition in the banking industry intensifies since many competitors oversee the potential to do market penetration in the banking industry. SHORT TERM + MEDIUM TERM BPD REGIONAL CHAMPION (BRC) 2013 Company Focus 2015 Company
Slide 22: Short- and Medium-Term Plan Strategy
SHORT-AND MEDIUM-TERM PLAN STRATEGY Setting up Improve the Improve the information government excellent Make an effort technology relations with service to increase systems that institutions/agencie program to capital support product s and other the society development and institutions services acti
Slide 23: Projection 2013
PROJECTION 2013 BALANCE SHEET GROWTH Target BUSINESS PLAN DeC’13 2013 Head Office 1 0 THIRD PARTY FUND 23% Branch Office 43 2 Sub Branch Office 119 30 LOAN 20% Cash Office 187 10 TOTAL ASSET 12,70% Payment Point 181 37 Mobile Cash / 66 0 Counter RATIO PERCENTAGE Mobile Cash + ATM 8 0 ATM 477 100 ROA
Slide 24: Awards and Achievement
AWARDS AND ACHIEVEMNET Annual Report Award 2010 Committee – State-owned Company with Persatuan Wartawan Indonesia East Java Branch Bapepam, Ditjen Pajak, Bursa Efek Indonesia, Ikatan Akuntansi Trophy and Charter Award from Persatuan Wartawan Indonesiaof Indonesia and Corporate Governance National Co
Slide 25: Strengths
bankjatim, # rsama kami, berkembang pasti SECTION 2 STRENGTHS 25
Slide 26: Overview of Company's Strengths
Overview of Company’s Strengths Competitive Funding JETS Composition Parent company of Community Credit Bank Wide Network of (Bank Perkreditan Rakyat) Service Points Loyal Consumer- Experienced sector Clients Management Potential SME Growth 26
Slide 27: Competitive Funding Composition
1 Competitive Funding Composition Bank Jatim has mantained low cost funding composition above 70% for the past 5 years. Funding Composition 27
Slide 28: Competitive Funding Composition
1 Competitive Funding Composition Bank Jatim has mantained low cost funding composition above 70% for the past 5 years. In 2012, CASA ratio above 80% Current account (in Rp trillion) Total saving deposit (in Rp trillion) Total time deposit (in Rp trillion) 28
Slide 29: Wide Network of Service Points
2 Wide Network of Service Points Branch network and electronic channels are among Bank Jatim’s competitive advantages. Network 2009 2010 2011 2012 Head Office 1 1 1 1 Conventional branch 38 40 40 40 Sharia branch 1 1 1 1 Conventional sub branch 26 41 64 86 Sharia sub branch - 3 3 3 Cash office 151 1
Slide 30: Experienced Management
3 Experienced Management Bank Jatim is led by an experienced management team with deep knowledge on Indonesia’s banking sector. HADI SUKRIANTO, President Director 55 years old, obtained his Master’Degree from Universitas 17 Agustus 1945 Surabaya in 2003. Has joined Bank Jatim since 1983. He has
Slide 31: Experienced Management
3 Experienced Management Bank Jatim is led by an experienced management team with deep knowledge on Indonesia’s banking sector. MULJANTO, President Commissioner ISNANTO, Independent Commissioner 59 years old, obtained his Master Degree from UPN Veteran 51 years old, obtained his Master Degree Su
Slide 32: Potential for Small & Medium Enterprise Growth
4 Potential for Small & Medium Enterprise Growth In line with Bank Jatim’s mission to stimulate local economic growth and develop small and medium business, the focus of its business is to finance Micro Small Medium Enterprise (MSME) and Cooperative. MSME loan scheme reflects a variety of businesses
Slide 33: Loyal Consumer-sector Clients
6 Loyal Consumer-sector Clients Bank Jatim is one of the biggest creditors on East Java’s consumer sector with a market share of 14.73% - Out of 471,814 civil servants in East Java, around 51,62 % has been served by Bank Jatim. - East Java civil servants are increasing at 14% p.a in 2011 and 8% in 2
Slide 34: Apex Bank
7 APEX BANK - Obtains cheap funding from Apex members. - Increases the intermediary function of Bank Apex Banking Jatim, therefore increasing Bank Jatim’s funding portion towards MSMEs in East Java. - Better management over credit concentration risk. Of all the 332 BPRs located in East Java, Bank Ja
Slide 35: Jatim Electronic Transfer System (JETS)
8 JATIM ELECTRONIC TRANSFER SYSTEM (JETS) Definition Type Of Service JETS 1. Delivery Transfers Out between BPR Jets is a system service that is used in the and BPR JETS members in real time; implementation of the transfer of funds between member apex RB, participants jets 2. Transfers out BPR and B
Slide 36: Jatim Electronic Transfer System (JETS)
8 JATIM ELECTRONIC TRANSFER SYSTEM (JETS) For Bank Jatim as Organizer 1. Create products and services with innovative between Bank Jatim and member of APEX BPR 2. Improve service to members for transactions between APEX BPR members and public Bank member SKN BI directly. 3. Improve corporate image a
Slide 37: Prospects of Banking Industry
SECTION 3 PROSPECTS OF BANKING INDUSTRY 37
Slide 38: The Economic Potential of East Java Towards Bank Jatim
The Economic Potential of East Java Towards Bank Jatim Area : 47.154 km2 Largest at Java Island Topography of area consist of fertile lowland, mountains and coastal. Administration area: 38 Regencies/ Cities the most in Indonesia Social-culture :heterogen which divided into Mataraman, Ma
Slide 39: The Economic Potential of East Java Towards Bank Jatim
The Economic Potential of East Java Towards Bank Jatim We have strong macroeconomic backdrop in East Java that provides us economic opportunity to grow our bank in size and quality. 10.0% 9.3% Second-largest contributor towards Indonesian 9.0% economy. Approximately 15% of the national 6.4% 8.0% 5
Slide 40: Economic Sector & Manpower
ECONOMIC SECTOR & MANPOWER 3 Dominant Sector: Growth 1. Trade, Hotel & Restaurant : 30,04 % 10,12 % 2. Processing Industry : 26,66 % 6,49 % 3. Agriculture : 17,16 % 2,61 % 73,86 % Others Social Services 12,61% 39,70% 12,98% Agriculture 20,64% Trade 14,07% Processing Industry Source : BRS Augus
Slide 41: Regional Banking Comparison
REGIONAL BANKING COMPARISON In the competitive sector of Regional Banking, Bank Jatim is optimistic it could handle competition from other banks. #3 18,2 25,4 22,5 15,1 20,1 14,7 18,9 16,1 16,1 15,3 11 14,5 13,3 10,5 13,7 #3 11,9 12,1 8,68,1 9,2 12,9 9,7 10 7,6 10 8,1 6,4 7,4 6,5 6,3 2,0 2,0 2,7 2,7
Slide 42: Banking Industry Performance
BANKING INDUSTRY PERFOMANCE 42
Slide 43: Comparison with Regional Banks in Indonesia (30 Sept 2012)
COMPARISON WITH REGIONAL BANKS IN INDONESIA( 30 Sept 2012) 43
Slide 44: Banking Industry Comparison
BANKING INDUSTRY COMPARISON Bank Share px Market Cap PBV PER Dividen Yield (16/01/2013) Rp bn Bank Jatim 380 5.670 1,02 7,68 10,46% Bank Jabar 1.170 11.340 1,96 10,11 5,27% Bank Mandiri 8.600 200.670 2,86 14,14 1,22% BTN 1.490 15.430 1,69 9,51 1,63% BTPN 5.350 31.250 4,34 16,16 0,0% Bukopin 650 5.18
Slide 45: Financial Highlights
SECTION 4 FINANCIAL HIGHLIGHTS 45
Slide 46: Tremendous Improvement Gross Profit
TREMENDOUS IMPROVEMENT GROSS PROFIT (In Million Rp.) Gross Profit January 2012 104.526 Average / day 3.371 Gross profit January 17th 2013 91.233 Average / day 5.367 PROMISING YEAR 2013 This tremendous improvement in gross profit contribute by Multipurpose Loan from Civil Servant, Non Civil servant a
Slide 47: Balance Sheet
BALANCE SHEET (In Million Rp.) Information Dec11 Dec 12 YoY Total Asset 24.846.516 29.321.828 18,01% Loan 15.921.114 18.556.329 16,55% Impairment Losses (100.730) (255.666) 153,81% Third Party Fund 19.934.943 22.209.575 11,41% - Current Account 8.176.726 9.661.768 18,16% - Saving Account 7.081.487 8
Slide 48: Profit & Loss
PROFIT & LOSS (In Million Rp.) Information Dec11 Dec12 YoY Interest Income 2,698,674 2.813.796 4,26% Interest Expense (774,831) (852.262) 9,99% Nett Interest Income 1,923,844 1.961.534 1,96% Non Interest Operational Income 254,112 355.703 39,98% Non Interest Operational Expense (997,294) (1.039.375)
Slide 49: Trends on Income, Operating Income, and Net Income
Trends on Income, Operating Income, and Net Income Bank Jatim’s income has increased steadily over the years, indicating a strong financial performance. INTEREST INCOME (Rp trillion) INTEREST EXPENSE (Rp trillion) CAGR = 8,87% CAGR = 2,71% INCOME FROM OPERATIONS (Rp NET INCOME (Rp trillion) trillion
Slide 50: Statements of Financial Position – Liabilities & Equity
Statements of Financial Position – Liabilities & Equity Third-party funds and equity has increased over the years, indicating an increase in customer confidence and a solid capital position. THIRD PARTY FUNDS (Rp trillion) TOTAL EQUITY (Rp trillion) CAGR = 14,0% CAGR = 27,5% 50
Slide 51: Statements of Financial Position - Assets
Statements of Financial Position - Assets Bank Jatim’s assets has increased over the years, growing 24% yoy as of 31 December 2011. TOTAL ASSETS (Rp trillion) PRODUCTIVE ASSETS (Rp trillion) CAGR = 15,7% CAGR = 17,8% 51
Slide 52: Highlights of Financial Ratios
Highlights of Financial Ratios Bank Jatim has attained financial ratios well above the benchmark of the banking industry. LDR ROA Industry benchmark : 78% < LDR < 94% Industry benchmark : ROA >1,25% GROSS NPL Operating Cost to Operating Income Ratio (BOPO) Industry benchmark : NPL Gross < 5% Industr
Slide 53: NPL to Loan Scheme
NPL to Loan Scheme 16,00% 14,00% 12,00% 10,00% 8,00% 6,00% 4,00% 2,00% 0,00% Sep- Sep- Okt- Nop- Des- 2009 2010 2011 11 12 12 12 12 Multiguna 0,14% 0,05% 0,08% 0,06% 0,17% 0,17% 0,19% 0,17% KUR 0,00% 0,03% 3,19% 4,10% 9,11% 9,01% 9,94% 10,93% Standby Loan 3,52% 1,47% 1,72% 0,78% 0,14% 0,40% 0,27% 0,
Slide 54: Strategy Reducing NPL & Recovery 2012
STRATEGY REDUCING NPL & RECOVERY 2012 No Information Realization Realization Realization Realization Estimastion Total Recovery 2012 Jan s/d August September October s/d Nop 2012 December 1 Claim of loan insurance 46,836,065,101 4,386,369,192 19,623,388,423 9,799,780,710 10,000,000,000 87,189,822,71
Slide 55: Strategy Reducing NPL & Recovery Impairment Losses 2012
STRATEGY REDUCING NPL & RECOVERY IMPAIRMENT LOSSES 2012 Action Plan Member PIC Branch PIC Head Office Monthly Meeting Branch Manager & Branch Manager -Middle & Corporate Division Loan Supervisor -Special Mention Loan Sub Division Task Force •Special Mention Loan Sub Division Branch Manager -Middle &
Slide 56: Multiguna Trend
Multiguna Trend East Java Civil Servant Payrolls Under Management 56
Slide 57: Customer Deposit Analysis
Customer Deposit Analysis 2007 2008 2009 2010 2011 2012 2013F 2014F CASA Ratio 76.3% 71.3% 76.3% 79.0% 76.1% 80.3% 72.7% 75.6% Total Customer Deposit (Rp 2007 2008 2009 2010 2011 2012 2013F 2014F bn) Demand Deposit 6,868 6,358 6,973 6,996 8,204 9,662 11,404 12,228 Saving Deposit 3,176 3,440 4,121 5,
Slide 58: Corporate Email and Contact
Corporate Email: Our Website: Contact person email Adress: corsec@bankjatim.co.id www.bankjatim.co.id revi.adiana@bankjatim.co.id iru@bankjatim.co.id ferdian.satyagraha@bankjatim.co.id 58
PT Bank Pembangunan Daerah Jawa Timur Tbk (Bank Jatim) — Non-Deal Roadshow (January 2013) on 6ix