BRI Pursuing a Sustainable and Quality Growth

Transcription

1 PT Bank Rakyat Indonesia (Persero) Tbk. BRI Pursuing a Sustainable and Quality Growth Expanding Micro and Recovering Small and Medium Businesses Financial Updates Q Jakarta, 28 October 2011

2 Agenda Financial Highlights.. 2 Macro Economy. 4 Bank Rakyat Indonesia Financial Performance... 8 Balance Sheet.. 9 Income Statement. 15 Financial Ratios. 17 Business Strategy and Developments.. 19 Micro Banking Small & Medium Business Corporate Loans Fee based Income.. 31 Human Capital 33 Supporting Material. 35 Banking Industry.. 36 BRI - Financial Performance 38 Others

3 Financial Highlight 2

4 Highlights High performance during consolidation *) Include Operational Risk Note: Q figures are PSAK 50 & 55 compliant Numbers stated in this presentation are bank only 3

5 Macro Economy Strong Fundamentals to weather global economy slow down 4

6 Macro Economic Condition A strong fundamental GDP Growth (%) & Consumer Confidence BI Rate & Inflation ,000 11,000 10,000 9,000 8,000 7,000 6,000 5, Exchange Rate & International ti Reserves Q1 11 Q2 11 Q3 11 Cons. Confidence GDP Growth Source: BPS & Bloomberg 9,830 8, ,393 11,120 9, ,996 8, , Mar 11 Jun 11 Sep 11 Source: BI IDR/USD Int'l Reserves , % 12% 10% 8% 6% 4% 2% 12.75% 9.75% 9.75% 11.06% 8.00% 9.25% 6.50% 6.96% 6.75% 6.50% 6.60% 6.29% 2.78% Mar 11 Source: BI & BPS BI Rate 6.65% 5.54% 54% 4.61% Jun 11 Sep 11 Inflation In Q2 2011, GDP grew 6.5%, in-line with the government target of 6.5% by the end of 2011 supported by the high level of consumer confidence of 115 BI lowered the benchmark rate to 6.50% in Oct 2011 to boost economy as inflation in a declining trend. Rupiah depreciates in Sep 2011 as investors concerned with the impact of EU condition, but strong macro economy as well as strong int l reserves (double from 2008) provides adequate e cushion from the external shock 5

7 Macro Economic Condition Resilient economy supported by domestic consumption & FDI GDP composition (as % to GDP) Export Composition by Destination Import Consumption Others, 28.00% ASEAN, 20.89% Export EU 13.31% South Korea 4.75% Investment Source: BPS, data as of June 2011 Foreign Direct Investment 2,122 8,336 7,273 4,912 9,319 4,878 13,302 Govt. Expenditure 8.30 In USD million 8, Q1-Q3 10 Source: BI & BKPM 14,494 Q1- Q3 11 US 10.00% Japan, 11.27% Source: BPS, data as of June 2011 China 11.79% Two third of Indonesia GDP is coming from domestic sector, while export contributed 27.3% of GDP. ASEAN countries are the largest Indonesia export destination, while EU countries and US are 13.31% 31% and 10.00% of the export destination respectively. Prudent government fiscal policy reflect in deficit budget of below 2% in 2011 as well as low Debt to GDP of 26% in 2010 Strong macro economy condition attract capital inflow, FDI to Indonesia grew strongly 61.07% (yoy) 6

8 Macro Economic Condition Higher confidence facing the crisis Stock Market Domestic vs Foreign Ownership Global Crisis: 2008 vs % % 60% crisis.46% 62.17% 62.97% 62.37% % 62.42% % 62.14% % Epicentrum US Euro Zone Main Causes Sub-prime mortgage Debt crisis in Greece & in US other EU countries 100% 80% 60% Current 40% 20% 40% 20% 0% 37.54% 37.82% 37.03% 36.63% 37.54% 36.58% 37.96% 38.86% 39.38% Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Source: Bapepam-LK Domestic Foreign From financial portfolio perspective, foreign ownership in stock market and government bond are relatively stable during 2011 Govt. Bonds Domestic vs Foreign Ownership 70.00% % 69.65% % 69.65% % 67.39% % 67.22% % 65.99% 34.01% 64.46% % 64.86% 35.14% 68.63% 31.37% GDP Growth 5.2% in 2008 drop to 4.5% in % in June 2011 projected declined to 6.3% in 2012 GDP per USD2,270 in 2008 USD3,005 (2010) capita increase to USD2,350 in 2009 Exchange rate 9,000-13,000 8,500-9,500 Inflation 11.06% 4.61% (Sep 11) BI Rate % 6.5% (Oct 11) Debt to GDP 33% 26% Loan to GDP 26% 28% Int l Reserves $51.6 billion $114.5 billion ( Sep 11) Source: BI & BPS Indonesia economy is relatively better than that of in 2008, also GDP per Capita and middle income class keep growing to support domestic consumption 0% Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Domestic Foreign Source: Bapepam-LK Those factors above provide higher confidence facing the impact of current euro-zone debt crisis 7

9 Bank Rakyat Indonesia Financial Performance 8

10 Balance Sheet 9

11 Balance Sheet Highlights IDR Billion Note: FY 2010 & Q figures are PSAK 50 & 55 compliant Numbers stated in this presentation are bank only 10

12 Asset - Composition Maintained the domination of earning assets Total Assets Composition ii (%) Earning Assets Composition (%) Note: FY 2010 & Q figures are PSAK 50 & 55 compliant Numbers stated in this presentation are bank only 11

13 Loans - Composition & Growth Expanding micro and consolidating small and medium businesses Composition by business segment (%) Loans Outstanding IDR trillion CAGR: 28.60% Q Q Q Q Note: FY 2010 & Q figures are PSAK 50 & 55 compliant Numbers stated in this presentation are bank only 12

14 Loan Quality Loan quality improvement in progress NPL Ratio by Business Segments (%) Loan Quality Breakdown (%) Non Performing Loan Breakdown (%) Q Q Current Special Mention NPL Q Q Sub Standard Doubtful Loss Note: FY 2010 & Q figures are PSAK 50 & 55 compliant Numbers stated in this presentation are bank only 13

15 Deposit composition & CoF trend Targeting higher low cost fund Deposits Growth: Trend (IDR trillion) Deposit Composition, COF and BI Rate (%) CAGR: 27.46% Q3 2010Q Demand Saving Time Deposit TOTAL Q Q Low Cost High Cost COF BI Rate Total deposit grew IDR trillion or an increase of 20.50% (yoy), and low cost of fund contributes 59.57% of total t third party fund COF decline to 4.78% due to improving CASA composition and lower saving interest rate Note: FY 2010 & Q figures are PSAK 50 & 55 compliant Numbers stated in this presentation are bank only 14

16 Income Statement 15

17 Income Statement Highlights IDR Billion *) Annualized & stock split adjusted Note: FY 2010 & Q figures are PSAK 50 & 55 compliant Numbers stated in this presentation are bank only 16

18 Financial Ratios 17

19 Key Financial Ratios *) include operational risk **) CER = ( Employee expenses+g&a+other Opr.Expenses)/(NII+Fees&Commission+Other Opr.Income) Note: FY 2010 & Q32011 figures are PSAK 50 & 55 compliant Numbers stated in this presentation are bank only 18

20 Business Strategy and Developments 19

21 Micro Banking Continue to Expand 20

22 Micro Banking The Performance Managing the performance Loan Deposit CAGR: 28.92% CAGR: 19.75% KUR Micro Kupedes Total Micro Loan Q Q Micro Outlet Q Q Q Q BRI run intermediary function in micro segment by disbursing micro loans as well as taking deposit Micro loan grew strongly 32.65% yoy with the CAGR of 28.93% supported by Micro KUR loan and Teras BRI establishment To capture high growth business opportunities in outside Java, BRI open more outlet in outside Java BRI Unit % BRI Unit outside Java 21

23 Micro Banking Expanding Outlets Teras BRI - more accessible, getting closer to customers Teras BRI Performance IDR billion Teras BRI Network 2, , , , ,195 1, , (2 0 0 ) Banjarmasin 4.78% Denpasar 5.79% Malang 11.16% Surabaya 5.54% JayapuraBanda Aceh Manado 1.76% 1.93% Medan 2.52% Makasar 4.45% Palembang 7.21% 5.62% Yogyakarta 12.42% Semarang 7.30% Pekanbaru 3.19% Padang 2.60% Bandung 11.07% Jakarta 12.67% Q Q Q FY 2010 Q Q Q Loan Deposit No of Teras Teras is an arm-length of conventional micro outlet, designed to expand micro banking and to protect the market from competitor. Teras BRI and a BRI loan officer performed banking transaction at customer s s Kiosk 22

24 Micro Banking Expanding Customer Base Micro KUR boost the micro loan growth Micro KUR KUR outstanding and number of borrowers KUR is a special loan scheme to tap un-banked customer that has feasible business Government through state-owned insurance companies cover up to 80% of the loss IDR trillion of Micro KUR has been disbursed to 4,93 million borrowers since its inception in October 2007 Micro KUR outstanding was IDR10,1 trillion, grew 176.5% (yoy) with 1.89 million borrowers, contributed 11.5% of total micro loan NPL decreased from 3.06% in September 2010 to 2.22% in September , , , , , , , Q Q Outstanding Borrower

25 Micro Banking Exploring the opportunities Source of low cost fund and fee based income Tapping low cost fund - Increasing service quality through IT utilization (i.e. EDC in Teras BRI, complete features of ATM) - Product development, i.e. Simpedes Saving Plan, Simpedes Gold, Simpedes for Business - Marketing communication through i.e. Simpedes Folks Festival held locally, rural event sponsorship - Micro deposit grew 22.09% dominated 89.67% by low cost fund Micro Deposit Composition (%) Generating Fee Based Income - Introducing e-banking services to micro customer (ATM, SMS banking, phone banking) to increase fee based income as well as lower operating expenses - Fee-based income in micro grew strongly gy 44.19% Fee-based Income (IDR billion) Q Q g = 44.19% (YoY) Current Account Saving Time Deposit Q Q

26 Small and Medium Business Toward the Path of Recovery 25

27 Small and Medium Strengthened loan origination and monitoring Loan approval Measures Previous In Process Minimum period of loan increase facility >Rp2 billion can be approved individually More than 6 month All loan >Rp2 billion approved by committee More than 1 years Maximum size of loan increase Can be > original loan size Maximum 50% of original loan size Resident Auditors No Resident Auditor for Small & Medium business One Resident Auditor in every branch Span of Control Number of restructuring program One Deputy Regional Manager Supervise > 8 branches No limit, depend on the borrowers business prospect One Deputy Regional Manager Supervise max. 8 branches Max 2 times 26

28 Small and Medium Steps to maintain loan quality Remedial Steps Proactive Steps Limiting loan expansion for Loan Officer with NPL > 5% Sanction for non-performed Loan Officer Special task force deployment in branches that contribute highest NPL Routine monitoring The performance of managers and Loan Officers of high NPL branches/sub-branches are based on NPL resolution Improving Loan Officer skill & knowledge through a continuous training programs: Regular training : basic knowledge, knowledge enrichment & refreshing in current issues and policies Non regular training : business game, business profile and crash program Mentoring program for new Loan Officer New Loan Officer evaluation is based on loan quality as well as the productivity rather than based only on total outstanding of loan being achieved Reviewing loan approval authority Developing monitoring system for Loan Officer through accessible daily report monitoring. a e based o eso u o e oa O ce e a ua o s based o oa 27

29 Corporate Loans 28

30 Corporate Loans Optimizing resources, capturing opportunities By Enterprise Ownership By Currency Forex 34.62% IDR 65.38% BRI pursue this corporate segment due to: High cross sell potentials, Trickle down effect opportunities Third party fund placement optimizing Higher yield than SBI SOE Loan composition increase to 61.36% of total corporate loan. Lower risk and capital efficiency are the reason focus on SOE loan Rupiah loan still dominates, contributing 65.83% of total corporate loan Note: FY 2010 & Q figures are PSAK 50 & 55 compliant Numbers stated in this presentation are bank only By Economic Sector Mining 19.25% Services 9.48% Others 9.99% Transportation & Communication 4.44% Electricity, Gas & water 18.49% Agriculture 15.47% Social Services 0.25% Manufacture 13.52% Trading, Hotel & Restaurant 2.48% Construction 6.63% 29

31 Fee based Income 30

32 Fee Based Income Managing the high growth Fee-based income growth Fee-based income composition Total Others 3.79% 25.05% Q % 3.79% 3.13% 3.12% 64.26% Credit Card 10.14% 11.17% Trade Finance Loan Adm. Fee ATM Related Fee Deposit Adm. Fee 39.11% 20.91% 11.89% 30.70% 0.00% 22.50% 45.00% 9.29% Deposit Adm. Fee ATM Related Fee Loan Adm. Fee Q Trade Finance 3.69% 3.81% 2.76% 3.47% 10.80% 67.16% Credit Card Payment Service Others Fee-based income grew 25.05% (yoy) and reached IDR 2.43 trillion in Q % 31

33 Human Capital 32

34 Human capital - Enabler for future growth Recruitment Fulfilling the future need HR Development Increasing the competencies Management trainees: preparing future leader Age - Composition Loan Officers: increasing the capacity Resident Auditor: providing better supervision < % 6.98% 40 - < % Training: in-house (7 training centers) & external (top training providers) Higher education: MBA or master degree at top universities in US,UK, or Australia 30 - < % 20 - < % Career & Succession Plan Offering clear & wide career opportunities Competency-based & performance-based career promotion Talent pool: provide high performer with fast track career Education - Composition High school 23% Graduate 3% Wealth & Benefit Providing competitive benefit (above the median) Number Performance-based of employee bonus, incentive & salary increase Health benefit: unlimited coverage Differentiate bonus/incentives between business & support unit Diploma 11% Undergraduate 63% 33

35 Supporting Material 34

36 Banking Industry - Solid and Keep Growing 35

37 Indonesia Banking Industry A high growth potential with strong fundamental Indonesia Banking Industry: 2008 vs % Loan to GDP 26.4% 27.5% BI rate 9.25% 6.5% CAR 16.76% LDR 74.58% 82.21% NPL 3.20% 2.77% Asset Rp2,310 trillion Rp3,253 trillion High Potentials: A low loan to GDP ratio of 27.5% providing huge potential to grow for banking Industry Export revenue repatriation regulation, provide another business opportunities for banks. Loan Rp1,308 trillion Rp2,302 trillion Supported by a favorable banking industry condition: Declining interest rate provide a favor condition Deposit Rp1,753 trillion Rp2,460 trillion for the industry growth NIM 5.66% 5.89% BI decline the lower band of interest rate (from ROA 2.33% 2.98% BI rate minus 100 bps, to minus 150 bps) reflect the ease liquidity in market as well as Net Profit Rp30,608 trillion Rp57,309 trillion encourage banks to lend Source: BI, data as of Aug 11, except for Loan to GDP & BI Rate Loan composition 80% 60% 40% 20% 28.46% 28.20% 28.07% 30.39% 30.42% 30.56% 30.79% 19.01% 18.58% 19.57% 20.72% 19.74% 19.86% 20.86% 52.53% 53.22% 52.36% 48.89% 49.85% 49.58% 48.35% More ready facing the turmoil Compare to that of in 2008, Indonesia banking industry is in an improving position, reflected in i.e.; stronger capital condition, better loan quality, higher asset turn over, as well as increasing net profit Investment loan grew strongly 30.11% will bring more multiplier effect to economy while consumer loan composition increase gradually in-line with the middle income class increase in Indonesia, 0% Aug-10 Aug 11 Source: BI Working Capital Investment Consumer Loan 36

38 BRI - Financial Performance 37

39 Sources of Income IDR Billion Interest Income contributed 89.70% of total revenue Fee & Other Operating Income IDR Billion Note: FY 2010 & Q figures are PSAK 50 & 55 compliant Numbers stated in this presentation are bank only 38

40 Sources of Interest Income Interest Income, Interest Expenses and NIM Interest Income Interest Expense Net Interest Margin NIM(%) Q Q Source of Interest Income IDR billion Interest income from loans contribute 87.48% of total interest income (or 78.47% of total income) Note: FY 2010 & Q figures are PSAK 50 & 55 compliant Numbers stated in this presentation are bank only 39

41 Other Operating Expenses IDR Billion Note: FY 2010 & Q figures are PSAK 50 & 55 compliant Numbers stated in this presentation are bank only 40

42 Loan Distribution By Regional Office By Region Banda Aceh Bandung 2% 7% Banjarmasin 4% Denpasar Yogyakarta Jakarta 5% 30% Jayapura 2% Malang 6% Pekanbaru 2% Makassar Non- Java 39.66% Java 60.34% 6% 7% Surabaya 6% Semarang 5% Palembang 7% Padang 2% Manado 5% Medan 5% Loan disbursement in Java contributes 60.34% of total loan Note: FY 2010 & Q figures are PSAK 50 & 55 compliant Numbers stated in this presentation are bank only 41

43 Balance Sheet consolidation*) IDR Billion *) BRI and its subsidiary (Bank BRI Syariah and Bank Agro) Note: FY 2010 & Q figures are PSAK 50 & 55 compliant 42

44 Income Statement consolidation*) IDR Billion *) BRI and its subsidiary (Bank BRI Syariah & Bank Agro) **) Annualized & stock split adjusted Note: FY 2010 & Q figures are PSAK 50 & 55 compliant 43

45 Others 44

46 The Most Extensive and Largest Networks Regional Office Distribution RO Banda Aceh RO Medan RO Pekanbaru RO. Banjarmasin RO. Makassar RO. Manado RO. Papua Papua RO. Padang RO. Palembang RO. Semarang RO. Surabaya & Malang Regional Offices Branch Offices RO. Jakarta 1, 2, and 3 RO. Yogyakarta RO. Bandung RO. Denpasar Sub-Branch Offices Cash Counter *Total working units are including 3 overseas offices BRI Unit Teras BRI 45

47 E-channel Expansion Number of E-Channel To serve customers 24 hours a day, 7 days a week, BRI develops its electronic channel, i.e. ATM, EDC (Electronic Data Capture), KiosK, and Cash Deposit Machine. Number of BRI ATMs increased 1,504 machine or 28.54% (yoy) BRI also has cooperation with ATM Bersama, ATM Prima, ATM Link, Cirrus and Maestro 46

48 Millions Shareholders & Stock Performance Stock Price: Trend Price 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Volume Dec 03 Mar 04 Jun 04 Sep 04 Dec 04 Mar 05 Jun 05 Sep 05 Dec 05 Mar 06 Jun 06 Sep 06 Dec 06 Mar 07 Jun 07 Sep 07 Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 volume Price Shareholders Composition *) percentage from public holding 47

49 Ratings BRI Rating Country Rating 48

50 PT BANK RAKYAT INDONESIA (Persero) Tbk. Investor Relations 20 th floor BRI I Building Jl Jendral Sudirman Kav Jakarta Indonesia Phone : /09, /79 Fax. : Website : ir@bri.co.id Disclaimer: This report has been prepared by PT Bank Rakyat Indonesia (Persero) Tbk (Bank BRI) independently and is circulated for the purpose of general information only. It is not intended to the specific person who may receive this report. The information in this report has been obtained from sources which we deem reliable. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this report constitute our judgmentasofthis date and are subject to change without prior notice. We disclaim any responsibility or liability without prior notice of Bank BRI and/or their respective employees and/or agents whatsoever arising which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither Bank BRI and/or its affiliated companies and/or their respective employees and/or agents accepts liability for any errors, omissions, negligent or otherwise, in this report and any inaccuracy herein or omission here from which might otherwise arise.