Third-Quarter 2003 Result

Transcription

1 Investor s Newsletter True Local Bank. World Class Standard 2 nd Edition October December 23 Financial Highlights Third-Quarter 23 Result PT Bank Internasional Indonesia Tbk ( Bank ) posted net income of Rp billion for the first nine-month period of 23, an increase of Rp billion, or 62%, compared to the corresponding period in 22. The largest contributor to this increase was net interest income, which grew by Rp billion (y-o-y). Quarterly net income growth registered a strong growth from Rp billion in Q1 23 to Rp. 7.3 billion and Rp billion in Q2 and Q3 of 23, respectively. Net interest income increased from minus Rp billion to Rp billion, due to by two main factors. Firstly, the successful effort by the Bank in lowering its interest expenses from Rp. 2,36.7 billion to Rp. 1,99. billion (y-o-y), in line with the decrease in SBI interest rates and improved composition of the Bank s third-party deposits. Secondly, the improvement in earning assets quality and growth in new loan disbursement, which resulted in a 17.1% increase (y-o-y) in interest income from Rp. 2,171.4 billion to Rp. 2,42.3 billion. These positive developments reflected on the Bank s Net Interest Margin, which improved from minus.86% to 2.3% (y-o-y). In line with the growth in loans, the Bank had further reduced its dependence on government bonds as a source of interest revenue, as shown by the decline in the proportion of interest revenue from bonds to total interest revenues from 69.7% in Q1 23 to 62.6% in Q3 23. In the same period, the contribution of interest revenue from loans increased from 23.8% to 31.4%. Net Income (Rp. billion) Net Interest Income (Rp. billion) NIM (%) Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 Sep Dec Mar-3 Jun-3 Sep-3 Earning Assets Interest Income Derived (%) *) Mar-3 Jun-3 Sep-3 Government Bonds Loans Placement in Other Banks Securities Sep-2 Dec Mar-3 Jun-3 Sep-3 *) To total interest income Net income until third-quarter 23 of Rp. 222 billion Net interest income of Rp. 633 billion ROA and ROE of.76% and 17.2%, respectively Net Interest Margin of 2.3% Net loan outstanding up by Rp. 3,19 billion over position at December 22 Net NPL ratio of 2.3% Third-party funds of Rp. 28,63 billion Total equity of Rp. 3,329 billion CAR 24.49% ROE (%) Sep-2 Dec Mar-3 Jun-3 Sep-3 Page 1

2 Financial Highlights ROA (%) ROE and ROA increased from minus 3.11% and.13%, respectively, to 17.2% and.76%, respectively, (y-o-y), attributable to current year income generated and the higher rate of increase (in percentage) of income compared to the rate of increase of total assets Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 Other operating revenues grew by 1.1% (y-o-y) from Rp. 7.2 billion to Rp billion. This was primarily attributable to the gain on increase in value of marketable securities of Rp. 7.2 billion and other income of Rp billion. Other income mainly represents gain on sale of marketable securities, retail administration, and credit card administration. The increase was partially offset by the decline in gain on foreign exchange transactions. Loans (Rp. trillion) Operating expenses increased by Rp billion, mainly due to earning asset loss provision expenses. On September of the previous year, the Bank posted a reversal of earning asset loss provision of Rp billion, whereas in September of the current year the Bank elected a more conservative policy by setting aside a provision of earning asset losses of Rp. 6.7 billion Col Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 (%) Dec-2 Mar-3 Jun-3 Sep-3 Corporation Commercial Consumer Syariah Gross NPL (%) Dec-2 Mar-3 Jun-3 Sep Note: Excluding subsidiary company. (%) The balance of loan portfolio increased by 13.% or Rp. 1,148.4 billion (y-o-y), while net loans increased by Rp. 3,19.2 billion over its position at year-end 22. Loan portfolio growth is attributable also to the decentralization strategy in consumer and commercial loan approval to the Loan Center at each of the Bank s 1 Regional Offices (4 in the Jabotabek area and 6 outside Jabotabek). The Head of each Loan Center is authorized to approve loan application up to a certain limit. In discharging its duties, the Head of Loan Center is assisted by the Commercial Manager and Consumer Manager, and coordinated with Area Manager, Branch Manager, Risk Manager and Remedial Manager. As the decentralization of loan approval process also entails greater credit risks, the Bank has accordingly established the Financial Institution & Corporate Credit Risk Management Division and the Small Medium Enterprise & Consumer Credit Risk Management Division to provide credit risk management function in the respective segments. The Bank already has a Risk Management Division responsible among other things for the formulation of credit policies, procedures and manual, as well as the monitoring of credit portfolio risks Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 The Bank strives to optimize cross-selling activities by cooperating with its corporate and commercial customers in the disbursement of loans to the business partners of these customers, as well as by entering into mutually beneficial arrangements with real estate developers and financing companies in the disbursement of consumer loans. The Bank also has an arrangement with Perbarindo to disburse loans to Perbarindo members through executing, channelling or joint financing schemes. The success of Page 2

3 these efforts is reflected in the increase of the proportion of commercial and consumer loans to total loans, from 24.7% and 22.%, respectively, at year-end 22, to 34.1% and 23.1%, respectively, at September 23. Loan Composition (%) Despite the growth of loan disbursement, loan collectibility continues to improve, reflecting the Bank s ability to successfully manage credit risks. The proportion of Category 1 (current) loans continued to increase, while those in Category 2 through 4 steadily declined. This was also reflected on the Bank s gross NPL ratio of 7.% and net NPL ratio of 2.3%, on September 23. In line with prudent banking practices, the Bank degraded the loan collectibility rating of several debtors with less favourable business prospect. However, the Bank has set aside adequate loss provisioning to cover these loans. Others 24.4 Services 1.8 Transportation, Warehousing, and Communications 6.9 Agriculture and Forestry 7.4 Mining 1.1 Manufacturing 12.7 Electricity, Water, and Gas 6.1 Construction 4.1 Trading, Restaurant, and Hotel 26.4 Based on distribution by economic sector, loans disbursed to the trading, hotel and restaurant sector represented the largest portion at 26.4% of total loan. Loans to the manufacturing sector accounted for 12.7%, services 1.8%, agriculture and forestry 7.4%, transportation, warehousing and communications 6.9%, electricity, water and gas 6.1%, construction 4.1%, mining 1.1%, and others 24.4%. Total assets increased by Rp. 9.6 billion from Rp. 33,826.2 billion to Rp. 34,726.8 billion. This was mainly attributable to an additional Rp. 1,876.2 billion of temporary placement in Bank Indonesia Certificate (SBI), an increase of Rp. 1,148.4 billion in loan outstanding, an increase of Rp. 1,392. billion in forex placements with foreign banks, and an increase of Rp billion in foreign currency denominated securities. On the other hand, the amount of government bonds declined by Rp. 6,48.7 billion from Rp. 23,61. billion to Rp. 17,242.8 billion, reflecting the sale of these bonds mainly to Pundi Reksa Rupiah and Pundi Reksa Dollar mutual funds, as well as to other parties. Government bonds represented 49.7% of the Bank s total assets. As at September 23, the composition of government bond portfolio comprised 2.% of hedged bonds, 39.9% floating-rate bonds and 34.6% fixed-rate bonds. The annual interest rate on hedged bonds is equivalent to 3-month SIBOR + 2%, while floating-rate bonds earn annual interest equivalent to 3-month SBI interest rate. Annual interest rate of fixed-rate bonds meanwhile varies between 1.% and 16.%. Total Assets (Rp. trillion) Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 Government Bonds (Rp. trillion) ,2 Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 Third-Party Funds (Rp. trillion) 3 Deposits (excluding deposits from other banks) increased from Rp. 26,19.9 billion to Rp. 28,62. billion (y-o-y). As at September 23, the composition of the Bank s total deposits comprised 6.9% of time deposits, 1.% of savings, and 28.1% of demand deposits. This represented an improvement compared to deposits composition as at September 22, with the portion of high-cost time deposits declining from 63.8% to 6.9% (y-o-y) Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 Page 3

4 Deposits Composition (%) Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 Demand Deposits Saving Deposits 1. Time Deposits Total Liabilities (Rp. trillion) Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 Total Equity (Rp. trillion) The Bank has established several Platinum Access and Platinum Syariah branches, targeting the upper-mid market segment. As of October 23, the Bank operates one Platinum Access branch which provides the full range of banking products and services including deposit products, KPR (housing loans), KPM (car loans), credit card, bill payment, investment products and others, delivered in a priority banking environment. Meanwhile, there were two Platinum Syariah branches located at the Bank s Head Office building and at Wisma Mulia (officially opened on 13 October 23). BII Platinum Syariah provides syariah banking products with a distinctive Platinum service level to high net-worth individual customers. On September 23, BII Platinum Syariah won the Most Innovative Syariah Bank award from Majalah Modal and Karim Business Consulting for its unique market positioning. Total liabilities increased by Rp. 44. billion (y-o-y) from Rp. 3,92.1 billion to Rp. 31,397.6 billion, attributable mainly to increase of Rp. 2,442.6 billion in third-party funds and Rp billion in deposits from other banks. On the other hand, foreign exchange-denominated borrowings declined by Rp. 1,619.9 billion, while other liabilities declined by Rp billion. As of September 23, the Bank has repaid its borrowings under the Exchange Offer Programs I and II. The Bank has also effected a buy-back of its liabilities to Acme Securitisation of US$ 63.6 million, at a price equivalent to 97.% % of the liabilities arising from the securitisation of BII Visa and Master credit card future receivable amounting to US$ 14 million. The Bank has net commitment liabilities of Rp. 3,833.7 billion arising from Rp. 3,298.8 billion in unused loan commitment granted and Rp billion in outstanding irrevocable export-import L/C facilities CAR Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 Total equity increased from Rp. 2,874.1 billion (y-o-y) to Rp. 3,329.2 billion, in line with profitable operations in the current year. As at September 23, the Bank s capital in the calculation of Capital Adequacy Ratio (CAR) comprised Rp. 1,731.7 billion of Tier-I capital and Rp. 1,33. billion of Tier-II capital. The amount of risk-weighted assets increased from Rp. 6,918.1 billion (y-o-y) to Rp. 11,811.4 billion due to the growth in loan portfolio, marketable securities, placement with other banks, and other risk bearing assets. 2 4% The decline in government bonds, which carry a zero risk factor in the Rp. Trillion % 2% calculation of risk-weighted assets, is offset by the increase in loans and other earning assets which carry higher risk factor, resulting in the decline of CAR from 38.9% as at end of September 22 to 24.49% as at end of September 23. 1% Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 % Loan Government Bonds CAR Page 4

5 Balance Sheets CONSOLIDATED BALANCE SHEET PT BANK INTERNASIONAL INDONESIA, Tbk AS OF SEPTEMBER 3, 23 AND 22 (Unaudited) (in million Rupiah) Assets Liabilities & Equity No. Accounts Sep 3, 23 Sep 3, 22 No. Accounts Sep 3, 23 Sep 3, Cash 39,18 492, Placement with Bank Indonesia a. Demand Deposits with Bank Indonesia 1,339,997 1,26,188 b. Certificate of Bank Indonesia 1,876,181 - c. Others 261, 29, Demand Deposits with Other Banks a. Rupiah 4,17 2,767 b. Foreign Currencies 263,862 91,66 4. Placement with Other Banks a. Rupiah 3, 297, b. Foreign Currencies 1,96,961 24,496 Allowance for Possible Losses (19,7) (9,68). Marketable Securities a. Rupiah 97,84 77,438 i. Trading 23,29 18,246 ii. Available For Sale 6,636 1,3 iii. Held to Maturity 8,739 49,189 b. Foreign Currencies 1,92, ,413 i. Trading 437,24 128,64 ii. Available For Sale 3,33 31,874 iii. Held to Maturity 61,811 31,97 Allowance for Possible Losses (11,413) (43,22) 6. Government Bonds i. Trading 333,911 44,22 ii. Available For Sale 2,1, 3,286,63 iii. Held to Maturity 14,73,936 2,32, Securities Purchase under Agreements to Resell (Reverse Repo) Allowance for Possible Losses Derivative Assets 36 3, Allowance for Possible Losses (3) (34) 9. Loans a. Rupiah 6,316,634 3,393,36 - Related Parties 1,169 1,133 - Non-related Parties 6,31,46 3,392,227 b. Foreign Currencies 2,46,939 4,321,819 - Related Parties 3,839 4,43 - Non-related Parties 2,43,1 4,317,389 Allowance for Possible Losses (64,646) (3,19,32) 1. Syariah Receivables a. Murabahah Receivables (netto)* - - Allowance for Possible Losses Syariah Financing Facilities a. Mudharabah Muqayaddah Financing Facilities - - Allowance for Possible Losses Acceptance Receivables 28,364 47,99 Allowance for Possible Losses (2,74) (281) 13. Investments 36,312 77,84 Allowance for Possible Losses (3,878) (3,699) 14. Interest Receivables 33,934 24,9 1. Prepayment 11,84 132, Prepaid Taxes 11,322 1, Deferred Tax Assets 11,34 8, Premises & Equipment 1,173,283 1,7,64 Accumulated Depreciation (274,4) (133,63) 19. Lease Receivables - - Accumulated Depreciation Foreclosed Properties 167, , Other Assets 27,622 16,314 Total Assets 34,726,79 33,826, Demand Deposits 8,7,37 6,44,264 a. Rupiah 2,46,871 1,79,982 b. Foreign Currencies,96,499 4,649,282 Wadiah Demand Deposits Liabilities Immediately Payables 23, , Saving Deposits 4,281,877 3,38,7 Wadiah Saving Deposits - - Mudharabah Saving Deposits Time Deposits 16,27,1 16,619,626 a. Rupiah 12,71,199 12,81,971 i. Related Parties 61, ,63 ii. Non-related Parties 12,99,7 12,44,98 b. Foreign Currencies 3,,91 3,83,6 i. Related Parties 778,21 - ii. Non-related Parties 2,777,6 3,83,6 Mudharabah Time Deposits - - i. Related Parties - - ii. Non-related Parties - - i. Related Parties - - ii. Non-related Parties - -. Certificates of Deposits 6,197 61,484 a. Rupiah 6,197 61, Deposits from Other Banks 934,99 289, Securities Sold under Agreements to Repurchase (Repo) - 82, Derivative Liabilities 12,614 4, Acceptance Liabilities 28,364 47,99 1. Securities Issued 11. Borrowings a. Short-term Financing Facilities from BI - - b. Others 44,231 2,147,23 i. Rupiah 42,233 43,131 - Related Parties Non-related Parties 42,233 43,131 ii. Foreign Currencies 91,998 1,711,892 - Related Parties Non-related Parties 91,998 1,711, Estimated Losses on Commitments and Contingencies 14,741 47, Lease Payable Accrued Expenses 3, , Taxes Payable -, Deferred Tax Liabilities Other Liabilities 713,83 1,26, Subordinated Loans a. Related Parties - - b. Non-related Parties Loan Capital a. Related Parties - - b. Non-related Parties Minority Interest Equity a. Capital Stock 17,867,731 17,867,731 b. Additional Paid-in Capital 9,66 12,3 c. Donated Capital - - d. Translation Adjustments 99,19 111,61 e. Revaluation Increment on Premises and Equipment 1,197,92 1,197,92 f. Unrealized Gain (Loss) in Value of Marketable Securities 9,17 (6,87) g. Other Comprehensive Income - - h. Balance (1,934,82) (16,28,222) Total Liabilities and Equity 34,726,79 33,826,214 Page

6 Income Statements CONSOLIDATED INCOME STATEMENTS PT BANK INTERNASIONAL INDONESIA, Tbk PERIOD JANUARY 1 TO SEPTEMBER 3, 23 AND 22 (in million Rupiah, except earnings per-share) No. Accounts Sep 3, 23 Sep 3, 22 Operating Revenues and Expenses 1. Interest, Margin, and Sharing Revenues 1.1. Interest Revenues a. Rupiah 2,338,64 2,1,41 b. Foreign Currencies 19, , Margin and Sharing Revenues Commissions and Fees a. Rupiah 4,83 9,236 b. Foreign Currencies 3, Total Interest, Margin, and Sharing Revenues 2,42,317 2,171, Interest Expenses 2.1. Interest Paid a. Rupiah 1,729,17 1,919,699 b. Foreign Currencies 179, , Bonus and Sharing Expenses Commissions and Fees - - Total Interest, Margin, and Sharing Expenses 1,99,481 2,36,7 Interest, Margin, and Sharing Revenues 632,836 (194,37) 3. Other Operating Revenues 3.1. Other Commissions and Fees 1,3 91, Gain on Foreign Exchange Transactions Net,97 14, Gain from Increase in Value of Marketable Securities 86,76 1, Other Revenues 341,699 28,784 Total Other Operating Revenues 83,78 7, Reversal of (Provision for) Estimated Losses on Foreclosed Properties 6,713 (481,479). Estimated Losses on Commitments and Contingencies 3, Other Operating Expenses 6.1. General and Administration 476,44 399, Personnel 3,147 19, Decline in Value of Marketable Securities Foreign Exchange Transaction Expenses Other Expenses 173,644 17,16 Total Other Operating Expenses 1,1,61 291,447 Operating Revenues (Expenses) Net 26,6 21,41 Non-operating Revenues (Expenses) 7. Non-operating Revenues 27,329 2,39 8. Non-operating Expenses 31,861 43,22 Non-operating Revenues (Expenses) Net (4,32) 9, Extraordinary Revenue (Expense) Income (Loss) before Income Tax 21,28 3, Provision for Income Tax (2,198) Current Year Profit (Loss) 221,726 3, Minority Interest Balance at Beginning of Year (16,16,38) 16,288,82 1. Dividend Others Balance at End of Year (1,934,82) 16,28, Earnings per Share 4,64 1,38 Page 6

7 Commitments and Contingencies CONSOLIDATED COMMITMENTS AND CONTINGENCIES PT BANK INTERNASIONAL INDONESIA, Tbk AS OF SEPTEMBER 3, 23 AND 22 (Unaudited) (in million Rupiah) No. Accounts Sep 3, 23 Sep 3, 22 COMMITMENTS Commitments Receivables 1. Unused Fund Borrowings Facilities 2. Others - - Total Commitments Receivables - - Commitments Liabilities 1. Unused Loans Commitments Granted to Customers a. Rupiah 3,3,164 2,123,1 b. Foreign Currencies 24,646 18,13 2. Outstanding Irrevocable L/C 34,92 29, Others - - Total Commitments Liabilities 3,833,712 2,62,821 Total Commitments Net (3,833,712) (2,62,821) CONTINGENCIES Contingencies Receivables 1. Guarantees Issued by Other Banks b. Foreign Currencies 6-2. Past Due to Interest Revenue a. Rupiah 46,6 7,1 b. Foreign Currencies 1,26 1,88, Others - - Total Contingencies Receivables 6,687 1,794,83 Contingent Liabilities 1. Guarantees Issued a. Bank Guarantees - Rupiah 161,74 67,72 - Foreign Currencies 8,23 14,261 b. Others Outstanding Revocable L/C Others - - Total Contingent Liabilities 219,97 171,833 TOTAL CONTINGENT NET (163,27) 1,622,2 The Financial Statements have been prepared in accordance with regulation of Bank Indonesia No. 3/22/PBI dated December 13, 21 and Circular Letter of Bank Indonesia No. 3/3/DPNP dated December 14, 21, along with Decision Letter of the Chairman of Capital Market Supervisory Agency No. Kep-6/PM/2 dated March 13, 2. Exchange rate as of September 3, 23 and 22 were IDR 8,39 and IDR 8,982. Page 7

8 Important Information Financial Highlights (Rp. billion) Sep-2 Dec-2 Mar-3 Jun-3 Sep-3 Loans 7,71,668 6,921 8,141 8,864 Government Bonds 23,62 23,9 22,69 2,97 17,243 Total Assets 33,826 36,32 38,24 34,48 34,727 Third Party Funds 26,16 29,222 3,47 27,63 28,63 Total Liabilities 3,92 33,348 34,89 31,262 31,398 Equity 2,874 2,977 3,129 3,223 3,329 Interest Revenue 2,171 3, ,73 2,42 Interest Expenses 2,366 3, ,38 1,99 Interest Net Income Other Operating Income Other Operating Expenses ,11 Operating Income Net Net Income Net Income Per Share (Rp./Share) 1,38 4,63 1,42 2,99 4,64 Important Financial Ratio (%) RATIOS Sep 3, 23 Sep 3, 22 CAR Premises and Equipments to Total Capital Non Performing Earning Assets NPL Gross Allowance of Earning Assets to Total Earning Assets Loan Provision Coverage/Allowance Provided ROA ROE NIM BOPO LDR GWM Rupiah.11.7 PDN (Net Open Position) PT BANK INTERNASIONAL INDONESIA, Tbk Plaza BII Tower 2, Jl. M.H. Thamrin Kav. 22, Jakarta 13, Indonesia Web Site: Corporate Communication Division ccomunications@bankbii.com Ph: ext True Local Bank. World Class Standard Page 8