Company Profile
1Q14 Results
2
Year Established
Listing at the Bourse
Asset
Branches
ATMs
Shareholders
Corporate Rating
Sub Debt Rating
Background
1955
Since 1990 at the Jakarta Stock
Exchange and Surabaya Stock Exchange
(both merged and now known as the
Indonesian Stock Exchange (BEI)
Rp 167 tn (consolidated)
•
302 conventional
•
16 Sharia
•
20 mobile branches
915 and additional access to >50,000
ATMs*
•
PT Astra International Tbk (44.56%)
•
Standard Chartered Bank (44.56%)
•
Public 10.88%
Id AA+ (Pefindo)
AAA(idn) (Fitch)
Id AA
(Pefindo)
§
A major conglomerate with one of the
largest market caps in Indonesia
§
Six business lines in >170 companies
§
Strong reputation in Corporate Governance
and CSR
§
An international Bank with global experience
§
Innovative banking products & services
§
Strong reputation in risk management
Major Shareholders
3
Permata Today – Key facts and figures
Extensive Branch Network
• 318 branches (including 16 Sharia) • 276 Sharia Office Channeling • Branch coverage in 60 cities • Optimizing & expanding network
Service Excellence
• Leveraging well-recognized culture of Service Excellence
• Various Awards & Accolades for Service Quality – notably, Best Call Center Award for 9th consecutive year
Comprehensive Delivery
Channels
• 915 proprietary ATMs
• Access to over 50,000 joint ATMs • Best Mobile Banking in Asia Pacific
(Asian Banker Award 2011) • Extensive internet banking
Astra International and
Standard Chartered Bank as
Unique Shareholders
• Unique market positioning • Various Synergy opportunities • Best practice transfer
Business
• Full service Consumer and Commercial segment.
• Large presence in SME and a rapidly growing sharia banking business.
Key Facts
• 7thlargest bank in Indonesia
4
Pefindo Rating (October 2013)
Corporate Rating
id AA+ / Stable outlook
Subordinated Bonds
id AA
Fitch Ratings (November 2013)
National Long Term Rating
AAA(idn) / Stable outlook
Moody’s Investor Services (May 2013)
Bank Financial Strength Rating (BFSR)
D / Stable outlook
Baseline Credit Assessment (BCA)
Ba2
Adjusted Baseline Credit Assessment (ABCA)
Ba1
Long-/Short-term Foreign Currency Deposits
Baa3 / Prime-3 / Stable outlook
Long-/Short-term Global Local Currency
Baa3 / Prime-3 / Stable outlook
Rating Agencies
Rating Agencies
Rating/outlook
Rating / Outlook
5
§
§
Loans including Sharia financing up 20% yoy Rp. 121 tn.
§
Deposits including Sharia funding up 16% yoy to Rp. 129 tn.
§
Gross and Net NPL ratios improved to 1.0% and 0.3% from 1.3% and 0.4%,
respectively, a year prior.
§
Consolidated total asset up 21% yoy to Rp. 167 tn, currently the seventh largest
Bank in Indonesia
§
CAR registered at 14.5% with tier-1 CAR of 9.8% (Bank only).
§
Shareholders’ equity grew 25% yoy to Rp. 16.0 trillion at end-March 2014, driven by
Rights Issue in early 2014.
§
Net Interest Income up 7% yoy to Rp. 1.3 tn.
§
Fee Based Income up 11% yoy to Rp. 372 bn.
§
Pre-Provision Operating Profit up 11% to Rp. 618 bn.
§
Net Profit After Tax up 3% yoy to Rp. 367 bn.
Financial Highlights
Well Capitalized
Improving
Profitability
Balance Sheet
6
Net Interest Income
Other Operating Income
Total Revenue
Operating expenses
Pre Provision Operating Profit
Provision Expense
Operating Profit
Non Operating Income
Profit Before Tax
Net Profit After Tax
Income Statement Highlights
IDR bn
Δ YoY
Source: Permatabank Published Report - consolidated
1Q13
1Q14
1,200
334
1,534
978
557
94
463
14
477
356
1,284
372
1,656
1,039
618
152
466
30
495
367
7%
11%
8%
6%
11%
62%
1%
116%
4%
7
Balance Sheet Highlights
Total Assets
Loans (gross)
Deposits
CASA
Time Deposits
Sharia
Subordinated Debt
Senior Bond
Equity
IDR bn
Δ YoY
Source: Permatabank Published Report - consolidated
1Q13
1Q14
138,090
100,684
111,626
39,531
62,415
9,679
5,898
0
12,839
167,325
121,077
129,161
42,520
75,673
10,968
6,921
1,362
16,035
21%
20%
16%
8%
21%
13%
17%
100%
8
Key Ratios
Net Interest Margin
LDR
CAR
ROA
ROE
NPL - Gross
NPL - Net
%
Δ YoY
(bps)
Source: Permatabank Published Report – Bank
1Q13
1Q14
4.2
89.9
16.2
1.4
13.2
1.3
0.4
3.4
93.5
14.5
1.2
10.9
1.0
0.3
(83)
357
(173)
(19)
(234)
(28)
9
Good Profitability
Net Profit Remains on the Upside
Return on Asset (ROA) (%)
Net Interest Margin (NIM) (%)
Net Profit (IDR Bn)
Source: Permatabank Published Report – Consolidated
Return on Equity (ROE) (%)
22.8% 15.9%
17.5% 15.7% 10.9%
2010
2011
2012
2013
1Q14
2.0% 1.7% 1.7% 1.5% 1.2%
2010
2011
2012
2013
1Q14
5.3% 5.1% 5.0% 4.2%
3.4%
2010
2011
2012
2013
1Q14
1,011 1,157
1,368
1,726 367
10
Sustainable Balance Sheet Growth
Balanced growth on Both Assets and Liabilities Sides
Total Asset (IDR Bn)
Deposits (IDR Bn)
Loans (IDR Bn)
Source: Permatabank Published Report – Consolidated
73,851
101,324
131,799
165,834 167,325
2010
2011
2012
2013
1Q14
59,385
82,636
104,740
132,765 129,161
2010
2011
2012
2013
1Q14
52,840
69,263
94,425
118,830 121,077
11 IDR
79% FCY
21%
Loan Breakdown by Economic Sectors (%)
Loan Breakdown by Currencies (%)
Personal Loans for mortgages, vehicles and others
21%
Manufacturing 24%
Wholesale & Retail Trading
21% Real Estate,
Leasing & Corporate Services
8% Mining & Excavation
4% Transportation,
Warehouse & Communication
7%
Construction 4% Financial Brokerage
3%
Agriculture 3%
Others 5%
Optimalization of Intermediation Function
Loan Diversification to Various Sectors
12
2.7%
2.0%
1.4%
1.0% 1.0% 0.7% 0.6%
0.4% 0.3% 0.3%
2010 2011 2012 2013 1Q14
Gross NPL Net NPL
Healthy Asset Quality and Strong Capitalization
NPL Gross and Net Keep Decreasing Whilst CAR on the Upside
Capital Adequacy Ratio (CAR) (%)
14.1% 14.1%
15.9% 14.3%
14.5%
2010
2011
2012
2013
1Q14
NPL
(%)
94.9%
4.1%
1.0%
Current Special Mention NPL
Loan Based on Collectibility (%)
13
PermataBank in Brief
♦
PermataBank was created by a merger of 5 banks in 2002 with Bank Bali and Bank Universal being the
biggest and together accounting for roughly 80% + of the new institution. All five banks had been taken
over by the government and the new institution was 100% owned by GOI. “Permata” was named by the
then lady President, Ibu Megawati, and Permata in Bahasa means “jewel”.
♦
In October 2004, Standard Chartered Bank along with Astra International formed a consortium that took
over a 51% stake in the Bank. They added further to that stake in December 2005 and then finally in
October 2006 the Government fully divested and the consortium increased its stake to 89%.
Brief History
♦
PermataBank is a leading privately-owned national bank in Indonesia, seventh largest in the industry in
terms of assets.
♦
PermataBank’s focus is very much on the Bank’s strengths as well as Indonesia’s historical strengths being
the consumer and commercial segments.
♦
We provide a full range of innovative products and services which we continue to add to.
Current
position
PermataBank is well positioned in a rapidly changing and challenging market.
Some of the key points regarding this are:
♦
Huge population of Indonesia.
♦
Member of G20 since 2009 – currently 16th largest GDP in the world
♦
Solid, high economic growth in Indonesia is likely to continue
♦
Interesting demographics - Rising middle class continue to support growth in consumption
♦
Consistently strong loan growth due to low credit penetration as percentage of GDP
♦
Improving political climate
♦
The Banking sector is still very much open to growth opportunities.
14
Current Ownership
History
44.56%
44.56%
Consortium 89%
PermataBank formed from 5 legacy banks
PT Bank Bali Tbk
PT Bank Prima Express
PT Bank Patriot PT Bank
Universal Tbk
PT Bank Artamedia
Public
15
Milestones
♦
As a leading private bank in Indonesia, PermataBank provides comprehensive and innovative products and services,
especially in the area of high-tech delivery channels including Internet Banking and Mobile Banking.
♦
PermataBank is uniquely positioned in the Indonesian Banking industry, as the only Bank with Astra International and
Standard Chartered Bank as its strategic shareholders, providing unparalleled opportunity for various synergy initiatives.
1957 1971
1990
2010
§ IPO on JSX & SSX
§ Changed name to PT Bank Bali
1999
2006
§ Merged with Bank Universal, Bank Patriot, Bank Prima Express & Bank Artamedia to became PermataBank.
§ Indonesian Banks Restructuring Agency (IBRA), recapitalized the Bank and became the majority
shareholder with 59.25% ownership
2002
§ Post Merger Integration, asset restructuring, new Brand socialization, branch and human resource rationalization & product harmonization programs.
§ Open system banking platform deployment.
2003
2004
§ Reverse stock split
§ GOI divestment of 52% shareholding to
Standard Chartered Bank & Astra
International consortium. By EOY, share
ownership increased to 63.1%. §Consortium increased share ownership to 89.01%. §10NC5 Subordinated Debt I Offering to General Public for IDR 500bn
§ USD 100mn 12NC7 subordinated MTN issuance through private placement. Astra & SCB acted as principal buyers.
§ Launching of Permata Priority, an enhancement of Permata Kencana.
§ Established as a private Bank in Indonesia under the name “PT Bank Persatuan Dagang
Indonesia”.
§ IDR 700bn 10-yr bullet subordinated MTN issuance. SCB acted as the sole buyer.
§ IDR 2tn Rights Issue. Consortium increased share ownership to 89.03%.
§ Completed acquisition of PT GE Finance Indonesia
2009
2011
§ IDR 1.75tn 7-yr Subordinated Debt II issuance to public.
§ GEFI integration
§ For first time reached Rp. 100tn in total assets.
2013
§ IDR 2tn Rights Issue and IDR 2.5tn Bonds Program to strengthen capital.
2012
§ IDR 1.5tn Rights Issue VI.
§ IDR 1.368tn Senior Bonds and IDR 860bn Sub-Debt issuance to public
§ Announced intent to acquire 25% of PT Astra Sedaya Finance
2014
§ Seventh largest bank in terms of asset
16
The strong combination of our two majority shareholders, Astra International as a large-scale Indonesian
company with extensive experience in the domestic market and Standard Chartered Bank as a
well-respected international bank with market leading expertise and global experience, has become one of
our core strengths and placed us in a unique position.
Two Majority Shareholders: A Perfect Combination
• One of Indonesia’s largest Conglomerate with six business lines
• Employs >185,000 people in >170 companies
• Nationwide network reach
• Local Insights
• Vast Business Synergies
• Best practices
• Leading international banking group
• Worldwide network footprint in ~70 countries, predominantly in Asia, Africa and the Middle East.
• Deep local experience
• Knowledge in innovative products & services
• Best practices in banking including risk, finance and compliance.
General
Public
17
What We Stand for
Regulators
Exemplary
corporate
governance and
ethical standard
in conducting our
business.
Shareholders
Delivering
superior
performance and
return while
developing a
sustainable
franchise.
Communities
Responsible and
committed
community
member. Seek
opportunities to
support
community
development.
Our People
Investing in our
people and
enabling them to
learn and grow to
make a
difference.
Customers
Committed to
exceed
customers’
expectation.
Commitment to
Stakeholders
Performance Delivery
Continuously improving the way
we work, delivering flawless
execution and promoting a high
performance culture through
reward and recognition.
One Bank
Working together as one
winning team and adopting the
mindset of ‘One Bank’ in
delivering the best outcome for
our customers
Customer Focus
Putting customers at the
heart of our service
Approach
Caring
Innovation
Responsiveness
Excellence
Values
Menjadikan hidup lebih bernilai
Adding value to life
Brand Promise
Pelopor dalam memberikan solusi finansial yang inovatif
To be the leader in delivering innovative financial solutions
Vision
18
Majority Shareholders with High Reputation
Providing Vast Synergy Opportunities
Extensive Branch Network and
Comprehensive Delivery Channel with
e-Channel Capabilities as Strong Differentiator
Various Products and Services Coupled with
Service Excellence
19
Leveraging Our Core Strengths
♦ PermataBank has an extensive branch network and is continuously optimizing, expanding and leveraging through investments, which will strengthen its advantage in payments and distribution capabilities.
♦ By expanding its branch footprint, PermataBank is introducing its unique Banking services to more regional cities and more customers across Indonesia.
♦ This enhanced Branch Network is supported with the latest banking technology and gives the Bank wider accessibility to its customers.
♦ PermataBank has developed tremendous capabilities through its ATMs, Electronic Data capture (EDC) and mobile banking, hence strengthened the Bank's competitive positioning in the industry.
Extensive Branch Network and Comprehensive Delivery Channels
♦ PermataBank provides customers with a complete suite of innovative products and services to meet their needs.
♦ PermataBank is well recognized in the market for its culture of service excellence, which has been developed and leveraged over time.
♦ External recognitions for service excellence including first position among all industries at CSSL’s Annual Call Center Award for Service Excellence for outstanding service quality.
Various Products and Services and Service Excellence
♦ PermataBank continuously build its capabilities in the areas of risk management
♦ The Bank’s Risk Management Framework (“RMF”) sets out the Bank’s approach to risk management and the control framework within which risks are managed and risk-return tradeoffs are made.
♦ PermataBank has applied a comprehensive risk management information system capable of identifying, measuring, monitoring and controlling risks of the Bank.
Strong Risk Management
♦ PermataBank has full unwavering support from its strategic shareholders: Standard Chartered Bank and Astra International. ♦ With Standard Chartered Bank, PermataBank clearly has a true international bank that provides an international network,
international experience and know how, access to innovative products and services, systems, best practice across many disciplines and experienced bankers.
♦ With Astra, PermataBank has a dominant Indonesian corporate that brings true local insight and understanding to doing business in Indonesia. In addition, there are various synergy opportunities with Astra International.
Unique Main Shareholders
20
Risk Management – The Foundation of Growth
• All risk taking must be transparent, controlled and reported
• PermataBank has identified 19 risk categories to be managed. These risk categories are managed through the Risk Management
Framework which is described as follows:
21
Strong Focus on Corporate Governance
PermataBank’s corporate governance is intended to bring about corporate fairness,
transparency and accountability
Committees under the Board of Commissioners
Committees under the Board of Directors
Audit Committee
•
Review
the level of adequacy and
effectiveness of internal control
mechanisms.
•
Review
the adequacy of measures taken
by management to follow-up
recommendations made by the internal and
external auditors.
•
Review the quality of the internal audit
function.
•
Assess the quality of the external auditor’s
performance
Risk Monitoring Committee
♦
Evaluate the consistency between risk
management policies and the
implementation of policies.
♦
Perform monitoring and evaluation of
the performance of duties by the Risk
Management Committee and Risk
Management Unit, to be
recommended to the BOC.
Remuneration & Nomination Committee
•
Performs evaluation and provide
recommendations to the BOC on
remuneration policies and program to ensure
competitiveness, long-term business
success, shareholder interest and a strong
pay-for-performance link
•
Preparing for and providing to the BOC
recommendations on systems and
procedures for selecting members of BOD
and BOC to be proposed at GMS.
Credit Policy Committee
This governance structure enhances the implementation of duties & responsibilities
of the BOC and BOD
Fraud Oversight Committee
Human Resources and Pension
Committee
22
Board of Commissioners
Cheng Teck Lim
1)/President Commissioner/
Joined Standard Chartered Bank in 1989 and has since held a variety of strategic roles within Standard Chartered Group. Currently serves as Executive Vice Chairman and Chief Executive Officer of Standard Chartered Bank China.
Lukita Dinarsyah Tuwo
/Independent Commissioner/Joined the National Planning Agency (Bappenas) since 1987 and has held various positions in the agency before appointed as the Deputy Minister of Bappenas.
David Allen Worth
/Independent Commissioner/Started his career in 1986 at the First interstate Bank in California, joined SCB in 1993 and has since held various senior positions in the field of trading and derivatives.
A. Tony Prasetiantono
/Independent Commissioner/Previously served as the Independent Comissioner of Bank Mandiri, Chief Economist of Bank BNI.and member of Information Committee at Lembaga Penjamin Simpanan. Today serves as a lecturer at the Faculty of Economics & Business and Director of the Center for Economic & Public Policy at Gadjah Mada University (UGM).
I. Supomo
/Independent Commissioner/
Previously served as Managing Director at Bank BNI, Bank Mandiri and SEVP at Bank Dagang Negara. He currently serves as the Director at LPPI and Senior Administrator in ISEI and IBI.
Gunawan Geniusahardja
2)/Deputy President Commissioner/
Joined PT. Astra International Tbk in 1981, served as Director of PT. Astra International Tbk since 2001. He currently serves as Commissioner and Director of various companies under the Astra International group.
Mark Spencer Greenberg
/Commissioner/Currently serves as the Group Strategy Director, Jardine Matheson Holdings and Director of Jardine Matheson Limited, Dairy Farm, Hong kong Land, Mandarin Oriental and Commissioner of PT. Astra International Tbk.
Neeraj Swaroop
/Commissioner/An experienced international banker with over 20 years in various senior management positions.
.
1) The appointment of Cheng Teck Lim as President Commissioner of the Bank is subject to regulatory approval
23
Board of Directors
Tjioe Mei Tjuen
/Technology and Operations Director/
Over 30 years of experience in technology and operations, gained in wide-ranging senior appointments especially in the Indonesia banking industry. Previously served as Director of Operations at Bank Ekonomi Raharja.
Mirah Wiryoatmodjo
/Compliance Director/More than 22 years of experience in financial industry including banking especially in the areas of operations, risk and compliance. Previously served as Compliance Director at Citibank NA Indonesia.
Roy Arman Arfandy
1) 2)/Vice President Director/
Previously served as the Wholesale Banking Director in PermataBank. Having banking experience for more than 19 years including at Bank DBS Indonesia, Bank Mizuho, Bank Dai-chi Kangyo Indonesia, BDNI and Bank Danamon.
Sandeep Kumar Jain
/Finance Director/A senior international banker with 25 years of experience in many global strategic roles in Finance. Previously served as the Regional CFO of Europe and America at SCB.
Indri Koesindrijastoeti Hidayat
/HR Director/Extensive experience in human resource management from past work experience including as the HR Director of PT. Rajawali Corporation. She also held various positions at IBM Indonesia, Freeport Indonesia, Keramika Indonesia Association, Citibank and Dexa Medica.
Michael A. Coye
/Risk Director/More than 30 years of experience in various senior
management positions at financial institutions including SCB and Citibank. Previously served as the Chief Risk Officer of SCB Taiwan.
Achmad Kusna Permana
/Sharia Banking Director/Previously served as the Head of Sharia Banking in PermataBank. More than 20 years of experience in various management positions in the banking industry including at Bank Bali, HSBC Indonesia and Bank Danamon.
Bianto Surodjo
/Retail Banking Director/Previously served as Head, Wealth Management, Retail Liabilities Product & E-Channel. Extensive experience in banking from past work experience including in the ABN Amro Bank NV, Bank International Indonesia and Bank Barclays Indonesia
1) The appointment of Roy Arman Arfandy as Vice President Director of the Bank is subject to regulatory approval
24
• Members of the BOC & BOD are very competence in their respective areas, as well as have the integrity and very good reputation. Oversight/ monitoring function, performed both directly and through the Committees.
• The infrastructure and soft –structure are comprehensive and fully complimented with competence and independent of the Committee members to enable effective execution of duties.
• The Appointment of Compliance Director
• Independency of Compliance and Internal Audit
• PermataBank has operated a comprehensive risk management system and is able to identify, measure, monitor & control Bank risks.
• PermataBank continuously considers capacity of capital and distribution/ diversification of portfolio
• Business Plan has been prepared in realistic manner, comprehensive and measurable conditions and with consideration to the prudential principle.
• Timely & accurate disclosure is made in material matters regarding the corporation, including the financial condition, performance, ownership, and governance
• The BOC & BOD are highly committed to continuously enforce GCG practices in line the highest standards as reference for optimal governance and compliance.
• The Committees under the BOC & BOD have actively provided input or recommendation to support the performance of duties & responsibilities of the BOC&BOD
• Appointment of Public Accountant by GMS is based on Audit Committee’s recommendation with the purpose of providing assurance to all stakeholders that Financial Statement has fairly represented the financial condition and performance of PermataBank.
• Robust Internal control system through implementation of three layers of assurance.
• PermataBank persistently adheres to the prudential principle and risk management practices in providing funds, particularly lending to related parties and large exposures.
• The Business Plan had been approved by the BOC and communicated to the shareholders through the AGMS.
• Information disseminated to the public through publication of the Financial Report, Annual Report, web site, submission of corporate action through the Capital Market Supervisory Agency & Stock Exchange
Implementation of duties & responsibilities
by BOC & BOD
Completeness and implementation of the duties of Committees
Performance of Compliance, Internal &
External Auditor Function
Implementation of Good Corporate Governance
Provision of Funds to Related Party & Large
Exposure
Strategic Plan
Transparency in financial & non financial
25
The result of Self Assessment on GCG implementation 2013
based on BI Regulation
Composite Score
: 2
Composite Predicate : Good
Company with category “Trusted” 2013
Company with category “Trusted” 2007
Top 50 Listed Companies with the Highest Score for Corporate
Governance Based on Asean Corporate Governance
Scorecard Year 2014
The Best Corporate Governance 2013 category Best Equitable
Treatment of Shareholders
The Best Corporate Governance 2012 category Best
Shareholders’ Rights
Overall winner & 1st Place Winner – Listed Private Financial
category – Annual Report Award 2008
Ministry of Finance
Republic Indonesia
Bank Indonesia
