4Q11 English Final

(1)

On Going Structural Changes

4Q11 Analyst Meeting

(2)

macroeconomic

GDP Growth BI Rate

60

Consumer Confidence Index

Strong Economic Growth

_{With CCI at All Time High}

0

1mth JIBOR CPI

5

USDIDR 10yr Govt Bond

(3)

banking sector

Loans Growth Deposit Growth

On 4Q11, banking sector total loans grew 23.4% YoY, while

total deposit grew 20.8%. Investment loans was the fastest

growth loans segment with 33.3% YoY, followed by 24.4%

growth on consumer loans, and 21.5% on working capital

loans. Banks profitability increase to 3.0% along with LDR

which inched up to 79%. The sector NPL fell to 2.2% vs. 2.6%

on 4Q10.

4Q10 4Q11 YoY (%)

Total Loans 1784 2200 23.4

Total Deposit 2304 2784 20.8

LDR 77 79 1.6

(4)

result highlight

Consolidated 4Q10 4Q11 YoY (%)

Loans 23,070 28,223 22.3

Deposit 32,341 39,227 21.3

LDR 71.3% 72.0% 0.7

NIM 7.3 6.8 -0.5

NPL 1.86 1.21 -0.65

(5)

ratios

4Q10 1Q11 2Q11 3Q11 4Q11

Tier – 1 22.6 19.6 19.4 18.9 18.4

CAR Ratio 22.8 19.6 19.2 18.8 18.4

Gross NPL 1.86 2.38 2.37 2.56 1.21

Net NPL 0.34 0.48 0.67 0.77 0.41

Coverage Ratio 140 128 119 114 159

NIM 7.3 6.9 7.0 6.8 6.8

Cost to Income Ratio 46.6 45.8 50.1 49.7 51.1

ROAA 2.2 2.2 2.0 1.9 1.9

ROAE 21.8 21.3 18.2 18.0 19.0

LDR 71 70 71 67 72

Net Open Position 2.15 2.14 1.97 1.85 0.15

(6)

income statement

Income Statement

(Rp bn) FY10 FY11 YoY (%) 1Q11 2Q11 3Q11 4Q11 QoQ (%)

Interest Income 4,894 5977 22.1 1,369 1,448 1,558 1,601 2.8

Interest Expense (2,255) (2915) 29.3 (666) (686) (770) (794) 3.1

Net Interest Income 2,640 3,061 15.9 703 762 788 808 2.5

Other Operating

Income 306 240 -21.5 49 59 43 89 7.0

Operating Expense (1,374) (1,686) 22.7 (320) (430) (409) (526) 28.6

PPOP 1,572 1,616 2.8 432 391 422 371 -12.1

Provisioning

Expense (381) (341) -10.5 (111) (12) (97) (121) 2.5

Non Operating

Income (Expense) 29 45 55.2 30 (2) 11 5 -54.6

Profit Before Tax 1,220 1,320 8.2 351 377 336 255 -24.1

Net Profit 890 962 8.1 260 284 251 168 -33.1

(7)

balance sheet

Balance Sheet Highlight

(Rp bn)

4Q10 1Q11 2Q11 3Q11 4Q11 YoY (%) QoQ (%)

Cash 1,375 1,151 1,211 1,291 1,726 25.5 33.7

Current Account with

Bank Indonesia 2,719 3,141 3,013 3,471 3,674 35.1 5.9

Secondary Reserves 15,161 17,262 17,906 20,542 19,289 27.2 -6.1

Loans-net 23,070 23,938 25,876 27,027 28,223 22.3 1.0

Fixed Asset-net 549 549 544 560 560 2 0

Other Asset 571 626 776 928 977 71.1 5.28

Total Asset 43,446 46,667 49,326 53,819 54,449 25.3 1.2

Total Third Party

Fund 32,341 34,026 36,255 40,409 39,227 19.4 -3.9

Marketable

Securities Issued 1,746 3,741 3,741 3,742 2,743 57.1 -26.7

Fund Borrowings 13 12 12 12 174 13,384 14,500

Others 5,500 5,267 5,638 6,054 8,889 61.6 46.8

Total Liabilities 38,450 41,989 44,358 48,599 49,062 27.6 0.9

(8)

loans breakdown (bank only)

Segment

(Rp bn) 4Q10 4Q11

YoY (%)

Micro Loans 2,363 2,946 24.6

Consumer Loans 16,051 19,644 22.4

Commercial Loans 3,652 4,409 20.7

1.9 2.2 2.4 2.5

Consumer Loans Micro Loans Commercial Loans

Total 22,066 26,998 22.3

Currency

(Rp bn) 4Q10 4Q11

(9)

deposits breakdown (bank only)

Deposits Breakdown

(Rp bn) 4Q10 4Q11

YoY (%)

Current Account 7,590 11,093 46.1

Saving Account 4,730 6,186 30.8

Time Deposit 18,871 19,977 5.9

4.4

Time Deposit Savings Account Current Account

TOTAL 31,191 37,255 19.4

CASA Ratio (%) 39 46

Currency

(Rp bn) 4Q10 4Q11

YoY (%)

IDR 30,865 36,951 19.7

Forex 326 304 -6.4

18.4 19.8 18.9 19.1 20.9 23.5

2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

(R

p

tr

(10)

sharia

business performance

Loans 4Q10 4Q11 YoY

(%)

Murabahah – (Trading) 766.2 806.6 5.3

Ijarah 194.0 56.7 -70.8

Musyarakah 279.5 321.6 15.1

Mudharabah 199.5 183.0 -8.3

Qardh – (Bridging) 135.2 391.4 189.5

Ijarah – (Pawning) 28.9 6.8 -76.5

1.6 1.6

Total Financing Total Deposit

Total Financing 1603.4 1766.2 10.2

Funding 4Q10 4Q11 YoY

(%)

Wadiah Current Account 131.7 175.0 32.9

Mudharabah Current

Account 20.4 32.6 59.8

Wadiah Savings Account 39.6 71.9 81.6

Mudharabah Savings

Account 148.2 167.9 13.3

Mudharabah Time Deposit 981.9 1771.1 80.4

Total Funding 1321.8 2218.5 67.8

1.3

4Q10 1Q11 2Q11 3Q11 4Q11

(R

p

tr

(11)

earning asset

4Q10 4Q11

Earning Asset 38,246 47,591

Non Earning Asset 5,200 6,858

NIM 7.3 6.8

Average Earning Asset Net Interest Income NIM

Earning Asset Composition

(12)

assets quality

Gross NPL

(Bank only) 4Q10 4Q11

Total Write Off

(Rp bn)

Micro Loans 2.45 2.63 95

Consumer

Loans 0.18 0.17 24

Commercial

Loans 8.75 4.79 277

570

730 729 789

Absolute NPL Total Provisioning Coverage

Total Loans 1.84 1.21 396

388

(13)

assets quality (bank only)

NPL Movement

330

Balance Sheet Provision Movement

312

Beginning Charge to P&L

Write Off Ending Balance

Beginning NPL Formation

(14)

new loans approval process

Consumer Loans

Branch Head

Sub Branch

Branch

Sub Branch

Scoring Branch

Debtors Sub Branch

Debtors Scoring

Credit Proposal Credit Approval

Group Head / Regional

Office

Scoring

Consumer

Division Risk Reviewer

Regional Office

Division

Max. Rp40bn

BOD

>Rp40bn Scoring

(15)

new loans approval process

Micro Loans

Waroeng bjb/ Sub Branch

/Branch

Cabang/Waroeng A KCP/Waroeng B

Waroeng C

Scoring

Credit Proposal Credit Approval

Micro

BOD

Division

BOD Max. Rp 40bn

(16)

new loans approval process

Commercial Group

Sub Branch

Branch

Sub Branch

Commercial

Branch Manager

(Risk Reviewer) Max. Rp500mn

Branch Debtors Sub Branch

Debtors

Commercial Loans

Credit Proposal Credit Approval Credit Risk Reviewer

Commercial

Center Risk Reviewer

Commercial

BOD

Regional Office

Max. Rp2bn

BOD

>Rp40bn

Division

Max. Rp40bn

Approval Appeal Head Office

(17)

distribution network

bankbjb Distribution Network per Sept 2011

Categories 4Q11 Expansion Plan in 2012

Main Branches 51 5

Sub Branches 203 96

Cash Outlets 55 85

Payment Points 90 23

Waroengbjb 0 429

Mobile Cash 7 4

Priority Banking Services 11 0

Sub Total 417 642

ATM 528 472

)*bjb ATM can accessed by more than 167.000 ATM Bersama, ATM Prima/BCA, and Prima Debet Points

Main Branches Outside West Java & Banten are located in:

Jkt - Arthaloka Jkt – Hasyim Ashari Jkt – Mangga Dua Jkt - Rawamangun

Jkt – Kebayoran Baru

Batam Medan Denpasar Semarang

(18)

active asset liability management

Asset Yield (LHS) Cost of Fund (RHS)

Bank

bjb

asset yield fall by 23bps QoQ mainly due to falling BI

Rate and interbank market which now stands at ~3.75%

average. We are manage this falling yield by cutting the special

rate time deposit to 7.75 as of 4Q11 while paying bonds worth

Rp1tr (11.25% coupon rate). This policy has impacted our Cost

of Fund which fall by 20bps QoQ. We are planning to pay

Bonds VI worth Rp350bn (12% coupon rate) on July 2012.

Deposits Breakdown (Rp

bn)

4Q10 1Q11 2Q11 3Q11 4Q11

Average

Earning Asset 38,246 41,200 43,783 47,568 47,591

Asset Yield 13.5 13.3 13.5 13.5 13.3

Average Interest Bearing

Liabilities

2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

(%

)

(%

(19)

operating expenses

76 76 77 78 79 80 79

48 49 ₄₇ ₄₆ 50 50 51

40 45 50 55 60 65 70 75 80 85 90

(%

)

Operating Income/Opex Cost to Income Ratio

Peaking up cost are due to network expansion and new hire

as we are establishing the micro loans infrastructure. We

expect the cost to peak on 2012 as naturally expansion and

hiring cost will come earlier before our new business start

generating interest income. We expect the Cost to Income

Ratio to reach 51% - 54% this year.

Opex Breakdown

(Rp bn) 4Q10 4Q11

YoY

(%) 1Q11 2Q11 3Q11 4Q11

QoQ (%)

Salary (697) (763) 9.5 (132) (216) (163) (252) 54.6

G&A (556) (785) 32.2 (141) (187) (210) (247) 17.6

(20)

capital efficient business

Risk Weighted

Asset

4Q10 1Q11 2Q11 3Q11 4Q11

Credit Risk 15,753 16,815 18,102 19,215 19,940

Market Risk 15,999 16,976 18,260 19,449 20,207

Operational

Bank

bjb

has a capital efficient business model as our

consumer loans risk weight is low at 50%, while our plan

to expand our presence in micro loans also has a low

risk weight (75%) compared to commercial loans (100%

risk weight). Hence, we believe we could sustain our

capital generation/capital utilization going forward.

Operational

Risk 18,415 21,477 22,761 23,950 24,708

RWA/Total

Asset 42% 46% 46% 45% 45%

tier-1 4,278 4,274 4,415 4,539 4,552

tier -2 (71) (59) (43) (31) (16)

Total Capital 4,207 4,215 4,372 4,508 4,536

CAR Ratio 22.8% 19.6% 19.2% 18.8% 18.4%

CAR Analysis Risk Weighting

Addition to RWA/ Rp1tr Net Expansion

Net Impact to CAR

Micro Loans 75% Rp750bn -0.54%

Commercial Loans 100% Rp1tr -0.72%

(21)

growing customer based

Details 4Q10 4Q11 YoY Growth

(%)

Government Related 22.9% 23.5% 25.1

Retail Clients 21.7% 24.9% 40.2

Corporate Clients 55.4% 51.6 13.9

Customer Deposit Breakdown

Details 4Q10 4Q11 Growth YoY %

Government Related 16,075 15.965 (110) -0.7

Retail Clients 1,108,082 1,373,793 265,711 24.0

Corporate Clients 169,000 170,237 1,237 0.7

Total 1,293,157 1,559,995 266,838 20.6

(22)

performances by

area

Consolidated Breakdown Deposits Loans Number of Branches

Sharia 2,219 (5.7%) 1,732 (6.1%) 7

Conventional 37,008 (94.3%) 26,491 (93.9%) 51

Bank

bjb

Business Segment (Consolidated)

Geographical Breakdown Deposits Loans Number of Branches

West Java 59.0% 77.8% 30

Banten 14.1% 14.8% 7

Jakarta 24.4% 5.6% 5

Others 2.5% 1.8% 9

(23)

2012

target summary

Target

Range

Loans Growth

22% - 25%

Deposit Growth

15% - 18%

ROAA

1.8% - 2.0%

ROAE

18% - 20%

NIM

6.8% - 7.2%

Cost of Fund

6.4% - 6.7%

Cost to Income Ratio

51% - 54%

Gross NPL

1.2% - 1.7%

Credit Cost

1.0% - 1.4%

(24)

road map

A Strong Sustainable Growth and Profitable National Bank

2011-2012

2013-2014

2015

Building/Establishment

New Infrastructures

Leading in Service

As One of the Big Banks

A National Bank

Leading in Service and

Performance

Strategy

Strategy Strategy

Leading in Service and Performance National Bank

Developing HR

Competence, IT

Infrastructure,

and organization for :

o

Micro & SME

Financing

o

Consumer &

Commercial Banking

o

Treasury &

International

Matching the 10 Biggest

Banks in areas :

o

HR competence/ IT

o

Services

o

Bank bjb `incorporated`

(25)

b

usiness

a

nd

s

trategic

a

lliances

A Strong Sustainable Growth and Profitable National Bank

SME / Micro

Financing

Institutional & Commercial

Banking

Consumer Loans

Consumer Deposit

Treasury and International

Subsidiary Companies

oDeepening Our

Presence on West oImproving Loans oStrengthening Our oRebranding oProviding Trade oAcquisition of

Sustainable Profit and

Growth

Presence on West Java and Banten Area

oDeveloping Waroeng BJB

oMSME Financial Intitution Strategic Alliances and Acquisition

Process

oRisk Management and Debtor Rating System

Position on Civil Servant Loans

oCentralized and Electronic Loans Infrastructure

oMulti-finance Company Acquisition

oRebranding , Network Expansion and Service Excellence

oAggressive Sales and Promotion

oPricing Strategy

oProviding Trade Finance, Remittances, and Dealing Services for Customers and Investors.

oStrategic Alliances with coresponden Bank Remittance Agencies

Insurance and Securities Companies to Provide All-in-One Banking Services

Risk Management

and Compliance

Improving HR Competencies

Through Extensive Training

Program & Professional Hire

Developing IT

Infrastructure and

e-banking Services

Network Expansion

and Services

Improvement

Enhance

Communication

with Investors

(26)

new

credit management initiatives

Credit Risk

In effort to manage our asset quality going forward, we establish Credit Policy Committee and Credit Risk Reviewer Division along with existing Asset Liability Committee (ALCO). These three body will synergize to maintain bankbjbcompetitiveness on loans market while maintain the underwriting policy.

Credit Policy Committee

- Loans terms and condition - Loans approval process - Loans approval authority

Credit Policy

Committee

Credit Risk

Reviewer

- Loans approval authority - Loans limit

ALCO

- Fund pricing - Loans pricing

- Balance sheet structure management - Cost of fund management

Credit Risk Reviewer

-Four eyes principle

(27)

information technology initiative

IT Strategic Plan 2012

• IT Strategic Plan 2012 – 2015 Development

Our IT Division will develop new IT Strategic Plan which is inline with bank bjbstrategy going forward. The new strategic plan will act as a guidance for IT policies which include the

business risk management.

• Internet & SMS Banking

Bank bjbis going to launch its internet and SMS banking services on 2012. Both are on process to get BI approval.

• Data Center Re-Layout

•

• Server & Storage Consolidation (system-i/system-p)

• Chip Based ATM Card Migration

Along with the new BI Circular Letter no. 13/22/DASP on Chip Technology Implementation and PIN Usage for ATM/Debit Card, IT Division will start establishing team on migration effort. The migration grace period will end on 2015.

• Core Banking Upgrade

Along with our business growing demand for IT support, IT division will upgrade the core banking system through server consolidation and maximization.

• Misys Cash Portal (MCP) & Misys Trade Portal Project

(28)

Risk Management Committee

Bank Indonesia released Circular Letter no.13/24/DPNP on 25th_{October 2011 which require banks to asses its own risk} profile through Risk Based Bank Rating Approach (RBBR) both individually and on consolidated basis. The new risk management initiatives include several factor: Risk Profile, Good Corporate Governance, Earnings, and Capital.

To comply with this new regulation, bank bjbestablished

Credit Risk

Market Risk Compliance

Risk

enterprise risk management initiatives

To comply with this new regulation, bank bjbestablished Risk Management Committee (RMC) to assess and establish risk management policy on bank wide basis. RMC assess the risk profile of the bank and define 8 (eight) risk category based on operational activity of the bank.

RMC also establish assessment methodology, and risk mitigation plans for each risk category.

Risk Profile

Liquidity Risk

Operational Risk

Legal Risk Strategic

Risk Reputational

(29)

risk profile

Risk Type Risk Weight 2Q11 3Q11 4Q11

Credit 22% Low to Moderate Low to Moderate Low

Market 15% Low Low Low

Liquidity 18% Low Low Low to Moderate

Operational 15% Low to Moderate Low to Moderate Low to Moderate

Legal 10% Low to Moderate Low to Moderate Low to Moderate

Reputational 10% Low Low Low

Strategic 5% Low Low Low

(30)

human capital

Positions 4Q10 1Q11 2Q11 3Q11 4Q11

Board of Commissioners 5 5 5 5 5

Directors 5 4 4 6 6

Top Management 20 19 20 19 20

Middle Management 120 137 150 130 160

First Line Management 544 720 744 780 824

Staff 1350 1107 1,202 1,164 1,097

Employee in Pension

Preparation 14 13 10 9 9

Total Permanent 2,058 2,005 2,146 2,113 2,121

Non Permanent 2,982 3,245 3,417 3,566 3,887

(31)

GCG initiatives

Gratifications Controlling Unit

Better GCG Implementation

bank

bjb

is the first banks who is signing MoU with KPK on gratification and wealth reporting for structural employee.

Policies

Gratification Control

Procedure

Code of Conduct

Whistle Blowing

System

“LHKPN” Reporting

Gratifications

Controlling Unit

Establishment

Gratifications Controlling Unit

(32)

awards

• Bandung Service Excellence Award, The Best Bandung Service Excellence

Champion, Category: Conventional Banking

• Investor Awards, Best Listed Company, The Best Performance IPO

• Corporate Image Awards 2011, Indonesia’s Most Admired Company, Category

Regional Government Bank

• Infobank Awards, Bloomberg Businessweek, “Very Good” on 2010 Financial

Performances

2011

2010

Champion, Category: Conventional Banking

• Investor Award, Best CEO, Category: Regional Bank

• Infobank Platinum Award for BPD (1

st

_{Best ATM, 1}

st

_{Best Security, 2}

nd

_{Best Phone}

Handling, 3

rd

_{Overall performance)}

• Tempo Award, The Best performance Award of Indonesian Bank (Regional Dev.

Bank Award)

• Bisnis Indonesia, The Best Regional Development Bank

• Bisnis Indonesia, Efficiency Award

(33)

ownership

Ownership Structure (%)

Founder (A Series) 75.00

West Java Provincial Government 38,26 West Java Municipal Governments 23,61 Banten Provincial Government 5,37

West Java Provincial Government West Java Municipal Government Banten Provincial Government Banten Municipal Government Public (B Series)

Banten Municipal Governments 7,76

Public (B Series) 25,00

Local Retail 8.76 Local Institution 11.32

Foreign Retail 0.03 Foreign Institution 4.89

38.26

23.61 5.37

7.76

(34)

board of commissioners

from left to right :

Klemi Subiyantoro Independent Commissioner Previously: Independent Commissioner of bank bjb

(2008 - 2011)

Achmad Baraba Independent Commissioner Previously: Independent Commissioner of bank bjb (2007 - 2011)

Agus Ruswendi President Commissioner Previously: Previously: President Director - bank bjb

(2007-2011)

Muhadi Commissioner Previously: Commissioner of bank bjb

(2008-2011)

Yayat Sutaryat Independent Commissioner Previously: Independent Commissioner of Citra Bangun Selaras

(35)

board of

director

Bien Subiantoro President Director Previously: Senior Advisor Bank Mandiri, Managing Director of BNI, 2003 – 2010

from left to right :

Shahyohan Johnny Azis Director Previously: Division Head of Network

and Services BNI, Division Head of International Banking BNI

Zaenal Aripin Director Director Previously: Division Head of Strategic

Planning bank bjb, Head of Change Management Office bank bjb

Arie Yulianto Director Previously: Division Head of Micro Banking bank bjb, Division Head of Legal, Compliance and Risk Management bank bjb

(36)

share prices performance

Volume Price

Investor Relations Group

Menara bank bjb7th_Floor Jl. Naripan 12 – 14 Bandung 40111

0

+6222 4234868 ext 7140/7141

ir@bankbjb.co.id

Contact Person:

Hanel Topada Group Head

htopada@bankbjb.co.id

Irwan Riswandi Senior Manager

iriswandi@bankbjb.co.id

Muhammad As’adi Budiman Manager

(37)