PT Bank Mandiri (Persero) Tbk 3 rd Quarter 2008 Results Presentation

Transcription

1 PT Bank Mandiri (Persero) Tbk 3 rd Quarter 2008 Results Presentation

2 Share Information 4,000 3,500 3,000 2,500 2,000 1,500 1, Jul-03 5-Sep-03 3-Nov Jan Mar May-04 BMRI JCI 12-Jul-04 7-Sep-04 4-Nov Jan Mar May-05 7-Jul-05 5-Sep Oct-05 4-Jan-06 3-Mar-06 4-May-06 3-Jul Aug-06 2-Nov-06 2-Jan Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug-08 Description Per 30 September 2008 % of Investors # of Shares % DOMESTIC 1 Government of RI 1 14,000,000, % 2 Retail 13, ,670, % 3 Employees 9, ,603, % 4 Cooperatives 2 465, % 5 Foundations 16 23,056, % 6 Pension Funds ,321, % 7 Insurance Cos ,244, % 8 Banks 1 180, % 9 Corporations ,845, % 10 Mutual Funds ,582, % Total 22,968 16,265,968, % INTERNATIONAL 1 Retail 86 2,489, % 2 Institutional 419 4,636,670, % Total 505 4,639,159, % TOTAL 23,473 20,905,127, % from: BMRI JCI IPO % % Jan % -32.9% 85

3 Bank Mandiri Presentation Contents Results Overview Q Financial Highlights Q Growth Momentum and Balance Sheet Loan Growth & LDR Liquidity Strategy Quarterly Funding Mix & Deposit Costs Quarterly Net Interest Margins Quarterly Fees & Commissions Recap Bond Portfolio Analysis Quarterly Overhead Expenses & Detail Quarterly NPL Movement, Asset Quality & Provisioning New NPL Formation Top NPL Debtor Developments Operating Profit, Core Earnings, PAT Operating Performance Highlights SBU & Subsidiary Overview Corporate Banking Treasury & International Banking Commercial Banking Micro & Retail Banking Consumer Finance 2008 Goals Supporting Materials Page #

4 Key Financial Highlights Bank Mandiri s 9-Month 2008 Performance continued to demonstrate marked improvements in a number of key indicators: 9-Month Month 2008 % Loans Rp121.7 tn Rp162.8 tn 33.7% Net NPL Ratio 3.30% 0.56% (83.0%) Gross NPL Ratio 12.21% 4.44% (63.6%) Low Cost Funds Ratio 58.2% 58.6% 0.7% [Low Cost Funds (Rp)] Rp122.3 tn Rp143.8 tn 17.5% NIM 5.14% (1) 5.46% 6.2% Efficiency Ratio 44.7% (2) 43.0% (3.8%) Earnings After Tax Rp3,179 bn 3,954 bn 24.4% Including non-recurring interest income: (1) 5.40%; (2) 42.98% 2

5 Building momentum for growth Loans by SBU* (Rp Bn) Y-o-Y Deposits by Product Bank Only (Rp Bn) Y-o-Y Corp Int'l Comm Cons Small Micro % 35.4% 46.6% 34.0% 102.7% 59.1% Rp Savings Deposits FX Demand Deposits FX Time Deposits Rp Demand Deposits Rp Time Deposits % 13.1% (34.0%) 24.2% 25.0% 0 Q4 '05 Q4 '06 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 0 Q4 '05 Q4 '06 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 *Cash Collateral Loans have been reallocated to Small Business 3

6 Solid balance sheet insulates against rate increases (Bank Only) Cash Assets Amount 7,966 % of Assets 2.67% Liabilities Current Account Amount 54,453 % of Liab % SBI & BI Placement (net) 31, % Savings 82, % Placement w/other banks (net) 6, % Time Deposits (Rp) 78, % Marketable Securities (net) 2, % Time Deposits (Fx) 16, % Government Bonds 88, % Total Deposits 230, % Loans (Gross) 146, % Securities Issued % Provisions (10,497) (3.52%) Deposits from other banks 6, % Other Advances (net) 9, % Borrowings 10, % Investments 2, % Other Interest bearing liabilities 2, % Other Assets 12, % Non Interest bearing liabilities 17, % Equity 29, % Total 297, % Total 297, % 4

7 LDR rises to 65.0% as a result of 33.7% Y-o-Y consolidated growth Quarterly Loan Data Consolidated Quarterly Loan Segment Details Bank Only Loans (Rp tn) LDR (%) 42.5% 35.4% 26.3% 65.0% 62.2% 53.7% 57.2% 56.4% 54.3% Corporate Commercial Consumer Small Micro Q4 '00 Q4 '01 Q4 '02 Q4 '03 Q4 '04 Q4 '05 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '02 Q4 '03 Q4 '04 By Segment (Bank only) Q4 '05 Q4 '06 Loans (Rp tn) Q1 '07 Q2 '07 Q3 '07 Q4 '07 Y-O-Y Growth (%) Q1 '08 Q2 '08 % of Portfolio Q3 ' % Corporate Commercial % 19.28% 46.93% 28.12% 8.8% Small Micro % 83.31% 9.40% 2.76% QoQ Growth (%) YoY Growth (%) Consumer Total % 31.50% As of Sept 2008; Non-consolidated numbers 12.79% % 5

8 Rp25.2 tn in loans disbursed in Q3 08 Loan Movement (Rp tn) Bank Only Loan Disbursement by Segment (Rp tn) Bank Only Q2 '08 Disbursment Installment Payment FX Impact Write-Offs Q3 '08 Corporate Commercial Small Micro Consumer Finance Total Disbursements 6

9 Mandiri strategies to address liquidity concerns 1 Hands-On Liquidity Management At present, Bank Mandiri s liquidity level is above our safety level, and is projected to be controlled in the short, medium and long terms. We are closely monitoring and anticipating cash flow requirements, especially FX ( loans and trade finance) to control liquidity. We are working with Bank Indonesia to anticipate FX liquidity needs for customers who have underlying transactions in trade finance ( Export & Import) We intend to increase our funding to strengthen liquidity, drawing on our strong customer base, depth of branches supporting services, strong electronic channels, prime service and position among the largest State Owned Enterprises. 2 Tighten Risk Acceptance Criteria Selective lending in conjunction with an overall review of portfolios in all segments Priority in rapidly decreasing FX credit exposure through conversion (at this time has reached USD 800 million), syndication (sell down) and debtor payments, while still selectively supporting prime customers To anticipate worsening conditions, we are reviewing and revitalizing our front end, middle end and back end strategies 7

10 Mandiri strategies to address liquidity concerns 3 Cautious FX Position Management 4 Enhance Operational Efficiency In trade finance, we are being selective on financing for new LC Imports and minimize the possibility of customer defaults, making sure that customers have funds for repaying the financing. Manage our NOP prudently and avoid FX activities without underlying transactions. Special review and monitoring of trade finance and Foreign Exchange from exporters and importers possibly impacted by the crisis. Review of Capital expenditures and overhead costs. Capital expenditures still in process are being selectively renegotiated, canceled, or rescheduled. Overhead costs and G&A expenses focusing on fixed costs that are routine. New G&A initiatives will be prioritized for efficiency. 5 Establish Business Command Center Established Business Command Center (BCC) as a data and information center to integrate and accelerate the flow of critical information to all decision-makers. BCC is also equipped to call meetings with decision-makers, depending on criticality of the situation. A protocol plan is established to make swift decisions if the situation rapidly deteriorates. 8

11 Mandiri FX loans relatively well controlled Low FX loan NPLs Sector concentration of FX Loans does not exceed 20% Ex-Restructured FX Loans relatively low (USD Million) Sector Nominal % (Rp Billion) 2, , , ,763 4,011 Farming Labour & Farming Oil & Gas Mfg F&B Textile Pulp & Wood Processing % 15.95% 11.20% 6.76% 10.43% 12.07% 7,211 44% ,998 Mfg-Metal Mining Mfg-Other % 4.72% 5.17% 9,031 9,031 PL 79% Utilities % Construction % Current S. Mention Sub Standard Doubful Loss Total Trading, Resto & Hotel Distribution, Communication % Storage Bus Services Soc Services Others Total ,011 (USD Million) 8.09% 2.56% 2.68% 0.00% 4.86% 4.86% 56% NPL 21% 2,098 63% 1, % Rp Va Total Rp Va 9

12 FX loan exposure contained as FX funding rises (USD million) 3, FX Loans 4,018 4,007 4,075 4,011 4, (USD million) FX Funding (343) ,952 3,790 3,815 3,865 3,934 4,007 3,687 3,694 3,756 3, ,549 1,604 1,751 1,862 1,720 1,904 1,876 1,941 2,928 2,994 2,994 2,958 2,998 3,013 2,914 2,534 1,469 1,413 1,406 1,230 1,124 1,297 1,405 1, Aug Sep Sep Sep Sep Oct Oct Oct-08 Current S.Mention Sub Standard Doubtful Loss 31-Aug Sep Sep Sep Sep Oct Oct Oct-08 Demand Deposit Time Deposit Savings 10

13 Q3 Deposits rise by 15.5% Y-o-Y and 4.3% Q-o-Q Average Quarterly Deposit Costs (%) Deposit Analysis Bank Only Rp DD Rp Savings Rp TD 1 Mo. SBIs 13.9% 13.1% Rp Savings Deposits Rp Demand Deposits FX Demand Deposits 15% Low-Cost Deposits (%) Rp Time Deposits FX Time Deposits 11.9% % 10.4% 11.4% 8.8% 9.5% 10% 8.2% 8.0% 8.3% % % % % % % 7.4% % 6.8% 6.3% 6.9% 7.4% 5.3% 4.7% % % % % % 6.1% 3.2% 3.0% 3.6% 5% 2.9% 3.7% 2.5% 2.5% 2.8% 2.2% 2.6% 3.0% 120 0% FX DD FX TD % 3.9% 4.2% 4.0% 4.5% 2.8% 2.6% 2.9% 2.6% % 1.7% 2.0% 2.4% 1.5% 1.7% 1.1% 2.1% 2.2% 0.8% 0.5% 3.0% 2.4% 1.5% 0.0% 0 Q3 '08 Q2 '08 Q1 '08 Q4 '07 Q3 '07 Q2 '07 Q1 '07 Q4 '06 Q4 '05 Q4 '04 Q4 '03 Q4 '02 Q3 '08 Q2 '08 Q1 '08 Q4 '07 Q3 '07 Q2 '07 Q1 '07 Q4 '06 Q4 '05 Q4 '04 Q4 '03 Q4 '02 Q4 '01 Q4 '00 Q4 '99 11

14 Q3 NIM reaches 6.0% on asset yields of 10.1% Quarterly Net Interest Margins* Quarterly Yields & Costs by Currency* 13.0% 2.4% Q4 '00 NIM 3.9% Q4 ' % 10.8% 10.8% 2.8% Q4 '02 9.5% 8.9% 6.3% 3.7% Q4 '03 4.8% 4.3% Q4 '04 3.6% Q4 '05 Yield on Assets Cost of Funds 11.0% 10.7% 7.3% 6.4% 4.9% Q4 '06 5.5% Q1 '07 9.4% 4.8% 4.9% Q2 '07 4.9% Q3 ' % 9.3% 9.0% 9.2% 4.5% 4.3% 3.8% 4.2% 4.7% Q4 '07 5.1% Q1 '08 5.5% Q2 '08 *Excluding the impact of non-recurring interest income 6.0% Q3 '08 20% 15% 10% 5% 0% 15% 10% 5% 0% 18.9% 17.6% 15.9% IDR 14.0% 17.6% 14.1% 11.9% 13.2% 12.5% 12.1% 12.0% 12.1% 14.4% 10.4% 11.1% 11.1% 11.7% 7.4% 10.8% 8.8% 9.2% 8.2% 8.3% 8.2% 8.0% 7.7% 8.0% 9.2% 7.3% 6.9% 5.4% 5.0% 4.6% 4.6% 4.0% Avg Loan Yield Avg Bond Yield Avg 1-Mo Bill Avg COF 11.8% 9.5% FX 6.5% 7.6% 7.3% 5.6% 5.8% 5.1% 5.7% 5.8% 5.3% 5.8% 4.8% 6.7% 3.8% 4.9% 4.4% 2.7% 2.7% 2.3% 4.0% 3.4% 3.5% 1.9% 2.6% 2.6% 1.4%1.1% 1.8% Q3 '08 Q2 '08 Q1 '08 Q4 '07 Q3 '07 Q2 '07 Q1 '07 Q4 '06 Q4 '05 Q4 '04 Q4 '03 Q4 '02 Q4 '01 Q4 '00 12

15 9-Mo. Fees & Commissions grew by 40.3% Y-o-Y Breakdown of Q & 2008 Non-Loan Related Fees & Commissions (Rp bn) Non-Loan Related Fees & Commissions 9-Mo. 07 Q2 08 Q Mo Mo. % (Y-o-Y) Q3 % (Q-o-Q) Administration Fees % 15.1% Opening L/Cs, Bank Guarantees & Capital Markets % 20.2% Subsidiaries % (21.1%) Transfers, Collections, Clearing & Bank Reference % 2.1% Credit Cards % 15.0% Mutual Funds & ORI % (9.2%) Others* % (4.8%) Total 1, , % 4.3% Total Operating Income # 11, , , , % 9.8% Non-Loan Related Fees to Operating Income** 15.03% 18.08% 17.17% 17.71% 17.8% (5.0%) * Others includes Syndication, Payment Points, ATMs, Debit Cards, etc. ** Non-Loan related fees & commissions/(total Operating Income - Non-recurring interest income) # Excluding non-recurring interest income 13

16 Limited Impact on Government Recap Bonds Recap Bond Portfolio by Type and Maturity (Rp bn) Bonds by Rate Type & Portfolio as of Sep 2008 (Rp bn) Maturity/ Rp bn Fixed Rate Bonds < 1 year 1-5 year 5-10 year > 10 year Sub Total Variable Rate Bonds < 1 year Trading Portfolio Nominal MTM Available for Sale Nominal MTM Held to Maturity - 1, , Fixed Rate Variable Rate * Mark to Market impacts Profit # Mark to Market impacts Equity ^ Nominal value Q3 Recap Bond Gains/(Losses) (Rp bn) Trading* AFS# HTM^ 1-5 year 5-10 year > 10 year Sub Total T o t a l ,639 25,840 26, ,859 12,607 25,765 26,651-32,761 26,984 59,745 61,451 Realized Gains/Losses on Bonds Unrealized Gains/Losses on Bonds Total Q (12.36) (3.77) Q (6.88) Mo. 08 (55.51) (6.28) (61.79) 14

17 Q3 Cost to Income Ratio drops to 40.6% on lower G&A expense, bringing YTD average to 43.1% Quarterly Consolidated Operating Expenses & CIR* Breakdown of Q & 2008 Operating Expenses CIR* (%) Annual Avg CIR (%) Personnel Expenses Q3 07 Q3 08 Q3 (Y-o-Y) 9-Mo. (Y-o-Y) 58.9% Base Salary Other Allowances 327, , , , % 5.35% 18.51% 15.55% 40.4% 28.2% 47.2% 40.2% 43.1% 47.2% 40.6% Post Empl. Benefits Training Subsidiaries Total Personnel Expenses 86,844 67,250 92,539 1,049, ,563 64,121 (4.65%) 17.43% 122,849 1,171, % 32.75% 11.69% 48.56% 39.77% 21.42% , ,049 1,309 1,020 1,175 1,172 G & A Expenses IT & Telecoms Occupancy Related 203, , , ,926 (10.16%) 6.19% (3.59%) 7.95% 957 Promo. & Sponsor. Transport & Travel 168,179 71,109 93,074 77,932 (44.66%) 9.60% (30.29%) 7.24% , , , Prof. Services Employee Related 92,996 83,216 95,592 87, % 4.71% 12.57% 22.34% Q3 '08 Q2 '08 Q1 '08 Q4 '07 Q3 '07 Q2 '07 Q1 '07 Q4 '06 Q4 '05 Q4 '04 Q4 '03 Q4 '02 Q4 '01 Q4 '00 G&A Expenses (Rp bn) Personnel Expenses (Rp bn) *Excluding the impact of non-recurring interest income & bond gains Subsidiaries Total G & A Expenses 92, , , , % (4.32%) 34.87% 12.35% 15

18 Q3 NPLs of Rp7.2 tn due to FX impacts despite higher payments and lower downgrades Non-Performing Loan Movements (Rp bn) Bank Only Movement by Customer Segment (Rp Bn) 7, , Cons Micro/Small Comm Corp Q2 '08 U/G to PL D/G from PL Payments Write-Offs Other Q3 ' UG to PL DG to NPL W/O 16

19 NPL Movement - Consolidated Gross NPLs decline to 4.4% with provisioning coverage of 138.9% Category 2 Loans Bank Only % 20,000 Cat 2 % 18, % 190.4% 201.7% 16, % 35.7% 146.7% 138.9% 122.6% 151.1% 14, % 139.1% 109.0% 128.8% 129.5% 12, % 24.8% 100.9% 10,000 50% 40% 30% 20% 10% 0% 19.8% 15.5% 16.3% 16.3% 70.0% 8, % 15.5% 14.8% 11.9% 12.2% 44.4% 6, % 9.2% 9.4% 9.2% 4, % 9.7% 7.2% 7.1% 7.3% 13,502 13,451 14,058 15,148 15,586 15,854 16,750 16,966 12,912 8,334 10,983 16,202 12,655 15,350 4,033 2, % 4.74% 5.14% 3.3% 15.3% % Q3 '08 Q2 '08 Q1 '08 Q4 '07 Q3 '07 Q2 '07 Q1 '07 Q4 '06 Q4 '05 Q4 '04 Q4 '03 Q4 '02 Q4 '01 Q4 '00 Q4 '99 Q3 '08 Q2 '08 Q1 '08 Q4 '07 Q3 '07 Q2 '07 Q1 '07 Q4 '06 Q4 '05 Q4 '04 Q4 '03 Q4 '02 Q4 '01 Q4 '00 Q4 ' Special Mention Loans (Rp Bn) Gross NPL Ratio Net NPL Ratio Prov/NPL Prov/NPL incl. Coll.

20 Cash Provisioning for Category 3 and 4 loans now at 77.4% and 89.8% respectively Non-Performing Loans by Segment Collateral Valuation Details Corporate NPLs (Rp tn) 4.68 Q3 (Rp tn) (0.07) NPLs (%) 6.81% Collectibility Total Cash Prov. (Rp bn) 1 1, , , ,355 Commercial Small % 2.91% % Cash Provisions 1.1% 17.9% 77.4% 89.8% 100.0% Micro Consumer (0.0) % 2.57% Collateral Prov. (Rp bn) - 4, Total %* # of Accounts * Excluding Restructuring Losses and loans to other banks. Bank Mandiri s current provisioning policy adheres to BI requirements As of 30 September 08, loan loss provisions excess to BI requirements = Rp1,787 bn Provisioning Policy Collectibility BI Req. BMRI Policy BMRI pre-2005 Performing Loans 1 1% 1% 2% 2 5% 5% 15% 3 15% 15% 50% Non-Performing Loans 4 50% 50% 100% 5 100% 100% 100% Collateral has been valued for 24 accounts and collateral provisions of Rp5,855 bn (30.3% of appraised value) have been credited against loan balances of Rp6,990 bn Collateral value is credited against cash provisioning requirements on a conservative basis. For assets valued above Rp 5bn: 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 30% of appraised value within 18 to 24 months No value beyond 24 months from appraisal 18

21 Annualized net downgrades of 0.84% on new loans in Q3 Total Loans originated since 2005 Net Upgrades (%)/Downgrades (%) # Q Details Loan Background Q3 08 Balance (Rp bn) Q Q Q Q Q Q Q Q Q DG to NPL % UG to PL % Corporate 50, Commercial 28, Small/Micro 13, Consumer 16, Total 108, # % downgrades and upgrades are quarterly % figures 19

22 Progress on selected debtors as of 30 Sept 08 Semen Bosowa Maros Loans outstanding to this debtor as of 30 Sept 2008 were Rp1.087 billion. The restructuring approval on Semen Bosowa Maros has been signed on 25 September The debtor is now being monitored for an upgrade by December 2008 at the latest. The loans have been fully provided, and are paying commercial interest rates for tranches I and II totaling Rp370 bn, with the potential for upgrading by the end of the year. Argo Pantes Group Argo Pantes group consist of 8 companies (Argo Pantes, Alfa Goldland realty, Budidharma Jakarta, Daya Manunggal, Grand Pintalan Textile Industries, Grand Textile Industries, Jakarta Cakratunggal Steel Mills and Lawe Adyaprima Spinning Mills). Loans outstanding to this group as of 30 Sept 2008 were Rp1, billion. The obligor repaid loans to PT Jakarta Cakratunggal Steel Mills amounting to Rp168 billion and a part of unsustainable loans of PT Argo Pantes amounting to Rp280 billion at 24 September The remaining unsustainable portion to this obligor is Rp340 billion. The loans have been fully provided. 20

23 9-Mo. 08 operating profit up 26.2% from 9-Mo. 07 excluding non-recurring interest income 9-Month Month 2008 Rp billion Rp billion 3,123 2,390 11,009 6,701 5,712 9,684 6,362 7,431 Up 26.2% Excluding Nonrecurring Q1 Interest Income 5,887 Net Interest Fee-Based Income Overhead Expenses & Others Pre-provision Operating Profit Income 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 Pre-provision Operating Profit 21

24 9-Mo. Core earnings up 26.6% to Rp7,149 bn Pre-Provision Operating Profit Core Earnings IDR bn 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, ,145 Gain on Sale/Value of Securities FX Gain Non-Recurring Interest Core Earnings 2,021 3,514 2, , , , , , ,306 5,647 7, Mo. '08 Profit After Tax & ROE 21.5% % , % 1,017 1, % 22.8% 1,528 1,549 1,408 1,329 1,744 (623) RoE - After Tax (Annualized) 10.0% 1,234 1,166 1,040 1,113 1,027 1,345 1,221 1, Q1 PAT Q2 PAT Q3 PAT Q4 PAT 15.8% 18.1% 22

25 Operating Performance Highlights 23

26 Recap: Leveraging leadership in cash generating businesses to build emerging and future growth engines SBU 9-Month 08 Contribution Margin 507 2,553 Consumer Finance & Micro & Retail Banking Rp3,708 bn Building Future Growth Engine 1 Corporate & Treasury Rp2,509 bn 3,201 3 Optimizing Synergies Across SBUs Leveraging Our Cash Generator 1,950 5,614 Strengthen Emerging Business 2 1, Commercial Banking Rp1,950 bn Corporate Treasury & Int'l Commercial Micro & Retail Consumer Finance Others, Incl. SAM Profit Before Tax Contribution Margin (Net Profit Before Tax) 24

27 supported by 5 pillars of subsidiaries Syariah Banking Investment Bank Insurance Niche Banking Multi-Finance Bank Sinar Harapan Bali TUNAS FINANCE Total Assets Bond Trading Volume Total Assets Total Loans Total Financing Rp16.5 tn Rp23.28 tn Rp4.025 tn Rp250 bn Rp2.436 bn Total Financing Rp13.8 tn Bond Underwriting Rp2.6 tn Annual FYP Rp bn Net Interest Margin* 13.16% Net Interest Margin 6.18% Total Deposits Rp13.9 tn Equity Trading Volume Rp37.1 tn Fee Contribution Rp80.83 bn ROA 3.83% ROA 2.78% ROE 22.2% ROA 3.3% ROE 52.4% ROE 15.63% ROE 36.28% Remain the leader in syariah financing Capital injection program over 3 years Cross-sell syariah products to Mandiri customers Expansion of business to fully utilize current capital base Cross-sell capital market services to broad range of Mandiri customers Refocus business toward higher fee income Provide end-to-end bank assurance business Continue to build crosssell opportunities in various segments Bank assurance products complete our suite of consumer offerings Enhance operating model Improve risk management systems and IT Improve productivity Use Bank Mandiri s network infrastructure throughout Indonesia to develop multi-finance segment, especially in vehicle-ownership financing. * Excluding deposits made by Bank Mandiri 25

28 Each SBU contributing to strong NII & Fee growth Total Net Interest Income (Rp bn) Total Fees & Other Op. Inc. (Rp bn) Total Contribution Margin (Rp bn) Corporate 1, ,824 Treasury Commercial 1, ,950 MRB 4,537 1,441 3,201 Consumer Finance Total 9,503 2,706 8,167 26

29 Corporate Banking: Contribution Margin declines on rate increase Performance to Date, 9-Month 2008 Contribution Margin (after PPAP) Rp bn 1, , ,824 Q1 Q2 Q3 Q4 2, Rp bn 2, ,077 (18%) 1, Asset Spread Liabilities Spread Fees Overhead Operating Profit Provisions Profit After PPAP (6)

30 Corporate Banking: Strengthening Growth in Key Areas Breakdown of Net Expansion by Sector, Q3 07 Q3 08 (Total Rp17.67 tn) Mfg-F&B Comm Mining-Oil & Gas Bus Serv Plantations Constr Mfg-Oth Mining-Other Trading-Distr Trading-Exp Trading-Oth Trading-H&R Mfg-Text Mfg-Metal Oth Agri Other Mfg-P&P Rp Billion % 5, % 4, % 2, % 2, % 1, % 1, % 1, % % % % % (274) (204.40%) (621) (23.51%) (622) (107.69%) (812) (943.39%) (1,286) (26.54%) (1,724) (48.61%) Consumer Loans from Alliance Program (10 top corporate clients) Rp Billion 1,259 1, Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4'07 Q1 '08 Q2 '08 Q3 '08 Plantation Small & Micro Lending from Alliance Program Rp Billion (2,000) (1,000) 0 1,000 2,000 3,000 4,000 5,000 6,000 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4'07 Q1 '08 Q2 '08 Q3 '08 28

31 Mandiri Sekuritas continues to be well capitalized (Rp Bn) 9-Mo Mo. 08 Growth Y-o-Y (%) Revenues % Investment Banking % Capital Market (17%) Treasury % Investment Mgt % Operating Expenses % Earnings After Tax (45%) Equity Transactions 31,566 37,133 18% SUN Transactions 55,403 23,282 (58%) Bonds Underwritten 2,775 2,633 (5%) ROA 6.1% 3.3% (46%) ROE 14.5% 7.9% (46%) Total Capital (9%) 29

32 Treasury & International Banking Performance to Date, 9-Month 2008 Rp bn Net Interest Income Rp bn Mo. '06 9-Mo. '07 9-Mo. ' Business Volume (Rp bn) Loans Deposits Rp bn 5,290 4,348 4,231 2,823 3, ,512 1,011 Interest Income Fees Revenue Losses on GB & Securities Overhead Provisions Profit After PPAP Mo. '08 30

33 Commercial Banking: Strong revenues from both Liabilities & Assets Performance to Date, 9-Month 2008 Contribution Margin (after PPAP) Rp bn Q1 Q2 Q3 Q4 Rp bn 1, , ,950 1, , % 1, Asset Spread Liabilities Spread Fees Overhead Operating Profit Provisions Profit After PPAP (297)

34 Commercial Banking: Strong growth in both Liabilities & Assets Breakdown of Net Expansion by Sector, Q3 07 Q3 08 (Total Rp6.66 tn) Other Constr Distribution Trans Mfg-Oth Trading-Other Plantations Mfg-Chem Mfg-P&P Mfg-Text Mfg-F&B Electricity Mining-Oil & Gas Mfg-Wood Vehicles Real Est Serv % 1, % 1, % % % % % % % % % % (143) (72.28%) (166) (34.73%) (241) (25.56%) (448) (114.83%) (635) (260.79%) Loan & Deposit Geographic Distribution, Q Jakarta Java (ex-jkt), Bali & Nusa Tenggara North Sumatera South Sumatera Kalimantan Sulawesi & Eastern Indonesia Rp2,558; 29.7% Rp2,423; Rp844; 40.6% 14.9% Rp3,883; 53.1% Rp1,732; (8.3%) Rp2,683; 33.3% Rp3,401; (13.8%) Rp9,983; 38.1% Loans: Volume (Rp bn); Y-o-Y % Rp3,309; 72.4% Deposits: Volume (Rp bn); Y-o-Y % Rp5,783; 5.1% Rp19,018; 29.4% Rp15,955; 22.5% (450) (650) (50) (250) 1, ,750 1,550 1,350 32

35 Strong growth from our Syariah Banking subsidiary Financial Performance (Rp bn) Net Interest Margin & Cost of Funds Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Financing 9,296 10,305 11,150 12,730 13,766 Deposits Assets EAT Ratios: 9,865 10,438 88,59 11,106 12, ,246 14, ,270 16, ,890 16, YoA Spread 13.6% 12.3% 12.1% 12.0% 12.2% 12.4% 13.5% 13.0% 12.4% ROA ROE 1.65% 16.57% 1.54% 15.94% 2.05% 22.64% 1.94% 22.78% 1.91% 22.18% 7.9% 6.9% 7.2% 6.8% 6.9% 7.0% 8.1% 7.7% 7.1% Net NPF 3.89% 3.43% 2.63% 2.15% 2.20% CoF Syariah Financing (Rp tn) FDR 5.7% 5.4% 4.9% 5.2% 5.3% 5.4% 5.4% 5.3% 5.3% 90.2% % 95.6% % % 91.1% % % NIM 6.8% 5.6% 6.4% 6.0% 6.1% 6.3% 6.7% 6.3% 6.4% Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 ' Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 33

36 Micro & Retail Banking: Rapidly growing our high margin business Performance to Date, 9-Month 2008 Contribution Margin (after PPAP) Rp bn 1,441 Q1 Q2 Q3 Q4 Rp bn 3,201 2,658 3,900 3, ,201 1, , % 1,280 1, Asset Spread Liabilities Spread Fees Overhead Operating Profit Provisions Profit After PPAP

37 Building a strong savings deposit franchise Savings Deposit Growth Transaction channel growth Avg ATM Daily Vol (000) Withdrawal/Inquiry Transfer Payment Other Savings Deposits (Rp tn) As % of Total Deposits National Share of Savings Deposits (%) 40.0% 34.6% 35.6% 30.6% 31.7% 29.2% 1, % Quarterly Call Center Trans. (000) Quarterly SMS Trans. (000) 18.5% 17.6% 17.2% 17.5% 16.2% 2,988 2,784 3,029 3, % 11.0% 1,722 1,485 1,833 2,057 1, % 15,840 Q3 '08 19,116 Q2 '08 16,857 Q1 '08 15,864 Q4 '07 14,487 Q3 '07 11,813 Q2 '07 12,140 Q1 '07 11,435 Q4 '06 6,988 Q4 '05 1,016 3,072 Q4 '04 Q4 '03 Q4 '02 Q4 '01 Q4 '00 Q3 '08 Q2 '08 Q1 '08 Q4 '07 Q3 '07 Q2 '07 Q1 '07 Q4 '06 Q4 '05 Q4 '04 Q4 '03 Q4 '02 Q4 '01 Q4 ' ,

38 Micro & Retail Banking: Focus on growing our high yield businesses Small Credits Micro Credits KUR Loan Yields (Rp Bn) (Rp Bn) 12.5% 19.2% (Rp Bn) 1,259% 9,907 3, % 13,415 Q Growth Q ,204 1, % 4,043 Q Growth Q Q Growth Q ,174 Non-Prog Disbursement Breakdown (9-Mo. 08) Disbursement Breakdown (9-Mo. 08) 119 Program 850 Coops 126 Alliances 1 Channeling 137 Food Suff. 601 Cash Coll 5,008 TOTAL 461 2,309 Rural Banks Micro Unsecured Micro 0 2,771 TOTAL Kredit Usaha Rakyat (KUR): 1. Loan aiming for productivity with limit up to Rp500 million. 2. Maximum interest rate 16% effective p.a % is guaranteed by PT Askrindo or Perum Jaminan Kredit Indonesia * up to Q3 2008, total loans guaranteed by loan insurance institution is Rp billion 36

39 Consumer Finance: Significant growth in spread and fee income Performance to Date, 9-Month 2008 Contribution Margin (after PPAP) Rp bn Q1 Q2 Q3 Q4 639 Rp bn % NII Fees Overhead Operating Profit Provisions Profit After PPAP

40 Consumer lending rose 6.9% Q-o-Q and 47.0% Y-o-Y on Mortgages and Payroll Loans Quarterly Consumer Loan Balances by Type Consumer Loan Growth by Type Rp18.74 tn 38 Growth (%) 20,000 Loan Type Other Q-o-Q Y-o-Y Credit Cards 18,000 Payroll Loans % 19.83% Other 2,113 2,008 Home Equity Loans 16,000 Mortgages 5.23% 25.94% Credit Cards 3,999 1,926 14,000 3, % 43.38% Payroll Loans 3,192 3,761 3,702 1,908 3,010 1,678 2,789 12,000 1,426 3,612 2,644 1,358 2,427 1,2932,285 1,2312,165 1,2411,996 1,2791,906 1,3671,930 10, % 10.96% Home Equity Loans 8, % 71.46% Mortgages 3,437 3,390 3,404 3,522 3,666 3,867 3,979 4,033 4,131 1,2701,921 6,000 7,717 7,199 4, % 46.57% Total Consumer 6,393 5,382 4,501 2, ,865 3,663 3,610 3,574 3,452 3,250 3,050 1,522 1,802 2, *Auto & Motorcycle Loans channeled or executed through finance companies = Rp5.0 tn in our Commercial Loan Portfolio Q3 '08 Q2 '08 Q1 '08 Q4 '07 Q3 '07 Q2 '07 Q1 '07 Q4 '06 Q3 '06 Q2 '06 Q1 '06 Q4 '05 Q4 '04 Q4 '03

41 1,273k Visa & Mastercards transacted Rp2.03 tn in Q3 Total Card Quarterly Sales by Type of Transaction (Rp Bn) Mandiri Visa & Mastercards and EOQ Receivables Transfer Balance , ,225.9 Receivables (Rp Bn) Cash Advance Retail Cards (000s) 1, , ,904 1,668 1,443 1,514 1,225 1, , , , , , , , , , , , , , Q3 '08 Q2 '08 Q1 '08 Q4 '07 Q3 '07 Q2 '07 Q1 '07 Q4 '06 Q3 '06 Q2 '06 Q1 '06 Q4 '05 Q3 '05 Q2 '05 Q1 '05 Q4 '04 Q3 '08 Q2 '08 Q1 '08 Q4 '07 Q3 '07 Q2 '07 Q1 '07 Q4 '06 Q3 '06 Q2 '06 Q1 '06 Q4 '05 Q4 '04 Q4 '03 Q4 '02 39

42 Financial targets for 2008 ~ 18% Metric Target Gross NPLs <5% Normalizing ROE Gross loan growth * >18% Corporate # >20% Commercial >20% Consumer >30% Micro & Retail >20% Growth in savings deposits >Rp90 tn Margin improvement ~5.2% Retain efficiency ratio <50% NPL Provision Coverage >120% * Prior to the write-off & repayment of NPLs # Includes Treasury & International 40

43 Supporting Materials 41

44 Key Quarterly Balance Sheet Items & Financial Ratios IDR billion / % Gross Loans Government Bonds Total Assets Customer Deposits Total Equity RoA - before tax (p.a.) RoE after tax (p.a.) 15.60% 17.89% Cost to Income (1) 42.98% 44.40% NIM (p.a.) LDR Gross NPL / Total Loans Provisions / NPLs 90.05% % Tier 1 CAR (2) 18.74% 14.48% Total CAR (2) Total CAR incl. Market Risk EPS (Rp) Book Value/Share (Rp) Q ,738 90, , ,097 28, % 5.40% 57.94% 12.40% 22.90% 22.29% ,354 H ,612 88, , ,213 27, % 5.25% 62.16% 4.74% 17.72% 17.58% ,318 Q ,785 88, , ,325 29, % 18.09% 43.03% 5.46% 65.03% 4.44% % 13.96% 17.08% 16.98% ,380 YoY Change (%) 33.7% (2.5%) 16.4% 16.8% 3.5% 23.6% 1.9% (1) (G&A and employee expenses) / (Net Interest Income + Other Operating Income), excluding bond gains (2) Bank only Not including Market Risk 42

45 Summary P&L Information 9-Mo. 07 vs. 9-Mo. 08 Interest Income Rp (Billions) 17,974 9-Mo. 07 % of Av.Assets* 11.6% Rp (Billions) 19,005 9-Mo. 08 % of Av.Assets 14.2% YoY Change (%) 5.7% Interest Expense (8,290) (5.3%) (7,996) (6.0%) (3.5%) Net Interest Income 9, % 11, % 13.7% Other Operating Income 2, % 3, % 29.0% Gain from Increase in Value & Sale of Bonds % - 0.0% (100.0%) Provisions, Net (1,975) (1.3%) (1,799) (1.3%) (8.9%) Personnel Expenses (2,773) (1.8%) (3,367) (2.5%) 21.4% G & A Expenses (2,416) (1.6%) (2,714) (2.0%) 12.3% Other Operating Expenses** (523) (0.3%) (620) (0.5%) 18.5% Profit from Operations 4, % 5, % 20.9% Non Operating Income % % 1,169.2% Net Income Before Tax 4, % 5, % 24.2% Net Income After Tax 3, % 3, % 24.4% * % of Average Assets on an annualized basis ** primarily premiums paid under the blanket guarantee scheme 43

46 Total Assets rose 4.6% to Rp318.7 tn in Q3 08 Int. from Bonds Int. from Loans % % % 58.8% 52.2% % 46.9% % 50.0% 50.1% % 40.9% 40.6% 41.0% 34.8% 32.3% 32.4% 31.0% Total Assets (Rp tn) 19.0% 19.0% Q3 '08 Q2 '08 Q1 '08 Q4 '07 Q3 '07 Q2 '07 Q1 '07 Q4 '06 Q3 '06 Q2 '06 Q1 '06 Q4 '05 Q4 '04 Q4 '03 Q4 '02 Q4 '01 Q4 '00 Q4 '99 Government Bonds Loans Other Assets Consolidated

47 17.1% Q3 '08 45 RWA up 33.6% Y-o-Y, with a CAR of 17.1% on Rp27.8 tn capital CAR BI Min Req 31.3% 27.1% 25.1% 22.9% 22.4% 21.1% 26.6% 25.3% 25.2% 23.4% 17.7% Q2 '08 Q1 '08 Q4 '07 Q3 '07 Q2 '07 Q1 '07 Q4 '06 Q3 '06 Q2 '06 Q1 '06 Q4 '05 Q3 '05 Q2 '05 Q1 '05 Q4 '04 Q4 '03 Q4 '02 Q4 '01 Q4 '00 RWA (Rp tn) Total Capital (Rp tn)

48 Additional Factors Written-off Loans Aggregate of Rp tn (US$ bn) in written-off loans as of end- September 2008, with significant recoveries on-going: 2001: Rp2.0 tn 2002: Rp1.1 tn 2003: Rp1.2 tn 2004: Rp1.08 tn 2005: Rp0.818 tn (US$ 83.2 mn) 2006: Rp3.408 tn (US$ mn)* 2007: Rp1.531 tn (US$ mn) Q1 08: Rp0.325 tn (US$ 35.3 mn) Q2 08: Rp0.572 tn (US$ 62.0 mn) Q3 08: Rp0.724 tn (US$ 76.8 mn) * including the write-back of RGM loans totaling Rp2.336 tn Loan Collateral Undervalued Collateral values included for provisioning purposes on only 24 accounts, carried at approximately 30.3% of appraised value. 46

49 Summary Quarterly Balance Sheet: Q Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Y-o-Y Rp (tn) Rp (tn) Rp (tn) Rp (tn) Rp (tn) US$ (bn)# % Change Total Assets % Cash % Current Accounts w/bi % Certificates of BI (96.4%) Other Placements w/bi Current Accounts & Placements w/other Banks (53.3%) Securities - Net % Government Bonds (2.5%) Trading (73.9%) AFS (4.8%) HTM % Loans % Performing Loans % Non-Performing Loans (38.0%) Allowances (13.39) (13.04) (9.18) (9.57) (11.04) (1.17) (17.6%) Loans Net % Total Deposits Non-Bank % Demand Deposits % Savings Deposits % Certificate & Time Deposits % Shareholders Equity % # USD1 = Rp9,430 47

50 Summary P&L Information Q Q Q Q Q-o-Q Change Rp (Billions) % of Av.Assets* Rp (Billions) % of Av.Assets* Rp (Billions) % of Av.Assets (%) Interest Income 5, % 6, % 6, % 13.2% Interest Expense (2,647) (3.9%) (2,414) (3.2%) (2,825) (3.6%) 17.0% Net Interest Income 2, % 3, % 4, % 10.7% Other Operating Income % 1, % 1, % 3.0% Gain from Increase in Value & Sale of Bonds (33) (0.05%) % (10) (0.01%) N/A Provisions, Net (119) (0.2%) (547) (0.7%) (944) (1.2%) 72.6% Personnel Expenses (1,049) (1.6%) (1,175) (1.6%) (1,172) (1.5%) (0.3%) G & A Expenses (958) (1.4%) (1,034) (1.4%) (916) (1.2%) (11.4%) Other Operating Expenses** (178) (0.3%) (150) (0.2%) (229) (0.3%) 52.7% Profit from Operations 1, % 1, % 1, % 8.8% Non Operating Income (2) 0.0% % % 106.7% Net Income Before Tax 1, % 1, % 1, % 11.3% Net Income After Tax 1, % 1, % 1, % 10.2% * % of Average Assets on an annualized basis ** primarily premiums paid under the blanket guarantee scheme 48

51 Reconciliation to IFRS FY 03 FY 04 FY 05 FY 06 FY 07 Rp (Billions) Rp (Billions) Rp (Billions) Rp (Billions) Rp (Billions) Net profit under Indonesian GAAP 4,586 5, ,421 4,346 IFRS Adjustments Allow. for possible losses on earning assets (662) (309) (2,681) 1,598 1,934 Allow. for possible losses on commitments & contingencies (223) 44 (2) Change in fair value of derivatives Employee benefits (21) Accretion on deferred inc. arising from loan purchase from IBRA (17) De-recognition of revaluation of premises & equipment Rights of Lands amortization (137) (7) De-recognition of allowances Deferred income taxes (503) (583) Net Adjustment (191) (90) (2,008) 1,037 1,351 Net profit in accordance with IFRS 4,395 5,166 (1,405) 3,458 5,697 IFRS = International Financial Reporting Standards 49

52 Ex-Recap Bond Portfolio, 30 Sep 08 Bank Only Series Interest Rate (%) Fixed Rate - FR Jun % FR Mar % - - 1,350, ,350,000 FR Nov % - 2, ,112 - FR Jun % - 231, ,459 - FR Dec % Sub Total ,266 1,350, ,879 1,350,000 Variable Rate VR Jun % - 298, ,607 - VR Dec % - 5,050,000 1,114, ,042,375 1,114,300 VR Apr % - 4,100, , ,069, ,029 VR Nov % - 2,400, ,396, VR Mar % - 692,844 6,796, ,130 6,796,813 VR Oct % - 659,738 4,086, ,583 4,086,068 VR Feb % - - 8,210, ,210,550 VR Sep % - - 5,210, ,210,550 VR Jan % - - 3,475, ,475,267 VR Jul % - - 3,475, ,475,267 VR Aug % - 1,696,428 3,475, ,693,222 3,475,267 VR Aug % - 5,344,421 3,475, ,331,648 3,475,267 VR Dec % - - 8,016, ,016,765 VR Jul % - 5,597,343 12,016, ,581,950 12,016,765 Sub Total Grand Total Maturity Date (Stated in Rp Millions) Nominal Mark To Trading AFS HTM Market Trading - 25,839,044 59,744,598-25,764,511 59,744, ,073,310 61,094, ,010,390 61,094, % 29.91% 70.09% 0.00% 29.86% 70.14% Total Nominal Value Fair Value AFS HTM 87,167,976 Total Fair Value 87,105,057 50

53 Bank Mandiri Credit Ratings S&P Moody s Fitch Pefindo Bank Mandiri Ratings Long Term Foreign Currency Outlook Stable Positive Stable Long Term Bank Deposits B2 Long Term Foreign Currency Debt BB- WR BB Short Term Outlook Stable Short Term Foreign Currency Debt B NP B Subordinated Debt Ba3 BB- Individual Rating C/D Support Rating 3 Bank Financial Strength D- Long Term Local Currency Outlook Stable Long Term Local Currency Debt BB- BB idaa Short Term Local Currency Debt B National Rating B idnaa+ 51

54 Corporate Actions Net Profit for the financial year of 2007 of Rp4,346,223,721, was distributed as follows: 50%, or Rp2,173,111,860,604.00, for the annual dividend 40%, or Rp1,738,489,488,483.20, for a one-time special dividend Total Dividend Payment of Rp per share Schedule : a. Cum Date : June 19, 2008 Dividend Payment b. Ex Date : June 20, 2008 c. Payment Date : July 3, 2008 Net Profit for the financial year of 2006 of Rp2,421,405,120, was distributed as follows: 50%, or Rp1,210,702,560,376.86, for the annual dividend 10%, or Rp242,140,512,075.37, for a one-time special dividend Total Dividend Payment of Rp70.28 per share 52

55 Q Movement in Category 1 and 2 Loans Category 1 Loan Movements (Rp bn) Bank Only Category 2 Loan Movements (Rp bn) Bank Only 125,759 11, ,940 1,840 1, ,452 1,840 1, , Beg. Bal. D/G to 2 U/G from 2 D/G to NPL U/G from NPL Net Disburs. FX Impact End Bal. Beg. Bal. Cat. 1 D/G U/G to 1 D/G to NPL NPL U/G Net Collect. FX Impact End Bal. 53

56 Q Loan Detail: Collectibility by Segment Loan Profile: Q3 Collectibility (%) by Segment Bank Only 3.8% 2.5% 1.9% 0.5% 0.3% 2.3% 0.4% 1.7% 0.7% 2.4% 6.0% 7.5% 8.9% 11.7% 11.5% Loan Profile: Q3 Collectibility (Rp bn) by Segment Bank Only 65,000 60,000 55,000 50,000 45, % 90.4% 89.6% 85.0% 88.6% ,000 35,000 30,000 25, ,000 15,000 10,000 5,000 0 Corp Comm Small Micro Cons Corp Comm Small Micro Cons 54

57 NPL Loan Detail*: Quarterly by Days Past Due Quarterly D/G to NPL & Interest DPD - Bank Only Rp tn 70% Current (%) 60% <30 Days OD (%) 50% 40% 30% 20% 10% Quarterly NPL Stock & Interest DPD - Bank Only 70% Current (%) 60% <30 Days OD (%) 50% 40% 30% 20% 10% 0% 0% 12,000 30,000 Rp Value 10,000 Rp Value 25,000 8,000 20,000 6,000 4,000 2, ,161 Q1 '05 6,901 Q2 '05 1,177 Q3 '05 4,106 Q4 '05 1,558 Q1 '06 1,304 Q2 '06 1,031 Q3 '06 1,644 Q4 ' Q1 ' Q2 ' Q3 ' Q4 ' Q1 ' Q2 ' Q3 '08 15,000 10,000 5, ,456 Q1 '05 24,962 Q2 '05 24,193 Q3 '05 26,248 Q4 '05 26,424 Q1 '06 25,665 Q2 '06 25,414 Q3 '06 17,960 Q4 '06 17,180 Q1 '07 16,500 Q2 '07 13,603 Q3 '07 10,654 Q4 '07 6,558 Q1 '08 6,510 Q2 '08 6,586 Q3 '08 * Excluding Micro & Consumer Loans Only 55

58 Rp1,591 bn in loans were restructured or repaid in the first nine months of 08 Restructured Loan Movement Mo. 08 Loans by Restructuring Type in Q IDR bn Others# Write-Offs Repayments Restructuring Balance Maturity extension 49% 16,242 9-M '08 Deduct Add 20, Deduct Add 20, Deduct Add 19, Deduct Add 21, Deduct Add 23, Deduct Add 29, Deduct Add 25, LT loans w/convert. option 9% Maturity extension w/other restr'g* 14% Maturity extension w/reduced rates 27% (Rp billions) Loans Restructured , ,445 H Q *Other Restructuring includes reduction of interest rates, rescheduling of unpaid interest & extension of repayment period for unpaid interest NPL Collections 813 1,118 2,398 2, #Others includes partial payments, FX impacts, and fluctuation in Working Capital facilities 56

59 Loan Portfolio Sector Analysis, Q Mfg-Oth Mfg-F&B Agri Mfg-F&B 12.2% Agri 10.4% Trans Constr Mfg-Oth 12.9% Trans 8.5% Mfg-Chem Mining Constr 8.1% Bus Serv Trading-Oth Oth<4% 9.2% Mfg-Chem 7.7% Trading-Ret Trading-Distr Mfg-P&P Oth<4% Mfg-P&P 3.9% Trading-Distr 4.3% Trading-Ret 4.5% Trading-Oth 4.9% Bus Serv 6.2% Mining 7.2% (1) Non-consolidated numbers * Each sector < 4% * Excluding Micro & Consumer Loans Only 57

60 Q Loan Detail*: Downgrades to NPL Loan Profile: Q3 Downgrades to NPL (Rp325 bn) - Bank Only 100% 5 Oth<5% Other Mfg-Oth Invest 90% Small Agri Trading-Exp Synd 80% Trading-Distr USD Export Mfg-Wood 4 70% Trading-Ret 90+ Days LC 60% Corporate, Commercial & Small Business loans downgraded to NPL in Q3 totaled Rp325 billion (0.22% of total loans). Of these loans: 26.4% were still current on interest payments 23.8% were Corporate borrowers and 53.0% came from our Commercial portfolio 27.4% were loans previously restructured 50% Comm Constr Largest downgrades by sector: Textile Manufacturing 40% Construction 30% 20% 10% 3 Mfg-Text IDR WC Days < 30 Days Current Retail 59.3% were IDR loans 53.8% were Working Capital loans 70.4% were more than 90 days overdue in interest payments 0% Segment Collectibility Sector Currency Purpose Int. Aging * Excluding Micro & Consumer Loans Only 58

61 Q Loan Detail*: Non-Performing Loans Loan Profile: Q3 NPLs (Rp6,586 bn) Bank Only 100% Small Oth<5% 90% Mining Comm 80% Trading-Dom Trading-Oth USD 70% 5 Program Export LC Synd 90+ Days Corporate, Commercial & Small Business NPLs totaled Rp6,586 billion in Q3, or 4.5% of total loans. Of these NPLs in Q3: 37.9% remain current on interest payments and 2.8% are less than 90 days overdue 71.1% are to Corporate customers 60% Mfg-Oth 41.7% are Working Capital loans and 22.2% are Investment loans 50% 40% 30% Corp 4 Mfg-Text Mfg-NonM IDR Invest WC < 30 Days Primary sectors are: Manufacturing Chemicals Textiles Non-Metals Trading 53.3% are Rupiah loans 20% 10% 0% 3 Mfg-Chem Current 50.8% were previously restructured 29.0% are Cat. 3 & 11.0% are Cat. 4 71% saw no change in collectibility, while 15.9% were upgraded in Q3 Segment Collectibility Sector Currency Purpose Int. Aging * Excluding Micro & Consumer Loans Only 59

62 Q Loan Detail*: Downgrades to Cat % 90% 80% 70% 60% Loan Profile: Q3 Downgrades to Cat. 2 loans (Rp1,024 bn) - Bank Only Small < 30 1 Day Oth<5% Trading-Distr Mfg-F&B Mfg-Oth Bus Serv USD Other Consumer Synd Invest >2004 Rp1,024 billion (0.7% of total loans) in Corporate, Commercial & Small Business loans were downgraded to Category 2 in Q3. Of the Special Mention Loans downgraded in Q3: 44.3% are for Commercial & 49.2% are to Small Business customers 55.8% are current & 4.9% are 1 day overdue 50% Primary sectors downgraded are: 40% Trading-Ret IDR Construction Chemical Manufacturing 30% 20% Comm Current Mfg-Chem WC Retail Trading Business Services 83.6% are Rupiah loans 67.6% are Working Capital loans 10% Constr 0.2% are Restructured loans 0% Corp <2000 Segment Int. Aging Sector Currency Purpose Origin Year * Excluding Micro & Consumer Loans Only 60

63 Q Loan Detail*: Category 2 Loans 100% 90% 80% 70% Loan Profile: Q3 Category 2 Loans (Rp11,371 bn) Bank Only Small Comm < 30 1 Day Oth<5% Agri Mfg-Chem Trading IDR Other Export Synd >2004 Rp11,371 billion (7.8% of total loans) in Corporate, Commercial & Small Business loans were in Category 2 in Q3. Of these Special Mention loans in Q3: 69.3% are to Corporate customers 81.8% are current or 1 day overdue 60% Mfg-Oth Primary sectors in Category 2 are: Pulp & Paper 50% Constr WC Textile Manufacturing Construction 40% 30% Corp Current Mfg-Text USD Trading Chemical Manufacturing 57.0% are US Dollar loans 32.8% are Investment loans 20% 10% Mfg-P&P Invest 68.2% are Restructured loans 0.5% were purchased from IBRA 0% < % were Category 2 in Q2 08 Segment Days Aging Sector Currency Purpose Origin Year * Excluding Micro & Consumer Loans Only 61

64 Q Loan Detail*: Upgrades to PL Loan Profile: Q3 Upgrades to PL (Rp68 bn) - Bank Only 100% Oth<5% Program 90% Small >2004 Trading-Ret Invest 80% Mfg-Oth 70% 2 Corporate, Commercial & Small Business loans upgraded to PL in Q3 totaled Rp68 billion (0.05% of total loans). Of these loans: 54.8% were to Commercial borrowers 76.5% originated between 2000 and % were previously restructured loans 60% Bus Serv Largest upgrades by sector: Food & Beverage Manufacturing 50% Comm IDR Distribution 40% 30% Trading-Distr WC 1 Business Services 100% were Rupiah loans 78.6% were Working Capital loans 52.8% of upgrades to PL were NPLs moving to Category 1 20% Mfg-F&B 10% Corp 0% Segment Origin Year Sector Currency Purpose Collect. * Excluding Micro & Consumer Loans Only 62

65 Q Loan Detail*: Performing Loans 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Loan Profile: Q3 Performing Loans (Rp117,096 bn) Bank Only Small Comm >2004 Corp Oth<5% Other 2 Export Bus Serv Mfg-Chem USD Synd Mining Constr Invest Trans Agri 1 Mfg-F&B IDR Trading WC Mfg-Oth Rp117,096 billion (80.0% of total loans) in Corporate, Commercial & Small Business loans were performing in Q3. Of these performing loans in Q3: 54.7% are to Corporate customers & 33.9% are to Commercial customers 73.5% originated since % have no restructuring history 11.0% are Restructured loans 0.3% were purchased from IBRA Primary sectors are: Trading Food & Beverage Manufacturing Agriculture Transportation 70.3% are Rupiah loans 44.8% are Working Capital loans 85.2% saw no change in collectibility 0.1% were upgraded from NPL 0% <2000 Segment Origin Year Sector Currency Purpose Collect. * Excluding Micro & Consumer Loans Only 63

66 Q Loan Detail*: Restructured Loans 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Loan Profile: Q3 Restructured Loans (Rp16,242 bn) Bank Only Days <30 Days Current Oth<5% Agri Constr Trading Mfg-NonM Mfg-Chem Mfg-Oth Mfg-Text Mfg-P&P USD IDR Program Export Synd WC Invest Small Comm Corp Of the remaining Rp16,242 billion in restructured Corporate, Commercial & Small Business loans in Q3, or 11.1% of total loans: 79.4% are performing 87.3% of loans in Category 2 are current in interest payments Of the 20.6% which are in NPL, 46.6% are current in interest payments Primary sectors are: Manufacturing Chemicals Textiles Pulp & Paper Construction Trading 55.6% are Rupiah loans 33.2% are Investment loans 71.4% are to Corporate customers 2.1% deteriorated in collectibility 8.5% showed improved collectibility 0% Collect. NPL Aging Sector Currency Purpose Segment * Excluding Micro & Consumer Loans Only 64

67 Q Loan Detail: Corporate Loans 100% 90% 80% 70% 60% Loan Profile: Q3 Corporate Loans Only (Rp68,733 bn) Bank Only Day Oth<5% Mfg-P&P Trading Bus Serv Mfg-Chem Agri USD Other Export LC Synd >2004 Rp68,733 billion in loans were in the Corporate portfolio in Q3, or 46.9% of total loans. Of the Corporate Loans in Q3: 93.2% are performing loans, with 11.5% in Category % of Category 2 loans are current in interest payments 50.3% of NPLs are current in interest payments 50% 40% 1 Current Mining Trans WC Primary sectors in Corporate are: Food & Beverage Mfg Mining Agriculture Transportation 30% 20% 10% Mfg-Oth Mfg-F&B IDR Invest % are Rupiah loans 34.2% are Investment loans 16.9% are Restructured loans 0.1% were purchased from IBRA 0% <2000 Collect. Cat. 2 Aging Sector Currency Purpose Origin Year 65

68 Q Loan Detail: Commercial Loans 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Loan Profile: Q3 Commercial Loans Only (Rp41,183 bn) Bank Only < 30 1 Day Current Oth<5% Mfg-F&B Trans Bus Serv Trading-Distr Mfg-Chem Agri Trading-Oth Constr Mfg-Oth USD IDR Export Synd Invest WC > Rp41,183 billion in loans were in the Commercial portfolio in Q3, or 28.1% of total loans. Of the Commercial Loans in Q3: 96.4% are performing, with 6.0% in Category % in Category 2 are current or 1 day overdue in interest payments 8.4% of NPLs are current in interest payments Primary sectors in Commercial are: Trading Agriculture Construction Chemical Manufacturing 81.4% are Rupiah loans 54.2% are Working Capital loans 10.5% are Restructured loans 0.6% were purchased from IBRA 0% Collect. Cat. 2 Aging <2000 Sector Currency Purpose Origin Year 66

69 Q Loan Detail: Small Business Loans Loan Profile: Q3 Small Business Loans* Only (Rp13,766 bn) Bank Only 100% 5 USD Program Oth<5% Consumer 90% 80% Constr Invest Trad-Oth 70% Trad-Distr > % < 30 Mfg Rp13,766 billion in loans were in the Small Business portfolio in Q3, or 9.4% of total loans. Of the Small Business Loans* in Q3: 97.1% are performing, with 7.5% in Category % in Category 2 are current or 1 day overdue in interest payments 4.2% of NPLs are current in interest payments 50% 40% 1 1 Day Bus Serv Agri IDR WC Primary sectors in Commercial are: Retail Trading Plantations Business Services Manufacturing 30% 99.7% are Rupiah loans 20% 10% Current Trad-Ret % are Working Capital loans 2.4% are Restructured loans 0% <2000 Collect. Cat. 2 Aging Sector Currency Purpose Origin Year * Excluding Micro Loans 67

70 Q Loan Detail*: Rupiah Loans 100% 90% 80% 70% 60% 50% 40% 30% Loan Profile: Q3 Loans (Rp85,854 bn) Bank Only < 30 1 Day Current Oth<5% Mfg-Chem Trad-Ret Bus Serv Trad-Oth Constr Trans Agri Small Comm Other Export Invest WC >2004 Rp85,854 billion in loans were Rupiah denominated in Q3, or 58.6% of total loans. Of the Rupiah Loans in Q3: 95.9% are performing loans with 5.7% in Category % of Category 2 loans are current in interest payments 42.4% of NPLs are current in interest payments Primary sectors in Rupiah loans are: Plantations Transportation Food & Beverage Mfg Construction 45.0% are Corporate loans 20% 10% Mfg-F&B Mfg-Oth Corp % are Working Capital loans 10.5% are Restructured loans 0.1% were purchased from IBRA 0% <2000 Collect Cat 2 Aging Sector Segment Purpose Origin Year * Excluding Micro & Consumer Loans Only 68

71 Q Loan Detail*: Foreign Currency Loans 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Loan Profile: Q3 FX Loans (Rp37,828 bn) Bank Only < 30 Current Oth<5% Agri Mfg-Text Trading Mfg-Oth Mfg-P&P Mfg-F&B Mfg-Chem Mining Comm Corp Other WC LC Synd Invest > <2000 Collect Cat 2 Aging Sector Segment Purpose Origin Year Rp37,828 billion in loans were foreign currency denominated in Q3, or 25.8% of total loans. Of the FX Loans in Q3: 91.9% are performing loans with 17.1% in Category % of Category 2 loans are current in interest payments 32.8% of NPLs are current in interest payments Primary sectors in Corporate are: Mining Oil & Gas Manufacturing of Chemicals F&B Pulp & Paper Textiles 79.7% are Corporate loans 35.7% are Investment loans 19.1% are Restructured loans 0.7% were purchased from IBRA * Excluding Micro & Consumer Loans Only 69

72 Credit Card portfolio improved in Q3 08 Mandiri Credit Card Delinquency Rates (%) Monthly Charge-offs, NPLs & Recoveries (Rp Bn) 16.8% 16.1% 30 DPD - Rp 90 DPD - Rp 30 DPD - Cards 90 DPD - Cards NPLs (90+DPD) Write-Offs Recoveries 10.7% 10.2% 10.8% 11.7% 10.4% 8.8% % 5.8% 7.1% 5.3% 4.5% 3.4% 5.0% 2.1% 2.4% 6.9% 4.3% 6.8% 4.4% 2.4% 6.1% 3.7% 2.0% 5.4% 3.1% 1.7% 7.2% 6.4% 4.3% 3.8% 2.2% 1.9% 1.2%1.1% Q3 '08 Q2 '08 Q1 '08 Q4 '07 Q3 '07 Q2 '07 Q1 '07 Q4 '06 Q3 '06 Q2 '06 Q1 '06 Q4 '05 Q4 '04 Q3 '04 Q2 '04 Q1 '04 Q3 '08 Q2 '08 Q1 '08 Q4 '07 Q3 '07 Q2 '07 Q1 '07 Q4 '06 Q3 '06 Q2 '06 Q1 '06 Q4 '05 Q4 '04 Q3 '04 Q2 '04 Q1 '04 70

73 Regs. on Asset Classification: PBI No 7/2/PBI/2005 Classification by Aging of Interest Payments# Classification by Payment History Category 1 - Current Category 2 Special Mention Category 3 Sub-Standard Category 4 - Doubtful Category 5 - Loss Previously Current 1 90 days days days 271+ days Current Current 1 90 days days days 181+ days No change to BI Prov. Req. 1% 5% 15% 50% 100% Detailed Classification Guidance# Business Outlook Business growth potential Market condition & debtor position in the market Management quality Group support Environmental factors Financial Condition Profitability Capital structure Cash flow Sensitivity to market risk Payment Ability On time payment Availability of debtor s financial information Completeness of credit documentation Compliance toward credit agreement Nature of payment source Appropriateness of funds usage BI Collectibility takes precedence# One Debtor, One Project Concept* In instances where there is disagreement in the determination of earning asset collectibility between the bank, its external auditors and BI, the bank must adopt BI s determination The Bank must classify all of its earning assets to a single debtor at the level of the lowest quality asset For debtors with exposures to more than one bank, all banks must adopt the lowest classification applied by any one bank to the debtor. All earning assets related to a particular project must be classified at the same level Completeness of Financial Report* Banks must require debtors to submit current financial statements Failure to submit financial statements must result in an automatic downgrade of collectibility by one level, or to a maximum classification of sub-standard # Implemented in Q * Implemented in Q

74 Accounting for Interest, Provisions & Collateral Classification Regular Loans Restructured Loans IBRA Loans Recognition of Interest Income Cat. 1 - Current Cat. 2 Special Mention Cat. 3 Sub-Standard Cat. 4 - Doubtful Accrual Basis Accrual Basis Cash Basis Cash Basis Accrual Basis Cash Basis Cash Basis Cash Basis Cash Basis Cash Basis Cash Basis Cash Basis Cat. 5 - Loss Cash Basis Cash Basis Cash Basis Booking of Payments from Borrowers Classification Cat. 1 - Current Cat. 2 Special Mention Cat. 3 Sub-Standard Cat. 4 - Doubtful Regular Loans Interest Interest Interest Principal Restructured Loans Interest Interest Interest Principal IBRA Loans (w/o new agreement) Principal Principal Principal Principal Cat. 5 - Loss Principal Principal Principal Classification Regular Loans Restructured Loans IBRA Loans Provisioning Cat. 1 - Current Cat. 2 Special Mention Cat. 3 Sub-Standard Cat. 4 - Doubtful 1% 5% 15% 50% As per BI regulations, except: Not reversed by upgrading Reversed by principal repayment Beginning provisions determined at 31 Dec Based on net book value after restructuring loss As per BI regulations, except: Difference between principal and purchased value book as Provisions, or Deferred income if a new agreement has been made Cat. 5 - Loss 100% Classification Collateral All Loans Valuation of Collateral & Provisioning Cat. 1 - Current Cat. 2 Special Mention Cat. 3 Sub-Standard Cat. 4 - Doubtful Cat. 5 - Loss Not valued Can be credited against cash provisions for Cat. 2-5 Collateral valuation for provisioning is determined by the aging of the most recent independent appraisal (for assets over Rp 5bn): 70% of appraised value within the initial 12 months 50% of appraised value within 12 to 18 months 30% of appraised value within 18 to 24 months No value after 24 months from appraisal 72

75 Summary of Principal Subsidiaries Bank Syariah Mandiri Mandiri Sekuritas AXA Mandiri Equity Investment of Rp1, billion Total Assets of Rp16,539 billion, with total financing extended amount to Rp13,766 billion and total funds of Rp13,890 billion Operating Income amounting to Rp1,245.2 billion and Profit After Tax of Rp147.4 billion Market share against of Syariah Banking: 36.56% in assets, 36.89% in financing extended and 42.16% in deposits CAR=11.54% ROA=1.91% ROE=22.18% 294 outlets, consisting of 246 branches & cash offices, 48 KLS, 117 cash outlets & payment points; along with 84 branded ATMs Equity Investment of Rp billion Total Assets Rp2,991 billion, total liabilities Rp2.291 billion and Equity Rp700 billion Operating Income amount to Rp billion, and PAT Rp45.97 billion Bond underwriting amounting to Rp2.63 trillion. IPO underwriting amounting to Rp814 billion Equity transactions in BEI of Rp37.11 trillion Bond transactions (SUN) through BEI of Rp23.3 trillion (rank#1) Total Asset Under Management amounting to Rp6.7 trillion as of August 2008 Equity Investment of Rp billion Total Assets Rp4, billion, Annual First Year Premium (AFYP) of Rp billion and total profit Rp billion Total Gross Written Premium (GWP) Rp1, billion, consists of unit-linked premium of Rp1, billion (98.29%) and traditional product premium of Rp27.97 billion (1.71%). Group business accounted for Rp27.23 billion (1.66%) while Rp1, billion (98.34%) came from individual premiums. Embedded value of Rp billion (before expense overrun) and appraisal value of Rp3, billion Operating since December 2003, had a presence in 983 Bank Mandiri branches with a team consisting of 1,100 Financial Advisors (FAs) In Q2 2008, AXA Mandiri s market share in acquiring new business out of all life insurance companies in Indonesia was 5.9% 73

76 Bank Syariah Mandiri Branch Network & Customer Growth Summary Balance Sheet (Rp Billions) Branches Customers (000s) 759 1,233 1,018 Rp Bn Total Assets Cash & placement w/ BI Current Accounts & Placements w/other Banks Securities - Net , ,273 1, ,612 1, ,888 1, Q ,539 1, ,092 Total Financing 5,267 5,791 7,401 10,305 13, Allowances Total Financing - Net (86) 5,181 (127) (262) (331) (526) 5,664 7,138 9,974 13, Third Party Funds Demand Deposits Savings Deposits Time Deposits 5, ,567 3,334 7,037 1,261 1,958 3,818 8,219 2,059 2,662 3,498 11,106 1,858 3,860 5,388 13,890 1,932 4,860 7,098 Shareholders Equity , Q3 '08 74

77 Bank Syariah Mandiri Summary P&L (Rp billions) Mo. 08 Total Operating Income , , rd Party Share on Returns Bank's Share in Operating Income Other Operating income Operating Expenses Income from Operations Net Income before tax Net Income after tax Selected Financial Ratios LDR 66.1% 83.3% 75.6% 90.21% 92.79% 99.11% CAR 20.9% 10.6% 11.9% 12.56% 12.44% 11.54% ROA 1.0% 2.9% 1.8% 1.10% 1.54% 1.91% ROE 3.6% 22.3% 14.6% 10.23% 15.94% 22.18% 75

78 Mandiri Sekuritas Summary Balance Sheet Summary P&L Rp Bn Total Assets Cash & Equivalent , , , , Q3 08 2, Rp Bn Operating Revenue Brokerage Commissions Mo Time deposit Investment Mgmt Fees Marketable Securities Receivables Property & Equipment-net Total Liabilities Payable to Clearing & Guarantee body Payable to customers Repo Bank Loans Shareholders Equity , , , , , , , Advisory fees Underwriting & Selling Fees Gain on Trading of Marketable Securities Interest & Dividends Operating Expenses G & A expenses Salaries and allowances Commissions Profit from operations Other income (charges) - net Income before tax (8.1) (13.1) (12.3) (29.4) (63.8) Net Income after tax (34.8) (57.9)

79 Bank Sinar Harapan Bali % 1.5% 1.0% 0.5% 0.0% 17.5% 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0% Total Lending (Rp bn) Q1 '08 Q2 '08 Q3 '08 Total NPL (%) 1.25% 0.82% 1.25% 0.63% 0.52% 0.65% 1.86% Q1 '08 Q2 '08 Q3 '08 Net Interest Margins 16.0% 14.1% 13.5% 13.0% 13.2% 9.7% 11.0% Implementing the vision of becoming dominant player in the micro segment BSHB is an integral part of Bank Mandiri s plan to develop the micro segment aggressively, which we intend to achieve through implementing three phases strategy: 1. Improving Efficiency and Operational Enhancement Phase (12-24 mths) During this initial stage, we seek to improve BSHB s IT, Risk Management, HR and Governance infrastructure, as well as developing new product and expanding its footprint across Bali 2. Dominating local market phase (24-48mths) The focus of this stage is to aggressively grow BSHB s market share of micro segment in Bali, while preparing the launch pad for national expansion 3. Launching national expansion strategy phase (48+ mths) Implementing nationwide footprint expansion Q1 '08 Q2 '08 Q3 '08 *) As of June 08 based on non-audited quarter financial report **) NIM as of June % (exclude placement of Bank Mandiri, Rp 80 billion, for the month ended March 2008) Business Plan, BSHB has been showing positive momentum despite recent macroeconomic trends. By the end of Q2 2008, BSHB grew total loans to Rp236 bn, with plans to achieve Rp240 bn (36.4% increase yearon-year) by the end of By 2010, BSHB is aiming to achieve total loans of Rp449 bn. From the risk perspective, BSHB has been able to preserve its low level of NPLs at 0.65% in Q Going forward, BSHB is confident to be able to maintain gross NPLs below 1.5% through At the end of Q2 2008, BSHB profit before tax reached Rp2.2 bn. For the year 2008, BSHB is targeting Rp12,739 in profit before tax, in line with projected asset growth. As a result of these positive trends, by 2010, BSHB should achieve Rp38,376 mn in profit. 77

80 Staffing and Distribution Network Growth ATM Network Employees 78 3,346 3,186 2,800 2,560 2,470 2,022 1,559 1, ,079 21,631 21,062 21,192 19,693 18,397 17,735 17,204 18,016 19,606 Q3 ' Q3 ' ATM-Link Network Domestic Branch Network 7,386 7,041 6,265 6,025 5,537 4,716 4,000 3, Q3 ' Q3 '

81 Nationwide Reach in Distribution Network 79

82 Loan growth, quality & provisioning relative to peers Bank Only, As of June 2008 Loan to Deposit Ratio (%) Loan Growth (YTD) (%) Total Loans (Rp bn) 50.2% 59.5% 69.6% 71.6% 76.1% 77.0% 91.7% 93.7% 93.7% 94.3% 6.1% 11.2% 11.7% 12.8% 15.8% 16.1% 16.2% 18.0% 19.4% 32.1% 23,960 31,216 32,255 34,349 46,475 59,606 95,632 99, , ,955 BCA Mandiri BNI Lippo BII BRI Danamon Permata Niaga Panin Mandiri Niaga BNI BII BCA Danamon Panin Permata BRI Lippo Lippo Permata BII Panin Niaga Danamon BCA BNI Mandiri BRI Ratio of Provisions to NPL (%) NPL Ratio (Net) (%) NPL Ratio (Gross) (%) 67% 69% 77% 99% 105% 124% 127% 163% 178% 281% 2.3% 2.1% 2.0% 1.7% 1.2% 0.9% 0.8% 0.7% 0.4% 0.1% 7.5% 4.7% 3.8% 3.7% 3.4% 3.0% 2.8% 2.3% 0.9% 0.7% Niaga Panin BII BNI Permata Danamon Mandiri Lippo BRI BCA Panin Niaga BII BNI Permata BRI Mandiri Danamon Lippo BCA BNI Mandiri Permata Panin BRI Niaga BII Danamon Lippo BCA Average 80

83 Yield on Assets (p.a.) (%) 8.9% 9.5% 9.6% 10.0% 10.3% 10.5% 12.1% 13.2% 14.8% Mandiri BCA BNI Panin BII Lippo Permata Niaga BRI Cost of Funds (p.a.) (%) 6.5% 6.1% 5.5% 5.1% 5.0% 4.4% 4.1% 3.7% 3.7% Niaga Danamon Panin Permata BII Lippo BRI BNI Mandiri 81 Asset and liability mix relative to peers Bank Only, As of June 2008 Loans to Total Earning Assets (%) Total Assets (Rp bn) 14.9% 51.4% 55.5% 63.9% 69.7% 70.7% 71.1% 74.8% 75.3% 86.9% 87.2% 40,836 42,911 53,203 56,649 59,010 94, , , , ,770 Danamon BCA Mandiri BNI Lippo BII BRI Danamon Panin Permata Niaga Lippo Permata BII Panin Niaga Danamon BNI BRI BCA Mandiri Low Cost Deposit Ratio (%) Total Deposits (Rp tn) 3.4% 30.6% 33.7% 44.1% 44.3% 45.2% 60.3% 62.9% 64.8% 66.3% 75.9% 33,343 33,454 35,757 41,676 49,097 64, , , , ,378 BCA Danamon Niaga Panin BII Permata BNI BRI Mandiri Lippo BCA Permata Lippo Panin BII Niaga Danamon BNI BRI BCA Mandiri Average

84 Cost/Assets (%)* 5.0% 4.6% 4.6% 4.6% 4.3% 3.5% 3.5% 3.0% 2.8% Permata Lippo BRI Danamon BII BNI Niaga BCA Mandiri Cost/ Income (%) 73.2% 72.6% 71.1% 61.4% 55.1% 54.4% 52.5% 47.6% 47.3% Lippo Permata BII Niaga Panin Danamon BNI BCA Mandiri 82 *Annualized 2.6% Panin 47.3% BRI Efficiency measures relative to peers Bank Only, As of June 2008 Revenue/ Employee (Rp Mn) Loans/ Employee (Rp Mn) ,691 3,567 4,555 4,660 4,787 5,219 5,241 6,224 7,548 9,497 Danamon BII Permata Niaga BRI Lippo BNI BCA Panin Mandiri Danamon BRI BII BCA Permata Lippo BNI Mandiri Niaga Panin Pre Tax Income/Employee (Rp Mn) Deposits/ Employee (Rp Mn) ,829 4,631 5,113 5,885 7,287 7,426 7,974 9,283 9,886 10,244 BNI Danamon Lippo BII Permata Niaga BRI BCA Mandiri Panin Danamon BRI Permata BII Lippo BNI Niaga BCA Panin Mandiri Industry Average

85 345 Panin 6.3% BNI 83 Measures of scale and returns relative to peers Bank Only, As of June 2008 ATMs Branches Employees ,325 3,186 5, ,617 4,591 6,157 6,521 7,082 18,907 20,520 21,611 35,242 38,120 Niaga Permata Lippo BII Danamon BRI BNI Mandiri BCA Panin Niaga Permata BII Lippo Danamon BRI BCA Mandiri BNI Panin Lippo Niaga Permata BII BNI BCA Mandiri Danamon BRI Return on Equity (After Tax) (%) Return on Assets (Before Tax) (%) Net Interest Margins (%) 9.4% 14.1% 15.6% 15.9% 17.4% 21.7% 21.8% 25.7% 32.5% 0.8% 1.1% 1.8% 1.9% 2.1% 2.5% 2.6% 3.2% 3.3% 4.1% 5.1% 5.2% 5.2% 5.3% 5.7% 6.1% 6.2% 6.4% 8.7% 10.2% Lippo Panin Permata BII Niaga Mandiri Danamon BCA BRI BNI Lippo BII Permata Niaga Panin Mandiri BCA Danamon BRI Panin Niaga BII Mandiri Lippo BNI BCA Permata Danamon BRI Industry Average

86 Notes 84

87 Equity Research Contact Details BROKERAGE ANALYST TELEPHONE ABN AMRO Asia Securities Indonesia Trevor Kalcic BAHANA SECURITIES Teguh Hartanto BNP PARIBAS PEREGRINE Tjandra Lienandjaja CAZENOVE Tan See Ping CIMB-GK SECURITIES Indonesia Mulya Chandra CITIGROUP SECURITIES Stephan Hasjim CLSA LIMITED Nicolaos Oentung CREDIT SUISSE Teddy Oetomo DANAREKSA SEKURITAS Elvira Tjandrawinata DBS VICKERS SECURITIES Agus Pramono DEUTSCHE VERDHANA SECURITIES Raymond Kosasih FOX-PITT, KELTON Jim Antos J.P. MORGAN ASIA Admond Amit KIM ENG SECURITIES Yusuf Ade Winoto MACQUARIE CAPITAL SECURITIES Indonesia Ferry Wong MANDIRI SEKURITAS Made Suardhini MERRILL LYNCH Arief Koeswanto MORGAN STANLEY Roger Lum UBS Joshua Tanja The analysts listed above actively follow Bank Mandiri, but not all have issued research reports or formally initiated coverage. 86

88 87 For Additional Information: Please refer to our website at Or Contact: Sukoriyanto S. Corporate Secretary Tel: (6221) Fax: (6221) Jonathan Zax Head of Investor Relations Tel: (6221) Fax: (6221) PT Bank Mandiri (Persero) Tbk Plaza Mandiri Jl. Jend. Gatot Subroto Kav Jakarta Main Tel: