PT BFI Finance Indonesia Tbk. 1Q 2018 Results. April Analyst Briefing

Transcription

1 PT BFI Finance Indonesia Tbk 1Q 2018 Results April 2018 Analyst Briefing

2 1Q18 Key Highlights Strong growth; robust asset quality; improved Net Interest Spread & exceptional PAT surge Growth 1Q18 new booking reached Rp4,161 bn, increase 31.4% YoY on backed by NDF Car, DF Used Car, Mcy and Heto Total managed receivables grows 24.6% YoY to Rp16,870 bn, while on net receivables increased by by 32.1% to Rp 16,327 bn due to declined JF facilities Yield Portfolio increases 18 bps YoY to 20.71% supported by larger proportion of higher yield portfolio Asset Quality 1Q18 NPL ratio stood at 1.00% from 1.01% YoY due to continued vigilance in risk management and collection. COC ratio increased to 2.06% from 1.58% YoY, in line with increase in NCL from 0.95% to 1.24% Funding Cost of fund decrease 146bps YoY from 10.45% to 8.99%, as a result of credit rating upgrade (by Fitch Ratings) and lower interest environment Profitability 1Q18 Net Interest Spread improved by 163 bps from 10.09% to 11.72% yoy, 1Q18 PBT reached Rp441 bn, 38.2% YoY Growth, backed by Net revenue growth of 34.6% and offset by increased in COC 61.0% and opex 26.2%, Positive Jaws ratio of 8.3%, vs 6.4% in 1Q17. 1Q18 PAT reached Rp351 bn, 37.8% YoY Growth backed by normalized tax rate of 20%

3 1Q18 Key Highlights (continued) Latest update Total o/s outlets by end of 1Q18: 356, increased 46 from 310 in 1Q17. New outlets opened in 1Q18 are 11 kiosks and 4 sharia kiosk; and closing 1 outlets (1 branch in Sungai Liat). Bonds phase IV in 2018 dated 6 March 2018 amounted to Rp2,165 bn, interest rate 6.40% (tenor : 370 days) to 7.60% p.a. (tenor : 3 years). Establishment of digital subsidiary PT Finansial Informasi Teknologi (FIT) operating license under OJK review Set up Sharia business unit (UUS) in 4Q17 and received business operation approval from OJK in Feb-18

4 1Q 2018 Balance Sheet (Proforma) Highlight Successfully sustaining business growth in Non-Dealer Financing 4W,2W and HETO In Rp bil (unless otherwise stated) 1Q18 1Q17 YoY FY17 FY16 YoY New Bookings 4,161 3, % Driven by Non-Dealer 4W, 2W and HETO bookings 14,341 10, % Managed Receivables^ 16,870 13, % growth 15,936 13, % Total Net Receivables 16,327 12, % Higher growth vsmanaged 15,352 11, % Total Assets 17,833 13, % rec. is due to declining JF 16,483 12, % Total Debt 11,692 8, % 10,728 7, % Total Proforma Debt^ 12,105 9, % New bank loans drawdown 11,252 8, % Total Equity 5,257 4, % and issuance of new Bond 4,904 4, % * All absolute figures have been rounded to the closest Rp billion and therefore may have some discrepancies with percentage calculations ^ Includes channeling and joint financing transactions Quarterly Bookings Trend(1Q16-1Q18) 2,337 2,874 2,458 3,073 3,166 3,610 3,475 4,090 4,161 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

5 Profit & Loss (Proforma) Highlights Continued portfolio growth and Net Interest Spread enhancement play a critical role for improving profitability In Rp bil 1Q18 1Q17 YoY FY17 FY16 YoY (unless otherwise stated) Strong Non Dealer Financing Interest Income % income 2,967 2, % Yield improvement of 18 bps YoY Financing Cost % 988 1, % Net Interest Income % 1,979 1, % Fees & Other Income % 1, % In line with new booking growth Net Revenue % 3,069 2, % Operating Expenses % Manageable Increase 1,350 1, % Operating Income % driven largely by business volume growth 1,719 1, % Cost of Credit % % PBT % COC (in% to ANR) increased 1,488 1, % PAT % from 1.58% to 2.06% mainly driven from DF Used and 1, % motorcycle * All absolute figures have been rounded to the closest Rp billion and therefore may have some discrepancies with percentage calculations

6 Key Ratios Improvement in all key ratios 1Q18 1Q17 YoY Improvement in both FY17 FY16 YoY Net Interest Spread 11.72% 10.09% 163 bps yield and CoF 10.64% 8.85% 178 bps Cost to Income 42.31% 45.11% 280 bps 44.00% 47.00% 300 bps COC / Avg Rec. 2.06% 1.58% 48 bps 1.61% 1.80% 19 bps JAWS 8.3% 6.4% 190 bps 8.3% -0.4% 870 bps ROAA (before tax) 10.37% 9.95% 42 bps 10.33% 8.68% 165 bps ROAA (after tax) 8.25% 7.94% 31 bps Strong growth in PAT 8.24% 6.76% 148 bps ROAE (after tax) 27.63% 23.29% 434 bps yoy 25.61% 19.37% 624 bps NPL * 1.00% 1.01% 1 bps StableNPL due to prudent 0.95% 0.91% 4 bps Debt / Equity 2.2x 1.8x 40 bps risk mgt& shorter WO cycle 2.2x 1.8x 40 bps * Defined as Pastdue >90 days, Calculated from total managed receivables (including off B/S receivables)

7 Ability to build a more robust balance sheet Sustainable loan and revenue growth over the years backed by more profitable asset mix Rp bil 20,000 15,000 10,000 5,000 0 CAGR B: 13% R: 14% 8,652 9,295 Managed Receivables Bookings vs Receivables Growth(2013-1Q18) 10,058 10,743 14,341 9,570 11,220 12,229 13,026 15, Bookings 3,166 4,161 Bookings 13, % 16,870 1Q17 1Q18 Loan book shows improvement over the years able to improve quality and tenor of loans booked, resulting in consistentreceivables growth compared to Bookings CAGR growth yoyhigher than the industry Rp bil 5,000 4,000 3,000 2,000 1,000 0 Revenue CAGR 21% Revenue Growth(2013-1Q18) 1,890 2,299 2,831 3,227 4, % 901 1,176 1Q17 1Q18 Consistently strong growth in Revenue as a result of robust balance sheet Shows ability to maximise income generation from assets

8 Stable profitability over the years Still one of the most profitable multifinance companies, with ROA and ROE much ahead of the industry Rpbil 1,400 1,200 1, PAT Growth CAGR 19% , ROA vs Industry 10.0% 9.3% 9.0% 9.0% 8.0% 8.2% 7.8% 8.0% 7.1% 7.0% 6.0% 4.9% 5.0% 5.0% 3.8% 3.9% 4.0% 4.0% 3.4% 3.0% 2.0% 1.0% 0.0% Source: Company, OJK 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% ROE vs Industry 17.1% 15.1% 16.8% 16.2% 18.8% 18.2% 17.5% 13.9% 24.2% 11.1% 12.0% 12.3% 0.0% Source: Company, OJK PAT growth in spite of slowing economy Continued efficient OPEX management in spite of aggressive expansion over the years * 2017 ROA calculated using PBT/Assets, using Dec 17 data for industry One of the highest ROA companies in the industry Consistently outperformed industry * 2017 ROE calculated using PAT/Equity, using Dec 17 data for industry ROE improving over the years

9 Asset quality under control Well managed balance sheet with low NPLs; Lower write-off than its peers 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% NPL Trend (2013-1Q18) 3.37% 2.55% 1.74% 1.62% 1.56% 1.37% 1.39% 1.34% 1.43% 1.05% 1.09% 0.91% 1.01% 0.99% 1.04% 0.78% 0.84% 0.67% 1.38% 1.48% 1.33% 0.91% 0.95% 1.00% Q % 2.00% 1.50% 1.00% 0.50% 0.00% Write-Offs (2013-1Q18) 2.15% 1.83% 1.58% 1.69% 1.38% 1.54% 1.38% 0.89% 1.23% 0.99% 1.10% 0.64% Q18 NPL % Non-Dealer Dealer Other Gross Write-Off % Net Write-Off %

10 Strong capital base More diversified capital structure, resulting in better management of borrowing cost and stable NIM 100% Source of Funding (2013-1Q18) External Funding Sources 90% 80% 70% 60% 50% 40% 30% 20% 10% 3,363 3,567 4,019 4,255 4,904 5, ,212 2,484 2,139 1,259 3,909 4,839 1,682 2,965 1,454 1,622 5,637 6,819 3,172 3,933 4,691 6,854 7% 21% 24% 1% Bonds & MTN 40% JF 3% Borrowings IDR 32% Borrowings USD 25% 0% Q18 Bank borrowings Bonds & MTN JF Equity Total : Rp12,105 billion Increasinglylarger proportion of bonds issued, taking advantage of improved pricing climate for bonds since last year Decline in Joint Financing contribute to better funding cost Corporate rating upgrade by Fitch Ratings to AA-(idn) has improved BFI credit profile and CoF Adequate facilities in pipeline to support further business expansion

11 Asset Composition Total NDF portfolio (4W + 2W) increased from 53% in 1Q17 to 56% in 1Q18, while NDF booking reached 66% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Booking Composition (1Q17 vs 1Q18) 2% 1% 11% 15% 13% 55% 15% 51% 17% 16% 0% 2% 2% 1Q17 1Q18 Dealer New 4W Dealer Used 4W Non Dealer 4W Non Dealer 2W Total Leasing Property 100% 90% 80% 70% 60% 50% 40% 30% Managed Receivables Composition (1Q17 vs 1Q18) 2% 2% 13% 15% 7% 46% 9% 47% 20% 23% 23% 10% 0% 9% 4% 1Q17 1Q18 Dealer New 4W Dealer Used 4W Non Dealer 4W Non Dealer 2W Total Leasing Property

12 Business Distribution and Branch Network as at Mar-18 Current expansion focused on Java 18% Sumatera 63 outlets 20% 37% 9% Kalimantan 33 outlets 11% 49% 18% Sulawesi and East 65 outlets 14% 26% 55% Java & Bali 195 outlets 55% 28% Total 356 Outlets % Outlets by Region % Managed Receivables 1Q17-18 Bookings growth