09 02 30 Q42008AnalystsMeeting

k

(

) bk

PT

 

Bank

 

Mandiri

 

(Persero)

 

Tbk

Full Year 2008

Full

 

Year

 

2008

Results Presentation

Share

 

Information

Description

Per 31 December 2008 No. of 

Investor  % No. of shares  % DOMESTIC

4,000 4,500

BMRI JCI

Government of RI 1  0.00% 14,000,000,000  66.97% Retail 14,844  59.17% 383,526,308  1.83% Employees 9,163  36.53% 191,151,612  0.91%

3,000 3,500

BMRI JCI

Cooperatives 3  0.01% 415,000  0.00%

Foundations 13  0.05% 18,083,500  0.09% Pension Funds 193  0.77% 247,800,000  1.19%

Insurance 51  0.20% 276,178,000  1.32%

1 500 2,000 2,500

Banks 1  0.00% 181,000  0.00%

Corporations 211  0.84% 505,630,033  2.42% Financial Institutions 1  0.00% 13,359,500  0.06%

l d 0 6% 696 8 000 3 33%

500 1,000 1,500

Mutual Funds 115  0.46% 696,578,000  3.33% Total 24,596  98.05% 16,332,902,953  78.13% INTERNATIONAL

Retail 93  0.37% 3,194,000  0.02%

0 1 1 ‐ Ju l ‐ 0 1 1 ‐ O ct ‐ 1 1 ‐ Jan ‐ 1 1 ‐ A p r ‐ 1 1 ‐ Ju l ‐ 0 1 1 ‐ O ct ‐ 1 1 ‐ Jan ‐ 1 1 ‐ A p r ‐ 1 1 ‐ Ju l ‐ 0 1 1 ‐ O ct ‐ 1 1 ‐ Jan ‐ 1 1 ‐ A p r ‐ 1 1 ‐ Ju l ‐ 0 1 1 ‐ O ct ‐ 1 1 ‐ Jan ‐ 1 1 ‐ A p r ‐ 1 1 ‐ Ju l ‐ 0 1 1 ‐ O ct ‐ 1 1 ‐ Jan ‐ 1 1 ‐ A p r ‐ 1 1 ‐ Ju l ‐ 0 1 1 ‐ O ct ‐

from: IPO Jan 1 2008

Institutional 397  1.58% 4,569,550,835  21.86% Total 490  1.95% 4,572,744,835  21.87% TOTAL 25,086  100.00% 20,905,647,788  100.00%

0

3 ‐0₃ 0₄ ‐0₄ 04 ₄0‐ 0₅ ‐0₅ 05 ‐0₅ 0_{6 6}0‐ 60 ‐0₆ 0₇ ‐0₇ 07 ₇‐0 0₈ ‐0₈ 08 ‐0₈

BMRI +200.00% ‐42.14%

Bank

 

Mandiri

 

Presentation

 

Contents

Results Overview Page #



2008 Financial Milestones and Highlights 2‐3



2008 Growth Momentum and Balance Sheet 4‐5



Loan Growth & LDR 6‐10



Strategy Overview 11‐12



Deposit Franchise Development 13‐16



Net Interest Margins 17



High‐Yield Lending Activities 18‐20



Wholesale Lending, Fees and FX Activities 21‐22



Quarterly Overhead Expenses & Detail Qua e y O e ead pe ses e a 155



NPL Movement, Asset Quality & Provisioning         24‐27



New NPL Formation 28



Top NPL Debtor Developments        29



Enhancing Risk Management 30



Overhead Expense Details 31



Leveraging SBU Alliances & Subsidiaries 32‐35



Summary P&LSummary P&L 3636



CAR, ROE, PAT 37

Operating Performance Highlights 38‐46

Supporting Materials 47‐88

All

 

financial

 

milestones

 

achieved

 

in

 

2008...

Metric

Target

Achievement

Gross

 

NPLs

<5%





NPL Provision

 

Coverage

>120%



Normalizing ROE

~18%



Normalizing

 

ROE

18%



Margin

 

Improvement

~5.2%



Growth in Savings Deposits

>Rp90 tn



Growth

 

in

 

Savings Deposits

>Rp90

 

tn



Retain

 

Efficiency

 

Ratio

<50%



G

L

G

th*

18%



Gross

 

Loan

 

Growth*

>18%



Corporate

>20%



Commercial

>20%



Consumer

>30%



Micro

 

&

 

Retail

>20%



Key

 

Financial

 

Highlights

Bank

 

Mandiri’s Full

 

Year

 

2008

 

Performance

 

continued

 

to

 

demonstrate

 

marked

 

improvements

p

 

in

 

a

 

number

 

of

 

key

y

 

indicators:

FY

 

2007

FY

 

2008



%

Loans

Rp138.5

 

tn

Rp174.5

 

tn

26.0%

Net

 

NPL Ratio

1.51%

1.09%

(27.8%)

Gross NPL Ratio 7.17% 4.73% (34.0%)

Low

 

Cost

 

Funds

 

Ratio

61.6%

56.7%

(7.9%)

[Low Cost Funds (Rp)] Rp152.4 tn Rp164.0 tn 7.7%

NIM

5.03%

(1)

5.45%

8.3%

Efficiency

 

Ratio

48.2%

42.3%

(12.3%)

f

b

b

(2)

3

Earnings

 

After

 

Tax

Rp4,346

 

bn

5,313

 

bn

22.3%

Maintaining

 

momentum

 

for

 

growth

Y‐o‐Y  Y‐o‐Y



Loans

 

by

 

SBU*

(Rp Tn)

Deposits

 

by

 

Product

 

– Bank

 

Only

(Rp Tn)

21.35

250

275 FX Time Rp Time

FX Demand Rp Demand FX Savings Rp Savings

14.82

4.04

4.38 135

150

Micro  Small  Cons  Comm  Int'l Corp 



34.0% 

63.5% 13.3%

73 43

95.69 15.65 12.56

15.93

14.72 14.69

16.07

200 225 50

17 52 18.74

19.27

13.08 12.49

12.90

13.42

2.68 2.90

3.46

105 120

30.3% 35.4%

51 82

9.78

11.88 13.53 10.49

15.09

93.20 80.47

73.43

66.70

63.34 78.16

125 150 175

4.44 

31.46 32 75

36.48

38.71

41.56

10 66 11.08

12.78

14.23 15.74

17.52

7.56 8.86

9.91

1.73

1.94

2.20

60 75 90

54.3%

2 8% 32.1%

57.4%

3 50

4.12

4.70 _5.36 7.72 _6.37 7.38

30.12

33.61

50.43

36.39 41.30 43.97

51.82

11.39

9.07

50 75 100

55 17 62.04 0.95

0.91 _2.14

2.82 _3.39 4.06

4.33

25.85 24.36 28.90

3 .46 32.75

10.66

30 45

60 2.8%

38.4% 57.4%

57.0%

45.17 57.61

81.54 76.29 80.81 75.80 82.23

3.50

0 25 50

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

29.94 36.12 34.67

44.84 42.27 47.77 55.17

0 15

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

0.8%

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

Strong

 

and

 

liquid

 

balance

 

sheet

Assets

Amount

%

 

of

 

Assets

Liabilities

Amount

%

 

of

 

Liab.

(Rp Bn, Bank Only)

Cash

8,064

2.38%

Current

 

Account

66,908

19.77%

SBI &

 

BI

 

Placement

 

(net)

46,077

13.62%

Savings

89,611

26.48%

Placement

 

w/other

 

banks

 

(net)

22,345

6.60%

Time

 

Deposits

 

(Rp)

95,693

28.28%

Marketable

 

Securities

 

(

(net)

)

4,053

,

1.20%

Time

 

Deposits

p

 

(Fx)

21,354

,

6.31%

Government

 

Bonds

87,772

25.94%

Total

 

Deposits

273,566

80.84%

Loans

 

(Gross)

159,007

46.99%

Securities

 

Issued

779

0.23%

Provisions

(11,272)

(3.33%)

Deposits

 

from

 

other

 

banks

5,776

1.71%

Other

 

Advances

 

(net)

7,090

2.10%

Borrowings

8,638

2.55%

Investments

2,965

0.88%

Other

 

Interest

 

bearing

 

liabilities

2,837

0.84%

Other

 

Assets

12,303

3.64%

Non

 

Interest

 

bearing

 

liabilities

16,294

4.81%

Equity

30 514

9 02%

5

Equity

30,514

9.02%

FX

 

loan

 

exposure

 

contained

 

as

 

FX

 

funding

 

rises

    

FX

 

Loans

FX

 

Funding

(USD million)

44

582  ₂₄₇  3,883 4,021

3,765

4,254

3,755 3,822

4,011

(663) (USD million) +529

356  501 

583 

823 

675 

677  730 

691  694 

687 

55 

32 

45  38 

34 

33  3 

3 

6  22 

44 

9  984

895 

282  248 

382  3,108

2,860

3,238

3,472 3,492

3,158

3,348

1,592  _1,696  1,599 

1,593 

1,705 

1,959  458 

980 

617 

282  290  984 

1 468 _{1 385}

1,395 

1,834 

2,908 

2,731  2,820  2,998 

2,306  466 

8

1,159  _{1,007  1,041}  1,291  1,468  1,112  1,385 

2005 2006 2007 Q1‐2008 Q2‐2008 Q3‐2008 Q4‐2008 1,163 

2005 2006 2007 Q1‐2008 Q2‐2008 Q3‐2008 Q4‐2008

Demand Deposit Time Deposit  Savings

FX

 

LDR falls

 

to

 

80.5%

Rupiah

 

Loans*

 

&

 

LDR

FX

 

Loans*

 

&

 

LDR

43 0%

48.1%

52.5% 53.9% 52.4%

Loans (Rp tn)

LDR (%) _131.1%

123.7%

Loans (Rp tn) LDR (%)

40.4%

43.0%

41.4%

102.5% 104.4%

95.9%

111.0%

8 8

9

7

.

1

0

6

.7

1

2

0

.3

3 37 3 36 3

80.5%

6

8

.1

7

3

.9

8

5

.0

8

6

.3 .5

7

3

1

.3

3

3

.8

7

.6 33

.4

3

4

.3

6

.6 35_.3

2005 2006 2007 Q1 '08 Q2 '08 Q3 '08 Q4 '08 2005 2006 2007 Q1 '08 Q2 '08 Q3 '08 Q4 '08

7

LDR of

 

59.2%

 

reflecting

 

strong

 

liquidity…

65.0%

Loans (Rp tn) LDR (%)

68.7 76.4

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

42.5%

53.7% 57.2% 56.4% 54.3%

62.2% 59.2%

LDR (%)

40.2 38.2 42.3 44.7

53.6

50.5

59.7 55.4

61.1

35 7 36 4 3 39.1 41.2

43.8 Corporate Commercial 26.3% 35.4% % 38.2 22.2

31.4 35.7 32.6 32.5 36.4 35.5

10 7 11 1 11.7 14.3 15.8

17.5 18.7 19.3

Commercial Consumer 4 3 .0 4 8 .3 6 5 .4 7 5 .9 9 4 .4 1 0 6 .9 1 1 7 .7 1 1 4 .3 1 1 6 .3 1 2 1 .7 1 3 8 .5 1 3 5 .5 1 4 9 .6 1 6 2 .8 1 7 4 .5 Q 4

  Q4  Q4   4Q Q4  Q4  Q4   1Q Q2  Q3  Q4   Q1 Q2  Q3  Q4 

7.6 10.2 10.0

13.7 13.1 13.3 13.8 15.1

1.7 1.9 2.1 2.7 2.9 3.5 4.0 4.4

1.5 3.7

8.5 10.7 11.1 11.7

Q 4   Q 4   Q 4   Q 4   Q 4   Q 1   Q 2   Q 3   Q 4   Q 1   Q 2   Q 3   Q 4   Small Micro 26.0% '0

0 '01 '02 '03 '04 '05 '06 '07 '07 '07 '07 '08 '08 '08 '08 '02 '03 '04 '05 '06 '07 '07 '07 '07 '08 '08 '08 '08

By Segment 

(Bank only)

Loans (Rp tn)

Y‐O‐Y Growth  (%)

% of  Portfolio

Corporate 76.41 27.90% 48.05%

7.20%

Commercial 43.81 20.29% 27.55%

Small 15.15 10.34% 9.53%

Micro 4.38 63.43% 2.75%

8

QoQ Growth (%) YoY Growth (%)

Consumer 19.27 35.13% 12.12%

Rp83.1

 

tn in

 

loans

 

disbursed

 

in

 

2008

9 65

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

83 13

19.72

32.11

6.05

3.72

9.65

83.13

6.38

5.51

159.01

18.47

126.83

83.13

45.24

Q3 '08 Disburs. Install. Payment FX Impact Write‐Offs Q4 '08

9

Rp23.7tn

 

in

 

loans

 

disbursed

 

in

 

Q4

 

‘08

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

1 82

146 46

23.66

5.78

10.80

5.88

0.42

159.01

1.71

0.95

1.82

146.46

4.92

23 66

14.26

23.66

14.26

Committed

 

to

 

Improving

 

Shareholder

 

Value

Reduce Cost of Funds Reduce Cost of Funds Improve Assets Yield Diversify into Fee Income

Business

 

Strategy

d i i /

Competitive,

sustainable

_{Reduce Provision/NPL}

Reduce Cost Efficiency

sustainable

 

returns,

 

with

above

‐

average

t

f

th

Support

 

Strategy

rates

 

of

 

growth

Leverage on cash generator to  accelerate growth in higher yield  business

Strategic

 

Alliances

Building

 

on

 

our

 

Business

 

and

 

Support

 

Strategies

 

with an Alliance Focus

with

 

an

 

Alliance

 

Focus

1. Strengthening our deposit franchise, to become 

primary payment bank

Business Strategies Alliance Strategy Focus

 Improving supplier network and  distributor

 Cross sell productsto 

employees as customers:

2. Developing high yield business

3. Enhancing wholesale franchise and diversifying 

wholesale transactions

4 Connecting the business leveraging synergy

Corporate

distributor

‐ Providing basic transaction  and cash management 

‐ Supporting suppliers and  distributors in working capital  financing

employees as customers:

‐ Payroll

‐ Mortgageor  auto loans

‐ Corporate/ Retail cards

SBU Strategic

4. Connecting the business, leveraging synergy

5. Non‐organic growth & synergy in optimizing 

subsidiaries

Cross sell productsfor employee as customers :  Payroll, mortgage, auto  loans commercial / retail cards

Alliances

Support Strategy  

loans, commercial / retail  cards

Developing wealth managementfor individual Director or owner operators 

Increase IT Operations  efficiency and 

Increase earning assets  monitoring and  

Enhance employee  productivities and 

Implement Business 

Solution Excellence to 

Apply  Value Based  Management as  the 

Efficiency  Risk Management  Human Capital  Information Technology Performance Culture

centralized and  consolidated  procurement

perfecting early 

warning signal

Consolidated risk and  monitoring subsidiaries 

internal culture  Apply best practice for 

recruit, retain and  develop

support payment bank  strategy

Implement Service 

Excellence Strategyto  b i h

next step of  Performance Culture support business growth 

Q4

 

Deposits

 

rise

 

by

 

16.0%

 

Y

‐

o

‐

Y

 

and

 

18.5%

 

Q

‐

o

‐

Q

Rp Savings Deposits FX Savings Deposits Rp Demand Deposits FX Demand Deposits

Deposit Analysis – Bank Only

15% Rp DD Rp Savings

Average Quarterly Deposit Costs (%) 9 5 . 1 2 1 .4 250 275

Rp Time Deposits FX Time Deposits

Low‐Cost Deposits (%)

9.5% 13.9% 11.4% 13.1% 11.9% 10.4%

8 8% 9.2%

10.9%

10% 15%

Rp TD 1 Mo. SBIs

7 8 .2 .7 2 3

. 20 1

1

5

.7

1

2

.6 13

.9 1 2 .1 1 3 .7 1 5 .9 1 4 .7 1 4 .7 1 6 .1 175 200 225

61.5% 59 2% 6 1%

5.3% 4.7% 9.9% 7.4% 6.9%6.8% 6.3% 7.4% 9.3% 7.4% 8.8% 8.2%8.0%8.3% 9.2% 5% 10% 9.8 11.9 13.5 78.2 15.1 8

0 7₂

7 0 .0 6 9 .1 7 3 .4 ₆ 6 .7 6 3 .3 1 6 .5 2 1 .5 .4 0 .6 17

.3 11_.6

9 125 150 175 44.5% 45.3% 54.2%

58.6% 61.5% 59.2%_57.2% 6.1%

3.7% 3.0% _2.6% 2.5%2.5%2.2%2.8% 3.8% 3.5% _3.6%3.2% 3.0%2.9% 3.3% 6.3% 0% 5%

4 1 4 2 4.9 4.7

4.7 _5.4 7.7

6.4 7.4

2

2

8

.0 30.

3 3 .6 3 1 .0 3 3 .1 3 5 .4 5 0

.4 36

.4

4

1

.3 44

.0 5 1 .8 9.1 11.911.4

9.1 10.214.611.2

8 7 .8 1 0 6 .9 1 0 0 .7 8 0 .5 6 6

.5 93_.2

.5 2_.9

75 100

23.1% 32.9%

31.4% 0%

4.0% _{3 7%}

3 7% 6%

FX DD FX TD

1 4 .3 1 8 .0 2 2 .1 2 9 .6 4 0 .6 5 2 .0 4 5 .2 5 7 .6 5 7 .2 6 2 .5 6 5 .7 8 1 .5 7 6 .3 8 0 .8 7 5 .8 8 2 .2 3.5 4.1 4.2 1 4 .1 3 1 .1 3 1 .2 2 4 .8 2 8

.8 0 1

Building

 

a

 

strong

 

savings

 

deposit

 

franchise…

Savings Deposits (Rp tn)

Savings Deposit Growth Transaction channel growth

Other g p ( p )

As % of Total Deposits

National Share of Savings Deposits (%)

55.00 58.76 65.9 74.71 84.70  37 37 49.59 51.04 54.48 57.09 55.80  Other  Payment  Transfer  Withdrawal/Inquiry  Avg ATM Daily Vol (000)

30.6% 29 2% 34.6% 38.6%40.0% 35.6% 32.8%

4 6 6 8 8 9 1,0 1,0

19.6 29.3 39.07 30.81 29.79 37.37 16 2% 22.8% 22.7% 29.2%

16 9%17.5%16 0%17.2%18.5%19.1%19.3%17.9%

4 9 2 .1 6 0 7 .5 6 7 7 .0 8 5 3 .4 8 9 9 .7 9 7 6 .7 0 8 8 .8 0 4 3 .4 11.0%11.7% 16.2% 11.6%12.8% 15.3%

16.9% _16.0% 7. %

1 722

2,988 2,784 3,029

3,464 3,009 Quarterly Call Center Trans. (000)

Quarterly SMS Trans. (000)

…through

 

an

 

enhanced

 

transaction

 

capability

Quarterly Transaction Volume (Mn) 120  ATM 64.68 70  10 006 11,000 

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

88.75

99.83110.13 100 

Branch SMS Banking Internet Banking

49.11 57.66 60  8,828 10,006 9,000 

10,000  Debit Cards

SMS Banking Internet Banking

67.76 69.97 77.89 80  35.54 40.71 40 50  2 6,642 7,629 7,000  8,000  42.1140 59

60  31.87

35.54 30  40  5,024 5,752 4,355 5,000  6,000 

35.10 36.24 36.55 38.51

42.1140.59

19.7722.33 40 

20 

ATM

SMS Banking Internet Banking

1,897 2,413 2,989 3,652 3,000  4,000 

8.33 11.57 12.24

16.97

0.84 1.31 1.71 2.39 3.37

5.55

0 20 

1 02 1 81

0.56 0.88 1.60 2.20

3.61 3.81

0

10  1,523

,

358 469 564 705

849 988 0 1,000  2,000  15 0  Q 1   '0 6 Q 2   '0 6 Q 3   '0 6 Q 4   '0 6 Q 1   '0 7 Q 2   '0 7 Q 3   '0 7 Q 4   '0 7 Q 1   '0 8 Q 2   '0 8 Q 3   '0 8 Q 4   '0 8

0.28 0.36 0.55 0.71 1.02 1.81

Enhancing

 

deposit

 

franchise,

 

building

 

on

 

wholesale

 

transactions

Wholesale Deposit Growth (CASA) (Rp tn)

Cash Management Growth in Commercial Banking 2 1

# of Customers

Total Transactions  (000)

21 0 1.8

2.1

Comm Savings Comm Demand Corp Savings Corp Demand

0.6 19.4

21.0

+55%

+146%

4,066 632

0.7 12.1 _14.8

+146%

2,414 407

34.0 36.5

745 24.9 _23.0

2006 2007 2008 2007 2008

Q4

 

NIM falls

 

to

 

5.4%

 

on

 

asset

 

yields

 

of

 

10.5%

18.9%

20%

Yield on Assets

Quarterly Net Interest Margins* Quarterly Yields & Costs by Currency*  15.9% 11.9% 13.2% 12.1% 12.0% 11.1%12.1% 13.2% 12.5% 14.0% 14.0% 13.1% 10.4% 9.2%10.9% 11 7% 10% 15% 13.0% 13.0%

10.7%11.0% _{10 5%}

10.8% 10.8%

Cost of Funds _IDR

8.2%

10.8%

8.0% _7.7% 8.0%9.2% 10.3%

7.4% 8.8% 8.2%

8.3% 11.1% 11.7%

5.4%

6.9%

5.0%

4.6% 4.0%4.6%5.8%

5% 10% 9.5% 8.9% 10.7% 9.4% 9.0%9.3%9.2% 10.1%10.5% 0%

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

NIM 6.3% 4 8% 7.3% 6.4% 4 8% 5.3% 15%

NIM 4.8% 4.8%

4.5%4.3%

3.8%4.2%

6.5% 7.6% 7.3%

5 7% _{5 3%} 5 8%5 8%6.8% 9.5% 10% FX 2 .4 % 3 .9 % 2 .8 % 3 .7 % 4 .3 % 3 .6 % 4 .9 % 5 .5 % 4 .9 % 4 .9 % 4 .7 % 5 .1 % 5 .5 % 6 .0 % 5 .4 %

5.1% 5.7% 5.3% 5.8%5.8%

6.7%

1.4% 1.8%

5.3% _{5.3% 4.9%}

Building

 

our

 

high

 

yield

 

business

 

in

 

Micro

 

&

 

Small…

Micro Credits

(Rp Bn)

19.7% 12.7%

Consumer Loans

(Rp Bn)

Small Credits

(Rp Bn) Loan

Yields 12.8%

2

,6

4

,3

7

6

1,699

1

2

,3

2

1

7

,0

4

4

4,720

1

3

,0

8

1

1

4

,8

1

5

1,734

12.9%

6

7

7

Q4 2007 Growth Q42008

63.4%

Disbursement Breakdown (Q4 ‘08)

2

4

Q4 2007 Growth Q4 2008

38.3%

Disbursement Breakdown (Q4 ‘08)

Q4 2007 Growth Q42008

12.9%

Disbursement Breakdown (Q4 ‘08)

0

Disbursement Breakdown (Q4 08) Disbursement Breakdown (Q4 08) 

1,201

143 1 158

8

6

9

Disbursement Breakdown (Q4 08)

3,055

0

1,365

1,969

8,272 185

1

,0

9

2

6

,8

2

9

3,055

3,587 4 3,737

,3

8

1

9

532

Rural Banks Micro Unsecured Micro TOTAL  Mortgage Home Equity 

Loan

Payroll Loan Other Total

N

o

n

‐

P

ro

g

P

ro

g

ram

C

o

o

p

s

 

A

llian

ce

s

 

C

h

an

n

e

lin

g

 

Fo

o

d

 

Su

ff.

C

as

h

 

C

o

ll

T

O

T

A

…as

 

well

 

as

 

Consumer

 

lending,

 

which

 

rose

 

35.4%

 

Y

‐

o

‐

Y

 

on

 

Mortgages

g g

 

and

 

Credit

 

Cards

Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type Rp19.27 tn 2 ,1 1 2 ,2 2 3 956 1 ,1 4 5 1 ,2 7 9 18,000 20,000 Other Credit Cards Payroll Loans Home Equity Loans

Loan Type

Growth (%)

Y‐o‐Y Q‐o‐Q

3 3 ,6 5 8 3 ,9 9 9 3 ,9 9 3 1 1 ,9 0 8 1 ,9 2 6 2 ,0 0 8 1 3 3 350 425 495 619 12 000 14,000

16,000 Home Equity Loans

Mortgages

Other

158.26%

11.65%

Credit

 

Cards

16.55%

5.23%

3 ,6 3 ,7 0 2 3 ,7 6 1 3 ,7 2 1 1

,9 1,9₀

1 ,9 9 2 ,1 6 2 ,2 8 2 ,4 2 2 ,6 4 4 2 ,7 8 9 3 ,0 1 0 3 ,1 9 2 8 1 ,3 6 7 1 ,2 7 9 1 ,2 4 1 1 ,2 3 1 1 ,2 9 3 1 ,3 5 8 1 ,4 2 6 1 ,6 7 8 8 72

180 196 211 218 224 230

350

8 000 10,000 12,000

Payroll

 

Loans

32.65%

(0.16%)

Home Equity Loans

8 28%

(1 08%)

6 7, 7,7

8 ,0 4 ,1 3 1 4 ,0 3 3 3 ,9 7 9 3 ,8 6 7 3 ,6 6 6 3 ,5 2 2 3 ,4 0 4 3 ,3 9 0 3 ,4 3 7 1 2 1 ,9 2 1 3

0 06 96 5 85 27 4

1 ,2 7 0 21 72 4 000 6,000

8,000

Home

 

Equity

 

Loans

8.28%

(1.08%)

Mortgages

49.59%

4.34%

283 1 ,5 2 2 3 ,0 5 0 3 ,2 5 0 3 ,4 5 2 3 ,5 7 4 3 ,6 1 0 3 ,6 6 3 3 ,8 6 5 4 ,5 0 1 5 ,3 8 2 6 ,3 9 3 ,1 9 9 7 1

7 52

328 2 ,8 5 2 1 ,8 0 2 815 21 0 2,000 4,000

Total

 

Consumer

35.38%

2.84%

1

,3

3

1

k

 

V

is

a

 

&

 

M

as

te

rc

ar

d

s

tr

an

sac

te

d

 

R

p

2

.0

 

tn

in

 

Q

4

 

2

0

0

8

Man d ir i   V is a   &   Mas te rc ar d s a n d   E O Q R e ce iv a b le s To ta l   C ar d   Q u ar te rl y   Sal e s   b y   Ty p e   o f   Tr a n sa ct io n   (Rp B n ) 1 1 5 9 1 ,2 2 6 1 ,2 7 3 1 ,3 3 1 R e ce iv ab le s   (Rp   B n ) C ar d s   (0 0 0 s) 6 3 6 3 3 2 5 9 1 9 Tr an sf e r   B al an ce C as h   A d van ce Re ta il 8 7 2 9 1 9 9 6 6 1 ,0 3 3 1 ,0 8 9 1 ,1 5 9 6 1 6 2 5 7 9 1 0 3 2 6 5 1 7 5 2 7 6 5 7 8 4 8 1 7 8 7 2 6 8 6 7 6 2 5 8 1 1 1 7 1 9 1 7 3 3 8 6 2 6 1 5 7 8 1 5 6 5 9 6 8 7 2 6 8 2 4 1 6 1 0 1 8 8 2 3 4 2 3 1 1 567.5 814.9 1,270.2 1,367.4 1,279.4 1,240.8 1,230.7 1,292.8 1,357.5 1,426.2 1,677.6 1,907.5 1,925.9 2,007.7 2,112.7 2,223.2 2 2 6 535 521 532 606 600 553 621 755 836 936 1,067 1,225 1,514 1,443 1,668 1,904

1,914 20

5 9 2 4 4 8 7 8 5 2 6 5 9 7 7 2

Q4 '02

Q4 '03

Q4 '04

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Q1 '07

Q2 '07

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

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

Q4 '04

Q1 '05

Q2 '05

Q3 '05

Q4 '05

Q1 '06

Q2 '06

Q3 '06

Q4 '06

Q1 '07

Q2 '07

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Diversifying

 

our

 

strength

 

in

 

Wholesale

 

lending…

Breakdown of Net Expansion in Corporate Lending Q4 ’07 – Q4 ’08 (Total Rp16.67 tn) 5 232 Mf F&B % Breakdown of Net Expansion in Commercial Lending Q4 ’07 – Q4 ’08 (Total Rp7.39 tn) 4 89

B S O h

% 272 74% 2 372 2,898  3,136  5,232  Bus Serv Comm Mfg‐Oth

Mfg‐F&B _59.45%

43.55% 62.96% 86 75% 876  1,303  4,789  l Mfg‐Oth Construction

Bus Serv‐Oth 272.74%

27.09% 31.41% 1,203  1,545  1,674  2,372  Construction Plantations Mfg‐Chem

Bus Serv _86.75%

33.00% 25.53% 50 12% 691  818  854 

Trading‐Oth Distribution Agriculture _23.91% 40.05% 18.48% 578  716  904  ,

Trading‐Exp Utilities Mining‐Oth

50.12% 75.01% 44.47%

97.36% 517 

554  638 

Mfg‐Text Mfg‐P&P

Mfg‐Chem _17.94%

62.70% 34.50%

(157)

335  527 

Mfg‐Wood Trading‐Dom

Trading‐Ret _525.28%

164.09%

(25.85%) 196 

459  510 

Trans‐Oth Mfg‐F&B

Mass Trans _31.81%

27.77% 136.96% Rp Billion (1,530) (673) (186) Other Mfg‐Metal

Mfg‐P&P _(4.94%)

(47.68%) (25.36%) Rp Billion (590) (538) (109)

Real Estate Mining

Mfg‐Wood _(9.54%)

(35.24%) (73.55%) 21 p (1,907) (2 ,0 0 0 ) (1 ,0 0 0 ) 0

  1_,0

0 0   2 ,0 0 0   3 ,0 0 0   4 ,0 0 0   5 ,0 0 0   6 ,0 0 0  

Mining‐Oil & Gas _{(25.95%) (3,581)}

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

  1_,0

…into

 

Fee

‐

based

 

Income

Non‐Loan Related Fees & 

FY ‘07 Q3 ‘08 Q4 ‘08 FY ‘08 Q4 % FY%

Breakdown of Q4 2007 & 2008 Non‐Loan Related Fees & Commissions (Rp bn)

Commissions  FY  07 Q3  08 Q4  08 FY  08 (Q‐o‐Q) FY %

Administration Fees 735.46 300.59 311.78 1,111.03 3.7% 51.1%

Opening L/Cs, Bank Guarantees & 

399 14 131 89 141 57 464 92 7 3% 16 5%

Capital Markets 399.14 131.89 141.57 464.92 7.3% 16.5%

Subsidiaries 354.32 112.23 82.98 477.13 (26.1%) 34.7%

Transfers, Collections, Clearing & 

186 55 55.67 55 69 216 95 0 4% 16 3%

Bank Reference 186.55 55.67 55.69 216.95 0.4% 16.3%

Credit Cards 251.39 99.86 112.67 378.20 12.8% 50.4%

Mutual Funds & ORI 26.36 15.10 13.32 49.03 (11.8%) 86.0%

Others* 494.26 164.12 217.17 726.00 32.3% 46.9%

Total 2,447.48 879.46 935.18 3,423.25 6.3% 39.9%

Total Operating Income# 16 160 56 5 122 73 5 834 48 19 885 03 13 9% 23 0% Total Operating Income 16,160.56 5,122.73 5,834.48 19,885.03 13.9% 23.0%

Non‐Loan Related Fees to 

Operating Income** 15.1% 17.17% 16.0% 17.2% (6.8%) 13.7%

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

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

Strong

 

FX

 

revenues

 

but

 

limited

 

derivative

 

exposure

exposure

800

FX Fees(Rp bn) – Bank Only

Notional Fair Derivative Derivative Derivative Exposure (Rp bn) – Bank Only

Transactions Notional  Amount

Fair  Value 

Derivative  Receivable

Derivative  Payables

Foreign Exchange

F d b 493 459 4 38

600 Forward ‐buy 493  459  4  38 

Forward ‐sell 409  350  59  1 

Swap ‐buy 2,162 

2,287  144  19 

767.0  400

Swap ‐sell 4,369  4,341  122  94 

Interest Rate

Swap ‐interest rate 22  31  10 

378.1  200

p

Total 360  161

Less: Allowance for possible losses (6) ‐

61 9

298.5 

Total 364  161 

23

61.9  0

FY

 

NPLs decline

 

by

 

Rp2.79

 

tn on

 

write

‐

offs

 

of

 

Rp5.5

 

tn

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

383.4

235.6

Cons

Micro/Small

11.32

1.35

2.90

0.93

Comm

Corp

5.51

2 09

8 53

2,561.0

327 6

181.2

2.09

8.53

1,112.1

327.6

34 5

1,066.9

1,279.4

2,327.2

230.0

13.2

34.5

Q4

 

NPLs of

 

Rp8.5

 

tn due

 

to

 

FX

 

impacts

 

as

 

well

 

as

 

Rp2.1

 

tn in

 

downgrades

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

217.5

76.9

Cons

Micro/Small

C

8.53

658.3

Comm

Corp

7.20

1.25

2.07

0.46

0.42

1.39

8.53

92.3

28.7

51.2

1,076.5

1,119.9

1,076.5

260 2

115.4

40.5

25

260.2

Gross

 

NPLs rise

 

to

 

4.7%

 

with

 

provisioning

 

coverage

 

still

 

strong

 

at

 

127.1%

 

20,000 50%

NPL Movement ‐Consolidated

7 0 .9 % 212.6%

g

g

Category 2 Loans – Bank Only 16,000 18,000 , 40%

Cat 2 %

% 146.7% 190.4% 175.8% 201.7%187.5% 12,000 14,000 26 18% 30% 1 9 2 5 .2 8 % 129.5% 139.1% 128.8% 86.7% 109.0%122.6% 138.9% 127.1% 100 9% 151.1% 8,000 10,000 26.18%

14 98% 15.86%

20% 9 .8 0 % 1 6 .3 4 % 1 6 .2 9 % 1 5 .4 7 % ₁ 70.0% 44.4% 100.9% 4,000 6,000 9.16% 14.98% 12.87% 15.86% 13.99% 11.46% 9.22% 9.69% 10% 9 .7 0 % ₇ .3 0 8 .6 0

% 7_.1

0 % ₁ 2 .2 0 % 7 .1 7 4 ,0 3 3 1 5 ,3 5 0 1 2 ,6 5 5 1 6 ,2 0 2 1 0 ,9 8 3 8 ,3 3 4 1 2 ,9 1 2 1 6 ,9 6 6 1 6 ,7 5 0 1 5 ,8 5 4 1 5 ,5 8 6 1 5 ,1 4 8 1 4 ,0 5 8 1 3 ,4 5 1 1 3 ,5 0 2 1 5 ,4 1 2 0 2,000 Q

4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

9.22%

0%

% 0_% 7% 5

.1 4 % 4 .7 4 % 4 .4 4 % 4 .7 3 % 1 5 .3 % 3 .3 % 1.09% Q

4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 1Q Q2 Q3 Q4 1Q Q2 Q3 Q4 4 

'9 9 4   '0 0 4   '0 1 4   '0 2 4   '0 3 4   '0 4 4   '0 5 4   '0 6 1   '0 7 2   '0 7 3   '0 7 4   '0 7 1   '0 8 2   '0 8 3   '0 8 4   '0 8

2 ‐Special Mention Loans (Rp Bn)

4   '9 9 4   '0 0 4   '0 1 4   '0 2 4   '0 3 4   '0 4 4   '0 5 4   '0 6 1   '0 7 2   '0 7 3   '0 7 4   '0 7 1   '0 8 2   '0 8 3   '0 8 4   '0 8

Gross NPL Ratio  Net NPL Ratio

Cash

 

Provisioning

 

remains

 

high

 

for

 

both

 

NPLs

and

 

Category

 

II

 

loans

NPLs (Rp tn)

Q4

(Rp tn)

NPLs (%)

Collateral Valuation Details Non‐Performing Loans by Segment

Collectibility 1 2 3 4 5

Corporate 5.65 0.97 7.93%

Commercial 1.83 0.33 4.19%

Small 0.35  (0.05) 2.31%

Total Cash 

Prov. (Rp bn) 1,468  2,776 290  427 6,311 % Cash 

Provisions 1.1% 18.0% 29.7% 86.7% 89.4%

S a 0 35 (0 05) 3 %

Micro 0.23  0.10 5.17%

Consumer 0.47 (0.01) 2.45%

Total 8 53 1 33 4 69%*

o s o s

Collateral Prov. 

(Rp bn) ‐ 4,209  398  ‐ 1,022

# of Accounts 12 1 ‐ 8

Total 8.53 1.33 4.69%

• Bank Mandiri’s current provisioning policy adheres  to BI requirements

A f 31 D b ’08 l l i i

• Collateral has been valued for 21 accounts and collateral  provisions of Rp5,629 bn (48.6% of appraised value) have  been credited against loan balances of Rp7 381 bn

* Excluding Restructuring Losses and loans to other banks.

Provisioning  Policy

Performing Loans

Non‐Performing Loans • As of 31 December ’08, loan loss provisions excess 

to BI requirements = Rp430 bn

been credited against loan balances of Rp7,381 bn

• Collateral value is credited against cash provisioning  requirements on a conservative basis.  For assets valued  above Rp 5bn:

Policy Loans Loans

Collectibility 1 2 3 4 5

BI Req. 1% 5% 15% 50% 100%

–Collateral is valued only if Bank Mandiri has exercisable rights to 

claim collateral assets

–70% of appraised value can be credited within the initial 12 

months of valuation, declining to:

•50% of appraised value within 12 to 18 months

27

BMRI Policy 1% 5% 15% 50% 100%

BMRI pre‐2005 2% 15% 50% 100% 100%

50% of appraised value within 12 to 18 months

Q4

 

2008

 

Annualized

 

net

 

downgrades

 

of

 

2.60%

 

on

 

loans

 

originating

 

since

 

2005

Total Loans originated since 2005

g

g

Net Upgrades (%)/Downgrades (%)# _{Q4 2008 Details}

Loan  Q4 ‘08 

Balance Q4  Q1  Q2  Q3  Q4  Q1  Q2  Q3  Q4 

DG to  NPL

UG to PL Background Balance 

(Rp bn) 2006 2007 2007 2007 2007 2008 2008 2008 2008

NPL %

PL %

Corporate 56,693.3 0.02 ‐ 0.49 0.55 ‐ ‐ 0.10 0.11 0.48 0.59 0.11

Commercial 27,202.6 2.04 0.11 0.60 0.18 0.02 0.33 0.14 0.21 1.05 1.09 0.04 Small/Micro 14,608.1 1.62 1.87 1.56 1.07 0.59 0.92 0.58 0.59 1.20 1.33 0.13 Consumer 17,260.4 0.25 0.78 0.34 0.28 0.01 0.42 0.13 0.22 0.13 0.32 0.20

Total 115,764.4 0.68 0.42 0.29 0.23 0.08 0.28 0.18 0.21 0.65 0.76 0.11

# %downgradesandupgrades are quarterly % figures

Progress

 

on

 

selected

 

debtors

 

as

 

of

 

31

 

Dec

 

’08

 

 3 companies (Bosowa Berlian Motor, Bosowa Multi Finance and Semen Bosowa Maros)  have been restructured effective 26 September 2008.  These loans’ collectibility have been  upgraded to 1 (Current) for Bosowa Multifinance and  2 (Special Mention) for others. 

 Total remaining outstanding NPL’s as of 31 December 2008 were Rp1 341 billion

Semen

 

Bosowa

 

Maros

Total remaining outstanding NPL s as of 31 December 2008 were Rp1,341 billion.

 The obligor settled loans in 2008 amounting to Rp138 billion.

 We are now monitoring the approved restructuring.

Maros

Djajanti

 Loans outstanding to this group as of 31 December 2008 were Rp663.6 billion.

 The Bank is now in the process of liquidating the loan collateral. In 2008, we have already  received USD 15.3 million from liquidationq  of  collateral. 

 The loans have been fully provided.

Strengthening

 

Risk

 

Management

 

&

 

Monitoring

 

System

y

Corporate

 

Customer

 

by

 

Rating

Summary

 

of

 

Risk

 

Management

 

Initiatives

C dit

• Enhance business process credit approval, CR 

methodologies & tools (monitoring system)

• Develop & enhance collection systems

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

Credit

Develop & enhance collection systems

• Optimize credit portfolio management system

• Consolidate risk profile (incl. overseas offices & 

subsidiaries – Credit, Market & Operational)

15% 12% 11%

100%

Low Risk (Rating AAA – A)

Market

• Implementation of stress test analysis

• Development of derivative system (summit)

• Enhance our Treasury policy

34%

24% 21%

60% 80%

• ORM implementation  in all unit, incl. overseas 

Enhance our Treasury policy

64% 68%

40% 60%

Operational

offices & subsidiary

• Set up Operational Risk Committee under RCC

• Synchronization of Risk‐Based Audit 

methodology with  RCSA (ORM)

51%

64%

20%

0%

Q4

 

Cost

 

to

 

Income

 

Ratio

 

drops

 

to

 

40.4%

 

on

 

restrained

 

Personnel

 

expenses

CIR* (%)

Annual Avg CIR (%)

p

Q4 ‘08 FY ‘08 Q4

(Q‐o‐Q) FY

Breakdown of Q3 2007 & 2008 Operating Expenses Quarterly Consolidated Operating Expenses & CIR*

58.9%

g ( )

Personnel Expenses

Base Salary 357,178  1,427,269  0.11% 17.22%

Other Allowances _{588,904  2,039,033}  17.65% 7.68%

28 2% 40.2% 47.2% 40.4% 40.4% 47.2% 42.4%

Post Empl. Benefits 94,539  417,472  (25.89%) 34.91%

Training 43,651  211,889  (31.92%) (10.92%)

Subsidiaries _{112,391  468,105}  (8.51%) 26.34%

7

2

3

  1_,2

8 6 9   1 ,0 4 9 1 ,3 0 9   1 1 ,1 7 5   1 ,1 7 1 ,1 9 7   28.2% Total Personnel 

Expenses 1,196,663  4,563,768 2.11% 13.27%

G & A Expenses

IT & Telecoms _{218 055 791 861} 19 40% 0 42%

9 5 7 6 4 9   3 2 7

  377 

2

4

1

  7₉

5   9 2 9   9

  1_,0

2

0

 

7

2

  IT & Telecoms 218,055  791,861  19.40% 0.42%

Occupancy Related _{312,628  1,008,130}  19.36% 9.29%

Promo. & Sponsor. 150,162  553,047  61.34% 16.36%

Transport & Travel _{90 182 302 273} 15.72% 7.23%

3 3 6   7 5 3   7 7 5   7 4 9   1 ,0 3 4   8 4 2   1 ,0 1 6   7 1 0   7 4 8   9 5 7   9 9 3   7 6 4   1 ,0 3 4   9 1 6   1 ,1 4 8   7  

Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q

Transport & Travel _{90,182  302,273}  15.72% 7.23%

Prof. Services _{147,293  396,520}  54.09% 21.46%

Employee Related _{86,184  315,879}  (1.09%) 13.28%

Subsidiaries _{143 078 493 974} 21 38% 41 83%

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

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

31

Subsidiaries _{143,078  493,974}  21.38% 41.83%

Total G & A Expenses _{1,147,582  3,861,684}  25.26% 12.86%

Leveraging

 

cash

 

generator

 

to

 

accelerate

 

high

 

yield

 

growth

25.2% 2 537

2,300

Corporate ₂₀₀₆

g

Net Interest Income

NII (Rp bn) % of Total

Alliance Strategy Focus

18.3%

23.2%

19.4%

3.3%

2,632 2,537

304

2,112

Treasury & Int'l Commercial

2006 2008

Building Future Growth Engine

(Consumer& Micro/Retail)  CM = Rp5.425 trillion

Leveraging Our Cash  Generator

(Corporate& Treasury)  CM = Rp3.286 trillion

5.7% 39.8%

48.8%

8.5%

6,632 768

771

3,628

Micro & Retail Treasury & Int l

8.5%

7.5% 1,017

771

Consumer Finance

Fee Income

Fees (Rp bn) % of Total

10.9%

9.9%

5.1%

11.3% 480

420

127 268

Commercial

Corporate ₂₀₀₆

2008

3.3% 30.8% 49.2%

48 8% 2 091

903

1,176 762

Micro & Retail Treasury & Int'l

Strengthen  Emerging Business 

(Commercial Banking) CM = Rp2.427 trillion

48.8%

5.6%

8.4% 359

2,091

138

Leveraging

 

cash

 

generator

 

to

 

accelerate

 

high

 

yield

 

growth

 

and

 

deposit

 

franchise

Rp Billion

Consumer Loans from Alliance Program

(10 top corporate clients)

Co‐Branding Prepaid Card Program

g

p

791

897 

1,128

1,259  1,275 

319 391

486 532

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

Plantation Small & Micro Lending from Alliance 

Program Rp Billion

Corporate Card Holder from Alliance Program

(10 to corporate clients)

350  347 

418  416  427 

Program Rp Billion

1,616  1,620 

1,796  1,869 

2,007 

(10 to corporate clients)

149 

234  259 

268 

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

Enhancing

 

synergies

 

&

 

values

 

from

 

subsidiaries

Investment Bank Investment Bank Syariah Banking

Syariah Banking InsuranceInsurance NicheNiche  BankingBanking MultiMulti‐‐FinanceFinance

Total Assets Rp17 0 tn

Bond Trading Volume Rp31 01 tn

Total Assets Rp3 57 tn

Total Loans Rp257 bn

Total Financing Rp1 715 4 bn

Bank Sinar

Harapan Bali TUNAS FINANCE

Rp17.0 tn Rp31.01 tn Rp3.57  tn Rp257 bn Rp1,715.4 bn

Total Financing Rp13.3 tn

Bond Underwriting Rp1.73 tn

Annual FYP Rp572 bn

Net Interest Margin* 10.9%

Net Interest Margin 6.9%

Total Deposits Equity Trading Volume Fee Contribution ROA ROA (Before Tax) Total Deposits

Rp14.9 tn

Equity Trading Volume Rp42.57 tn

Fee Contribution Rp103.8 bn

ROA 3.5%

ROA (Before Tax) 7.1%

ROE 21.0%

ROA 0.6%

ROE 55.2%

ROE 12.5%

ROE (After Tax) 33.1%

• Remain the leader in  syariah financing

• Expansion of business to  fully utilize current capital  b

• Provide end‐to‐end bank  assurance business

• Enhance operating model • Improve risk 

•Use Bank Mandiri’s network infrastructure  

th h t I d i t

• Capital injection program  over 3 years

• Cross‐sell syariah products to Mandiri  customers

base

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

• Refocus business toward

• Continue to build cross‐ sell opportunities in  various segments

• Bank assurance products  complete our suite of

management systems  and IT

• Improve productivity

throughout Indonesia to  develop multi‐finance  segment, especially in  vehicle‐ownership  financing.

customers • Refocus business toward  higher fee income

complete our suite of  consumer offerings

FY

 

2008

 

operating

 

profit

 

up

 

45.4%

 

from

 

FY

 

2007

 

excluding

 

non

‐

recurring

 

interest

 

income

FY

 

2008

 

FY

 

2007

 

4,653

Rp billion Rp billion

9,380 3,163

8,211

15,285

Up 45.4%

8,211

7,738

15,285

10,558 12,786

7,263

Excluding Non‐ recurring Q1  I t t I

Net Interest Income Fee‐Based Income Overhead Expenses & Pre‐provision

,

Net Interest Income Fee‐Based Income Overhead Expenses & Pre‐provision

Interest Income

35 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

Strong

 

income

 

growth…

Summary P&L

(Rp Billions) FY 2007 Q3 2008 Q4 2008 FY 2008

Q4 ‘08 _

(Q‐o‐Q %)

FY _

(%)

Interest Income _{23 929 6 830 8 331 27 336 35 8% 14 2%}

Interest Income _{23,929  6,830  8,331  27,336  35.8% 14.2%}

Interest Expense _{(11,143) (2,825) (4,055) (12,051) 42.1% 8.1%}

Net Interest Income _{12,786  4,005  4,276  15,285  37.8% 19.5%}

Other Operating Income _{3,163  1,094  1,570  4,653  103.1% 47.1%}

Gain from Increase in Value  

& Sale of Bonds 228  (10) ‐ ‐ (100.0%) (100.0%)

Provisions, Net (1,740) (944) (796) (2,595) (438.7%) 49.1%

Personnel Expenses _{(4,029) (1,172) (1,197) (4,564) (4.7%) 13.3%}

G & A E

G & A Expenses _{(3,422) (916) (1,148) (3,862) 14.1% 12.9%}

Other Operating Expenses** _{(774) (229) (386) (1,006) 53.8% 30.0%}

Profit from Operations _{6,212,   1,861,   2,361,   7,911,   45.5% 27.4%}

Non Operating Income _{121  93  (7) 158  (106.5%) 30.6%}

Net Income Before Tax _{6,333  1,954  2,354  8,069  36.0% 27.4%}

…supported

 

by

 

strong

 

capital

 

at

 

15.7%

26 2%

IDR bn

Capital & RWA Movement Profit After Tax & ROE

31.3%

27.7%

CAR

Q4 PAT

21.5%

26.2%

23.6% 22.8%

15.8%18.1%

RoE ‐AT

26.4%

23.4%

25.3%

23.7%

25.3%

21 1%

1

,4

0

819 

775 

1

,1

6

1

,3

9

0

 

Q4 PAT

Q3 PAT

Q2 PAT

Q1 PAT _2.5%

10.0%

115 9 112 2

134.0

172.9

21.1%

15.7%

1

,3

2

1

,0

1

,5

2

8

 

0

8

 

1

,0

4

0

 

1

,3

4

5

 

645 

799 

6

6

 

58.1

72.5

91.9

108.9 115.9 112.2

1 1_{,7 1}

1

,3 602 

690 

2

9

 

1

,1

1

3

 

1

,2

2

1

 

967 

0

1

7

 

610 372

1

,2

3

4

 

42.6

13.3 15.4 17.0 25.5 27.5 27.4 28.4 28.3 27.2

2000 2001 2002 2003 2004 2005 2006 2007 2008

308 

1

,1

6

8

 

,5

4

9

 

7

4

4

 

519  510 

1

,0

2

7

 

1

,3

9

0

 

3

0

0

 

97  305 

610  372 

(623)

2000 2001 2002 2003 2004 2005 2006 2007 2008

RWA (Rp tn) Total Capital (Rp tn)

(623)

2001 2002 2003 2004 2005 2006 2007 2008

O

i

Operating

 

Performance

Performance

 

Corporate

 

Banking:

Contribution

 

Margin

 

declines

 

on

 

rate

 

increase

Rp bn Rp bn

Performance to Date: Q4 2008 Contribution Margin (after PPAP) Strategies for 2008

1. Refine organization to be more 

i d t f d & t th

2,098

423 139

2,763 ₁₀₄

2 483

Q1 Q2

Q3 Q4

2,906

(14 6%)

industry focused ,& strengthen 

funding sales team to gain rapid 

business growth 

2. Strengthen Corporate Banking 

2,483

692

659

(14.6%)

2,483

_{Floor in Surabaya and Medan to} 

broaden and deepen our 

geographic coverage

3 Strengthen our Syndication &

1,077

537

3. Strengthen our Syndication & 

Structured Finance team, as 

well as our synergy with 

Mandiri Sekuritas, to provide a 

broader variety and more

592

547

broader variety and  more 

sophisticated product range, 

and accelerate  transactional 

banking development in 

Corporate Banking

440

545  741 

Corporate Banking

4. Broaden relationships to offer 

products and services to our 

corporate clients’ suppliers, 

l d t

39

2007 2008

employees and customers, 

through strategic alliance 

Mandiri

 

Sekuritas’

 

financial

 

performance

 

has

 

been

 

impacted

p

 

by

y

 

the

 

global

g

 

economy

y

 

crisis

   

Dec ’07

(Audited)

Dec ’08

(Audited)

Growth Y‐o‐Y

(%)

(Rp Bn)

Revenues

426

429

0.84%

• Investment

 

Banking

158

152

(3.80%)

• Capital Market

Capital

 

Market

226

226

187

187

(16.90%)

(16.90%)

• Treasury

10

17

77.90%

• Investment

 

Mgt

32

71

124.88%

Operating

 

Expenses

199

255

28.39%

Earnings

 

After

 

Tax

108

0.96

(99.11%)

Equity

 

Transactions

49,408

42,568

(13.84%)

SUN

 

Transactions

70,751

31,010

(56.17%)

Bonds

 

Underwritten

3,452

7,133

106.63%

ROA

5.8%

0.6%

(89.66%)

Treasury

 

&

 

International

 

Banking

Operating Profit

Rp bn

1 Intensif cross selling of fore prod cts Strategies for 2008

1

,1

5

1

,2

4

1

,3

9

9

1. Intensify cross‐selling of forex products 

and services to our corporate and large 

commercial clients

2. Leverage our overseas network to 

5

2

.2 5.8 .6

2006 2007 2008

maintain our syndicated facilities and 

trade financing to high quality 

customers in selected sectors

3. Enhancing our regional distribution

2006 2007 2008

Loans Deposits

Business Volume (Rp bn)

Rp bn

3. Enhancing our regional distribution 

(RTM) in high growth, export‐oriented 

regions in collaboration with Micro & 

Retail Banking

4 S k t iti t h th i ld

4. Seek opportunities to enhance the yield 

of our recent portfolio

5. Reinforce  Bank Mandiri’s

competitiveness through new offices in 

1

,0

1

1

9

1

3

2

,8

2

3

4

,3

1

8

2

,5

1

2

3

,0

0

7

4

,2

3

1

4

,8

8

5

Malaysia and Shanghai

1 2 3 7 3 1 8 5

2005 2006 2007 2008

Commercial

 

Banking:

Strong

 

revenues

 

from

 

both

 

Liabilities

 

&

 

Assets

Q1 Q2

Rp bn Rp bn

Performance to Date: Q4 2008 Contribution Margin (after PPAP) Strategies for 2009

1. To widen asset margin especially 

477

Q1 Q2

Q3 Q4

477 217

2,832

405

2,114

15%

2,427

in_Medium Small Commercial _Commercial Loan _Loan  and 

Segment (Limit under Rp100 

Billion)

617 578

1,451

405

2,427

2. To increase sustainability of loan 

portfolio by expanding “KMK” 

fixed product. 

3 Financing the subcontractors of

564

617 _{3. Financing the subcontractors of} 

large corporates, particularly in 

infrastructure, mining, and 

telecom

4 T it h lli t t i

946

630

1,120.0

4. To pitch alliance strategic 

partner target sfrom the 10 

biggest corporate customers 

and 17 biggest commercial 

t th t h

487 

703 

customers that have 

significantly business impact.

5. To develop bundling products by 

utilizing push product and 

2007 2008

Commercial Banking : Stronger Platform Improved

Distribution Capability

y

Expanding Scope of

 

Distribution,

 

2008

Solid

Low

 

&

 

Stable

 

Cost

 

Funds

 

Source

 

of

 

Product 2007 2008 Growth

Demand 

19 36 20 98 8 4%

Rp Tn Sumatera

Loans = Rp 6.4 Tn Funds = Rp 5.6 Tn

Kalimantan

Loans = Rp2.7 Tn 

Funds = Rp2.2 Tn

Eastern

Loans = Rp0.9 Tn

Funds = Rp1.8 Tn

Deposit 19.36 20.98 8.4%

Rupiah 15.24 15.10 ‐0.9%

FX 4.11 5.88 43.1%

Saving 

Deposit* 1.75 2.12 21.1%

Total Low 

Cost Fund 21.11 23.10 9.4% Cost Fund

Total 

Funding 30.52 35.22 15.4%

Java and Bali

Loans = Rp34.3 Tn

Funds = Rp25.6 Tn

CBC = 17 Unit Floor = 18 Unit TSC = 11 Unit TSD = 6 Unit

Low Cost Fund Ratio =  65.59% Funding Jawa & Bali 72.69%  from total funding

43

g

Strong

 

growth

 

from

 

our

 

Syariah Banking

 

subsidiary

13.6% 13.5% 13.5%

y

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

Q4 ’06 Q4 ‘07 Q1 ‘08 Q2 ’08 Q3 ’08 Q4 ’08

12.3% 12.2% 12.4%

13.0%

12.4%

% YoA

Financing 7,415 10,305 11,150 12,730 13,766 13,251

Deposits 8,219 11,106 12,246 14,270 13,890 14,897

Assets 9,555 12,888 14,031 16,285 16,539 17,064

EAT 65.48 114.64 46.24 96.28 147.39 193.15

Ratios:

ROA 1.10% 1.54% 2.05% 1.94% 1.91% 1.82%

ROE 10 23% 15 94% 22 64% 22 78% 22 18% 20 98%

Syariah Financing (Rp tn)

ROE 10.23% 15.94% 22.64% 22.78% 22.18% 20.98%

Net NPF 4.64% 3.43% 2.63% 2.15% 2.20% 2.45%

6

.8 ₅ 6 6_. 6_.7 6_. 6_. 6_.

5.7%

5.4% _5.3% 5.4% 5.4% 5.3% 5.3% 5.7%

Financing

90.2%

92.8%

91.1% 91.1%

89.2%

99.1%

89.0%

FDR CoF

8

% 5_.6

%

.1

% 3%

7

% 3_% 4_% .2_%

9.30 10.31

11.15

12.73 13.77 13.25 _NIM

2005 Q4 '06 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 7.41

Micro

 

&

 

Retail

 

Banking:

Rapidly

 

growing

 

our

 

high

 

margin

 

business

Performance to Date: Q4 2008 Contribution Margin (after PPAP)

Rp bn Rp bn

Strategies for 2008

1,257 

Q4

Q3

Q2 2,090

4,594

1. Leverage our strength in 

Corporate and large 

Commercial customers to 

i kl b ild hi h i

, Q1

108% 5,773

3,922

quickly build high margin 

business

2. Continue to improve our 

t i f t t

1,416

318 

4,801 207

4,594 2,204

payment infrastructure

3. Expand our distribution with 

a focus on high margin 

b i

740

1,045 

572

business

4. Improve our sales culture and 

productivity of existing 

t k

574  876 

740 

859

network

5. Cross sell to grow our fee 

based income business

45

2007 2008

Consumer

 

Finance:

Significant

 

growth

 

in

 

spread

 

and

 

fee

 

income

Performance to Date, Q4 2008 Contribution Margin (after PPAP)

Rp bn

Rp bn Rp bn

359 Q1 Q2

Q3 Q4

831

1,135

507

324

639

30%

986 ₁₅₅

831

133 158

412

170

200 100

161 79

143  150  174 

90

170

NII Fees Overhead Operating  Profit

Provisions Profit After 

S

i

M

i l

Supporting

 

Materials

Key

 

Quarterly

 

Balance

 

Sheet

 

Items

 

&

 

Financial

 

Ratios

IDR billion / % FY ‘07 Q3 ‘08 FY ‘08 YoY Change (%)

Gross Loans 138,530 162,785 174,498 26.0%

Government Bonds 89 465 88 517 88 259 (1 3%)

Government Bonds 89,465 88,517 88,259 (1.3%)

Total Assets 319,086 318,671 358,439 12.3%

Customer Deposits 247,355 245,325 289,112 16.9%

Total Eq it 29 244 29 051 30 514 4 3%

Total Equity 29,244 29,051 30,514 4.3%

RoA‐before tax (p.a.) 2.28% 2.45% 2.52%

RoE – after tax (p.a.) 15.75% 18.09% 18.06%

( )

Cost to Income(1) _{46.72% 43.03% 42.26%}

NIM (p.a.) 5.23% 5.46% 5.45%

LDR 54.29% 65.03% 59.16%

Gross NPL / Total Loans 7.17% 4.44% 4.73%

Provisions / NPLs 108.97% 138.88% 127.14%

Tier 1 CAR(2) _{17.31% 13.96% 12.83%}

Total CAR(2) _{21.11% 17.08% 15.83%}

Total CAR incl. Market Risk 20.75% 16.98% 15.77%

EPS (Rp) 209.8 187.8 254.5 21.3%

Book Value/Share (Rp) 1,412 1,380 1,462 3.5%

Summary

 

P&L Information

 

– 2007

 

vs.

 

2008

FY 2007 FY 2008 YoY Change

Rp (Billions) % of 

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

Interest Income _{23,929  8.6% 27,336  8.5% 14.2%}

Interest Expense _{(11,143) (4.0%) (12,051) (3.8%) 8.1%}

Net Interest Income _{12 786 4 6% 15 285 4 8% 19 5%}

Net Interest Income _{12,786  4.6% 15,285  4.8% 19.5%}

Other Operating Income _{3,163  1.1% 4,653  1.5% 47.1%}

Gain from Increase in Value  & Sale of Bonds _{228  0.1% ‐ 0.0% (100.0%)}

Provisions, Net (1,740) (0.6%) (2,595) (0.8%) 49.1%

Personnel Expenses _{(4,029) (1.4%) (4,564) (1.4%) 13.3%}

G & A Expenses _{(3 422) (1 2%) (3 862) (1 2%) 12 9%}

G & A Expenses _{(3,422) (1.2%) (3,862) (1.2%) 12.9%} Other Operating Expenses** _{(774) (0.3%) (1,006) (0.3%) 30.0%}

Profit from Operations _{6,212  2.2% 7,911  2.5% 27.4%}

Non Operating Income _{121  0.0% 158  0.0% 30.6%}

Net Income Before Tax _{6,333  2.3% 8,069  2.5% 27.4%}

f

49

Net Income After Tax _{4,346  1.6% 5,313  1.7% 22.3%}

*  % of Average Assets on an annualized basis

T

o

tal

 

A

ss

e

ts

 

ro

se

 

1

2

.5

%

 

to

 

R

p

3

5

8

.5

 

tn

in

 

Q

4

 

‘0

8

95. 3 3 0 3 6 0 In t.   fr o m   B o n d s In t.   fr o m   Lo an s 6 91.1 75.5 66.7 67.4 7 2 7 0 3 0 0 3 3 0 44.0 43.0 4 1 1 1 11 1 11 12 138.5 135.5 149.6 162.8 174.5 27.0 33.4 60.5 36.1 50.6 60.7 64.5 57.6 55.1 54.0 59.2 56.1 59.2 61.2 2 1 0 2 4 0 7 5 .4 % 7 4 .1 % 6 0 .6 % (Rp tn ) 0 0 48.3 65.4 75.9 94.4 106.9 105.1 107.8 108.8 17.7 14.3 16.3 1.7 5 5 1 2 0 1 5 0 1 8 0 4 7 .1 % 5 0 .0 % 4 6 .9 % 5 0 .1 % 5 2 .2 % 5 6 .8 % 5 8 .8 % 5 9 .1 % Tot al   Ass ets   6 0 9 0 1 2 0 4 0 .9 % 4 1 .0 % 3 4 .8 % 3 1 .0 % 3 2 .3 % 3 2 .4 % 2 9 .3 % 1 9 .0 % 1 9 .0 % 3 4 .1 % 4 0 .6 % 177.4 176.9 153.5 148.8 122.9 93.1 92.1 92.2 92.3 91.0 90.6 90.6 89.5 90.8 89.5 88.6 88.4 88.5 88.3 0 3 0 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

4 '99

4 '00

4 '01

4 '02

4 '03

4 '04

4 '05

1 '06

2 '06

3 '06

4 '06

1 '07

2 '07

3 '07

4 '07

1 '08

2 '08

3 '08

4 '08

Addition