PT Bank OCBC NISP Tbk Financial Performance First Quarter 2018 (Unaudited)

Transcription

1 PT Bank OCBC NISP Tbk Financial Performance First Quarter 2018 (Unaudited) This report is solely for the use of PT. Bank OCBC NISP Tbk. No part of it may be circulated, quoted, or reproduced for distribution outside the organization without prior written approval from PT. Bank OCBC NISP Tbk. This material was used by PT. Bank OCBC NISP Tbk.during an oral presentation; it is not a complete record of the discussion. 1

2 Agenda First Quarter Performance Financial Results Corporate Updates Appendix 2

3 Executive Summary NPAT reached Rp 663 billion or increased by 18% YoY in first quarter 2018 Total Assets grew 12% YoY to Rp 162 trillion at the end of March 2018 Loans rose 17% YoY to Rp 111 trillion at the end of March 2018 Deposits increased 10% YoY to Rp 121 trillion at the end of March 2018 LDR ratio was 91.1%, while Loan-to-Funding ratio was 87.6% at the end of March 2018 Gross NPL stood at 1.7% at the end of March 2018, below the industry average CAR was maintained at 17.0% at the end of March 2018, above the minimum requirement Corporate Rating is AAA with stable outlook Network Coverage with 325 Offices and 736 OCBC NISP ATMs 3

4 Bank OCBC NISP Serves Its Clients Across Indonesia Branches 325 branches including sharia offices in 61 cities Kalimantan Sulawesi Bali Flores Sumba Halmahera Seram Papua Jabotabek, Banten(143) West Java (57) Central Java (24) East Java (33) Bali, Lombok, Sumatera, Kalimantan, Sulawesi, Others (68) Electronic Channel Call Centre Avariety of mobile banking servicesavailable from our One Mobile app downloadable from Apple App Store & Google Play Store A wide variety of online banking services available from our Internet Banking, easily accessible from Corporate Internet Banking (Velocity) is a web based application to support Customer s business activity both financial and non financial transaction 736ATM OCBC NISPand Hotline Treasury access to: more than 179,000ATM Corporate Website - Network in Indonesia more than 900 ATM OCBC GroupNetwork in Singapore and Malaysia 4

5 Income Statement Highlights IDR billion 1Q17 4Q17 1Q18 QoQ YoY Net Interest Income 1,413 1,574 1,551 (1%) 10% Non Interest Income % 13% Operating Income 1,754 1,941 1,937-10% Operating Expenses (804) (886) (885) - 10% Pre Provision Operating Profit 950 1,055 1,052-11% Provision Expense (205) (387) (175) (55%) (15%) Non Operating Income- Net Profit Before Tax % 18% Net Profit After Tax % 18% 5

6 Financial Position Highlights IDR billion 1Q17 4Q17 1Q18 QoQ YoY Placement in other Bank (net) 1) 3,727 4,836 2,240 (54%) (40%) Marketable Securities 2) 30,102 26,831 31,670 18% 5% Loans (gross) 3) 94, , ,746 4% 17% Impairment Allowance (3,279) (4,160) (4,325) 4% 32% Total Assets 143, , ,554 5% 12% Current Account 26,305 26,138 24,441 (6%) (7%) Savings 16,710 17,581 17,878 2% 7% Time Deposit 66,643 69,722 78,813 13% 18% Total Customer Deposits 3) 109, , ,132 7% 10% Marketable Securities Issued 3,231 6,149 4,916 (20%) 52% Subordinated Bonds nm Total Liabilities 123, , ,161 5% 12% Equity 20,160 21,784 22,393 3% 11% Note: 1) Including Placement in Bank Indonesia 2) Exclude Securities purchase under resale agreement 3) Including Sharia products 6

7 Key Ratios % 1Q17 4Q17 1Q18 QoQ YoY Net Interest Margin (0.2) (0.1) Non Int. Income / Operating Income Cost / Income (0.1) ROA ROE Loan / Deposit 1) (2.3) 5.2 Loan / Funding 1) (2.7) 4.1 Loan / Funding 2) (1.0) 4.8 CASA / Deposit (3.6) (4.3) NPL Gross (0.1) (0.2) NPL Net (0.1) Loan Loss Provision (LLP) / NPL NOP CAR (0.5) (1.2) Note: 1) Loan-to-Deposit calculation and Loan-to-Funding according to guideline from Regulator 2) Funding includes Customer Deposits and Bonds 7

8 NIM recorded at 4.2% in 1Q18 along with diversified Non- Interest Income channels Net Interest Income IDR billion Non-Interest Income by Type First Quarter 4.3% 4.7% 4.5% 4.4% Net Interest Margin 4.2% Foreign Exchange Gain 2018: 30% 2017: 29% Credit Related 2018: 22% 2017: 17% 1,413 1,515 1,537 1,574 1,551 Others *) 2018: 13% 2017: 13% Trade Finance 2018: 12% 2017: 11% Deposit Administration 2018: 5% 2017: 6% Bancassurance 2018: 8% 2017: 7% Gain from Sale of Marketable Securities 2018: 10% 2017: 17% 1Q17 2Q17 3Q17 4Q17 1Q18 Non-Interest Income 2018: Rp 386 billion 2017: Rp 341 billion *) Including Mutual Funds, Remittance, e-channel and Other fee 8

9 Cost-to-Income Ratio at 45.7% in 1Q 2018 Operating Expense and Operating Income IDR billion Cost to Income Ratio 45.8% 43.7% 43.0% 45.6% 45.7% 1,754 1,937 1,920 1,941 1, % 38% 38% 39% 37% 62% 62% 62% 61% 63% 1Q17 2Q17 3Q17 4Q17 1Q18 Operating Income Employee Expense General Administration Expenses 9

10 Total loans increased by 17% YoY to Rp 111 trillion on the back of diversified loans growth Loans Composition IDR billion Loans by Sector 31 March 94, , ,346 13% 14% 14% 106, ,746 13% 13% Trading 2018: 25% 2017: 24% Manufacturing 2018: 27% 2017: 30% 42% 42% 41% 42% 41% 45% 45% 45% 45% 45% 1Q17 2Q17 3Q17 4Q17 1Q18 Working Capital Investment Consumer Note: Consumer loans includes Employee loan Services 2018: 17% 2017: 16% Others *) 2018: 15% 2017: 15% Outstanding loans 2018: Rp 110,746 billion 2017: Rp 94,496 billion Agricultural & Mining 2018: 13% 2017: 13% Construction 2018: 3% 2017: 2% *) Others category Including Consumer loans 10

11 The bank loans were spread over regions which most of economic activities are undertaken Loans by Geography 31 March Loans by Currency 31 March Jakarta 2018: 62% 2017: 60% Rupiah 2018: 74% 2017: 74% Sulawesi & Others 2018: 2% 2017: 3% Kalimantan 2018: 2% 2017: 2% Sumatera 2018: 9% 2017: 10% East Java 2018: 11% 2017: 10% Central Java 2018: 2% 2017: 2% West Java 2018: 12% 2017: 13% Foreign currencies 2018: 26% 2017: 26% Outstanding loans 2018: Rp 110,746 billion 2017: Rp 94,496 billion Outstanding loans 2018: Rp 110,746 billion 2017: Rp 94,496 billion 11

12 Gross NPL stood at 1.7%, while Net NPL was at 0.7% Loan Collectibility % Outstanding loans Loan Loss Provision (LLP) / NPL % Net NPL 0.8% 0.9% 0.9% 0.7% 0.7% 94, % 1.5% 100, , % 1.9% 1.5% 1.9% 110, , % 2.0% 1.7% 2.2% % 96.6% 96.2% 96.2% 96.1% Q17 2Q17 3Q17 4Q17 1Q18 Current Special mention NPL Gross 1Q17 2Q17 3Q17 4Q17 1Q18 General Specific 12

13 Total CASA represented 34.9% of Third party funds Deposit Composition IDR billion Deposit and Funding by Currency 31 March Rupiah 2018: 77% 2017: 72% 109, ,237 61% 57% 114, ,441 60% 61% 121,132 65% Foreign currencies 2018: 23% 2017: 28% Total Deposit 2018: Rp 121,132 billion 2017: Rp 109,658 billion Rupiah 2018: 78% 2017: 73% 15% 16% 16% 16% 15% 24% 27% 24% 23% 20% Foreign currencies 2018: 22% 2017: 27% 1Q17 2Q17 3Q17 4Q17 1Q18 Current Account Savings Time Deposits Total Funding 2018: Rp 126,048 billion 2017: Rp 113,768 billion Note: Funding includes Customer Deposits and Bonds 13

14 LDR was at 91.1%, while Loan-to-Funding ratio was 87.6% at end of March 2018 Loans, Third Party Fund and Funding IDR billion Loan-to-Deposit Ratio 85.9% 94.3% 89.8% 93.4% 91.1% 82.8% Loan-to-Funding Ratio 94, , , % 88.6% 86.5% 87.6% 119, , , , , , , , , , , ,349 1Q17 2Q17 3Q17 4Q17 1Q18 Loans Deposit Funding Note: Funding includes Customer Deposits and Bonds 14

15 Share Price and Credit Ratings Daily share price and trading volume NISP IJ Rating Daily trading volume (Thousand) Share price (Rupiah) Share Price PEFINDO Feb 2018 Fitch Ratings April 2018 Corporate Rating Continuous Bonds I and II National Long-term National Short-term idaaa / Stable idaaa / Stable AAA (idn) / Stable F1+ (idn) Long-term Foreign Currency BBB / Stable Long-term Local Currency A / Stable Short-term Foreign Currency F 3 Continuous Bonds I and II Viability Rating Support Rating AAA (idn) Bb+ 2 Source: Bloomberg Valuation IDR Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Ownership Structure As of 31 March 2018 Number of shares Ownership Share Price 1,870 1,800 1,865 1,875 1,875 PBV 1.1x 1.0x 1.0x 1.0x 1.0x EPS Quarterly Source: Bloomberg Note: OCBC Overseas 9,760,695, % Investment Pte. Ltd *) Public 1,711,952, % Total 11,472,648, % *) OCBC Overseas Investment Pte. Ltd is owned by OCBC Bank, Singapore. OCBC Bank is Singapore s longest established bank (est. 1912) and one of Asia s leading financial services groups, with group assets of SGD 455 billion as of 31 December 2017 and employs more than 29,000 staff globally and has a banking network of over 600 branches and representative offices in 18 countries and territories. 15

16 Agenda First Quarter Performance Financial Results Corporate Updates Appendix 16

17 Business Initiatives and Corporate Action Consumer Banking Intensifying Tanda 360 o plus and Taka campaign to acquire more new customers. Intensifying internet and mobile banking campaign to acquire more new users. Continuous Public Offering Bonds II Bank OCBC NISP Phase IV Year 2018 To diversify funding, Bank OCBC NISP raised Rp 1,060,000,000,000 through the Continuous Public Offering Bonds II Bank OCBC NISP Phase IV Year The bonds issued in 2 series, namely: Series A for a term 370 days in the amount Rp 525 billion with a 6.00% interest rate, Series B for a term 3 years in the amount Rp 535 billion with a 6.90% interest rate, The proceeds are being used entirely for loans expansion. 17

18 Corporate Social Responsibility Young Entrepreneurship Spirit (YES) Workshop Bank OCBC NISP together with Karya Salemba Empat (KSE) held Young Entrepreneurship Spirit (YES) Workshop in February 2018, which was attended by 38 Participants. Financial Education Workshop Bank OCBC NISP conducted a Financial Education and Literacy Workshop for Start-up Entrepreneur in Cirebon with 38 participants as well as for employees of Cahya Kawaluyan Hospital in Bandung with 36 Participants. 18

19 Accolades. Indonesia Corporate Social Responsibility Award by Economic Review Magazine in February 2018 Category: B (Gold) Indonesia Corporate Secretary Award and Corporate Communication Award by Economic Review Magazine in March 2018 Category: A (Platinum) Indonesia Information Technology Award by Economic Review Magazine in March 2018 Category: A (Platinum) 19

20 Supports from Controlling Shareholder Human Capital Team-up Senior executive OCBC Bank Singapore in Board of Commissioners and Board of Directors OCBC NISP. Transfer knowledge throughout comprehensive training program, business event, comparative studies, job attachment and guest auditors. Others Provide capital support Create synergy to better support financing and transaction service needs for customers Collaboration to build new capabilities in offering customer solutions and services inside and outside Indonesia Enhance Op & IT governance as well as information technology implementation, while improving operational excellence Speedy remittances between Singapore and Indonesia aside from Link-up ATM in Singapore and Indonesia. 20

21 Agenda First Quarter Performance Financial Results Corporate Updates Appendix 21

22 Vision and Mission Vision To be the Bank of choice with world-class standards, recognized for its caring and trustworthiness. Mission Bank OCBC NISP will conduct its business and will operate as an honorable corporate citizen that grows together with the society in a sustainable manner. 22

23 Fact of OCBC NISP Fourth oldest bank in Indonesia was incorporated in Listed its shares on Indonesia Stock Exchange in Transformed the entire organization subsequent to adopted a new name PT Bank OCBC NISP Tbk. by the end The merger with Bank OCBC Indonesia was completed on 7 February 2011 resulting in one single banking entity and franchise for the group in Indonesia For over 77 years, the Bank has survived through any Indonesia economic crisis. The Indonesia s ninth largest bank at the end of December Currently employs 6,417 dedicated staff to serve customers in 61 cities across Indonesia throughout 325 offices and 736 ATMs. Focus on serving the segment of SME and Retail. Solid financial performance with strong capital support from OCBC Bank Singapore. 23

24 Board of Commissioners as of 31 March 2018 Pramukti Surjaudaja Chairman Chairman, Board of Commissioners, Bank OCBC NISP since 2008 President Director Bank OCBC NISP ( ) Director of Bank OCBC NISP ( ) Commissioner of Bank OCBC Indonesia ( ) Council Member, International & East Asia Council, INSEAD, France, since 2006 Non Executive Director at OCBC Bank-Singapore since 2004 Peter Eko Sutioso Deputy Chairman (Independent Commissioner) Deputy Chairman of Bank OCBC NISP since 1998 Commissioner Bank OCBC NISP ( ) Director of Bank OCBC NISP ( ) Active in Perbanas (Indonesian Banking Association) West Java as Chairman of Perbanas West Java ( ), and active in BMPD West Java ( ) Samuel Nag Tsien Commissioner Commissioner of Bank OCBC NISP since 2012 Director of Wing Hang Bank, Limited since August 2014 Director of Mappletree Investments Pte. Ltd. since March Chairman of the Association of Banks in Singapore since June 2013 Joined OCBC Bank Ltd in 2007 and appointed as Group Chief Executive Officer since April 2012 and as Director since February 2014 Director of OCBC Bank (Malaysia) Berhard, OCBC Al-Amin Bank Berhard, Great Eastern Holdings Ltd, and OCBC Overseas Investments Pte. Ltd since April 2012 Chairman of OCBC Bank (China) Ltd. since October 2012 President and Chief Executive Officer of Bank of Amerika (Asia) Hongkong, from Lai Teck Poh (Dua Teck Poh) Commissioner Commissioner of Bank OCBC NISP since 2008 Non Executive Director in OCBC Bank (Malaysia) Bhd since 2011 Director in OCBC Bank Ltd since 2010 OCBC Bank Ltd ( ) with latest management position as Head, Group Audit Managing Director, Citicorp Investment Bank (Singapore) Ltd ( ) Hardi Juganda Independent Commissioner Independent Commissioner of Bank OCBC NISP since November 2017 Commissioner of Bank OCBC NISP (July 2012-March 2017) Director Bank OCBC NISP (1997-May 2012) Head Positions in various branches and divisions of Bank OCBC NISP ( ) Jusuf Halim Independent Commissioner Independent Commissioner of Bank OCBC NISP since 2006 Chairman of CPA Examination Board, the Indonesian Institute of Accountants ( ) Chairman of Financial Accounting Standards Committee ( ) Member of Advisory Board, the Indonesian Tax Accountants Compartment ( ) Member of Honorary Board-the Indonesian Institute of Audit Committee since 2013 Kwan Chiew Choi Independent Commissioner Commissioner Bank OCBC NISP since 2011 Independent Commissioner of Bank OCBC Indonesia ( ) Senior Vice President & Head Credit Control and Approval, OCBC Bank Ltd ( ) Vice President of Corporate Banking, First National Bank of Chicago (Singapore) ( ) Loans Department Manager of Sumitomo Bank Ltd, Singapore Branch ( ) Betti Setiastuti Alisjahbana Independent Commissioner Independent Commissioner of Bank OCBC NISP since December 2017 Independent Commissioner of PT Bhinneka Mentari Dimensi (December 2015 September 2017) Independent Commissioner PT Anabatic Technologies Tbk. Since March 2015 Chairman of Trustee Board of Institut Teknologi Bandung since May

25 Board of Directors as of 31 March 2018 Parwati Surjaudaja President Director & CEO President Director of Bank OCBC NISP since December 2008 Deputy President Director Bank OCBC NISP ( ) Director of Bank OCBC NISP ( ) Yogadharma Ratnapalasari Managing Director Director of Bank OCBC NISP since 2003 Assistant Director Bank OCBC NISP ( ) Commissioner of PT NISP Sekuritas ( ) Head Positions in various divisions of Bank OCBC NISP ( ) Rama Pranata Kusumaputra Managing Director Director of Bank OCBC NISP since 2006 Assistant Director of Bank OCBC NISP ( ) Region II Coordinator of Bank OCBC NISP ( ) Has experience in various positions in Bank Bali ( ) with last position as General Manager Emilya Tjahjadi Managing Director Director of Bank OCBC NISP since 2011 Director of Bank OCBC Indonesia ( ) SVP and Head Commercial Banking MME at HSBC, Jakarta ( ) American Express Bank Ltd., Jakarta ( ) with last position as Director of Corporate Banking Standard Chartered Group, Jakarta & Singapore ( ) with last position as Senior Relationship Manager Hartati Managing Director (Independent Director) Director of Bank OCBC NISP since 2011 Chief Financial Officer of Bank OCBC NISP ( ) Assistant Director of Bank OCBC NISP ( ) Accounting & Finance Division Head Bank OCBC NISP ( ) General Manager Bank OCBC NISP ( ) Bank Mandiri ( ) with last position as Accounting Group Head (Senior Vice President) Bank Bali ( ) with last position as Financial Control Department Head (Vice President) Andrae Krishnawan W. Managing Director Director of Bank OCBC NISP since 2013 Senior Corporate Executive Bank OCBC NISP ( ) Assistant Director of Bank OCBC NISP ( ) The Staff Director Bank OCBC NISP ( ) Has experience in various positions in Bank International Indonesia ( ) with last position as Regional Head for the last 7 years Martin Widjaja Managing Director Director of Bank OCBC NISP since 2012 SVP & Head of International and Large Local Corporation in HSBC ( ) Senior Vice President, Commercial Banking, HSBC ( ) Vice President, Commercial Banking ( ) and Corporate & Institutional Banking ( ), HSBC Assistant Vice President Corporate & Institutional Banking, HSBC ( ) Manager Corporate Banking, HSBC Surabaya ( ) Johannes Husin Managing Director Director of Bank OCBC NISP since 2013 Treasurer Bank OCBC NISP ( ) Executive Vice President, Head of Trading & Sales Bank Danamon ( ) Executive Director JP Morgan Chase Bank ( ) Senior Vice President, Head of Trading Bank Danamon ( ) Vice President, Senior Interest Rate Trader-Standard Chartered Bank ( ) Currency Forward Trader-ABN Amro Bank ( ) Foreign Exchange Trader-Bank Dagang Nasional Indonesia ( ) 25

26 Board of Directors as of 31 March 2018 (Cont d) Low Seh Kiat (Thomas) Managing Director Director of Bank OCBC NISP since 2013 National Emerging Business Head Bank OCBC NISP ( ) Vice President, Business Head of Emerging Business OCBC Bank, Singapore ( ) VP, Head of Program Management & Marketing OCBC Bank, Singapore ( ) VP-GE Commercial Financing (S) Ltd, Singapore ( ) Has experience in various head positions in Heller Factoring (S) Ltd, Singapore ( ) and Heller Asia Capital (S) Ltd, Singapore ( ) Sales Manager D&D International Enterprise Ltd, USA ( ) Joseph Chan Fook Onn Managing Director Director of Bank OCBC NISP since 2014 OCBC Group Risk Management (Feb-Mar 2014) Head of Internal Audit Division, OCBC Bank Malaysia Bhd (2010-Jan 2014) Head of Internal Audit Division, Bank OCBC NISP Jakarta ( ) Senior Audit Manager Consumer Credit Review, OCBC Bank Singapore ( ) Audit Manager, Standard Chartered Bank Singapore ( ) Have more than 19 years banking experience especially in Internal Audit. 26

27 Corporate Planning & Development PT. Bank OCBC NISP Tbk OCBC NISP Tower, 15 th Floor Jl. Prof. Dr. Satrio Kav. 25, Jakarta Phone : Fax : Website : ir@ocbcnisp.com 27