PT Bank Mandiri (Persero) Tbk · IDX:BMRI
PT Bank Mandiri (Persero) Tbk — Bank Mandiri — Q1 2005 Earnings Presentation
72 slides from PT Bank Mandiri (Persero) Tbk's earnings presentation, May 30, 2005
Slide 1: Bank Mandiri Q1 2005 Results
Bank Mandiri Q1 2005 Results 0
Slide 2: Shareholding Information
Shareholding Information 2,200 Shareholders as of 31 March 2005 Description Investors Shares % 2,000 BMRI DOMESTIC 1,800 JCI 1. Government 1 14,000,000,000 69.51% 1,600 2. Retail 9,709 45,370,000 2.26% 1,400 3. Employees 17,368 220,751,663 1.10% 1,200 4. Pension Funds 87 52,745,500 0.26% 1,000 5. As
Slide 3: Bank Mandiri Presentation Contents
Bank Mandiri Presentation Contents Overview Overview Page Page ## Financial Financial Summary Summary Page Page ## Bank Bank Mandiri’s Mandiri’s Transformation Transformation 22 Summary Summary Q1Q1 Balance Balance Sheet Sheet 36 36 FY FY 2004 2004 Summary Summary Financials Financials 4
Slide 4: Bank Mandiri's Transformation Phases
Bank Mandiri’s Transformation Phases Regional Regional Champion Champion 2009 – beyond • Domestic Market Dominance Bank Bank Transformation Phase III • Strong Capital Position • Regional Footprints Toward Toward • Market Leader on Consumer & Commercial Banking Domestic Domestic 2005 - 2009 • Increas
Slide 5: Bank Mandiri Operating Highlights
Bank Mandiri Operating Highlights Q1 2005 3
Slide 6: Summary P&L Information – Q1 2005 vs. Q1 2004
Summary P&L Information – Q1 2005 vs. Q1 2004 Q1 2004 Q1 2005 YoY Change % of % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets (%) Interest Income 5,203 8.4 4,777 7.9 (8.2) Interest Expense (2,623) (4.2) (2,407) (4.0) (8.2) Net Interest Income 2,580 4.1 2,370 3.9 (8.1) Other Operating Income 53
Slide 7: Key Balance Sheet Items and Financial Ratios
Key Balance Sheet Items and Financial Ratios IDR billion / % Q1 2004 FY 2004 Q1 2005 YoY Change (%) Gross Loans 76,652 94,403 99,585 29.9 Government Bonds 107,317 93,081 93,211 (13.1) Total Assets 239,383 248,156 249,373 4.2 Customer Deposits 172,018 175,838 171,016 (0.6) Total Equity 23,299 24,935
Slide 8: Loan growth of 5.6% in Q1; LDR reached 58.2%
Loan growth of 5.6% in Q1; LDR reached 58.2% Consolidated Quarterly Data 58.2% Loans (Rp tn) 53.7% 51.8% LDR (%) 47.9% 42.5% 35.4% 36.1% 26.5% 28.3% 27.5% 26.3% 25.3% * 44.6 41.2 42.3 43.0 44.5 49.2 42.5 48.3 48.3 50.4 58.7 65.4 68.7 66.8 72.6 75.9 76.7 82.3 87.0 94.4 99.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 9: Consumer loan growth balancing the segment mix
Consumer loan growth balancing the segment mix Loans by Customer Segment (Rp tn) – Bank Only Loan Segment Details – Bank Only Y-O-Y 42.70 Corporate 42.89 By Segment Loans % of 40.62 41.80 41.5342.35 Growth 40.23 39.46 (Bank only) (Rp tn) Portfolio 38.1838.92 (%) 40.44 Corporate 42.89 10.2% 46.2% 37.
Slide 10: Corporate Banking remains the highest contributor to pre-provision operating profits
Corporate Banking remains the highest contributor to pre- provision operating profits for the quarter ended 31 Mar. 2005 Small & Business Unit Performance (Rp bn) Corp. Comm. Cons. Treasury Micro Earning Assets (Avg. Bal.) 31,725 22,487 8,806 5,615 22,938 Deposits & Borrowings (Avg. Bal.) 50,976 19,
Slide 11: Consumer Loan Portfolio Detail
Consumer Loan Portfolio Detail Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type 10,000 9,000 Other 727 Growth (%) Cash Collateral Loans Loan Type Y-o-Y Q-o-Q 1,206 Credit Cards 8,000 Payroll Loans 816 Home Equity Loans Other 386.4% 49.7% 1,270 Mortgages 7,000 1,918 510 Cash Coll
Slide 12: Restructured Loan Analysis
Restructured Loan Analysis Restructured Loan Movement 1999 - Q1 ‘05 Loans by Restructuring Type in Q1 2005 IDR bn Others* Write-Offs Repayments Restructuring Maturity Balance Extension 51% Additional Loans 2% LT loans w/Convertible option Maturity 9% Extension w/Other Maturity Restructuring Extensio
Slide 13: Recap Bond Portfolio
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 0.2 4.4 1.4 6.0 6.4% Variable Rate 1.5 24.5 59.7 85.8 92.0% Hedge Bonds - - 1.4 1.4 1.5% Total 1.7 29.0 62.5 93.2 % of Total 1.8% 31.1% 67.1% Bond Port
Slide 14: Growing Contribution from Loans vs. Bonds – Bank Only
Growing Contribution from Loans vs. Bonds – Bank Only Int. from Bonds Int. from Loans 280 46.6 60.5 57.3 38.6 54.0 240 33.4 30.4 18.3 44.6 39.0 36.1 47.1 50.6 60.7 56.6 25.7 23.2 40.3 55.4 50.2 54.6 As a % of Total Interest Income 76.7% 68.7 74.7% 74.9% 75.7% 75.4% 74.7% 74.1% 42.3 182.9 200 43.0 17
Slide 15: Funding Mix stable with Q1 contraction of 3.0% Q-o-Q
Funding Mix stable with Q1 contraction of 3.0% Q-o-Q 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 18.0 17.3 23.6 11.6 105.1 106.9 160 25.9 21.3 16.5 13.8 107.7 106.1 11.1 96.7 104.1 100.7 12.5 66.5 21.5 85.9 80.5 Deposits by Type (
Slide 16: Savings Deposit Growth Generating a Better Funding Mix
Savings Deposit Growth Generating a Better Funding Mix 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% 30.0% 22.8% 1
Slide 17: Margins normalizing as bond yields decline
Margins normalizing as bond yields decline All figures - Bank Only 13.9% 13.6% 13.5% 13.0% 12.8% 13.0% 13.0% 12.6% 2.1% 12.3% 2.0% 2.5% 11.9% 11.8% 1.7% 2.2% 2.2% 2.2% 11.5% 1.5% 1.1% 11.3% 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 18: Quarterly Margin Analysis by Currency
16 4.9% 3.3% 2.7% 6.5% 2.5% Q1 '05 Avg USD SIBOR 3.4% Avg Bond Yield Avg Loan Yield 2.9% Q3 '04 Avg Spread 3.0% Avg COF 2.2% Q1 '04 Quarterly Foreign Currency Margins 1.4% 5.6% 3.1% Q3 '03 1.4% 3.0% Q1 '03 7.6% 0.6% 2.9% Q3 '02 1.6% 1.0% Q1 '02 11.8% 0.2% 0.8% Q3 '01 -0.5% 0.4% Q1 '01 6.5% Quarterly
Slide 19: Rising non-loan related fees & commissions
Rising non-loan related fees & commissions Non-loan related fees & commissions Details of Q1 2004 & 2005 Y-o-Y Growth =35.7% %of Operating Income* 12.8% 11.5% 36.6% 10.5% 37.8% 9.6% 12.7% 20.0% Q1 ‘05 Q1 ‘04 4.6% 6.3% 7.3% 2.3% 5.1% 21.3% 4.8% 7.1% 6.8% 4.8%4.9% 11.5% 4.1% 21.1% 2.3% 18.2% Admin Fee
Slide 20: Cost to Income ratio rises as the Bank's Retail Business grows
Cost to Income ratio rises as the Bank’s Retail Business grows Cost to Income Ratio* (%) 58.9% Annual Avg CIR (%) 48.8% 45.4% 42.5% 40.3% 39.9% 40.4% 43.7% 723 37.1% 42.8% 40.0% 33.7% 33.8% 34.4% 38.9% 31.1% 36.9% 597 649 604 555 377 327 419 527 27.0% 475 495 389 957 408 298 370 1,034 322 406 211 35
Slide 21: Staffing and Distribution Network Growth
19 90 2,560 Q1 '05 5,991 Q1 '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 1.8 20,039 Q1 '05 820 Q1 '05 31 7.0 19,693 2004 789 2
Slide 22: Breakdown of Consolidated Operating Expenses
Breakdown of Consolidated Operating Expenses Q1 ‘04 Q1 ‘05 Change (Y-o-Y) Personnel Expenses Base Salary 224.6 232.0 3.3% Other Allowances 229.4 265.8 15.9% Post Employment Benefits 16.4 18.2 11.2% Training 16.3 24.8 52.1% Subsidiaries 40.5 63.3 56.1% Total Personnel Expenses 527.2 604.1 14.6% G & A
Slide 23: Bank Mandiri Loan Portfolio Analysis
Bank Mandiri Loan Portfolio Analysis Q1 2005 21
Slide 24: 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 25: Q1 2005 Loan Movement, Performing & Non-Performing Loans
Q1 2005 Loan Movement, Performing & Non-Performing Loans Performing Loan Movements - Bank Only Non-Performing Loan Movements – Bank Only IDR bn 218 17,605 81,969 124 11,214 97 60 75,243 578 3,786 11,214 6,576 124 Beg. U/G from D/G to Net FX End Beg. U/G to PL D/G from Disburse. Collections FX Impact
Slide 26: Q1 2005 Movement in Category 1 and 2 Loans
Q1 2005 Movement in Category 1 and 2 Loans Category 1 Loan Movements (Rp bn) – Bank Only Category 2 Loan Movements (Rp bn) – Bank Only 73,635 8,195 373 62,891 373 7,184 507 4,030 18 3,737 12,352 8,195 106 50 70 8,334 Beg. Bal. D/ Gt o 2 U/ Gf rom D/ Gt o U/ Gf rom Net FXImpact End Bal. Beg. Bal. Cat
Slide 27: Loans by Collectibility – Bank Only (%)
Special Mention Loans have increased to 13.0% Cat 2 % 100% 100% Loans by Collectibility – Bank Only (%) 80% 80% Cat. 2 as% of Total Loans 60% 60% 40% 35.7% 40% 26.2% 24.8% 20% 15.0%14.5% 20% 12.8%12.1% 13.3% 9.4% 0% 0% Q1 '00 Q2 '00 Q3 '00 Q4 '00 Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '
Slide 28: Provisioning Policy has been adjusted to BI requirements
Provisioning Policy has been adjusted to BI requirements NPL Movement - Consolidated Provisioning Details 62.2% Provisioning Performing Non-Performing Policy Loans Loans 55.4% 190.4% Collectibility 1 2 3 4 5 50.2% BI Req. 1% 5% 15% 50% 100% BMRI Policy 1% 5% 15% 50% 100% 146.7% 129.5% 132.0% 139.1%
Slide 29: Loan Segment NPL Details – Bank Only
Loan Segment NPL Details – Bank Only By Segment Loans Y-O-Y % of Portfolio (Bank only) (Rp tn) Growth(%) Corporate 42.89 10.2% 46.2% Commercial 40.44 34.5% 43.6% Consumer 9.52 125.1% 10.3% Total 92.85 26.8% 100% Non-Performing Loans by Segment NPLs NPLs (Rp tn) (%) Corporate 13.37 31.17% Commercial
Slide 30: Quarterly Analysis of Upgrades and Downgrades
Quarterly Analysis of Upgrades and Downgrades* Total Corporate & Commercial Loans Net Upgrades/Downgrades# Q1 2005 Details Loan Q1 ‘05 Q2 Q3 Q4 Q1 DG to UG to Background Balance 2004 2004 2004 2005 NPL PL 13.6% (Rp bn) Restructured 21,134.7 1.2% 0.6% 2.2% 30.7% 31.0% 0.4% IBRA 5,026.8 0.2% 0.8% 9.1%
Slide 31: Bank Mandiri Financial Performance
Bank Mandiri Financial Performance Q1 2005 29
Slide 32: Q1 2005 core earnings declined 16.2% from Q1 2004
Q1 2005 core earnings declined 16.2% from Q1 2004 IDR bn 8,000 Gain on Sale/Value of Securities 1,651 FX Gain Pre-Provision Operating Profit Core Earnings 2,072 6,000 402 2,021 114 1,454 260 4,000 3,723 4,787 4,145 3,514 3,357 2,000 88 17 1,769 1,483 0 2000 2001 2002 2003 2004 Q1 '05 30
Slide 33: Q1 PAT of Rp 519bn is a decline of 70.2% Y-O-Y
Q1 PAT of Rp 519bn is an decline of 70.2% Y-O-Y RoE - After Tax (Annualized) 26.2% 23.6% 22.8% 21.5% 775 819 1,408 799 645 1,528 8.3% 8.1% 1,017 1,329 967 690 602 829 1,300 1,744 290 1,549 1,168 472 308 519 (410) 2000 2001 2002 2003 2004 2005 Q1 PAT Q2 PAT Q3 PAT Q4 PAT 31
Slide 34: High CAR maintained
High CAR maintained CAR BI Min Req 31.4%31.3% 30.7% 29.3% 29.8% 29.3%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% 23.4% 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 27.2 42.3 13.3 42.6 13.3 26.5 25.5 25.0
Slide 35: 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 Written-off Written-off Loans Loans ¾ 2002: IDR 1.1 tn ¾ 2003: IDR 1.2 tn ¾ 2004: IDR 1.08 tn ¾ Q1 ’05: IDR 0.225 tn (US$ 24 mn) Prope
Slide 36: 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 37: Bank Mandiri Financial Summary
Bank Mandiri Financial Summary Q1 2005 35
Slide 38: Summary Balance Sheet: Mar 2004, Dec 2004 & Mar 2005
Summary Balance Sheet: Mar 2004, Dec 2004 & Mar 2005 Q1’04 Q4‘04 Q1 ‘05 Y-o-Y Rp (trillions) Rp (trillions) Rp (trillions) USD (billions)# Rp % Change Total Assets 239.4 248.2 249.4 26.3 4.2 Cash 2.1 2.4 2.4 0.2 10.1 Current Account w/BI 10.5 16.0 14.3 1.5 35.6 Certificates of BI 14.3 8.0 3.7 0.4 (7
Slide 39: Summary Quarterly Balance Sheet: Q2 '04 – Q1 '05
Summary Quarterly Balance Sheet: Q2 ‘04 – Q1 ‘05 Q2 ‘04 Q3 ‘04 Q4 ‘04 Q1 ‘05 Q-o-Q Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# Rp % Change Total Assets 234.7 235.5 248.2 249.4 26.3 0.5 Cash 2.1 2.1 2.4 2.4 0.2 0.0 Current Accounts w/BI 9.4 13.6 16.0 14.3 1.5 (10.6) Certificates of BI 10.2 4.0 8.0 3.7
Slide 40: Summary P&L Information – Q1 2005
Summary P&L Information – Q1 2005 Q-o-Q Q1 2004 Q4 2004 Q1 2005 Change % of % of Rp % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets* (Billions) Av.Assets (%) Interest Income 5,203 8.4 4,784 8.0 4,777 7.9 (0.1) Interest Expense (2,623) (4.2) (2,443) (4.1) (2,407) (4.0) (1.5) Net Interest Income
Slide 41: Recap Bond Portfolio Details – 31 March 2005
Recap Bond Portfolio Details – 31 March 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 98,071 - 113.55 20,516 111,360 - FR0005 15-Jul-07 12.25% - 72,813 - 107.70 - 78,420 - FR0010 15-
Slide 42: 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 43: Reconciliation to IFRS
Reconciliation to IFRS FY ’01 FY ’02 FY ’03 FY ’04 Rp (Billions) Rp (Billions) Rp (Billions) Rp (Billions) Net profit under Indonesian GAAP 2,746 3,586 4,586 5,256 IFRS Adjustments Allow. for possible losses on earning assets 955 215 (662) (309) Allow. for possible losses on commitments & contingenc
Slide 44: Bank Mandiri Additional Loan Movement & Portfolio Detail
Bank Mandiri Additional Loan Movement & Portfolio Detail 42
Slide 45: Quarterly Analysis of NPL and PL changes
Quarterly Analysis of NPL and PL changes Q2 2004# Q3 2004# Q4 2004# Q1 2005# Loan Background Net Net Net Value (Rp bn) DG to NPL UG to PL Net Corporate Loans Restructured 1.5% 0.1% 0.1% 14,278 42.6% - 42.6% IBRA - 1.0% 11.2% 4,143 18.2% - 18.2% Pre-Merger - - - 197 - - - Post-Merger 0.1% 0.1% 0.1% 2
Slide 46: Q1 2005 Loan Detail: Downgrades to NPL
Q1 2005 Loan Detail*: Downgrades to NPL Loan Profile: Q1 Corp & Comm Downgrades to NPL (Rp 11,161 bn) - Bank Only Downgrades to NPL in Corporate and 100% Small Oth < 5% Other O/S Commercial loans totaled Rp 11,161 Bus.Serv. Export Commercial billion (12.0% of total loans) in Q1. Of 90% Trading these
Slide 47: Q1 2005 Loan Detail: Non-Performing Loans
Q1 2005 Loan Detail*: Non-Performing Loans Loan Profile: Q1 Corp & Comm NPLs (Rp 17.5 tn) Bank Only Rp17.5 trillion in Corporate & 100% Small Program Commercial NPLs remained in Q1, or O/S Oth<5% Export 18.8% of total loans. Of these NPLs in Commercial 90% Q1: Mfg-Wood 60.0% remain current on inte
Slide 48: Q1 2005 Loan Detail: New Downgrades to Category 2
Q1 2005 Loan Detail*: New Downgrades to Category 2 Loan Profile: Q1 Corp & Comm Downgrades to Cat. 2 loans (Rp 7.8 tn) Bank Only Rp 7.8 trillion in Corporate & 100% Oth<5% O/S Commercial loans were downgraded 61+ Small Mfg-F&B Export IBRA 31-60 to Category 2 in Q1, or 8.4% of total 90% Trading Synd
Slide 49: Q1 2005 Loan Detail: Category 2 Loans
Q1 2005 Loan Detail*: Category 2 Loans Loan Profile: Q1 Corp & Comm Category 2 Loans (Rp 11.5 tn) Bank Only Rp 11.5 trillion in Corporate & 100% Program O/S UG to PL Commercial loans were in Category 2 Small 61+ Oth<5% 31-60 Mfg-Wood Synd in Q1, or 12.4% of total loans. Of these 90% Mining Special M
Slide 50: Q1 2005 Loan Detail: Restructured Loans
Q1 2005 Loan Detail*: Restructured Loans Loan Profile: Q1 Corp & Comm Restructured Loans (Rp 21.3 tn) Bank Only 100% Rp 21.3 trillion in restructured Program Small NPL - 5 61+ Corporate & Commercial loans Oth<5% NPL-NC 31-60 90% Export remained in Q1, or 22.9% of total Commercia 4 loans. Of Restruct
Slide 51: Loan Portfolio Sector Analysis, Q1 2005
Loan Portfolio Sector Analysis, Q1 2005 Mfg-Chemicals 9% Agriculture Mfg-F&B Construction Mfg-F&B 11% 8% Mfg-Chemicals Construction Business Services Business Services Agriculture 7% 12% Mfg-Textiles Mfg-Textiles Mfg-Other 6% Trading-Other Others < 4% Mfg-Pulp & Paper 8% Mfg-Other Retail 6% Transpor
Slide 52: Q1 2005 Loan Detail: Corporate Loans
Q1 2005 Loan Detail: Corporate Loans Loan Profile: Q1 Corporate Loans Only (Rp 42.9 tn) Rp 42.9 trillion in loans were in the 100% Other 61+ O/S NPL - Corporate portfolio in Q1, or 46.2% of 5 31-60 Export NPL-NC Oth<5% total loans. Of the Corporate Loans in 90% 4 Synd Q1: Restructured < 30 80% DG to
Slide 53: Q1 2005 Loan Detail: Commercial Loans
Q1 2005 Loan Detail: Commercial Loans Loan Profile: Q1 Commercial Loans Only (Rp 40.4 tn) Rp 40.4 trillion in loans were in 100% Other NPL - 5 Program Restructured 61+ Oth<5% NPL-NC Commercial portfolio in Q1, or 43.6% 4 Export DG to NPL of total loans. Of the Commercial 90% 3 31-60 Mfg-Wood USD Loa
Slide 54: Q1 2005 Loan Detail: Rupiah Loans
Q1 2005 Loan Detail*: Rupiah Loans Loan Profile: Q1 Corp & Comm Rupiah Loans (Rp 50.2 tn) Bank Only Rp 50.2 trillion in loans were Rupiah 100% NPL - 5 Oth<5% Other NPL-NC denominated in Q1, or 54.1% of total 4 61+ Mfg-NonM Small Export 90% 3 Synd DG to NPL loans. Of the Rupiah Loans in Q1: Mfg-Chem
Slide 55: Q1 2005 Loan Detail: Foreign Currency Loans
Q1 2005 Loan Detail*: Foreign Currency Loans Loan Profile: Q1 Corp & Comm FX Loans (Rp 33.1 tn) Bank Only Rp 33.1 trillion in loans were foreign 100% 31-60 NPL - currency denominated in Q1, or 35.6% O/S 5 Export NPL-NC of total loans. Of the FX Loans in Q1: Oth<5% Commercia 90% < 30 4 Synd 66.0% a
Slide 56: Electronic banking channels rapidly expanding
Electronic banking channels rapidly expanding ATM Average Daily Transaction Volume and Value Other Transaction Services 239,554 225,829 Debit Cards Issued* (000) 3,230 SMS Subs. (000) 3,072 SMS Trans. (000) Avg Daily Volume (000) Internet Bank. Subs. (000) 184,326 Avg Daily Value (Rp Mn) Call Center
Slide 57: Credit Card business expanding
Credit Card business expanding Mandiri Visa Card Holders and EOQ Receivables Visa Card Monthly Sales by Type of Transaction (Rp Billion) Transfer Balance 7 Receivables (Rp Bn) 679.1 Cash Advance 9 4 650.7 Retail 21 11 20 Cards (000s) 16 21 24 7 25 8 5 21 21 19 27 18 Transferred 509.2 from GE 22 418.
Slide 58: Credit Card portfolio quality improving
Credit Card portfolio quality improving Mandiri Visa Card Delinquency Rates Monthly Charge-offs, NPLs & Recoveries (%) (Rp Billion) 106.1 21.3% 94.6 30 DPD - Rp NPLs (90+DPD) 19.3% 90 DPD - Rp Write-Offs 30 DPD - Cards 82.9 Recoveries 16.8% 90 DPD - Cards 13.3% 13.0% 57.7 12.1% 12.7% 10.8% 10.7% 46.
Slide 59: Summary of Principal Subsidiaries
Summary of Principal Subsidiaries Bank Syariah Mandiri Mandiri Sekuritas AXA Mandiri • Equity Investment of Rp586.2 billion • Equity Investment of Rp723.2 billion • Equity Investment of Rp 25.8 billion • Total Assets Rp7,356 billion, with total • Total Assets Rp 4,267 billion, total • Total Assets o
Slide 60: Bank Syariah Mandiri
Bank Syariah Mandiri Branch Network & Customer Growth Summary Balance Sheet (Rp Billions) 357 388 Rp Bn 2003 2004 Q1 ‘05 Branches Total Assets 3,422 6,870 7,356 Customers (000s) Cash & placement w/ 1,023 796 432 BI Current Accounts & 36 235 201 Placements w/BI 206 Securities - Net 76 427 431 Total F
Slide 61: Bank Syariah Mandiri
Bank Syariah Mandiri Summary P&L (Rp billions) 2002 2003 2004 Q1 ‘05 Total Operating Income 162.7 279.4 584.2 207.0 3rd Party Share on Returns 71.5 148.4 269.2 82.6 Bank's Share in Operating Income 91.3 131.1 315.0 124.4 Other Operating income 35.5 51.9 102.0 26.0 Operating Expenses 84.4 159.9 276.4
Slide 62: Mandiri Sekuritas
Mandiri Sekuritas Summary Balance Sheet Summary P&L Rp Bn 2003 2004 Q1 ‘05 Rp Bn 2003 2004 Q1 ‘05 Total Assets 1,079.7 1,435.7 4,267.3 Operating Revenue 102.4 244.0 64.7 Cash & equivalent 82.9 117.4 200.4 Brokerage Commissions 3.9 15.6 8.2 Time deposit 50.0 50.0 - Investment Mgmt Fees 5.1 53.0 26.5
Slide 63: 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 64: Bank Mandiri at a Glance
Bank Mandiri at a Glance 62
Slide 65: Organization Chart
Organization Chart Board of Commissioners Chairman – Edwin Gerungan Audit Deputy Chairman - Muchayat Committee Commissioners – Soedarjono, Richard Claproth, Gunarni Soeworo, Pradjoto, Yap Tjay Soen Corporate Assistant to Board of Directors Secretary the Board Nimrod Sitorus of Director President Dir
Slide 66: 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 67: Loan growth, quality and provisioning relative to peers
65 22.6% Lippo 67.0% BII 30.6% BCA 105.0% Niaga Ratio of Provisions to NPL 43.6% BII 117.0% BNI Loan to Deposit Ratio 51.8% Mandiri 128.0% Danamon Loan growth, quality and provisioning relative to peers 55.1% BNI 130.0% Mandiri (%) (%) 57.2% Permata 155.0% BTN 67.9% BTN 159.0% Lippo 72.5% Danamon 18
Slide 68: Asset and liability mix relative to peers
66 8.1% Lippo 6.2% BTN 8.3% Mandiri 5.6% BRI Yield on Assets (p.a.) 9.1% BCA 5.3% Permata Cost of Funds (p.a.) 9.2% BII 4.7% Danamon 9.9% Niaga 4.6% Niaga (%) (%) 10.1% BNI 4.4% Mandiri 11.0% Permata 4.3% BII 11.2% Danamon 4.2% BNI 11.4% BTN 3.8% BCA 17.0% BRI 3.6% Lippo 24.4% Lippo 35.8% Permata Lo
Slide 69: Efficiency measures relative to peers
67 6.6% BRI 71.0% Lippo 5.3% BII 62.4% BII 4.7% BNI 61.8% Permata 4.6% Niaga Cost/ Income 54.9% Niaga Cost/Assets 4.3% Permata 52.9% BTN (%) (%) 3.8% BTN 44.1% BRI 3.7% Lippo 43.3% Mandiri 2.7% Danamon 42.2% BNI 2.7% BCA 41.8% BCA 2.3% Mandiri 38.0% Danamon 213 Lippo 102 BII 291 BII 119 Permata Indu
Slide 70: Measures of scale and returns relative to peers
68 168 BTN 26.4% Mandiri 223 Niaga 28.3% BCA Return on Equity (After Tax) 452 Permata 29.6% BNI 582 BRI 32.2% BII ATMs 635 Lippo 35.1% Danamon (%) 700 BII 40.9% BTN 777 Danamon 41.9% Niaga 1,928 BNI 42.2% BRI Measures of scale and returns relative to peers 2,470 Mandiri 42.7% Permata 2,540 BCA 104.5
Slide 71: 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 72: For Additional Information
71 For Additional Information: Please refer to our website at www.bankmandiri.co.id Or Contact: Nimrod Sitorus Corporate Secretary Tel: (6221) 524 5649 Fax: (6221) 526 8229 Jonathan Zax Head of Investor Relations Tel: (6221) 526 3817 Fax: (6221) 5290 4249 E-mail: ir@bankmandiri.co.id PT Bank Mandiri