Corporate Presentation Maintaining a Solid Position Analysts Meeting Jan Sep 2016 Results PT Bank Central Asia Tbk Jakarta, 26 th October 2016
Table of contents Macro Environment page Macroeconomic environment 4 Banking sector highlights August 2016 5 Performance Overview BCA key financial highlights 7 Consumer loans supported overall lending performance Mortgage market leader 9 Maintaining solid loan loss provisions 10 A leading transaction banking business 11 Solid funding base 12 Maintained healthy NIM 13 Sustained profitability 14 Quality growth through enhanced relationship 15 8 page Financial Review Balance sheet summary 17 Income statement summary 18 Financial ratios 19 Diversified earning assets composition 20 Breakdown of earning assets yield 21 Balanced loan portfolio 22 Moderate consumer loan growth 23 Diversified industry concentration 24 NPL maintained at a low level 25 Active management of third party funds 26 Cost efficiency ratio 27 Appendix Government bonds profile 30 BCA maintains 7 subsidiaries in 5 business lines 31 BCA credit ratings 32 BCA share performance 33 BCA winning awards 35 2
Agenda Macro Environment Performance Overview Financial Review 3
Macroeconomic environment Inflation and BI Rates (%) Bank Indonesia forecast 2016 economic growth of 4.9%-5.3% Continuing uncertainty and low growth in the global economy Rupiah steady around Rp13,000 13,300 Economic reform packages and tax amnesty boost sentiment Low interest rate environment. BI 7-day reverse repo rate stood at 4.75% with 6.00% term structure rate for 12-month tenor Moderate inflation rate of 3.1% in September 2016 compared to 6.8% in September 2015 20% 16% 12% 8% 4% Inflation Source: Central Bureau of Statistics (BPS) and Bank Indonesia Rupiah/USD 15.000 13.000 11.000 9.000 18.38 12.75 8.75 8.33 10.775 14.55 10.75 9.00 6.59 5.27 5.77 9,450 8,703 8,690 11,050 12.14 9.50 7.92 12.650 12,100 10,501 BI Rate (12-month term structure) 3.43 2.78 9,378 7.50 7.75 7.50 7.00 5.75 7.50 6.00 5.80 5.57 4.61 3.56 4.30 3.45 3.99 3.35 3.07 7.75 6.50 6.75 0% Jul-05 Jun-06 May-07 Apr-08 Mar-09 Feb-10 Jan-11 Dec-11 Nov-12 Oct-13 Sep-14 Aug-15 Oct-16 Jul-16 9,125 8,464 11,649 9,868 12,240 11,293 11,764 14,693 14,016 12,984 13,012 7.000 Jul-05 Dec-06 May-08 Oct-09 Mar-11 May-12 Jul-13 Jul-14 Aug-15 Oct-16 8.36 Source: Bloomberg 4
Banking sector highlights August 2016 Modest banking sector performance in August 2016 Banking Sector Financial Summary (Rp trillion) Aug-15 Dec-15 Aug-16 YTD Change YOY Change Total sector loans at Rp4,146tln (+6.8% / Rp265 tln YoY) Increase in the sector-wide NPL ratio to 3.2% Third party funds grew Rp243tln (+5.6% YoY) to Rp4,610tln Total Assets 6,011 6,129 6,383 4.1% 6.2% Total Loans 3,881 4,058 4,146 2.2% 6.8% Third Party Funds 4,367 4,413 4,610 4.5% 5.6% Current Accounts 1,042 987 1,061 7.5% 1.8% Savings 1,243 1,396 1,424 2.0% 14.6% Time Deposits 2,082 2,030 2,125 4.7% 2.1% Net Profit 68.4 104.6 74.6 N.A 9.1% System CAR 23.3%; LDR 90.0% System profitability increased 9.1% YoY to Rp74.6tln NIM 5.3% 5.4% 5.6% 20bp 30bp LDR * 88.8% 92.1% 90.0% -210bp 120bp NPL 2.8% 2.5% 3.2% 70bp 40bp CAR 20.7% 21.4% 23.3% 190bp 260bp Source: Bank Indonesia / Financial Services Authority (OJK) * LFR data is not available 5
Agenda Macro Environment Performance Overview Financial Review 6
BCA key financial highlights Outstanding loans grew Rp21.3tln or 5.8% YoY to Rp386.1tln Gross NPL ratio stood at 1.5% Third party funds increased Rp30.8tln or 6.7% YoY to Rp493.1tln CASA grew Rp31.7tln or 8.9% YoY to Rp385.4tln Time deposits stable at Rp107.7tln Net profit grew 13.2% YoY to Rp15.1tln LFR at 77.3%; CAR at 21.5% (Rp billion) Sep-15 Sep-16 YOY Change Total Assets 584,444 660,145 13.0% Outstanding Loans 364,846 386,112 5.8% Third Party Funds 462,252 493,075 6.7% Net Interest Income 26,273 29,953 14.0% Non Interest Income 8,168 9,720 19.0% Operating Expenses (16,066) (17,535) 9.1% Profit before Provisions and Tax 18,375 22,138 20.5% Pre-Tax Profit 16,838 19,000 12.8% Net Profit 13,368 15,127 13.2% EPS year to date Rp542 Rp614 Rp72 (Bank only) Sep-15 Sep-16 ROA 3.9% 4.0% ROE 22.2% 20.9% NIM 6.6% 6.9% LFR 78.1% 77.3% NPL 0.7% 1.5% CAR (credit and market risk) 22.4% 25.2% CAR (credit, market and operational risk) 19.2% 21.5% 7
Consumer loans supported overall lending performance Loans (Rp billion) 5.8% YoY loan growth High corporate loan repayment YTD 298,955 330,677 312,290 317,191 321,284 346,563 335,576 347,101 364,846 387,643 387,042 386,112 373,732 Consumer lending drove overall loan growth through 3Q16 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 September 2016 loan utilization rate of 70.3% down from 71.1% in September 2015 Loans Breakdown (Bank only, Rp billion) Sep-15 Dec-15 Sep-16 YTD Change YoY Change Corporate 126,075 141,261 133,305-5.6% 5.7% Commercial & SME 140,387 146,237 146,511 0.2% 4.4% Consumer 98,459 100,510 106,430 5.9% 8.1% Total Outstanding 364,921 388,008 386,246-0.5% 5.8% Total Facilities* 513,056 526,930 549,451 4.3% 7.1% * Including uncommitted facilities of Rp34.3tln in September 2015, Rp32.9tln in December 2015 and Rp41.3tln in September 2016 8
Mortgage market leader Fix-and-cap mortgage product remains popular 3-year 7.99% p.a fixed interest rate with additional 3-year adjustable interest rate capped at 8.99% p.a. Mortgages up 7.3% YoY Leading presence in mortgage market Total Mortgage Portfolio (Bank only, Rp trillion) 59.4 59.9 58.0 56.9 54.7 54.8 52.8 52.9 62.2 61.7 (+7.3% YoY) Mortgage lending represented 58.4% of total consumer lending and 16.1% of overall loan portfolio Competitive mortgage interest rates with NPL ratio of 0.7% Mortgage Portfolio (Bank only) Sep-15 Dec-15 Sep-16 Number of Customers Accounts 93,899 95,549 97,664 Total Outstanding (Rp billion) 57,951 59,415 62,156 Average Loan Outstanding (Rp million) 617 622 636 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 9
2,172 2,067 2,202 2,375 2,678 2,801 4,029 6,354 6,703 6,552 6,950 5,241 7,643 5,622 9,026 9,469 10,113 11,300 Maintaining solid loan loss provisions Active monitoring of loan portfolio NPL increase but expected to remain within risk appetite limits NPL ratio stood at 1.5% in September 2016 Larger loan loss reserve up 47.8% YoY to Rp 11.3 trillion in September 2016 Provision/NPL coverage of 201.0% Loan Quality (Bank only, Rp billion) Sep-15 Dec-15 Jun-16 Sep-16 Current 355,235 378,930 376,022 372,258 Special Mention 7,008 6,277 5,825 8,366 Performing Loans 362,243 385,207 381,847 380,624 Substandard 711 298 943 668 Doubtful 465 979 1,649 689 Loss 1,502 1,524 2,649 4,265 NPL 2,678 2,801 5,241 5,622 Total Loans 364,921 388,008 387,088 386,246 NPL Ratio - gross 0.7% 0.7% 1.4% 1.5% NPL Ratio - net 0.3% 0.2% 0.4% 0.4% NPL and Loan Provision (Bank only, Rp billion) 292.5% 324.2% 297.6% 292.7% 285.4% 322.2% 235.0% 193.0% 201.0% Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 NPL Loan Provision Loan Provision/NPL 10
A leading transaction banking business BCA s 15 million interconnected customer accounts benefit from the Bank s growing and diversified transaction banking platform Expanding transaction banking platform supported by 1,204 branches; 17,057 ATMs and growing EDC penetration nationwide Continued reduction of high cost in-branch transactions due to automation and innovation Branch Banking ATM Number of Transactions (million) Transaction Value (Rp trillion) 11,081.6 10,770.4 10,809.1 Number of Transactions (million) Transaction Value (Rp trillion) 1,278.3 1,369.5 1,498.8 132.9 129.5 126.8 1,238.8 1,325.7 1,369.7 Sep-14 Sep-15 Sep-16 Sep-14 Sep-15 Sep-16 Mobile Banking Internet Banking Number of Transactions (million) Transaction Value (Rp trillion) 355.1 404.2 514.8 Number of Transactions (million) Transaction Value (Rp trillion) 3,931.1 4,339.7 4,995.3 367.2 427.1 558.5 841.9 1,026.9 1,223.8 Sep-14 Sep-15 Sep-16 Sep-14 Sep-15 Sep-16 11
Solid funding base Strong liquidity with secondary reserves totaling Rp79.0tln or 16.0% of third party funds Loan to Funding Ratio stood at 77.3% Third Party Funds (Rp billion) 454,981 462,252 473,666 470,392 109,071 108,466 113,405 108,668 114,235 114,703 115,653 117,780 490,558 493,075 109,282 107,636 120,373 126,215 Total third party funds of Rp493.1tln (+6.7% / Rp30.8tln YoY) CASA (Current & Savings Accounts) grew 8.9% YoY CASA ratio 78.2% Time Deposits stable at Rp107.7tln 231,675 239,083 244,608 243,944 260,903 259,224 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Savings Accounts Current Accounts Time Deposits Third Party Funds (as of 30 September 2016) Savings Accounts 52.6% Rp493,075 billion Current Accounts 25.6% Time Deposits 21.8% 12
Maintained healthy NIM Net Interest Margin (NIM) remained healthy in September 2016 - Reduction in lending rates for corporate, commercial & SME segments in 9M16 - Increased government bond portfolio to maintain earning assets yield - 41 bps reduction in cost of funds YoY in line with low time deposit rates policy NIM, Yield and Cost of Funds (Bank only) 16% 12% 8% 4% 0% 12.67 Yield 10.66 9.10 9.78 9.93 8.29 8.03 7.79 8.61 8.58 7.37 7.12 7.49 5.28 6.09 6.40 5.29 5.68 5.90 6.18 6.61 6.88 5.76 NIM CoF 3.94 4.05 3.64 3.55 2.95 2.57 1.77 1.95 2.39 1.98 NIM (%, Bank only) 6,57 6,61 6,72 7,04 6,99 6,88 Interest Rate* 16% 13.00 12.74 12% 11.24 8,70 8,61 8,63 8,74 8,71 8,58 2,50 2,39 2,31 2,06 2,01 1,98 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 8% 4% 0% 7.43 5.50 3.75 9.50 1M SBI / BI Term Deposits 8.25 8.50 6.80 6.00 6.25 5.00 1M Rupiah Time Deposits 5.50 Savings 4.00 3.25 2.50 3.00 3.76 Rupiah Current Accounts 2.20 3.50 5.75 1.90 9.25 8.00 6.40 5.90 5.25 5.20 2.15 1.70 Earning Assets Yield Cost of Funds NIM * Maximum interest rate offered 13
Sustained profitability Combined Net Interest Income and Non Interest Income grew 15.2% YoY to Rp39.7tln Net Interest Income increased 14.0% YoY to Rp30.0tln while Non Interest Income grew 19.0% YoY to Rp9.7tln Cost Efficiency Ratio of 44.3% Consolidated Net Profit up 13.2% YoY to Rp15.1tln Profitability (Rp billion) 39,673 34,441 29,953 26,273 22,138 18,375 13,368 15,127 8,168 9,720 Sep-15 Sep-16 Net Interest Income Profit before Provisions and Tax Non Interest Income Net Profit Non Interest Income (Rp billion) 9,720 8,168 2,840 1,935 Bank-only Net Profit up 13.4% YoY to Rp 14.6tln 6,233 6,880 Sep-15 Sep-16 MTM & Trading Gains, Forex and Others Fees and Commissions 14
Quality growth through enhanced relationship Growth Expand transaction banking presence Promote a well balanced and diversified loan portfolio Strengthen subsidiaries businesses Deepen customer relationships Growth Quality Maintain and enhance the quality of: Loan portfolio Banking operations Products and services Efficiency Growth Optimize existing human resources, infrastructure and logistics Simplify operational and administration procedures Explore automated solutions 15
Agenda Macro Environment Performance Overview Financial Review 16
Balance sheet summary (Rp billion) Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 YOY Change Total Assets 571,643 584,444 594,373 603,427 626,176 660,145 13.0% Secondary Reserves gross 77,286 80,114 67,473 88,399 73,533 79,030-1.4% SBI & Other Placement in BI 63,872 74,212 60,487 82,636 68,117 73,386-1.1% Placement with other Banks 13,414 5,902 6,986 5,763 5,416 5,644-4.4% Loans 347,101 364,846 387,643 373,732 387,042 386,112 5.8% Government Bonds 32,445 31,386 30,143 36,278 44,223 71,363 127.4% Marketable Securities 16,978 16,059 15,061 15,996 24,602 24,633 53.4% Impairment on financial assets (8,276) (9,093) (10,645) (11,086) (11,876) (12,765) 40.4% Third Party Funds 454,981 462,252 473,666 470,392 490,558 493,075 6.7% Savings 231,675 239,083 244,608 243,944 260,903 259,224 8.4% Current Accounts 114,235 114,703 115,653 117,780 120,373 126,215 10.0% Time Deposits 109,071 108,466 113,405 108,668 109,282 107,636-0.8% Equity (Bank only) 81,492 85,078 87,887 96,314 99,089 107,492 26.3% Tier 1 77,591 81,083 83,684 92,266 94,851 103,226 27.3% Tier 2 3,901 3,995 4,203 4,048 4,238 4,266 6.8% Exchange Rate Rp/USD 13,333 14,650 13,785 13,260 13,213 13,051-10.9% 1) Including SBI categorized as securities sold under repurchase agreement 17 1)
Income statement summary (Rp billion) 4Q-15 1Q-16 2Q-16 3Q-16 9M-15 9M-16 YOY Change Net Interest Income 9,619 9,768 9,990 10,195 26,273 29,953 14.0% Non Interest Income 3,820 3,060 3,310 3,350 8,168 9,720 19.0% Fees and commissions 2,223 2,226 2,305 2,349 6,233 6,880 10.4% Gain on spot & derivative (realized) net 1,094 650 454 642 (167) 1,746 NA Mark to market on financial assets net (182) (284) (14) (224) 965 (522) NA Gain on sale of financial assets net 281 53 75 98 93 226 143.0% Others 404 415 490 485 1,044 1,390 33.1% Operational Expenses (5,652) (6,184) (5,889) (5,462) (16,066) (17,535) 9.1% Personnel Expenses (1,858) (3,714) (2,577) (1,990) (7,614) (8,281) 8.8% Other Expenses (3,794) (2,470) (3,312) (3,472) (8,452) (9,254) 9.5% Profit before Provisions and Tax 7,787 6,644 7,411 8,083 18,375 22,138 20.5% Provision (1,968) (989) (1,017) (1,132) (1,537) (3,138) 104.2% Pre-Tax Profit 5,819 5,655 6,394 6,951 16,838 19,000 12.8% Income Tax (1,166) (1,142) (1,326) (1,394) (3,455) (3,862) 11.8% Net Profit 4,651 4,508 5,068 5,551 13,368 15,127 13.2% 18
Financial ratios (Bank only, %) Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 ROA 3.7 3.9 3.8 3.6 3.9 4.0 ROE 21.7 22.2 21.9 19.3 20.5 20.9 NIM 6.6 6.6 6.7 7.0 7.0 6.9 CAR (credit and market risk) 22.3 22.4 21.5 23.6 23.8 25.2 CAR (credit, market and operational risk) 19.0 19.2 18.7 20.0 20.3 21.5 LFR 75.7 78.1 81.1 78.9 77.9 77.3 Cost Efficiency Ratio* 50.4 46.9 46.5 49.6 46.6 44.3 Cost to Income Ratio (BOPO)** 64.8 64.9 63.2 69.7 63.5 61.3 NPL Ratio - gross 0.7 0.7 0.7 1.1 1.4 1.5 NPL Ratio - net 0.2 0.3 0.2 0.3 0.4 0.4 Provision/NPL 292.7 285.4 322.2 235.0 193.0 201.0 NOP 1.7 0.6 0.4 0.4 0.3 0.4 19 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 EPS year to date (Rp)*** 346 542 731 183 388 614 Book Value/Share (Rp) 3,306 3,488 3,625 4,087 4,189 4,426 * Cost Efficiency Ratio = operational expenses to net interest income and non interest income ** Cost to Income Ratio (BOPO) = all expenses (operating expenses included interest expenses and provision for assets losses) to all revenues (operational income included interest income and reversal of provision for assets losses) *** Based on consolidated financial statement
Diversified earning assets composition Interest Income Contribution Earning Assets Composition (as of 30 September 2016) 100% 90% 80% 70% 60% 50% 40% 2.7% 2.7% 2.7% 2.3% 2.6% 2.6% 83.6% 84.3% 84.8% 84.9% 84.6% 84.0% Loans & Consumer Financing 67.3% Secondary Reserves 13.4% Rp590,732 billion Government Bonds 12.1% Marketable Securities & Others 7.2% Government Bonds and Loans Profile (as of 30 September 2016) 30% 20% Fixed Rate 28.7% 10% 0% 4.2% 4.2% 4.1% 4.4% 5.0% 6.0% 9.5% 8.8% 8.4% 8.4% 7.8% 7.4% Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Variable Rate 71.3% Marketable Securities & Others Government Bonds Loans & Consumer Financing Secondary Reserves 20
Breakdown of earning assets yield Sep-15 Dec-15 Sep-16 Bank Only Balance (Rp billion) Yield (%) Balance (Rp billion) Yield (%) Balance (Rp billion) Yield (%) Secondary Reserves 78,333 5.09% 65,433 4.99% 77,510 (-1.1% YoY) 4.71% Marketable Securities 15,668 5.66% 14,790 5.52% 23,988 (+53.1% YoY) Loans 364,921 10.49% 388,008 10.47% 386,246 (+5.8% YoY) Government Bonds 31,000 6.35% 29,758 6.26% 70,817 (+128.4% YoY) 5.35% 10.29% 6.55% 21
Balanced loan portfolio Loan Portfolio (Bank only, Rp billion) Loans Breakdown (Bank only, Rp billion) Consumer Commercial & SME Corporate 347,100 27.8% 364,921 27.0% 388,008 25.9% 373,776 27.3% 387,088 386,246 27.2% 27.6% Sep-15 Dec-15 Sep-16 YTD Change YoY Change Corporate 126,075 141,261 133,305-5.6% 5.7% Commercial & SME 140,387 146,237 146,511 0.2% 4.4% Consumer 98,459 100,510 106,430 5.9% 8.1% Total Outstanding 364,921 388,008 386,246-0.5% 5.8% Total Facilities* 513,056 526,930 549,451 4.3% 7.1% * Including uncommitted facilities of Rp34.3tln in September 2015, Rp32.9tln in December 2015 and Rp41.3tln in September 2016 39.6% 38.5% 37.7% 38.1% 37.8% 37.9% Outstanding Loans by Currency (as of 30 September 2016) 32.6% 34.5% 36.4% 34.6% 35.0% 34.5% IDR 93.8% Forex 6.2% Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 22
Moderate consumer loan growth Consumer Loans (Bank only, Rp billion) Credit Cards Vehicles Mortgage 98,459 96,365 100,510 102,057 9.3% 9.0% 9.4% 9.3% 31.7% 32.1% 31.5% 32.0% 105,156 106,430 9.0% 9.1% 32.3% 32.5% Consumer Loans (Bank only + vehicle loans booked by BCA Subsidiaries, Rp billion) Sep-15 Dec-15 Sep-16 YTD Change YoY Change Mortgage 57,951 59,415 62,156 4.6% 7.3% Vehicles * 31,601 31,612 34,599 9.4% 9.5% Credit Cards 8,907 9,483 9,675 2.0% 8.6% Total 98,459 100,510 106,430 5.9% 8.1% 59.0% 58.9% 59.1% 58.7% 58.7% 58.4% Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Vehicle loans booked by BCA Finance & 7,261 7,694 8,074 4.9% 11.2% CS Finance ** Grand Total 105,720 108,204 114,504 5.8% 8.3% * Including 2 wheeler financing of Rp4.4tln in September 2015, Rp4.3tln in December 2015 and Rp4.1tln in September 2016 ** Including 2 wheeler financing of Rp2.0tln in September 2015, Rp2.1tln in December 2015 and Rp1.8tln in September 2016 23
Diversified industry concentration Top Ten Industry Sectors in Corporate, Commercial and SME Sectors Sep-15 Dec-15 Sep-16 1. Building Material and Other Construction Related 7.3% 7.1% 7.8% 2. Distributor, Wholesaler and Retailer 6.2% 6.1% 7.0% 3. Plantation and Agriculture 6.8% 6.7% 6.9% 4. Automotive and Transportation 6.4% 6.1% 5.9% 5. Transportation and Logistics 5.2% 5.3% 5.5% 6. Food and Beverages 4.7% 4.9% 5.3% 7. Properties and Construction 4.8% 4.6% 5.2% 8. Chemicals and Plastics 5.8% 6.1% 5.2% 9. Tourism 5.2% 5.1% 4.9% 10. Textile and Garment 4.5% 4.7% 4.6% Total 56.9% 56.7% 58.3% 24
NPL maintained at a low level NPL by Loan Segments (%) NPL by Consumer Loans (%) Sep-14 Sep-15 Sep-16 Sep-14 Sep-15 Sep-16 4,4% 4,1% 2.3% 3,5% 0.4% 0.1% 0.9% 0.7% 1.2% 0.8% 0.8% 0.9% 0,5% 0,5% 0,7% 0,7% 0,7% 0,7% 1,3% 1,6% 1,4% Corporate Commercial & SME Consumer Mortgage 2 Wheeler 4 Wheeler Credit Card 25
231,675 239,083 244,608 243,944 260,903 259,224 114,274 114,742 115,681 117,855 120,426 126,251 109,075 108,471 113,409 108,672 109,286 107,640 Active management of third party funds Third Party Funds & Cost of Funds (Bank only, Rp billion) Interest Rate Adjustments* 2.50% 2.39% 2.31% 2.06% 2.01% 1.98% 14.0% 13.00 12.0% 12.00 1 Month Rupiah Time Deposits 10.0% 8.0% 6.0% 4.0% 2.0% 9.50 8.50 8.50 7.00 6.50 6.25 5.00 6.00 5.50 4.75 4.00 Savings 4.00 3.50 3.00 Rupiah Current Accounts 2.50 2.25 6.25 4.50 5.75 3.50 2.20 7.50 9.25 1.90 8.00 7.00 5.75 5.25 2.15 1.70 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Time Deposits Current Accounts Savings Accounts Cost of Funds 0.0% * Maximum interest rate offered 26
Cost efficiency ratio Quarterly Operating Income & Expense (Rp billion) and YTD Cost Efficiency Ratio (%) 50.4% 46.9% 46.5% 49.6% 46.6% 44.3% 11,663 11,815 13,439 12,828 13,300 13,545 Operating Income Operating Expense YTD Cost Efficiency Ratio (Bank only) 5,507 4,813 5,652 6,184 5,889 5,462 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 Quarterly Breakdown of Operating Expenses (Rp billion) Personnel Expenses Other Expenses 2,391 3,116 2,953 1,860 1,858 3,794 3,714 2,470 2,577 3,312 3,472 1,990 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 27
Thank you
Appendix 29
Government bonds profile Government Bond Maturity (Bank only, Rp billion) Nominal Value as of 30 September 2016 25,600 17,192 Fixed Rate [Rp 68,018 billion (98.3%)] Variable Rate [Rp 1,170 billion (1.7%)] 9,392 9,190 5,127 1,070 595-100 - - - 286-418 - 39-6 - 13-86 - 2-72 - Maturity 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2031 2036 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2031 2036 Total Trading - 23 1,058 633 722 1,285 106 - - 6 13 86 2 72 4,006 Available for Sale 1,665 7,571 15,486 3,148 7,995 4,696 170 418 - - - - - - 41,149 Investment - 1,798 9,156 1,346 8,475 3,209 10-39 - - - - - 24,033 Total 1,665 9,392 25,700 5,127 17,192 9,190 286 418 39 6 13 86 2 72 69,188 30
BCA maintains 7 subsidiaries in 5 business lines Business lines Subsidiaries Business overview Vehicle Financing Insurance (acquired: 2001) (established: 2010) (acquired: 2010) (established: 2013) One of the largest 4-wheeler financing companies in Indonesia Offering attractive products with competitive interest rates through a joint financing scheme with BCA Maintaining a quality loan portfolio through prudent lending policies and by focusing on financing popular car models Multi-finance company engaged in 2-wheeler financing through joint financing with BCA Enhancing the risk management infrastructure and pursuing prudent marketing strategies Expanding general insurance presence by offering insurance products to BCA s consumer finance customers Setting up a solid base for providing life insurance products to BCA s diversified customer base Securities Sharia Banking Remittance (acquired: 2011) (acquired: 2009) (acquired: 1996) Building a solid securities business by focusing on wholesale underwriting and retail brokerage Leader in the fixed income underwriting market Offering Sharia banking products to a growing market Became a BUKU II category Sharia bank in 2015 Enhancing cross-border remittance business BCA s trade finance representative in Hong Kong 31
BCA credit ratings Fitch Ratings Moody s Published on April 2016 Published on August 2016 Description Rating Description Rating Outlook Stable Outlook Stable Local long term rating AAA (idn) Bank Deposits Baa3 / P-3 Baseline Credit Assessment baa3 Issuer default long term rating BBB- Adjusted Baseline Credit Assessment baa3 Issuer default short term rating F3 Counterparty Risk Assessment Baa2(cr) / P-2(cr) Support rating 3 Issuer Rating Baa3 32
BCA share performance BCA Shareholding Structure (as of 30 September 2016) FarIndo Investments (Mauritius) Ltd qualitate qua (qq) Mr. Robert Budi Hartono and Mr. Bambang Hartono * Number of Shares Ownership Percentage 11,625,990,000 47.15% Anthony Salim 434,079,976 1.76% Public ** 12,594,940,024 51.09% Total 24,655,010,000 100.00% * Referring to letter of Bank Indonesia No. 12/21/DPB3/TPB3-7 dated February 25, 2010, The Ultimate shareholders of FarIndo Investments (Mauritius) Ltd ("FarIndo") are Mr. Robert Budi Hartono and Mr. Bambang Hartono ** In the composition of Shares held by the public, 3.19% of the shares are owned by parties affiliated with the Ultimate Shareholders; 0.02% are held by Mr. Robert Budi Hartono and 0.02% by Mr. Bambang Hartono BCA Share Performance vs IDX (28 December 2007 to 24 October 2016) BCA 18.000 16.000 14.000 12.000 10.000 8.000 6.000 4.000 2.000-850 Jan-08 Feb-09 Mar-10 Apr-11 May-12 Jun-13 Aug-14 Oct-15 Oct-16 Relative Performance 385% 335% 285% 235% 185% 135% 85% 35% -15% BCA IDX BCA IDX (RHS) IDX 5.850 5.350 4.850 4.350 3.850 3.350 2.850 2.350 1.850 1.350-65% Jan-08 Feb-09 Mar-10 Apr-11 May-12 Jun-13 Aug-14 Oct-15 Oct-16 33
BCA winning awards - 2016 AsiaMoney AsiaMoney Bisnis Indonesia Brand Finance & SWA Magazine Contact Center World Corporate Governance Poll 2015 Best for Shareholders' Rights and Equitable Treatment in Indonesia Asiamoney Summer Awards Dinner 2016 BCA Best Domestic Provider of FX Services and Best Domestic Provider of FX Research & Market Coverage in Indonesia as voted by Corporates Bisnis Indonesia Banking Award 2016 The Best Performance Bank for the BUKU IV category Jahja Setiaatmadja Banker of the year Indonesia s 100 Most Valuable Brands BCA Ranked 6 th Most Valuable Indonesian Brand 2016 at US$ 1,141 million Contact Center World Awards 2016 13 Gold Medals 5 Silver Medals 5 Bronze Medals Economic Review Magazine Economic Review Magazine & Perbanas Institute Euromoney FinanceAsia FinanceAsia Indonesia Human Capital Awards 2016 The Big 5 for category Human Capital (2 nd place overall) The Best for category Private Listed Company (1 st place) Perbankan Indonesia Award 2016 2 nd place for BUKU IV category 1 st place for Human Capital & Marketing 2 nd place for GCG, Risk Management, Legal, CSR & Corporate Communication 3 rd place for IT Euromoney Awards for Excellence 2016 The Best Bank in Indonesia Asia s Best Companies 2016 (Indonesia) Jahja Setiaatmadja Best CEO (1 st place) Best Managed Companies (1 st place) Most Committed to Corporate Governance (1 st place) Best Investor Relations (5 th place) Best at Corporate Social Responsibility (5 th place) FinanceAsia Country Awards for Achievement 2016 Best Asian Bank Best Bank in Indonesia 34
BCA winning awards - 2016 Forbes Forbes Indonesia Magazine Frontier Consulting Group & Marketing Magazine Frontier Consulting Group & Tempo Media Indonesia Contact Center Association (ICCA) The Global 2000 Awards 2016 BCA One of the World s Biggest Public Companies of 2016 Best of the Best Awards 2016 BCA One of the Top 50 Companies for 2016 Top Brand Award 2016 In recognition of outstanding achievements in building the Top Brand for the categories: Deposit Account Prepaid Card Flazz Internet Banking KlikBCA Mobile Banking m-bca Saving Account Tahapan BCA Credit Card Call Center Halo BCA Corporate Image Award 2016 BCA The Best in Building and Managing Corporate Image for the category National Bank with Assets > Rp250 trillion The Best Contact Center Indonesia 2015 17 platinum awards 12 gold awards 11 silver awards 6 bronze award Indonesian Stock Exchange (IDX) Infobank Infobank & Marketing Research Indonesia Infobank Investor Magazine & Berita Satu Media Holding Yuk Nabung Saham Campaign 2016 Certificate of Appreciation for the participation in the Yuk Nabung Saham Campaign 5 th Infobank Digital Brand of the Year 2016 Wealth Management (1 st place) Conventional Bank (1 st place) Debit Card (1 st place) Credit Card (1 st place) Savings Accounts (2 nd place) Mortgage (2 nd place) Time Deposits (3 rd place) BCA The Best Digital Brand 2011-2015 (mortgage Conventional Bank) Banking Service Excellence Award 20156 Best ATM Public Area (1 st place) Best Mobile Banking (2 nd place) Best Internet Banking (3 rd place) Infobank Awards 2016 Bank with Excellent Financial Performance in 2015 Awarded Titanium Trophy for Excellent Financial Performance in 2001-2015 Investor Best Bank 2016 The Best Bank in Indonesia for Category Commercial Bank with asset > Rp 100 trillion 35
BCA winning awards - 2016 Kontan Magazine & GML Performance Consulting Marketing Magazine Markplus.Inc Markplus.Inc Markplus.Inc & Nikkei BP Consulting. Inc. Stellar Workplace Award Best Stellar Workplace for Large Size Employer Stellar Workplace in Employee Commitment and Employee Satisfaction Social Media & Digital Marketing Award 2016 Great Performing Brand in Social Media for credit cards Great Performing Product in Social Media for credit cards, internet banking, debit cards, SMS banking and e-wallet Great Performing Website for Banking Indonesia Digital Economy Award (IDEA) 2016 BCA (KlikBCA) as The Best Company in Banking Industry Indonesia WOW Service Excellence Award 2016 Gold Champion of Jabodetabek in Conventional Banks (BUKU IV) category Brand Asia 2016 BCA The Most Powerful Financial Institution Bank Brand in Indonesia Marketeers & Markplus.Inc Marketeers & Markplus.Inc MillwardBrown & WPP Obsession Media Group Philip Kotler Center & Markplus.Inc Marketeer of the Year Jabodetabek 2016 (Jakarta Marketing Week 2016) Freddy Suliman (Head of Regional Office XII) as Marketeer of the Year in the Marketing category Marketeers Youth, Women, Netizen Award 2016 (Jakarta Marketing Week 2016) Nathalya Wani (Head of Halo BCA) received an award in the Women category BrandZ Top 50 Most Valuable Indonesian Brands 2016 BCA recognized as the Most Valuable Brand in Indonesia Obsession Awards 2016 Jahja Setiaatmadja Lifetime Achievement Award Best Private Sectors Achiever in Banks category Indonesia Champion for ASEAN Economic Community Award 2016 ASEAN Marketing Summit BCA named honoree 36
BCA winning awards - 2016 Property & Bank Magazine Properti Indonesia Magazine Service Excellence Magazine & Carre CCSL Service Excellence Magazine & Carre CCSL Service Excellence Magazine & Carre CCSL Indonesia Property & Bank Award 2016 Jahja Setiaatmadja CEO of the year BCA Leader in Banking Services and Technology 4 th Properti Indonesia Award 2016 as The Leading Home Loan Bank in recognition of great achievement in property industry Service Quality Award 2016 BCA Received Diamonds for the Categories: Regular Banking Platinum Credit Card Regular Credit Card Priority Banking Excellent Service Experience Award (ESEA) 2016 Excellent Performance in Delivering Positive Customer Experience based on Experience Audit ESEI 2016 for Industry Category: Regular Banking Contact Center Service Excellence Award 2016 Good Service Performance: BCA KlikPay, KlikBCA, E-Channel, HaloBCA, Sharia Banking Excellent Award: Halo BCA Twitter Customer Service Exceptional Award: Halo BCA Categories: Regular Banking, Credit Card, Customer Service Email Center & Platinum Credit Card Solo Pos & Harian Jogja SWA Magazine SWA Magazine SWA Magazine & Hachiko Net Promoter SWA Magazine & Hay Group Solo Best Brand Index - Jogja Best Brand Index 2016 BCA Best Brand in Solo for categories: Savings Accounts Credit Card Internet Banking Indonesia Living Legend Brands 2016 BCA as The Living Legend Brand Indonesia Most Creative Companies 2016 BCA as one of Indonesia s Most Creative Companies Net Promoter Customer Loyalty Award 2016 The Net Promoter Score Leader for categories: Internet Banking KlikBCA Mobile Banking m-bca Mortgage Credit Card The Net Promoter Good for category: Savings Account Indonesian Employer of Choice 2015 BCA the winner of Indonesian Employer of Choice in recognition of outstanding performance 37
BCA winning awards - 2016 SWA Magazine & University of Indonesia Economic Faculty Management Institution SWA Magazine & NBO Group SWA Magazine & Stern Value Management SWA Magazine & MARS Telkomsel HR Excellence Award 2016 The 1 st Champion of HR Excellent Award for the category: Reward Management Indonesia Best Companies in Creating Leaders from Within 2016 BCA Platinum Champion in Financial Category SWA 100: Indonesia s Best Wealth Creators 2016 Indonesia Best Overall Public Companies (4 th Place) ASEAN Best Overall Public Companies (6 th Place) Indonesia Best Brand Award (IBBA) Best Brand Platinum 2016 Best Brand for category: Savings Accounts Credit Card For the achievement of IBBA for 9 consecutive years (2008 2016) Modern Channel Award 2015 BCA The Best Contributor for Banking Channel Tempo Media & Indonesia Banking School The Asian Banker The Asian Banker The Asian Banker The Asian Banker Indonesia Banking Awards 2016 For Category: Conventional Bank with asset > Rp 100 trillion The Best Bank in Retail Banking Services The Best Bank in Digital Services The Most Reliable Bank The Most Efficient Bank The Best Bank in Diversity The International Excellence in Retail Financial Services Award 2016 Jahja Setiaatmadja The Retail Banker of the Year in Asia Pacific The Asian Banker Transaction Banking Awards 2016 BCA Best FX Bank in Indonesia Indonesia Country Awards Programme 2016 for Retail Financial Services Best Retail Bank Best Mortgage Business Best Mobile Payment Project The Asian Banker Leadership Achievement Awards 2016 Jahja Setiaatmadja Best Performing Chief Executive in the Financial Industry in Indonesia BCA Best Managed Bank in Indonesia 38
BCA winning awards - 2016 The Asian Banker Warta Ekonomi Magazine Warta Ekonomi Magazine Warta Ekonomi Magazine Strongest Banks 2016 by Balance Sheet BCA as one of the strongest Indonesia banks by Balance Sheet 5th Social Business Innovation Award 2016 Awarded Social Business Innovation Company Award 2016 for the Private Bank category Indonesia Most Admired Company 2016 BCA Indonesia s Most Admired Company 2016 for the Banking Category based on a national survey in Indonesia Indonesia Digital Innovation Award for Banking 2016 BCA Best of the Best for BUKU IV category in Digital Innovation Award for Banking 2016 39