PT Bank Mandiri (Persero)
PT Bank Mandiri (Persero)
Tbk
Tbk
.
.
Audited Results & Financial Performance for
First Half Year Ended 30 June 2003
Mandiri at a Glance
Assets - Market Share as of Mar 2003 (1)
Other Indonesian Banks IDR 354 tn
10.7% 10.6%
7.8%
4.3% 3.4% 23.5%
Mandiri BNI BCA BRI Danamon BII
Formed in 1999
Dominant market position
¾ Largest bank in terms of
31 March 2003 IDR tn US$ bn(3)
Assets 258.1 29.0
Loans 66.9 7.5
Deposits 186.3 20.9
¾ Strong brand recognition
Extensive infrastructure
¾ Nationwide reach with 691 branches and 1,574 ATMs as of June 30 2003
¾ Centralised online system
Large customer base
¾ 6.8 mn active deposit accounts
¾ Strong and deep relationships with Government and corporate borrowers
¾ Strong momentum in commercial and consumer segments
Bank Mandiri
IDR 67 tn Bank Mandiri IDR186 tn
Other Indonesian Banks IDR 647 tn
16% 84%
22%
78%
Growing Loan Book is Generating Higher
Loan to Deposit Ratio
41.2
43.0
49.2
48.3
50.4
65.4
66.8
26.3%
28.3%
25.3%
27.5%
35.4%
36.2%
26.7%
0
10
20
30
40
50
60
70
80
1H2000 2H2000 1H2001 2H2001 1H2002 2H2002 1H2003
0%
5%
10%
15%
20%
25%
30%
35%
40%
Loans LDR
Loans, Rp. Trillion
LDR Ratio
(1.8%) 14.4%
4.4% 4.3% 29.8% 2.1%
Loan Origination Remains Strong in the First Half
IDR tn
Total Loan Growth (Jan-Jun 2003, IDR tn) – Bank Only
63,941
0
64,885
4,609
724
987
1,954
Beg. Balance New Loans F/X Impact IBRA Purchases
Loans Written Off
Principal Collection
End Balance
Loan Portfolio Growth is Well Diversified
40.2
22.2
1.5 40.4
22.8
1.6
0 5 10 15 20 25 30 35 40 45
Corporate Commercial Consumer
2002
H1 2003
Breakdown By Sector, June 2003(1)
(1) As of June 2003; Non-consolidated numbers
Loan by Customer Type
IDR tn
F&B 6%
Textile 8%
Pulp& Paper 6%
Chemical 10%
Non metal mining
5% Trading,
Services 12% Agriculture
13%
Other Mfg 6%
Others, <5% each
25% Transport.,
Comms. 6%
Share of Loan Book, Jun. 2003
35.2% 2.5%
NPL Reduction
55.4%
9.2%
7.3% 7.3%
2.8% 1.9% 2.0%
9.7%
14.1%
19.8%
3.1%
5.6%
5.6%
222%
130% 123%
190%
178%
147%
81%
0% 10% 20% 30% 40% 50% 60%
H1 '00 H2 '00 H1 '01 H2 '01 H1 '02 H2 '02 H1 '03 0% 75% 150% 225%
Gross NPL Ratio Net NPL Ratio Prov / NPL
NPL Ratio
P
rovisioning Coverage
Asset Quality
3 pronged approach to improving asset quality
Conservative provisioning
¾ 178% coverage of NPLs as of June 30 2003
¾ Actual versus BI requirement was Rp. 4.5 trillion higher
Rigorous restructuring and recovery
¾ In H1 2003, IDR 0.1 tn of NPLs were restructured
¾ In H1 2003, IDR 0.5 tn of written-off loans and IDR 0.6 tn of NPLs were recovered
Risk management for new credit
¾ 4-Eyes principle
¾ Portfolio risk management
¾ Customer facilities rating
H1 2003 Movement in Performing and Non-Performing
Loans
409
59,214
60,061
1,774
3,966
1,754
Beg. Balance U/G from NPL D/G to NPL
Net
Disbursements
FX Impact
End Balance
Performing Loan Movements - Bank Only
IDR bn
Non-Performing Loan Movements – Bank Only
181
987
724
644
1,754
4,727
409
4,824
Beg. Balance U/G to PL D/G from PL
Net
Disbursements
Collections Write-Offs FX Impact End Balance
H1 2003 Movement in Category 1 and 2 Loans
43,102
1,172
3,185
99
223
2,162
2,529
44,623
Beg. Bal. D/G to Cat. 2 U/G from Cat. 2 D/G to NPL U/G from NPL
Net
Disbursements
FX Impact
End Bal.
Category 1 Loan Movements – Bank Only
IDR bn
Category 2 Loan Movements – Bank Only
602
781
308
1,530
2,162
2,529
16,113
15,438
Beg. Bal. Cat. 1 D/G U/G to Cat. 1 D/G to NPL NPL U/G Net Disbursements
73.4%
67.1% 68.0% 68.6% 67.7% 66.0% 62.8%
10.8%
11.0% 11.4% 11.7% 13.5% 16.3% 17.7%
15.8%
21.9% 20.6% 19.7% 18.8% 17.7% 19.5%
0%
20%
40%
60%
80%
100%
H1 2000
H2 2000
H1 2001
H2 2001
H1 2002
H2 2002
H1 2003
Time
Savings
Demand
0% 20% 40% 60% 80% 100%
Funding Mix Improves
163 190
154 174 183 184 184
Total (Rp Tr)
Deposit Analysis(1)
Consumer & Commercial Deposits
By Depo
sit Type
Savings Deposit Growth Generating a Better Funding Mix
22.3
24.7
29.9
32.5
16.6
19.8 18.0
11.0% 11.4% 11.7%
13.5%
16.3%
17.7%
10.8%
0
5
10
15
20
25
30
35
40
H1 2000
H2 2000
H1 2001
H2 2001
H1 2002
H2 2002
H1 2003
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Savings Deposits, Rp. Trillion
%
o
f Total Deposits
8.5% 9.9% 12.6% 10.7% 21.3% 8.7%
Enhanced Distribution System
Prior to Legal Merger Prior to Legal
Merger June 2003June 2003
406 full fledged branches
174 sub branches
160 cash outlets
513 ATMs
54 hubs
422 spokes
215 cash outlets
1,574 ATMs
Enhanced Distribution Network
1,574 533 1,184 1,559 248 176 63 16 0 500 1,000 1,500 2,000 2,500
2000 2001 2002 H1 2003
0 50 100 150 200 250
ATMs ATM Transactions ('000)
# of Distribution Outlets
Avg. Daily
ATM
Trans
a
c
tion Volume (‘00
0)
15-fold increase in electronic transactions
within 2.5 years
ATM Transaction Growth
Distribution Capability ATMs ATMs Cash Cash Outlets Outlets Tele
Tele- -banking banking Mobile Mobile Banking Banking Internet Internet Banking
Banking(1)(1)
Branches Branches Distribution Distribution Capability Capability CBCs
CBCs Priority Priority
Banking
Banking
Recap Bond Portfolio
AFS 21.5% HTM 75.5% Trading 3.0% Fixed 26.6% Variable 64.4% Hedge 9.0%Breakdown as of Jun 2003
> 5 Years 87.8%
< 1 Year 1.7%
1 - 5 Years 10.5%
During H1 2003, we sold Rp. 13.29 trillion in Re-cap bonds, with an aggregate realized 1.2 137.0 135.8 (2.7) 148.8 151.5 (7.3) 153.5 160.8 Total 0.0 103.4 103.4 0.0 108.0 108.0 0.0 114.3 114.3 Held to Maturity
1.1 29.5 28.4 (2.2) 31.6 33.8 (5.0) 31.2 36.2 Available for Sale
Summary P&L Information
0.1 90 0.8 950 0.2 288Non Operating Income
(0.2) (308) (0.8) (937) (0.3) (421)
Other Operating Expenses
2.5 3,147 2.3 2,830 2.3 2,980
Net Income Before Tax
(0.7) (857) (1.0) (1,213) (0.7) (847)
G & A Expenses
(0.7) (894) (0.7) (837) (0.6) (729) Personnel Expenses 0.2 283 0.2 288 1.0 1,243
Unrealized Gain/Loss in Value of Bonds
(0.7) (917) (0.3) (347) (0.5) (590) Provisions, Net 1.7 2,239 1.5 1,815 1.4 1,770
Net Income After Tax
2.4 3,057 1.5 1,880 2.1 2,692
Profit from Operations
1.1 1,364 0.2 295 0.2 195
Realized Gain from Sale of Bonds
0.6 746 0.8 999 0.5 613
Other Operating Income
2.8 3,641 2.9 3.633 2.5 3,229
Net Interest Income
(8.1) (10,406) (9.3) (11,626) (10.4) (13,390) Interest Expense 11.0 14,047 12.2 15,259 12.9 16,620 Interest Income
% of Av. Assets Rp (Billions) % of Av.Assets Rp (Billions) % of Av.Assets* Rp (Billions) H1 2003 H2 2002 H1 2002
26.4%(2) 23.4% 29.8% Total CAR 16.2%(2) 15.2% 19.6%
Tier 1 CAR
178%
190%
123%
NPL Provisions / NPLs
39.9%
44.3%
41.0%
Cost to Income(1)
24.5%
26.2%
27.6%
RoE – after tax
2.5%
2.3%
2.3%
RoA - before tax
1,052
722
696
Book Value/Share (Rp) (3)
112
90
89
EPS (Rp) (3)
7.3%
7.3%
9.1%
Gross NPL / Total Loans
3.1% 2.9% 2.7% NIM 184.4 184.1 183.4 Customer Deposits 257.8 250.4 248.9 Total Assets 137.0 148.8 153.9 Government Bonds 66.8 65.4 50.4 Gross Loans H1 2003 H2 2002 H1 2002 IDR tn / %
Key Balance Sheet Items and Financial Ratios
Strongly capitalised
Converting Government bonds into profitable loans
Improving performance ratios
Track record of earning growth
Landmark financing transactions
¾ US$ 125 mn (FRN 2001)
¾ US$ 125 mn (Sub Debt 2002)
¾ US$ 300 mn (MTN 2003)
July IPO was Indonesia’s largest post-crisis
¾ Upsized from 15% to 20% due to demand
¾ Over-subscribed by 7.2 times
71.7% 74.1% 70.4%
62.4% 65.3%
62.2% 57.0%
27.0% 26.8%
20.7%
17.0% 17.8% 19.9%
19.1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
H1 2000 H2 2000 H1 2001 H2 2001 H1 2002 H2 2002 H1 2003
E
a
rn
in
g A
sset
s (
%
Government Bond Loans Other Assets
19.8% 19.0% 18.1% 19.0% 19.3% 22.1%
29.9%
74.1%
63.6% 67.8%
68.2% 74.9% 75.4% 74.7%
0% 20% 40% 60% 80% 100% 120%
Int. from Bonds Int. from Loans
As a
%
of Total Interest Income
44.0 42.6
49.9
58.1
56.1
72.5
79.5
15.4 16.8 17.0
21.0 14.5
13.3 9.7
0
20
40
60
80
H1 2000
H2 2000
H1 2001
H2 2001
H1 2002
H2 2002
1H2003
21.9%
31.3%
28.5%
26.4%
29.8%
23.4%
26.4%
5% 10% 15% 20% 25% 30% 35%
CAR BI Min Req
A Strong Capital Base to Support Growth
RWA/Total Capital, Rp. Trillion
3.0%
2.7%
2.9%
3.1%
2.9%
2.7%
0.0% 0.4% 0.8% 1.2% 1.6% 2.0% 2.4% 2.8% 3.2%
13.8% 13.3%
11.7%
0.8% 1.0%
1.3% 1.8%
2.1%
2.2%
2.4%
11.1% 11.5%
12.5%
13.1%
10.3% 10.5% 11.3% 11.4%
11.7%
11.1%
9.3%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
H1 2000
H2 2000
H1 2001
H2 2001
H1 2002
H2 2002
1H2003
= Average Yield of Earning Assets
= Average Cost of Funds
= Interest Spread
Maintaining Margins Despite a Fluctuating Interest Rate
Net Intere
st Ma
rgins
103
227
109
297
159
404
246
148
475
285
804
340 306
224 8.0%
10.2%
12.6%
15.8%
14.7%
8.8% 8.0%
0
300
600
900
H1 2000 H2 2000 H1 2001 H2 2001 H1 2002 H2 2002 H1 2003
-2.5%
2.5%
7.5%
12.5%
17.5%
Loan related Fees Non-loan related Fees
Fees & Commissions / Operating Income(1)
IDR bn
695
1,168
587
1,083
729
837
894
655
695
752
995
847
1,213
857
-1,000 2,000 3,000 4,000 5,000
H1 2000 H2 2000 H1 2001 H2 2001 H1 2002 H2 2002 1H2003
Personnel Expenses G&A Expenses
Overhead Spending Remains Under Control Despite Heavy
Investment in Brand & IT Platform
27.8%
33.4%
45.6%
41.0%
44.3%
39.9%
37.1%
0% 10% 20% 30% 40% 50%
Overhead Cost (Rp.Billion)
Cost to In
come Ratio
Consistent Improvement in Profitability
762
1,608
1,770
2,239
420
1,138
1,816
0
2,500
5,000
7,500
2000
2001
2002
H1 2003
H1 PAT H2 PAT
Profit after Tax
Return on Equity
IDR bn
9.7%
21.5%
26.2%
24.5%
Upcoming Corporate Actions
Dividends
Dividends
Quasi-Reorganization
Quasi-Reorganization
The Bank is in the process of preparing for a Quasi-Reorganization, which is planned for submission to shareholders at an EGM in Q4 2003
Dividends may only be paid from profits booked after the effective date of the quasi-reorganization
Our intention in respect of dividends, as described in our IPO Prospectus, remains unchanged, i.e.
¾ Total dividend payout of 50% of audited net profit for the year
¾ Interim dividend payment [currently planned for Q4]
EGM
September 29 2003
EGM
September 29 2003
Proposed Agenda:
¾ Appointment of Directors and Commissioners
¾ Appointment of Auditors for 2003
21
Question &
PT Bank Mandiri (Persero)
PT Bank Mandiri (Persero)
Tbk
Tbk
.
.
CLSA Investors’ Forum 2003