BJBR AM 3Q 2017 English

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Bigger, Stronger, Better

bank

bjb

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Macroeconomic

Source: Bloomberg Source: Bloomberg

Stable Consumer Confident Index BI 7 Day Reverse Repo Rate at 4.25%

IDR Appreciated Againts USD Inflation Reached 3.72% YoY in September

0

Consumer Confidence Index

0

CPI 1M JIBOR

0

(3)

Banking Sector

Aug ’16 Aug ’17 YoY (%)

Total Loans 4,177 4,527 8.38

Total Deposit 4,610 5,052 9.6

LDR 90.04 89.17 -0.87

NPL 3.22 3.05 -0.17

ROA 2.36 2.47 0.11

As of Aug 17, banking sector data shows:

•Loans +8.38%YoY to Rp4,527 tr (Investment loans +6.99% YoY, working capital +7.81% YoY, consumer loans +10.18% YoY)

•Deposit 9.60% YoY to Rp5,052 tr (CASA +8.53% YoY, Time Deposit +10.85%YoY, CASA Ratio 53.37%)

•NPL -0.17% YoY to 3.05% •ROA +0.11% YoY to 2.47%

Source: SPI OJK

-Investment Loans WC Loans Consumer Loans

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Result Summary

• Net Interest Income at Rp 4.7 tr (+3.5% YoY) • PPOP at Rp 2.0 tr (-4.1% YoY)

• LLP at Rp 543 bn (+3.0% YoY) • Net Income at Rp 1.1 tr (-8.0% YoY)

Income

Statement

• Total Loans at Rp 70.8 tr (+12.0% YoY) • Total Financing at Rp 5.4 tr (+2.1% YoY) • Total Deposits at Rp 92.3 tr (+18.2% YoY) • Total Asset at Rp 114.2 tr (+12.5% YoY)

Balance

Sheet

• NIM at 6.7% (-49 bps YoY) • ROA (Net) at 1.7% (-34 bps YoY) • ROE (Net) at 17.1% (-460 bps YoY) • NPL (Gross) at 1.5% (-20 bps YoY)

Ratios

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Target vs. Realization

(%) Target 3Q’16 4Q’16 1Q’17 2Q’17 3Q’17

Loans Growth 13% -14% 15.7 14.2 13.6 12.9 11.9

Deposit Growth 12% - 13% -5.2 16.1 4.9 15.9 18.6

ROA (net) 1.5% - 2.0% 2.1 1.7 1.8 1.8 1.7

ROE (net) 15% - 20% 21.7 17.6 17.3 17.3 17.1

NIM 6.5% - 7.0% 7.2 7.4 6.5 6.8 6.7

Cost of Fund 5.0% - 5.3% 5.0 4.9 5.3 5.1 5.1

Cost to Income

Ratio 60% - 65% 64.1 67.4 68.9 64.2 64.3

Gross NPL 2.0% - 2.5% 1.7 1.7 1.6 1.6 1.5

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Income Statement

Income Statement (Rp bn)

Positioning _YoY

(%) YoY

3Q’16 3Q’17

Interest Income 7,948 8,511 7.1% 563

Interest Expense 3,449 3,853 11.7% 404

Net Interest Income 4,498 4,658 3.5% 159

Fee Based Income 461 546 18.5% 85

Operating Expense 3,050 3,312 8.6% 261

Gain (Loss) on Financial Statement 144 77 -46.9% (68)

PPOP 2,053 1,969 -4.1% (84)

Loan Loss Provision (528) (543) 3.0% (16)

Non Operating Income (Expense) (50) (59) 19.0% (9)

PBT 1,476 1,366 -7.4% (110)

Tax Expense 312 295 -5.5% (17)

(7)

Balance Sheet

Balance Sheet

(Rp bn) 3Q’16 4Q’16 1Q’17 2Q’17 3Q’17

YoY (%)

Cash 1,978 2,215 1,803 3,448 1,789 -9.5%

Current Account with

Bank Indonesia 5,109 5,516 5,555 5,675 5,538 8.4%

Secondary Reserves 22,310 22,255 25,442 21,819 26,744 19.9%

Loans - net 62,581 62,755 62,474 67,641 70,297 12.3%

Financing - net 4,833 4,651 4,540 4,700 4,461 -7.7%

Fixed Asset - net 2,451 2,740 2,735 2,862 2,867 17.0%

Other Asset 2,306 2,186 2,216 2,454 2,516 9.1%

Total Asset 101,568 102,318 104,764 108,600 114,213 12.5%

Total Third Party Fund 78,117 78,483 84,391 85,376 92,327 18.2%

Marketable Securities

Issued 1,122 2,312 2,312 2,312 2,312 105.9%

Fund Borrowings 7,324 6,541 6,501 6,488 7,765 6.0%

Repo 3,923 2,671 - 2,913 -

-Others 1,428 2,638 2,305 1,781 1,836 28.6%

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Key Ratios (bank only)

Key Ratios 3Q’16 4Q’16 1Q’17 2Q’17 3Q’17

Profitability

ROA (net) 2.1 1.7 1.8 1.8 1.7

ROE (net) 21.7 17.6 17.3 17.3 17.1

Cost Ratios

Cost to Income Ratio 64.1 67.4 68.9 64.2 64.3

Expenses Ratio 77.4 82.7 79.1 80.2 80.5

Yield

Asset Yield 12.2 12.3 11.7 11.9 11.8

Cost of Fund 5.0 4.9 5.3 5.1 5.1

NIM 7.2 7.4 6.5 6.8 6.7

LDR 86.3 86.7 80.2 85.9 81.5

Asset Quality

Special Mention Loans 2.3 1.7 2.4 2.8 2.7

Gross NPL 1.7 1.7 1.6 1.6 1.5

Net NPL 0.7 0.7 0.9 0.9 0.9

Coverage Ratio 62.4 61.1 51.2 50.8 49.7

Provision/Total Loans 1.1 1.0 0.8 0.8 0.8

Capital

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Loans Breakdown (bank only)

Segment

(Rp bn) 3Q’16 3Q’17

YoY (%)

Consumer 42,824 46,776 9.2%

Micro 3,458 4,650 34.5%

Commercial 12,269 14,034 14.4%

Mortgage 4,472 5,077 13.5%

Total Gross Loans 63,023 70,537 11.9%

Currency

(Rp bn) 3Q’16 3Q’17

YoY (%)

IDR 62,622 70,149 12.0%

Forex 401 388 -3.2%

37.2 38.2 39.7 41.4

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Consumer Loans

Key Indicators 3Q’16 3Q’17 YoY

(%)

Loans Outstanding 42,824 46,776 9.2%

Net Expansion YtD

Interest Rate 14.50%-16.25% eff. p.a

Asset Quality 3Q’16 3Q’17 YoY

(%)

Civil Servant Loans (LHS) Pensioner Loans (LHS)

(11)

Micro Loans

(%)

Special Mention 3.2 1.0 -2.1

NPL 12.2 5.5 -6.6

(%)

Loans Outstanding 3,458 4,650 34.5 %

Net Expansion YtD

Interest Rate* 8.7% - 27.2% eff. p.a.

1.7

KMU (LHS) Govt Program (LHS)

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Commercial Loans

(%)

Net Expansion YtD

Interest Rate 8.3% -15.5% eff. p.a

(%)

Special Mention 2.2 2.7 +0.5

NPL 2.9 2.9

-Working Capital (LHS) Investment (LHS)

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Mortgage Loans

(%)

Net Expansion YtD

Interest Rate 7.0% - 13.5% eff. p.a.

(%)

Special Mention 16.5 13.8 -2.7

NPL 6.1 6.0 -0.2

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Deposit Breakdown (bank only)

Deposits Breakdown

(Rp bn)

3Q’16 3Q’17 YoY

(%)

Current Account 27,252 25,682 -5.8%

Saving Account 12,650 14,461 14.3%

Time Deposit 33,097 46,406 40.2%

TOTAL 72,999 86,550 18.6%

CASA Ratio (%) 54.7 46.4 -8.3

Currency

(Rp bn) 3Q’16 3Q’17

YoY (%)

IDR 72,302 85,998 18.9%

Forex 697 552 -20.9%

29.5

18.6 29.3

26.0 27.3

17.1

24.8 24.2 25.7

10.2

14.3 11.4

12.5 12.6

16.8

13.3 15.6 14.5

37.4

40.1 39.2 46.4

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Special Mention Loans

Consumer (LHS) Micro (LHS) Commercial (LHS)

Mortgage (LHS) % to Loans (RHS)

7 8 12 12

(16)

Absolute Non Performing Loans

Consumer (LHS) Micro (LHS) Commercial (LHS)

Mortgage (LHS) % to Loans (RHS)

2 2 4 3 4 3 4 8

(17)

Yield Analysis

Asset Yield

(%) 3Q’16 3Q’17

Placement to Bank Indonesia 1.7 2.4

Interbank Placement 3.3 3.3

Securities 7.2 6.9

Loans Yield 14.7 14.3

Others -

-Cost of Fund

(%) 3Q’16 3Q’17

Interbank Liabilities 5.2 4.8

Securities 9.0 9.7

Deposits From Customers 4.8 4.9

Current Account 2.0 1.8

Time Deposit 7.9 7.4

Savings Account 1.6 1.6

Loans received 5.2 5.4

Placement to BI

10.6% _Interbank

Placement 2.3%

Marketable Securities

Current Account 26.9%

Savings Account Time Deposit

48.5%

Interbank Lending 7.0%

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Capital Adequacy

Risk Weighted

Asset (RWA) 3Q’16 3Q’17

YoY (%)

Total RWA 46,108 52,760 14.4 %

Credit Risk 36,299 42,730 17.7 %

Operational Risk 9,157 9,157

-Market Risk 652 873 34.0 %

RWA/Total Asset 48.2% 49.0% +0.8%

tier-1 7,901 8,097 2.5 %

tier -2 454 534 17.7 %

Total Capital 8,355 8,631 3.3 %

Tier-1 CAR 17.1% 15.3% -1.8%

Total CAR 18.1% 16.4% -1.8%

CAR Analysis Risk

Weighting

Addition to RWA/ Rp1tr Net Expansion

Net Impact to CAR

(%)

Consumer Loans 50% Rp 500bn 0.15

Micro Loans 75% Rp 750bn 0.23

Commercial Loans 100% Rp 1tr 0.30

Mortgage Loans 40% Rp 400bn 0.12

•Total Capital to Rp 8.6 tr ( Rp 276 bn YoY)

(19)

(20)

Civil Servant Loans

(%)

Net Expansion YtD (Rp bn)

1,805 518 -71.3 %

Avg. Loans Outstanding

(Rp mn) 110 112 1.6 %

No of Account 328,606 332,356 1.1 %

Median Interest Rate 14.50%-16.25% eff. p.a

Asset

Quality 3Q’16 3Q’17 YoY

Special

(21)

Pensioner Loans

(%)

Loans

Outstanding 6,710 9,670 44.1 %

Net Expansion YtD

Median Interest

Rate 14.50%-18.48% eff. p.a

Asset

Quality 3Q’16 3Q’17 YoY

Special

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Sharia Business Performance

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Result Summary

• Net Financing Income at Rp 267bn (+7.3% YoY) • Operating Expenses at Rp 682 bn (-51.1% YoY) • Net Loss at Rp 223 bn (-5.8% YoY)

Income

Statement

• Total Financing at Rp 5.4 tr (+2.1% YoY) • Total Deposit at Rp 5.6 tr (+13.0% YoY) • Total Asset at Rp 7.4 tr (+7.3% YoY)

Balance

Sheet

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Key Ratios

Sharia

(%) 3Q’16 3Q’17 YoY

CAR 23.1% 13.1% -10.0%

NPF Gross 12.5% 19.2% +6.7%

NPF Nett 4.1% 2.1% -2.0%

ROA -6.2% -5.3% +0.9%

ROE -36.1% -42.6% -6.5%

BOPO 118.7% 132.5% +13.8%

FDR 107.4% 97.1% -10.3%

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Income Statement

Income Statement

(Rp mn) 3Q’16 3Q’17

YoY (%)

Financing Income 541,121 563,747 4.2%

Financing Expense 292,021 296,508 1.5%

Net Financing Income 249,100 267,239 7.3%

Other Operating Income 833,689 117,612 -85.9%

Operating Expense 1,393,938 681,819 -51.1%

Operating Income (311,149) (296,968) -4.6%

Non Operating Income (Expense) 885 4,412 398.5%

Income (Loss) Before Tax (310,264) (292,556) -5.7%

Tax Expense 73,134 69,064 -5.6%

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Balance Sheet

BS highlight

(Rp Mn) 3Q’16 3Q’17

YoY (%)

Cash 42,763 45,355 6.1%

Current Account with Bank Indonesia 271,578 303,795 11.9%

Secondary Reserves 1,375,843 1,957,330 42.3%

Financing-net 4,832,860 4,461,498 -7.7%

Fixed Asset-net 171,283 274,411 60.2%

Other Asset 240,424 395,362 64.4%

Total Asset 6,934,751 7,437,751 7.3%

Total Third Party Fund 4,940,247 5,581,203 13.0%

Fund Borrowings 362,427 640,016 76.6%

Others 578,863 484,844 -16.2%

Total Liabilities 5,881,537 6,706,063 14.0%

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Sharia Performance

Financing

(Rp mn) 3Q’16 3Q’17

YoY (%)

Murabahah (Trading) 4,134,601 4,364,803 5.6%

Qardh (Bridging) 67,518 65,359 -3.2%

Financing 1,089,160 971,865 -10.8%

Istishna (Pawning) 2,194 2,186 -0.4%

Total Gross Financing 5,293,473 5,404,213 2.1%

Funding

(Rp mn) 3Q’16 3Q’17

YoY (%)

Wadiah Current Account 104,898 110,900 5.7%

Wadiah Savings Account 175,888 172,823 -1.7%

Mudharabah Current Account 226,253 224,975 -0.6%

Mudharabah Savings Account 539,791 596,271 10.5%

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Company Profile

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Distribution Network

Total bjb employees

7,712

Total bjb customers

4,395,160

Banten

Deposits 12.3 Tr Loans 9.9 Tr Micro Loans 439 bn Profit 730 bn 889,184 Customers 8 Branch Offices 45 Sub Branches 61 Cash Offices 43 Payment Point 230 ATM Unit 780 Employees

West Java

Deposits 51.1 Tr Loans 44.6 Tr Micro Loans 2.2 Tr Profit West Java 2.8 Tr Loss Head Oficce 2.5 Tr 3,299,668 Customers 35 Branch Offices 191 Sub Branch 265 Cash Offices 105 Payment Point 898 ATM Unit 5,943 Employees

Others

Deposits 2.4 Tr Loans 6.7 Tr Micro Loans 1.38 Tr Profit 205.8 bn 74,080 Customers 13 Branch Offices 13 Sub Branch Offices

7 Cash Offices 96 ATM Unit 442 Employees

Jakarta

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Branch Network Details

No bjb Network 3Q’16 3Q’17 YoY

1 Branch 63 65 +2

2 Sub Branch 311 309 -2

3 Cash Offices 331 338 +7

4 Payment Point 138 149 +11

5 ATM 1,211 1,340 +129

6 Layanan bjb Precious 11 11

-7 MSME Center 6 6

-8 Mobile Cash 12 11 -1

9 Weekend Banking 11 11

-10 Forex Branches 47 47

-11 Branchless Banking - 690 690

(31)

Human Capital

Age Breakdown

Educational Breakdown

Level 3Q’16 3Q’17 YoY

Board of Commissioners 5 5

-Directors 7 6 -1

Top Management 42 38 -4

Middle Management 346 363 +17

First Line Management 1,778 1,830 +52

Staff 5,344 5,464 +120

Employee in Pension Preparation 10 17 +7

Total Permanent 7,532 7,723 +191

SDM 475 528 +53

Up To Bachelor Degree 94%

Master of Doctorate 6%

18-30 64%

31-40 28%

41-50 6% >50

(32)

Ownership

Ownership Structure 3Q16 3Q17

Founder (A Series) 75.00 75.00

West Java Provincial Government 38,26 38.26 West Java Municipal Governments 23,61 23.61 Banten Provincial Government 5,37 5.37 Banten Municipal Governments 7,76 7.76

Public (B Series) 25,00 25.00

Local Retail _3.66 _6.34

(33)

2017 Awards

Brand Finance & SWA – “TOP 100 Best Valuable

Indonesian Brands”

Business News – “TOP BUMD 2017 Best Over All”

Business News – “TOP BPD 2017”

Business News – “TOP CEO 2017”

SWA – “Indonesia Best Public Companies 2017 (Rank 4th_&

Rank 9th_Overall)”

SWA –

“Indonesia Original Brand 2017 (Rank 1st_)”

Indohousing – “Most Excellent Service Performance Bank

Infobank – “Titanium Trophy Bank dengan Kinerja Keuangan Sangat Baik Selama Tahun 2016”

(34)

2017 Awards

Annual Report Award Tahun Buku 2016 – “Annual Report Award

Tahun Buku 2016 (Rank 1st₎

Bisnis Indonesia Financial Award 2017 –

“The Best Performing Bank”

Koran SINDO – “Apresiasi Inovasi” Forbes Indonesia - Best of the

Best Awards 2017 TOP 50 Companies (Rank 18th₎

SWA – “The Indonesian Living Legend Companies”

PR Indonesia – “Best Communicators 2017”

Tempo – “The Best Bank in Retail Banking Services”

(35)

2017 Awards

Tribute From West Java Province – “CSR Partner”

Ministry of Finance – Best Tax Contribution 2016

Excellence Service Experience Awards (ESEA) 2017

-“Regular Banking Category”

Galamedia Awards 2017 – “Housing Tax Initiative”

AAEI & CSA Intitute – “One of The Best Stock for Yuk Nabung Saham Program 2017”

Contact Center Service Excellence Awards 2017 – “Best Call Center Regular Banking”

Markplus.Inc Awards – “Mr. Ahmad Irfan as Marketing Champion 2017”

Markplus.Inc Awards – “Mr. Ahmad Irfan as Marketeer

(36)

Share Price Performance

Investor Relations Group Menara bank bjb7th_Floor

Jl. Naripan 12 – 14 Bandung 40111 +6222 4234868

ext 7140/7141 [email protected]

Contact Person:

Muhammad As’adi Budiman Deputy Corporate Secretary

[email protected]

Sani Ikhsan Maulana IR Head

[email protected]

Anjas Septa Lesmana Senior Officer

[email protected]

Siti Khairina Wahyujati Officer

[email protected]

Trifani Rahayu Staff

[email protected]

Farizzaka Putra Staff

(37)

Menara bank bjb

Jl. Naripan 12 – 14 7th_Floor

Disclaimer :This report has been prepared by PT Bank Pembangunan Daerah Jawa Barat & Banten, Tbk. (bank bjb) independently and is circulated