PT Bank Danamon Indonesia Tbk Class A · IDX:BDMN
PT Bank Danamon Indonesia Tbk Class A — H1 2006 Earnings Presentation
32 slides from PT Bank Danamon Indonesia Tbk Class A's earnings presentation, Jul 25, 2006
Slide 1: 1st Half 2006 Results Analyst Briefing
1st Half 2006 Results Analyst Briefing J.W. Marriot Hotel Jakarta 25 July 2006 Disclaimer: This report has been prepared by P.T. Bank Danamon Indonesia Tbk indepentdently and is circulated for the purpose of general information only. It is not intended to the specific person who may receive this rep
Slide 2: Highlights of the second quarter 2006 results
Highlights of the second quarter 2006 results • Loan growth of 6% to Rp. 39 trillion • Deposits growth of 7% to Rp. 52 trillion • NPAT growth of 23% to Rp. 307 billion Slide 2
Slide 3: Agenda
Agenda • Financial Results • Asset Quality • Business Updates • Appendixes Slide 3
Slide 4: Income Statement Highlights
Income Statement Highlights Rp. billion 1Q06 2Q06 UQoQ 1H05 1H06 UYoY Net Interest Income 1,225 1,393 14% 2,267 2,618 15% Normalized Fee Income 313 338 8% 558 651 17% Normalized Op. Income 1,539 1,730 12% 2,825 3,269 16% Operating Expenses (777) (813) 5% (1,327) (1,590) 20% Pre-Provision Op. Profit
Slide 5: Balance Sheet Highlights
Balance Sheet Highlights Rp. billion 1Q06 2Q06 UQoQ 1H05 1H06 UYoY Assets & Commitments 83,916 85,327 2% 74,324 85,327 15% Assets 70,758 74,531 5% 65,021 74,531 15% Loans (gross) 1 36,584 38,625 6% 34,290 38,625 13% Government Bonds 16,569 17,153 4% 16,011 17,153 7% Deposits 48,324 51,727 7% 44,786
Slide 6: Key Ratios
Key Ratios % 1Q06 2Q06 UQoQ 1H05 1H06 UYoY Net Interest Margin 1 8.4 9.2 0.8 9.1 8.8 (0.3) Normalized Cost / Income 50.3 46.0 (4.3) 47.0 48.8 1.8 Loan / Deposit 78.5 75.6 (2.9) 77.4 75.6 (1.8) Capital Adequacy 2 26.3 22.9 (3.4) 23.5 22.9 (0.6) Normalized ROAA 1.6 1.8 0.2 2.2 1.7 (0.5) Normalized ROA
Slide 7: Interest margin increased to 9.2% due to growth in high yielding loans
Interest margin increased to 9.2% due to growth in high yielding loans Net Interest Income Rp. billion Earning Assets Yield (%) SEMM 16.5 16.7 Adira 15.5 13.8 13.9 14.1 Others 13.1 11.9 12.2 2,618 8.3 8.9 8.4 5.3 5.6 6.1 2,267 4.6 4.5 4.8 14% Cost of Funds (%) 5% 26% 32% Net Interest Margin (%) 8.9
Slide 8: Normalized Fee Income
Normalized Fee Income Increased in fee income was largely driven by credit related fees, cash management and Adira Insurance Breakdown of Fee Income Rp. billion Non Credit Related Rp. billion 1H05 1H06 UYoY Credit Related 651 558 Credit related fees 191 274 44% Cash management 124 148 19% 377 Treasu
Slide 9: Operating expenses
Operating expenses Breakdown of Operating Expenses Rp. billion 1,590 226 DSP / Mass Market Growth Rp. bn UYoY 1,327 42 Adira Insurance & Quantum DSP Expansion 32 17% 194 319 0 Adira Finance Adira Finance 72 29% 247 Adira Insurance & 42 NM Quantum Manpower 698 IT 20 26% 659 E/MSOP 13 27% Business as
Slide 10: Loan growth was driven by mass market, SME and commercial segments
Loan growth was driven by mass market, SME and commercial segments Outstanding Loans Rp. billion 38,625 36,516 36,757 36,584 34,290 14% 14% 13% 16% Growth Rp. bn UYoY 16% 13% 13% 14% Corporate 70 1% 13% 13% 21% 21% 20% Commercial 549 12% 20% 20% SME 913 13% 40% Consumer 370 2% 43% 42% 43% 44% Mass M
Slide 11: Increased in motorcycle loans made up for the decline in housing and car loans
Increased in motorcycle loans made up for the decline in housing and car loans Consumer Loans Rp. billion 15,734 15,686 15,495 15,125 15,267 4% 5% 5% 5% 5% 18% 18% 15% 14% Growth Rp. bn UYoY 19% Credit Card 99 14% 23% 24% 24% 24% 25% Housing (389) (13%) Car (204) (5%) 54% 56% 58% Motorcycle 864 9% 5
Slide 12: Government bonds portfolio
Government bonds portfolio Government Bonds Rp. billion The average duration of government Variable Rate bonds holdings has been reduced to Fixed Rate 1.6 years as of June 30, 2006 from Bonds as % of Assets 25% 1.9 years a year earlier 23% 23% 22% 21% 17,153 Rp. billion 1H05 1H06 UYoY 16,569 16,011
Slide 13: Growth in funding despite competitive market conditions
Growth in funding despite competitive market conditions Total Deposits grew by 15% YoY to Rp. 51,727 billion in June 2006 Total Interest Bearing Funding Rp. billion 72% 64% 65% eLoan / Total Funding 62% 62% 61,806 • Senior bonds 57,864 56,394 • Subordinated debts 53,737 16% 51,047 • Repo 16% 16% • B
Slide 14: Capital Adequacy Ratio at 22.9% in June 2006
Capital Adequacy Ratio at 22.9% in June 2006 Movement of Capital Adequacy Ratio % 1.4 Rp. billion 1H05 1H06 UYoY 23.5 (0.2) 22.9 Tier 1 Capital 7,501 8,251 10% Tier 2 Capital 3,888 3,758 (3%) (1.8) Investments 1,214 1,109 (9%) Total Capital after 10,174 10,900 7% Investments Risk Weighted 43,336 47,
Slide 15: Agenda
Agenda • Financial Results • Asset Quality • Business Updates • Appendixes Slide 15
Slide 16: Diversified loan portfolio across economic sectors
Diversified loan portfolio across economic sectors Loans by Economic Sector Loans by Interest Rate As of June 30, 2006 As of June 30, 2006 General Trading & Manufacturing Variable Rate Distribution 19% 55% 28% Business Services 6% Transportation 2% Consumer Others 40% Fixed Rate 5% 45% Total Loans R
Slide 17: Loan portfolio by tenor and currency
Loan portfolio by tenor and currency Loans by Tenor Loans by Currency As of June 30, 2006 As of June 30, 2006 1 to 3 Years 41% Rupiah 88% 3 to 5 Years 13% > 5 Years 6% < 1 Years 41% Foreign Currency 12% Total Loans Rp. 38,625 billion Slide 17
Slide 18: Loan's Collectibility
Loan’s Collectibility % Total 2.7% 2.2% 2.6% 3.4% 3.6% 8.6% 9.1% 10.8% 10.5% 10.3% Non-Performing 88.7% Special Mention 88.7% 86.0% 86.1% 86.1% Current Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Breakdown of Non-Performing Loans Rp. billion 1,337 1,223 929 905 40% 55% 786 20% 50% Collectibility 5 37% 28% Co
Slide 19: Unfavorable operating environment impacted NPL in several businesses
Unfavorable operating environment impacted NPL in several businesses Non-Performing Loans (NPL) Breakdown NPL by Segments Rp. billion Rp. billion NPL Ratio f 3.6% 1,337 3.4% 2.7% 2.6% 2.2% 1,337 27% 1,223 905 Corporate 8% 929 Commercial 905 786 28% SME 48% Mass Market 6% Consumer - Adira 11% 21% Con
Slide 20: Adequate provisions to cover non-performing loans
Adequate provisions to cover non-performing loans Cost of credit increased mainly in the mass market, consumer and corporate segments Normalized Cost Of Credit Loan Loss Provision / NPL 1 Rp. billion % Other Businesses Specific Mass Market General Adira 726 176 143 146 131 266 115 93 364 73 85 135 8
Slide 21: Increase in special mention loans is due to growing mass market and consumer auto financing
Increase in special mention loans is due to growing mass market and consumer auto financing businesses Special mention loans concentrate on DPD 1 – 30 days Special Mention Loans Aging of Special Mention Loans Rp. billion % Total Corporate 61 - 90 Days SME/Commercial 31 - 60 Days 1 - 30 Days Consumer
Slide 22: Agenda
Agenda • Financial Results • Asset Quality • Business Updates • Appendixes Slide 22
Slide 23: Danamon Simpan Pinjam (DSP)
Danamon Simpan Pinjam (DSP) Number of DSP Units An additional 43 units of DSP Consumer Mass Market 752 739 729 734 SEMM were opened in 1H06, Self-Employed Mass Market 733 bringing a total 661 units 509 Loans grew by Rp. 982 billion or 264 27% in 1H 2006 to Rp 4,633 115 28 billion Jun-04 Sep-04 D
Slide 24: Consumer auto financing business with Adira Finance
Consumer auto financing business with Adira Finance Rp. billion 1Q06 2Q06 UQoQ 1H05 1H06 UYoY New Financing Units 134,024 159,039 19% 360,306 293,063 (19%) New Financing Volume 1,513 2,018 33% 4,413 3,531 (20%) O/S Receivables 9,919 10,124 2% 9,064 10,124 12% Interest Income 691 701 1% 1,090 1,392 2
Slide 25: Higher losses on repossessed assets resulted in higher net credit losses
Higher losses on repossessed assets resulted in higher net credit losses Repossessed Assets Loss on repo. assets 37% Rp. billion 35% 35% 34% 33% 31% 31% 30% 30% 29% 24% 24% Repo. assets as % receivables 21% 2.3% 2.2% 2.2% 2.0% 2.0% 2.0% 2.0% 1.9% 1.9% 1.8% 1.8% 1.7% 1.6% 216 207 201 203 204 198 195
Slide 26: Non-performing loans and loan write-off of automotive consumer financing business
Non-performing loans and loan write-off of automotive consumer financing business Non-Performing Loans Rp. billion Write-off as a % receivables 4.1% 3.8% 3.4% 3.5% 3.2% 2.7% 2.7% 3.0% 3.0% 2.1% 2.2% 2.1% 2.4% 1.8% Non-performing loans ratio 1.7% 1.7% 1.7% 1.6% 1.6% 1.6% 1.6% 1.6% 1.5% 1.5% 1.4% 184
Slide 27: Latest Updates
Latest Updates • Danamon signed an agreement with IFC to obtain rupiah denominated loan equivalent to US$ 150 million loans on Structured 15 May 2006 Funding • Adira Finance concluded its Rp 750 billion rupiah bond issuance in June 2006. • Adira Finance is in the final stage of obtaining US$ 30 mill
Slide 28: AGMS on May 2006 has approved the composition of Board of Commissioner and Board of Director
AGMS on May 2006 has approved the composition members of Board of Commissioner and Board of Director President Commissioner : Ng Kee Choe Vice President Commissioner : J.B. Kristiadi P Independent Commissioner : Milan Robert Shuster The Board of Independent Commissioner : Harry Arief S. Sukadis Comm
Slide 29: Agenda
Agenda • Financial Results • Asset Quality • Business Updates • Appendixes Slide 29
Slide 30: Share Price performance
Share Price performance Daily share price and trading volume Shareholding Structure As of June 30, 2006 Share Price Volume Asia Financial Public Rupiah In millions Indonesia 30.5% 7,000 70 69.5% 6,000 60 5,000 50 4,000 40 3,000 30 2,000 20 Asia Financial (Indonesia) 1,000 10 Asia Financial (Indonesi
Slide 31: Credit Ratings
Credit Ratings Rating Agencies Rating / Outlook Standard & Poor’s Long-term / Short-term Local Currency BB- / Stable / B Long-term / Short-term Foreign Currency BB- / Stable / B Subordinated Debt B / Stable Long-term / Short-term Bank Deposit B2 / Stable / Not Prime Moodys Bank Financial Strength D-
Slide 32: Thank You
Thank You Investor Relations Bank Danamon Menara Bank Danamon, 6th Floor Jl. Prof. Dr. Satrio Kav. E4 No.6 Mega Kuningan, Jakarta 12950 Phone: +62 21 5799 1001-03 Fax: +62 21 5799 1445 www.danamon.co.id
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