2004 Full Year Performance

Transcription

1 Investor Newsletter True Local Bank. World Class Standard 07 th Edition Financial Highlights 2004 Full Year Performance Net Income (Rp billion) PT Bank Internasional Indonesia Tbk. ( Bank ) reported net income of Rp billion for the year ending December 31, 2004, more than two-and-a-half times the profit recorded as at December 31, Substantial increase in net operating income from Rp billion to Rp billion is a result of increase in net interest income and other operating revenues. Net interest income rose from Rp 1,019.4 billion to Rp 1,646.6 billion on the back of loan growth and improvement in interest rate spreads. Loans grew by 28.6% and Net Interest Margin (NIM) showed significant improvement from 3.10% to 5.20%. Other operating revenues grew from Rp billion to Rp 1,065.6 billion and contributed 39% of the total operating income in This was driven by gains on the sale of marketable securities and government bonds, higher revenues from commissions and fees and gain on foreign exchange transactions. Net Interest Income (Rp billion) The Bank s improving profitability is reflected by the increase in return on equity (ROE) and return on assets (ROA), which has improved from 16.99% and 0.76% as at the end of 2003 to 32,19% and 2,35% as at the end of 2004, respectively. Million Rupiah, % December December Interest income, margin, and profit sharing - net 1,646,561 1,019,433 Other operating revenues 1,065, ,358 Operating revenues - net 810, ,563 Net income 821, ,089 Total assets 36,077,167 34,745,614 Loan - gross 13,161,072 10,231,623 Government Bonds 11,586,488 17,187,524 Total liabilities 31,866,367 31,368,962 Total equity 4,210,800 3,376,652 Non-performing loan - gross 4.01% 6.20% Non-performing loan - net 2.77% 2.26% Loan to deposit ratio 43.62% 35.03% Net interest margin 5.20% 3.10% Return on assets 2.35% 0.76% Return on equity 32.19% 16.99% Capital adequacy ratio 20.89% 23.39% Net Interest Margin (%) Page 1

2 Interest Income (%) Net interest income grew 61.5%. Net interest income rose from Rp 1,019.4 billion to Rp 1,646.6 billion, driven by credit expansion and lower cost of funds as rates trended lower, combined with an improved funding mix, skewed toward cheaper funds. Contribution of interest income earned from credit rose from 34.1% in 2003 to 52.9% in 2004, while interest expense decreased 43.7% from Rp 2,323.8 billion to Rp 1,309.1 billion. The table below illustrates the source of interest income and expenses: Interest Income Dec 2004 % % Interest Expenses Dec 2003 Dec 2004 Dec 2003 Government Bonds Deposits Credit Savings Placement with other banks Current Accounts Marketable securities Borrowings Syariah Syariah Call Money Loans (Rp trillion) Other operating revenues rose 51.7%. Other operating revenues rose from Rp billion to Rp 1,065.6 billion. Revenue from increase in value of marketable securities and government bonds accounted for 31.9% of other operating revenues 2004, while commissions and fees other than from loans contributed 20.0%. Foreign exchange transaction income and others made up the remaining revenues. NPL Gross (%) Other operating expenses increased 31.5%. The other operating expenses increased from Rp 1,446.2 billion to Rp 1,902.1 billion primarily due to higher salaries and employee benefits and General and Administrative expenses. Salaries and employee benefits grew in line with the implementation of the Bank s strategy of recruiting new professionals and the implementation of performance based remuneration. Investments in infrastructure of the Bank was the main reason for the growth in general and administrative expenses of 11.7%. The Bank s infrastructure development encompass system enhancements in IT, MIS and Risk Management. It is also worth noting, that the increase in operating expenses was supported by a substantial increase in operating income, resulting in an improved operating expenses to operating income (BOPO) ratio from 93.29% to 79.65%. Assets increased and repositioned. Total assets increased from Rp 34,745.6 billion to Rp 36,077.2 billion. Repositioning of assets to higher-yield earning assets, primarily loans was also undertaken. Gross Page 2

3 loans increased 28.6%, from Rp 10,231.6 billion to Rp 13,161.1 billion, while placements in other banks (gross) grew from Rp 1,356.4 billion to Rp 4,428.9 billion. Marketable securities (gross) grew from Rp 1,292.9 billion to Rp 1,472.5 billion. The above increases were offset by a reduction in government bonds, from Rp 17,187.5 billion to Rp 11,586.5 billion. Total Assets (Rp trillion) Third party funds increased with funding mix realignment. Total third party deposits rose Rp billion, from Rp 28,657.5 billion to Rp 29,638.8 billion. Together with the increase, a funding mix realignment towards lower costing funds also took place. Savings and current accounts increased Rp 1,209.1 billion and Rp 1,154.4 billion, respectively, while time deposits reduced by Rp 1,382.2 billion. With this change, the ratio of Saving : Current Accounts : Deposit shifted from 17.0% : 29.0% : 54.0% to become 20.5% : 32.0% : 47.5%, respectively. Focusing on Consumer and Commercial/SME Loans. Growth in the loan portfolio was fuelled by Consumer and Commercial/SME Loan, which grew by 72.8% and 25.7%, respectively. Corporate loan on the other hand, grew by 5.4%. Consumer Loan growth was driven mainly by increases of 87.1% in home loan and 74.3% in auto loan. The industry sector break down is shown below. Loan Composition (%) Industry Sector December 2004 December 2003 Services 10.1% 11.7% Manufacturing 18.5% 17.5% Trading 18.4% 21.1% Agriculture and Transportation 10.0% 13.2% Construction 2.6% 4.1% Others 40.4% 32.3% Improved LDR and NPL ratios. With loans growing faster than deposits, LDR increased from 35.03% to 43.62%. Despite the rapid loan expansion, it was managed in a prudent manner, resulting in a decrease in NPL (gross) from 6.20% to 4.01%. Loan collectibility also indicated encouraging trends. Category 1 loans (Current) increased from 78.4% to 87.4% and Category 2 loans (Special Mention) dropped from 15.4% to 8.6%. Category 3-5 loans (Non Performing) also decreased from 6.2% to 4.0% of total loans. Provisions to NPL ratio, as of December 31, 2004 was 77.58%. Third-party Funds (Rp trillion) Page 3

4 Deposit Composition (%) Equity rose 24.7%. As a result of the quasi-reorganization, which eliminated the Bank s accumulated losses, and with the retained earnings, the Bank s equity increased from Rp 3,376.7 billion to Rp 4,210.8 billion. CAR for the year ended December 31, 2004 was 20.89%. BII Stock Performance (BNII) As at December 30, 2004, BII s stock closed at Rp 185 per share, representing a solid 68.2% increase in value compared to January 2, The LQ45 index increased by 39.6% during the same period. Total Liabilities (Rp trillion) The Bank s share price reflected a price to book value (PBV) of 2.10 times and price to earning ratio (PER) of times. The highest price during 2004 was Rp 195, while the lowest price was Rp 100 and the average price was Rp 145 per share. BII Share Price & BII Transaction Volume Equity (Rp trillion) CAR (%) Page 4

5 Event Highlights January. Gained ISO 9001:2000 certification from Lloyds Register Quality Assurance for conventional banking services, credit marketing and collection, BII Customer Care, Platinum Access and BII Syariah Platinum Access. March. Signed agreement with the Directorate General of Taxes to facilitate payment of land and building tax through the BII ATM network. April. Signed a strategic alliance agreement to provide transactional banking services including cash management and trade finance to the customers of Standard Chartered Bank. June. Entered a cooperation agreement with Development Bank of Singapore (DBS), enabling BII customers to access their accounts via the DBS ATM network in Singapore without additional charges. Announced cooperation with KB Data Systems (KDS), a financial IT solution company, for the development of the Bank s management information system. Held an EGM to obtain shareholder approval for an Employee Stock Option Plan & Quasi Reorganization. July. Starting the Branch Transformation Program supported by an integrated IT front end application system to improve efficiency and customer service. Launched the BII Syariah three in one charge card, debit card and ATM card, the first sharia charge card in Indonesia. August. Launched the Waqaf Investasi card, an investment product combining donation and investment instruments. September. Signed a Conditional Sales and Purchase Agreement (CSPA) with PT Wahana Ottomitra Multiartha (WOM) a leading motorcycle finance company. The CSPA is subject to regulatory approvals. Launched a funds transfer feature in cooperation with the ALTO ATM network of 14 member banks covering 717 BII ATMs and 3,300 ALTO ATMs across Indonesia. Launched the Rumah Maxima, a multipurpose loan facility backed by property assets as collateral. October. Announced the first strategic alliance for any Indonesian bank with Singapore Airlines to earn frequent flyer air miles. November. Launched the BII VISA Infinite Card. Signed a Bank Alliance Agreement with HSBC to offer fee generating cash management services across the BII network for HSBC customers. Page 5

6 Balance Sheets CONSOLIDATED BALANCE SHEET PT BANK INTERNASIONAL INDONESIA, Tbk AS OF DECEMBER 31, 2004 AND 2003 (audited) (in million Rupiah) Assets Liabilities & Equity No. Description Dec 31, 2004 Dec 31, 2003 No. Description Dec 31, 2004 Dec 31, Cash 662, , Placement with Bank Indonesia a. Current account with Bank Indonesia 1,797,631 1,460,392 b. Certificates of Bank Indonesia 766, ,004 c. Others 311,858 69, Current accounts with other banks a. Rupiah 101,383 1,288 b. Foreign currencies 179, , Placements with other banks a. Rupiah 202, ,000 b. Foreign currencies 4,226, ,415 Allowance for possible losses (46,060) (17,336) 5. Marketable securities a. Rupiah 107, ,910 i. Trading 61,988 84,645 ii. Available for sale 45,766 80,956 iii. Held to maturity 4,309 b. Foreign currencies 1,364,755 1,122,957 i. Trading 611, ,991 ii. Available for sale 332,723 63,202 iii. Held to maturity 420, ,764 Allowance for possible losses (11,706) (12,629) 6. Government Bonds i. Trading 68, ,418 ii. Available for sale 2,640,599 2,096,375 iii. Held to maturity 8,877,780 14,778, Reverse repo a. Rupiah b. Foreign currencies Allowance for possible losses 8. Derivatives receivable 17,954 6,073 Allowance for possible losses (179) (61) 9. Loans a. Rupiah 9,934,747 7,243,366 Related parties 16, ,668 Non-related parties 9,918,677 7,102,698 b. Foreign currencies 3,226,325 2,988,257 Related parties 3,733 3,749 Non-related parties 3,222,592 2,984,508 Allowance for possible losses (361,496) (605,335) 10. Acceptance receivable 392, ,364 Allowance for possible losses (3,840) (3,788) 11. Investments in shares of stocks 18,557 35,127 Allowance for possible losses (14,058) (30,870) 12. Interest receivables 202, , Prepayment 93,286 80, Prepaid tax 3,133 2, Deferred tax assets 128, , Premises and equipment 1,050, ,217 Accumulated depreciation (144,599) (17,314) 17. Leased assets Allowance for possible losses 19. Foreclosed properties 69, , Other assets 214, , Demand deposits a. Rupiah 3,258,630 2,619,190 b. Foreign currencies 6,217,364 5,702, Liabilities immediately payable 386, , Saving deposits 6,080,133 4,871, Time deposits a. Rupiah 11,218,955 12,410,631 i. Related parties 7, ,100 ii. Non-related parties 11,211,260 11,585,531 b. Foreign currencies 2,863,702 3,047,887 i. Related parties ,227 ii. Non-related parties 2,863,113 2,768, Certificates of deposits a. Rupiah 6,369 b. Foreign currencies 6. Deposits from other banks 245, , Securities sold under agreements to repurchase (repo) 8. Derivatives payable 17,568 9, Acceptances payable 392, , Securities issued a. Rupiah b. Foreign currencies 11. Borrowings a. Short-term loan facilities received Bank Indonesia b. Others 546, ,509 i. Rupiah 454, ,414 Related parties Non-related parties 454, ,414 ii. Foreign currencies 91,779 47,095 Related parties Non-related parties 91,779 47, Estimated losses on commitments and contingencies 14,639 14, Lease payable 14. Accrued interest 36,872 47, Taxes payable 16. Deferred tax liabilities 17. Other liabilities 588, , 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. Employee stock option plan 6,570 c. Additional paid-in capital 61,745 61,745 d. Donated capital e. Differences arising from the translation of foreign currency financial statements 107,945 98,715 f. Revaluation increment in premises and equipment g. Unrealized gains on increase in value of available-for-sale marketable securities and Government Bonds (3,234) h. Other comprehensive income i. Accumulated gain or losses 821,582 Total Assets 36,077,167 34,745,614 Total Liabilities and Equity 36,077,167 34,745,614 Page 6

7 Income Statements CONSOLIDATED INCOME STATEMENTS PT BANK INTERNASIONAL INDONESIA, Tbk PERIOD OF JANUARY 31 TO DECEMBER 31, 2004 AND 2003 (in million Rupiah, except earnings per share) No. Description Dec 31, 2004 Dec 31, 2003 Operating revenues and expenses 1. Interest revenues, margin, and profit sharing 1.1. Interest earned a. Rupiah 2,555,967 3,053,463 b. Foreign currencies 333, , Margin and profit sharing 1.3. Commissions and fees a. Rupiah 54,994 52,413 b. Foreign currencies 11,546 4,821 Total interest revenues, margin, and profit sharing 2,955,772 3,343, Interest expenses, bonus, and profit sharing 2.1. Interest incurred a. Rupiah 1, ,114,183 b. Foreign currencies 106, , Bonus and profit sharing 2.3. Commissions and fees Total interest expenses, bonus, and profit sharing 1,309,211 2,323,849 Net interest income, margin, and profit sharing 1,646,561 1,019, Other operating revenues 3.1. Commissions and fees other than from loans 213, , Gain on foreign exchange transactions - net 112,934 74, Increase in value of marketable securities and Government Bonds 339,753 36, Others 399, ,224 Total other operating revenues 1,065, , Provision for possible losses on earning assets and foreclosed properties 194, , Provision for estimated losses on commitments and contingencies (1,160) 3, Other operating expenses 6.1. General and administrative 771, , Personnel 704, , Decrease in value of marketable securities and Government Bonds 6.4. Losses of foreign exchange transactions 6.5. Other expenses 232, ,665 Total other operating expenses 1,902,147 1,446,228 Profit (loss) from operation - net 810, ,563 Non-operating revenues and expenses 7. Non-operating revenues 16,524 33, Non-operating expenses 11,364 39,049 Non-operating revenues (expenses) - net 5,160 (5,486) 9. Extraordinary gain/loss 10 Income (loss) before corporate income tax 815, , Corporate income tax (251) 12. Deferred income tax 6,369 39, Net income (loss) 821, , Minority interest 15. Accumulated losses at beginning of period (16,156,308) 16. Dividend 17. Others 18. Eliminated for the purpose of the quasi reorganization 15,847, Accumulated gain or losses at end of period 821, Earnings per-share Page 7

8 Commitments and Contingencies CONSOLIDATED COMMITMENTS AND CONTINGENCIES PT BANK INTERNASIONAL INDONESIA, Tbk AS OF DECEMBER 31, 2004 AND 2003 (audited) (in million Rupiah) No. Description Dec 31, 2004 Dec 31, 2003 COMMITMENT Commitment claims/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 4,688,542 3,306,943 b. Foreign currencies 679, , Outstanding irrevocable L/C 456, , Others Total commitment liabilities 5,824,875 4,262,236 TOTAL COMMITMENTS - NET (5,824,875) (4,262,236) CONTINGENCIES Contingent receivables 1. Guarantees received a. Rupiah 2,165 b. Foreign currencies 51,870 50, Past due interest revenues a. Rupiah 72,013 51,893 b. Foreign currencies 9,706 7, Others Total contingent receivables 135, ,773 Contingent liabilities 1. Guaranteed issued a. Bank Guarantees Rupiah 168, ,958 Foreign currencies 52, ,420 b. Others 2. Outstanding revocable L/C 3. Others Total contingent liabilities 221, ,378 TOTAL CONTINGENCIES - NET (85,921) (187,605) 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