k
(
) bk
PT
Bank
Mandiri
(Persero)
Tbk
Q1 2010
Q1
2010
Results Presentation
Share Information
Description
Per 31 March 2010 No. of
Investor % No. of shares %
6,000
Investor DOMESTIC
1. Government of RI 1 0.006% 14,000,000,000 66.76% 2. Retail 6,881 41.63% 135,573,789 0.65% 3. Employees 8,392 50.78% 124,540,048 0.59% 4 000
5,000
BMRI JCI
4. Cooperatives 4 0.02% 45,000 0.00% 5. Foundations 7 0.04% 10,222,500 0.05% 6. Pension Funds 96 0.58% 162,879,500 078% 7. Insurance 34 0.21% 263,097,500 1.25%
k 3,000
4,000
8. Banks 1 0.01% 36,000 0.00% 9. Corporations 106 0.64% 303,379,832 1.45% 10. Financial Institutions ‐ 0.00% ‐ 0.00% 11. Mutual Funds 115 0.70% 576,571,000 2.75% 2,000
Total 15,637 94,61% 15,576,345,169 74.28% INTERNATIONAL
1. Retail 52 0.31% 1,771,000 0.01% 2. Institutional 838 5.07% 5,392,000,636 25.71%
Total 890 5 39% 5 393 771 636 25 72%
0 1,000
from: IPO Jan 1 2010
Total 890 5.39% 5,393,771,636 25.72% TOTAL 16,527 100.00% 20,970,116,805 100.00%
Jul
‐
03
Nov
‐
03
Mar
‐
04
Jul
‐
04
Nov
‐
04
Mar
‐
05
Jul
‐
05
Nov
‐
05
Mar
‐
06
Jul
‐
06
Nov
‐
06
Mar
‐
07
Jul
‐
07
Nov
‐
07
Mar
‐
08
Jul
‐
08
Nov
‐
08
Mar
‐
09
Jul
‐
09
Nov
‐
09
Mar
‐
10
85
BMRI +692.59% +13.83%
Bank Mandiri Presentation Contents
Results Overview Page #
Q1 2010 Financial Highlights 2
SBU Performance 3‐4
5‐Year Transformation Improvements 5
Indonesian GAAP Implementatoin 6
Balance Sheet Overview 7
Loan Growth & LDR 8‐9
Net Interest Margins 10
Strategy Overview 11‐12
Depositepos Franchisea c se e e op e Development 133‐17
Wholesale Lending and Fees 18‐19
High‐Yield Lending Activities 20‐22
NPL Movement, Asset Quality & Provisioning 23‐26
Enhancing Risk Management 27
Overhead Expense Details 28
Leveraging SBU Alliances & Subsidiaries 29‐30
Operating Profit & Summary P&LOperating Profit & Summary P&L 3131 32‐32
CAR, ROE, PAT 33
2010 Guidance 34Operating Performance Highlights 35‐43
1
Key Financial Highlights
Bank
Mandiri’s
Q1
2010
Performance
continued
to
demonstrate
marked
improvements
p
in
several
key
y
indicators:
Q1 ‘09
Q1 ‘10
%
Loans
Rp176.9 tn
Rp201.9 tn
14.2%
Net NPL Ratio
1.46%
0.55%
(62.3%)
Gross NPL Ratio 5.85% 2.56% (56.2%)
Low Cost Funds Ratio
57.2%
56.5%
(1.3%)
[Low Cost Funds (Rp)] Rp155.7 tn Rp176.8 tn 13.5%
NIM
5.47%
5.16%
(5.7%)
Efficiency Ratio
35.1%
39.5%
12.8%
f
b
b
2
Maintaining momentum for growth
Y‐o‐Y
Y‐o‐Y
Loans
by
SBU*
(Rp Tn)
Deposits
by
Product
– Bank
Only
(Rp Tn)
14.9 11.2
280 300
320 FX Time Rp Time
FX Demand Rp Demand
FX Savings Rp Savings
17 1 17 7 5 1
5.4 5.6
160 180
Micro Small Cons
Comm Int'l Corp
(30.2%) 22.8% 25 6% 16.5% 147.5tn 171.8tn
Total Total 256.0tn 291.3tn 13.8%
95 7 97 9 101.5
108.5 113.7 15.9 21.4 16.2 18.1 16.5 220 240 260 280
19.3 19.7 20.6
21.7
23.6 24.7
14.8 14.1 15.5 16.3
17.1 17.7 4.4 4.6 4.8
5.1 120 140 ( ) 23.7% 25.6% 25.8% 51 8
9.8 15.1 19.5 17.5 20.3 18.0 21.2 93.2 80.5 73.4 95.7 91.9 97.9 15.7 12.6 140 160 180 200
4 5 0 2
41.6 40.6 41.9
43.6 49.1 49.1
14.2 8.9 13.1 1.7 1.9 2.7 80 100 8.5% 20.8% (95 4%) 4.1
4.7 7.4 8.2 8.3 8.7 9.7
9.9
30.1 33.6
50.4 51.8 43.0 45.4 43.7 51.8 45.8 11.4 9.1 60 80 100 120
62 0 64 1 65 8 68.8 69.8 74.5 0.9
2.8
4.4 4.4 4.4
4.2 4.5 0.2
25.9 24.4 31.5 10.7 11.1 7.6 40 60 6.5% 16 1% (95.4%) 21.7% 45.2 57.6
81.5 82.2 77.2 82.8 87.3 96.8 89.5 3.5 4.1 0 20 40 60
Q4 '05 Q4 '06 Q4 '07 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10
29.9 36.1 44.8
62.0 64.1 65.8 68.8 1.0
0 20
Q4 '05 Q4 '06 Q4 '07 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10
15.8% 16.1%
3 Q4 05 Q4 06 Q4 07 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10
Q4 05 Q4 06 Q4 07 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10
Balanced Earnings from all Business Units
23.4% 907
635
Corporate
Net Interest Income
NII (Rp bn) % of Total
Alliance Strategy Focus
19.0%
23.3% 24.7%
4.5% 1,179
907
121
632
Treasury FI & SAM Commercial #
Q1 '08
Building Future Growth Engine
(Consumer& Micro/Retail) CM = Rp1,237 billion
Leveraging Our Cash Generator
(Corporate& Treasury) CM = Rp1,418 billion
2.2%
38.3% 41.9%
10.5% 1,997
103
284
1,037
Micro & Retail * Treasury, FI & SAM
Q1 '10
Fee Income
Fees (Rp bn) % of Total
10.5% 12.3% 585
284
Consumer Finance
14.9%
13.6% 6.6%
13.3% 181
185
47 107
Commercial #
Corporate Q1 '08
Q1 '10
8.1%
15.4% 63.3%
50 6% 686
209
454 58
Micro & Retail * Treasury, FI & SAM Strengthen Emerging Business
(Commercial Banking) CM = Rp939 billion
50.6% 7.1%
7.1% 96
686
51
Consumer Finance
Transformation has driven broad improvements
No Description 2005 2006 2007 2008 2009 CAGR/‘05‐’09 Q1 ’09 Q1 ‘10 %
Consolidated Rp Billion
1. Total Assets 263,383 267,517 319,086 358,119 394,617 10.6%
2. Total Credit 106,853 117,757 138,554 174,498 198,547 16.8%
347,626 399,338 14.9%
176,878 201,935 14.2%
3. Customer Deposits 206,289 205,708 247,355 289,112 319,550 11.6% 272,048 312,907 15.0%
4. Gross NPLs 25.20% 16.34% 7.17% 4.73% 2.79% (22.4%)
5. Net NPLs 15.34% 5.92% 1.51% 1.09% 0.42% (14.9%)
5.85% 2.56% (3.29%)
1.46% 0.55% (0.91%)
6. LDR 51.72% 57.20% 54.29% 59.16% 61.36% 9.6% 63.84% 64.12% 0.28%
7. Cost Efficiency Ratio 55.57% 48.86% 46.72% 42.26% 40.18% (15.4%)
8. Net Profit 603 2,421 4,346 5,313 7,155 85.6%
35.05% 39.54% 4.49%
1 400 2 003 43 1%
8. Net Profit 603 2,421 4,346 5,313 7,155 85.6% 1,400 2,003 43.1%
Implementation
of
Indonesia
GAAP
(PSAK)
50/55
&
New BI Guidelines on Publication
New BI Guidelines on Publication
1.
Fees
/
Provisions
attributable
to
loans
1.
No
breakdown
of
BI’s placement,
while
GAAP Changes reflected in this Financial Statement SE BI No.12/11/DPNP (31‐Mar‐10 on Financial’s Disclosure
are
amortized
along
with
the
loans:
Resulted
in
a
reduction
in
loans
outstanding
by
Rp345
bn
all
SBI now
disclosed
under
Securities
Total
Securities
increase
to
Rp16
tn
2.
A
separate
disclosure
for
several
new
2.
New
Classification
of
Assets:
Reclassification
of
Rp38
tn of
Government
Bonds
to
AFS from
HTM
accounts:
Spot
&
derivatives
receivables,
which
includes
tom
or
2
days
receivable
Revaluation
goes
to
equity
but
does
not
affect
CAR
3.
Impairment
on
judgment
of
cash
flows
Liability
to
BI,
which
includes
subordinated
loans
from
BI
and
liquidity
facility
from
BI
(KLBI)
p
j
g
and
amount
of
potential
downgrade:
Individual
impairment
cash
flow
from
impaired
large
debtors
(718
Inter
‐
office
transactions
of
Rp502
bn
3.
Separation
of
the
provisions
(now
called
CKPN)
from
the
receivable
assets
o
pa ed a ge debto s (
8
accounts)
Collective
impairment
roll
rate
approach
C
) o
t e ece ab e assets
disclosure
4.
No
more
separate
disclosure
for
G
&
A
expenses which now is put under Other
6
approach
Excess
impairment
of
Rp63
bn was
credited
to
R/E
by
January
2010
Strong and liquid balance sheet, Q1 2010
Assets
Amount
%
of
Assets
Liabilities
Amount
%
of
Liab.
(Rp Bn, Bank Only)
Cash
6,240
1.70%
Current
Account
66,966
18.27%
SBI &
BI
Placement
(net)
44,595
12.17%
Savings
99,382
27.12%
Placement
w/other
banks
(net)
25,469
6.95%
Time
Deposits
(Rp)
113,702
31.03%
Marketable
Securities
(
(net)
)
6,902
,
1.88%
Time
Deposits
p
(Fx)
11,227
,
3.06%
Government
Bonds
85,728
23.39%
Total
Deposits
291,276
79.49%
Loans
(Gross)
181,513
49.53%
Securities
Issued
566
0.15%
Provisions
(10,600)
‐
2.89%
Deposits
from
other
banks
7,072
1.93%
Other
Advances
(net)
6,910
1.89%
Borrowings
4,463
1.22%
Investments
3,837
1.05%
Other
Interest
bearing
liabilities
6,172
1.68%
Other
Assets
5,851
1.60%
Non
Interest
bearing
liabilities
20,110
5.49%
Equity
36 782
10 04%
7
Equity
36,782
10.04%
LDR rising to 64.1% on loan growth of 1.7%…
Loans (Rp tn)
LDR (%) 68 7
76.4 78.8 79.7 82.0 82.7 82.9
Corporate Commercial S ll
Quarterly Loan Data – Consolidated Quarterly Loan Segment Details – Bank Only
53.7% 57.2% 59.2%
65.0%
63.2%62.2%62.8%
61.4% 64.1% LDR (%)
40 2 42.3
44.7
53.6 55.4
68.7
41 2 43.8 42.6 43.6 45.3 50.6 50.4 Small Micro Consumer 26.3% 35.4%
42.5% 40.2 38.2
22.2 31.4
35.7
32.6 35.5
41.2
10 7 11 1
15.8 18.7 19.3 19.7 20.6
21.7 23.6 24.8
43.0 48.3 65.4 75.9 94.4 106.9 117.7 138.5 135.5 149.6 162.8 174.5 175.2 181.6 188.3 198.5 201.9
Q4 ' Q4 ' Q4 ' Q4 ' Q4 ' Q4 ' Q4 ' Q4 ' Q1 ' Q2 ' Q3 ' Q4 ' Q1 ' Q2 ' Q3 ' Q4 ' Q1 ' 7.6 10.2
13.1 13.815.1 14.4 15.8 16.6
17.4 18.0
1.7 2.7 2.9 4.0 4.4 4.6 4.8 5.1 5.4 5.6 1.5 3.7
8.5 10.7 11.1
Q4 ' Q4 ' Q4 ' Q4 ' Q4 ' Q4 ' Q1 ' Q2 ' Q3 ' Q4 ' Q1 ' Q2 ' Q3 ' Q4 ' Q1 '
00 01 02 03 04 05 06 07 08 08 08 08 09 09 09 09 10 '02 '03 '04 '05 '06 '07 '08 '08 '08 '08 '09 '09 '09 '09 '10
By Segment (Bank only)
Loans (Rp tn)
Y‐O‐Y Growth (%)
% of Portfolio
Corporate 82.85 5.17% 45.65%
1.7%
15.3% Commercial 50.36 18.08% 27.74%
Small 18.00 24.69% 9. 91%
Micro 5.55 21.92% 3.06%
8
QoQ Growth (%) YoY Growth (%)
Consumer 24.76 25.93% 13.64%
Total 181.51 13.39% 100.00%
Rp15.6tn in loans disbursed in Q1 2010
Loan Movement (Rp tn) – Bank Only Loan Disbursement by Segment (Rp tn) – Bank Only
179.69
15.62
9.02
2.38
0.94
1.45
181.51
1.31
2.49
3.40
1.42
15 62
15.62
7.00
Corporate Commercial Small Micro Cons Fin Total
9
Q1 NIM of 5.1% on drop in FX loan yields
Yield on Assets 20% 18.9%18.3%17.6%
Quarterly Net Interest Margins* Quarterly Yields & Costs by Currency*
13.0% 13.0%
10.7%11.0% 10 5%10.7%
10.8%10.8%10.8%
Cost of Funds 14.1% 13.3% 13.2% 11.2% 12.1% 12.9% 12.8% 12.2% 12.5% 14.0% 11.7% 10.8% 9.2% 10.6% 14.0% 17.6% 13.1% 11.9% 11 7% 10% 15% IDR 9.5% 8.9% 10.7% 9.3% 10.1%10.5% 10.7% 9.9% 9.4%9.4% 8.9% 8.2% 7.9% 7.2% 6.8% 7.4% 11.9% 10.4% 8.0% 9.2% 9.1% 6.6% 6.4% 11.1% 11.7% 5.4% 7.7% 6.9% 4.5% 4.6% 5.9% 5.1% 4.4% 5% 10% 15% NIM 6.3% 4 8% 7.3% 6.4% 5.3%5.5% 4 9% 0%
Avg Loan Yield Avg Bond Yield Avg 1‐Mo. SBI Avg COF
6.5%
7.6% 7.3%
6.6%
5 8% 6.5% 5 8%6.4% 9.5% 10% NIM 4.8% 4.5%4.3% 3.8% 4.2% 4.9%4.8% 4.3% 4.0% FX
5.1% 5.8% 5.8% 5.2%
6.7%
1.4% 1.8%
5.3%
3.3%
2.7%
3.8% 4.0% 3.4%
2.6% 2.7% 2.1% 1.5%
0.8%
0% 5%
2.4% 3.9% 2.8% 3.7% 4.3% 3.6% 4.9% 4.7% 5.1% 5.5% 6.0% 5.4% 5.5% 5.3% 4.9% 5.3% 5.1%
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/NPLReduce 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
Strategy focus on 3 areas of highest potential:
Wholesale Transactions, Retail Payments & High Yield Loans
T b I d
i '
t d i d
,
y
g
To be Indonesia's most admired
& progressive financial institution
#1 in Indonesia in market capitalization by 2014
Strengthen leadership in wholesale transaction banking
C h i
Build #1 or #2 positions in key retail financing segments
Wi i
Be the retail deposit bank of choice
Comprehensive
financing &
transaction solutions
Holistic relationship
Win in
mortgage, personal
loan & cards
Become a major player
i i b ki
Win through
differentiated
customer experience
and targeted
approach for leading
Indonesian institutions
in micro‐banking
Champion Syariah in
Indonesia propositions
Deploy innovative
payment solutions
Breaking down organization'silos' to provide integrated solutions to customers and alliances programs
U di k infrastr ct re(b h IT ti i k PMS) t bl diff ti t d t i
12
Upgrading key infrastructure(branches, IT, operations, risk, PMS) to enable differentiated customer experience
Q1 Deposits rise 13.8% Y‐o‐Y
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 (%)
44 5% 45 3%
62.1%
57.8% 57.5% 57.1%
Low‐Cost Deposits (%)
Rp Time Deposits FX Time Deposits 13.9%
11.4% 9.5% 8 7% 13.1% 11.9% 10.4% 9.2% 10.9% 10%
Rp TD 1 Mo. SBIs
23.1% 32.9%31.4% 44.5% 45.3% 21.4 16 2 18.1 16.5 14.9 11.2 260 280 300 6.1% 4.2% 9.5% 6.9% 4.8%4.7% 8.4% 6.4% 9.9% 6.9%6.8% 6.3% 7.4% 9.3% 8.7% 8.1% 7.2% 6.5% 8.5%
7.4% 8.2%8.0%8.3% 9.1% 7.4% 6.6%6.5% 6.4% 5% % 18 0 73.4 95.7 91.9 97.9 101.5 108.5 113.7 23.4 20.6
17 3 11 6
15.7 12.6 15.9 16.2 180 200 220 240 3.7%3.7%3.5% 3.0%
2.5% 2.5%2.2% 2.8%
3.8%4.2% 3.4%3.5%3.3%3.5% 5.3% 3.6% 3.2% 3.0%2.9% 3.3% 2.8% 2.5%2.7%2.6%2.3% 0% 5%
4 7 7 4 8 2 8.3 8.7 9.7
9.9
3
50.4 51.8 43.0 45.4 43.7
51.8
45.8
11 9 11 4 9.1
9.8 15.1 19.5 17.5 20.3
18.0
21.2
9
7
87.8
106.9 100.7 80.5 66.5
93.2 80.5 16.5 21.5 17.3 11.6 80 100 120 140 160 0%
4.0%4.2%3.9% 3 7%3.9%
6%
FX DD FX TD
14.3 18.0 22.1 29.6 40.6 52.0 45.2 57.6 81.5 82.2 77.2 82.8 87.3 96.8 89.5
3.5 4.1
4.7 7.4 8.2 8.3
14.1
31.1 31.2 24.8
28.8 28.0 30.1
3.6
9.1 11.9 11.4
Building a strong savings deposit franchise…
Savings Deposits (Rp tn) A % f T l D i
Savings Deposit Growth Transaction channel growth
Other As % of Total Deposits
National Share of Savings Deposits (%)
84.7 97.4 106.6 116.7 131.4 129.9 55.8 61.6 63.2 67.2 73.0 71.9 Other Payment Transfer Withdrawal/Inquiry Avg ATM Daily Vol (000)
30.6% 29 2% 34.6% 32.8%33.4%33.7%34.5% 35.5% 34.1%
4 6 6 8 1,0 1,1 1,1 1,2 1,3 1,2
19.6 29.3 39.1 55.0 30.8 29.8 37.4 49.6 16 2% 22.8% 22.7% 29.2%
16 9%17.5% 17.2%18.5%18.0%17.3%17.8%17.9%17.6%
4
92.1 607.5 677.0 853.4 043.4 100.5 158.9 230.6 315.4 293.3
11.0%11.7% 16.2%
11.6%12.8%
15.3%
16.9% 16.0%17.2% %17.8%
3 0092,955 3,165
2,7802,822 2,976 Quarterly Call Center Trans. (000)
Quarterly SMS Trans. (000)
17.96 22.12 29.59 40.50 52.00 45.20 57.60 81.54 89.61 85.39 91.11 95.95 106.45 99.38
1,0693,072
6,988 11,575 16,974 22,328 25,819 33,502 39,569 42,546 44,512
...through vastly improved service levels...
MRI Survey Result: The Best Bank in Service Excellence 2009 ‐
for the 3
rdyear in a row
89.24
Mandiri
89.82
Mandiri
89.64 89.13
2005 2006 2007
1 Mandiri 89.24
2008
1 Mandiri 1 88.66
2009
85.76 85.85
87.82 88.00
87.65 89.03
Mandiri
86.91 87.17
Mandiri 3
2
85.76 85.85
84.59 87.83
84.01 84.66
86.18 87.32
85.30 86.70
83.11 85.91
84.01 84.66
82.35 84.34
80.67 81.79
83.06 84.80
83.04 84.15
81.31 81.38
80.67 81.79
80.76 81.94
79.33 80.36
81.04 82.11
81.00 81.86
80.12 80.69
79.33 80.36
78.61 80.48
78.49 79.29
80.80 76.46
15
…through enhanced transaction capabilities
Quarterly Transaction Volume (Mn)
142.0 150 ATM 95.5 100 10 006 11,000 Debit Cards
SMS Banking
Quarterly Transaction Value (Rp tn) Quarterly Users (000s)
115.0 122.9 132.3 137.1 125 Branch SMS Banking Internet Banking
77.1 87.792.7
80 8,828
10,006
9,950
9,000 10,000
g Internet Banking
88.8 99.8 110.1 100 49 1 57.7 64.7 70.1 60 6,642 7,629 7,202 7,565 7,834 6,040 7,000 8,000 67.8 70.0 77.9 75 31.9 35.5 40.7 49.1 40 5,024 5,752 4,355 4,793 5,480 , 5,000 6,000
35.1 36.2 36.6 38.5 42.1 40.6 41.4 38.2 39.1 33 5 39.6 44.5 50 20 ATM
SMS Banking
Internet Banking 1,897
2,413 2,989 3,652 3,000 4,000 8.3 11.612.2 17.0 19.8 22.325.8 33.5
0.8 1.3 1.7 2.4
3.4 5.56.1 12.0
20.5
0 25
1 0 1 8
1.3 1.8 2.4 0.6 0.9 1.6 2.2 3.6 3.8
4.0 5.9 7.8
0
1,523 ,
358 469 564
705 849 988 1,165 1,239 0 1,000 2,000 16 0 Q1 '06 Q3 '06 Q1 '07 Q3 '07 Q1 '08 Q3 '08 Q1 '09 Q3 '09 Q1 '10
0.3 0.4 0.5 0.7 1.0 1.8 0 Q1 '06 Q3 '06 Q1 '07 Q3 '07 Q1 '08 Q3 '08 Q1 '09 Q3 '09 Q1 '10 358 469 0 Q1 '06 Q3 '06 Q1 '07 Q3 '07 Q1 '08 Q3 '08 Q1 '09 Q3 '09 Q1 '10
…and innovative payment solutions
Pre‐Paid Card Volume (000s)
300 1,200
Indomaret
Pre‐Paid Transaction Volume (000s) Cash Management Users
225.0 241.0 259.0 225 250 275 Indomaret 890.5 1,072.9 1,000 Indomaret e‐Toll Gaz
165.6 175
200
225 e‐Toll
Gaz 688.2 800 112.8 111.0 129.3 125 150 467.9 428.7 507.7 582.4
600 6,153
5,750 49.2 69.9 79.3 99.5 75 100 211.6 207.7 339.2 400 2 414 4,066 9.5 30.0 49.2 6 4 25.0 30.7 40.2
14.7 14.7 14.7 14.7 14.7 34.3 35.0 35.0 36.0 0 25 50 40.3
90.3 120.7 105.5
207.7
206.0209.9 82.4
3.1 2.7 2.1 1.1 1.7 8.81.0 2.7 0 200 745 2,414 17 6.4 0 Jan ‐ 09 Feb ‐ 09 Mar ‐ 09 Apr ‐ 09 May ‐ 09 Jun ‐ 09 Jul ‐ 09 Aug ‐ 09 Sep ‐ 09 Oct ‐ 09 Nov ‐ 09 Dec ‐ 09 Jan ‐ 10 Feb ‐ 10 Mar ‐ 10 0 Jan ‐ 09 Feb ‐ 09 Mar ‐ 09 Apr ‐ 09 May ‐ 09 Jun ‐ 09 Jul ‐ 09 Aug ‐ 09 Sep ‐ 09 Oct ‐ 09 Nov ‐ 09 Dec ‐ 09 Jan ‐ 10 Feb ‐ 10 Mar ‐
Diversifying our strength in Wholesale lending…
Breakdown of Net Expansion in Corporate SBU Lending
Q1 ’09 – Q1 ’10 (Total Rp10.34 tn)
3 164
Mi i Oil & G
%
53 97%
Breakdown of Net Expansion in Commercial SBU Lending
Q1 ’09 – Q1 ’10 (Total Rp8.44 tn)
1 600
T d Di t
% 59 95% 1,441 1,748 3,080 3,164 Other Comm Plantations
Mining‐Oil & Gas 53.97%
39.36%
23.44%
26.08% 1,192
1,237 1,511 1,600
Mass Trans Plantations Mfg‐F&B
Trad‐Distr 59.95%
71.63% 33.43% 56.06% 837 936 1,294 ,
Mfg‐F&B Agri‐Oth Bus Serv
26.08%
26.40%
1,087.94%
6.00% 680
719 1,014
,
Oth Bus Serv
Mfg‐Chem 29.27%
11.20% 156.23% 395 597 630 768 Trad Dom Mfg‐Metal Trad‐Ret
Mfg‐RawM 112.44%
247.45%
83.99%
587 76% 436
474 481 625
Mfg Oth Mfg‐RawM Mfg‐P&P
Mining 67.01% 32.39% 124.80% 7 78% (237) 228 291 395
Mfg‐Text Utilities Trans‐Oth
Trad‐Dom 587.76%
71.20%
9.68%
(39.71%) 98
317 385 436
Utilities Trad‐Oth Agri‐Oth
Mfg‐Oth 7.78%
56.81% 11.54% 26.55% Rp Billion (1,082) (598) (265)
Mfg‐Chem Mining‐Oth Trad‐Exp
( )
(24.52%)
(48.85%)
(14.94%)
Rp Billion (927)
(180) (89)
Trad‐Dom Trans‐Oth
Soc Serv (24.38%)
(54.54%)
(84.79%)
18 p
(2,882)
(4,000) (3,000) (2,000) (1,000) 0 1,000
2,000 3,000 4,000
Mfg‐Oth (73.80%) (1,128)
(1,200) (900) (600) (300) 0 300
…into Fee‐based Income
Non‐Loan Related Fees & Commissions Q1 ‘09 Q4 ‘09 Q1 ‘10 Q1 % (Q o Q)
Q1 %
(Y o Y)
Breakdown of Q1 2009 & 2010 Non‐Loan Related Fees & Commissions (Rp bn)
(Q‐o‐Q) (Y‐o‐Y)
Administration Fees 290.33 361.21 367.58 1.8% 26.6%
Opening L/Cs, Bank Guarantees & Capital Markets 121.41 140.70 144.89 3.0% 19.3%
Subsidiaries 79.83 235.00 113.55 (51.7%) 42.2%
Transfers, Collections, Clearing & Bank Reference 57.70 58.19 58.06 (0.2%) 0.6%
Credit Cards 113.35 184.54 169.42 (8.2%) 49.5%
Mutual Funds & ORI 6.17 33.83 11.50 (66.0%) 86.5%
Others* 162 89 336 80 223 58 (33 6%) 37 3%
Others* 162.89 336.80 223.58 (33.6%) 37.3%
Total 831.67 1,350.28 1,088.56 (19.4%) 30.9%
Total Operating Income# 5,601.03 6,274.75 6,050.50 (3.6%) 8.0%
Non‐Loan Related Fees to Operating Income** 14.85% 21.52% 17.99% (16.4%) 21.2%
* Others includes Syndication, Payment Points, ATMs, Debit Cards, etc.
19
** Non‐Loan related fees & commissions/(Total Operating Income ‐Non‐recurring interest income)
Building our high yield business in Micro & Small…
Micro Credits
(Rp Bn)
23.0% 13.9%
Consumer Loans
(Rp Bn)
Small Business Credits
(Rp Bn)
Loan
Yields 12.4%
4,553
5,590
1,037
22.8%
17,41
0
21,761
4,351
24.9%
14,10
0
17,716
3,616
25.6%
Q1 2009 Growth Q1 2010
Disbursement Breakdown (Q1 2010)
0
Q1 2009 Growth Q1 2010
Disbursement Breakdown (Q1 2010)
0
Q1 2009 Growth Q1 2010
Disbursement Breakdown (Q1 2010)
*Excluding Credit Cards
Disbursement Breakdown (Q1 2010) Disbursement Breakdown (Q1 2010)
611
Disbursement Breakdown (Q1 2010)
1 353 1 367 332
539
611
2,569
76 73
283
1,353 1,367
1,087
998
1,430
14
Rural Banks Micro Unsecured Micro TOTAL Mortgage Home Equity
Loan
Payroll Loan Other Total
Non
‐
Prog
Program Coops
Cash
Coll
TOTAL
…as well as Consumer lending, which rose 25.8%
Y‐o‐Y on Mortgages, Credit Cards and Vehicles
g g ,
Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type
Rp24.73 tn
2 2,9 7 1,7 5 2,295 2,539 22,500 25,000 Other
Credit Cards Payroll Loans Home Equity Loans
Loan
Type
Growth
(%)
Y‐o‐Y Q‐o‐Q
4 4, 4,54 1 4,719 2,0 0
2,113 2,223 2,251
2,452 2,754
2
,989 73
619 956 1,1451,2791,353 1,493 5 8 17,500
20,000 Mortgages
Other*
87.62%
10.62%
Credit Cards
32.09%
(0.53%)
3 3,7 3,69
3,70 4 3,699 3,753 3,822 3,0 1 3,192 3,658
3,999 3,993 3,983
4
,099 252 1
1, 1,2
1,908
1,926 08
180 224 495
10 000 12,500 15,000
Payroll
Loans
18.47%
3.92%
Home Equity Loans
3 38%
1 84%
8 8 9,
10, 0 10,6 8 4,1 3 3,66 6 3,437 3,612
3,702 ,761 721 97 4
1,9 2 1,930 2,285 1 0 1,270 367 93 72 5 000 7,500
10,000
Home
Equity
Loans
3.38%
1.84%
Mortgages
27.51%
6.63%
283
1,522
3,050 3,610
5,382 6,393
7,199 7,717 8,052 8,376 ,814 193 017 81
328 2,852 3 1 6 1,802 2 1 815 21 0 2,500 5,000
Total
Consumer
25.80%
4.83%
21 283Q4 '03 Q4 '04 Q4 '05 Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1
'10 * Auto & Motorcycle Loans channeled or executed through finance
companies = Rp5.2 tn in our Commercial Loan Portfolio * Auto loans through Tunas Finance of Rp365 bn booked in the
1,678k Visa & Mastercards transacted Rp2.61 tn
in Q1 2010
Mandiri Visa & Mastercards and EOQ Receivables Total Card Quarterly Sales by Type of Transaction (Rp Bn)
1 409
1,4861,544 1,608
1,678 Receivables (Rp Bn)
Cards (000s) 60
58 50 43 55 64 2400 2600 2800
Transfer Balance Cash Advance Retail 1,089 1,159 1,2261,273 1,331 1,409
63 63 59 54
32
59 19 39 52
1800 2000 2200
752
872 61 62
57 9 10 32 1200 1400 1600 338 651 81 56 68
24 18 8
11 600 800 1000 1200 567. 5 814. 9 1,270. 2 1,367. 4 1,292. 8 1,907. 5 1,925. 9 2,007. 7 2,112. 7 2,223. 2 2,251. 0 2,452. 2 2,753. 7 2,989. 3 2,973. 4 226 338 53 5 52 1 53 2 60 6 60 0 83 6 1,51 4 1,44 3 1,66 8 1,90 4 1,91 4 1,89 1 2,16 3 2,55 2 2,67 6 2,49 7
62 61 57 81 56
24 16 10
200 400 600
22
5 9 2 4 8 5 9 7 7 2 0 2 7 3 4
Q4 '02 Q4 '03 Q4 '04 Q4 '05 Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10
5 1 2 6 0 6 4 3 8 4 4 1 3 2 6 7
Q1 NPLs fell to Rp4.6 tn on upgrades & write‐offs
1 500
Non‐Performing Loan Movements (Rp bn) – Bank Only Movement by Customer Segment (Rp Bn)
71.0
65.8
1,250 1,500
Cons
Micro/Small Comm
141.8
1,000
Corp
5.39
0.17
1.14
0.14
1.45
0 16
1 313 3 321.9
750
0.16
4.60
1,313.3
409.3 500
262.4 37.934.9
250
23 100.5
0
UG to PL DG to NPL W/O
Gross
NPLs
declined
to
2.56%
with
provisioning
covera
g
e
im
p
rovin
g
at
219.1%
20 ,000 50% NPL M ov emen t ‐ Consolida ted
g
pg
Ca te gor y 2 Loans –B a n k Only 16,000 18,000 , 40% Ca t 2 % 190.4% 219.1% 12,000 14,000 35.7% 26 2% 30% 19 25.28% 146.7% 138.9% 136.1% 8,000 10,000 26 .2% 24.8% 15 5% 20% 9.80% 16.34% 129.5% 139.1% 128.8% 116.0% 4,000 6,000 9.2% 15.0% 9.4% 12.9% 15 .5% 11.9% 11.5% 10.0% 9.2% 9.7% 10.2% 9.7% 10.6% 9.7% 9.6% 10% 9.70% 7.30 8.60% 7.10 7.17 5. 70.0% 44.4% 4,033 15,350 12,655 16,202 10,983 8,334 12,912 16,966 15,148 14,058 13,451 13,502 15,412 16,332 15,895 18,148 17,506 17,417 0 2,000 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 0% % 0% 7% 5.14% 4.74% 4.44% 4.73% 85% 4.78% 3.79% 2.79% 2.56% 15.3% 0.56% 0.55% 44.4% Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q14 '99
4 '00
4 '01
4 '02
4 '03
4 '04
4 '05
4 '06
4 '07
1 '08
2 '08
3 '08
4 '08
1 '09
2 '09
3 '09
4 '09
1 '10
2 ‐ Special Men tion Loans (Rp Bn) 24
4 '99
4 '00
4 '01
4 '02
4 '03
4 '04
4 '05
4 '06
4 '07
1 '08
2 '08
3 '08
4 '08
1 '09
2 '09
3 '09
4 '09
1 '10
Cash Provisioning of total loans stands at 5.84%
NPLs (Rp tn)
Q1 (Rp tn)
NPLs (%)
Amount of Cash Provisioning
Non‐Performing Loans by Segment
Loans d
# of
Provisioning
Corporate 1.34 (1.41) 1.61%
Commercial 1.56 0.38 3.09%
Small 0.69 0.12 3.86%
Outstanding Customers Provisioning
Individual 15,719 718 7,931
C ll ti 165 794 824 398 2 669
S a 0 69 0 3 86%
Micro 0.36 0.05 6.56%
Consumer 0.65 0.08 2.61%
Total 4 60 (0 79) 2 43%*
Collective 165,794 824,398 2,669
Total 181,513 825,116 10,600
Total 4.60 (0.79) 2.43%
• Bank Mandiri’s current cash provisioning to total loans (Bank only) stands at 5.84%
Methodology for Impairment:
Bank Mandiri has established criteria for decrease in value based on Loan Segmentation:
* Excluding Restructuring Losses and loans to other banks.
a a d as estab s ed c te a o dec ease a ue based o oa Seg e tat o
Individual Impairment
1. Corporate and Commercial customer segments with objective evidence of decrease in value.
2. Outstanding loan balances of more than Rp5 billion for other segments which have objective evidence of decrease in value 3. Restructured loans for Corporate and Commercial customer segments
4. Restructured loans with outstanding balances of more than Rp5 billion for other segments which have objective evidence of decrease in value.
Collective Impairment
25 Collective Impairment
1. All segments excluded from individual impairment
Q1 2010 annualized net downgrades of 2.00% on
loans originating since 2005
Total Loans originated since 2005
g
g
Net Upgrades (%)/Downgrades (%)# Q1 2010 Details
Loan Q1 ‘10
Balance Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
DG to NPL
UG to PL
Background Balance
(Rp bn) 2008 2008 2008 2008 2009 2009 2009 2009 2010
NPL %
PL %
Corporate 67,737.6 ‐ 0.10 0.11 0.48 1.05 1.15 ‐ 0.03 0.28 0.39 0.11
Commercial 41,759.9 0.33 0.14 0.21 1.05 0.78 0.03 0.21 0.04 0.51 0.51 ‐
Small/Micro 19,778.7 0.92 0.58 0.59 1.20 1.06 1.00 1.19 0.84 1.36 1.46 0.11
Consumer 23,320.6 0.42 0.13 0.22 0.13 0.49 0.27 0.30 0.11 0.40 0.52 0.12
Total 152,596.7 0.28 0.18 0.21 0.65 0.91 0.38 0.25 0.12 0.50 0.58 0.08
# %downgradesandupgrades are quarterly % figures
26
Strengthening Risk Management & Monitoring
System
y
Corporate
Customer
by
Rating
Summary
of
Risk
Management
Initiatives
• Wholesale Transaction: Optimize credit decision process
by focusing on quantitative factors of analysis, redefining clear role of risk team , and aligning RM Organization into
High Risk (Rating C‐G)
Medium Risk (Rating BBB – B)
Credit
business expansion
• High Yield Business: Assign dedicated team, set up loan
factory, enhanced business process (incl. tools, monitoring & collection system, policy )
• Optimize capital by implementing ERM & VBA Low Risk (Rating AAA – A)
15% 12% 11% 15% 15%
100%
• Development of risk measurement system for
derivative & structured product (Summit) Optimize capital by implementing ERM & VBA
• Consolidate risk management of subsidiaries
34%
24% 21%
25% 24%
60% 80%
Market
• Implement Market Risk Internal Model
• Enhance Policy & Procedure for Treasury & ALM • Enhance FTP (Fund Transfer Pricing) method • Develop liquidity stress test & safety level • Develop measurement of capital for IRBB
64% 68% 60% 61%
40% %
Operational
• ORM implementation in all unit, incl. overseas offices
& subsidiary
• Bring Op. Risk top issues into ORC
Develop measurement of capital for IRBB
51%
64% 60% 61%
20%
27
g p p
• Review Op. Risk on new procedures & new products
0%
Q1
Cost
to
Income
Ratio
at
39.5%
on
moderating
G&A expenses
70.5%
83.3%
CIR* (%)
Annual Avg CIR (%)
p
Q1 ‘09 Q1 ‘10 Q1 2010
Q o Q Y o Y
Breakdown of Q1 2009 & 2010 Operating Expenses
Quarterly Consolidated Operating Expenses & CIR*
70.5%
59.5%
g ( )
Q‐o‐Q Y‐o‐Y
Personnel Expenses
Base Salary 353,273 410,404 9.90% 16.17%
Other Allowances 470 163 618 209 15 02% 31 49%
1
28 2%
41.8%
47.2%
40.4% 42.8% 43.2%39.5%
40.4%
47.2%
40.07%
Other Allowances 470,163 618,209 15.02% 31.49%
Post Empl. Benefits* 140,269 86,858 (17.05%) (38.08%)
Training 29,982 24,909 (76.61%) (16.92%)
Subsidiaries 122,371 165,238 (19.87%) 35.03%
723
1,2
869 1,309 1 1,158 1,1 6 1,197 1, 1,390 1,019 1 ,328 1,306
28.2% , , ( )
Total Personnel
Expenses 1,116,058 1,305,618 (1.71%) 16.98% G & A Expenses
IT & Telecoms 165 624 169 900 (9 65%) 2 58%
95
7
649
327
377
2 41 1 ,005 6 5 116
IT & Telecoms 165,624 169,900 (9.65%) 2.58%
Occupancy Related 228,051 282,727 (26.79%) 23.98%
Promo. & Sponsor. 92,665 129,207 (35.02%) 39.43%
Transport & Travel 67 756 72 077 (28 27%) 6 38%
336 753 775 749 1,034 842 1,016 993 769 1,034 916 1,148 827 1,004 1,110 1,384 1,051 7
Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q
Transport & Travel 67,756 72,077 (28.27%) 6.38%
Prof. Services 92,737 113,269 (23.88%) 22.14%
Employee Related 79,161 136,043 (12.52%) 71.86%
Subsidiaries 101 282 147 719 (28 24%) 45 85%
Q 4 '00 Q 4 '01 Q 4 '02 Q 4 '03 Q 4 '04 Q 4 '05 Q 4 '06 Q 4 '07 Q 1 '08 Q 2 '08 Q 3 '08 Q 4 '08 Q 1 '09 Q 2 '09 Q 3 '09 Q 4 '09 Q 1 '10
G&A Expenses (Rp bn) Personnel Expenses (Rp bn)
28
Subsidiaries 101,282 147,719 (28.24%) 45.85%
Total G & A Expenses 827,276 1,050,942 (24.05%) 27.04%
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
1 259 1 275 1,389 1,609
1,821 2,085
2,283
319
791 897
1,128 1,259 1,275
Q4 '06 Q4'07 Q1 '08 Q2 '08 Q3'08 Q4'08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10
Payroll Accounts from Alliance Program
# of Accounts Corporate Card Holder from Alliance Program
(10 top corporate clients)
344,725
# of Accounts
12,108
14,612
16,495
(10 top corporate clients)
1
4 73
197,681
219,735
1 616 1 620 1 796 1 869 2,007
3,625
7,272
4
,493
3
,229
Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10
1,616 1,620 1,796 1,869 2,007
Q4'07 Q1 '08 Q2 '08 Q3'08 Q4'08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10
Enhancing synergies & values from subsidiaries
Investment Banking Investment Banking Syariah Banking
Syariah Banking InsuranceInsurance Niche BankingNiche Banking Multi‐FinanceMulti‐Finance
Total Assets Rp23 81 tn
Bond Trading Volume Rp10 5 tn
Total Assets Rp6 42 tn
Total Loans Rp519 2 bn
Total Financing Rp1 558 bn
Bank Sinar Harapan Bali
Rp23.81 tn Rp10.5 tn Rp6.42 tn Rp519.2 bn Rp1,558 bn Total Financing
Rp17.65 tn
Equity & FI Underwriting Rp1.6 tn
Annual FYP Rp 403.3 bn
Net Interest Margin* 10.71%
Net Interest Margin 6,68%
Total Deposits Equity Trading Volume Fee Contribution ROA ROA (Before Tax) Total Deposits
Rp21.03 tn
Equity Trading Volume Rp18.6 tn
Fee Contribution Rp47.8 bn
ROA 3.36%
ROA (Before Tax) 5,85%
ROE 21.96%
ROA 11.5%
ROE 83.3%
ROE 13.45%
ROE (After Tax) 27,18%
• 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.
30
customers • Refocus business toward higher fee income
Q1 2010 operating profit driven by 22.6% growth
in Fee Income
Q1
2010
Q1
2009
1,408
2 740
Rp billion
1,149
Rp billion
2,740 2,211
4,634
Down 0.9%
4 394 4,634
3,302 4,394
3,332
Net Interest Income Fee‐Based Income Overhead Expenses & Pre‐provision Net Interest Income Fee‐Based Income Overhead Expenses & Pre‐provision
31 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 Revenue Growth
Summary
P&L
Q1 2009 Q1 2010 Y‐o‐YRp (Billions) % of Av.Assets* Rp (Billions) % of Av.Assets (%)
Interest Income 8,568 9.7% 8,030 8.1% (6.3%)
Interest Expense (4,174) (4.7%) (3,396) (3.4%) (18.6%)
Net Interest Income 4 394 5 0% 4 634 4 7% 5 5%
Net Interest Income 4,394 5.0% 4,634 4.7% 5.5%
Other Operating Income 1,149 1.3% 1,409 1.4% 22.6%
Gain from Increase in Value & Sale of Bonds 58 0.1% 90 0.1% 55.2%
Provisions, Net (1,375) (1.6%) (692) (0.7%) (49.7%)
Personnel Expenses (1,116) (1.3%) (1,306) (1.3%) 17.0%
G & A Expenses (827) (0 9%) (1 051) (1 1%) 27 1%
G & A Expenses (827) (0.9%) (1,051) (1.1%) 27.1%
Other Operating Expenses** (268) (0.3%) (383) (0.4%) 42.9%
Profit from Operations 2,015 2.3% 2,619 2.6% 30.0%
Non Operating Income 58 0.1% 114 0.1% 96.6%
Net Income Before Tax 2,073 2.3% 2,733 2.8% 31.8%
Net Income After Tax 1 400 1 6% 2 003 2 0% 43 1%
32
Net Income After Tax 1,400 1.6% 2,003 2.0% 43.1%
* % of Average Assets on an annualized basis
…supported by strong capital, ROE continues
to expand
IDR bn
to expand
Capital & RWA Movement Profit After Tax & ROE
R E AT
195.8 203.3 31.3% 27.7% CAR* 2 Q4 PAT 21.5% 26.2% 23.6%22.8% 15.8%18.1%22.1% 22.3%
RoE ‐AT
1 172.9 26.4% 23.4% 25.3% 23.7% 25.3%
21 1% 819 1 1
775 1 1,390 2 ,536
Q4 PAT Q3 PAT Q2 PAT Q1 PAT
2.5%
10.0%
9
1
108.9 115.9 112.2
34.0
21.1%
15.7%15 6%
17.0% 1 , 1 1,528 1 ,408 1,0 4 1,345 1 ,693
645 799
8 9 1,166
4 58.1 72.5 1 .9 15.6%
1 1 2,0
1, 602
690 ,329 1,113 1,221 1,526 967 1 ,017 4 0 1,234 2.6
13.3 15.4 17.0 25.5 27.5 27.4 28.4 28.3 27.2 30.5 34.6
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q1
308 1,168 1 ,549 1 ,744
519 510
1,027 1,390 1,400 0 03 300
61097 305372
(623)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q1 '10 RWA (Rp tn) Total Capital (Rp tn)
(623)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
33
On Track to Achieve Our 2010 Targets
Gross Loan Growth
15-18%
Savings Deposits
>
Rp110 tn
Net Interest Margins
~
5.35%
Net Interest Margins
5.35%
Efficiency Ratio
~
45%
Gross NPLs
<
4 0%
Gross NPLs
<
4.0%
Provisioning Coverage
>
150%
New Distribution Infrastructure Targets:
New Distribution Infrastructure Targets:
# of New ATMs
2,500
# f N
EDC
25 000
# of New EDCs
25,000
# of New Micro Outlets
500
O
i
Operating
Performance
Performance
Highlights
g
g
Corporate
Banking:
Contribution
Margin
declines
on
rate
increase
Rp bn Rp bn
Performance to Date: Q1 2010 Contribution Margin (after PPAP) Strategies for 2010
1. Build up the industry‐based focus,
including investment in human resources
185 93
998
77 1,075 1,144
Q1 Q2
Q3 Q4
2 906
g
development, to support the
organization in achieving higher than market growth
2. Develop an awareness of the importance
f ti i i th t ti l th i
3,910
180
998
692
2,906
2,483
of optimizing the potential growth in wholesale business transactions, fund preservation and collection of fee‐based income with a strengthened product team function (from product sales
726
1,077
537
1,138
659 specialistincreasing to service product standards development) and product while
competitiveness
3. Foster alliances (collaboration) among business units in the effort to maximize
592
547 1,106
537 business units in the effort to maximize
the borrower’s business potential, from downstream to upstream, with a variety of product and service offerings
according to the current needs
545 741 522
1,075
592 106%
4. Increase the role of Syndicated & Structured Finance Group and Mandiri Securities in speeding up the
development of wholesale transaction banking by providing sophisticated and
36
2007 2008 2009 2010
Mandiri Sekuritas’ financial performance has been
impacted by the global economy crisis
p
y
g
y
Q1 ‘09 (Audited)
Q1 ‘10 (Audited)
Y‐o‐Y (%) (Rp Bn)
Revenues
66
79
20%
• Investment
Banking
30
21
(30%)
• Capital Market
Capital
Market
29
29
44
44
52%
52%
• Treasury
(0.4)
0
(100%)
• Investment
Mgt
7.7
14
82%
Operating
Expenses
30
49
63%
Earnings
After
Tax
(4.6)
21
NA
Equity
Transactions
2,828
18,612
558%
SUN
Transactions
5,658
10,523
86%
Bonds Underwritten
225
1 569
597%
Bonds
Underwritten
225
1,569
597%
ROA
(0.6%)
7.6%
NA
ROE
(2 8%)
11 5%
NA
ROE
(2.8%)
11.5%
NA
Treasury, FI & SAM
Q1 Q2 Q3 Q4
Rp bn Rp bn
Performance to Date: Q1 2010 Contribution Margin (after PPAP) Strategies for 2010
1. New strategy for remittance business in Middle East
209 37 68
343
Q Q Q Q
1,280
business in Middle East,
South Korea and Taiwan
2. Developing FX online dealing & web‐based FX quotation
1,382
275
316 377
263 system in order to generate
more FX volume from
corporate clients
3 E pand clients’ co erage for
307
316
118
803
3. Expand clients’ coverage for
foreign exchange,
marketable securities and
custody services business including foreign investors
103 946
348
322
(14%)
including foreign investors
4. Setting program and
strategy to become major player in banknotes business
266 210
455
343 153
p y
NII Fees Overhead Operating
Profit
Provisions Profit After
PPAP 2007 2008 2009 2010
Commercial
Banking:
Strong
revenues
from
both
Liabilities
&
Assets
Q1 Q2 Q3 Q4
Rp bn Rp bn
Performance to Date: Q1 2010 Contribution Margin (after PPAP) Strategies for 2010
1. Supporting Bank Mandiri Wh l l B ki i i
181
160
Wholesale Banking vision as an Integrated Wholesale Bank
through sophisticated, customized and completed services to can increase re en e especiall
4,449
241 1,200
261
3,026
increase revenue especially through potential business like Wholesale Banking Deposit and Fee Income.
f d k h
714
1,166
938 939
2,114
2. Increasing profit and market share through customer existing share of wallet, increasing revenue from new customer and NPL control.
795
1,266
564
714
2%
3. Provide best total business solution for customer by
developing product and services including quality bundling
487 852
923 939 946
product, quick services and competitive price.
4. Effective Alliance in units based on customer base in Commercial and
2007 2008* 2009* 2010*
* incl CM of Small Business & BSM 39
Commercial Banking :
Stronger Platform & Improved Distribution Capability
Expanding Scope of
Distribution,
2010
Solid
Low
&
Stable
Cost
Funds
Source
of
R T **
Product Q1 ‘09
Q1
‘10 Growth
Demand
19 26 25 47 32 24%
Rp Tn **
Sumatera Loans = Rp6.9 tn Funds = Rp4.6 tn
Kalimantan Loans = Rp2.7 tn Funds = Rp2.3 tn
Eastern Loans = Rp1.3 tn Funds = Rp0.7 tn
Deposit 19.26 25.47 32.24% Rupiah 13.34 17.64 32.23%
FX 5.92 7.83 32.26%
Saving
Deposit* 1.54 5.79 275.97%
Total Low
Cost Fund 20.80 31.26 50.29%
Cost Fund
Total
Funding 32.90 45.18 37.33%
Java and Bali Loans = Rp38.2 tn Funds = Rp18.9 tn
CBC = 19 Unit
Floor = 20 Unit TSC = 11 Unit TSD = 12 Unit
Low Cost Fund Ratio = 69.18% Funding from Java & Bali =84.55% of total funding
40 g
Strong growth from Bank Syariah Mandiri
13.6% 13.5%
Net Interest Margin & Cost of Funds
Financial Performance (Rp bn)
FY ’06 FY ‘07 FY ’08 FY ’09 Q1 ’10
12.3%12.4%
13.0%
12.4% 12.3% 12.7%
12.0% YoA
Financing 7,415 10,305 13,278 16,063 17,648
Deposits 8,219 11,106 14,899 19,338 21.028
Assets 9,555 12,888 17,066 22,037 23,812
EAT 65.48 114.64 196.42 290.94 87,388
Ratios:
ROA 1.10% 1.54% 1.83% 2.23% 2.04%
ROE 10 23% 15 94% 21 34% 21 40% 21 96%
6 2%
Syariah Financing (Rp tn)
ROE 10.23% 15.94% 21.34% 21.40% 21.96%
Net NPF 4.64% 3.43% 2.37% 1.34% 0.66%
6.
8 6 6. 6 6 6 6 6. 6
5.7%
5.4% 5.4% 5.4% 5.3% 5.3%5.7%
6.2% 5.9%
5.8% 5.6% 4.7%
Financing
90.2% 91.1% 91.1% 89.2% 99.1% 89.1% 86.9%
87.0%87.9% 83.1% 83.9% FDR
CoF
8
% 5.6% 6.3% 7% 6.3% 6.4% 6.3% 5.6% 5.6% 6.1% .6% 6.2%
10.31 11.15
12.73 13.77 13.25 13.43 14.23
14.94 16.06
17.65 FDR
NIM
2005 Q4 '06Q4 '07Q1 '08Q2 '08Q3 '08Q4 '08Q1 '09Q2 '09Q3 '09Q4 '09Q1 '10 7.41
Q4 '06 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10
Micro
&
Retail
Banking:
Rapidly
growing
our
high
margin
business
Performance to Date: Q1 2010 Contribution Margin (after PPAP)
Rp bn Rp bn
Strategies for 2010
1. Leverage our strength in
Q4 Q3 Q2
686
3,995
g g
Corporate and large
Commercial customers to quickly build high margin business
1,069
722 Q1
1,076
1,156
2. Continue to improve our payment infrastructure
3. Expand our distribution with a focus on high margin
3,152
1,319 449 318
843 82
2,204
business
4. Improve our sales culture and productivity of existing network
740
880
855 572
(32.4%)
843 82
761 5. Cross sell to grow our fee
based income business
574 727
1,126
761
235
2007 2008* 2009 * 2010*
Consumer
Finance:
Significant
growth
in
spread
and
fee
income
Performance to Date, Q1 2010 Contribution Margin (after PPAP)
Rp bn
Rp bn Rp bn
96
125 Q1 Q2
Q3 Q4
1,509
585
557 80
476
489
413
324
639
831
355
161 133
79
158
324
412
639
143 150 174 252
476
90 170
200 100
79
89%
43
NII Fees Overhead Operating
Profit
Provisions Profit After PPAP
S
i
M
i l
Supporting
Materials
Key
Quarterly
Balance
Sheet
Items
&
Financial
Ratios
IDR billion / % Q1 ‘09 Q4 ‘09 Q1 ‘10 Y‐o‐Y (%)
Gross Loans 176,878 198,547 201,935 14.17%
Government Bonds 88 375 89 133 86 818 (1 76%)
Government Bonds 88,375 89,133 86,818 (1.76%)
Total Assets 347,626 394,617 399,338 14.88%
Customer Deposits 272,048 319,550 312,907 15.02%
T l E i 31 942 35 109 36 782 %
Total Equity 31,942 35,109 36,782 15.15%
RoA‐before tax (p.a.) 2.35% 2.96% 2.75%
RoE – after tax (p.a.) 17.93% 22.07% 22.29%
Cost to Income(1) 35.05% 40.18% 39.54%
NIM (p.a.) 5.47% 5.22% 5.16%
LDR 63.84% 61.36% 64.12%
Gross NPL / Total Loans 5.85% 2.79% 2.56%
Provisions / NPLs 116.56% 200.45% 214.53%
Tier 1 CAR(2) 13.78% 12.50% 13.25%
Total CAR(2) 15.37% 15.55% 16.99%
Total CAR incl. Market Risk 15.30% 15.43% 16.83%
EPS (Rp) 66.99 341.72 95.54 42.62%
45 ( p)
Book Value/Share (Rp) 1,528 1,677 1,754 14.79%
(1) (G&A and employee expenses) / (Net Interest Income + Other Operating Income), excluding bond gains
Total
Assets
grew
14.9%
Y
‐
o
‐
Y
to
Rp399.3
tn
106 110 400 In t. fr om Bonds In t. fr om Loans 91. 7 6 67. 95.7 84.1 89.0 89.8 6.9 0.6 320 360 4 4 13 1 149 162.8 174.5 175.2 181.6 188.3 198.5 201.9 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 1 75.5 66.7 4 240 280 75.4% 74.1% 60.6% 68.0% 68.3% 67.3% (Rpt n) 44.0 43.0 48.3 65.4 75.9 94.4 106.9 105.1 107.8 108.8 117.7 114.3 116.3 121.7 38.5 135.5 9.6 8 5 160 200 47.1% 50.0% 46.9% 50.1% 52.2% 56.8% 58.8% 59.1% 57.2% 63.6% Tota l Assets 9 80 120 40.9% 41.0% 34.8% 31.0% 32.3% 32.4% 29.3% 29.3% 25.4% 22.4% 19.6% 20.5% 19.0% 19.0% 34.1% 40.6% 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 88.4 88.2 88.4 89.1 86.8 0 40 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q14 '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
1 '09
2 '09
3 '09
4 '09
1 '10
Additional Factors
Aggregate of Rp33.377 tn (US$ 3.668 bn) in written‐off loans as of end‐
March 2010, with significant recoveries on‐going:
2001:
Rp2 0 tn
2001:
Rp2.0 tn
2002:
Rp1.1 tn
2003:
Rp1.2 tn
2004:
Rp1 08 tn
Written‐off
Loans
Written‐off
Loans
2004:
Rp1.08 tn
2005:
Rp0.818 tn (US$ 83.2 mn)
2006:
Rp3.408 tn (US$ 378.5 mn)*
2007:
Rp1 531 tn (US$ 249 3 mn)
Loans
Loans
2007:
Rp1.531 tn (US$ 249.3 mn)
2008:
Rp2.309 tn (US$ 211.8 mn)
9Mo ’09:
Rp1.489 tn (US$ 146.4 mn)
Q4 ‘09:
Rp0 775 tn (US$ 82 5 mn)
Q4
09:
Rp0.775 tn (US$ 82.5 mn)
Q1 ‘10:
Rp0.287 tn (US$ 31.6 mn)
*
including the write‐back of RGM loans totaling Rp2.336 tnSummary Quarterly Balance Sheet: Q1 ‘09 –‘10
Q1 ‘09 Q2 ‘09 Q3 ‘09 Q4 ‘09 Q1 ‘10 Y‐o‐Y
Rp (tn) Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# %
Total Assets 347.63 358.90 366.49 394.62 399.24 43.87 14.8%
Cash 6.07 5.61 9.39 8.87 6.63 0.73 9.3%
Placement w/BI 17.92 1.97 n/a
Current Accounts w/BI 12.92 11.96 13.42 16.06 ‐ n/a n/a
Certificates of BI 16.0516.05 11.2111.21 12.2612.26 13.6513.65 ‐ n/an/a n/an/a
Other Placements w/BI 3.01 5.15 4.68 19.10 ‐ n/a n/a
Current Accounts & Placements
w/Other Banks 27.49 29.00 25.59 26.57 27.20 2.99 (1.1%)
Securities ‐Net 3.89 3.22 9.75 3.73 122.30 13.44 n/a
Government Bonds 88.27 88.24 88.36 89.13 86.82 9.54 (1.8%)
Trading 0.01 0.02 0.25 0.43 0.27 0.03 122.3%
AFS 26.22 26.22 26.12 25.92 63.13 6.94 140.8%
HTM 62.03 62.01 62.00 62.79 23.42 2.57 (62.2%)
Loans 176.88 181.61 188.28 198.55 201.94 22.19 14.2%
Performing Loans 165.51 172.23 180.37 192.34 196.57 21.60 18.8%
Non‐Performing Loans 11.37 9.39 7.92 6.21 5.36 0.59 (52.8%)
Allowances (13.25)(13.25) (12.78)(12.78) (12.29)(12.29) (12.45)(12.45) ‐11.5011.50 ‐1.261.26 (13.2%)(13.2%)
Loans – Net 163.63 168.83 176.00 186.10 190.43 20.93 16.4%
Total Deposits – Non‐Bank 272.05 287.06 295.55 319.55 312.91 34.39 15.0%
Demand Deposits 64.75 65.61 66.79 72.70 69.80 7.67 7.8%
Savings Deposits 91 00 97 13 102 39 113 80 106 98 11 76 17 6%
48
Savings Deposits 91.00 97.13 102.39 113.80 106.98 11.76 17.6%
Certificate & Time Deposits 116.30 124.32 126.37 133.06 136.13 14.96 17.0%
Shareholders’ Equity 31.94 31.44 33.10 35.11 36.78 4.04 15.2%
Summary Quarterly P&L
Summary
P&L
Q1 2009 Q4 2009 Q1 2010 Q‐o‐Q Y‐o‐Y
Rp (Billions) % of
Av.Assets* Rp (Billions)
% of
Av.Assets* Rp (Billions)
% of
Av.Assets (%) (%)
Interest Income 8,568 9.7% 8,240 8.7% 8,030 8.1% 6.2% (6.3%)
Interest Expense (4,174) (4.7%) (3,630) (3.8%) (3,396) (3.4%) (1.0%) (18.6%)
Net Interest Income
Net Interest Income 4,394 5.0% 4,610 4.8% 4,634 4.7% 12.8% 5.5%
Other Operating Income 1,149 1.3% 1,668 1.8% 1,327 1.3% 24.9% 15.5%
Gain from Increase in Value &
l f d 58 0.1% (1) 0.0% 90 0.1% (101.7%) 55.2%
Sale of Bonds 58 0.1% (1) 0.0% 90 0.1% (101.7%) 55.2%
Provisions, Net (1,375) (1.6%) 420 0.4% (692) (0.7%) (195.0%) (49.7%)
Personnel Expenses ( ,(1,116)) (1.3%)( ) ( ,(1,329)) ((1.4%)) (1,306)( , ) (1.3%)( ) 30.4% 17.0%
G & A Expenses (827) (0.9%) (1,384) (1.5%) (1,051) (1.1%) 24.8% 27.1%
Other Operating Expenses** (268) (0.3%) (345) (0.4%) (383) (0.4%) (30.9%) 42.9%
Profit from Operations 2 015 2 3% 3 637 3 8% 2 619 2 6% 50 8% 30 0%
Profit from Operations 2,015 2.3% 3,637 3.8% 2,619 2.6% 50.8% 30.0%
Non Operating Income 58 0.1% 66 0.1% 114 0.1% (68.4%) 96.9%
Net Income Before Tax 2,073 2.3% 3,703 3.9% 2,733 2.8% 41.3% 31.8%
49
Net Income After Tax 1,400 1.6% 2,535 2.7% 2,003 2.0% 49.7% 43.1%
* % of Average Assets on an annualized basis
Limited Impact on Government Recap Bonds
Maturity/ Trading Portfolio Available for Sale Held to Recap Bond Portfolio by Type and Maturity (Rp86,819 bn)
0.06 70
Bonds by Rate Type & Portfolio as of March 2010 (Rp bn)
y/
R
