Pt Bank Central Asia Tbk · IDX:BBCA
Pt Bank Central Asia Tbk — 9M 2016 Earnings Presentation
39 slides from Pt Bank Central Asia Tbk's earnings presentation, Oct 26, 2016
Slide 1: Maintaining a Solid Position
Corporate Presentation Maintaining a Solid Position Analysts’ Meeting Jan – Sep 2016 Results PT Bank Central Asia Tbk Jakarta, 26th October 2016
Slide 2: Table of contents
Table of contents page page Macro Environment Financial Review Macroeconomic environment 4 Balance sheet summary 17 Banking sector highlights – August 2016 5 Income statement summary 18 Financial ratios 19 Performance Overview Diversified earning assets composition 20 Breakdown of earning assets yie
Slide 3: Agenda
Agenda Macro Environment Performance Overview Financial Review 3
Slide 4: Macroeconomic environment
Macroeconomic environment Inflation and BI Rates (%) 20% 18.38 Inflation • Bank Indonesia forecast 2016 economic growth 16% 14.55 of 4.9%-5.3% 12.75 12.14 12% 10.75 BI Rate – Continuing uncertainty and low growth in the 8% 8.75 9.00 9.50 7.92 (12-month term structure) 7.75 8.36 7.50 7.75 7.50 8.33 6
Slide 5: Banking sector highlights – August 2016
Banking sector highlights – August 2016 Banking Sector Financial Summary (Rp trillion) • Modest banking sector performance YTD YOY Aug-15 Dec-15 Aug-16 in August 2016 Change Change Total Assets 6,011 6,129 6,383 4.1% 6.2% − Total sector loans at Rp4,146tln (+6.8% / Rp265 tln YoY) Total Loans 3,881 4
Slide 6: Agenda
Agenda Macro Environment Performance Overview Financial Review 6
Slide 7: BCA key financial highlights
BCA key financial highlights YOY (Rp billion) Sep-15 Sep-16 Change • Outstanding loans grew Rp21.3tln or 5.8% YoY to Rp386.1tln Total Assets 584,444 660,145 13.0% Outstanding Loans 364,846 386,112 5.8% − Gross NPL ratio stood at 1.5% Third Party Funds 462,252 493,075 6.7% Net Interest Income 26,273
Slide 8: Consumer loans supported overall lending performance
Consumer loans supported overall lending performance Loans (Rp billion) • 5.8% YoY loan growth 387,643 387,042 386,112 373,732 364,846 346,563 347,101 335,576 − High corporate loan repayment YTD 312,290 317,191 321,284 330,677 298,955 • Consumer lending drove overall loan growth through 3Q16 Sep-13
Slide 9: Mortgage market leader
Mortgage market leader Total Mortgage Portfolio (Bank only, Rp trillion) • “Fix-and-cap” mortgage product remains 62.2 popular 61.7 (+7.3% YoY) 59.9 − 3-year 7.99% p.a fixed interest rate with 59.4 58.0 additional 3-year adjustable interest rate 56.9 capped at 8.99% p.a. Mortgages up 7.3% YoY 54.7 5
Slide 10: Maintaining solid loan loss provisions
Maintaining solid loan loss provisions Loan Quality (Bank only, Rp billion) • Active monitoring of loan portfolio Sep-15 Dec-15 Jun-16 Sep-16 Current 355,235 378,930 376,022 372,258 • NPL increase but expected to remain Special Mention 7,008 6,277 5,825 8,366 Performing Loans 362,243 385,207 381,847
Slide 11: A leading transaction banking business
A leading transaction banking business • BCA’s 15 million interconnected customer accounts benefit from the Bank’s growing and diversified transaction banking platform • Expanding transaction banking platform supported by 1,204 branches; 17,057 ATMs and growing EDC penetration nationwide • Continued
Slide 12: Solid funding base
Solid funding base Third Party Funds (Rp billion) • Strong liquidity with secondary reserves 490,558 493,075 462,252 473,666 470,392 totaling Rp79.0tln or 16.0% of third party 454,981 109,282 107,636 funds 109,071 108,466 113,405 108,668 120,373 126,215 114,235 114,703 115,653 117,780 − Loan to Fund
Slide 13: Maintained healthy NIM
Maintained healthy NIM • Net Interest Margin (NIM) remained healthy NIM, Yield and Cost of Funds (Bank only) in September 2016 16% - Reduction in lending rates for corporate, 12.67 Yield 12% 10.66 9.93 commercial & SME segments in 9M16 9.10 9.78 8.29 8.03 7.79 8.61 8.58 8% 7.37 7.12 7.49 6.61 6.88 -
Slide 14: Sustained profitability
Sustained profitability Profitability (Rp billion) • Combined Net Interest Income and 39,673 Non Interest Income grew 15.2% YoY to 34,441 29,953 Rp39.7tln 26,273 22,138 18,375 18,375 15,127 13,368 13,368 − Net Interest Income increased 14.0% YoY to Rp30.0tln while Non Interest Income 8,168 9,720 gre
Slide 15: Quality growth through enhanced relationship
Quality growth through enhanced relationship • Expand transaction banking presence • Promote a well balanced and diversified loan portfolio Growth • Strengthen subsidiaries’ businesses • Deepen customer relationships • Maintain and enhance the quality of: − Loan portfolio Growth Quality − Banking op
Slide 16: Agenda
Agenda Macro Environment Performance Overview Financial Review 16
Slide 17: Balance sheet summary
Balance sheet summary (Rp billion) YOY Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Change Total Assets 571,643 584,444 594,373 603,427 626,176 660,145 13.0% 1) Secondary Reserves – gross 77,286 80,114 67,473 88,399 73,533 79,030 -1.4% SBI & Other Placement in BI 63,872 74,212 60,487 82,636 68,117 73,3
Slide 18: Income statement summary
Income statement summary (Rp billion) 4Q-15 1Q-16 2Q-16 3Q-16 9M-15 9M-16 YOY Change Net Interest Income 9,619 9,768 9,990 10,195 26,273 29,953 14.0% Non Interest Income 3,820 3,060 3,310 3,350 8,168 9,720 19.0% Fees and commissions 2,223 2,226 2,305 2,349 6,233 6,880 10.4% Gain on spot & derivative
Slide 19: Financial ratios
Financial ratios (Bank only, %) Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 ROA 3.7 3.9 3.8 3.6 3.9 4.0 ROE 21.7 22.2 21.9 19.3 20.5 20.9 NIM 6.6 6.6 6.7 7.0 7.0 6.9 CAR (credit and market risk) 22.3 22.4 21.5 23.6 23.8 25.2 CAR (credit, market and operational risk) 19.0 19.2 18.7 20.0 20.3 21.5 LFR 7
Slide 20: Diversified earning assets composition
Diversified earning assets composition Interest Income Contribution Earning Assets Composition (as of 30 September 2016) Secondary Government 100% 2.7% 2.7% 2.7% 2.3% 2.6% 2.6% Reserves Bonds 13.4% 12.1% 90% Marketable 80% Securities & Others 70% Loans & 7.2% Consumer Financing 60% 67.3% 83.6% 84.3%
Slide 21: Breakdown of earning assets yield
Breakdown of earning assets yield Sep-15 Dec-15 Sep-16 Bank Only Balance Yield Balance Yield Balance Yield (Rp billion) (%) (Rp billion) (%) (Rp billion) (%) Secondary Reserves 78,333 5.09% 65,433 4.99% 77,510 4.71% (-1.1% YoY) Marketable Securities 15,668 5.66% 14,790 5.52% 23,988 5.35% (+53.1% YoY
Slide 22: Balanced loan portfolio
Balanced loan portfolio Loan Portfolio (Bank only, Rp billion) Loans Breakdown (Bank only, Rp billion) YTD YoY Consumer Sep-15 Dec-15 Sep-16 Change Change Commercial & SME Corporate Corporate 126,075 141,261 133,305 -5.6% 5.7% 388,008 387,088 386,246 364,921 373,776 Commercial & SME 140,387 146,237
Slide 23: Moderate consumer loan growth
Moderate consumer loan growth Consumer Loans (Bank only, Rp billion) Consumer Loans Credit Cards (Bank only + vehicle loans booked by BCA Subsidiaries, Rp billion) Vehicles YTD YoY Sep-15 Dec-15 Sep-16 Change Change Mortgage 105,156 106,430 100,510 102,057 98,459 96,365 9.1% Mortgage 57,951 59,415 6
Slide 24: Diversified industry concentration
Diversified industry concentration Top Ten Industry Sectors in Corporate, Commercial and SME Sectors Sep-15 Dec-15 Sep-16 1. Building Material and Other Construction Related 7.3% 7.1% 7.8% 2. Distributor, Wholesaler and Retailer 6.2% 6.1% 7.0% 3. Plantation and Agriculture 6.8% 6.7% 6.9% 4. Automoti
Slide 25: NPL maintained at a low level
NPL maintained at a low level NPL by Loan Segments (%) NPL by Consumer Loans (%) Sep-14 Sep-14 Sep-15 Sep-15 Sep-16 Sep-16 4,4% 4,1% 3,5% 2.3% 1.2% 1,6% 0.9% 0.8% 0.8% 0.9% 0.7% 1,3% 1,4% 0.4% 0,7% 0,7% 0,7% 0,7% 0.1% 0,5% 0,5% Corporate Commercial & SME Consumer Mortgage 2 Wheeler 4 Wheeler Credit
Slide 26: Active management of third party funds
Active management of third party funds Third Party Funds & Cost of Funds (Bank only, Rp billion) Interest Rate Adjustments* 2.50% 2.39% 2.31% 14.0% 2.06% 2.01% 1.98% 13.00 12.00 107,640 109,286 12.0% 113,409 108,672 108,471 109,075 1 Month Rupiah Time Deposits 10.0% 9.50 9.25 126,251 120,426 8.50 11
Slide 27: Cost efficiency ratio
Cost efficiency ratio Quarterly Operating Income & Expense (Rp billion) and YTD Cost Efficiency Ratio (%) 50.4% 49.6% 46.9% 46.5% 46.6% 44.3% Operating Income Operating Expense YTD Cost Efficiency Ratio (Bank only) 13,439 12,828 13,300 13,545 11,663 11,815 5,652 6,184 5,507 5,889 5,462 4,813 2Q-15 3
Slide 28: Thank you
Thank you www.bca.co.id
Slide 29: Appendix
Appendix BCA
Slide 30: Government bonds profile
Government bonds profile Government Bond Maturity (Bank only, Rp billion) Nominal Value as of 30 September 2016 25,600 Fixed Rate [Rp 68,018 billion (98.3%)] Variable Rate [Rp 1,170 billion (1.7%)] 17,192 9,392 9,190 5,127 1,070 595 - 100 - 286 - 418 - 13 86 - 72 Maturity - - 39 - 6 - - 2 - - 2016 2
Slide 31: BCA maintains 7 subsidiaries in 5 business lines
BCA maintains 7 subsidiaries in 5 business lines Business lines Subsidiaries Business overview • One of the largest 4-wheeler financing companies in Indonesia (acquired: 2001) • Offering attractive products with competitive interest rates through a joint financing scheme with BCA • Maintaining a qua
Slide 32: BCA credit ratings
BCA credit ratings Fitch Ratings Moody’s Published on April 2016 Published on August 2016 Description Rating Description Rating Outlook Stable Outlook Stable Bank Deposits Baa3 / P-3 Local long term rating AAA (idn) Baseline Credit Assessment baa3 Issuer default – long term rating BBB- Adjusted Base
Slide 33: BCA share performance
BCA share performance BCA Share Performance vs IDX (28 December 2007 to 24 October 2016) BCA Shareholding Structure (as of 30 September 2016) BCA IDX 18.000 5.850 Number of Ownership BCA 16.000 IDX (RHS) 5.350 Shares Percentage 14.000 4.850 4.350 12.000 FarIndo Investments (Mauritius) Ltd 3.850 10.0
Slide 34: BCA winning awards - 2016
BCA winning awards - 2016 AsiaMoney AsiaMoney Bisnis Indonesia Brand Finance & SWA Contact Center World Magazine Asiamoney Summer Awards Dinner 2016 BCA – Best Domestic Provider Bisnis Indonesia Banking Indonesia’s 100 Most Valuable Corporate Governance Poll Award 2016 Contact Center World Awards of
Slide 35: BCA winning awards - 2016
BCA winning awards - 2016 Forbes Forbes Indonesia Magazine Frontier Consulting Group Frontier Consulting Group Indonesia Contact Center & Marketing Magazine & Tempo Media Association (ICCA) Top Brand Award 2016 In recognition of outstanding achievements in building the Top Brand for the categories:
Slide 36: BCA winning awards - 2016
BCA winning awards - 2016 Kontan Magazine & GML Marketing Magazine Markplus.Inc Markplus.Inc Markplus.Inc & Nikkei BP Performance Consulting Consulting. Inc. Social Media & Digital Marketing Award 2016 • Great Performing Brand in Social Media for credit cards Stellar Workplace Award • Great Performi
Slide 37: BCA winning awards - 2016
BCA winning awards - 2016 Property & Bank Magazine “Properti Indonesia” Service Excellence Service Excellence Magazine Service Excellence Magazine Magazine Magazine & Carre CCSL & Carre – CCSL & Carre – CCSL Contact Center Service Excellence Award 2016 Good Service Performance: • BCA KlikPay, KlikBC
Slide 38: BCA winning awards - 2016
BCA winning awards - 2016 SWA Magazine & SWA Magazine & SWA Magazine & SWA Magazine & MARS Telkomsel University of Indonesia NBO Group Stern Value Management Economic Faculty Management Institution Indonesia Best Brand Award (IBBA) – Best Brand Platinum 2016 SWA 100: Indonesia’s Best Best Brand for
Slide 39: BCA winning awards - 2016
BCA winning awards - 2016 The Asian Banker Warta Ekonomi Magazine Warta Ekonomi Magazine Warta Ekonomi Magazine Indonesia Most Admired Company 2016 Indonesia Digital Innovation 5th Social Business Innovation BCA – Indonesia’s Most Admired Strongest Banks 2016 by Balance Award 2016 Award for Banking