10 28 2010 Q3 2010 Analysts Meeting AUDITED Final

(1)

PT

Bank

Mandiri

(Persero)

Tbk

Q3

2010

Audited

Results Presentation

(2)

Bank

Mandiri

Presentation

Contents

Results Overview Page #



2010 Financial Highlights 3



SBU Performance 4‐5



Impact of significant events including PSAK 50/55 6



Balance Sheet Overview 7



Loan Growth & LDR 8‐9



Net Interest Marginsg 10



Strategy Overview 11‐12



Deposit Franchise Development 13‐16



Wholesale Lending and Fees 17‐18



Highg ‐Yield Lendingg Activities 19‐22



NPL Movement, Asset Quality & Provisioning 23‐26



Progress on Selected Debtors 27



Enhancing Risk Management 28



Overhead Expense DetailsOverhead Expense Details 2929



Leveraging SBU Alliances & Subsidiaries 30‐31



Operating Profit & Summary P&L 32‐33



CAR, ROE, PAT 34



2010 Guidance 35

1

2010 Guidance 35

Operating Performance Highlights 37‐44

(3)

Bank

Mandiri

continues

on

its

Path

to

become

Indonesia’s

Most

Admired

Financial

Institution

# of Accounts

•Deposits10 7 mn

# of new Accounts

• Deposit 2.9 Mn

# of Outlets

•1,296 branches

Deposits 10.7 mn

•Loans 910,000

p

• Loans 361,000

1,296 branches

•935 Micro

branches •5,495 ATMS

e‐Channel Trx

•230 mn in Q3

25% G h

# of Cards Issued

•Credit 1.9 mn Cash_•_6,995 Management_Customers

•25% Growth _•_Debit_8.1_mn

•Prepaid 560,000 •

701,577Trx (Sep

2010)

Retails Loans (1)

•Rp 55.81 Tn

•27% of Loans Subsidiaries_{•Total Rp 701bn} Income

Alliances

•Total Card From

2

27% of Loans _•Total_{Rp 701bn}

•11% of Tot EAT Alliances 105,427 cards

(4)

Key

Financial

Highlights

Bank

Mandiri’s 9

‐

Month

2010

Performance

continued

to

demonstrate

marked

improvements

in

several

key

indicators:

9M

‘09

9M

‘10



%

Loans

Rp188.3

tn

Rp231.9

tn

23.2%

Net

NPL Ratio

Gross NPL Ratio

0.68%

3.80%

0.75%

2.67%

10.3%

(42.3%)

Low

Cost

Funds

Ratio

[Low Cost Funds (Rp)]

57.2%

Rp169.1 tn

57.0%

Rp183.1 tn

(0.4%)

8.3%

NIM

5 11%

5 28%

3 3%

NIM

5.11%

5.28%

3.3%

Efficiency

Ratio

39.74%

39.36%

(0.9%)

Earnings

After

Tax

4,685

bn

6,389

bn

36.4%

(5)

Maintaining

momentum

for

growth

Y‐o‐Y  Y‐o‐Y



Loans

by

SBU*

(Rp Tn)

Deposits

by

Product

– Bank

Only

(Rp Tn)

24 5%

159 5tn 198 7tn

Total Total 280 0tn 295 9t 6 4%

21.4 16 2 18.1 16.5 14.9 11.2 11.2 10.5 260 280 300

320 _FX_Time _Rp_Time

FX Demand Rp Demand

FX Savings Rp Savings

28.6

17 1 17.7 19.3 20.5 5.1 5.4 5.6 6.0 6.5 160 170 180 190 200

Micro Small Cons

Comm Int'l Corp

(36.4%) 28.4% 26.1% 32 3% 24.5% 159.5tn 198.7tn

Total Total 280.0tn _{295.9tn 6.4%}

18.0

22 0 21 7

73.4 95.7

91.9 97.9 101.5

108.5

113.7118.3 114.4

15.7 12.6 15.9 16.2 160 180 200 220 240 53.1 57.5

19.3 19.7 20.6 21.7

23.6 24.7 26.7

28.6

14.8 14.1 15.5 16.3

17.1 17.7

2.7

4.4 4.6 4.8 5.1 110 120 130 140 150 12.7% 32.3% 31.9%

4.7 7.4 _8.2 8.3 8.7

9.7

9.9 10.8

11.6

33 6

50.4 51.8 43.0 45.4 43.7 51.8

45.8 45.0 37.7

11.4 9.1

9.8 15.1 _19.5 17.5 20.3

21.2 22.0 21.7

93.2 80.5 80 100 120 140 160

4.4 4.4 4.4

4.2 4.5 0.2

0.4 1.3

31.5

41.6 40.6 41.9

43.6 49.1 49.1

10.7 11.1 14.2 7.6 8.9 13.1 1.7 1.9 50 60 70 80 90 100 _6.7% (13.6)% (68.4%) 33.7% 45.2 57.6

81.5 82.2 77.2 82.8 87.3 96.8 89.5 94.7 100.0

3.5 4.1 8.2 30.1 33.6 0 20 40 60 80 29.9 36.1 44.8

62.0 64.1 65.8 68.8 69.8 74.5

80.7 84.2 1.0 0.9 2.8 25.9 24.4 0 10 20 30 40 50 14.6% 22.4%

Q4'05 Q4'06 Q4'07 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10

0

Q4'05 Q4'06 Q4'07 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10

(6)

Pendapatan

Yang

Berimbang

Dari

Seluruh

Unit

Bisnis

NII (Net Interest Margin)

(Rp bn) % of Total

Fee Income

(Rp bn) % of Total

Asset Spread

(Rp bn)

Liabilities Spread

(Rp bn)

17.6% 20.9%

27.2%

11.2% 6.0%

16.9%

452

1,189 2,074

1,299

1,512 610

29.5%

5.2%

11.9%

13.3%

846

3,075

-331

735

5.5% 41.7%

30.9%

33.2% 50.2%

39.6%

240 741

780

3,749 -35

3,204

8.3%

12.4%

6.7%

9.3%

787

1,625

39

6

5

*MRB : Excluding Business Banking ^^ Treasury: ’08 inc Int Branches, exc SAM ’10 inc SAM & Cayman

(7)

Impact

of

Significant

Events

including

PSAK

50/55

Implementation

*

No.

Description

Amount

(in billion)

9M

‐

2010

Q3

‐

2010

1

Reclassify

and

Amortize

Directly

Attributable Fees**

295.44

72.41

2

Cash

Collection

of

written

off

loans

classified

as

1 006 82 **

406 18

2

other

income

(fees)***

1,006.82

406.18

3

Un

‐

winding

interest

from

provision

&

recognized

as

income

****

413.35

132.93

4

Promotional

expenses

not

attributed

to

product

no

longer

part

of

interest

expense**

50.50

23.47

5

Consolidation

of

AMFS into

Bank

Mandiri

(total

assets)*****

7,885

*In this presentation, we did not restate our past financial statements for reporting periods prior to implementation of PSAK 50/55 (SFAS 50 and SFAS 55) on January 1 2010

SFAS 55) on January 1, 2010. **Just reclassified, no P&L Impact

***Raising fee income & income recognized doing the period

(8)

Strong

and

Liquid

Balance

Sheet,

Q3

2010

Assets

Amount

%

of

Assets

Liabilities

Amount

%

of

Liab.

Cash

8,605

2.11

Current

Account

62,767

15.37%

(Rp Bn, Consolidated)

,

SBI

&

Placement

with

BI

19,230

4.71%

Savings

120,332

29.47%

Placement

with

other

banks

23,851

5.84%

Time

Deposits

138,100

33.82%

Government

Bonds

82,181

20.13%

Marketable

Securities

13,492

3.30%

Total

Deposits

321,199

78.67%

Loans

(Gross)

231,924

56.80%

Provisions

of

Loans

(11,714)

(2.87%)

Securities

Issued

1,024

0.25%

Reverse

Repo

8,383

2.05%

Deposits

from

other

banks

8,761

2.15%

Other

Provisions

(3,559)

( ,

)

(0.87%)

(

)

Borrowings

g

5,199

1.27%

Other

Advances

3,971

0.97%

Other

Interest

Bearing

Liabilities

6,244

1.53%

Investments

6,820

1.67%

Non

Interest

Bearing

Liabilities

26,832

6.57%

f

d

6 00

1

%

E

i

39 027

9 56%

Deferred

Tax

Assets

6,007

1.47%

Equity

39,027

9.56%

Other

Assets

19,095

4.68%

(9)

LDR

rising

to

71.7%

on

loan

growth

of

6.4%…

65.0%

62 2%

66.3% 71.8%

Loans (Rp tn) LDR (%)

76.4 78.8 79.7

82.0 82.7 82.9

88.7 92.8 Corporate Commercial Small Micro

Quarterly Loan Data – Consolidated Quarterly Loan Segment Details – Bank Only

35.4% 42.5%

53.7% 57.2% 59.2% 63.2% 62.2%

62.8% 64.1%

40.2 _38.2 42.3 44.7

53.6 55.4

68.7

35.7

32 6 35.5

41.2 43.8 42.6 43.6 45.3

50.6 50.4 54.2

58.6 Consumer

43.0 48.3 65.4 75.9 94.4 106.9 117.7 138.5 135.5 149.6 162.8 174.5 175.2 181.6 188.3 198.5 201.9 218.0 231.9

26.3% 22.2

31.4 32.6

7.6 10.2

13.1 13.8 15.1 14.4 15.8

16.6 17.4 18.0

19.7

20.7

1.7 2.7 2.9 4.0 4.4 4.6 4.8 5.1

5.4 5.6 6.0 6.5

1.5 3.7

8.5 10.7 11.1

15.8 18.7 19.3 19.7 20.6

21.7 23.6 24.8

26.7 28.6 Q4 '00 Q4 '01 Q4 '02 Q4 '03 Q4 '04 Q4 '05 Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '02 Q4 '03 Q4 '04 Q4 '05 Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10

By Segment (Bank only)

Loans (Rp tn)

Y‐O‐Y Growth (%)

% of Portfolio

7.9% 6.40%

15.7% _20.0%

23.15% Corporate 92.83 13.15% 44.78%

Commercial 58.62 29.28% 28.28%

Small 19.34 24.70% 9.33%

Micro 6 51 28 41% 3 14%

8 3.7%

QoQ Growth (%) YoY Growth (%)

Micro 6.51 28.41% 3.14%

Consumer 30.01 32.26% 14.48%

(10)

Rp22.1tn

in

loans

disbursed

in

Q3

2010

22 05

7.16

2.22

0.49

0.16

Loan Movement (Rp tn) – Bank Only Loan Disbursement by Segment (Rp tn) – Bank Only

1 96

1.73

3.35

195.29

22.05

207.31

6.65

1.96

22 05

22.05

8.35

Corporate Commercial Small Micro Cons Fin Total

9

(11)

Q3

NIM

of

6.0%

on

higher

Yield

on

Assets

13.00%

Yield on Assets Cost of Funds

Quarterly Net Interest Margins* Quarterly Yields & Costs by Currency*

18 3% 20% IDR 13.00% 11.01% 9.4% 9.8% 18.3% 11.9% 12.8% 13.1% 12.7% 10.58% 10% 15% 8.91% 9.1% 7.31% 7.2% 7.3% 8.3% 6.6% 6.2% 6.3% 4.4% 0%

5% 5.1% _4.3%

NIM _4.83% 5.48% 4.8% 4.0% 3 9% 11.8% 10% 15% 0%

Avg Loan Yield Avg Bond Yield Avg 1‐Mo. SBI Avg COF

FX

2.4% 3.9% 2.8% 3.7% 4.3% 3.6% 4.9% 4.7% 5.1% 5.5% 6.0% 5.4% 5.5% 5.3% 4.9% 5.3% 5.1% 5.2% 6.0%

3.9% 7.3% 6.6% 6.8% 5.8% 5.2%_5.0% 0 3% 2.31%

3.39% _3.03% 2.1%

(12)

Committed

to

Improving

Shareholder

Value

Reduce Cost of Funds Improve Assets Yield

Business Strategy

_{Improve Assets Yield}

Diversify into Fee Income

Business

Strategy

Reduce Provision/Loan Improve Cost Efficiency

Competitive,

sustainable

returns,

with

Support

Strategy

above

‐

average

rates

of

growth

 Leverage on cash generator

(wholesale) to accelerate growth

 Diversity into fee income

Strategic

Alliances

(13)

Strategy

focus

on

3

areas

of

highest

potential:

Wholesale

Transactions,

Retail

Payments

&

High

Yield

Loans

To

be

Indonesia's

most

admired

&

i

fi

i l i tit ti

&

progressive

financial

institution

#1 in Indonesia in market capitalization by 2014

Strengthen leadership in Be the retail deposit bank Build #1 or #2 positions

wholesale transaction banking

Comprehensive financing &

transaction solutions

in key retail financing segments

Win in

mortgage, personal loan & cards

of choice

Win through differentiated

t i

transaction solutions

Holistic relationship approach for leading Indonesian institutions

loan & cards

Become a major player in micro‐banking

Champion Syariah in Indonesia

customer experience and targeted

propositions

Deploy innovative payment solutions payment solutions

Breaking down organization'silos' to provide integrated solutions to customers and alliances programs

Upgrading key infrastructure(branches, IT, operations, risk, PMS) to enable differentiated customer experience

(14)

Q3

Deposits

rise

6.4%

Y

‐

o

‐

Y

Rp Savings Deposits FX Savings Deposits

Rp Demand Deposits FX Demand Deposits

Rp Time Deposits FX Time Deposits

Deposit Analysis – Bank Only

15% Rp DD Rp Savings

Rp TD 1 Mo. SBIs

Average Quarterly Deposit Costs (%)

23 1%

32.9%_31.4%

44.5% 45.3%

62.1%

57.8% 57.5% 57.1%

57.8%

Low‐Cost Deposits (%)

300

11.4%

9.9%

9.3% 9.5% 8 7%

8.1% 7.2%_6.5% 6.5%6.9% 11.9%

10.4%

8.2% 8.0% 8.3% 9.2% 10.9% 9.1% 7.4% 10% 23.1%

9 9 101

108.5 113. 7 118.3 _114.4 15.9 21.4 16.2 18.116.5 14.9

11.211.210.5

220 240 260 280 300 4.2%

3.5% 3.3% 3.5% 3.1% 2.5% 4.8%

4.7% 3.6%

3.2%

3.0% 2.9%3.3% _2.8%2.5% 6.9% 6.8% 6.3% 7.4% 8.7% 6.6% 6.5%6.4% 6.2% 5%

5 5₁ 4₅ 43

51.8

45. 45.0 37.7

9.815.1_19.517.520.3

18.0

21.222.021.7

1

0 10 80

66.

5

93.2 _85.7 80.5

73.4

9

5.7 _91.9 97.9 1.5 7

16.5 21.5 23.420.6 17.311.6 15.7 13.412.6 120 140 160 180

200 3.5% 3.0%

2.5% 2.5%_2.2%2.8%

3.8% _3.4%2.7% 2.6%

2.3% 2.1% 2.2%

0%

6%

FX DD FX TD

1 1 2 2 4 5 4 4 5 8 8 7 8 8 9 8 9 10

3.5 3.9 4.1

4.7 7.4 8.2 8.3 8.7 9.7

9.910.811.6

1

4

31.

1

31.2 24.8

28.8 28.0 30.1 29.5

33.6

5

0.4 1.8 43.0 5_.4 3.7 8

9.111.911.4 7.7 9.1

97.1

87.8

0

6.9 00.7 .5 5

40 60 80 100 120 2.4% 0.8%0 5% 2.1%2.2%2.0% 2 4% 1.5%1.6%1.8% 1.1%0.9% 2.6% 1.7% 1.1% 4.0%4.2%3.9% 2.6%2.9%2.8% 3.7%3.9% 3.3% 3.0% 1.9%

0 3%0 5% 2%

4% 6%

1

4.3 18.0 22.1 29.6 0.64 52.0 45.2 46.6 57.6 81.5 82.2 77.2 82.8 7.38 96.8 89.5 94.7 00.0

(15)

Building

a

strong

savings

deposit

franchise…

Savings Deposits (Rp tn) As % of Total Deposits

National Share of Savings Deposits (%)

Savings Deposit Growth Transaction channel growth

73 2 77.6 Other

Payment

37 7%

g p ( )

29 3 39.1 55.0

84.7 97.4

106.6116.7

131.4 129.9 136.5143.2

29 8 37.4 49.6

55.8 61.6

63.2 67.2

73.0 71.9 73.2 Transfer

Withdrawal / Inquiry Avg ATM Daily Vol (000)

30.6%

29.2% 34.6%

32.8%33.4%33.7% _34.5%35.5% 34.1%

34.9%

37.7%

492.1 607.5 677.0 853.4 1,043.4 1,100.5 1,158.9 1,230.6 1,315.4 1,293.3 1,321.8 1,380.5

19.6 29.3 30.8 29.8 16.2% 22.8% 22.7%

11 6%12.8%

16.9%17.5% 16.0%17.2% 18.5%18.0%_17.3% 17.8% 17.9%17.6%17.3%17.3%17.1% 3 165 2,7802,822 2,9763,335 3,454

Quarterly Call Center Trans. (000) Quarterly SMS Trans. (000)

17.96 11.0%11.7%22.12 29.59 40.50 52.00 45.20 57.60 81.54 89.61 85.39 91.11 95.95 106.45 99.38 105.50 111.59

11.6% 15.3% 3 072 6,98 8 11,57 5 16,97 4 22,32 8 25,81 9 33,50 2 39,56 9 42,54 6 44,51 2 47,70 5 51,75 1 1 016 1,086 1,722 2,988 3,0092,955 3,165 Q4 '00 Q4 '01 Q4 '02 Q4 '03 Q4 '04 Q4 '05 Q4 '06 Q4 '07 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10

Q2'10 Q3'10 1,0693,072

8 5 4 8 9 2 9 6 2 5 1

27 6791,016

(16)

…through

enhanced

transaction

capabilities

Quarterly Transaction Volume (Mn) 141.9 150.0 150 ATM Branch

SMS Banking 95.5

97.1 106.8 110 10,006 10,000 11,000 Debit Cards

Quarterly Transaction Value (Rp tn) Quarterly Users (000s)

99.8 110 1 115.0 122.9 100 125 SMS Banking Internet Banking 70.1 77.1 87.792.7 70 90 7,629 8,828 9,950 7 565 7,834 8,0598,116 8,000 9,000 67.870.0 77.9 88.8 110.1 75 100 40 7 49.1 57.7 64.7 50 70 5,024 5,752 6,642 7,202 7,565 5,480 6,040 6,219 6,552 5 000 6,000 7,000 35.136.236.638.5 42.1 41.4 _41.7 41.9 47.7 51.8 50 31.935.5 40.7 30 ATM

SMS Banking 2,413

2,989 3,652 4,355 4,793 3,000 4,000 5,000 40.6 41.7

8.3 11.612.217.019.8 22.325.8

33.5

6 1 12.0

26.6 28.3

25

0.3 0.4 0.5 0.7 1.0 1.8

1.3 1.8 2.4

2.6 2.7

0.6 0.9 1.6 2.2

3.6 3.84.0 5.9 7.8 8.7

9.9

10

Q Q Q Q Q Q Q Q Q Q

SMS Banking Internet Banking 1,523 1,897 2,413 705849 9881,1651,239 1,2531,304 1,000 2,000 15

0.8 1.3 1.7 2.4

3.4 5.56.1

0 Q1 '06 Q3 '06 Q1 '07 Q3 '07 Q1 '08 Q3 '08 Q1 '09 Q3 '09 Q1 '10 Q3 '10 (10) 1

'06 3 '06 1 '07 3 '07 1 '08 '08 3 1 '09 3 '09 1 '10 3 '10

358 469564

705 0 Q1 '06 Q3 '06 Q1 '07 Q3 '07 Q1 '08 Q3 '08 Q1 '09 Q3 '09 Q1 '10 Q3'10

(17)

…and

innovative

payment

solutions

Pre‐Paid Card Volume (000s) 313.0 315.0 353.0 335 360 1,030.0 1,078.0 1,184.0 989 0 1,200 Indomaret e‐Toll Gaz Pre‐Paid Transaction Volume (000s) Cash Management Users 225 0 261.0 293.0 235 260 285 310 Indomaret e‐Toll Gaz 890.5 989.0 800 1,000 Gaz 148.8 225.0

150 0154.0 163.0 160 185 210 235 494.3 588.1606.0 520.5 600 6,153 6,995 90.2 148.8 98.0 111.0 132.0 150.0 85 110 135 160 379.5 286.0 400 4,066 38.9 57.7 29.335.7 58.0

14.7 14.7 14.7

34.0 35.0 36.0 39.4 43.0

10 35 60 103.198.0 206.0 108.0 154.0

2.3 1.5 1.2 30.5 1.0 2.7 3.6 5.5

0 200

745

2,414

(15) Apr_‐

09 May ‐ 09 Jun ‐ 09 Jul ‐ 09 Aug ‐ 09 Sep ‐ 09 Oct ‐ 09 Nov ‐ 09 Dec ‐ 09 Jan ‐ 10 Feb ‐ 10 Mar ‐ 10 10 ‐ Apr Mei 10 Jun 10 Jul 10 Agt 10 Sept 10 0 Apr ‐ 09 May ‐ 09 Jun ‐ 09 Jul ‐ 09 Aug ‐ 09 Sep ‐ 09 Oct ‐ 09 Nov ‐ 09 Dec ‐ 09 Jan ‐ 10 Feb ‐ 10 Mar ‐ 10 Apr ‐ 10 Mei ‐ 10 Jun ‐ 10 Jul ‐ 10 Agt ‐ 10 Sep ‐

10 ₂₀₀₆ ₂₀₀₇ ₂₀₀₈ _{2009 9M}_'10*

• Decline through March 2010 due to Data

(18)

Diversifying

our

strength

in

Wholesale

lending…

Breakdown of Net Expansion in Corporate Lending Q3 ’09 – Q3 ’10 (Total Rp10.79 tn)

3 073 4,929

Oil & G Plantations

%

51.2% 45 3%

Breakdown of Net Expansion in Commercial Lending Q3 ’09 – Q3 ’10 (Total Rp13.28 tn)

2 098 2,727

T d Di Bus Serv

% 43.6% 52 9% 1,472 2,139 2,654 3,073 Utilities Agri‐Oth Mfg‐F&B

Oil & Gas 45.3%

17.6% 2488.3%

61.9% 1,204

1,262 1,641 2,098

Mfg‐F&B Plantations Mfg‐Chem

Trad‐Distr 52.9%

46.3% 28.0% 44.1% 760 866 1,115 1,345

Mfg‐Metal Mfg‐RawM Bus Serv

Trading 30.5%

19.1% 92.1%

76.8% 722

965 1,112 1,178

Mfg‐Oth Housing Mfg‐Metal

Mass Trans 44.0%

96.9% 363.1% 10.6% (711) (544) 164 666

Mining ‐Oth Mfg‐Oth Soc Serv

Roads & Bridge _90.1%

40.6% ‐6.2%

‐46.1% 280

306 389 684

Utilities Trad‐Oth Agri‐Oth

Mfg‐RawM 86.7%

51.1% 8.8% 82.5% (1,649) (1,553) (991) (756) Trans Constr‐Oth Mfg‐Text

Others _‐_62.4%

‐31.4% ‐40.4%

‐14 9% (335)

(78) (43)

243

Others Trans‐Oth Soc Serv

Mining 19.1% ‐10.0% ‐23.7% ‐49.1% 17 Rp Billion (2,190) (1,649)

(4,000) (3,000) (2,000) (1,000) 0 1,000

2,000 3,000 4,000

Mfg‐Oth

‐14.9% ‐42.6% Rp Billion

(1,078) (335)

(2,800) (2,200) (1,600) (1,000) (400) 200

(19)

…into

Fee

‐

based

Income

Non‐Loan Related Fees &

Commissions 9M‐2009 Q2‐2010 Q3‐2010 9M‐2010

9M %

(Y‐o‐Y)

Q3 %

(Q‐o‐Q)

Breakdown of 9M 2009 & 2010 Non‐Loan Related Fees & Commissions (Rp bn)

Administration Fees 997 394 453 1,214 21.7% 14.8%

Opening L/C, BG & Cap Market

(custodian & trustee) 379 127 124 396 4.5% (2.2%)

Subsidiaries 343 117 342 572 66.6% 192.8%

Transfer, Collection, Clearing & Bank

Reference 172 62 63 183 6.4% 2.4%

Credit Cards 417 160 203 532 27.8% 26.9%

Mutual Fund & ORI 34 17 16 44 30.2% (4.7%)

Others 596 233 241 727 21.9% 3.3%

Total 2,938 1,109 1,441 3,668 24.8% 30.0%

Total Operating Income 16,466 6,900 7,356 20,388 23.8% 6.6%

% of Non Loan Related fees to total

operating income 17.8% 16.1% 19.6% 17.9% (0.8%) 21.9%

* Others includes Syndication, Payment Points, ATMs, Debit Cards, etc.

** Non‐Loan related fees & commissions/(Total Operating Income ‐Non‐recurring interest income)

(20)

Building

our

high

yield

business

in

Micro

&

Small…

1,439

Micro Credits

(Rp Bn)

23.9%

6,369

13.66%

Consumer Loans

(Rp Bn)

4 240

Small Business Credits

(Rp Bn) Loan

Yields 12.9%

5,066

6,505

28.4% 18,900

25,269

,

33.60%

16,269 20,509

4,240

26.1%

Q3 2009 Growth Q3 2010

Disbursement Breakdown (9M 2010)

Q3 2009 Growth Q3 2010

Disbursement Breakdown (9M2010)

Q3 2009 Growth Q3 2010

Disbursement Breakdown (9M 2010)

*Excluding Credit Cards

1,512

1,771

2,483

121 373

647

3,127

4,802

3,889

981

1,771

9,124

3,704

4,845

163

Rural Banks Micro Unsecured Micro TOTAL Mortgage Home

Equity Loan

Payroll Loan Other Total

Non

‐

Prog

Program Coops

Cash

Coll

TOTAL

(21)

…as

well

as

Consumer

lending,

which

rose

32.3%

Y

‐

o

‐

Y

on

Mortgages,

Credit

Cards

and

Vehicles

3

,

27,500 Other

C di C d

Growth (%)

Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type

Rp28.64 tn

2 2,9 7 3,239 3,372 1,7 5 2,295 2,565 2,918 ,542 22,500 25,000

Credit Cards Payroll Loans Home Equity Loans Mortgages

Loan

Type

Growth

(%)

Y‐o‐Y Q‐o‐Q

Other*

101.43%

21.38%

3,

8

3,94

1

3, 3,₉ 3,9

8 4,09 9 4,252 4,541 4,719 4,985 5,194 1,9 2 2,008

2,113 2,223 2,251

2,452 2,754

2

,989 7₃

495 619 956 1,1451,2791,353 1,493 5 8 15,000 17,500 20,000

Credit

Cards

22.47%

4.13%

Payroll

Loans

22.14%

4.20%

1

3,

4

3,612

3,702 3,761

3,721 3,697 3,704

3,699 3,753 3,822 8 90 1 1,930 2,285 3,010 3,192

3,658 999 9₉₃ 8₃ 9

1,

2

1,367 1,293

1,908 2₆

72

180 224

7,500 10,000 12,500

Home

Equity

Loans

6.54%

1.30%

Mortgages

36.99%

8.32%

1,5

2

3,050 3,610

5,382 6,393

7,199 7,717 8,052 8,376 8,814

9,193 10,017 10,681 11,626 1 2,593 328 2,852 4,131 3,666 4 37 1,802 1,921 815 2 70 21 2,500 5,000

,

Mortgages

36.99%

8.32%

Total

Consumer

32.26%

7.44%

283 2 2 328 0 Q4 '03 Q4 '04 Q4 '05 Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3

'10 * Auto & Motorcycle Loans channeled or executed through finance

(22)

Mandiri

Tunas

Finance:

Total

Financing

Rp 2.9

Tn

Rp bn

Total Booking and the Break Down for

Joint Financinng and Non JF Breakdown of Financing Program for 2010

1. Total

10

new

additional

Dealers with MoU

469

Dealers

with

MoU

Cooperated

2. Floor

financing

done

by

business

banking

in

4

used

car clusters

396

412

car

clusters

3. Rollout

Branches

referral

program

4. MTF branches

expansion

249

p

with

total

of

74

Branches

5. Loan

disbursements

grew

by

132.82%

YoY

(23)

1,868k

Visa

&

Mastercards transacted

Rp3.37

tn

in

Q3

2010

Mandiri Visa & Mastercards and EOQ Receivables

1,868

Receivables (Rp Bn)

55

65 3200

T f B l

Total Card Quarterly Sales by Type of Transaction (Rp Bn)

1,409

1,4861,544

1,6081,678 1,770

( p ) Cards (000s)

60 58 50 55 55 43 55 64 75 2400 2600 2800

3000 Transfer Balance Cash Advance Retail 1,089 1,1591,226 1,2731,331 61 57

63 63 59 54

9

32

59 19 39 52 1600 1800 2000 2200 651 752 872 68 61 62 11 9 10 1000 1200 1400 1600

567.5 814.9 1,270.2 1,367.4 1,292.8 1,907.5 1,925.9 2,007.7 2,112.7 2,223.2 2,251.0 2,452.2 2,753.7 2,989.3 2,973.4 3,238.7 3,372.5 226 338 53 5 52 1 53 2 60 6 60 0 83 6 1,51 4 1,44 3 1,66 8 1,90 4 1,91 4 1,89 1 2,16 3 2,55 2 2,67 6 2,49 7 2,84 8 3,00 3

62 61 57 81 56 68

24 16 10 18 8

200 400 600 800 Q4 '02 Q4 '03 Q4 '04 Q4 '05 Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10

5 1 2 6 0 6 4 3 8 4 4 1 3 2 6 7 8 3

(24)

Gross

NPLs 2.6%

,

coverage

at

192%

‐

Total

NPLs Rp5.15

tn with

Rp0.8tn

Down

grades

1,000

Cons

Non‐Performing Loan Movements (Rp tn) – Bank Only Movement by Customer Segment (Rp Bn)

750

Cons

Micro/Small

Comm

Corp

4.74

0.19

0.75

0.10

0.16

0.10

5.15

146.3

356.8

500

163.9

44.9

43.2

87.4

250

12.4

84.0

-85.5

-68.8

0

UG to PL DG to NPL W/O

(26)

Stable

NPLs across

the

segments

NPLs (Rp tn)

Q3 (Rp tn)

NPLs (%)

Corporate 1 47 0 05 1 59%

Amount of Cash Provisioning Non‐Performing Loans by Segment

(Rp bn) Loans Outstanding

# of Customers

Provisioning (Rp bn)

Corporate 1.47 0.05 1.59%

Commercial 1.76 0.05 3.00%

Small 0.75 0.21 3.63%

Micro 0.43 0.04 6.73%

Individual 15,654 508 7,274

Collective 191,652 910,120 3,155

Consumer 0.73 0.05 2.55%

Total 5.15 0.41 2.39%*

• Bank Mandiri’s current cash provisioning to total loans (Bank only) stands at 5.03%

Total 207,305 910,628 10,429

* Excluding Restructuring Losses and loans to other banks.

Methodology for Impairment:

Bank Mandiri has established criteria for decrease in value based on Loan Segmentation:

Individual Impairment

1. Corporate and Commercial customer segments with objective evidence of decrease in value.

2. Outstanding loan balances of more than Rp5 billion for other segments which have objective evidence of decrease in value

3. Restructured loans for Corporate and Commercial customer segments

4. Restructured loans with outstanding balances of more than Rp5 billion for other segments which have objective evidence of decrease in value

25 evidence of decrease in value.

Collective Impairment

1. All segments excluded from individual impairment

(27)

Q3

2010

annualized

net

downgrades

of

1.30%

on

loans

originating

since

2005.

Total Loans originated since 2005

Net Upgrades_pg (%)_{( )}/_/Downgrades_g (%)_{( )}# Q3 2010 Details_Q

Loan Background

Q3 ‘10 Balance

(Rp bn)

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

DG to NPL

%

UG to PL

%

Corporate 76,552.17 0.11 0.48 1.05 1.15 ‐ 0.03 0.28 0.17 0.18 0.18 ‐

Commercial 50,766.23 0.21 1.05 0.78 0.03 0.21 0.04 0.51 0.27 0.13 0.15 0.02

Small/Micro 23,251.61 0.59 1.20 1.06 1.00 1.19 0.84 1.36 0.86 1.20 1.38 0.17

Consumer 27,409.35 0.22 0.13 0.49 0.27 0.30 0.11 0.40 0.33 0.35 0.49 0.14

l 0 21 0 6 0 91 0 38 0 2 0 12 0 0 0 32 0 33 0 38 0 0

Total 177,979.37 0.21 0.65 0.91 0.38 0.25 0.12 0.50 0.32 0.33 0.38 0.05

(28)

Progress

on

selected

debtors

as

of

30

Sept

2010



Total

outstanding

as

of

30

Sept

2010

was

Rp 1.3

trillion.



Industry :

Airline.

Garuda

Industry

:

Airline.



IPO

is

scheduled

in

Q1

2011

Kick

‐

off

process

of

IPO.



The

delay

of

IPO

due

to

Q4/2010

result

and

the

preparation

Garuda

Audit

(as

of

Sept

2010)

Garuda

Indonesia



Total outstanding to this debtor as of 30 Sept 2010 was Rp 1 6 trillion

Domba

Mas

G



Total

outstanding

to

this

debtor

as

of

30

Sept

2010

was

Rp 1.6

trillion.



Industry

:

oleo

chemical,

lens

optic

and

hotels.



The

obligor

has

signed

a

credit

settlement,

with

new

investors

.



This is comprehensive resolutions of Debtors

Group

This

is

comprehensive

resolutions

of

Debtors.



Cash

Collection

USD

10million,

the

remaining

USD

180

to

be

restructured

up

to

7

years,

paying

commercial

rate.

(29)

Strengthening

Risk

Management

&

Monitoring

System

Corporate

Customer

by

Rating

Summary

of

Risk

Management

Initiatives

Credit

• Wholesale Transaction: Optimize credit decision

process by focusing on quantitative factors of analysis, redefining clear role of risk team , and aligning RM Organization into business expansion

• High Yield Business: Assign dedicated team, set

High Risk (Rating C‐G) Medium Risk (Rating BBB – B)

Low Risk (Rating AAA – A)

100% _{up loan factory, enhanced business process (incl.}

tools, monitoring & collection system, policy )

• Optimize capital by implementing ERM & VBA • Consolidate risk management of subsidiaries

24% 21%

25%

22%

15% 12% 11% 15% 8%

80% 100%

Market

• Development of risk measurement system for derivative & structured product (Summit)

• Implement Market Risk Internal Model

• Intraday Limit Monitoring

• Enhance Policy & Procedure for Treasury & ALM E h FTP (F d T f P i i ) th d 34%

40% 60%

Operational

• ORM implementation in all unit, incl. overseas

offices & subsidiary

• Enhance FTP (Fund Transfer Pricing) method

• Develop liquidity stress test & safety level

• Develop measurement of capital for IRBB 51%

64% 68% _60% 70%

20% 40%

Operational

• Bring Op. Risk top issues into Management

• Review Op. Risk on new procedures & new

products

0%

(30)

Q3

Cost

to

Income

Ratio

at

38.1%

83.3%

CIR* (%)

Annual Avg CIR (%)

9M ‘09 Q3 ‘09 Q3 ‘10 9M ‘10

Y‐o‐Y Growth

3Q‐oY 9M

Breakdown of Q3 2009 & 2010 Operating Expenses Quarterly Consolidated Operating Expenses & CIR*

54.3%

41.1% _{40 6%} _{39 3%}

39 0% 40 6%

42.3%

0 %

3Q‐oY 9M

Personnel Expenses

Base Salary 1,158 379 452 1,271 19.3% 9.7%

Other Allowances 1 547 479 656 1 870 36 9% 20 9%

1,309 ₁ 1,328 1,3 7 1,509 % _40.6% 35.1%

39.3% 39.0% 40.6%

40.1% Other Allowances 1,547 479 656 1,870 36.9% 20.9%

Post Empl. Benefits* 281 (46) 130 311 (384.9%) 10.8%

Training 97 34 58 165 70.2% 71.0%

Subsidiaries 442 171 213 573 23.9% 29.6%

1,241 869 1,005 1,158 1,165 1 ,197 _1,116 1,390 1,019 1,306 7 5

Total Personnel

Expenses 3,525 1,019 1,510 4,190 48.2% 18.9%

G & A Expenses

IT & Telecoms 514 177 170 538 (4.2%) 4.6%

Occupancy Related 782 293 335 939 14.2% 20.0%

842 1,016 993 769 1,034 916 1,148 827 1,004 1,110 1,384 1,051 1,265 1,469

p y 782 293 335 939 14.2% 20.0%

Promo. & Sponsor. 443 182 222 581 22.0% 31.0%

Transport & Travel 209 74 84 240 13.9% 14.8%

Prof. Services 314 106 124 364 17.0% 15.9%

Employee Related 295 116 174 441 50.9% 49.7%

Q4 '05 Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10

G&A Expenses (Rp bn) Personnel Expenses (Rp bn)

29

Subsidiaries 384 163 362 684 122.2% 78.0%

Total G & A Expenses 2,941 1,110 1,470 3,786 32.4% 28.7%

(31)

Leveraging

cash

generator

to

accelerate

high

yield

growth

and

deposit

franchise

3,202

Rp Billion Consumer Loans from Alliance Program

(10 top corporate clients) Co‐Branding Prepaid Card Program

1 1281,259 1,275

1,389 1,609 1,821

2,085 2,283 2,558

319

791 897

1,128 ,

Q4 '06Q4'07Q1 '08Q2 '08Q3'08 Q4'08Q1 '09Q2 '09Q3 '09Q4 '09Q1 '10Q2 10 Q3 10

8,314

Total Payroll (*)

Rp Billion

36,987

Corporate Card Holder from Alliance Program (10 top corporate clients)

3,46

4,394

4,756

3,50

0

4,302

5,169

6,567

6,781

7,272 12,108

14,612 16,495 23,660

3

0

Jan '10 Feb '10 Mar '10 Apr '10 May '10 Jun '10 Jul '10 Agt '10 Sept '10

1,616 1,620 1,796 1,869 2,007 3,625 ,

Q4'07 Q1 '08 Q2 '08 Q3'08 Q4'08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10

(32)

Enhancing

synergies

&

values

from

subsidiaries

Investment Banking Investment Banking Syariah Banking

Syariah Banking InsuranceInsurance NicheNiche BankingBanking

Bank Sinar

Multi‐Finance Multi‐Finance

Total Assets Rp28.05 tn

Bond Trading Volume Rp30.5 tn

Total Assets Rp7.88 tn

Total Loans Rp575.3 bn

Total Financing Rp2,976 bn Total Financing Equity & FI Underwriting Annual FYP Net Interest Margin Net Interest Margin

Harapan Bali

Total Financing Rp21.44 tn

Equity & FI Underwriting Rp5.8 tn

Annual FYP Rp 1,551 bn

Net Interest Margin 10.41%

Net Interest Margin 5.57% Total Deposits

Rp24.84 tn

Equity Trading Volume Rp53. tn

Fee Contribution Rp161.80 bn

ROA 2.88%

ROA (Before Tax) 4.06%

ROE ROE ROE ROE ROE (After Tax)

ROE 25.91%

ROE 12%

ROE 101.10%

ROE 13.24%

ROE (After Tax) 19.02%

• Remain the leader in • Expansion of business to • Provide end‐to‐end • Enhance operating •Use Bank Mandiri’s syariah financing

• Capital injection program over 3 years • Cross‐sell syariah

products to Mandiri

fully utilize current capital base

• Cross‐sell capital market services to broad range of Mandiri customers

bank assurance business • Continue to build cross‐

sell opportunities in various segments • Bank assurance

model • Improve risk

management systems and IT

• Improve productivity

network infrastructure throughout Indonesia to develop multi‐finance segment, especially in vehicle‐ownership fi i

31 customers • Refocus business toward

higher fee income

products complete our suite of consumer offerings

(33)

9M

2010

operating

profit

increased

by

26.8%

from

9M

2009

on

higher

NII

&

fee

‐

based

9M

2010

9M

2009

Rp billion Rp billion

5,708

8,646

Up 26.8%

3,795

7,119

14,557

11,619 12,488

9 165 9,165

Net Interest Income Fee‐Based Income Overhead Expenses & Others

Pre‐provision Operating Profit Notes :

1. Fee based income excluding gain on sale & increasing value GB & securities

2. Overhead expenses + others excluding provisions Net Interest Income Fee‐Based Income Overhead Expenses

& Others

(34)

Strong

Revenue

Growth

Summary P&L 9 Month 2009 9 Month 2010 Y‐o‐Y

Rp (Billions) % of Av.Assets* Rp (Billions) % of Av.Assets (%)

Interest Income 24,571 13.7% 25,089 12,5% 2.1%

Interest Expense (12,083) (6.8%) (10,725) (5.3%) (11.2%)

Net Interest Income 12,488 7.0% 14,364 7.2% 15.0%

Other Operating Income : 3,795 2.1% 5,707 2.8% 50.4%

• Other Fees and Commissions 2 938 1 6% 3 668 1 8% 24 8%

• Other Fees and Commissions 2,938 1.6% 3,668 1.8% 24.8%

• Foreign Exchange Gains – net 495 0.3% 423 0.2% (14.5%)

• Others *** 362 0.2% 1,616 0.8% 346.4%

Gain from Increase in Value & Sale of Bonds 181 0.1% 122 0.1% (32.6%)

Provisions, Net (2,327) (1.3%) (3,200) (1.6%) 37.5%

Personnel Expenses (3,524) (2.0%) (4,190) (2.1%) 18.9%

G & A Expenses (2,947) (1.6%) (3,786) (1.9%) 28.5%

Other Operating Expenses** (647) (0.4%) (670) (0.3%) 3.6%

Profit from Operations 7,019 3.9% 8,540 4.3% 21.7%

Non Operating Income 327 0.2% 142 0.1% (56.6%)

Net Income Before Tax 7,346 4.1% 8,682 4,3% 18.2%

33

Net Income Before Tax 7,346 4.1% 8,682 4,3% 18.2%

Net Income After Tax 4,685 2.6% 6,389 3.2% 36.4%

* % of Average Assets on an annualized basis

(35)

…supported

by

strong

capital,

ROE

continues

to

expand

31 3% CAR*

IDR bn

Capital & RWA Movement Profit After Tax & ROE

26.2% 23 6%

RoE ‐AT

195.

234.7

31.3%

26.4%

27.7%

25.3% 25.3%

CAR

2,352

775 1

2,53

6

Q4 PAT Q3 PAT Q2 PAT

21.5% 23.6%22.8%

10.0%

15.8%18.1% 22.1% 23.1%

134

172.9 8

23.4% 23.7%

21.1%

1

1,408

1,3

4

1,693

799

819

775

1,166

1

,390

6

Q2 PAT

Q1 PAT _2.5%

72.

5

91.9

108.9 115.9 112.2 .0

15.7%

14.6%

602 690

1,329

_1,1 1,221

1,526

2,031

967

1,017

1

,528

1,040

4

5

645 799

1,23

4

42.6

58.1 5

13.3 15.4 17.0 25.5 27.5 27.4 28.4 28.3 27.2 30.5 34.2

308

1,168

1,549

1,744

519 510

1,027

1,390

1,400

2,003

1,300

602

97 305

13

610 372

4

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q3' 10 RWA (Rp tn) Total Capital (Rp tn)

(623)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

(36)

On

Track

to

Achieve

Our

2010

Targets

Target

3Q 2010

Gross Loan Growth (YoY)

15-18%

23.2%

Savings Deposits

>

Rp110 tn

Rp 120.33 tn

Net Interest Margins

~

5 35%

5 28%

(1)

Net Interest Margins

~

5.35%

5.28%

(1)

Efficiency Ratio

~

45%

39.36%

Gross NPLs

<

4.0%

2.67%

Provisioning Coverage

>

150%

186.13%

New Distribution Infrastructure Targets:

# of New ATMs

2 500

499

# of New ATMs

2,500

499

# of New EDCs

25,000

8,996

# of New Micro Outlets

500

369

35

(37)

Operating

p

g

Performance

(38)

Corporate

Banking:

Contribution

Margin

declines

on

rate

increase

Rp bn Rp bn

Q1 Q2

Performance to Date: 9M 2010 Contribution Margin (after PPAP) Strategies for 2010

1. Build up the industry‐based focus, including investment in human resources development, to support the organization in achieving higher

3 910

610

277 ₃₀₆

2,655 340

1,144

Q3 Q4

2,906

the organization in achieving higher than market growth

2. Develop an awareness of the importance of optimizing the potential growth in wholesale business transactions, fund

3,910

2,074

340

2,315

1,138

416 692

659

‐16%

2,483

preservation_based_income and_with collection_a_strengthened of fee‐

product team function (from product sales specialist to product

development) while increasing service standards and product

2,316

1 106

824 1,077

537

competitiveness

3. Foster alliances (collaboration) among business units in the effort to maximize the borrower’s business potential, from downstream to upstream with a variety of product

545 741 522

1,075 592

547 1,106 upstream, with a variety of product

and service offerings according to the current needs

4. Increase the role of Syndicated & Structured Finance Group and Mandiri Securities in speeding up the

37 2007 2008 2009 2010

(39)

Mandiri

Sekuritas’

financial

performance

9M

‘09

9M‘10

Y

‐

o

‐

Y



(%)

Revenues

170

279

64%

(Rp Bn)

Revenues

170

279

64%

• Investment

Banking

96

44

(54%)

• Capital

Market

145

136

6.2%

• Treasury

3

0

(100%)

• Investment

Mgt

31

46

48%

Operating

Expenses

128

169

32%

Earnings

After

Tax

30

65

117%

Equity Transactions

33 326

53 009

59%

Equity

Transactions

33,326

53,009

59%

SUN

Transactions

10,706

30,508

185%

Bonds

Underwritten

1.775

5,756

224%

ROA

2.1%

8.4%

300%

(40)

Treasury,

FI

&

SAM

Rp bn Rp bn

Performance to Date: 9M 2010 Contribution Margin (after PPAP) Strategies for 2010

1. New strategy for remittance

business in Middle East,

South Korea and Taiwan.

3,309

2. Develop FX online dealing & web‐based FX quotation system in order to

generate more FX volume from corporate clients

3 309

1,247

Q1 Q2

Q3 Q4

from corporate clients.

3. Expand clients’ coverage for foreign exchange, marketable securities and custody services business

1,838 193

2,351

958

3,309

377

1,280 196%

1 382

including foreign investors.

4. Set program and strategy to become major player in banknotes business.

5 E l t t i d

946

1338 307

316 210

263

1,382

803

5. Early restructuring and intense monitoring.

6. Legal action on non‐ cooperative debtors.

7 Enhance e procurement

706

266 ₂₁₀ 455

724 946

322

348 153

210

39

7. Enhance e‐procurement system.

8. Optimum utilization on e‐ auction.

*

2010:Including Collection from SAM and excluding International branches (except Cayman Branch)

(41)

Commercial

Banking:

Strong

revenues

from

both

Liabilities

&

Assets

Q1 Q2 Q3 Q4

Rp bn Rp bn

Performance to Date: 9M (tent) 2010 Contribution Margin (after PPAP) Strategies for 2010

1. Supporting Bank Mandiri Wholesale Banking vision as an Integrated Wholesale Bank

4,449

735

602 ₅₀₁

3,911

622 (1.96)%

Integrated Wholesale Bank through

sophisticated, customized and completed services to can increase revenue especially through potential business like

,

3,289

1,166 _1,174

3,075

735 ₆₂₂

3,289

3,026

Wholesale Banking Deposit and Fee Income.

2. Increasing profit and market share through customer existing share of wallet, increasing

f d

,

1,266 _1,176

6

714

2,114

revenue from new customer and _{NPL control.}

3. Provide best total business solution for customer by

developing product and services including quality bundling

487

852 923 939 946

795

564 including quality bundling

product, quick services and competitive price.

4. Effective Alliance in units based on customer base in Commercial and Small segment especially in

487

2007 2008* 2009* 2010**

* incl CM of Small Business & BSM**in June 2010 Decline due to PSAK50&55Implementation

(42)

Commercial Banking :

Stronger Platform & Improved Distribution Capability

Expanding

Scope

of

Distribution,

2010

Solid

Low

&

Stable

Cost

Funds

Source

of

Rp Tn **

S t K li t E

Product Q3 ‘09

Q3

‘10 Growth

Demand

Deposit 17.77 18.57 4.5%

Sumatera Loans = Rp8.1 tn Funds = Rp4.3 tn

Kalimantan Loans = Rp3.1 tn Funds = Rp2.1 tn

Eastern Loans = Rp1.5 tn Funds = Rp0.7 tn

Rupiah 11.93 12.13 1.67%

FX 5.85 6.44 10.08%

Saving

Deposit* 1.25 1.56 24.8%

Total Low

Cost Fund 19.02 20.13 5.83%

Total

Funding 30.94 29.72 ‐3.94%

Java and Bali Loans = Rp44.7 tn Funds = Rp22.7 tn

CBC = 20 Unit Floor = 22 Unit TSC = 12 Unit TSD = 14 Unit

Low Cost Fund Ratio = 67.74% Funding from Java & Bali =76.22%

41

of total funding

(43)

Strong

growth

from

Bank

Syariah

Mandiri

13.6%

12.3%12.4% 13.5%

13.0%

12.4% 12.3% 12.7% _{12 1%}

Net Interest Margin & Cost of Funds Financial Performance (Rp bn)

YoA FY ’06 FY ‘07 FY ’08 FY ’09 9M ’10

Financing 7,415 10,305 13,278 16,063 21,438

12.3% 12.3%

12.0% 12.1%

Deposits 8,219 11,106 14,899 _19,338 _24,839

Assets 9,555 12,888 17,066 22,037 28,054

EAT 65.48 114.64 196.42 290.94 320,05

Ratios: Ratios:

ROA 1.10% 1.54% 1.83% 2.23% 2.30%

ROE 10.23% 15.94% 21.34% 21.40% 25.91%

Net NPF 4.64% 3.43% 2.37% 1.34% 1.45%

5.7%

5.4%5.4%5.4%5.3%5.3%5.7%

6.2% 5.9% 5.8%5.6%

4.7% 4.9%

5.0% 21 44

Financing

90.2%91.1%91.1%89.2%99.1%_89.1%86.9%

87.9%83 1%83 9%85.2% 86.3%

Syariah Financing (Rp tn)

CoF

6.8%

5.6% 6.3%

6.7% _6.3% _6.4% _6.3%

5.6% 5.6% 6.1% 6.6% 6.2% 6.2% 6.4%

10.3111.15

12.7313.7713.2513.4314.23

14.9416.06 17.65

19.8721.44 87.9%83.1%83.9%

FDR

NIM

2005Q4 '06Q4 '07Q1 '08Q2 '08Q3 '08Q4 '08Q1 '09Q2 '09Q3 '09Q4 '09Q1 '10Q2'10Q3'10

7.41 10.31

Q4 '06

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

(44)

Micro

&

Retail

Banking:

Rapidly

growing

our

high

margin

business

Q4

Performance to Date: 9M 2010 Contribution Margin (after PPAP)

Rp bn Rp bn

Strategies for 2010

1. Leverage our strength in Corporate and large

1,069 Q4

Q3 Q2 Q1

2,172

3,995 Commercial customers to

quickly build high margin business

2. Continue to improve our payment infrastructure 3,152

1,319 ₄₄₉

722 (8.6%)

3,204

3,654

2,204

payment infrastructure 3. Expand our distribution

with a focus on high margin business

4. Improve our sales culture

d d f

2,221

880

855

83 572

877 318

2,506 285

2,221

and productivity of existing network

5. Cross sell to grow our fee based income business

574 727

1,126

761

740 583

780

2007 2008* 2009 * 2010*

*Excluding Small Business ₄₃

(45)

Consumer

Finance:

Significant

growth

in

spread

and

fee

income

Performance to Date, 9M 2010 Contribution Margin (after PPAP)

Rp bn _Rp bn

1 509

1554

638

449

621 489

Q1 Q2

Q3 Q4 52%

1,509

1,631

1,820 ₂₆₇

1,553

413

831

455

133

413

158

324

412

639

143 150 174 252

476

90 170

200

355

100

161 133

79

412

NII Fees Overhead Operating

Profit

Provisions Profit After PPAP

Axis Title

143 150 174

(46)

Supporting

pp

g

Materials

(47)

Key

Quarterly

Balance

Sheet

Items

&

Financial

Ratios

IDR billion / % Q3 ‘09 FY ‘09 Q3 ‘10 Y‐o‐Y (%)

Gross Loans 188,322 198,547 231.924 23.2%

Government Bonds 88,363 89,133 82,181 (7.00%)

l

Total Assets 365,743 394,617 408,286 11.6%

Customer Deposits 295,497 319,550 321,199 8.7%

Total Equity 33,168 35,109 39,027 17,7%

RoA‐before tax (p a ) 2 74% 2 96% 2 89%

RoA ‐before tax (p.a.) 2.74% 2.96% 2.89%

RoE – after tax (p.a.) 19,66% 22.07% 23.11%

Cost to Income(1) _39,74% _40.18% _39.36%

NIM (p.a.)(p ) 5.11% 5.22% 5.28%

LDR 62.78% 61.36% 71.76%

Gross NPL / Total Loans 3.80% 2.79% 2.67%

Provisions / NPLs 164.45% 200.45% 186.13%

Tier 1 CAR(2) _12,81% _12.50% _11.28%

Total CAR(2) _14.21% _15.55% _13.28%

Total CAR incl. Market Risk 14.14% 15.43% 13.25%

46

EPS (Rp) 223.83 341.72 304.60 36.1%

Book Value/Share (Rp) 1,585 1,677 1,860 17.4%

(1) (G&A and employee expenses) / (Net Interest Income + Other Operating Income), excluding

(48)

(49)

Additional

Factors



Aggregate

of

Rp32.864

tn (US$

3.682

bn)

in

written

‐

off

loans

as

of

end

‐

September

2010,

with

significant

recoveries

on

‐

going:



2001:

Rp2.0

tn



2002:

Rp1.1

tn



2003:

Rp1.2

tn



2004:

Rp1.08

tn



2005:

Rp0 818 tn (US$ 83 2 mn)

Written

‐

off

Loans

Written

‐

off

Loans



2005:

Rp0.818

tn (US$

83.2

mn)



2006:

Rp3.408

tn (US$

378.5

mn)*



2007:

Rp1.531

tn (US$

249.3

mn)



2008:

Rp2.309

tn (US$

211.8

mn)

Loans

p

(

$

)



9Mo

’09:

Rp1.489

tn (US$

146.4

mn)



Q4

‘09:

Rp0.775

tn (US$

82.5

mn)



Q1

‘10:

Rp0.287

tn (US$

31.6

mn)

Q2 ‘10

R 0 662

(US$ 73 0

)



Q2

‘10:

Rp0.662

tn (US$

73.0

mn)



Q3

‘10:

Rp0.363

tn (US$

40.7

mn)**)

*

including the write‐back of RGMloans totaling Rp2.336 tn

(50)

Summary

Quarterly

Balance

Sheet:

Q3

‘09

–‘10

Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 ’10 Y‐o‐Y

Rp (tn) Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# % 

Total Assets 366.49 394.62 399.24 402.08 408.29 45.75 11.4%

Cash 9.39 8.87 6.63 6.45 8.60 0.96 (8.4%)

Placement with BI 13.42 16.06 17.92 25.71 19.23 2.15 43.3%

Placement with other banks 25.59 26.57 27.20 25.33 23.85 2.67 (6.8%)

Securities 9.75 3.73 35.48 25.75 13.49 1.51 38.4%

Government Bonds 88.36 89.13 86.82 83.54 82.18 9.21 (7.0%)

Trading 0.25 0.43 0.27 0.15 0.49 0.05 98.4%

AFS 26.12 25.92 63.13 59.96 58.26 6.53 123.1%

HTM 62.00 62.79 23.42 23.43 23.43 2.63 (62.2%)

L 188 28 198 55 201 94 217 99 231 92 25 99 23 2%

Loans 188.28 198.55 201.94 217.99 231.92 25.99 23.2%

Performing Loans 180.37 192.34 196.57 213.12 226.55 25.38 25.6%

Non‐Performing Loans 7.92 6.21 5.36 4.88 5.37 0.60 (32.2%)

Allowances (12.29) (12.45) (11.50) (11.55) (11.73) (1.31) (4.5%)

Loans – Net 176.00 186.10 190.43 206.45 220.19 24.67 25.1%

Total Deposits – Non‐Bank 295.55 319.55 312.91 326.58 321.19 35.99 8.7%

Demand Deposits 66.79 72.70 69.80 73.34 62.68 7.02 (6.2%)

Savings Deposits 102.39 113.80 106.98 113.75 111.93 12.54 9.3%

49

Certificate & Time Deposits 126.37 133.06 136.13 139.49 125.28 14.04 (0.9%)

Sharia Banking 14.27 ‐ ‐ ‐ 21.30 2.4 49.3%

Shareholders’ Equity 33.10 35.11 36.78 36.51 39.02 4.37 17.9%

(51)

Summary

Quarterly

P&L

– Q3

2010

Summary

P&L

Q3 2009 Q2 2010 Q3 2010 Q‐o‐Q Y‐o‐Y

Rp (Billions) % of

Av.Assets* Rp (Billions)

% of

Av.Assets* Rp (Billions)

% of

Av.Assets (%) (%)

Interest Income 7,756, 8.6% 8,188, 8.2% 8,871, 8.8% 8.3% 14.4%

Interest Expense (3,668) (4.0%) (3,452) (3.4%) (3,877) (3.8%) 12.3% 5.7%

Net Interest Income 4,088 4.5% 4,735 4.7% 4,995 4.9% 5.5% 22.2%

Oth O ti I 1 335 1 5% 2 225 2 2% 2 153 2 1% (3 2%) 61 3%

Other Operating Income 1,335 1.5% 2,225 2.2% 2,153 2.1% (3.2%) 61.3%

Gain from Increase in Value

& Sale of Bonds 58 0.1% 21 0.0% 11 0.0% (47.6%) (81%)

Provisions, Net (442) (0.5%)

(1 162) (1.2%) (1,344) (1.3%) 15.7% 204.1%

, (44 ) (0.5%)

(1,162) ( . %) ( ,344) ( .3%) 5.7% %

Personnel Expenses (1,019) (1.1%)

(1,374) (1.4%) (1,510) (1.5%) 9.9% 48.2%

G & A Expenses (1,109) (1.2%) (1,265) (1.3%) (1,470) (1.5%) 16.2% 32.6%

h

Other Operating

Expenses** (499) (0.6%) (394) (0.4%) 107 (0.1%) (127.2%) (121.4%)

Profit from Operations 2,412 2.7% 2,786 2.8% 3,136 3.1% 12.6% 30.0%

N O ti I 209 0 2% (0 0%) 63 (0 1%) (280 0%) (69 9%)

50

Non Operating Income 209 0.2%

(35) (0.0%) 63 (0.1%) (280.0%) (69.9%)

Net Income Before Tax _2,621 _2.9% _2,750 _3.7% _3,199 _3.2% _(14.7%) _22.1%

(52)

Limited

Impact

on

Government

Recap

Bonds

Maturity/ Rp bn

Trading Portfolio Available for Sale _He