Pt Bank Mandiri (persero) Tbk · IDX:BMRI
Pt Bank Mandiri (persero) Tbk — Q3 2005 Earnings Presentation
86 slides from Pt Bank Mandiri (persero) Tbk's earnings presentation, December 2005
Slide 1: Q3 2005 Results Presentation
PT Bank Mandiri (Persero) Tbk Q3 2005 Results Presentation 0
Slide 2: Shareholding Information
Shareholding Information Shareholders as of 30 September 2005 2,200 Description Investors Shares % 2,000 BMRI DOMESTIC 1,800 JCI 1. Government 1 14,000,000,000 69.19% 1,600 2. Retail 9,133 423,780,500 2.09% 1,400 3. Employees 13,941 152,809,777 0.76% 1,200 4. Pension Funds 105 63,123,500 0.31% 1,000
Slide 3: Bank Mandiri Presentation Contents
Bank Mandiri Presentation Contents Results Results Overview Overview Page Page ## Financial Financial Summary Summary Page Page ## Q3 Q3 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 Q3 2005 2
Slide 5: Key Quarterly Balance Sheet Items & Financial Ratios
Key Quarterly Balance Sheet Items & Financial Ratios IDR billion / % Q3 2004 Q2 2005 Q3 2005 YoY Change (%) Gross Loans 87,034 104,032 106,683 22.6 Government Bonds 93,954 92,536 92,267 (1.8) Total Assets 235,542 256,784 250,341 6.3 Customer Deposits 168,145 183,184 186,448 10.9 Total Equity 23,855
Slide 6: Summary P&L Information – 9 Mo. 2005 vs. 9 Mo. 2004
Summary P&L Information – 9 Mo. 2005 vs. 9 Mo. 2004 9 Mo. 2004 9 Mo. 2005 YoY Change % of % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets (%) Interest Income 14,426 8.0 14,775 7.8 2.4 Interest Expense (7,236) (4.0) (8,092) (4.3) 11.8 Net Interest Income 7,190 4.0 6,683 3.5 (7.1) Other Operatin
Slide 7: Total Assets and Asset Mix
5 As a % of Total Interest Income 48.0% 38.2% 51.4 106.7 92.3 Q3 '05 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 Total assets contract by 2.5% Q-o-Q – Consolidated 54.6 87.0 94.0 Q3 '04 42.3% 47.4% 50.2 82.3 102.3 Q2 '04 Other Assets 55.4 76.7
Slide 8: Loan growth modest across all segments
Loan growth modest across all segments Quarterly Loan Data – Consolidated Quarterly Loan Segment Details – Bank Only 58.2%57.2% Corporate 42.7 40.6 41.8 41.5 42.3 42.9 44.0 45.1 56.8% 40.2 Loans (Rp tn) 38.2 38.9 39.5 47.9% 53.7% LDR (%) 42.4 43.7 40.4 42.5% 37.7 36.1% 35.4% Commercial 31.4 30.1 33.
Slide 9: Business Unit Performance, 9 Months 2005
Business Unit Performance, 9 Months 2005 Small & Business Unit Performance (Rp bn) Corp. Comm. Cons. CRG Treasury* Micro Earning Assets (Avg. Bal.) 34,399 24,277 10,120 6,951 15,461 100,454 Deposits & Borrowings (Avg. Bal.) 52,538 20,625 98,635 828 0 11,219 Interest Margin on Assets 632 907 493 264
Slide 10: Consumer lending growth slows on tighter credit criteria
Consumer lending growth slows on tighter credit criteria Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type 12,000 Other Growth (%) Cash Collateral Loans 688 Loan Type Credit Cards 653 Y-o-Y Q-o-Q 1,354 10,000 Payroll Loans 1,257 Home Equity Loans 727 Other 422.45% 15.16% Mortgage
Slide 11: Recap Bond Portfolio Movement and Sales
Sales of Rp 666 billion from the Recap Bond Portfolio At Fair Value, Trading AFS HTM Sept 2005 (Rp tn) (Mark to Market#) (Nominal Value) Total % of Total (Mark to Market*) Fixed Rate 0.6 1.9 1.4 3.8 4.2% Variable Rate 1.7 26.9 59.7 88.4 95.8% Hedge Bonds - - - - - Total 2.3 28.8 61.1 92.3 % of Total
Slide 12: Funding growth of 2.2% Q-o-Q driven by Rp Time Deposits
Funding growth of 2.2% Q-o-Q driven by Rp 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 16.3 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 79.8 104.1 72.3 100.7 12.5 66.5 21.5 80.5
Slide 13: Savings deposit volume drops as TD rates rapidly increase
Savings deposit volume drops as TD rates rapidly increase Savings Deposit Growth Average Quarterly Deposit Costs (%) Savings Deposits (Rp tn) 17.1% As % of Total Deposits Rp DD National Share of Savings Deposits (%) 17.0% 13.9% Rp Savings Rp TD 1 Mo. SBIs 13.1% 30.6% 8.5% 9.0%SBI 27.1% 10.6% 9.5% 8.
Slide 14: Margins expand as loan yields outpace funding costs
Margins expand as loan yields outpace funding costs All figures - Bank Only 13.9% 13.6% 13.5% 13.0% 13.0% 13.0% 12.6% 12.8% 2.1% 2.0% 12.3% 2.5% 11.9% 11.8% 1.7% 2.2% 2.2% 2.2% 1.5% 11.5% 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% 9.
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 1Mo SIBOR 15.9% Avg COF 14.0% 14.0% 7.6% 14.4% 14.1% 12.6% 7.3% 13.1% 11.9% 6.5% 12.5% 5.7% 11.7% 10.2% 11.1% 11.1% 5.2% 5.
Slide 16: Non-loan Related Fees & Commissions
Non-loan Related Fees & Commissions Non-loan related fees & commissions Details of Q3 2004 & 2005 Y-o-Y Growth = -6.7% 12.8% % of Operating Income* 12.8% 11.5% 12.1% 36.8% 10.5% 32.6% 9.6% 22.6% Q3 ‘05 Q3 ‘04 1.2% 28.0% 8.9% 6.3% 7.3% 5.7% 4.8% 5.1% 5.8% 4.8%4.9% 23.6% 4.1% 6.5% 10.4% 2.3% 17.9% Adm
Slide 17: Cost to Income Ratio contained in Q3
Cost to Income Ratio contained in Q3 Quarterly Operating Expenses & CIR Breakdown of Q3 2004 & 2005 Operating Expenses Change Q3 ‘04 Q3 ‘05 (Y-o-Y) 58.9% Cost to Income Ratio* (%) Personnel Expenses 55.2% Annual Avg CIR (%) Other Allowances 274,963 290,750 5.7% 48.2% 45.8% 45.4% Base Salary 225,829
Slide 18: Bank Mandiri Loan Portfolio Analysis
Bank Mandiri Loan Portfolio Analysis Q3 2005 16
Slide 19: Q3 2005 Loan Movement, Performing & Non-Performing Loans
Q3 2005 Loan Movement, Performing & Non-Performing Loans Performing Loan Movements - Bank Only Non-Performing Loan Movements – Bank Only IDR bn 1,299 75,496 71,965 2,937 1,033 860 25,187 24,585 221 29 3,126 810 1,299 665 Beg. U/G from D/G to Net FX End Beg. U/G to PL D/G from Disburse.CollectionsWri
Slide 20: Q3 2005 Movement in Category 1 and 2 Loans
Q3 2005 Movement in Category 1 and 2 Loans Category 1 Loan Movements (Rp bn) – Bank Only Category 2 Loan Movements (Rp bn) – Bank Only 59,073 57,571 1,560 690 304 701 3,737 2,314 994 16,423 2,314 979 3,737 1,958 14,394 343 Beg. Bal. D/ Gt o 2 U/ Gf rom D/ Gt o U/ Gf rom Net FXImpact End Bal. Beg. Ba
Slide 21: Provisioning coverage reflects BI requirements
19 50% 40% 30% 20% 10% 0% 16.4% 14.8% 16,423 Q3 '05 14,394 12,352 Q1 '05 9.4% 8,334 2 - Special Mention Loans (Rp Bn) 9,852 Q3 '04 9,912 15.0% 10621 Q1 '04 10,983 15,345 Q3 '03 Category 2 Loans – Bank Only Cat 2 % 15,585 24.8% 17,432 Q1 '03 16,202 11,371 Q3 '02 Provisioning coverage reflects BI requ
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 Q3U NPLs requirements on a conservative basis. For assets (Rp tn) (Rp tn) (%) valued above Rp 5bn: Corporate 16.43 (1.58) 36.39%
Slide 23: Quarterly Analysis of Upgrades and Downgrades
Quarterly Analysis of Upgrades and Downgrades* Total Corporate, Commercial & Small Business Loans Net Upgrades/Downgrades# Q3 2005 Details Loan Q2‘05 Q4 Q1 Q2 Q3 DG to UG to Background Balance 2004 2005 2005 2005 NPL PL (Rp bn) Restructured 21,546.2 2.2% 30.7% 10.0% 4.5% 0.8% 5.3% IBRA 4,909.5 9.1%
Slide 24: Bank Mandiri Financial Performance
Bank Mandiri Financial Performance Q3 2005 22
Slide 25: 9 Mo. 2005 core earnings decline 23.0% from 9 Mo. 2004
9 Mo. 2005 core earnings decline 23.0% from 9 Mo. 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% 7,000 1,651 21.5% Pre-Provision Operating Profit 2,072 6,000 775 402 5,000 819 114 2,021 1,408 1,454 260 4,000 314 250 799 645 1,5
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% 23.7% 117.5 115.9 114.1 108.9 102.3 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 27.8 27.5 2
Slide 27: Additional Factors
Additional Factors Aggregate of IDR 22.07 tn (US$ 2.14 bn) in written-off loans as of end- September 2005, 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 H1 ’05 : IDR 0.420 tn (US$ 43.7 mn) ¾
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: Bank Mandiri's Strategic Roadmap and NPL Resolution Progress
Bank Mandiri’s Strategic Roadmap and NPL Resolution Progress 27
Slide 30: Major Operational Problems and Consolidation Strategies
7 Major Operational Problems and 5 Consolidation Strategies 1 Non-performing loans and high credit risk, especially in the Resolving Non-Performing corporate portfolio as a result of system weakness and inadequate human resource capabilities in credit area Loans (NPLs) and 11 consolidating Corpora
Slide 31: Our aspiration is to be a Dominant Multi-Specialist Bank
Our aspiration is to be a Dominant Multi-Specialist Bank Dominant Multi-specialist Bank Model Dominant Dominant Bank Bank inin Indonesia, Indonesia, with with 20-30% 20-30% market market share share of of revenue revenue across across all all segments, segments, with with distinctive distinctive str
Slide 32: Transformation themes for achieving these aspirations
Transformation themes for achieving these aspirations Strategic Aspiration: Dominant Multi-Specialist Bank Build Build winning winning Delivertailored Deliver tailored Strengthen Strengthenrisk risk organization organization and and propositionfor proposition for Revamp Revampalliance alliance manag
Slide 33: Strategic Road Map toward Dominant Multi-specialist Bank
Strategic Road Map toward Dominant Multi-specialist Bank ~12 months ~12-24 months ~12-24 months Horizon 1: Horizon 2: Horizon 3: Fix the leaks and lay foundations Consolidate and build momentum Accelerate and grow “Back on Track” “Outperform the Market” “Shaping the End Game” New BU structure and
Slide 34: Milestone Achievements in the Four Transformation Themes
Milestone Achievements in the Four Transformation Themes Boost Boost Sales Sales Culture Culture Control Control NPLs NPLs Acquisition of 3 (three) prime Implementation of a new NPLs decreased by Rp 604 Corporate Banking customers organization with a focus on billion from 25.9% (gross) to 3r
Slide 35: NPL decrease by Rp. 604 billion
NPL decrease by Rp. 604 billion or down from 25.9% (Gross) To 24.6% (Gross) – Bank Only 3,347 1,446 1,299 NPL June - Sept ’05 25,187 Reduction due to repayment or 24,585 Summary (Rp billion) upgrade of loans outstanding to: Domba Mas, Sulfindo Adiusaha, Mitra Jaya and Budi Acid Jaya Repayment/ Downg
Slide 36: Progress among 30 largest NPLs improves collectibility
Progress among 30 largest NPLs improves collectibility Collectibility improvements from June to September 2005 amounted to Rp2,237 billion, due in large part to improvements among our 30 largest NPL obligors : Domas Agrointi Prima in October 2005 has paid off Rp890 billion in principal Domba Mas
Slide 37: Significant NPL Restructuring at SOEs
Significant NPL Restructuring at SOEs (includes 30 largest NPLs) Waiting for government approval to roll-over the guarantee scheme on Garuda MCB, as a Garuda follow-on to the KKSK Meeting on 19 October 2005. If guarantees of the MTN are implemented, the loan collectibility will be upgraded to curr
Slide 38: Resolving NPLs and Written-Off Loans through DJPLN
Resolving NPLs and Written-Off Loans through DJPLN Auctionin in A breakthrough solution to reduce non Auction performing loans by working together with DJPLN conjunctionwith conjunction with DJPLN(State (State to auction foreclosed collateral DJPLN Bank Mandiri and DJPLN have signed an MoU on Co
Slide 39: Creating SPV JV to optimize collections and minimize risk
Creating SPV JV to optimize collections and minimize risk Options Description Consideration • Cannot reduce NPLs faster as loans are still Recruit loan work-out on Bank’s book In-house specialists from outside • Cannot resolve and undertake action due to professional work- to work in a separate repu
Slide 40: Targeting SPV Creation before end of 2006
Targeting SPV Creation before end of 2006 Stage Stage 11 Stage Stage 22 Stage Stage 33 Before Before End End Preparation Preparation Evaluating Evaluating Investor Investor Execution Execution 2006 2006 • Identify problems in • Set up investor’s criteria • Set-up legal entity SPV transferring NPL to
Slide 41: A comprehensive review of credit practices
A comprehensive review of credit practices is expected to strengthen future business development Bank Mandiri has improved credit practices in order to strengthen risk management in 3 areas: Policies, Process and Committee Improve Loan Disbursement Principles and Credit Policy to provide 1 compreh
Slide 42: New paradigms in Corporate Culture & Organization Development
New paradigms in Corporate Culture & Organization Development Corporate New corporate values have been formulated (Trust, Integrity, Professionalism, Culture Customer Focus and Excellence) as a foundation for future company development Reorganization Reorganization focusing on consolidation in c
Slide 43: Business Development – still a strategic focus of management
Business Development – still a strategic focus of management Acquisition of Business consolidation and reorganization in Corporate Banking has been Prime carried out. Business expansion has now begun with the acquisition of three Customers prime customers from competitors Stronger To build stron
Slide 44: Bank Mandiri Financial Summary
Bank Mandiri Financial Summary Q3 2005 42
Slide 45: Summary Balance Sheet: Sept 2004, June & Sept 2005
Summary Balance Sheet: Sept 2004, June & Sept 2005 Q3’04 Q2‘05 Q3 ‘05 Y-o-Y Rp (trillions) Rp (trillions) Rp (trillions) USD (billions)# Rp % Change Total Assets 235.5 256.8 250.3 24.3 6.3 Cash 2.1 2.3 2.6 0.3 23.5 Current Account w/BI 13.6 15.9 18.8 1.8 38.5 Certificates of BI 4.0 5.4 0.1 0.0 (97.8
Slide 46: Summary Quarterly Balance Sheet: Q4 '04 – Q3 '05
Summary Quarterly Balance Sheet: Q4 ‘04 – Q3 ‘05 Q4 ‘04 Q1 ‘04 Q2 ‘05 Q3 ‘05 Q-o-Q Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# Rp % Change Total Assets 248.2 249.4 256.8 250.3 24.3 (2.5) Cash 2.4 2.4 2.3 2.6 0.3 12.7 Current Accounts w/BI 16.0 14.3 15.9 18.8 1.8 18.5 Certificates of BI 8.0 3.7 5.4 0.1
Slide 47: Summary P&L Information – Q3 2005
Summary P&L Information – Q3 2005 Q-o-Q Q3 2004 Q2 2005 Q3 2005 Change % of % of Rp % of Rp (Billions) Av.Assets* Rp (Billions) Av.Assets* (Billions) Av.Assets (%) Interest Income 4,451 7.6 4,680 7.4 5,318 8.4 13.6 Interest Expense (2,304) (3.9) (2,594) (4.1) (3,091) (4.9) 19.2 Net Interest Income 2
Slide 48: Recap Bond Portfolio Details – 30 September 2005
Recap Bond Portfolio Details – 30 September 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% 68 99.99 68 FR0004 15-Feb-06 12.13% 55,000 99.51 54,733 FR0005 15-Jul-07 12.25% 10,000 97.50 9,750
Slide 49: Bank Mandiri's Credit Ratings
Bank Mandiri’s Credit Ratings S&P Moody’s Fitch Sovereign Ratings Outlook Stable Positive 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- Short Term Local Currency Debt B Bank Mandiri Ratings L
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: Bank Mandiri 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 Q4 2004# Q1 2005# Q2 2005# Q3 2005# Loan Background Net Net Net Value (Rp bn) DG to NPL UG to PL Net Corporate Loans Restructured 0.1% 42.6% 6.1% 14,536 0.3% 6.0% 5.7% IBRA 11.2% 18.2% 3.5% 4,186 0.9% - 0.9% Pre-Merger - - 0.2% 192 - - - Post-Merger 0.1% 8.3%
Slide 55: Q3 2005 Loan Detail: Collectibility by Business Unit
Q3 2005 Loan Detail*: Collectibility by Business Unit Loan Profile: Q3 Collectibility (%) by BU - Bank Only Loan Profile: Q3 Collectibility (Rp bn) by BU - Bank Only 50,000 3.8% 4.4% 3.9% 8.7% 2.1% 1.1% 1.9% 1.9% 0.7% 1.7% 18.7% 8.1% 5.3% 13.3% 12.4% 6.7% 40,000 7.2% 18.1% 10.6% 5 30,000 5 17.3% 4 4
Slide 56: Q3 2005 Loan Detail: Downgrades to NPL
Q3 2005 Loan Detail*: Downgrades to NPL Loan Profile: Q3 Downgrades to NPL (Rp 1,177 bn) - Bank Only Corporate, Commercial & Small 100% O/S Program Business loans downgraded to NPL in IBRA Synd. Small Oth<5% Q3 totaled Rp 1,177 billion (1.0% of 90% Restr total loans). Of these loans: Mfg-Chem 32.8
Slide 57: Q3 2005 Loan Detail: Non-Performing Loans
Q3 2005 Loan Detail*: Non-Performing Loans Loan Profile: Q3 NPLs (Rp 24,193 bn) Bank Only Corporate, Commercial & Small 100% Program Business NPLs totaled Rp24,193 billion O/S Export in Q3, or 24.2% of total loans. Of these 90% IBRA Oth<5% NPLs in Q3: 33.0% remain current on interest 80% Agri IDR
Slide 58: Q3 2005 Loan Detail: New Downgrades to Category 2
Q3 2005 Loan Detail*: New Downgrades to Category 2 Loan Profile: Q3 Downgrades to Cat. 2 loans (Rp 3,216 bn) - Bank Only Rp 3,216 billion (3.2% of total loans) 100% Export O/S in Corporate, Commercial & Small Oth<5% Program IBRA Small 61+ Restr Business loans were downgraded to 90% Mfg-F&B Category
Slide 59: Q3 2005 Loan Detail: Category 2 Loans
Q3 2005 Loan Detail*: Category 2 Loans Loan Profile: Q3 Category 2 Loans (Rp 15,065 bn) Bank Only Rp 15,065 billion (15.1% of total loans) 100% Other O/S New Bal. in Corporate, Commercial & Small Small IBRA 61+ Oth<5% Export Business loans were in Category 2 in 90% 31-60 1 to 2 Q3. Of these Special
Slide 60: Q3 2005 Loan Detail: Upgrades to PL
Q3 2005 Loan Detail*: Upgrades to PL Loan Profile: Q3 Upgrades to PL (Rp 2,913 bn) - Bank Only Corporate, Commercial & Small 100% O/S Oth<5% Program Business loans upgraded to PL in Q3 Small Trading Comm totaled Rp 2,913 billion (2.9% of total IDR 90% Mining loans). Of these loans: WC 88.7% were t
Slide 61: Q3 2005 Loan Detail: Performing Loans
Q3 2005 Loan Detail*: Performing Loans Loan Profile: Q3 Performing Loans (Rp 63,053 bn) Bank Only Rp 63,053 billion (63.0% of total loans) 100% O/S Other in Corporate, Commercial & Small IBRA Synd. Small Business loans were performing in Q3. Oth<5% Export 90% Of these performing loans in Q3: 2 Restr
Slide 62: Limited Restructured Loan Activity in Q3
Limited Restructured Loan Activity in Q3 Restructured Loan Movement 1999 - Q3 ‘05 Loans by Restructuring Type in Q3 2005 Others# IDR bn Write-Offs Repayments Restructuring Balance Maturity Extension 50% Additional Loans 3% LT loans Maturity w/Convertible Extension 10,583 1999 27,423 25,123 29,542 23
Slide 63: Q3 2005 Loan Detail: Restructured Loans
Q3 2005 Loan Detail*: Restructured Loans Loan Profile: Q3 Restructured Loans (Rp 21,546 bn) Bank Only 100% Of the remaining Rp 21,546 billion in Other Small NPL DG restructured Corporate, Commercial & Oth<5% 90% 5 Export Small Business loans in Q3, or 21.5% 90+ of total loans: Comm Constr 80% 53.5
Slide 64: Loan Portfolio Sector Analysis, Q3 2005
Loan Portfolio Sector Analysis, Q3 2005 Mfg-Oth Agri Mfg-F&B 9.9% Mfg-F&B Agri 10.2% Mfg-Chem 9.6% Mfg-Chem Constr Mfg-Oth 11.1% Constr Trading-Oth 9.0% Mfg-Text Trading-Oth Bus Serv 8.9% Mfg-P&P Oth<4% 12.9% Trans Retail 3.9% Mfg-Text Bus Serv 6.1% Retail 5.1% Mfg-Wood 4.3% Mfg-Wood Trans 4.1% Mfg-
Slide 65: Q3 2005 Loan Detail: Corporate Loans
Q3 2005 Loan Detail: Corporate Loans Loan Profile: Q3 Corporate Loans Only (Rp 45,148 bn) Bank Only Rp 45,148 billion in loans were in the 100% Other 61+ O/S New Bal. Corporate portfolio in Q3, or 45.1% of 31-60 Export NPL DG < 30 total loans. Of the Corporate Loans in 90% 5 Oth<5% IBRA Q3: Synd. 80
Slide 66: Q3 2005 Loan Detail: Commercial & Small Business Loans
Q3 2005 Loan Detail: Commercial & Small Business Loans* Loan Profile: Q3 Commercial & Small Loans* Only (Rp 42,098 bn) Bank Only Rp 42,098 billion in loans were in the 100% Other IBRA New Bal. Program Commercial portfolio in Q3, or 42.1% 5 NPL DG Export 61+ Oth<5% of total loans. Of the Commercial &
Slide 67: Q3 2005 Loan Detail: Rupiah Loans
Q3 2005 Loan Detail*: Rupiah Loans Loan Profile: Q3 Loans (Rp 53,193 bn) Bank Only Rp 53,192 billion in loans were Rupiah 100% IBRA New Bal. Other 5 Oth<5% Synd. NPL DG denominated in Q3, or 53.1% of total 61+ Small 90% Trading-Distr Export loans. Of the Rupiah Loans in Q3: 4 Restr NPL NC Trans 3 31
Slide 68: Q3 2005 Loan Detail: Foreign Currency Loans
Q3 2005 Loan Detail*: Foreign Currency Loans Loan Profile: Q3 FX Loans (Rp 34,055 bn) Bank Only Rp 34,055 billion in loans were foreign 100% currency denominated in Q3, or 34.0% 61+ New Bal. 31-60 Export O/S NPL DG of total loans. Of the FX Loans in Q3: 90% 5 Oth<5% Comm < 30 IBRA 59.1% are perfor
Slide 69: Electronic banking channels rapidly expanding
Electronic banking channels rapidly expanding ATM Average Daily Transaction Volume and Value Other Transaction Services 293,874 5,056 263,908 Debit Cards Issued* (000) SMS Subs. (000) 239,554 SMS Trans. (000) Avg Daily Volume (000) Internet Bank. Subs. (000) 225,829 Call Center Trans. (000) Avg Dail
Slide 70: Credit Card business growth has resumed
68 23 191 Sep '05 28 4 199 Aug '05 30 7 Visa Card Monthly Sales by Type of Transaction 216 Jul '05 7 19 190 Jun '05 4 19 19 172 May '05 3 3 170 Apr '05 21 187 Mar '04 4 21 19 166 Feb '04 5 168 Jan '04 7 20 191 Dec '04 7 18 165 Nov '04 8 24 179 Oct '04 9 11 25 172 Sep '04 16 27 162 Aug '04 21 21 170
Slide 71: Credit Card portfolio stable throughout in Q3
Credit Card portfolio stable throughout in Q3 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% 70.7 67.2 13.3% 12.7% 10.7% 45.4 9.1% 9.2% 8.6% 3
Slide 72: Summary of Principal Subsidiaries
Summary of Principal Subsidiaries Bank Syariah Mandiri Mandiri Sekuritas AXA Mandiri • Equity Investment of Rp29.1 billion • Equity Investment of Rp632.5 billion • Equity Investment of Rp707.8 billion • Total Assets Rp 1,090 billion and Annual • Total Assets Rp7,321billion, with total • Total Assets
Slide 73: Bank Syariah Mandiri
Bank Syariah Mandiri Branch Network & Customer Growth Summary Balance Sheet (Rp Billions) 9 Mo. Rp Bn 2003 2004 479 ‘05 Branches Total Assets 3,422 6,870 7,321 Customers (000s) Cash & placement w/ 1,023 796 551 357 BI Current Accounts & Placements w/Other 36 235 212 Banks Securities - Net 76 427 435
Slide 74: Bank Syariah Mandiri
Bank Syariah Mandiri Summary P&L (Rp billions) 2002 2003 2004 9 Mo. ‘05 Total Operating Income 162.7 279.4 584.2 650.3 3rd Party Share on Returns 71.5 148.4 269.2 275.4 Bank's Share in Operating Income 91.3 131.1 315.0 374.8 Other Operating income 35.5 51.9 102.0 71.5 Operating Expenses 84.4 159.9 2
Slide 75: Mandiri Sekuritas
Mandiri Sekuritas Summary Balance Sheet Summary P&L Rp Bn 2003 2004 9 Mo. ‘05 Rp Bn 2003 2004 9 Mo. ‘05 Total Assets 1,079.7 1,435.7 1,790.0 Operating Revenue 102.4 244.0 152.3 Cash & equivalent 82.9 117.4 83.1 Brokerage Commissions 3.9 15.6 18.9 Time deposit 50.0 50.0 - Investment Mgmt Fees 5.1 53.
Slide 76: Bank Mandiri at a Glance
Bank Mandiri at a Glance 74
Slide 77: 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 78: 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 79: Staffing and Distribution Network Growth
77 92 2,562 Q3 '05 6,609 Q3 '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 3,160 2001 ATM-Link Network ATM Network 211 533 2000 Staffing and Distribution Network Growth 2000 513 1999 1999 ATMs New 10.7 21,806 Q3 '05 829 Q3 '05 40 7.0 19,693 2004 789
Slide 80: 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 81: Loan growth, quality and provisioning relative to peers
79 28.8% Lippo 43.0% Mandiri 34.0% BCA 51.0% BNI Ratio of Provisions to NPL 54.7% Mandiri 52.0% Niaga Loan to Deposit Ratio 56.2% BII 73.0% BII 58.3% BNI 116.0% Permata Loan growth, quality and provisioning relative to peers (%) (%) 69.5% Panin 129.0% Danamon 77.1% BRI 149.0% BRI Danamon 158.0% BCA
Slide 82: Asset and liability mix relative to peers
80 7.9% Mandiri 3.6% Lippo 8.8% Lippo 3.8% BCA Yield on Assets (p.a.) 9.0% BII 4.1% BNI Cost of Funds (p.a.) 9.3% BCA 4.2% BII 10.2% Panin 4.5% Mandiri (%) (%) 10.2% BNI 4.7% BRI 10.4% Niaga 4.8% Niaga 10.9% Permata 4.9% Permata 11.6% Danamon 5.3% Danamon 16.4% BRI 5.5% Panin 30.7% Lippo 33.4% Danam
Slide 83: Efficiency measures relative to peers
81 3.0% BRI 41.9% BCA 2.3% Permata 43.6% Danamon 2.2% BII 47.9% BNI 2.0% Lippo Cost/ Income 48.0% Mandiri Cost/Assets *Annualized 1.8% Danamon 48.6% BRI (%)* (%) 1.7% Niaga 64.6% Lippo 1.6% BNI 51.1% Niaga 1.4% BCA 66.9% Panin 1.2% Panin 108.7% BII 1.1% Mandiri 110.3% Permata 137 Lippo 44 Mandiri 15
Slide 84: Measures of scale and returns relative to peers
82 197 Panin 5.4% Mandiri 288 Niaga 15.3% BNI Return on Equity (After Tax) 523 Permata 18.2% Panin 674 BRI 18.5% Permata ATMs 690 Lippo 24.7% Lippo (%) 717 BII 27.4% BCA 804 Danamon 28.5% Niaga 2,272 BNI 28.7% BII 2,562 Mandiri 31.5% Danamon Measures of scale and returns relative to peers 3,447 BCA
Slide 85: 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 86: For Additional Information
88 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) — Q3 2005 Earnings Presentation on 6ix