2005 First Quarter Performance

Transcription

1 Investor Newsletter True Local Bank. World Class Standard 08 th Edition Financial Highlights 2005 First Quarter Performance Net Income (Rp billion) (year to date) PT Bank Internasional Indonesia Tbk (BII) booked first quarter profits of Rp billion or Rp 4.6 per-share. The Bank continued to focus on sourcing lower cost of funds through saving and current accounts and where possible reduce interest rates. Interest expense was Rp 42.0 billion lower at Rp billion, resulting in net interest income of Rp billion. Net profit of Rp billion for the first quarter 2005 is flat compared to the same period last year. Income in first quarter 2004 was significantly boosted by one off profits of the sale of Government Bonds. Net Interest Income (Rp billion) (year to date) Loans grew 31% to Rp 14,650 billion, driven by rapid growth in Consumer loans. Consumer loans grew 96% on the back of housing and automotive loans. Meanwhile, Commercial/SME loans posted a growth of 34%. Total assets grew 9% to Rp billion and as at the end of the first quarter of 2005, earning assets represented 85% of total assets. During the same period, the amount of classified earning assets (category 3 to 5) decreased from Rp billion to Rp billion and gross NPL declined from 7.04% to 3.35%. Net Interest Margin (%) Page 1

2 Million Rupiah, % Interest Income (%) Loans (Rp trillion) March March Interest revenues 723, ,205 Interest expenses 307, ,670 Net interest revenues 415, ,535 Other operating revenues 214, ,490 Net income 220, ,402 Total assets 36,946,959 33,911,553 Loan gross 14,650,176 11,214,153 Government Bonds 11,448,572 15,869,375 Marketable securities 2,363,488 1,224,393 Placement with other banks 2,949,308 1,075,205 Total liabilities 32,498,400 30,337,849 Saving deposits 6,068,162 4,956,906 Demand deposits 10,287,246 8,992,208 Time deposits 13,068,956 13,642,761 Total equity 4,448,559 3,573,704 Loan to deposit ratio 49.11% 39.87% Non-performing loan gross 3.35% 7.04% Non-performing loan net 2.29% 3.04% Capital adequacy ratio 21.23% 23.46% Continued decline in interest expenses. Significant decreases in interest rates, along with the changed composition of third party funds, have helped decrease interest expenses to Rp billion. However, NII remained flat due to lower yields on loans, and lesser interest income from high yielding Government Bonds. Interest Income Quarter I 2005 Quarter I 2004 Government Bonds 30.5% 47.9% Credit 58.3% 46.4% Placement with other banks 5.1% 2.0% Marketable Securities 5.6% 3.2% Syariah 0.5% 0.5% NPL Gross (%) Rising fee based income. BII posted fee income of Rp billion, an increase of 20% from last year. The fee income is mainly derived from commissions and fees including gains from foreign exchange transactions, income generated from saving and credit card administration, commission from sale of mutual funds, commission from custody services for mutual funds and commissions from Western Union. Improved efficiency on promotional expenses. BII carried out a comprehensive evaluation on the effectiveness of its promotional and marketing programs. The result is reflected by a Rp 6.3 billion reduction in promotional expenses to Rp 24.6 billion. Personnel expenses rose by Page 2

3 30% due to salary adjustments, recruitment of professionals to support the implementation of our strategy and implementation of a performance and competency based remuneration policy. The 18% increase in general and administrative expenses reflected the investment committed to strengthen BII s infrastructure, including the developments of IT, MIS and Risk Management. Total Assets (Rp trillion) Increase in earning assets. Total assets grew from Rp 33,911.6 billion to Rp 36,947.0 billion. Earning assets, comprising of loans, government bonds, marketable securities (including SBI s) and placement with other banks climbed from Rp 29,913.2 billion to Rp 31,466.4 billion. Government bonds are 31% of total asset and over 98% of government bonds bear variable coupon-rates and therefore the bank is well positioned to face the upward trend in interest rates. Loans grew 31%. BII s loans stood at Rp 14,650.1 billion as at the end of March 2005, an increase of 31% from Rp 11,214.2 billion last year with the Trading and Manufacturing sectors, representing 17.2% and 16.4% of the loan portfolio, respectively. Loan Composition (%) Consumer loans grew 96%, on the back of a 127% and 92% growth in housing and automotive loans, respectively. This growth was supported by the successful implementation of our credit scoring system for Consumer loans. Commercial/SME loans grew 34%, resulting in a loan composition of 30.7% Corporate loans, 31.6% Commercial/SME loans, and 37.7% Consumer loans as at 31 March Enhanced loan quality. As a corollary of the loan growth the LDR increased from 39.87% to 49.11%. While gross NPL declined from 7.04% to 3.35% and the percentage of performing loans increased from 80% to 89%. Growing third party funds. BII s strong customer base is reflected by a 7% increase in third party funds to Rp 29,424.4 billion. The table below depicts the comparisons between this year s and last year s amounts and average interest rates of each product: Third-party Funds (Rp trillion) Product Quarter I 2005 Quarter I 2004 Time Deposits % 6.8%* % 6.2%* Saving Deposits % 3.4% % 4.6% Demand Deposits % 2.6% % 3.8% Note: * 1-month time deposits Total (Rp billion) Total % of third party fund Rupiah average interest Total (Rp billion) Total % of third party fund Rupiah average interest At the end of December 2004, BII held 3.07% of total public deposits in the banking industry. Page 3

4 Deposit Composition (%) BII Stock Performance (BNII) BII share price rose by 82% from 1 March 2004 to 31 March 2005, significantly exceeding the JSX composite index increase of 42%. The share price hit a high of Rp 215 and average share price was Rp 155. The highest trading volume was 1,559 million shares with average trading volume of 119 million shares. BII Share Price & BII Transaction Volume Total Liabilities (Rp trillion) Equity (Rp trillion) Important Events during 1 st Quarter of 2005 CAR (%) BII donated Rp 3 billion to the victims of the tsunami in Aceh, through the Bank Indonesia (BI) Banks For Aceh and North Sumatera program. Temasek Holdings and Kookmin Bank also participated in this program and provided donations through BII. In line with BII s effort to enhance efficiency of its business processes and to focus on the core businesses, the Bank appointed Tunas Rental Division of PT Tunas Financindo Sarana to manage its operational vehicles. Page 4

5 The Bank received The 2004 Most Active OTC FIS Participants for Government Bonds Trading in Bank Category from Surabaya Stock Exchange (SSX). BII and PT Nestlé Indonesia (Nestlé) signed an agreement for Distributor Financing cooperation. Distributor Financing is a specifically packaged to suit the unique needs of Nestlé s distributors and it is another example of BII s adaptability and unique customer service capability. BII held an Extraordinary General Meeting of Shareholders (EGM) on 21 February 2005 to obtain approval on the change of compositions of the Board of Directors and Board of Commissioners. The EGM appointed Yong-Kook Oh and Dong-Won Kim, as commissioners and Prem Kumar, Clemente Escano, Jose Maria J. Marigomen and Fransiska Oei as directors. The resignations of Yoon Myung Han and Judi Prayudi Sudjono from the Board of Directors were also noted. The Bank received 3 awards from MasterCard Indonesia (MCI) which are The 2 nd Largest Issuing of MasterCard, Certification 2 nd Largest Issuing of MasterCard and Data Integrity Award Excellent in Processing Accuracy for Authorization for achievement of 500,000 credit cards in In order to support the development of micro, small and medium enterprises (UMKM) and to support the government program of 2005 Micro Financing Year BII in cooperation with PT Askrindo provides Bank Guarantee (BG) issuance facilities underwritten by PT Askrindo. BII appointed Misys Opics and Misys Meridian to provide integrated Treasury banking solutions, to support the Bank s business development that requires more complex and a wider variety of products. The appointment also reflects the Bank s strategy to upgrade its business operations and customer services. BII Call Center received 2005 Call Center Award for service excellence organized by the Center for Customer Satisfaction & Loyalty (CfCSL). Selection criteria for this award included accessibility, systems, people s soft-skill and people s hard-skill. The Extraordinary General Meeting of Shareholders (EGM) on 29 March 2005 approved the Bank s plan to invest in PT Wahana Ottomitra Multiartha Tbk. (WOM). The investment in WOM ia a key step in the Bank s plan to achieve growth in the consumer loan sector. Through this acquisition, the Bank expects to enhance its customer base and leverage this base to cross-sell other products. The Annual General Meeting of Shareholders (AGM) approved the allocation of 2004 s net profit of Rp 822 billion for dividend payment to shareholders, reserve purposes and retained earnings. About 30% of the net income, or approximately Rp billion is allocated for dividend distribution which will be carried out upon receipt of approval from the Government Guarantee Program Administration Unit (UP3), Ministry of Finance. Page 5

6 Balance Sheets CONSOLIDATED BALANCE SHEET PT BANK INTERNASIONAL INDONESIA, Tbk AS OF MARCH 31, 2005 AND 2004 (in million Rupiah) Assets Liabilities & Equity No. Descriptions Mar 31, 2005 Mar 31, 2004 No. Descriptions Mar 31, 2005 Mar 31, Cash 685, , Placements with Bank Indonesia a. Current accounts with Bank Indonesia 1,863,053 1,306,112 b. Certificates of Bank Indonesia 54, ,158 c. Others 549, , Current accounts with other banks a. Rupiah 102,842 4,526 b. Foreign currencies 215, , Placements with other banks a. Rupiah 1, ,750 placements with other banks -/- (1,038) (2,243) b. Foreign currencies 2,947, ,455 placements with other bank -/- (28,334) (10,419) 5. Marketable securities a. Rupiah 174, ,065 i. Trading 37,725 34,723 ii. Available for sale 119,627 90,996 iii. Held to maturity 17,513 2,346 marketable securities -/- (1,678) (1,241) b. Foreign currencies 2,188,623 1,096,328 i. Trading 121, ,882 ii. Available for sale 1,021,765 60,551 iii. Held to maturity 1,045, ,895 marketable securities (21,735) (12,088) 6. Securities sold under agreements to repurchase 355, Government Bonds i. Trading 118,826 ii. Available for sale 2,551, ,844 iii. Held to maturity 8,896,724 14,838, Reverse repo a. Rupiah reverse repo -/- b. Foreign currencies reverse repo -/- 9. Derivatives receivable 13,655 4,400 derivatives receivable -/- (135) (44) 10. Loans a. Rupiah 11,517,711 7,768,699 Related parties 16, ,640 Non-related parties 11,501,091 7,633,059 loans -/- (242,364) (255,462) b. Foreign currencies 3,132,465 3,445,454 Related parties 3,698 3,698 Non-related parties 3,128,767 3,441,756 loans -/- (122,098) (426,213) 11. Acceptances receivable 421, ,887 acceptances receivable -/- (3,910) (3,371) 12. Investments in shares of stocks 18,596 18,532 investments in shares of stocks -/- (14,360) (14,157) 13. Interest receivables 203, , Prepayments 179, , Prepaid tax 3,485 3, Deferred tax assets 128, , Premises and equipment 1,023, ,992 Accumulated depreciation (151,691) (46,462) 18. Abadoned properties abadoned properties -/- 19. Leased assets leased assets -/- 20. Foreclosed assets 69, ,085 foreclosed assets -/- 21. Other assets 234, ,805 Total Assets 36,946,959 33,911, Demand deposits a. Rupiah 3,412,772 2,850,755 b. Foreign currencies 6,874,474 6,141, Laibilities immediately payable 583, , Savings deposits 6,068,162 4,956, Time deposits a. Rupiah 10,653,770 10,845,698 i. Related parties 1, ii. Non-related parties 10,652,395 10,845,498 b. Foreign currencies 2,415,186 2,797,038 i. Related parties ii. Non-related parties 2,414,585 2,796, Certificates of deposits a. Rupiah 25 b. Foreign currencies 6. Deposits from other banks 598, , Securities sold under agreement to repurchase (repo) 300,267 12, Derivatives payable 7,468 3, Acceptances payable 421, , Securities issued a. Rupiah b. Foreign currencies 11. Borrowings a. Short-term loan facilities received from Bank Indonesia b. Others 552, ,592 i. Rupiah 442, ,101 Related parties Non-related parties 442, ,101 ii. Foreign currencies 110,244 80,491 Related parties Non-related parties 110,244 80, Estimated losses on commitments and contingencies 15,530 13, Lease payable 14. Accrued interest 35,385 39, Taxes payable 16. Deferred tax liabilities 17. Other liabilities 558, , Subordinated loans a. Related parties b. Non-related parties 19. Loan capital a. Related parties b. Non-related parties 20. Minority interest 21. Equity a. Paid-up capital 3,216,192 3,216,192 b. Share options 21,194 c. Additional (discount) paid capital 61,745 61,744 d. Funds for paid-up capital e. Donated capital f. Differences arising from the translation of foreign currency financial statements 111,194 96,687 g. Revaluation increment in premises and equipment h. Unrealized gains (loss) on increase (decrease) in value of available-for-sale marketable securities and Government Bonds (3,899) (26,321) i. Other comprehensive income j. Accumulated gain (losses) 1,042, ,402 Total Liabilities and Equity 36,946,959 33,911,553 Page 6

7 Income Statements CONSOLIDATED INCOME STATEMENTS PT BANK INTERNASIONAL INDONESIA, Tbk PERIOD JANUARY 1, TO MARCH 31, 2005 AND 2004 (in million Rupiah, except erarnings per share) No. Descriptions Mar 31, 2005 Mar 31, 2004 Operating revenues and expenses 1. Interest revenues, margin, and revenues sharing 1.1. Interest earned a. Rupiah 621, ,597 b. Foreign currencies 87,366 65, Margin and revenues sharing 1.3. Commissions and fees a. Rupiah 13,523 10,297 b. Foreign currencies 1,897 5,369 Total interest revenues, margin, and revenues sharing 723, , Interest expenses, bonus, and expenses sharing 2.1. Interest incurred a. Rupiah 290, ,427 b. Foreign currencies 17,397 25, Bonus and expenses sharing 2.3. Commissions and fees Total interest expenses, bonus, and expenses sharing 307, ,670 Net interest income, margin, and revenues sharing 415, , Other operating revenues 3.1. Commissions and fees other than from loans 62,240 48, Gain on foreign exchange transactions 19,864 25, Increase in value of marketable securities and Government Bonds 76, Others 109,816 85,823 Total other operating revenues 191, , (Reverseal of provision) Provision for possible losses on earning assets (67,382) 55, Provision (reversal of provision) for estimated losses on commitments and contingencies 672 (1,718) 6. Other operating expenses 6.1. General and administrative 161, , Personnel 205, , Decrease in value of marketable securities and Government Bonds 15, Losses of foreign exchange transactions 6.5. Promotion 24,634 30, Other expenses 52,863 58,058 Total other operating expenses 459, ,889 Profit (loss) from operations - net 214, ,490 Non-operating revenues and expenses 7. Non-operating revenues 9,729 2, Non-operating expenses 3,869 2,457 Non-operating revenues (expenses) - net 5,860 (88) 9. Extraordinary gain/loss 10. Income (loss) before corporate income tax 220, , Corporate income tax 12. Deferred income tax 13. Net income (loss) 220, , Minority interest 15. Accumulated gains (losses) at beginning of period 821, Dividend 17. Others 18. Accumulated gains (losses) at end of period 1,042, , Earnings per-share Page 7

8 Commitments and Contingencies CONSOLIDATED COMMITMENTS AND CONTINGENCIES PT BANK INTERNASIONAL INDONESIA, Tbk AS OF MARCH 31, 2005 AND 2004 (in million Rupiah) No. Descriptions Mar 31, 2005 Mar 31, 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 4,999,880 3,337,661 b. Foreign currencies 717, , Outstanding irrevocable L/C 455, , Others Total commitment liabilities 6,172,410 4,125,663 TOTAL COMMITMENTS - NET (6,172,410) (4,125,663) CONTINGENCIES Contingent receivables 1. Guarantees received a. Rupiah 1,200 b. Foreign currencies 27,174 41, Past due interest revenues a. Rupiah 81,028 63,081 b. Foreign currencies 26,225 18, Others Total contingent receivables 135, ,494 Contingent liabilities 1. Guaranteed issued a. Bank Guarantees Rupiah 243, ,176 Foreign currencies 61,576 95,703 b. Others 2. Outstanding revocable L/C 3. Others Total contingent liabilities 305, ,879 TOTAL CONTINGENCIES - NET (169,690) (150,385) 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 True Local Bank. World Class Standard Page 8