ANALYST MEETING PT Bank Tabungan Negara (Persero) Tbk. Business & Financial Performances as of 31 December 2010 Jakarta, 30 March 2011
Disclaimer IMPORTANT: The following forms part of, and should be read in conjunction with, the other material in this presentation This presentation contains privileged information and has been prepared solely for the recipient(s). By accepting a copy (or the contents) of this presentation, you are deemed to have acknowledged and agreed to the provisions appearing hereinafter. The existence of this presentation and the contents thereof should not be disclosed, reproduced, copied or otherwise disseminated to any other person or published, in whole or in part, without prior consent of PT Bank Tabungan Negara (Persero) Tbk. ( BTN or the Company ). This presentation does not constitute or form part of any offer for sale or invitation, or solicitation of an offer, to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis of or be relied on in connection with any contract or commitment whatsoever. Any decision to purchase or subscribe for securities should be made only on the basis of the information contained in a prospectus or offering circular issued by the Company in connection with any such offering. Information and opinions contained in this presentation are provided for reference of the recipients only and are not to be relied upon as authoritative or without the recipient s own independent verification or taken in substitution for the exercise of the recipient s own judgment. Any reference to past performance should not be taken as an indication of future performance. In furnishing the presentation, the Company has not undertaken to provide the recipient(s) with access to any additional information or updates. None of the Company warrant or guarantee whatsoever that this presentation will lead to the successful completion, or consummation, of any transactions whether or not under contemplation. Accordingly the Company disclaims any liability whatsoever in connection therewith and with any decisions that might be taken upon the basis of this presentation, directly or indirectly. In particular, the Company owe no duty to the recipient (except as required by applicable laws) to exercise any judgment on its behalf as to the merits or suitability of any transaction. The recipient agrees that the merits or suitability of any such transaction to its particular situation will be independently determined by the recipient including consideration of the legal, tax, accounting, regulatory, financial and other related aspects thereof. 2
Table of Contents Balance Sheet Highlights Income Statement Highlights Key Financial 2010 Initiatives Supporting Data 3
Share Ownerships Composition as of 30 Dec 2010 Ownerships # of Shares % Public Share Ownerships Domestic Foreign GOI 6.354.000.000 72.92% Public 2.360.057.000 27.08% 40.30% 49.11% 61.45% 66.77% - Domestic 842.313.533 33.23% - Foreign 1.517.743.467 66.77% 59.70% 50.89% 38.55% 33.23% 800 1.640 IPO Dec-09 Jun-10 Dec-10 Total number of shares : 8.714.057.000 As of 31 Dec 2010, BBTN closed at IDR 1.640. The price has been steadily increasing by 105% since the IPO date 17 Dec 09. Market cap is IDR 14.29 Trillion ( USD 1.6 Billion) 4
FINANCIAL HIGHLIGHTS FY 2009 FY 2010 % TOTAL ASSET (IDR billion) 58.447 68.385 17,00% TOTAL LOAN & FINANCING (IDR billion) 40.732 51.549 26,56% TOTAL DEPOSITS (IDR billion) 40.215 47.546 18,23% EQUITY (IDR billion) 5.393 6.447 19.54% NET PROFIT (IDR billion) 490 916 86,73% CAR (Tier 1 BI) 20,41% 21,75% NPL (Gross Net) 3,36% 2.75% NIM 4,60% CIR 68.69% COVERAGE RATIO 51,34% ROE (balance sheet) 14.14% 15.83% 16,74% 3,26% 2,66% 5,93% 58.34% 52,80% 16.53% 5
in IDR Billion FY 2009 FY 2010 % BALANCE SHEET HIGHLIGHTS TOTAL ASSET 58.447 68.385 TOTAL EARNING ASSET 53.771 62.202 - SBI 5.185 691 - Loans & Financing 40.733 51.549 - Government Bonds 7.380 7.193 - Other Earning Asset 473 2.768 PROVISION ON EARNING ASSET (719) (889) TOTAL NON EARNING ASSET 5.464 7.072 THIRD PARTY DEPOSITS 40.215 47.546 SECURITIES ISSUED 3.222 4.140 DEPOSITS FROM OTHER BANKS 505 558 REPURCHASE AGREEMENTS 3.565 3.464 OTHER INTEREST BEARING LIABILITIES 2.984 3.399 NON INTEREST BEARING LIABILITIES 2.564 2.830 EQUITY 5.461 6.447 17,00% 15,67% (86,66%) 26,56% (2,53%) 484,57% 23,64% 29,43% 18,23% 28,49% 10,50% (2,83%) 13,91% 10,38% 18,05% 6
Total Asset Compositions Total Assets (IDR tr) Assets Compositions (%) 9.1% 9.3% 10.3% 45.0 58.5 68.4 90.9% 90.7% 89.7% Dec08 Dec09 Des10 Dec08 Dec09 Des10 Non Earning Asset Earning Asset As of Dec 2010, total assets stood at IDR 68,4 trillion or US$ 7,7 billion, of which 89,7% was comprised of earning assets and 10,3% of non earning assets. The earning assets are mainly loan and financing with 82,9% and government bond with 11,6%. As one of our strategies to have a better NIM, we are trying to swap the bond with loan, which will give higher yield. Earning Asset Compositions (%) SBI Loans&Financing Gov Bonds Other Earning Asset 3.6% 9.6% 1.1% 77.2% 75.8% 82.9% 17.9% 13.7% 11.6% 1.3% 0.9% 4.4% Dec 09 Dec 09 Des10 7
Total Loans Compositions Housing Loans Loans type Dec-08 Dec-09 Dec-10 IDR Bio Comp IDR Bio Comp IDR Bio Comp 30,548 95.39% 38,285 93.99% 46,881 90.94% Subsidized Mortgages 14,774 46.13% 18,909 46.42% 21,407 41.53% Non-Subsidized Mortgages 10,568 33.00% 12,661 31.08% 16,065 31.16% Other Housing 2,649 8.27% 2,923 7.18% 3,723 7.22% Construction Loan 2,557 7.98% 3,792 9.31% 5,686 11.03% Non-Housing Loans 1,477 4.61% 2,447 6.01% 4,668 9.06% Consumer Loan 539 1.68% 477 1.17% 1,125 2.18% Commercial Loans 938 2.93% 1,970 4.84% 3,542 6.87% Total Loans 32,025 100.00% 40,732 100.00% 51,549 100.00% Total loans stood at IDR 51,5 trillion or US$ 5,8 billion as of Dec 2010, grew by 26,56% from Dec 2009 Gross loans grew by a CAGR of 26,86% from 2008-2010 90,94% is housing loan and 9,06% is Non Housing loan We plan to have a bigger portion of non housing loan to gain better yield and shorter duration of asset. Gross Loans (IDR tr) Housing & Non Housing Loan Non Housing Loan Housing Loan 4.6% 6.0% 9.1% 32.0 40.7 51.5 95.4% 94.0% 90.9% 8
Strong Growth in Mortgages Total Mortgages (IDR bn) Total outstanding mortgages is IDR 37,5 trillion or US$ 4,2 billion, represents 73% of total loans & financing of IDR 51,4 trillion. 25,342 31,570 37,472 Mortgage portfolio comprises of (i) governmentsubsidized mortgages at 57% of our mortgage portfolio, and (ii) non-subsidized mortgages at 43% of our mortgages portfolio Subsidized Mortgages (IDR bn) Non-Subsidized Mortgages (IDR bn) 14,774 18,909 21,407 10,568 12,661 16,065 Note : Figures on all graphs are Included Sharia housing financings 9
New Loan Disbursement and Sharia Financing 6.00 5.63 5.74 5.50 5.00 4.50 4.00 4.55 4.01 4.09 5.15 5.06 3.50 3.00 3.14 2.50 2.00 Q1 Q2 Q3 Q4 2009 2010 Total loans disbursement and financing in 2010 is IDR 21.07 Trillion, higher than in 2009 of IDR 16.3 Trillion Total mortgage loan disbursement is IDR 10.09 Trillion, consist of IDR 4.72 Trillion of subsidized mortgage and IDR 5.37 Trillion of non subsidized mortgage 10
Strong Asset Quality with Low Non-Performing Loans Gross NPL Net NPL 4.0% 3.2% 3.4% 3.2% 2.8% 2.7% 2.8% 2.6% Des07 Des07 Gross NPL Net NPL 4.77% 3.37% 4.67% 3.33% 3.93% 3.74% NPL Gross 2007 NPL Gross 2008 NPL Gross 2009 NPL Gross 2010 4.05% 3.35% 3.26% 3.22% 2.98% 2.63% NPL Netto 2007 NPL Netto 2008 NPL Netto 2009 NPL Netto 2010 2.81% 2.72% 2.66% 2.46% Jan Feb Mar Apr Mei Jun Jul Agt Sep Okt Nov Des Jan Feb Mar Apr Mei Jun Jul Agt Sept Okt Nov Des Gross NPL relatively stable at 3,26% in Dec 2010 lower than 3.35% in Dec 2009 Net NPL is 2.66% in Dec 2010 lower compare to 2.72% in Dec 2009. 11
Strong Asset Quality with Low Non-Performing Loans (cont d..) COLLECTIBILITY Des-2008 Des-09 Des-10 Loan Type Des Des Outs. Share Outs. Share Outs. Share Current 27,744 86.63% 34,326 84.30% 41,674 83.57% Special Mentioned 3,258 10.17% 5,036 12.40% 8,195 16.43% PL 31,001 96.80% 39,363 96.60% 49,868 96.74% Substandard 97 0.30% 121 0.30% 175 0.34% Doubtful 138 0.43% 183 0.40% 244 0.47% Loss 789 2.46% 1,067 2.60% 1,262 2.45% NPL 1,024 3.20% 1,370 3.36% 1,681 3.26% PL + NPL 32,025 100.00% 40,733 100.00% 51,549 100.00% NPL Gross 3.20% 3.36% 3.26% NPL Netto 2.66% 2.75% 2.66% NPL 2009 2010 Housing Loans 3.42% 3.14% Subsidized Mortgages 3.83% 3.75% Non-Subsidized Mortgages 2.79% 2.64% Other Housing 4.56% 2.53% Construction Loan 2.61% 2.60% Non-Housing Loans 2.16% 4.22% Consumer Loan 0.87% 0.81% Commercial Loans 2.53% 5.26% Total Loans 3.36% 3.26% 12
Total Liabilities Compositions 41.9 Total Liabilities (IDR tr) 53.1 61.9 Total funding stood at IDR59,1 Trillion at 31 Dec 2010, of which 80,4% comprised of third party deposits Third party deposits grew by 18,2%, which are comprised 33,7% of CASA and 66,3% of TD Total Funding (IDR tr) Third Party Deposits (IDR tr) Repurchase Agreements Securities Issued Borrowings and Deposits from Other Banks Third Party Deposits 59.1 50.5 3.5 4.1 39.3 3.6 4.0 3.2 1.8 3.5 2.5 3.6 47.5 40.2 31.4 40,2 31,4 47,5 66,3% 59,5% TD 67,5% SA 22,2% 22,9% 23,5% CA 9,1% 18,3% 10,9% 13
Total Equity Compositions Total Equity (IDR tr) 6.4 5.4 3.1 CAR Tier-1 20.4% 14.8% 17.1% 15.8% * Des10** *) CAR formula : Tier 1/(RWA Credit + Market Risk) **) CAR formula : Tier 1/(RWA Credit + Market + Ops Risk) 2008 2009 2010 Tier - 1 Capital 2,959 5,231 5,739 Tier - 2 Capital 266 317 416 Capital on B/S 3,078 5,548 6,155 RWA - Credit Risk 19,620 25,358 33,283 RWA - Market Risk 362 277 208 RWA - Operational Risk - - 2,774 RWA - Total 19,982 25,635 36,265 CAR Tier 1/(RWA Credit + Market Risk) 14.81% 20.41% 17.14% CAR Tier 1/(RWA Credit + Market + Ops Risk) 15.83% CAR B/S/(RWA Credit + Market Risk) 15.41% 21.04% 19.25% CAR B/S/(RWA Credit + Market + Ops Risk) 17.78% CAR BI ((Tier 1+2)/(RWA Credit + Market Risk) 16.14% 21.49% 18.12% CAR BI ((Tier 1+2)/(RWA Credit + Ops Risk) 21.72% 16.83% CAR BI ((Tier 1+2)/(RWA Credit + Market + Ops Risk) 21.49% 16.74% Lending on mortgages is more capital efficient as mortgages carry a 40% risk weighting compared to 100% for normal commercial loans CAR Tier-1 slightly down by 131 bps after taking into account the operational risk from 17,14% to 15,83%. 14
in IDR Billion INCOME STATEMENT HIGHLIGHTS FY 2009 FY 2010 YOY Interest Income 5.660 6.619 16,94% Interest Expense (3.515) (3.292) (6,34%) Net Interest Income 2.145 3.327 55,10% Other Operating Income 654 937 43,27% Other Operating Expense (2.060) (3.001) 45,68% Profit from Operation 739 1.264 71,04% Non Operating Income (Expense) (9) Profit Before Tax 730 (14) 1.250 55,56% 67.56% Net Profit 490 916 86.94% 15
Interest Income Composition Item FY 2009 FY 2010 % Bank Indonesia - 26 #DIV/0! Placement with other bank 29 15-48.28% Securities 774 476-38.50% Loan 4,663 5,571 19.47% Others - 233 #DIV/0! Income from Sharia 194 298 53.61% INTEREST INCOME 5,660 6,619 16.94% 5.660 6.619 Other Placement 3.5% Sharia 4.5% other bank 0% Bank Indonesia 0.4% Securities 7.2% Loan & Financing 84.2% 2009 2010 Income from Sharia Others Loan Securities Placement with other bank Bank Indonesia 16
Interest Expense Composition Item FY 2009 FY 2010 % Bank Indonesia 24 17-29.17% Deposits fr other banks 38 105 176.32% Deposit from non banks 2734 2,347-14.16% Securitis issued 371 450 21.29% Fund borrowings 90 125 38.89% Others 258 247-4.26% INTEREST EXPENSE 3,515 3,292-6.34% 3.515 Others 7.5% Borrowing 3.292 Securities 3.8% 13.7% Deposit other bank 3.2% Deposit from non banks 71.3% FY 2009 FY 2010 Fund borrowings Securitis issued Deposit from non banks Deposits fr other banks Bank Indonesia 17
Other Operating Income Composition Item FY 2009 FY 2010 % Mark to Market 8 4-50.00% Gain 55 133 141.82% Fee & Commissions 128 36-71.88% Reversal on Provision 205 394 92.20% Others 257 369 43.58% OTHER OPERATING INCOME 654 937 43.27% 654 937 MTM 0.5% Gain 14.2% Fee & Com 3.9% Others 39.4% Reversal 42.1% FY 2009 FY 2010 Others Reversal on Provision Fee & Commissions Gain Mark to Market 291 18
Other Operating Expense Composition Item FY 2009 FY 2010 % Mark to Market 5 23 360.00% Gain 29 0-100.00% Provisions 271 735 171.22% Salaries & Employee Benefits 654 763 16.67% Promotions 98 162 65.31% Others 1,002 1,318 31.54% OTHER OPERATING EXPENSE 2,060 3,001 45.68% 3.001 Gain 0% MTM 0.8% 2.060 Others 43.9% Provision 24.5% Salaries 25.4% FY 2009 FY 2010 Others Promotions Salaries & Employee Benefits Provisions Gain Mark to Market Promotion 5.4% 19
Key Financials Net Interest Margin Net Income (IDR Bn) 5.1% 4.6% 5.9% 916 430 490 Cost to Income Ratio 69.0% 68.7% 58.3% 20
Key Financials (cont d) ROA 1 before tax ROA 2 after tax 1.8% 1.5% 2.1% 1.1% 1.0% 1.5% ROE 3 tier 1 capital ROE 4 balance sheet 19.6% 14.5% 16.7% 16.5% 14.5% 14.1% * 1 Calculated based on income before income tax (include tax benefit and extraordinary item)/ average total assets based on Bank Indonesia regulation 2 Calculated based on net profit/average total assets 3 Calculated based on net profit/average Tier 1 capital based on Bank Indonesia regulation 4 Calculated based on net profit/total stakeholder s equity 21
Key Financials (cont d) Loan-to-Deposit Ratio Loan-to-Funding Ratio 108.4% 87.1% 101.8% 101.3% 81.4% 80.6% Bank Indonesia s formula which does not include other sources of fund besides third party deposits is the cause of LDR above 100%. Loan to Funding ratio, which takes into account the whole funding sources, is still below 90%. 22
Sharia Business is a New Growth Area Sharia Assets (IDR bn) 3,402 2,256 1,556 BTN s Sharia business was established in 2004. Total asset run by Sharia Unit as of 31 Dec 2010 was IDR 3.4 Trillion with profit generated IDR 35.3 Billion. As of 31 Des 2010, BTN has 26 Sharia branches and 210 Sharia channeling outlets across Indonesia. We plan to leverage on our current branch network to open more Sharia channeling outlets Sharia Financings (IDR bn) Sharia Deposits (IDR bn) 2,847 2,405 1,251 1,996 686 1,447 23
2010 INITIATIVES 24
Initiatives Done 2010 as foundations to step forward in achieving the ultimate goal Experienced Professionals Hiring to Start New Business Units, (Card Business & Electronic Banking, Bancassurance and Priority Banking) New Organization Structure Implementation Grand Launching of BATARA Debit Visa Card Grand Launching Credit Card (Co Branding) On Going Since Jan 2010 1 Mar 2010 Agt 2010 Dec 2010 E-Coll (Electronic Collection and Recovery System) Implementation Pilot Project Branch: Cirebon E-Loan (Electronic Loan Origination System) Implementation Opened 111 New Kiosks (Small Cash Branches) Kiosks are designed for funding only purposes. Spreading over residential areas all over Indonesia Connected 616 New Postal Offices on-line with Bank BTN (host to host on-line connection) There are 2.661 postal offices connected on-line with Bank BTN Sep 2010 Sep 2010 Up to Dec 2010 Sep 2010 25
THANK YOU
SUPPORTING DATA 27
Experienced Management Team Appointed in Dec 07 Iqbal Latanro, President Director CEO Managing Internal Audit and Corporate Secretary Divisions and Change Management Office. Evi Firmansyah, Vice President Director COO Managing Information, Communication & Technology, Logistic & Network Division and Operation & Business Support Divisions. Sunarwa, Managing Director CRO Managing Risk Management, Human Capital Divisions. Also, Compliance and Legal & Loan Document Desks Saut Pardede, Managing Director CFO Managing Planning & Performance Management, Finance Accounting, Treasury and Collection & Workout Divisions Irman A Zahiruddin, Managing Director Consumer Banking Managing Mortgage & Consumer Lending and Consumer Funding & Services Divisions. Also, Card Business & Electronic Banking, Post Office Alliance and Priority Banking & Bancassurance Desks Purwadi, Managing Director Commercial Banking Managing Housing & Commercial Lending, Commercial Funding & Services and Syariah Divisions 28
Experienced Board of Commissioner Appointed in May 08 and May 2010 Zaki Baridwan, President Commissioner Independent Commissioner Was a President Commissioner PT Bank BNI Tbk, was Dean Faculty of Economics Gadjah Mada University and Director of Graduate Program. Gatot Mardiwasisto, Commissioner Presently an Assistant for Deputy of Banking Enterprise Affairs in State Ministry of State- Owned Enterprise (MSOE), was a Commissioner PT BNI Securities and Director of Finance Kliring Berjangka Indonesia Ltd. Co Subarjo Joyosumarto, Independent Commissioner Presently a President Director Indonesia s Banking Development Institution, Executive Director The South East Asia Central Banks Research & Training Centre and Deputy Governor of Bank Indonesia Mulabasa Hutabarat, Commissioner Presently a Head of Pension Fund Bureau Bapepam-LK of Ministry of Finance Republic of Indonesia, was a Commissioner of PT Pelindo and Head of Organizing Committee of Recapitalized Bank Monitoring Team Deswandhy Agusman, Independent Commissioner Presently an Expert Advisor of PNM Investment Management, was a Commissioner of Bank Permata and Commissioner of Bank BRI. 29
30
Distribution Network & Customer Base KALIMANTAN 53 4 SUMATERA 640 388 BTN Branches 26 BTN Sharia Branches 18 JAWA 283 19 277 2 BALI 1.387 7 SULAWESI 22 113 1 101 MALUKU 5 IRIAN JAYA 82 2.661 Post office outlets connected electronically with BTN branches, out of 3,572 nationwide Note: As of Dec 2010 Distribution channel includes: 745 ATMs Over 17,000 ATMS linked to the Link and ATM Bersama Network 111 small cash branches (kios) BTN has a large customer base, with approximately 1.2 million loan accounts and approximately 4,8 million deposit accounts (as of Dec 2010) Our large customer base provides us with a strong platform to cross-sell our products and services and expand the size of our non-housing loan portfolio 31
Liquidity Facilities The New Subsidized Mortgage Scheme Fixed Rate Mortgage until maturity (up to 15 years) The Government s subsidized fund placed at BTN with 0.5% p.a. fixed rate The Government s fund mixed with the banks commercial fund to finance the subsidized mortgage. The new subsidized scheme has been implemented since October 1 st, 2010. Gov t Budget 2010 @ very low rate Bank s Fund @ commercial rate Subsidized Mortgage Base Lending Rate Calculation of Subsidized Mortgage No. Source of Fund Share Rate WAR 1 Govt Budget 60.00% 0.50% 0.30% 2 BTN Commercial 40.00% 9.00% 3.60% TOTAL FUND 100.00% 3.90% COF 3.90% COST + MARGIN BANK 4.25% BASE LENDING RATE 8.15% Single Digit Rate 32
Liquidity Facilities The New Subsidized Mortgage Scheme There are 3 eligibility main criterias: Landed House Mortgage First time house Borrowers maximum income of Rp. 2.5M for landed house and Rp. 4.5M for simple apartment. Tax ID and Tax Slip Max Amount Max Tenor (year) Rate Monthly Installment Rp 50,000,000 15 8.15% 491,300 Rp 60,000,000 15 8.25% 593,100 Rp 70,000,000 15 8.35% 696,200 Rp 80,000,000 15 8.50% 802,900 Simple Apartment Mortgage Max Amount Max Tenor (year) Rate Monthly Installment Rp 90,000,000 15 9.25% 944,300 Rp 100,000,000 15 9.35% 1,055,300 Rp 110,000,000 15 9.50% 1,171,000 Rp 120,000,000 15 9.65% 1,288,600 Rp 130,000,000 15 9.80% 1,408,100 33
34
35
36