PT Bank Rakyat Indonesia (Persero) Tbk. FY 2016 - Financial Update Presentation
Outline Financial Updates (consolidated) Financial Update 1. Financial Highlight 8 2. Balance Sheet 9 3. Loan Mix and Growth 10 4. Loan Asset Quality.. 11 5. Deposits Mix and Growth. 12 6. Income Statement 13 Business Updates: 1. Micro Banking.. 15 2. Small Commercial and Medium Loans... 20 3. Consumer Loans.. 22 4. SoE and Corporate Loans... 24 5. Fee Based Income.... 26 Key Take Aways........ 28 Target 2017...... 30 Appendixes...... 32 2
BRI (Consolidated) 3
Financial Highlights (Consolidated) Asset/Liabilities 2015 Q1'16 1H'16 9Mo'16 2016 yoy Total Assets (IDR Billion) 878,426 864,939 907,843 931,693 1,003,644 14.3% Total Loans (Gross) (IDR Billion) 581,095 584,276 615,576 630,902 663,420 14.2% Total Deposits (IDR Billion) 668,995 658,736 683,739 694,843 754,526 12.8% Asset Quality NPL (gross) 2.10% 2.29% 2.39% 2.31% 2.13% Liquidity LDR 86.86% 88.70% 90.03% 90.80% 87.93% CASA 57.82% 55.18% 55.63% 56.13% 59.09% Profitability Net Profit (IDR Billion) 25,411 6,252 12,182 18,975 26,228 3.2% Subsidiaries Profit Contribution 0.81% 1.84% 1.11% 1.86% 1.81% NIM 7.91% 8.02% 8.25% 8.23% 8.10% ROE Tier 1 29.05% 26.73% 23.62% 22.26% 21.80% ROA before tax 3.99% 3.58% 3.51% 3.45% 3.67% Cost Efficiency Ratio (CER) 43.68% 43.22% 44.38% 44.29% 43.68% Operating Expense to Operating Income 67.81% 72.33% 72.65% 73.51% 70.33% Capital Tier1 CAR 16.68% 15.84% 18.21% 20.48% 21.54% Total CAR 20.39% 19.38% 21.65% 21.46% 22.69% Note: Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T Tier 1 CAR in Q3 2016 increased due to reclassification of appropriated reserve (Tier 2) to retained earning (Tier 1) 4
Balance Sheet (consolidated) Note: Description 2012 2013 2014 2015 2016 YoY Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T Tier 1 CAR in Q3 2016 increased due to reclassification of appropriated reserve (Tier 2) to retained earning (Tier 1) IDR Billion Total Assets 551,337 626,183 801,984 878,426 1,003,644 14.3% - Gross Loans 362,007 448,345 510,697 581,095 663,420 14.2% - Government Bonds (Recap) 4,316 4,511 4,304 3,816 3,318-13.0% - Other Earnings Assets 132,720 115,690 213,094 197,021 237,338 20.5% Total Earning Assets 499,042 568,546 728,094 781,931 904,077 15.6% Earning Assets Provision (14,916) (15,419) (16,163) (17,515) (22,807) 30.2% Total Earning Assets (net) 484,126 553,127 711,931 764,416 881,270 15.3% Total Non Earning Assets 67,211 73,055 90,053 114,010 122,375 7.3% Total Liabilities & S.E 551,337 626,183 801,984 878,426 1,003,644 14.3% Total Customer Deposits 450,166 504,281 622,322 668,995 754,526 12.8% - Demand Deposits 80,075 79,337 90,052 114,367 142,547 24.6% - Saving Deposits 184,365 212,997 236,395 272,471 303,270 11.3% - Time and Certificate Deposits 185,726 211,948 295,875 282,157 308,709 9.4% Other Interest Bearing Liabilities 15,784 20,896 57,435 68,601 70,349 2.5% Non Interest Bearing Liabilities 20,505 21,678 24,522 27,703 31,956 15.4% Tier I Capital 52,325 67,270 83,344 93,437 139,786 49.6% Total Shareholder's Equity 64,882 79,327 97,706 113,127 146,813 29.8% 5
Income Statement (consolidated) IDR Billion Description 2012 2013 2014 2015 2016 YoY Interest Income 49,610 59,461 75,122 85,434 94,788 10.9% Interest Expense (13,127) (15,355) (23,680) (27,154) (27,212) 0.2% Net Interest Income 36,484 44,106 51,442 58,280 67,576 16.0% Net Premium Income 64 Fee & Other Opr. Income 8,390 8,348 9,299 13,855 17,218 24.3% Gross Operating Income 44,873 52,455 60,741 72,135 84,858 17.6% Other Operating Expenses (19,491) (22,381) (26,715) (31,276) (37,101) 18.6% Pre Provision Operating Profit 25,382 30,074 34,026 40,860 47,757 16.9% Provision (2,700) (3,946) (5,719) (8,900) (13,791) 55.0% Non Operating Income (Net) 1,177 1,782 2,497 535 9-98.3% Profit Before Tax n Minor. Int. 23,860 27,910 30,804 32,494 33,977 4.6% Net Profit 18,687 21,354 24,227 25,411 26,228 3.2% EPS 757.5 865.6 982.1 1,030.1 1,063.2 3.2% 6
BRI (Bank Only) 7
Financial Highlights Asset/Liabilities 2015 Q1'16 1H'16 9Mo'16 2016 yoy Total Assets (IDR Billion) 845,998 832,092 872,970 894,360 964,001 13.9% Total Loans (Gross) (IDR Billion) 558,436 561,098 590,691 603,461 635,291 13.8% Total Deposits (IDR Billion) 642,774 631,781 656,122 665,529 723,845 12.6% Asset Quality NPL (gross) 2.02% 2.22% 2.31% 2.22% 2.03% NPL (nett) 1.22% 1.35% 1.43% 1.18% 1.09% Liquidity LDR 86.88% 88.81% 90.03% 90.68% 87.77% CASA 59.21% 56.54% 56.89% 57.61% 60.57% Profitability Net Profit (IDR Billion) 25,204 6,137 12,047 18,623 25,753 2.2% NIM 8.13% 8.09% 8.43% 8.41% 8.27% ROE Tier 1 29.89% 26.55% 25.24% 23.97% 23.08% ROE B/S 24.39% 21.44% 20.51% 20.00% 19.98% ROA before tax 4.19% 3.65% 3.68% 3.59% 3.84% Cost of Fund (CoF) 4.24% 3.98% 3.96% 3.89% 3.83% Cost Efficiency Ratio (CER) 43.81% 42.06% 43.59% 43.56% 42.77% Operating Expense to Operating Income 67.96% 71.11% 71.39% 71.56% 68.93% Capital Tier1 CAR 16.76% 15.84% 18.56% 20.88% 21.91% Total CAR 20.59% 19.49% 22.10% 21.88% 22.91% Note: Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T Tier 1 CAR in Q3 2016 increased due to reclassification of appropriated reserve (Tier 2) to retained earning (Tier 1) NPL (nett) is after provision for impaired loan Note: Numbers stated in this page are bank only 8
Balance Sheet (IDR Billion) Description 2015 Mar'16 Jun'16 Sep'16 2016 g(yoy) g(qoq) Total Assets 845,998 832,092 872,970 894,360 964,001 13.9% 7.8% - Gross Loans 558,436 561,098 590,691 603,461 635,291 13.8% 5.3% - Government Bonds (Recap) 3,816 3,818 3,817 3,818 3,318-13.0% -13.1% - Other Earnings Assets 190,735 195,829 180,245 196,168 230,252 20.7% 17.4% Total Earning Assets 752,987 760,744 774,753 803,447 868,862 15.4% 8.1% Earning Assets Provision (17,030) (18,657) (20,567) (22,326) (21,944) 28.9% -1.7% Total Earning Assets (net) 735,957 742,087 754,186 781,121 846,918 15.1% 8.4% Total Non Earning Assets 110,041 90,004 118,784 113,239 117,083 6.4% 3.4% Total Liabilities & S.E 845,998 832,092 872,970 894,360 964,001 13.9% 7.8% Total Customer Deposits 642,774 631,781 656,122 665,529 723,845 12.6% 8.8% - Demand Deposits 112,989 108,150 109,202 115,204 140,764 24.6% 22.2% - Savings 267,607 249,037 264,054 268,186 297,649 11.2% 11.0% - Time Deposits 262,178 274,593 282,866 282,139 285,432 8.9% 1.2% Other Interest Bearing Liabilities 67,712 55,725 61,441 63,646 68,659 1.4% 7.9% Non Interest Bearing Liabilities 23,120 32,673 22,755 25,430 26,038 12.6% 2.4% Tier I Capital 89,992 89,915 110,333 132,066 136,670 51.9% 3.5% Total Shareholder's Equity 112,392 111,913 132,652 139,755 145,458 29.4% 4.1% Book Value per Shares *) 4,555.96 4,536.57 5,377.23 5,665.16 5,896.34 29.4% 4.1% Note: Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T Tier 1 CAR in Q3 2016 increased due to reclassification of appropriated reserve (Tier 2) to retained earning (Tier 1) Note: Numbers stated in this page are bank only 9
Loan Mix and Growth Loans Outstanding by business segment (IDR Trillion) 590.7 603.5 558.4 561.1 90.9 81.2 78.5 83.5 79.7 77.3 75.1 76.4 20.2 18.5 19.8 20.5 110.3 113.0 114.5 106.9 635.3 92.8 84.1 21.0 125.7 Composition by business segment (%) 14.5 14.0 14.1 15.1 14.6 13.4 13.6 13.5 12.8 13.2 3.6 3.3 3.4 3.4 3.3 20.5 19.0 18.7 18.7 19.8 88.5 91.2 94.4 96.8 100.2 15.8 16.3 16.0 16.0 15.8 32.0 33.8 34.3 33.9 33.3 178.9 189.7 202.9 204.8 211.5 2015 Mar-16 Jun-16 Sept-16 2016 2015 Mar-16 Jun-16 Sept-16 2016 Micro Consumer Small Commercial Medium Corporate Non-SoE SoE Total Loan 635.3 Note: Numbers stated in this page are bank only 558.4 92.8 10
4.81 4.28 6.43 5.73 6.67 2.03 2.02 2.22 2.22 2.31 Loan Asset Quality Non Performing Loan - gross (%) Restructured Loan by Segment (%) Restructured Loan by quality (%) NPL (%) 2015 Mar-16 Jun-16 Sep-16 2016 Micro 1.13 1.54 1.49 1.34 0.99 Consumer 1.30 1.48 1.53 1.53 1.18 Sml. Com 2.90 3.78 3.78 3.66 2.70 Medium 5.82 6.68 6.45 6.52 7.13 Corp. Non-SoE 4.78 3.78 4.67 4.78 5.61 SoE - - - - - Micro Consumer Small Commercial Medium Corporate Non-SoE SoE Total NPL 2.02 2.22 2.31 Micro 2.22 Consumer 2.03 Small Commercial Medium Corporate Non-SoE SoE Total Loan Total Restructured loan in FY 16 Rp37.1T 635.3 Special Mention (%) Special Mention Composition by segment (%) NPL (%) Gross Special Mention (%) 430.6 348.2 49.8 38.0 16.5 75.6 61.5 Dec-15 Mar-16 Jun-16 Sept-16 Dec-16 Note: Numbers stated in this page are bank only 62.5 47.7 20.3 94.0 73.9 18.6 11.3 1.4 16.3 30.5 31.5 28.6 53.1 8.7 558.4 558.4 92.8 Micro Consumer Small Commercial Medium Corporate Non-SoE SoE To 490.4 81.2 490.4 81.2 7.9 11.1 84.1 430.6 12.7 11.1 7.9 19.6 8.0 75.1 5.0 21.0 74.1 8.4 558.411.2 74.1 5.0 75.1 62.5 7.4 5.1 20.23.9 348.2 4.4 57.1 26.0 57.1 20.2 26.1 47.7 490.4 125.7 20.2 28.3 81.2 27.9 20.2 25.4 49.8 114.5 20.3 13.2 12.6430.6 114.5 38.0 105.1 9.9 11.2 75.1 11.2 105.1 16.5 94.0 74.1 62.5 57.1 20.2 348.2 40.0 75.6 100.2 37.2 88.5 33.3 20.2 34.3 34.6 47.7 88.5 80.6 49.8 80.6 114.5 20.3 73.9 61.5 38.0 105.1 Des 16.5 15 Mar 1694.0 Jun 16 Sep 16 Des 16 11 75.6 88.5 106.8 132.1 153.3 178.9
262.2 267.6 274.6 249.0 282.9 264.1 282.1 268.2 285.4 297.6 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 40.8% 59.2% 43.5% 56.5% 43.1% 56.9% 42.4% 57.6% 39.4% 60.6% 17.00% 15.00% 13.00% 11.00% 9.00% 7.00% 5.00% 3.00% 1.00% -1.00% Deposits Mix and Growth Deposits: Trend Deposits Composition, COF & BI Rate (%) (IDR Trillion) 642.8 631.8 656.1 665.5 723.8 4.24% 3.98% 3.96% 3.89% 3.83% 113.0 108.2 109.2 115.2 140.8 2015 Mar-16 Jun-16 Sept-16 2016 2015 Mar-16 Jun-16 Sept-16 2016 Time Deposit Demand Deposit Saving TOTAL High Cost Low Cost COF Note: Numbers stated in this page are bank only 12
Income Statement (IDR Billion) Description 2015 2016 g(yoy) Q1'16 Q2'16 Q3'16 Q4'16 g(qoq) Interest Income 82,221 90,808 10.4% 21,840 23,169 22,929 22,870-0.3% Interest Expense (25,710) (25,612) -0.4% (6,514) (6,484) (6,361) (6,253) -1.7% Net Interest Income 56,511 65,196 15.4% 15,326 16,685 16,569 16,617 0.3% Fee & Other Opr. Income * 13,670 16,679 22.0% 3,663 4,681 3,588 4,747 32.3% Gross Operating Income 70,181 81,875 16.7% 18,989 21,366 20,157 21,364 6.0% Other Operating Expenses (29,889) (35,129) 17.5% (8,025) (9,720) (8,929) (8,454) -5.3% Pre Provision Operating Profit 40,292 46,746 16.0% 10,963 11,645 11,228 12,910 15.0% Provision (8,581) (13,320) 55.2% (3,589) (3,750) (3,782) (2,198) -41.9% Non Operating Income (Net) 500 15-97.0% 220 (110) 87 (182) -309.8% Profit Before Tax n Minor. Int. 32,211 33,442 3.8% 7,595 7,785 7,533 10,530 39.8% Net Profit 25,204 25,753 2.2% 5,785 6,263 6,575 7,131 8.4% *) Detail on the Fee & Other Operating Income on page 36 Note: Numbers stated in this page are bank only 13
Business Updates 14
Micro Banking 15
Micro Banking Loan Micro Loans (IDR Trillion) YoY g = 18.2% 132.1 153.3 24.5 178.9 211.5 51.0 12.7 5.6 4.2 0.6 15.1 Micro Borrowers (Million) YoY g = 13.5% 5.6 2.2 6.5 2.7 7.3 3.0 7.9 0.9 1.1 1.5 8.9 4.1 0.7 0.2 New Micro KUR Micro KUR 106.8 15.1 91.7 20.8 111.4 128.8 145.5 155.7 3.4 3.9 4.3 4.4 4.0 Kupedes Rakyat Kupedes Micro Loan 2012 2013 2014 2015 2016 NPL Micro Loans (%) 2012 2013 2014 2015 2016 1.09 1.04 1.12 1.13 0.99 Total Micro loans increased 18.2% yoy, with number of borrowers reaching 8.9 million. New KUR support the micro loan growth. The outstanding reached IDR51 trillion and 4.1 million borrowers and NPL at 0.55% as of FY16 2012 2013 2014 2015 2016 Note: Numbers stated in this page are bank only 16
Micro Banking - Deposit Micro Funding, providing liquidity from stable core funding Micro Deposits (IDR Trillion) Micro Deposits Composition 0.8% 14.4% Dec 15 Dec 16 YoY g = 12.0% 192.1 215.1 14.2% 1.0% 14.7% 0.6% 166.2 146.2 126.6 84.8% 84.8% 84.6% Demand Deposit Saving Time Deposit 2012 2013 2014 2015 2016 Micro deposits grew 12.0% yoy, lead by saving with 11.7% YoY growth Savings, with composition of 84.6%, still dominates micro deposits Note: Numbers stated in this page are bank only 17
Micro Banking Teras BRI Teras BRI - more accessible, getting closer to customers TerasBRI - Performance IDR Trillion 25 20 2128 3500 3179 3182 3067 3179 3000 26713067 3154 3193 3500 21.5 3000 2671 2500 15 2128 16.9 13.5 10 13.5 1304 10.0 10.0 5.3 8.5 5 6.3 2.9 5.3 2.3 5.1 5.1 6.3 1.0 2.3 0 16.9 20.6 2500 2000 2000 16.1 1500 10.3 1500 8.5 9.3 1000 1000 7.5 500 500 0 0 2011 2012 2013 20132014 2014 2015 2015 Sep'15 2016 Sep'16 Loan Deposit # of Teras BRI Loan Note: Numbers stated in this page are bank only TerasBRI - Contribution to Micro Loan & Deposit Loan 5.0% 5.0% 7.6% 7.6% 8.8% 8.8% 9.8% 9.8% 10.2% 2012 2013 2014 2015 2016 2016 Loan in Teras 10.2% TerasBRI continuously shows strong performance with loan growth of 27.2% and deposit growth of 21.2% yoy. Contribution of Teras BRI to Micro business performance keep increasing, in Dec 16 reached 10.2% and 4.8% of total micro loan and deposit Deposit 1.8% 3.5% 3.8% 4.4% 4.8% 2012 2013 2014 2015 2016 Deposit in Teras 18
BRILink create business, reach the un-banked BRILink is utilization of BRI s e-banking infrastructure by third parties (BRILink Agent) through fee sharing scheme # of Agent # of Transaction Transaction Volume # agent # trx (in Million) 68.2% YoY 316.8% YoY 287.5% YoY 98.4 84,550 # trx volume (in Rp Trillion) 139.1 50,259 59,318 65,341 69,552 60.2 87.5 23.6 15.1 35.2 35.9 21.0 50.8 Dec'15 Mar'16 Jun'16 Sep'16 Dec'16 Dec'15 Mar'16 Jun'16 Sep'16 Dec'16 Dec'15 Mar'16 Jun'16 Sep'16 Dec'16 GENT # TRX # of Agent - Distribution # of Transaction - Distribution Transaction Volume - Distribution # TRX Mid & Eastern Part 24% Sumatra 22% Java 53% Mid & Eastern Part, 26% Sumatra, 30% Java, 44% Mid & Eastern Part 32% Sumatra 36% Java 32% In Dec 16, Java (53%) dominates the Agent distribution Note: Numbers stated in this page are bank only In line with the Agent distribution, Java dominates the total BRILink transaction However, Sumatra with 36%, dominates the transaction volume 19
Small Commercial & Medium Loans 20
220.0 170.0 120.0 70.0 20.0-30.0 70.2 87.1 97.4 108.5 118.9 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% -1.00% -2.00% -3.00% 25.0 20.0 15.0 10.0 5.0 0.0 16.5 20.3 20.2 20.2 21.0 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Small Commercial & Medium Loans Small Commercial Medium YoY g = 9.8% (IDR Trillion) YoY g = 4.0% (IDR Trillion) 3.75% 7.13% 3.13% 3.21% 2.90% 2.70% 75.6 94.0 6.9 105.1 7.6 114.5 3.3 2.7 125.7 5.9 0.9 5.09% 4.38% 5.91% 5.82% 5.4 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Total Loan NPL Commercial Non KUR Retail KUR New Retail KUR Total Loan NPL Note: Numbers stated in this page are bank only 21
Consumer Loans 22
Consumer Loan Loan Outstanding (IDR Trillion) Composition YoY g = 13.8% 61.5 12.5 73.9 16.4 80.6 18.2 88.5 19.0 100.2 21.9 1.9% 1.8% Dec 15 17.8 % Dec 16 78.1 % 49.0 57.5 62.4 69.5 78.2 78.6 % 1.6% 18.1 % 2012 2013 2014 2015 2016 Salary Based Loan Other NPL (%) 1.60 1.40 1.21 1.30 1.18 2.2% Others Vehicle Loans Mortgage Salary Based Loan Increase salary based loan with growth of 12.5% YoY 1.8% 1.9% and maintaining NPL17.9% level around 0.8% 2012 2013 2014 2015 2016 Note: Numbers stated in this page are bank only 78.4% 23
SoE & Corporate Loans 24
SOE & Corporate Loan Grow the corporate segment in priority sectors to help maintain quality mix. Loan Outstanding Trend (IDR Trillion) By Business Segment SOE Corporate Total 176.8 SOE Loans Transportation 7.17% YoY g 13.1% 110.2 131.2 156.3 75.1 84.1 Mining 1.80% Oil & Gas 0.01% Others 9.59% Agribusiness 26.10% 87.8 38.0 49.8 47.7 62.5 57.1 74.1 81.2 92.8 2012 2013 2014 2015 2016 NPL Trend (%) 0.47 0.38 0.77 2.30 2.66 2012 2013 2014 2015 2016 NPL - Trend 2012 2013 2014 2015 2016 Corporate 1.00% 0.87% 1.78% 4.78% 5.61% SOE 0.00% 0.00% 0.00% 0.00% 0.00% Note: Numbers stated in this page are bank only Corporate Loans Oil & Gas 5.44% Mining 3.89% Infrastructure, Utilities 6.06% Others 12.33% Infrastructure, Utilities 37.72% Industry 24.31% Industry 14.91% Transportation 2.75% Agribusiness 43.32% Construction 1.89% Construction 2.71% 25
Fee Based Income 26
Fee Based Income - composition Dec 15 Dec 16 Fee Based Income 515 7% 595 8% 129 2% 283 4% 1,637 22% 286 4% 3,907 53% 1,171 13% 887 10% 184 2% 306 3% 380 4% 2,246 24% 4,037 44% YoY g = 25.3% 3.9 4.9 6.1 7.4 9.2 (Nominal in billion) Deposit Adm Deposit Fee Deposit Adm Fee Adm Deposit E-Banking Fee Adm Related Fee E-Banking Fee E-Banking Related Related E-Banking Loan Fee Adm FeeRelated FeeLoan Fee Adm Loan Fee Adm Fee Loan Int'l Business Adm FeeRelated Int'l Business Int'l Fee Business Related Int'l Related Business Fee FeeRelated Fee Credit Card Credit Credit Card CardCredit Payment CardService Payment Payment Service Service Payment Others Service Others Others Others 2012 2013 2014 2015 2016 FBI (Rp Trillion) Fee based income grew at 25.3% (yoy) and currently FBI to Total Income reach 8.6% Loan admin fee increased yoy, 127.5%, raising it s portion from 7% to 13% of the total Fee Based Income. Note: Numbers stated in this page are bank only 27
Key Take Aways 28
Key Take Aways Stable loan growth in FY16 of 14.2% yoy was supported by Micro, Consumer and SOE segments. Improving NIM due to lower COF. Stable loan quality reflected in NPL of 2.13%. Moderate growth of EPS by 3.2% yoy to provide better bank only NPL coverage ratio of 170.3% in FY16. 29
Target 2017 30
Target 2017 Loan Growth : 12% 14% LDR : 90% +/- 2% NPL : 2.2% - 2.4% Credit Cost : 2.2% - 2.4% Coverage Ratio : 160%-170% NIM : 8% - 8.2% OPEX Growth : 15% - 18% CER : 43% - 45% Net Profit Growth : 3% - 5% Note: Numbers stated in this page are bank only 31
Appendixes 32
Financial Ratios Description 2015 Q1'16 1H'16 9Mo'16 2016 Cost of Fund (COF) 4.24% 3.98% 3.96% 3.89% 3.83% Loan to Deposit Ratio 86.88% 88.81% 90.03% 90.68% 87.77% Net Interest Margin (NIM) 8.13% 8.09% 8.43% 8.41% 8.27% NPL ratio - Gross 2.02% 2.22% 2.31% 2.22% 2.03% NPL ratio - Nett 1.22% 1.35% 1.43% 1.18% 1.09% Earning Asset Provision 2.37% 2.54% 2.75% 2.89% 2.75% Opr. Expense to Opr. Income 67.96% 71.11% 71.39% 71.56% 68.93% Cost Efficiency Ratio (CER) 43.81% 42.06% 43.59% 43.56% 42.63% Tier I CAR 16.76% 15.84% 18.56% 20.88% 21.91% Total CAR 20.59% 19.49% 22.10% 21.88% 22.91% Return on Assets (ROA) - b.t 4.19% 3.65% 3.68% 3.59% 3.84% Return on Assets (ROA) - a.t 3.28% 2.95% 2.88% 2.92% 2.96% Return on Equity (ROE) - Tier I 29.89% 26.55% 25.24% 23.97% 23.08% Return on Equity (ROE) - B/S 24.39% 21.44% 20.51% 20.00% 19.98% Primary Reserve Requirement 9.31% 6.52% 6.54% 6.64% 6.94% Net Open Position 2.33% 5.13% 3.29% 10.56% 6.67% CASA 59.21% 56.54% 56.89% 57.61% 60.57% Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T Tier 1 CAR in Q3 2016 increased due to reclassification of appropriated reserve (Tier 2) to retained earning (Tier 1) Note: Numbers stated in this page are bank only 33
Sources of Income Total Income IDR Billion Total Income 2015 2016 g(yoy) Q1'16 Q2'16 Q3'16 Q4'16 g(qoq) Interest income 82,221 90,808 10.4% 21,840 23,169 22,929 22,870-0.3% Fee & Other Opr.Income 13,670 16,679 22.0% 3,663 4,680 3,588 4,747 32.3% Non Operating Income (net) 500 15-97.0% 220 (110) 87 (182) -309.8% Total Income 96,391 107,502 11.5% 25,724 27,739 26,604 27,435 3.1% Interest Income IDR Billion Interest Income 2015 2016 g(yoy) Q1'16 Q2'16 Q3'16 Q4'16 g(qoq) Interest from Loans 73,376 80,957 10.3% 19,165 20,631 20,816 20,345-2.3% Int. from Other Earning Assets 8,845 9,852 11.4% 2,675 2,538 2,113 2,526 19.5% Total Interest Income 82,221 90,809 10.4% 21,840 23,169 22,929 22,871-0.3% Fee & Other Operating Income IDR Billion Fee & Other Operating Income 2015 2016 g(yoy) Q1'16 Q2'16 Q3'16 Q4'16 g(qoq) Gain Fr Value Increase of Securities and Govt. Recap Bonds 63 374 490.8% 78 133 99 63-36.3% Gain fr unrealized change fair value and Govt. Recap Bonds 3 6 (9) - -100.0% Fees and Commissions 7,352 9,210 25.3% 1,967 2,175 2,427 2,641 8.8% Gain fr Forex 458 - - - - - Recovery 3,780 4,461 18.0% 947 1,078 999 1,438 43.9% Others 2,017 2,634 30.6% 668 1,289 72 605 735.6% Total Fee & Other Opr. Income 13,670 16,679 22.0% 3,663 4,680 3,588 4,747 32.3% Note: Numbers stated in this page are bank only 34
Other Operating Expenses IDR Billion Other Operating Expenses 2015 2016 g(yoy) Q1'16 Q2'16 Q3'16 Q4'16 g(qoq) Personnel 15,961 17,648 10.6% 4,264 5,664 4,461 3,259-26.9% General and Administration 9,918 11,325 14.2% 2,416 2,818 2,613 3,478 33.1% Losses fr decrease of Securities and Govt. Bonds value 7 - - - 2 (2) -200.0% Losses from forex transaction - 272 73 180 201 (182) -190.8% Premium Paid on Govt Guarantees 1,248 1,308 4.8% 320 320 334 334 0.0% Promotion 858 1,265 47.3% 168 307 224 566 152.7% Others 1,897 3,312 74.6% 785 430 1,094 1,002-8.5% Total Other Opr. Expenses 29,889 35,129 17.5% 8,025 9,720 8,929 8,454-5.3% Note: Numbers stated in this presentation are bank only 35
Others 36
The Most Extensive and Largest Networks Regional Office Distribution RO Banda Aceh RO Medan RO Pekanbaru RO. Banjarmasin RO. Makassar RO. Manado RO. Papua RO. Padang RO. Palembang RO. Lampung RO. Semarang RO. Surabaya & Malang Regional Offices Branch Offices RO. Jakarta 1, 2, and 3 RO. Yogyakarta RO. Bandung RO. Denpasar Outlets 2012 2013 2014 2015 2016 YoY Head Offices 1 1 1 1 1 - Regional Offices 18 18 19 19 19 - Branches 446 453 461 467 467 - Sub Branches 545 565 584 603 609 6 BRI Units 5,000 5,144 5,293 5,360 5,380 20 Cash Offices 914 950 971 983 984 1 Teras BRI 1,778 2,206 2,457 2,543 2,545 2 Teras Mobile 350 465 610 636 638 2 Total 9,052 9,802 10,396 10,612 10,643 31 Sub-Branch Offices Cash Counter E-Channel 2012 2013 2014 2015 2016 YoY ATM 14,292 18,292 20,792 22,792 24,292 1,500 EDC 44,715 85,936 131,204 187,758 257,712 69,954 CRM 92 192 392 892 1,392 500 E-Buzz 42 50 55 57 57 - Total 59,141 104,470 152,443 211,499 283,453 71,954 BRI Unit Teras BRI *Total working units are including 4 overseas offices Note: Numbers stated in this presentation are bank only 37
Ratings BRI Rating Country Rating - Long Term Foreign Currency IDR BBB-, Stable Outlook - Short Term Foreign Currency IDR F3 - Support Rating Floor BBB- - Support Rating 2 - Viability Rating bb+ - National Long-Term Rating AAA (idn), Stable Outlook - Rupiah Subordinated Debt A+ (idn) - Senior Unsecured Notes BBB- - Outlook Stable - Long Term Foreign Issuer Credit BB+ - Long Term Local Issuer Credit BB+ - Short Term Foreign Issuer Credit B - Short Term Local Issuer Credit B - Outlook Stable - Bank Deposit Baa3/P-3 - Bank Financial Strength D+ - Baseline Credit Assessment Baa3 - Adjusted Baseline Credit Assessment Baa3 - Senior Unsecured Notes Baa3 PEFINDO - National Rating id AAA, Stable Outlook Standard and Poors Fitch Moody's Japan Credit Rating Agency FITCH STANDARD AND POORS MOODY'S Indonesia Sovereign Ratings BB+, Positive Outlook BBB-, Stable Outlook Baa3, Stable Outlook BBB-, Stable Outlook 38
Millions Shareholders & Stock Performance Shareholders Composition Shareholder 2003 2010 2011 2012 2013 2014 2015 2016 Government 59.50% 56.75% 56.75% 56.75% 56.75% 56.75% 56.75% 56.75% Public 40.50% 43.25% 43.25% 43.25% 43.25% 43.25% 43.25% 43.25% Foreign 79.06% 85.11% 83.93% 82.84% 78.94% 82.49% 78.12% 80.12% Domestic 20.94% 14.84% 16.07% 17.16% 21.06% 17.51% 21.88% 19.88% Stock Price: Trend BBRI Stock is member of: JCI Index LQ45 Index (Top 45 liquid stocks) SRI KEHATI Index (a UN affiliated biodiversity Index of 25 stocks) 2500 2000 1500 1000 500 volume Last price 14000 12000 10000 8000 6000 4000 2000 0 0 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 39
5 Years Data
5 Years Data Balance Sheet (IDR Billion) Description 2012 2013 2014 2015 2016 g(yoy) Total Assets 535,209 606,370 778,046 845,998 964,001 13.9% - Gross Loans 348,227 430,618 490,403 558,436 635,291 13.8% - Government Bonds (Recap) 4,316 4,511 4,304 3,816 3,318-13.0% - Other Earnings Assets 131,547 115,168 211,325 190,735 230,252 20.7% Total Earning Assets 484,089 550,297 706,031 752,987 868,862 15.4% Earning Assets Provision (14,584) (15,072) (15,785) (17,030) (21,944) 28.9% Total Earning Assets (net) 469,505 535,225 690,246 735,957 846,918 15.1% Total Non Earning Assets 65,704 71,145 87,800 110,041 117,083 6.4% Total Liabilities & S.E 535,209 606,370 778,046 845,998 964,001 13.9% Total Customer Deposits 436,098 486,366 600,404 642,774 723,845 12.6% - Demand Deposits 78,753 78,017 89,076 112,989 140,764 24.6% - Savings 182,643 210,004 232,414 267,607 297,649 11.2% - Time Deposits 174,702 198,346 278,915 262,178 285,432 8.9% Other Interest Bearing Liabilities 14,466 19,873 56,677 67,712 68,659 1.4% Non Interest Bearing Liabilities 20,008 21,261 23,784 23,120 26,038 12.6% Tier I Capital 51,593 65,964 82,109 89,992 136,670 51.9% Total Shareholder's Equity 64,637 78,870 97,181 112,392 145,458 29.4% Book Value per Shares *) 2,620.17 3,197.11 3,939.37 4,555.96 5,896.34 29.4% Note: Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T Tier 1 CAR in Q3 2016 increased due to reclassification of appropriated reserve (Tier 2) to retained earning (Tier 1) Note: Numbers stated in this page are bank only 41
5 Years Data Income Statement (IDR Billion) Description 2012 2013 2014 2015 2016 g(yoy) Interest Income 47,922 57,301 72,466 82,221 90,808 10.4% Interest Expense (12,461) (14,395) (22,346) (25,710) (25,612) -0.4% Net Interest Income 35,461 42,906 50,120 56,511 65,196 15.4% Fee & Other Opr. Income 8,166 8,165 9,178 13,670 16,679 22.0% Gross Operating Income 43,627 51,071 59,298 70,181 81,875 16.7% Other Operating Expenses (18,602) (21,284) (25,458) (29,889) (35,129) 17.5% Pre Provision Operating Profit 25,025 29,788 33,840 40,292 47,746 16.0% Provision (2,555) (3,916) (5,613) (8,581) (13,320) 55.2% Non Operating Income (Net) 1,169 1,776 2,497 500 15-97.0% Profit Before Tax n Minor. Int. 23,639 27,648 30,724 32,211 33,442 3.8% Net Profit 18,521 21,160 24,176 25,204 25,753 2.2% EPS 750.8 857.8 980.0 1,021.7 1,044.0 2.2% Note: Numbers stated in this page are bank only 42
5 Years Data Ratios Description 2012 2013 2014 2015 2016 Cost of Fund (COF) 3.68% 3.71% 4.38% 4.24% 3.83% Loan to Deposit Ratio 79.85% 88.54% 81.68% 86.88% 87.77% Net Interest Margin (NIM) 8.42% 8.55% 8.51% 8.13% 8.27% NPL ratio - Gross 1.78% 1.55% 1.69% 2.02% 2.03% NPL ratio - Nett* 0.34% 0.31% 0.36% 1.22% 1.09% Earning Asset Provision 3.43% 2.90% 2.40% 2.37% 2.75% Opr. Expense to Opr. Income 59.93% 60.58% 65.42% 67.96% 68.93% Cost Efficiency Ratio (CER) 43.11% 42.13% 43.18% 43.81% 42.77% Tier I CAR 15.86% 16.13% 17.54% 16.76% 21.91% Total CAR 16.95% 16.99% 18.31% 20.59% 22.91% Return on Assets (ROA) - b.t 5.15% 5.03% 4.73% 4.19% 3.84% Return on Assets (ROA) - a.t 4.04% 3.85% 3.72% 3.28% 2.96% Return on Equity (ROE) - Tier I 38.66% 34.11% 31.19% 29.89% 23.08% Return on Equity (ROE) - B/S 32.41% 30.10% 27.87% 24.39% 19.98% Primary Reserve Requirement 10.64% 8.02% 8.07% 9.31% 6.94% Net Open Position 3.00% 3.15% 3.86% 2.33% 6.67% CASA 59.94% 59.22% 53.55% 59.21% 60.57% Note: Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T Tier 1 CAR in Q3 2016 increased due to reclassification of appropriated reserve (Tier 2) to retained earning (Tier 1) NPL (nett) is after provision for impaired loan (2015 and 2016) Note: Numbers stated in this page are bank only 43
5 Years Data Loan Outstanding (IDR Trillion) 635.3 Loan Composition (%) YoY g = 13.8% 348.2 49.8 38.0 16.5 75.6 61.5 430.6 62.5 47.7 20.3 94.0 73.9 490.4 74.1 57.1 20.2 105.1 80.6 558.4 81.2 75.1 20.2 114.5 88.5 92.8 84.1 21.0 125.7 100.2 14.3 14.5 15.1 14.5 14.6 10.9 11.1 11.6 13.4 13.2 4.7 4.7 4.1 3.6 3.3 21.7 21.8 21.4 20.5 19.8 17.6 17.2 16.4 15.8 15.8 30.7 30.7 31.3 32.0 33.3 106.8 132.1 153.3 178.9 211.5 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Loan Quality Micro Consumer Small Commercial Medium Corporate Non-SoE SoE Total Loan 635.3 NPL (%) 2012 2013 2014 2015 2016 Micro 1.09 1.04 1.12 1.13 0.99 Consumer 1.60 1.40 1.21 430.6 1.30 1.18 Sml. Com 3.75 3.13 3.21 2.90 2.70 62.5 Medium 5.09348.2 4.38 5.91 5.82 7.13 Corp. Non-SoE 1.0049.8 0.87 47.7 1.78 20.3 4.78 5.61 SoE -38.0 - - - - 16.5 94.0 Total NPL 1.78 1.55 1.69 2.02 2.03 490.4 105.1 75.6 80.6 Note: Numbers stated in this presentation are bank only 73.9 61.5 74.1 57.1 20.2 558.4 92.8 SML (%) 2012 2013 2014 2015 2016 MICRO 81.2 6.81 84.1 6.37 7.15 6.00 4.45 CONSUMER 4.59 75.1 21.0 4.51 4.60 4.02 3.04 SMALL COMMERCIAL 7.38 7.12 6.80 6.09 6.05 20.2 MEDIUM 8.80 125.7 7.87 7.03 6.67 5.10 CORPORATE 114.5 4.52 7.19 9.50 2.82 3.59 SOE 1.26 0.00 3.05 2.60 3.30 Total SML 5.59 100.2 5.45 6.30 4.81 4.28 88.5 44
174.7 182.6 198.3 210.0 278.9 232.4 262.2 267.6 285.4 297.6 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 40.1% 59.9% 40.8% 59.2% 46.5% 53.5% 40.8% 59.2% 39.4% 60.6% 17.00% 15.00% 13.00% 11.00% 9.00% 7.00% 5.00% 3.00% 1.00% -1.00% 5 Years Data Deposits: Trend Deposits Composition, COF & BI Rate (%) (IDR Trillion) YoY g = 12.6% 723.8 600.4 642.8 486.4 436.1 3.41% 3.71% 4.38% 4.24% 3.83% 78.8 78.0 89.1 113.0 140.8 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Time Deposit Demand Deposit Saving TOTAL High Cost Low Cost COF Note: Numbers stated in this presentation are bank only 45
Notes..............................
Notes..............................
PT BANK RAKYAT INDONESIA (Persero) Tbk. Investor Relations 20 th floor BRI I Building Jl Jendral Sudirman Kav 44-46 Jakarta 10210 Indonesia Phone : 62 21 5752006/09, 5751952/79 Fax. : 62 21 5752010 Website : www.ir-bri.com E-mail : ir@bri.co.id Disclaimer: This report has been prepared by PT Bank Rakyat Indonesia (Persero) Tbk (Bank BRI) independently and is circulated for the purpose of general information only. It is not intended to the specific person who may receive this report. The information in this report has been obtained from sources which we deem reliable. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this report constitute our judgment as of this date and are subject to change without prior notice. We disclaim any responsibility or liability without prior notice of Bank BRI and/or their respective employees and/or agents whatsoever arising which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither Bank BRI and/or its affiliated companies and/or their respective employees and/or agents accepts liability for any errors, omissions, negligent or otherwise, in this report and any inaccuracy herein or omission here from which might otherwise arise.