PT Bank Mandiri (Persero) Tbk · IDX:BMRI
PT Bank Mandiri (Persero) Tbk — Q2 2005 Earnings Presentation
96 slides from PT Bank Mandiri (Persero) Tbk's earnings presentation, Dec 14, 2005
Slide 1: Q2 2005 Results Presentation
PT Bank Mandiri (Persero) Tbk Q2 2005 Results Presentation 0
Slide 2: Shareholding Information
Shareholding Information Shareholders as of 30 June 2005 2,200 Description Investors Shares % 2,000 BMRI DOMESTIC JCI 1,800 1. Government 1 14,000,000,000 69.48% 1,600 2. Retail 9,985 49,063,000 2.48% 1,400 3. Employees 17,252 208,683.707 1.04% 1,200 4. Pension Funds 106 74.056,000 0.37% 1,000 5. As
Slide 3: Bank Mandiri Presentation Contents
Bank Mandiri Presentation Contents Results Results Overview Overview Page Page ## Financial Financial Summary Summary Page Page ## H1 H1 2005 2005 Summary Summary Financials Financials 33 -- 44 Summary Summary Balance Balance Sheets Sheets 43 43 -44 -44 Quarterly Quarterly Asset Asset Mi
Slide 4: Bank Mandiri Operating Highlights
Bank Mandiri Operating Highlights Q2 2005 2
Slide 5: Key Balance Sheet Items & Financial Ratios
Key Balance Sheet Items & Financial Ratios IDR billion / % H1 2004 FY 2004 H1 2005 YoY Change (%) Gross Loans 82,250 94,403 104,032 26.5 Government Bonds 102,277 93,081 92,536 (9.5) Total Assets 234,686 248,156 256,784 9.4 Customer Deposits 171,617 175,838 183,184 6.7 Total Equity 22,759 24,935 22,7
Slide 6: Summary P&L Information – H1 2005 vs. H1 2004
Summary P&L Information – H1 2005 vs. H1 2004 H1 2004 H1 2005 YoY Change % of % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets (%) Interest Income 9,950 8.2 9,457 7.6 (5.0) Interest Expense (4,932) (4.1) (5,001) (4.0) 1.4 Net Interest Income 5,018 4.1 4,456 3.6 (11.2) Other Operating Income 1,1
Slide 7: Asset mix and interest income sources
5 As a % of Total Interest Income 50.5% 50.6% 40.7% 41.4% 60.2 104.0 92.5 Q2 '05 56.6 99.6 93.2 Q1 '05 46.2% 45.6% 60.7 94.4 93.1 Q4 '04 54.6 87.0 94.0 Q3 '04 42.3% 47.4% 50.2 82.3 102.3 Q2 '04 55.4 76.7 107.3 Q1 '04 Other Assets 34.1% 60.6% 50.6 75.9 122.9 Q4 '03 Asset Growth of 2.9% Q-o-Q – Consol
Slide 8: Commercial & Consumer Segments Driving Loan Growth
Commercial & Consumer Segments Driving Loan Growth Quarterly Loan Data – Consolidated Quarterly Loan Segment Details – Bank Only 58.2% Corporate 42.7 40.6 41.8 41.5 42.3 42.9 44.0 56.8% 40.2 Loans (Rp tn) 38.2 38.9 39.5 47.9% 53.7% LDR (%) 42.4 40.4 42.5% 37.7 36.1% 35.4% Commercial 31.4 30.1 33.0 3
Slide 9: Business Unit Performance, H1 2005
Business Unit Performance, H1 2005 Small & Business Unit Performance (Rp bn) Corp. Comm. Cons. CRG Treasury* Micro Earning Assets (Avg. Bal.) 34,018 24,010 9,606 6,141 14,968 116,004 Deposits & Borrowings (Avg. Bal.) 50,807 21,131 97,165 787 837 10,240 Interest Margin on Assets 459 559 327 163 (291)
Slide 10: Strong Mortgage Growth in Consumer Loan Portfolio
Strong Mortgage Growth in Consumer Loan Portfolio Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type 11,000 Other 653 Growth (%) 10,000 Loan Type 1,257 Cash Collateral Loans Credit Cards Y-o-Y Q-o-Q 9,000 727 Payroll Loans 1,206 Home Equity Loans Other 511.26% 34.68% 1,932 8,000 M
Slide 11: Sales from the Recap Bond Portfolio
Sales of Rp 1.6 trillion from the Recap Bond Portfolio At Fair Value, Mar Trading AFS HTM 2005 (Rp tn) (Mark to Market#) (Nominal Value) Total % of Total (Mark to Market*) Fixed Rate 0.9 2.8 1.4 5.1 5.5% Variable Rate 1.5 26.2 59.7 87.4 94.5% Hedge Bonds - - - - - Total 2.4 29.0 61.1 92.5 % of Total
Slide 12: Funding Growth of 7.0% Q-o-Q from Time Deposits
Funding Growth of 7.0% Q-o-Q from Time Deposits Deposit Analysis – Bank Only Retail Deposits (%) Low-Cost Deposits (%) 200 180 23.4 21.5 17.8 20.6 20.6 19.4 18.6 13.3 23.6 18.0 17.3 11.6 106.9 105.1 160 25.9 21.3 16.5 13.8 11.1 107.7 106.1 96.7 104.1 72.3 100.7 12.5 66.5 21.5 80.5 85.9 Deposits by T
Slide 13: Savings Deposit Volume Drop in Line with Market
Savings Deposit Volume Drop in Line with Market Savings Deposit Growth Average Quarterly Rupiah Deposit Costs (%) Demand Deposits Savings Deposits (Rp tn) 17.1% Savings As % of Total Deposits Time Deposits National Share of Savings Deposits (%) 17.0% 1 Mo. SBIs 13.9% 30.6% 13.1% 22.8% 27.1% 10.6% 8.
Slide 14: Margins Contracting Due to FX Impact & NPLs
Margins Contracting Due to FX Impact & NPLs All figures - Bank Only 13.9% 13.6% 13.5% 13.0% 13.0% 13.0% 12.6% 12.8% 2.1% 12.3% 2.0% 2.5% 11.9% 11.8% 1.7% 2.2% 2.2% 2.2% 11.5% 1.5% 11.3% 1.1% 10.9% 1.8% 0.8% 11.8% 11.6% 10.4% 2.2% 0.8% 2.5% 11.2% 11.1% 11.1% 11.0% 10.8% 10.8% 10.8% 9.5% 9.3% 10.5% 10
Slide 15: 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% Avg USD SIBOR 15.9% Avg COF 14.0% 14.0% 7.6% 14.4% 14.1% 7.3% 13.1% 11.9% 6.5% 12.5% 5.7% 11.1% 11.7% 10.2% 11.1% 5.0% 5.6% Avg Spr
Slide 16: Non-loan Related Fees & Commissions
Non-loan Related Fees & Commissions Non-loan related fees & commissions Details of Q2 2004 & 2005 Y-o-Y Growth =23.0% 12.8% % of Operating Income* 12.8% 11.5% 36.0% 10.5% 36.4% 9.6% 19.8% 20.1% Q1 ‘05 Q1 ‘04 6.3% 7.3% 7.6% 17.9% 4.8% 5.1% 12.5% 4.8%4.9% 4.1% 7.5% 5.5% 8.5% 17.2% 2.3% 10.8% Administr
Slide 17: Rising Cost to Income Ratio as Retail & Subsidiaries grow
Rising Cost to Income Ratio as Retail & Subsidiaries grow Quarterly Operating Expenses & CIR Breakdown of Q2 2004 & 2005 Operating Expenses Change Q2 ‘04 Q2 ‘05 (Y-o-Y) 58.9% Cost to Income Ratio* (%) Personnel Expenses 55.2% Annual Avg CIR (%) Base Salary 228.5 254.5 11.4% 49.4% 45.8% 45.4% Other A
Slide 18: Bank Mandiri Loan Portfolio Analysis
Bank Mandiri Loan Portfolio Analysis Q2 2005 16
Slide 19: Q2 2005 Loan Movement, Performing & Non-Performing Loans
Q2 2005 Loan Movement, Performing & Non-Performing Loans Performing Loan Movements - Bank Only Non-Performing Loan Movements – Bank Only IDR bn 75,243 54 71,965 6,985 3,005 648 195 44 25,187 333 557 6,985 17,605 54 Beg. U/G from D/G to Net FX End Beg. U/G to PL D/G from Disburse.CollectionsWrite-Off
Slide 20: Q2 2005 Movement in Category 1 and 2 Loans
Q2 2005 Movement in Category 1 and 2 Loans Category 1 Loan Movements (Rp bn) – Bank Only Category 2 Loan Movements (Rp bn) – Bank Only 62,891 7,439 57,571 1,323 1,323 463 2,440 2,757 7,439 4,545 14,394 16 12,352 37 249 185 Beg. Bal. D/ Gt o 2 U/ G f rom D/ G t o U/ Gf rom Net FXImpact End Bal. Beg.
Slide 21: Provisioning Coverage Reflects BI Requirements
19 50% 40% 30% 20% 10% 0% 14.8% 14,394 12,352 Q1 '05 9.4% 8,334 9,852 Q3 '04 2 - Special Mention Loans (Rp Bn) 9,912 15.0% 10621 Q1 '04 10,983 15,345 Q3 '03 Category 2 Loans – Bank Only 15,585 Cat 2 % 24.8% 17,432 Q1 '03 Provisioning Coverage Reflects BI Requirements 16,202 11,371 Q3 '02 13,378 26.2
Slide 22: NPL, Provisioning & Collateral Details – Bank Only
NPL, Provisioning & Collateral Details – Bank Only Non-Performing Loans by Segment Collateral Valuation Details Collateral value is credited against cash provisioning NPLs NPLs requirements on a conservative basis. For assets (Rp tn) (%) valued above Rp 5bn: Corporate 18.01 40.96% Collateral is va
Slide 23: Quarterly Analysis of Upgrades and Downgrades
Quarterly Analysis of Upgrades and Downgrades* Total Corporate & Commercial Loans Net Upgrades/Downgrades# Q2 2005 Details Loan Q2‘05 Q3 Q4 Q1 Q2 DG to UG to Background Balance 2004 2004 2005 2005 NPL PL (Rp bn) Restructured 20,967.6 0.6% 2.2% 30.7% 10.0% 10.0% 0.0% IBRA 5,019.2 0.8% 9.1% 15.0% 3.4%
Slide 24: Bank Mandiri Financial Performance
Bank Mandiri Financial Performance Q2 2005 22
Slide 25: H1 2005 Core Earnings Declined 27.6% from H1 2004
H1 2005 Core Earnings Declined 27.6% from H1 2004 IDR bn RoE - After Tax (Annualized) 8,000 26.2% Gain on Sale/Value of Securities FX Gain 23.6% Core Earnings 22.8% 1,651 7,000 21.5% Pre-Provision Operating Profit 2,072 6,000 775 402 5,000 819 114 2,021 1,408 1,454 260 4,000 799 645 1,528 8.1% 5,492
Slide 26: High CAR Maintained at 23.7%
High CAR Maintained at 23.7% CAR BI Min Req 31.4%31.3% 30.7% 29.3% 29.3%29.8% 29.8% 28.5% 28.6% 27.9% 27.7% 27.5% 26.1% 26.1% 26.4% 26.6% 26.6% 26.6% 25.3% 23.7% 23.4% 115.9 114.1 108.9 102.3 96.2 94.2 91.9 89.5 79.5 77.8 72.5 64.3 61.0 59.2 58.1 56.1 51.3 51.6 30.4 28.1 44.0 27.5 27.5 27.2 42.3 13.
Slide 27: Potential Upsides
Potential Upsides Aggregate of IDR 21.43 tn (US$ 2.26 bn) in written-off loans as of end- December 2004, with significant recoveries on-going: ¾ 2001: IDR 2.0 tn ¾ 2002: IDR 1.1 tn Written-off Written-off Loans Loans ¾ 2003: IDR 1.2 tn ¾ 2004: IDR 1.08 tn ¾ Q1 ’05 : IDR 0.222 tn (US$ 23.4 mn) ¾ Q2
Slide 28: Corporate Actions
Corporate Actions Interim dividend payment of Rp 60 per share on 30 December 2004 AGM approved payment of Rp 70.496 per share final dividend payment, in keeping with our 50% dividend payout policy. Schedule as follows: ¾ Cum Date – 13 June 2005 Dividend Dividend ¾ Ex Date – 14 June 2005 Payment
Slide 29: Developing Bank Mandiri's Grand Strategy and Corporate Plan
Developing Bank Mandiri’s Grand Strategy and Corporate Plan 27
Slide 30: Agenda
Agenda 11 7 Major Operational Problems 22 5 Pillars of Consolidation Strategy 33 Short Term Action Plan 44 Non Performing Loan (NPL) Strategy 55 Grand Strategy 28
Slide 31: Seven Major Operational Problems
Seven Major Operational Problems 11 Non Performing Non-performing loans and high credit risk, especially in the corporate Non Performing Loans portfolio as a result of system weakness and inadequate human resource Loans capabilities in credit area 22 Governance, risk management and control systems h
Slide 32: Five Consolidation Strategies for Bank Mandiri
Five Consolidation Strategies for Bank Mandiri 11 Resolving Non-Performing Loans (NPLs) and consolidating Corporate Banking business 22 Improving corporate image, while ensuring implementation of Good Corporate Governance practices and upgrading capabilities 33 Continuing to develop business in all
Slide 33: Short Term Action Plans
Short Term Action Plans Action Plan 30 Days Action Plan 30-90 Days And Action Plan Until End of 2005 1. 1. To To publish publish March March 2005 2005 Financial Financial 1. 1. To To develop develop and and implement implement 1. 1. To To accelerate accelerate recovery recovery of of NPLs NPLs State
Slide 34: Rp18.6 Trillion in Additional NPLs since December 2004
Rp18.6 Trillion in Additional NPLs since December 2004 NPL* IDR Trillion 30 Obligors accounted for 75% of NPLs 7.6 51% of NPLs are still current in interest payments 11.0 25.2 6.6 Based Upon : Dec 2004 Adjustment to BI Audited including June 2005 Stock Audit and additional Stock implementation of im
Slide 35: Q2 2005 Downgrades to NPL by Cause
Q2 2005 Downgrades to NPL by Cause Loan Profile: Q2 Total Downgrades to NPLs (Rp 6,985 bn) Bank Only Financial Condition – refers to financial IDR bn conditions including negative equity, 43% operating losses and high debt to equity ratios. Missed Payment – includes loans with payments 90 days o
Slide 36: Aggressive program across the Risk Management System to resolve NPLs
We will pursue an aggressive program across the Risk Management System to resolve NPL problems Front-end Middle-end Back-end “Underwriting/pricing” “Monitoring” “NPL management” 9 Accelerate implementation 7 Install simple loan 2 Turbo-charge “Top 20-30” of agreed-upon programs monitoring system – s
Slide 37: Opportunities to Refine Loan Policies and Processes
Opportunities to Refine Loan Policies and Processes 11 Improvement Improvement of of Improve end to end business processes, which includes setting detailed target Business Business market, credit risk management process, loans monitoring and loans review and Processes Processes collection/recovery
Slide 38: Prioritization of Strategic Initiatives for NPL Reduction Program
Prioritization of Strategic Initiatives for NPL Reduction Program First 180 days (underway): After 180 days: “Tactical and practical” “Building for long term” Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Back-end: Turbo-charge Top 20-30 a) Stock Rapid response team on newly Management
Slide 39: Our View on Future Market Development
Our View on Future Market Development • Indonesian banking market revenue and its contribution pool will rapidly continue to grow. Revenue is expected to grow about 12 – 14% • Lending products will dominate the market. High growth in lending products will lead to domination in banking revenue and co
Slide 40: Our aspiration is to be a Dominant Bank in all segments
Our aspiration is to be a Dominant Bank in all segments Dominant Dominant Bank Bank in in Indonesia, Indonesia, with with 20-30% 20-30% market market share share across across all all segments: segments: corporate, corporate, commercial, commercial, and and consumer consumer banking banking Corporat
Slide 41: Key Elements of Our Dominant Universal Banking Strategy
Key Elements of Our Dominant Universal Banking Strategy Going Forward Elements of Bank Mandiri Corporate Strategy Key Targets Existence in all of the attractive segments in the market, i.e. those which are large, growing and Market revenue share of 27- profitable 28%: Dominant share in each of
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: Transformational Path Towards Bank Mandiri's Aspirations
Transformational Path Towards Bank Mandiri’s Aspirations Horizon 3: Consolidate for domestic leadership Horizon 2: Re-organize for growth Horizon 1: • Scale up business models Stabilize the platform • Refine existing business models to achieve top • Participate in domestic positions (e.g., in top 3)
Slide 44: Bank Mandiri Financial Summary
Bank Mandiri Financial Summary Q2 2005 42
Slide 45: Summary Balance Sheet: June 2004, Mar & June 2005
Summary Balance Sheet: June 2004, Mar & June 2005 Q2’04 Q1‘05 Q2 ‘05 Y-o-Y Rp (trillions) Rp (trillions) Rp (trillions) USD (billions)# Rp % Change Total Assets 234.7 249.4 256.8 26.3 9.4 Cash 2.1 2.4 2.3 0.2 9.5 Current Account w/BI 9.4 14.3 15.9 1.6 69.1 Certificates of BI 10.2 3.7 5.4 0.6 (47.1)
Slide 46: Summary Quarterly Balance Sheet: Q3 '04 – Q2 '05
Summary Quarterly Balance Sheet: Q3 ‘04 – Q2 ‘05 Q3 ‘04 Q4 ‘04 Q1 ‘05 Q2 ‘05 Q-o-Q Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# Rp % Change Total Assets 235.5 248.2 249.4 256.8 26.3 3.0 Cash 2.1 2.4 2.4 2.3 0.2 (2.1) Current Accounts w/BI 13.6 16.0 14.3 15.9 1.6 10.9 Certificates of BI 4.0 8.0 3.7 5.4
Slide 47: Summary P&L Information – Q2 2005
Summary P&L Information – Q2 2005 Q-o-Q Q2 2004 Q1 2005 Q2 2005 Change % of % of Rp % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets* (Billions) Av.Assets (%) Interest Income 4,732 7.8 4,777 7.9 4,680 7.5 (2.0) Interest Expense (2,309) (3.8) (2,407) (4.0) (2,594) (4.2) 7.8 Net Interest Income 2
Slide 48: Recap Bond Portfolio Details – 30 June 2005
Recap Bond Portfolio Details – 30 June 2005 – Bank Only Maturity Interest Rate Nominal Mark To Fair Value Series Date (%) Trading AFS HTM Market Trading AFS HTM Fixed Rate FR0002 15-Jun-09 14.00% 18,068 8,071 - 110.60 19,983 8,927 - FR0005 15-Jul-07 12.25% 40,000 2,813 - 103.75 41,500 2,918 - FR0010
Slide 49: Bank Mandiri's Credit Ratings
Bank Mandiri’s Credit Ratings S&P Moody’s Fitch Sovereign Ratings Outlook Positive Stable Positive Long Term Bank Deposits B3 Long Term Foreign Currency Debt B+ B2 BB- Short Term Foreign Currency Debt B B Long Term Local Currency Debt BB B2 BB- Bank Mandiri Ratings Long Term Foreign Currency Outlook
Slide 50: Reconciliation to IFRS
Reconciliation to IFRS FY ’03 H1 ’04 FY ’04 H1 ’05 Rp (Billions) Rp (Billions) Rp (Billions) Rp (Billions) Net profit under Indonesian GAAP 4,586 3,073 5,256 616 IFRS Adjustments Allow. for possible losses on earning assets (662) 112 (309) (160) Allow. for possible losses on commitments & contingenc
Slide 51: Additional Loan Analysis & Portfolio Detail
Bank Mandiri Additional Loan Analysis & Portfolio Detail 49
Slide 52: Changes in BI Regulations for Earning Asset Classification
Changes in BI Regulations for Earning Asset Classification (PBI No. 7/2/PBI/2005) Classification by Payment History Previously Current No change to BI Prov. Req. Classification Category 1 - Current Current Current 1% Classification by Category 2 – Special Mention 1 – 90 days 1 – 90 days 5% by Aging
Slide 53: 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 54: Quarterly Analysis of NPL and PL changes
Quarterly Analysis of NPL and PL changes Q3 2004# Q4 2004# Q1 2005# Q2 2005# Loan Background Net Net Net Value (Rp bn) DG to NPL UG to PL Net Corporate Loans Restructured 0.1% 0.1% 42.6% 14,098 6.1% - 6.1% IBRA 1.0% 11.2% 18.2% 4,153 3.5% - 3.5% Pre-Merger - - - 332 0.2% - 0.2% Post-Merger 0.1% 0.1%
Slide 55: Q2 2005 Loan Detail: Downgrades to NPL
Q2 2005 Loan Detail*: Downgrades to NPL Loan Profile: Q2 Corp & Comm Downgrades to NPL (Rp 6,901 bn) - Bank Only Downgrades to NPL in Corporate and 100% Program Commercial loans totaled Rp 6,901 Small IBRA Oth<5% Export 90+ Days billion (7.1% of total loans) in Q2. Of 90% Constr-Oth these downgraded
Slide 56: Q2 2005 Loan Detail: Non-Performing Loans
Q2 2005 Loan Detail*: Non-Performing Loans Loan Profile: Q2 Corp & Comm NPLs (Rp 24,962 bn) Bank Only Rp24,962 billion in Corporate & 100% Other Commercial NPLs remained in Q2, or O/S Synd 25.7% of total loans. Of these NPLs in Oth<5% 90% IBRA Export Q2: 90+ Days Mfg-NonM 51.3% remain current on i
Slide 57: Q2 2005 Loan Detail: New Downgrades to Category 2
Q2 2005 Loan Detail*: New Downgrades to Category 2 Loan Profile: Q2 Corp & Comm Downgrades to Cat. 2 loans (Rp 6,957 bn) Bank Only Rp 6,957 billion in Corporate & 100% Micro 61+ O/S Commercial loans were downgraded Small 31-60 IBRA Oth<5% Export to Category 2 in Q2, or 7.2% of total 90% < 30 Trans l
Slide 58: Q2 2005 Loan Detail: Category 2 Loans
Q2 2005 Loan Detail*: Category 2 Loans Loan Profile: Q2 Corp & Comm Category 2 Loans (Rp 13,311 bn) Bank Only Rp 13,311 billion in Corporate & 100% Micro 61+ O/S New Bal. Commercial loans were in Category 2 Small Other 31-60 Oth<5% IBRA Export in Q2, or 13.7% of total loans. Of these 90% < 30 Bus Se
Slide 59: Limited Restructured Loan Activity in Q2
Limited Restructured Loan Activity in Q2 Restructured Loan Movement 1999 - Q2 ‘05 Loans by Restructuring Type in Q2 2005 Others# IDR bn Write-Offs Repayments Restructuring Balance Maturity Extension 49% Additional Loans 3% LT loans Maturity w/Convertible Extension 10,583 1999 27,423 25,123 29,542 23
Slide 60: Q2 2005 Loan Detail: Restructured Loans
Q2 2005 Loan Detail*: Restructured Loans Loan Profile: Q2 Corp & Comm Restructured Loans (Rp 21.2 tn) Bank Only 100% Rp 21,182 billion in restructured Other Small Corporate & Commercial loans 90+ Oth<5% Synd. NPL DG 5 remained in Q2, or 21.8% of total 90% Mfg-F&B loans. Of Restructured Loans in Q2:
Slide 61: Loan Portfolio Sector Analysis, Q2 2005
Loan Portfolio Sector Analysis, Q2 2005 Mfg-Oth Mfg-Chem Agri 9.5% Mfg-Chem Agri Mfg-F&B 10.5% 9.4% Mfg-F&B Trading-Other Mfg-Oth Trading-Other Constr 11.5% 9.2% Bus Serv Mfg-Text Oth<4% Constr 6.6% Mfg-P&P 8.9% Retail Trans Mfg-Wood 4.1% Mining 4.0% Bus Serv Mfg-Text 6.4% Retail 5.9% Trans 4.9% Min
Slide 62: Q2 2005 Loan Detail: Corporate Loans
Q2 2005 Loan Detail: Corporate Loans Loan Profile: Q2 Corporate Loans Only (Rp 43,958 bn) Bank Only Rp 43,958 billion in loans were in the 100% 31-60 1 Day Other O/S New Bal. Corporate portfolio in Q2, or 45.2% of Oth<5% Synd. NPL DG 5 total loans. Of the Corporate Loans in IBRA 90% Export Q2: Minin
Slide 63: Q2 2005 Loan Detail: Commercial Loans
Q2 2005 Loan Detail: Commercial Loans Loan Profile: Q2 Commercial Loans Only (Rp 42,393 bn) Bank Only Rp 42,393 billion in loans were in the 100% Other IBRA 61+ Program New Bal. 5 Oth<5% Commercial portfolio in Q2, or 43.6% 31-60 Export NPL DG 90% 4 USD Restr of total loans. Of the Commercial NPL NC
Slide 64: Q2 2005 Loan Detail: Rupiah Loans
Q2 2005 Loan Detail*: Rupiah Loans Loan Profile: Q2 Corp & Comm Rupiah Loans (Rp 52,930 bn) Bank Only Rp 52,930 billion in loans were Rupiah 100% Micro IBRA 61+ Other New Bal. 5 31-60 Oth<5% Program denominated in Q2, or 54.5% of total NPL DG Trans Small Export loans. Of the Rupiah Loans in Q2: 90%
Slide 65: Q2 2005 Loan Detail: Foreign Currency Loans
Q2 2005 Loan Detail*: Foreign Currency Loans Loan Profile: Q2 Corp & Comm FX Loans (Rp 33,421 bn) Bank Only Rp 33,421 billion in loans were foreign 100% 31-60 Other New Bal. currency denominated in Q2, or 34.4% Synd. O/S 5 < 30 Oth<5% NPL DG of total loans. Of the FX Loans in Q2: 90% Export Middle 1
Slide 66: Electronic banking channels rapidly expanding
Electronic banking channels rapidly expanding ATM Average Daily Transaction Volume and Value Other Transaction Services 263,908 3,808 239,554 Debit Cards Issued* (000) SMS Subs. (000) 225,829 SMS Trans. (000) Avg Daily Volume (000) Internet Bank. Subs. (000) 3,230 Avg Daily Value (Rp Mn) Call Center
Slide 67: Credit Card business has reached a plateau
Credit Card business has reached a plateau Mandiri Visa Card Holders and EOQ Receivables Visa Card Monthly Sales by Type of Transaction (Rp Billion) 709.4 7 4 4 Receivables (Rp Bn) 679.1 9 650.7 Transfer Balance 21 11 20 19 Cards (000s) 16 21 Cash Advance 24 7 3 3 25 8 5 Retail 21 21 19 19 19 27 18
Slide 68: Credit Card portfolio deteriorating in Q2
Credit Card portfolio deteriorating in Q2 Mandiri Visa Card Delinquency Rates Monthly Charge-offs, NPLs & Recoveries (%) (Rp Billion) 106.1 21.3% 30 DPD - Rp NPLs (90+DPD) 90 DPD - Rp Write-Offs 30 DPD - Cards 82.9 Recoveries 90 DPD - Cards 16.8% 67.2 13.3% 12.7% 10.7% 45.4 9.1% 9.2% 38.6 38.9 9.5%
Slide 69: Summary of Principal Subsidiaries
Summary of Principal Subsidiaries Bank Syariah Mandiri Mandiri Sekuritas AXA Mandiri • Equity Investment of Rp602.7 billion • Equity Investment of Rp702.1 billion • Equity Investment of Rp51.3 billion • Total Assets Rp7,717billion, with total • Total Assets Rp 1.930 billion, total • Total Assets of
Slide 70: Bank Syariah Mandiri
Bank Syariah Mandiri Branch Network & Customer Growth Summary Balance Sheet (Rp Billions) 444 Rp Bn 2003 2004 H1 ‘05 Branches Total Assets 3,422 6,870 7,717 357 Customers (000s) Cash & placement w/ 1,023 796 503 BI Current Accounts & 36 235 212 Placements w/BI Securities - Net 76 427 440 206 Total F
Slide 71: Bank Syariah Mandiri
Bank Syariah Mandiri Summary P&L (Rp billions) 2002 2003 2004 H1 ‘05 Total Operating Income 162.7 279.4 584.2 430.1 3rd Party Share on Returns 71.5 148.4 269.2 177.5 Bank's Share in Operating Income 91.3 131.1 315.0 252.6 Other Operating income 35.5 51.9 102.0 48.3 Operating Expenses 84.4 159.9 276.
Slide 72: Mandiri Sekuritas
Mandiri Sekuritas Summary Balance Sheet Summary P&L Rp Bn 2003 2004 H1 ‘05 Rp Bn 2003 2004 H1 ‘05 Total Assets 1,079.7 1,435.7 1,930.4 Operating Revenue 102.4 244.0 133.5 Cash & equivalent 82.9 117.4 141.7 Brokerage Commissions 3.9 15.6 13.3 Time deposit 50.0 50.0 - Investment Mgmt Fees 5.1 53.0 37.
Slide 73: Corporate Governance & Discipline
Corporate Governance & Discipline Milestones in Corporate Governance Declining Potential Operational Losses 33 No’s No’s Policy Policy in in force force since since 2001, 2001, establishing: establishing: Notification No No Errors Errors Potential Losses (Rp Bn) No No Delays Delays Warning 210.5
Slide 74: Bank Mandiri at a Glance
Bank Mandiri at a Glance 72
Slide 75: Organization Chart
Organization Chart Board of Commissioners Chairman – Edwin Gerungan Risk Policy Committee Audit Deputy Chairman - Muchayat Nomination & Remuneration Committee Committee Commissioners – Soedarjono, Richard Claproth, Secretariat & Research Committee MD & SEVP Gunarni Soeworo, Pradjoto, Yap Tjay Soen C
Slide 76: Agus Martowardojo, President Director
Agus Martowardojo, President Director Agus Martowardojo graduated with a BA from the Economics Faculty of the University of Indonesia in 1984, and began his banking career with a three- year stint as an International Loan Officer for the Jakarta branch of Bank of America. He joined Bank Niaga in 198
Slide 77: Staffing and Distribution Network Growth
75 92 2,562 H1 '05 6,603 H1 '05 500 2,470 2004 5,537 2004 490 2,022 2003 4,716 2003 520 1,559 2002 4,000 2002 500 1,184 2001 ATM-Link Network 3,160 2001 Staffing and Distribution Network Growth ATM Network 211 533 2000 2000 513 1999 1999 ATMs New 3.8 20,807 H1 '05 829 H1 '05 40 7.0 19,693 2004 789 2
Slide 78: Internationally Recognized as Indonesia's leading Bank
Internationally Recognized as Indonesia’s leading Bank Best Domestic Commercial Bank Best Domestic Bank 2004 2003, 2004 Best Domestic Commercial Bank Best Local Bank 2002, 2003, 2004 2001, 2002, 2003, 2004 Bank of the Year, Indonesia 2001, 2002, 2003, Best Indonesian Bank 2004 2001, 2002, 2003 Best
Slide 79: Loan growth, quality and provisioning relative to peers
77 24.7% Lippo 51.0% Mandiri 32.4% BCA 73.0% BII Ratio of Provisions to NPL 49.1% BII 100.0% Niaga Loan to Deposit Ratio 56.3% Mandiri 105.0% BNI Loan growth, quality and provisioning relative to peers 58.4% BNI 115.0% BTN (%) (%) 69.4% Permata 139.0% Danamon 75.5% BTN 158.0% Lippo 76.4% Danamon 180
Slide 80: Asset and liability mix relative to peers
78 8.3% Mandiri 6.1% BTN 8.6% Lippo 5.3% Danamon Yield on Assets (p.a.) 8.8% BII 5.2% BRI Cost of Funds (p.a.) 9.3% BCA 5.1% Permata 10.2% BNI 4.7% Niaga (%) (%) 10.5% Niaga 4.5% Mandiri 10.9% BTN 4.3% BNI 11.1% Permata 4.0% BII 11.6% Danamon 3.8% BCA 16.2% BRI 3.5% Lippo 27.2% Lippo 37.8% Danamon L
Slide 81: Efficiency measures relative to peers
79 6.3% BRI 60.8% BII 4.4% Permata 59.4% Permata 4.0% BII 57.5% Lippo 3.7% Niaga Cost/ Income 47.4% Mandiri Cost/Assets *Annualized 3.6% BNI 45.2% BRI (%)* (%) 3.3% Lippo 42.6% Danamon 3.1% BTN 41.5% BTN 2.8% BCA 41.4% Niaga 2.2% Mandiri 41.3% BCA 1.9% Danamon 40.7% BNI 40 BRI 24 Lippo 58 Danamon 31
Slide 82: Measures of scale and returns relative to peers
80 168 BTN 9.1% Mandiri 223 Niaga 25.0% Lippo Return on Equity (After Tax) 452 Permata 26.4% Permata 582 BRI 26.6% BCA ATMs 676 Lippo 30.3% BNI (%) 700 BII 30.7% Niaga 777 Danamon 30.8% BII 1,928 BNI 31.3% Danamon Measures of scale and returns relative to peers 2,540 BCA 43.1% BRI 2,560 Mandiri 44.1
Slide 83: Bank Mandiri Audited Financial Statements H1 2005
Bank Mandiri Audited Financial Statements H1 2005 81
Slide 84: Balance Sheets as of June 30, 2005 and 2004 (Assets)
BALANCE SHEETS As of June 30, 2005 and 2004 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION June 30, 2005 (Audited) June 30, 2004 (Audited) June 30, 2005 (Audited) June 30, 2004 (Audited) ASSETS 1. Cash 2,264,891 2,045,659 2,348,426 2,104,041 2. Placements with Bank Indonesia a. Current Acc
Slide 85: Balance Sheets as of June 30, 2005 and 2004 (Liabilities)
BALANCE SHEETS As of June 30, 2005 and 2004 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION June 30, 2005 (Audited) June 30, 2004 (Audited) June 30, 2005 (Audited) June 30, 2004 (Audited) LIABILITIES AND SHAREHOLDERS' EQUITY 1 Demand Deposits a. Rupiah 30,768,551 30,682,100 31,712,896 31,21
Slide 86: Statements of Profit and Loss
STATEMENTS OF PROFIT AND LOSS For the six months period ended June 30, 2005 and 2004 (In Millions of Rupiah) BANK CONSOLIDATED DESCRIPTION June 30, 2005 (Audited) June 30, 2004 (Audited) June 30, 2005 (Audited) June 30, 2004 (Audited) INCOME AND EXPENSES FROM OPERATIONS 1. Interest Income 1.1. Inter
Slide 87: Statements of Commitments and Contingencies
STATEMENTS OF COMMITMENTS AND CONTINGENCIES As of June 30, 2005 and 2004 (In Millions of Rupiah) BANK CONSOLIDATED NO DESCRIPTION June 30, 2005 (Audited) June 30, 2004 (Audited) June 30, 2005 (Audited) June 30, 2004 (Audited) COMMITMENTS COMMITMENT RECEIVABLES 1. Unused fund borrowings facilities a.
Slide 88: Management of the Bank as of June 30, 2005
MANAGEMENT OF THE BANK AS OF JUNE 30, 2005 SHAREHOLDER Jakarta, , 2005 Board of Commissioners - Chairman : Edwin Gerungan Republic of Indonesia : 69.48% S. E & O - Deputy Chairman : Muchayat (Ultimate Shareholders') Board of Directors - Commissioner : Soedarjono PT Bank Mandiri (Persero) Tbk. - Comm
Slide 89: Earning Assets and Other Information
EARNING ASSETS AND OTHER INFORMATION As of June 30, 2005 and 2004 (In Millions of Rupiah) BANK June 30, 2005 (Audited) June 30, 2004 (Audited) No ACCOUNT SPECIAL SUB SPECIAL SUB CURRENT DOUBTFUL LOSS TOTAL CURRENT DOUBTFUL LOSS TOTAL MENTION STANDARD MENTION STANDARD I Related Parties A EARNING ASSE
Slide 90: Foreign Exchange Transactions and Derivatives
FOREIGN EXCHANGE TRANSACTIONS AND DERIVATIVES As of June 30, 2005 (In Millions of Rupiah) BANK (AUDITED) NO TRANSACTION Contract Market Value Derivative Receivable & Payable Contract Value with Hedging Others Receivable Payable Netting Agreement A. Exchange Rate Related 1 Spot - 1,625,848 - - - 2 Fo
Slide 91: Calculation of CAR
89 CALCULATION OF CAR As of June 30, 2005 and 2004 (In Millions of Rupiah) Bank NO DESCRIPTION June 30, 2005 June 30, 2004 (Audited) (Audited) I. COMPONENTS A. Core Capital 20,636,696 19,086,768 1. Paid-Up Capital 10,075,034 10,000,000 2. Disclosed Reserves a. Agio 5,973,270 5,926,418 b. Disagio (-/
Slide 92: Financial Ratios
FINANCIAL RATIOS As of June 30, 2005 and 2004 Bank NO KEYS RATIOS June 30, 2005 June 30, 2004 (Audited) (Audited) I. Capital 1. CAR by considering credit risk 23.74% 27.52% 2. CAR by considering credit risk and market risk 23.25% 25.58% 3. Premises and Equipment to Capital 0.00% 0.00% II. Earning As
Slide 93: Loan Purchased from IBRA
91 LOAN PURCHASED FROM IBRA January 1, 2005 to June 30, 2005 (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 Amount NO DESCRIPTION (Audited) 1 Loan principal / outstanding balance as
Slide 94: Notes
Notes _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ____________________________________________________________
Slide 95: 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 96: For Additional Information
95 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 2005 Earnings Presentation on 6ix