Corporate Presentation Maintaining a Solid Position Jan Sep 2017 Results PT Bank Central Asia Tbk Jakarta, 26 th October 2017
Table of contents Macro Environment page Macroeconomic environment 4 Banking sector highlights August 2017 5 Performance Overview BCA key financial highlights 7 Moderate YoY loan growth 8 Strong mortgage performance driven by low interest rate Maintaining solid loan loss provisions 10 A leading transaction banking business 11 Solid funding base 12 Lower net interest margin 13 Sustained profitability 14 Quality growth through enhanced relationship 15 9 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 8 subsidiaries in 6 business lines 31 BCA credit ratings 32 BCA share performance 33 BCA winning awards 34 2
Agenda Macro Environment Performance Overview Financial Review 3
Macroeconomic environment Bank Indonesia forecasts 2017 economic growth of 5.0%-5.4% Continuing uncertainty in the global economy Stimulus through government spending on infrastructure projects and Bank Indonesia s monetary policy easing Inflation rate increased to 3.7% in Sept-17 from 3.1% in Sept-16 Rupiah stable in 9M17 7-day reverse repo rate reduced twice in 2017, each time by 25 bps, to 4.25% in Sept-17 The rate remained unchanged at 4.75% from Oct-16 to Aug-17 Inflation and BI Rates (%) 20% 16% 12% 8% 4% 18.38 12.75 8.75 8.33 Inflation 14.55 10.75 9.00 BI Rate (12-month term structure) Source: Central Bureau of Statistics (BPS) and Bank Indonesia Rupiah/USD Source: Bloomberg 6.59 5.27 5.77 12.14 9.50 7.92 8.61 8.36 7.75 7.50 6.50 6.75 7.75 7.50 7.00 5.75 7.50 6.00 5.30 5.80 5.57 4.61 3.56 4.30 3.99 3.72 3.35 2.79 3.43 2.78 0% Jul-05 Jan-07 Jul-08 Jan-10 Jul-11 Jan-13 Jul-14 Mar-16 Oct-17 15,000 13,000 11,000 9,000 10,775 9,450 8,703 8,690 11,050 12,650 12,100 10,501 9,378 9,125 8,464 11,649 9,868 12,240 11,293 11,764 14,693 14,016 12,984 13,012 13,519 7,000 Jul-05 Jan-07 Jul-08 Feb-10 Jul-11 Oct-12 Dec-13 Jan-15 Mar-16 Oct-17 4
Banking sector highlights August 2017 Modest banking sector performance Total sector loans of Rp4,489tln (+8.3% / Rp343 tln YoY) Sector-wide NPL ratio stood at 3.0% Banking Sector Financial Summary (Rp trillion) Aug-16 Dec-16 Aug-17 YTD YOY Change Change Total Assets 6,383 6,730 7,029 4.4% 10.1% Total Loans 4,146 4,377 4,489 2.6% 8.3% Third Party Funds 4,610 4,837 5,053 4.5% 9.6% Total sector third party funds grew Rp443tln (+9.6% YoY) to Rp5,053tln Current Accounts 1,061 1,124 1,152 2.5% 8.6% Savings 1,424 1,552 1,545-0.5% 8.5% System CAR 23.3%; LDR 89.2% Time Deposits 2,125 2,161 2,356 9.0% 10.9% Net Profit 74.6 106.5 87.8 n.a 17.7% System profitability increased 17.7% YoY to Rp87.8tln NIM 5.6% 5.6% 5.3% -30bp -30bp LDR * 90.0% 90.7% 89.2% -150bp -80bp NPL 3.2% 2.9% 3.0% 10bp -20bp CAR 23.3% 22.9% 23.3% 40bp 0bp 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 Rp53.5tln or 13.9% YoY to Rp439.7tln Gross NPL ratio stood at 1.5% Third party funds increased Rp81.3tln or 16.5% YoY to Rp574.4tln CASA grew Rp42.6tln or 11.0% YoY to Rp428.0tln Time deposits increased Rp38.7tln or 36.0% YoY to Rp146.4tln Net profit grew 11.3% YoY to Rp16.8tln LFR at 74.7%; CAR at 23.6% (Rp billion) Sep-16 Dec-16 Sep-17 YTD Change YOY Change Total Assets 660,145 676,739 739,883 9.3% 12.1% Outstanding Loans 386,112 415,896 439,657 5.7% 13.9% Third Party Funds 493,075 530,134 574,387 8.3% 16.5% Net Interest Income 29,953 40,215 30,972 n.a 3.4% Non Interest Income 9,720 13,568 10,751 n.a 10.6% Operating Expenses (17,535) (23,383) (18,787) n.a 7.1% Profit before Provisions & Tax 22,138 30,400 22,936 n.a 3.6% Pre-Tax Profit 19,000 25,839 21,107 n.a 11.1% Net Profit 15,127 20,606 16,842 n.a 11.3% EPS year to date Rp614 Rp836 Rp683 n.a 11.2% (Bank only) Sep-16 Dec-16 Sep-17 YTD Change YOY Change ROA 4.0% 4.0% 3.8% -20bp -20bp ROE 20.9% 20.5% 19.1% -140bp -180bp NIM 6.9% 6.8% 6.2% -60bp -70bp LFR 77.3% 77.1% 74.7% -240bp -260bp NPL 1.5% 1.3% 1.5% 20bp 0bp CAR (credit and market risk) 25.2% 25.6% 28.0% 240bp 280bp CAR (credit, market and operational risk) 21.5% 21.9% 23.6% 170bp 210bp 7
Moderate YoY loan growth 13.9% YoY loan growth supported by corporate and consumer loans Stronger corporate loan demand, particularly in second quarter 2017 Loans (Rp billion) 364,846 330,677 346,563 335,576 347,101 387,643 387,042 386,112 373,732 415,896 408,693 433,258 439,657 Low interest rate on consumer loan products contributed to strong growth Repayment of commercial and SME working capital facilities led to a YTD reduction in the segment s loans outstanding September 2017 loan utilization rate of 69.8% lower than 70.3% in September 2016 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Loans Breakdown (Bank only, Rp billion) Sep-16 Dec-16 Sep-17 YTD Change YoY Change Corporate 133,305 154,872 161,527 4.3% 21.2% Commercial & SME 146,511 151,852 150,025-1.2% 2.4% Consumer 106,430 109,555 128,332 17.1% 20.6% Total Outstanding 386,246 416,279 439,884 5.7% 13.9% Total Facilities* 549,451 575,057 629,991 9.6% 14.7% * Including uncommitted facilities of Rp41.3tln in Sep-16, Rp38.6tln in Dec-16 and Rp48.8tln in Sep-17 8
Strong mortgage performance driven by low interest rate Competitive mortgage interest rates support BCA s strategic position BCA launched attractive program in first half 2017, driving growth in mortgages outstanding Mortgages remain a mainstay of BCA s consumer loan portfolio Mortgages up 26.8% YoY to Rp78.8tln, comprising 61.4% of total consumer lending Mortgage quality remained solid with NPL ratio of 1.0% Total Mortgage Portfolio (Bank only, Rp trillion) 64.0 61.7 62.2 59.4 59.9 58.0 56.9 66.1 75.3 78.8 (+26.8% YoY) Mortgage Portfolio (Bank only) Sep-16 Dec-16 Sep-17 Number of Customers Accounts 97,664 97,856 102,729 Total Outstanding (Rp billion) 62,156 63,959 78,836 Average Loan Outstanding (Rp million) 636 654 767 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 9
2,678 2,801 4,029 7,643 5,241 5,622 5,452 6,025 6,373 9,026 6,729 9,469 10,113 11,300 12,505 12,250 12,511 12,842 Maintaining solid loan loss provisions Loan Quality (Bank only, Rp billion) Active monitoring of loan portfolio Total NPLs increased but within risk appetite limits NPL ratio steady at 1.5% in September 2017 Loan loss reserves up 13.6% YoY to Rp 12.8 trillion in September 2017 Provision/NPL coverage of 190.8% Sep-16 Dec-16 Jun-17 Sep-17 Current 372,258 404,385 416,428 425,369 Special Mention 8,366 6,442 10,805 7,786 Performing Loans 380,624 410,827 427,233 433,155 Substandard 668 535 1,320 1,622 Doubtful 689 523 742 825 Loss 4,265 4,394 4,311 4,282 NPL 5,622 5,452 6,373 6,729 Total Loans 386,246 416,279 433,606 439,884 NPL Ratio - gross 1.5% 1.3% 1.5% 1.5% NPL Ratio - net 0.4% 0.3% 0.4% 0.4% NPL and Loan Provision (Bank only, Rp billion) 285.4% 322.2% 235.0% 193.0% 201.0% 229.4% 203.3% 196.3% 190.8% Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 NPL Loan Provision Loan Provision/NPL 10
A leading transaction banking business BCA s 16 million interconnected customer accounts benefit from the Bank s growing and diversified transaction banking platform Expanding transaction banking platform supported by 1,225 branches, 17,314 ATMs and more than 460,000 EDC s nationwide. Only 3% of transactions are in-branch. In-branch transactions account for 57% of transactions by value Continued reduction of high cost in-branch transactions due to automation and innovation Branch Banking ATM Number of Transactions (million) Transaction Value (Rp trillion) 10,770.4 10,809.1 10,272.8 Number of Transactions (million) Transaction Value (Rp trillion) 1,369.5 1,498.8 1,610.6 129.5 126.8 119.3 1,325.7 1,369.7 1,414.7 Sep-15 Sep-16 Sep-17 Sep-15 Sep-16 Sep-17 Mobile Banking Internet Banking Number of Transactions (million) Transaction Value (Rp trillion) 514.8 697.9 Number of Transactions (million) Transaction Value (Rp trillion) 4,339.7 4,995.3 5,565.2 404.2 427.1 558.5 822.4 1,026.9 1,223.8 1,493.4 Sep-15 Sep-16 Sep-17 Sep-15 Sep-16 Sep-17 11
Solid funding base Strong liquidity with secondary reserves totaling Rp95.7tln or 16.7% of third party funds Third Party Funds (Rp billion) 530,134 535,145 490,558 493,075 121,929 129,725 109,282 107,636 572,247 574,387 145,292 146,390 Loan to Funding Ratio stood at 74.7% 120,373 126,215 137,853 137,126 148,654 144,716 Total third party funds of Rp574.4tln (+16.5% / Rp81.3tln YoY) CASA (Current & Savings Accounts) grew 11.0% YoY CASA ratio 74.5% Time Deposits increased 36.0% YoY to Rp146.4tln 260,903 259,224 270,352 268,294 278,301 283,281 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Savings Accounts Current Accounts Time Deposits Third Party Funds (as of 30 September 2017) Savings Accounts 49.3% Current Accounts 25.2% Time Deposits 25.5% Rp574,387 billion 12
Lower net interest margin Lower earning assets yield and NIM: - Lending rates under pressure beginning 4Q16 Marginal increase in cost of funds despite aggressive downward adjustment of time deposits rates 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 8.71 8.63 8.58 7.37 7.12 7.49 7.98 5.28 6.09 6.40 5.29 5.68 5.90 6.18 6.53 6.72 6.88 6.19 5.76 NIM CoF 3.94 4.05 3.64 3.55 2.95 2.57 1.77 1.95 2.61 2.31 1.98 2.09 NIM (ytd,%, Bank only) Interest Rate* 16% 6.99 6.88 6.81 6.32 6.26 6.19 12% 13.00 12.74 11.24 8.71 8.58 8.48 8.12 8.05 7.98 2.01 1.98 1.97 2.05 2.07 2.09 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 8% 4% 0% 7.43 5.50 3.75 1M SBI / BI Term Deposits 9.50 8.25 8.50 6.80 6.00 6.25 5.75 5.00 1M Rupiah Time Deposits Savings 4.00 5.50 3.25 2.50 3.00 3.50 3.76 Rupiah Current Accounts 2.20 1.90 9.25 8.00 6.75 6.40 5.90 5.25 1.70 6.00 4.75 4.58 2.15 1.60 Earning Assets Yield Cost of Funds NIM * Maximum interest rate offered 13
Sustained profitability Combined Net Interest Income and Non Interest Income grew 5.2% YoY to Rp41.7tln Net Interest Income increased 3.4% YoY to Rp31.0tln while Non Interest Income grew 10.6% YoY to Rp10.7tln Bank-only Cost Efficiency Ratio of 45.0% Consolidated Net Profit up 11.3% YoY to Rp16.8tln Profitability (Rp billion) 39,673 41,723 30,972 29,953 22,138 22,936 15,127 16,842 9,720 10,751 Sep-16 Sep-17 Net Interest Income Profit before Provisions and Tax Non Interest Income Net Profit Non Interest Income (Rp billion) 10,751 9,720 3,184 2,840 Bank-only Net Profit up 10.3% YoY to Rp16.2tln 6,880 7,567 Sep-16 Sep-17 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 digital solutions 15
Agenda Macro Environment Performance Overview Financial Review 16
Balance sheet summary (Rp billion) Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 YOY Change Total Assets 626,176 660,145 676,739 689,596 738,199 739,883 12.1% Secondary Reserves gross 73,533 79,030 60,320 80,862 77,625 95,651 21.0% SBI & Other Placement in BI 68,117 73,386 51,441 74,180 67,659 87,536 19.3% Placement with other Banks 5,416 5,644 8,879 6,682 9,966 8,115 43.8% Loans 387,042 386,112 415,896 408,693 433,258 439,657 13.9% Government Bonds 44,223 71,363 66,585 68,592 64,890 65,042-8.9% Marketable Securities 24,602 24,633 29,303 28,802 31,261 32,207 30.7% Impairment on financial assets (11,876) (12,765) (13,915) (13,860) (14,276) (14,535) 13.9% Third Party Funds 490,558 493,075 530,134 535,145 572,247 574,387 16.5% Savings 260,903 259,224 270,352 268,294 278,301 283,281 9.3% Current Accounts 120,373 126,215 137,853 137,126 148,654 144,716 14.7% Time Deposits 109,282 107,636 121,929 129,725 145,292 146,390 36.0% Equity (Bank only) 99,089 107,492 110,190 115,580 118,458 124,992 16.3% Tier 1 94,851 103,226 105,542 111,050 113,599 120,082 16.3% Tier 2 4,238 4,266 4,648 4,530 4,859 4,910 15.1% Exchange Rate Rp/USD 13,213 13,051 13,473 13,326 13,328 13,472 3.2% 1) Including SBI categorized as securities sold under repurchase agreement 17 1)
Income statement summary (Rp billion) 4Q-16 1Q-17 2Q-17 3Q-17 9M-16 9M-17 YOY Change Net Interest Income 10,262 10,072 10,300 10,600 29,953 30,972 3.4% Non Interest Income 3,848 3,432 3,617 3,702 9,720 10,751 10.6% Fees and commissions 2,524 2,379 2,556 2,632 6,880 7,567 10.0% Gain on spot & derivative (realized) net 107 232 325 91 1,746 648-62.9% Mark to market on financial assets net 361 13 12 94 (522) 119 NA Gain on sale of financial assets net 292 194 114 262 226 570 152.2% Others 564 614 610 623 1,390 1,847 32.9% Operational Expenses (5,848) (6,988) (6,259) (5,540) (17,535) (18,787) 7.1% Personnel Expenses (2,106) (4,034) (2,830) (2,110) (8,281) (8,974) 8.4% Other Expenses (3,742) (2,954) (3,429) (3,430) (9,254) (9,813) 6.0% Profit before Provisions and Tax 8,262 6,516 7,658 8,762 22,138 22,936 3.6% Provision (1,423) (248) (688) (893) (3,138) (1,829) -41.7% Pre-Tax Profit 6,839 6,268 6,970 7,869 19,000 21,107 11.1% Income Tax (1,345) (1,279) (1,421) (1,556) (3,862) (4,256) 10.2% Net Profit 5,479 4,990 5,545 6,307 15,127 16,842 11.3% 18
Financial ratios (Bank only, %) Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 ROA 3.9 4.0 4.0 3.5 3.7 3.8 ROE 20.5 20.9 20.5 17.1 18.3 19.1 NIM 7.0 6.9 6.8 6.3 6.3 6.2 CAR (credit and market risk) 23.8 25.2 25.6 27.7 26.2 28.0 CAR (credit, market and operational risk) 20.3 21.5 21.9 23.1 22.1 23.6 LFR 77.9 77.3 77.1 75.1 74.5 74.7 Cost Efficiency Ratio* 46.6 44.3 43.9 52.8 48.6 45.0 Cost to Income Ratio (BOPO)** 63.5 61.3 60.4 65.2 61.8 59.9 NPL Ratio - gross 1.4 1.5 1.3 1.5 1.5 1.5 NPL Ratio - net 0.4 0.4 0.3 0.4 0.4 0.4 Provision/NPL 193.0 201.0 229.4 203.3 196.3 190.8 NOP 0.3 0.4 0.2 0.2 0.6 0.2 19 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 EPS year to date (Rp)*** 388 614 836 202 427 683 Book Value/Share (Rp) 4,189 4,426 4,560 4,791 4,892 5,164 * 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 2017) 100% 90% 80% 70% 60% 50% 2.6% 2.6% 2.8% 3.5% 3.4% 3.5% 84.6% 84.0% 83.5% 81.3% 81.6% 81.2% Loans & Consumer Financing 68.0% Secondary Reserves 14.4% Rp664,188 billion Government Bonds 9.8% Marketable Securities & Others 7.8% 40% 30% 20% 10% 0% 5.0% 6.0% 6.7% 8.7% 8.6% 8.3% 7.8% 7.4% 7.0% 6.5% 6.4% 7.0% Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Government Bonds and Loans Profile (as of 30 September 2017) Variable Rate 69.8% Fixed Rate 30.2% Marketable Securities & Others Government Bonds Loans & Consumer Financing Secondary Reserves 20
Breakdown of earning assets yield Sep-16 Dec-16 Sep-17 Bank Only Balance (Rp billion) Yield (%) Balance (Rp billion) Yield (%) Balance (Rp billion) Yield (%) Secondary Reserves 77,510 4.71% 58,561 4.59% 93,879 (+21.1% YoY) 4.56% Marketable Securities 23,988 5.35% 28,521 5.28% 31,357 (+30.7% YoY) Loans 386,246 10.29% 416,279 10.19% 439,884 (+13.9% YoY) Government Bonds 70,817 6.55% 66,050 6.60% 64,418 (-9.0% YoY) 5.24% 9.49% 6.80% 21
Balanced loan portfolio Loan Portfolio (Bank only, Rp billion) Loans Breakdown (Bank only, Rp billion) Consumer Commercial & SME Corporate 387,088 386,246 416,279 408,910 433,606 439,884 Sep-16 Dec-16 Sep-17 YTD Change YoY Change Corporate 133,305 154,872 161,527 4.3% 21.2% Commercial & SME 146,511 151,852 150,025-1.2% 2.4% Consumer 106,430 109,555 128,332 17.1% 20.6% 27.2% 27.6% 26.3% 27.3% 28.7% 29.2% Total Outstanding 386,246 416,279 439,884 5.7% 13.9% Total Facilities* 549,451 575,057 629,991 9.6% 14.7% * Including uncommitted facilities of Rp41.3tln in Sep-16, Rp38.6tln in Dec-16 and Rp48.8tln in Sep-17 37.8% 37.9% 36.5% 35.4% 34.2% 34.1% Outstanding Loans by Currency (as of 30 September 2017) 35.0% 34.5% 37.2% 37.3% 37.1% 36.7% IDR 93.7% Forex 6.3% Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 22
Moderate consumer loan growth Consumer Loans (Bank only, Rp billion) Consumer Loans Credit Cards (Bank only + vehicle loans booked by BCA Subsidiaries, Rp billion) Vehicles Mortgage 105,156 106,430 9.0% 9.1% 109,555 111,674 9.8% 9.4% 124,546 8.9% 30.7% 128,332 8.6% 30.0% Sep-16 Dec-16 Sep-17 YTD Change YoY Change Mortgage 62,156 63,959 78,836 23.3% 26.8% Vehicles* 34,599 34,817 38,529 10.7% 11.4% 32.3% 32.5% 31.8% 31.4% Credit Cards 9,675 10,779 10,967 1.7% 13.4% Total 106,430 109,555 128,332 17.1% 20.6% 58.7% 58.4% 58.4% 59.2% 60.4% 61.4% Vehicle loans booked by BCA Finance & 8,074 8,507 8,101-4.8% 0.3% CS Finance** Grand Total 114,504 118,062 136,433 15.6% 19.2% * Including 2 wheeler financing of Rp4.1tln in September 2016, Rp3.9tln in December 2016 and Rp2.8tln in September 2017 ** Including 2 wheeler financing of Rp1.8tln in September 2016, Rp1.8tln in December 2016 and Rp1.9tln in September 2017 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 23
Diversified industry concentration Top Ten Industry Sectors in Corporate, Commercial and SME Sectors Sep-16 Dec-16 Sep-17 1. Distributor, Wholesaler and Retailer 7.0% 7.3% 8.7% 2. Plantation and Agriculture 6.9% 6.9% 7.7% 3. Building Material and Other Construction Related 7.8% 7.3% 6.6% 4. Automotive and Transportation 5.9% 5.6% 5.6% 5. Properties and Construction 5.2% 4.9% 5.3% 6. Financial Services 3.6% 4.0% 5.2% 7. Food and Beverages 5.3% 5.2% 4.9% 8. Chemicals and Plastics 5.2% 5.4% 4.5% 9. Textile and Garment 4.6% 4.6% 4.5% 10. Transportation and Logistics 5.5% 4.9% 4.3% Total 57.0% 56.1% 57.3% 24
NPL maintained at a low level NPL by Loan Segments (bank only, %) NPL by Consumer Loans (bank only, %) Sep-15 Sep-16 Sep-17 Sep-15 Sep-16 Sep-17 4.4% 4.1% 3.5% 2.3% 2.3% 1.2% 0.9% 1.2% 1.1% 0.9% 1.0% 1.9% 2.1% 2.0% 0.1% 0.5% 0.7% 1.0% 0.7% 0.7% 0.7% Corporate Commercial & SME Consumer Mortgage 2 Wheeler 4 Wheeler Credit Card* * The non-performing loans of customers holding multiple credit cards are calculated on an aggregate basis (NPL on one card would downgrade all cards held by one specific customer). Previously, credit card NPL was calculated on an individual card basis. 25
260,903 259,224 270,352 268,294 278,301 283,281 120,426 126,251 137,880 137,155 148,707 144,755 109,286 107,640 121,933 129,730 145,302 146,435 Active management of third party funds Third Party Funds & Cost of Funds (Bank only, Rp billion) Interest Rate Adjustments* 2.01% 1.98% 1.97% 2.05% 2.07% 2.09% 14,0% 12,0% 13.00 12.00 10,0% 8,0% 6,0% 4,0% 2,0% 1 Month Rupiah Time Deposits 9.50 9.25 8.50 8.50 8.00 7.50 7.00 7.00 6.50 6.75 6.25 6.25 5.00 6.00 5.50 5.75 5.75 4.75 4.50 5.25 4.00 Savings 4.00 3.50 3.00 Rupiah Current Accounts 3.50 2.50 2.25 2.20 1.90 1.70 6.00 4.75 2.15 1.60 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 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 (%) 46.6% 44.3% 43.9% 52.8% 48.6% 45.0% Operating Income Operating Expense 13,300 13,545 14,110 13,504 13,917 14,302 YTD Cost Efficiency Ratio (Bank only) 5,889 5,462 5,848 6,988 6,259 5,540 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 Quarterly Breakdown of Operating Expenses (Rp billion) Personnel Expenses Other Expenses 2,577 3,312 3,472 1,990 2,106 3,742 4,034 2,954 2,830 3,429 3,430 2,110 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17 27
Thank you
Appendix 29
Government bonds profile Government Bond Maturity (Bank only, Rp billion) Nominal Value as of 30 September 2017 24,615 16,600 Fixed Rate [Rp 62,747 billion (99.8%)] Variable Rate [Rp 100 billion (0.2%)] 8,769 10,456 529-100 - - - 270-1,399-40 - 15-25 - 7-1 - 2-11 - 8 - Maturity 2017 2018 2019 2020 2021 2022 2023 2024 2025 2027 2031 2032 2036 2038 2048 2017 2018 2019 2020 2021 2022 2023 2024 2025 2027 2031 2032 2036 2038 2048 Total Trading 66 35 28 34 3 85 1-15 25 7 1 2 11 8 321 Available for Sale 463 15,518 7,382 8,091 7,244 175 1,398 - - - - - - - - 40,271 Investment - 9,162 1,359 8,475 3,209 10-40 - - - - - - - 22,255 Total 529 24,715 8,769 16,600 10,456 270 1,399 40 15 25 7 1 2 11 8 62,847 30
BCA maintains 8 subsidiaries in 6 business lines Business lines Subsidiaries Business overview Vehicle Financing Insurance Securities Sharia Banking Remittance Venture Capital (acquired: 2001) (established: 2010) (acquired: 2010) (established: 2013) (acquired: 2011) (acquired: 2009) (acquired: 1996) (established: 2017) 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 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 A venture capital company that invests in and collaborates with fin-tech companies as well as support companies in the financial industry that will enhance the overall financial service ecosystem of BCA and its subsidiaries 31
BCA credit ratings Fitch Ratings Moody s Published on April 2017 Published on August 2017 Description Rating Description Rating Outlook Stable Outlook Positive 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 2017) BCA Share Performance vs IDX (28 December 2007 to 20 October 2017) BCA IDX Number of Shares Ownership Percentage 24,000 20,000 BCA IDX (RHS) 7,000 6,000 PT Dwimuria Investama Andalan * 13,545,990,000 54.94% Anthoni Salim 434,079,976 1.76% 16,000 12,000 8,000 4,000 5,000 4,000 3,000 2,000 1,000 Public ** 10,674,940,024 43.30% Total 24,655,010,000 100.00% Note: * Shareholder of PT Dwimuria Investama Andalan are Mr. Robert Budi Hartono and Mr. Bambang Hartono, therefore ultimate shareholder of BCA are Mr. Robert Budi Hartono and Mr. Bambang Hartono. ** In the composition of Shares held by the public, 2.49% of the shares are owned by parties affiliated with PT Dwimuria Investama Andalan. - - Jan-08 Dec-08 Dec-09 Dec-10 Dec-11 Nov-12 Nov-13 Nov-14 Oct-15 Oct-16 Oct-17 Relative Performance 535% BCA IDX 435% 335% 235% 135% 35% -65% Jan-08 Dec-08 Dec-09 Dec-10 Dec-11 Nov-12 Nov-13 Nov-14 Oct-15 Oct-16 Oct-17 33
BCA winning awards - 2017 AsiaMoney AsiaMoney Bank Indonesia Asian Banking & Finance Bisnis Indonesia Net Promoter Customer Loyalty Award 2017 Best Managed Company in Indonesia - Large Cap Overall Best Sales Service for Local Currency Commodity Derivatives IDR Overall Best Local Currency Interest Rates Research & Market Coverage IDR Overall Best Pricing for Local Currency Commodity Derivatives IDR The Asiamoney Awards 2017 Best Brand for Banking in Indonesia Best Domestic Bank in Indonesia Bank Indonesia Awards 2017 BCA The Best Bank in Reporting BCA The Best Supporting Bank in Financial Market BCA The Best Supporting Bank in LMKM for Categories BUKU 3 & BUKU 4 BCA Best SKNBI Participants Retail Banking Awards 2017 BCA Indonesia Digital Banking Initiative of the Year Bisnis Indonesia Award 2017 The Best Issuer for Category Commercial Private Bank Jahja Setiaatmadja Best CEO Euromoney FinanceAsia FinanceAsia Forbes Frontier Consulting Group & Marketing Magazine Euromoney Awards for Excellence 2017 The Best Bank in Indonesia FinanceAsia Country Awards for Achievement 2017 Best Asian Bank Best Bank in Indonesia Asia s Best Companies 2017 (Indonesia) Best Investor Relations (2 nd place) Best at Corporate Social Responsibility (4 th place) Best Managed Companies (6 th place) Most Committed to Corporate Governance (6 th place) Global 2000 Awards BCA One of the World s Biggest Public Companies of 2017 Top Brand Award 2017 BCA Received Awards for Categories: Deposit Account Credit Card Prepaid Card Flazz Internet Banking KlikBCA Mobile Banking m-bca Saving Account Tahapan BCA Call Center HaloBCA 34
BCA winning awards - 2017 Frontier Consulting Group Infobank Infobank Magazine Investor Magazine Investor Magazine & Berita Satu Media Holding Corporate Image Award 2017 BCA The Best in Building and Managing Corporate Image for the category National Bank with Assets > Rp250 trillion Infobank Digital Brand Awards 2017 The Best Digital Brand 2012-2016 for Categories Conventional Bank: Debit Card & Time Deposits Digital Brand for Categories Conventional Bank: Wealth Management, Debit Card, Credit Card, Savings & Time Deposits Infobank Awards 2017 Bank with Excellent Financial Performance from 2002-2016 Referensi Investasi Award 2017 BCA The Best Issuer in Banking Sector Investor Best Bank 2017 The Best Bank in Indonesia for Category Commercial Bank with asset > Rp 100 trillion JCB Marketeers Markplus.Inc Markplus Inc. & Nikkei BP Consulting Inc. MillwardBrown & WPP JCB Awards of Appreciation 2017 BCA The Best Acquiring Bank Partner of the Year 2016 in Indonesia Indonesia Top Performance in ASEAN Award 2017 Indonesia WOW Brand Award 2017 Gold Champion Category Saving Account, Mobile Banking, Call Center, Internet Banking & ATM Silver Champion Category Mortgage, Credit Card, e- Money Top 3 Most Powerful Financial Institution in Indonesia 2017 BrandZ Top 50 Most Valuable Indonesian Brands 2017 BCA recognized as the Most Valuable Indonesian Brand 35
BCA winning awards - 2017 Public Relation Indonesia Magazine Service Excellence Magazine & Carre CCSL Service Excellence Magazine & Carre CCSL Service Excellence Magazine & Carre CCSL SWA Magazine and Hachiko Net Promoter Public Relation Indonesia Award 2017 BCA Main Winner for Categories Media Relation Service Quality Award 2017 Priority Banking Regular Banking Corporate Banking Gold Credit Card Silver Credit Card Platinum Credit Card Excellent Service Experience Award 2017 BCA Excellent for the Categories Regular Banking Contact Center Service Excellence Award 2017 Excellent Award: Halo BCA Twitter Customer Service Halo BCA Facebook Customer Service Exceptional Award: Halo BCA Categories: Regular Banking, Priority Banking, Credit Card, Customer Service Email Center & Platinum Credit Card Good Service Performance: Bank BCA for Banking Category KlikBCA in Delivering Positive Customer Engagement Net Promoter Customer Loyalty Award 2017 NPS Leader for: Credit Card, Mortgage, Mobile Banking and Internet Banking NPS Good for: Savings Accounts SWA Magazine & MARS SWA Magazine, Brand Finance & WIR Global SWA Network Tempo Media Group & Indonesia Banking School The Asian Banker Indonesia Best Brand Award 2017 Indonesian Best Brand Award for 10 Consecutive Years for Tahapan BCA & Kartu Kredit BCA Indonesia s Most Valueable Brands 2017 Strongest Brand in Indonesia 2017 Most Value able Indonesia Brands (5 th Place) SWA 100: Indonesia s Best Wealth Creators 2017 Indonesia Best Public Companies (1 st Place) Category Banks Indonesia Best Overall Public Companies (4 th Place) ASEAN Best Public Companies (2 nd Place) Category Banks ASEAN Best Overall Public Companies (9 th Place) Indonesia Banking Award 2017 Best Bank in Retail Banking Services Best Bank in Digital Services Most Reliable Bank Most Efficient Bank Diversity of the Board Strongest Bank by Balance Sheet in Indonesia 2017 36
BCA winning awards - 2017 The Asian Banker The Asian Banker Warta Ekonomi Warta Ekonomi Magazine Indonesia Country Awards Programme for Retail Financial Services Mortgage and Home Loans Product of the Year (Fix & Cap) Best Smart Branch Project The International Excellence in Retail Financial Services Award 2017 BCA Best Retail Bank in Indonesia Social Business Innovation Award 2017 Social Business Innovation Award Category Bank The Best Green CEO Category Bank Indonesia Top Performing Mutual Fund & Consumer Choice Award 2017 BCA Best Perform in Custodian Bank Warta Ekonomi Magazine Warta Ekonomi Magazine Warta Ekonomi Magazine Warta Ekonomi Magazine Indonesia Digital Innovation Award for Banking 2017 BCA The Winner of Digital Innovation Award for Banking Bank BUKU 4 Indonesia Most Admired Company 2017 BCA Indonesia s Most Admired Company 2017 Top 10 - Indonesia Most Admired Company Netizen Choice 2017 Indonesia Most Innovative Business Award 2017 BCA The Winner of Indonesia Most Innovative Business Award 2017 Category Bank Indonesia Prestige Brand Award 2017 BCA Brand Used Most Often and The Highest Top of Mind Brand for Category National Private Bank 37