PT Bank Danamon Indonesia Tbk Class A · IDX:BDMN

PT Bank Danamon Indonesia Tbk Class A — 9M 2005 Earnings Presentation

25 slides from PT Bank Danamon Indonesia Tbk Class A's earnings presentation, Oct 27, 2005

  1. Slide 1: Analysts Briefing First Nine Months 2005 Results

    Analysts Briefing First Nine Months 2005 Results JW Marriot Hotel, Jakarta 27 October 2005 Slide 1

  2. Slide 2: Highlights of September YTD 2005 results

    Highlights of September YTD 2005 results vs. September YTD Slide 2

  3. Slide 3: Agenda

    Agenda • Financial Results • Updates • Question & Answer Slide 3

  4. Slide 4: Income Statements Highlights

    Income Statements Highlights YTD YTD U 1Q 2Q 3Q U Rp. billion Sept. 2004 Sept. 2005 (YoY) 2005 2005 2005 (QoQ) Net Interest Income 2,945 3,473 18% 1,119 1,148 1,206 5% Non-Interest Income 1,004 1,046 4% 350 395 310 (24%) Operating Income 3,949 4,519 14% 1,469 1,543 1,507 (2%) Manpower Costs 749 1,15

  5. Slide 5: Balance Sheets Highlights

    Balance Sheets Highlights YTD YTD U 1Q 2Q 3Q U Rp. billion Sept. 2004 Sept. 2005 (YoY) 2005 2005 2005 (QoQ) Assets & Commitments 59,770 76,158 27% 68,279 74,324 76,158 2% Assets 54,352 65,979 21% 60,458 65,021 65,979 1% Loans 25,980 35,729 38% 30,337 33,434 35,729 7% Government Bonds 18,406 14,798 (

  6. Slide 6: Key Ratios

    Key Ratios YTD YTD U 1Q 2Q 3Q U % Sept. 2004 Sept. 2005 (YoY) 2005 2005 2005 (QoQ) Net Interest Margin a) 8.0 9.0 1.0 9.2 9.1 8.8 (0.3) Non-interest Income / 25.4 23.1 (2.3) 23.8 25.6 20.0 (5.6) Operating Income Cost to Income 40.0 44.7 4.7 43.4 42.7 44.7 2.0 Loan to Deposit 71.9 82.4 10.5 76.4 77.4

  7. Slide 7: Net interest income increases on the back of higher asset yield

    Net interest income increases on the back of higher asset yield Net Interest Income Asset Yield and Cost of Funds Rp. billion % Lending Yield 1,206 1,119 1,148 14.2 14.5 1,073 13.6 13.6 13.8 975 Cost of Funds 5.6 4.6 4.8 5.1 4.3 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 3Q 04 4Q 04 1Q 05 2Q 05 3Q 05 Slide 7

  8. Slide 8: Non-interest income sustained by higher gain on sale of securities and bonds

    Non-interest income sustained by higher gain on sale of marketable securities and government bonds Non-interest Income Rp. billion YTD YTD U Rp. Billion Sept. 2004 Sept. 2005 YoY Recurring Income Recurring Income 676 570 (16%) Non-Recurring Income Credit-related fees 358 313 (13%) 1,046 & commission

  9. Slide 9: Increase in expenses driven by business growth

    Increase in expenses driven by business growth Operating Expenses Rp. billion 32% YoY Expenses Growth 2,024 • 19% DSP expansion 304 • 7 % Adira Finance e DSP • 6% M/ESOP 1,530 13 330 e Adira Finance • (0%) Existing businesses 219 781 631 e Manpower 11% QoQ Expenses Growth • 7% DSP expansion • 1% Adi

  10. Slide 10: Robust loan growth in mass-market sector

    Robust loan growth in mass-market sector Outstanding Loans Growth (YoY) Rp. bn U Rp. trillion Corporate (431) (7%) 35.7 SME & Commercial 3,493 42% 33.4 16 % Consumer 3,928 35% 29.4 30.3 16 % Mass Market 2,760 1,238% 25.9 18 % 22% Total 9,749 38% 24% 34% 35% 35% Breakdown of Consumer Loans 35% As of

  11. Slide 11: Well diversified loan portfolio

    Well diversified loan portfolio Loans by Economic Sector Loans by Tenor As of September 30, 2005 As of September 30, 2005 General Trading & Distribution Manufacturing 1- 3 Years 24% 18% 40% 3 – 5 Years 16% Business Services 7% Transportation 2% > 5 Years 7% Consumer Others < 1 Year 42% 7% 37% Total

  12. Slide 12: Non-performing loans declined due to strong loan recoveries

    Non-performing loans declined due to strong loan recoveries Slide 12

  13. Slide 13: Increase in special mention loans primarily due to consumer finance exposure

    Increase in special mention loans primarily due to growing exposure in consumer finance business Special mention loans are concentrated on DPD 1 – 30 days, representing over two-third of special mention loans Special Mention Loans Aging of Special Mention Loans Rp. billion % Corporate 61 - 90 Days S

  14. Slide 14: Adequate provisions to cover non-performing loans

    Adequate provisions to cover non-performing loans Restructured Loans Loan Loss Provision / NPL Rp. billion % Specific 4.2% eRestructured Loan / General Total Loans 3.6% 2.7% 2.9% 2.5% 140 137 140 132 133 1,123 1,045 976 896 820 116 108 95 96 113 32 37 37 24 24 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Sep-

  15. Slide 15: Exposure to government bonds continues to decline

    Exposure to government bonds continues to decline Government Bond Portfolio Rp. trillion Sept. Sept. U 34% Variable Rate Rp. billion 2004 2005 YoY 30% 30% Fixed Rate Held to maturity 11,809 7,924 (3,885) % of Assets f 25% 22% Available for sale 6,503 6,618 115 18.4 18.0 17.4 Trading 94 257 163 16.0

  16. Slide 16: Deposits growth despite competitive market conditions

    Deposits growth despite competitive market conditions Customer Deposits Rp. trillion Time Deposits ■ Deposits grew Rp. 8.2 trillion or 23% to Current Account & Savings Rp. 44.9 trillion as at September 30, 44.7 2005. 43.8 40.8 40.1 36.4 ■ LDR stood at 82% level as of September 2005, up from 72% a ye

  17. Slide 17: Decline in Capital Adequacy Ratio due to loan expansion

    Decline in Capital Adequacy Ratio due to loan expansion Capital Adequacy Ratio* Sept. Sept. U % Rp. billion 2004 2005 YoY 6.2 Tier 1 Capital 6,519 7,876 21% 30.2 (0.9) Tier 2 Capital 3,623 4,159 15% 24.4 Investments 879 1,164 32% (11.1) Total Capital after 9,261 10,871 17% Investments Risk Weighted

  18. Slide 18: Agenda

    Agenda • Financial Results • Updates • Question & Answer Slide 18

  19. Slide 19: Danamon Simpan Pinjam (DSP)

    Danamon Simpan Pinjam (DSP) Number of DSP Units 752 733 509 ƒ DSP opened 19 new units in 3Q 2005, bringing total units to 752 264 as of September 30, 2005. 115 6 28 ƒ Up to September 2005, DSP has recruited and trained 6,893 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 people. ƒ As of September

  20. Slide 20: Continued strong performance by Adira Finance

    Continued strong performance by Adira Finance YTD YTD U 1Q 2Q 3Q U Rp. billion Sept. 2004 Sept. 2005 YoY 2005 2005 2005 QoQ New Financing (unit) 393,904 556,335 41% 167,739 192,567 196,029 2% New Financing Volume 4,415 6,822 55% 1,998 2,415 2,409 (0%) Total Revenue 836 1,287 54% 406 433 448 3% Net I

  21. Slide 21: New motorcycle financing remains the main contributor of growth

    New motorcycle financing remains the main contributor of growth Breakdown of Receivables Market Share of New Motorcycle (YTD) % Total Receivables % of Units New MC Used MC New Car Used Car Others 14 12.5 1% 1% 1% 1% 1% 11.7 8% 9% 12 8% 9% 10% 10.9 11.0 10.6 10% 13% 14% 16% 10 5% 18% 6% 6% 7% 7% 8 6

  22. Slide 22: Trend of over due receivables and roll rates were relatively stable

    Trend of over due receivables and roll rates were relatively stable Trend of Overdue Receivables Receivables Roll Rates % of Total Receivables % Total Receivables 31-60 days (LHS) 61-90 days (LHS) Current to (01-30) (01-30) to (31-60) > 91 days (LHS) Total Overdue (RHS) (61-90) to (91-120) 6% 24% 70

  23. Slide 23: Net Credit Loss increased due to higher losses on repossessed assets

    Net Credit Loss increased due to higher losses on repossessed assets Adira Finance has implemented a new policy to write off receivables that pass due over 180 days since June 2005 Loss on Repossessed Assets & Turn Monthly Net Credit Losses (NCL) Over Ratio % of Average Receivables Loss on repossess

  24. Slide 24: Shareholding Structure

    Shareholding Structure The Government sold its remaining 10.5% stake in August 2005 and as a result public shareholding now holds 30.4% of Danamon’s shares % Jun. 2005 Sept. 2005 Change Asia Financial (Indonesia) Pte. Ltd. 65.8 69.6 3.8 The government of Indonesia q.q. IBRA 10.5 - (10.5) Public 23.7

  25. Slide 25: Agenda: Question & Answer

    Agenda • Financial Results • Updates • Question & Answer Slide 25

PT Bank Danamon Indonesia — 9M 2005 Earnings Presentation on 6ix