First Half 2005 Performance

Transcription

1 Investor Newsletter 09 th Edition Financial Highlights First Half 2005 Performance Net Income (Rp billion) (year to date) PT Bank Internasional Indonesia Tbk (BII) reported net income of Rp 397 billion or Rp 8.31 per share for the first half year ended June 30, This represented a 3% increase from the same period last year, despite the fact that last year s income was bolstered from the sale of fixed rate government bonds. The Bank continues to focus its efforts to boost revenues from its core banking and loan expansion, as opposed to relying on one-time revenue sources, such as the sale of government bonds. Net Interest Income (NII) grew to Rp 1,129 billion, 35% higher than last year s NII of Rp 835 billion, with loan expansions being the primary driver. In addition, other operating income of Rp 488 billion, represented a 4% increase from last year. Net Interest Income (Rp billion) (year to date) Total assets grew 23% to Rp 43,143 billion mainly due to larger loan portfolio which increased 55% from Rp 12,365 billion to Rp 19,179 billion. Consequently, the Loan to Deposit Ratio (LDR) increased to 56.21%. This encouraging loan growth was achieved in the midst of an increasingly competitive market and soaring interest rates during the year. The loan expansion was mainly driven by Consumer and SME/Commercial Loans, which grew 97% and 50% respectively. Net Interest Margin (%) Besides the success in maintaining its Non-Performing Loans (NPL) at conservative levels, the Bank was also successful in improving its NPL level to 3.05% from last year s 7.08%. BII has also implemented BI Regulation (PBI) No. 7/2/PBI/2005 pertaining to the Assessment of the Banks Earning Assets Quality, without significant impact to its NPL position as BII had implemented conservative measures in the assessment of its assets quality. Page 1

2 Million Rupiah, % Interest Income (%) Loans (Rp trillion) June June Interest revenues 1,875,058 1,535,591 Interest expenses 746, ,778 Net interest revenues 1,128, ,813 Other operating revenues 507, ,464 Net income 397, ,921 Total assets 43,143,445 35,102,566 Loan gross 19,178,983 12,365,000 Government Bonds 12,697,273 14,938,216 Marketable securities 2,514,732 1,320,171 Placement with other banks 2,616,646 2,554,507 Total liabilities 38,753,577 31,218,055 Saving deposits 5,880,033 5,399,979 Demand deposits 10,447,016 9,959,117 Time deposits 15,106,763 13,346,127 Total equity 4,389,868 3,884,511 Loan to deposit ratio 56.21% 42.27% Non-performing loan gross 3.05% 7.08% Non-performing loan net 2.06% 2.97% Capital adequacy ratio 20.93% 22.16% Consolidation of PT Wahana Ottomitra Multiartha Tbk (WOM). In May 2005, the Bank acquired 43% ownership in WOM and the Bank has accounted for its portion of WOM s net income from the date of acquisition. The Bank s portion of WOM s net income is calculated based on the percentage of ownership held. NPL Gross (%) 22% increase in interest income. The Bank s interest income rose 22% from Rp 1,501.5 billion to Rp 1,830.7 billion, on the back of continued loan expansion. Interest expenses also increased slightly from Rp billion to Rp billion, in line with the upward trend in interest rates. Overall, the Bank recorded a 35% increase in net interest income as at the end of the 2 nd quarter 2005, to Rp 1,129 billion, while Net Interest Margin (NIM) fell slightly from 5.32% to 5.13%. Interest from loans contributed 65.8% of interest income, while interest from Government Bonds acounted for 23.7% of interest income compared to last year s 44.8%. Interest Income Sources First Half 2005 First Half 2004 Goverment Bonds 23.7% 44.8% Loans 65.8% 49.2% Placement with other banks 4.3% 1.9% Marketable securities 5.8% 3.6% Syariah 0.4% 0.5% Page 2

3 Other operating income rose 4%. Other operating income increased from Rp billion to Rp billion. Discounting last years one-off income from the sale and revaluations of the government bonds portfolio, the Bank recorded an increase in income from its core business. A 27% increase in other commissions and fees and 72% gain in other income was achieved. The main contributors of other income include loan administration fees, credit card administration fees, mutual fund commissions and bank fees. Total Assets (Rp trillion) Slight increase in operating expense to operating income ratio (BOPO). The Bank continued its initiatives towards improving operating cost efficiency, including outsourcing of non-core business, office space optimization and sale of idle assets to reduce maintenance costs. At the same time, the Bank also invested in infrastructure and human resources to build a long term sustainable business. Consequently, operating costs rose from Rp billion to Rp 1,098.8 billion. The BOPO ratio was relatively unchanged at 80.96% compared to last year s 80.67% as the increase in operating costs was balanced by an increase in operating income as the business continued to build momentum. Loan Composition (%) Loan grew 55%. As at the end of the 2 nd quarter 2005, loans grew 55% compared to the same period last year, from Rp 12,365 billion to Rp 19,179 billion. Compared to year ended 2004 loan balances of Rp 13,161 billion loans grew 46% for the half year. Consumer and SME/ Commercial loans which represent BII s core focus grew 97% and 50% respectively. Meanwhile, Corporate loan grew 9% resulting in a loan composition as of June 30, 2005 of: Corporate 32%, SME/Commercial 31% and Consumer 37%. In the Consumer segment automotive loans are 46% of total Consumer loans, with mortgages of 32%, credit card of 14% and other loans, including employee loans of 8%. In the SME/ Commercial segment, 38% comprised of Commercial loans, defined as loans valued between Rp 5 and Rp 25 billion. The Bank s loan portfolio was also well distributed by industry with 17.9% in trading, 15.2% in manufacturing, 12.3% in agriculture, 9.9% in services and 3.1% in construction. Third-party Funds (Rp trillion) Improved loan quality. The NPL ratio (gross) fell from 7.08% to 3.05%, while the net NPL ratio decreased from 2.97% to 2.06%. The ratio of loans under surveillance (category 2) has also reduced from 12% to 6%. Third party deposits. Overall, customer deposits rose 10% from Rp 28,705 billion to Rp 31,434 billion. Savings and checking accounts grew 9% and 5% increase respectively, while time deposits (TD) grew 13%. The Bank continued to maintain its TD and non-td accounts split. As of June 30, 2005, TD represented 48% of total customer deposits. The following table presents the composition of the Bank s funding accounts. Page 3

4 Deposits Composition (%) Total Liabilities (Rp trillion) Product Total (Rp billion) First Half 2005 Total % of third party fund Rupiah average interest Total (Rp billion) First Half 2004 Total % of third party fund Time deposits 15, % 6.98%* 13, % 6.24%* Saving deposits 5, % 3.41% 5, % 4.57% Demand deposits 10, % 2.59% 9, % 3.84% Note: * 1-month time deposits The Bank s capital grew 52.8%. The Bank s tier 1 capital as of June Rupiah average interest 30, 2005, which was used for calculation of CAR, stood at Rp 2,699.1 billion, while tier 2 capital was Rp 2,699.1 billion, resulting in total equity of Rp 5,398.2 billion, a 52.8% increase, compared to last year s equity of Rp 3,532.7 billion. The increase was primarily attributable to injection of supplementary capital of Rp 1,304.8 billion, from sub-debt issuance. The Bank s Capital Adequacy Ratio (CAR) before and after market risk adjustment was 20.93% and 19.79%, respectively. BII Stock Performance (BNII) As at June 30, 2005 the Bank share price was Rp 175 compared to Rp 185 previously. The Highest share price during the period was Rp 215, in March The decline from Rp 185 to Rp 175 reflects the market s weaker expectation in the banking sector s performance as a result of significant increases in SBI rates and the issuance of new Bank Indonesia regulations on asset quality. Equity (Rp trillion) BII Share Price & BII Transaction Volume CAR (%) Page 4

5 First Half 2005 Events Highlights Formed cooperation with PT Nestlé Indonesia to provide financing facilities for Nestlé s distributors. Signed cooperation agreement with PT Askrindo to provide Bank Guarantee (BG) facilities with underwriting from PT Askrindo. Channeling of Micro and SME loans through Savings and Loans Cooperatives (KSP) and Saving and Loans Units of Cooperatives (USP Koperasi) under the coordination of the Department of Cooperatives and SME. Signed cooperation agreement with PT Telkomsel Indonesia and PT Ericsson Indonesia to provide working capital loans to PT Ericsson Indonesia s subcontractors which are participating in the development of PT Telkomsel s GSM infrastructure network, particularly in the development of Base Transceiver Station in northern Sumatera region. Formed strategic partnership with PT Lion Mentari Airlines in the areas of Co-Branding, Payment Gateway and Cash Management. The Bank formed marketing cooperation and strategic alliances with PT AIG Life and PT EKA Life to provide significant contributions to each other, primarily in providing insurance products to BII customers. The Bank and DBS Indonesia (DBSI) forged strategic alliances, enabling DBSI s corporate customers to access BII s branch network for cash management services. Established Joint Security Forum with DBSI and Bank Danamon, to facilitate information sharing amongst the banks, to improve operational efficiency and security. Through this Forum, member banks will share their knowledge, experiences and best practices, as well as develop proactive risk management programs to prevent fraudulent activities. Page 5

6 Balance Sheets CONSOLIDATED BALANCE SHEET PT BANK INTERNASIONAL INDONESIA Tbk AS OF JUNE 30, 2005 AND 2004 (in million Rupiah) Assets Liabilities & Equity No. Description Jun 30, 2005 Jun 30, 2004 No. Description Jun 30, 2005 Jun 30, Cash 756, , Placements with Bank Indonesia a. Current account with Bank Indonesia 1,970,224 1,345,645 b. Certificates of Bank Indonesia 4, ,531 c. Others , Current accounts with other banks a. Rupiah 38,761 3,698 b. Foreign currencies 255, , Placements with other banks a. Rupiah 1,500 68,250 placements with other banks -/- (43) (701) b. Foreign currencies 2,615,146 2,476,257 placements with other banks -/- (25,715) (26,481) 5. Marketable securities a. Rupiah 173, ,737 i. Trading 51,891 87,255 ii. Available for sale 121,232 48,136 iii. Held to maturity 755 2,346 marketable securities -/- (1,621) (1,337) b. Foreign currencies 2,336, ,903 i. Trading 242, ,319 ii. Available for sale 1,002, ,308 iii. Held to maturity 1,091, ,276 marketable securities -/- (22,974) (9,539) 6. Securities sold under agreements to repurchase 999, Government Bonds i. Trading 505,509 ii. Available for sale 3,771,015 5,477,550 iii. Held to maturity 8,926,258 8,955, Reverse repo a. Rupiah reverse repo -/- b. Foreign currencies reverse repo -/- 9. Derivatives receivable 12,966 14,371 derivatives receivable -/- (130) (143) 10. Loans a. Rupiah 15,522,665 8,681,252 i. Related parties 67, ,360 ii. Non-related parties 15,454,897 8,528,892 loans -/- (278,570) (298,311) b. Foreign currencies 3,656,318 3,683,748 i. Related parties 3,723 1,022 ii. Non-related parties 3,652,595 3,682,726 loans -/- (144,916) (495,031) 11. Acceptances receivable 396, ,216 acceptances receivable -/- (3,144) (4,463) 12. Investments in shares of stocks 18,437 18,680 investments in shares of stocks -/- (12,623) (12,424) 13. Goodwill 201, Interest receivables 325, , Prepayments 261, , Prepaid tax 2,936 3, Deferred tax 128, , Premises and equipment 1,086, ,873 Accumulated depreciation -/- (207,735) (75,471) 19. Abandoned properties 22,379 abandoned properties 20. Leased assets leased assets -/- 21. Foreclosed assets 76, ,593 foreclosed assets -/- 22. Other assets 279, , Demand deposits a. Rupiah 3,320,223 3,058,083 b. Foreign currencies 7,126,793 6,901, Liabilities immediately payable 570, , Saving deposits 5,880,033 5,399, Time deposits a. Rupiah 12,641,787 10,382,027 i. Related parties 51,759 20,200 ii. Non-related parties 12,590,028 10,361,827 b. Foreign currencies 2,464,976 2,964,100 i. Related parties ii. Non-related parties 2,464,357 2,963, Certificates of deposits a. Rupiah b. Foreign currencies 6. Deposits from other banks 817, , Securities sold under agreement to repurchase (repo) 852,161 12, Derivatives payable 8, Acceptances payable 396, , Securities issued 1,514,514 a. Rupiah 1,514,514 b. Foreign currencies Borrowings a. Short-term loan facilities received from Bank Indonesia b. Others 595, ,648 i. Rupiah 466, ,667 Related parties Non-related parties 466, ,667 ii. Foreign currencies 129, ,981 Related parties Non-related parties 129, , Estimated losses on commitments and contingencies 15,157 14, Lease payable 14. Accrued interest 104,142 36, Taxes payable 16. Deferred tax payable 19, Other liabilities 695, , Subordinated loans a. Related parties b. Non-related parties 1,424, Loan capital a. Related parties b. Non-related parties 20. Minority interest 305, Equity a. Paid-up capital 3,216,192 3,216,192 b. Share options 35,818 c. Additional (discount) paid capital 61,745 61,745 d. Funds for paid-up capital e. Donated capital f. Differences arising from the translation of foreign currency financial statements 115, ,420 g. Revaluation increment in premises and equipment h. Unrealized gain (loss) on increase (decrease) in value of available-for-sale marketable securities and Government Bonds (12,041) 106,233 i. Other comprehensive income j. Accumulated gain (losses) 972, ,921 Total Assets 43,143,445 35,102,566 Total Liabilities & Equity 43,143,445 35,102,566 Page 6

7 Income Statements CONSOLIDATED INCOME STATEMENTS PT BANK INTERNASIONAL INDONESIA Tbk PERIOD JANUARY 1, TO JUNE 30, 2005 AND 2004 (in million Rupiah, except earnings per share) No. Descriptions Jun 30, 2005 Jun 30, 2004 Operating revenues and expenses 1. Interest revenues, margin, and revenues sharing 1.1. Interest earned a. Rupiah 1,592,029 1,357,667 b. Foreign currencies 238, , Margin and revenues sharing 1.3. Commissions and fees a. Rupiah 39,636 25,428 b. Foreign currencies 4,705 8,684 Total interest revenues, margin, and revenues sharing 1,875,058 1,535, Interest expenses, bonus, and expenses sharing 2.1. Interest incurred a. Rupiah 682, ,778 b. Foreign currencies 60,345 50, Bonus and profit sharing 2.3. Commissions and fees 3,169 Total interest expenses, bonus, and expenses sharing 746, ,778 Net interest income, margin, and revenues sharing 1,128, , Other operating revenues 3.1. Commissions and fees other than from loans 129, , Gain on foreign exchange transactions - net 43,981 42, Increase in value of marketable securities and Goverment Bonds 141, Others 315, ,630 Total other operating revenues 488, , Provision for possible losses on earning assets and foreclosed properties 10, , Provision (reversal of provision) for estimated losses on commitments and contingencies 172 (1,871) 6. Other operating expenses 6.1. General and administrative 445, , Personnel 481, , Decrease in value of marketable securities and Government Bonds 11, Losses on foreign exchange transactions 6.5. Promotion 43,358 51, Other expenses 117, ,470 Total other operating expenses 1,098, ,056 Profit (loss) from operations - net 507, ,464 Non-operating Revenues and Expenses 7. Non-operating revenues 12,886 4, Non-operating expenses 7,178 3,660 Non-operating revenues (expenses) - net 5, Extraordinary gain/loss 10. Income (loss) before corporate income tax 513, , Corporate income tax 36, Deferred income tax 13. Income (loss) after corporate income tax 476, , Pre acquisition income (30,768) 15. Minority interest (49,037) 16. Net income (loss) 397, , Accumulated gain (losses) at beginning of period 821, Dividend (246,084) 19. Others 20. Elliminated for the purpose of the quasi-reorganization 21. Accumulated gains (losses) at end of period 972, , Earnings per-share Page 7

8 Commitments and Contingencies CONSOLIDATED COMMITMENTS AND CONTINGENCIES PT BANK INTERNASIONAL INDONESIA Tbk AS OF JUNE 30, 2005 AND 2004 (in million Rupiah) No. Description Jun 30, 2005 Jun 30, 2004 COMMITMENTS Commitment receivables 1. Unused facilities on borrowings received a. Rupiah b. Foreign currencies 2. Others Total commitment receivables Commitment liabilities 1. Unused loan commitments granted to customers a. Rupiah 6,084,300 3,320,848 b. Foreign currencies 804, , Outstanding irrevocable L/C 428, , Others Total commitments liabilities 7,316,680 4,135,911 TOTAL COMMITMENTS - NET (7,316,680) (4,135,911) CONTINGENCIES Contingent receivables 1. Guarantees received a. Rupiah 1,443 b. Foreign currencies 57,924 13, Past due interest revenues a. Rupiah 67,428 65,840 b. Foreign currencies 28,070 24, Others Total contingent receivables 154, ,651 Contingent liabilities 1. Guaranteed issued a. Bank guarantees Rupiah 209, ,625 Foreign currencies 112, ,119 b. Others 2. Outstanding revocable L/C 3. Others Total contingent liabilities 322, ,744 TOTAL CONTINGENCIES - NET (167,584) (198,093) PT BANK INTERNASIONAL INDONESIA Tbk Plaza BII Tower 2, Jl. M.H. Thamrin No. 51, Jakarta 10350, Indonesia Web Site: Corporate Communication & Office of the Board ccommunications@bankbii.com Ph: ext Page 8