PT Bank Rakyat Indonesia (Persero) Tbk. 1H 2016 - Financial Update Presentation
Outline Financial Updates 3 Business Updates: 1. Micro Banking.. 11 2. Small Commercial and Medium Loans... 16 3. Consumer Loans.. 18 4. SoE and Corporate Loans... 20 5. Fee Based Income.... 22 Key Take Aways........ 24 Target 2016...... 26 Appendixes..... 28 2
Financial Updates 3
Financial Highlights Asset/Liabilities Q1'15 1H'15 9Mo'15 2015 Mar'16 1H'16 yoy Total Assets (IDR Billion) 781,181 747,478 775,816 845,998 832,092 872,970 16.8% Total Loans (Gross) (IDR Billion) 472,915 503,594 518,952 558,436 561,098 590,691 17.3% Total Deposits (IDR Billion) 587,727 573,117 611,325 642,774 631,781 656,122 14.5% Asset Quality NPL (gross) 2.17% 2.33% 2.24% 2.02% 2.22% 2.31% NPL (nett) 0.60% 0.66% 0.59% 0.52% 0.59% 0.60% Liquidity LDR 80.47% 87.87% 84.89% 86.88% 88.81% 90.03% CASA 51.74% 54.13% 56.16% 59.21% 56.54% 56.89% Reserve Requirement - IDR 8.03% 8.02% 8.01% 9.31% 6.52% 6.54% Reserve Requirement - FX 8.05% 8.01% 8.02% 8.43% 8.01% 8.02% Profitability Net Profit (IDR Billion) 6,101 11,861 18,285 25,204 6,137 12,047 1.6% NIM 7.57% 7.88% 8.08% 8.13% 8.09% 8.43% ROE Tier 1 29.84% 29.22% 29.60% 29.89% 26.55% 25.24% ROA before tax 3.99% 3.91% 3.95% 4.19% 3.65% 3.68% Cost of Fund (CoF) 4.74% 4.50% 4.29% 4.24% 3.98% 3.96% Cost Efficiency Ratio (CER) 45.08% 45.45% 44.22% 43.81% 42.86% 44.42% Operating Expense to Operating Income 68.04% 69.26% 69.40% 67.96% 72.10% 72.40% Capital Tier1 CAR 15.97% 16.43% 16.68% 16.76% 15.84% 18.56% Total CAR 20.08% 20.41% 20.59% 20.59% 19.49% 22.10% Note: Numbers stated in this presentation are bank only As of January 2015: - Implementation of Basel 3: recognition of 100% current year net profit into capital, previously only 50% - Ref to PBI No. 15/12/2013 : appropriated reserves is categorized as Tier 2 Capital, previously Tier 1 Capital Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T 4
Balance Sheet (IDR Billion) Description Mar'15 Jun'15 Sep'15 2015 Mar'16 Jun'16 g(yoy) g(qoq) Total Assets 781,181 747,478 775,816 845,998 832,092 872,970 16.8% 4.9% - Gross Loans 472,915 503,594 518,952 558,436 561,098 590,691 17.3% 5.3% - Government Bonds (Recap) 4,301 4,053 4,069 3,816 3,818 3,817-5.8% 0.0% - Other Earnings Assets 236,584 172,594 177,775 190,735 195,829 180,245 4.4% -8.0% Total Earning Assets 713,800 680,241 700,795 752,987 760,744 774,753 13.9% 1.8% Earning Assets Provision (16,013) (16,628) (17,460) (17,030) (18,657) (20,567) 23.7% 10.2% Total Earning Assets (net) 697,787 663,612 683,336 735,957 742,087 754,186 13.6% 1.6% Total Non Earning Assets 83,394 83,866 92,480 110,041 90,004 118,784 41.6% 32.0% Total Liabilities & S.E 781,181 747,478 775,816 845,998 832,092 872,970 16.8% 4.9% Total Customer Deposits 587,727 573,117 611,325 642,774 631,781 656,122 14.5% 3.9% - Demand Deposits 84,835 88,803 109,565 112,989 108,150 109,202 23.0% 1.0% - Saving 219,234 221,411 233,754 267,607 249,037 264,054 19.3% 6.0% - Time Deposits 283,658 262,903 268,006 262,178 274,593 282,866 7.6% 3.0% Other Interest Bearing Liabilities 64,197 48,156 31,615 67,712 55,725 61,441 27.6% 10.3% Non Interest Bearing Liabilities 34,045 24,622 25,880 23,120 32,673 22,755-7.6% -30.4% Tier I Capital 77,416 82,900 86,707 89,992 89,915 110,333 33.1% 22.7% Total Shareholder's Equity 95,212 101,583 106,996 112,392 111,913 132,652 30.6% 18.5% Note: Numbers stated in this presentation are bank only As of January 2015: - Implementation of Basel 3: recognition of 100% current year net profit into capital, previously only 50% - Ref to PBI No. 15/12/2013 : appropriated reserves is categorized as Tier 2 Capital, previously Tier 1 Capital Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T 5
Loan Mix and Growth Loans Outstanding by business segment (IDR Trillion) 503.6 519.0 472.9 59.7 66.0 55.6 71.8 73.7 58.8 18.9 19.5 19.1 100.2 103.5 103.7 81.7 83.8 85.8 590.7 558.4 561.1 79.7 75.1 76.4 81.2 20.2 18.5 78.5 83.5 19.8 110.3 114.5 106.9 94.4 91.2 88.5 Composition by business segment (%) 11.8 11.9 12.7 13.4 13.6 13.5 12.4 14.3 14.2 14.5 14.0 14.1 4.0 3.8 3.8 3.6 3.3 3.4 21.2 20.5 20.0 20.5 19.0 18.7 17.3 16.6 16.5 15.8 16.3 16.0 33.3 32.9 32.8 32.0 33.8 34.3 157.5 165.8 170.2 178.9 189.7 202.9 Mar-15 Jun-15 Sep-15 2015 Mar-16 Jun-16 Mar-15 Jun-15 Sep-15 2015 Mar-16 Jun-16 Micro Consumer Small Commercial Medium SoE Corporate Non-SoE Total Loan Note: Numbers stated in this presentation are bank only 6
Loan Asset Quality Non Performing Loan - gross (%) Restructured Loan by Segment (%) Restructured Loan by quality (%) NPL (%) Mar-15 Jun-15 Sep-15 2015 Mar-16 Jun-16 Micro 1.56 1.60 1.44 1.13 1.54 1.49 Consumer 1.44 1.64 1.61 1.30 1.48 1.53 Small Comm. 4.13 4.14 3.87 2.90 3.78 3.78 Medium 7.50 7.71 7.26 5.82 6.68 6.45 Corp Non-SoE 1.92 3.28 3.62 4.78 3.78 4.67 SoE - - - - - 29.0 17.4 9.5 10.5 0.8 32.8 11.9 49.2 39.0 Total NPL 2.17 2.33 2.24 2.02 2.22 2.31 Total Restructured loan in 1H16 Rp.28.3T Special Mention (%) Special Mention Composition by segment (%) 2.17 2.33 2.24 2.02 2.22 2.31 10.3 9.5 6.2 7.9 8.0 7.4 11.3 12.4 13.7 7.9 11.1 5.0 19.6 4.4 4.3 5.1 5.0 4.4 26.0 23.7 24.2 25.9 26.1 25.4 7.13 7.02 6.95 4.81 6.43 6.67 13.0 13.6 12.4 13.2 12.6 9.9 37.3 36.0 36.7 40.0 37.2 33.3 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 NPL (%) Gross Special Mention (%) Note: Numbers stated in this presentation are bank only Mar 15 Jun 15 Sep 15 Des 15 Mar 16 Jun 16 7
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 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) 611.3 642.8 631.8 656.1 587.7 573.1 283.7 262.9 268.0 262.2 274.6 282.9 48.3% 45.9% 43.8% 40.8% 43.5% 43.1% 7.50% 7.50% 7.50% 7.50% 6.75% 6.50% 219.2 221.4 233.8 267.6 249.0 264.1 4.74% 4.50% 4.29% 4.24% 3.98% 3.96% 84.8 88.8 109.6 113.0 108.2 109.2 51.7% 54.1% 56.2% 59.2% 56.5% 56.9% Mar-15 Jun-15 Sep-15 2015 Mar-16 Jun-16 Mar-15 Jun-15 Sep-15 2015 Mar-16 Jun-16 Time Deposit Demand Deposit Saving TOTAL High Cost Low Cost COF BI Rate Note: Numbers stated in this presentation are bank only 8
Income Statement (IDR Billion) Description 2015 1H'15 1H'16 g(yoy) Q1'16 Q2'16 g(qoq) Interest Income 82,221 39,963 45,009 12.6% 21,840 23,169 6.1% Interest Expense (25,710) (13,074) (12,998) -0.6% (6,514) (6,484) -0.5% Net Interest Income 56,511 26,889 32,011 19.0% 15,326 16,685 8.9% Fee & Other Opr. Income * 12,224 5,650 7,598 34.5% 3,311 4,287 29.5% Gross Operating Income 68,735 32,539 39,609 21.7% 18,637 20,972 12.5% Other Operating Expenses (29,889) (14,639) (17,746) 21.2% (8,025) (9,720) 21.1% Pre Provision Operating Profit 38,846 17,900 21,863 22.1% 10,611 11,252 6.0% Provision (8,581) (3,868) (7,339) 89.8% (3,589) (3,750) 4.5% Non Operating Income (Net) 1,947 640 856 33.7% 573 283-50.5% Profit Before Tax n Minor. Int. 32,211 14,672 15,379 4.8% 7,595 7,784 2.5% Net Profit 25,204 11,861 12,047 1.6% 6,137 5,910-3.7% EPS** 1,021.7 961.6 976.7 1.6% 995.1 958.4-3.7% *) Detail on the Fee & Other Operating Income on page 30 **) annualized Note: Numbers stated in this presentation are bank only 9
Business Updates 10
Micro Banking 11
Micro Banking Loan Micro Loans Micro Borrowers (IDR Trillion) (Million) 8.6 YoY g = 22.4% 132.1 153.3 24.5 178.9 12.7 5.6 15.1 202.9 42.1 165.8 13.0 1.9 8.1 14.4 YoY g = 13.7% 5.3 5.6 1.9 2.2 6.5 2.7 7.3 3.0 7.9 7.5 0.9 1.1 1.9 1.5 1.2 3.0 0.5 1.0 New Micro KUR Micro KUR Kupedes Rakyat 90.2 11.2 79.0 106.8 15.1 91.7 20.8 111.4 128.8 145.5 138.4 150.8 3.4 3.4 3.9 4.3 4.4 4.4 4.1 Kupedes Micro Loan 2011 2012 2013 2014 2015 Jun'15 Jun'16 2011 2012 2013 2014 2015 Jun'15 Jun'16 NPL Micro Loans (%) 1.19 1.09 1.12 1.13 1.04 1.60 1.49 Total Micro loans increased 22.4% yoy, with number of borrowers reaching 8.6 million. New KUR support the micro loan growth. With outstanding reaching Rp 39.7 trillion and 3 million borrowers to compensate declining Micro KUR and Kupedes Rakyat 2011 2012 2013 2014 2015 Jun'15 Jun'16 Note: Numbers stated in this presentation are bank only 12
Micro Banking - Deposit Micro Funding, providing liquidity from stable core funding Micro Deposits Micro Deposits Composition (IDR Trillion) Jun 15 Jun 16 YoY g = 15.9% 166.2 192.1 164.3 190.4 14.7% 0.9% 15.0% 1.1% 146.2 126.6 107.5 84.4% 83.9% Demand Deposit Saving Time Deposit 2011 2012 2013 2014 2015 Jun'15 Jun'16 Micro deposits grew 15.9% yoy, lead by saving with 15.3% YoY growth Savings, with composition of 83.9%, still dominates micro deposits Note: Numbers stated in this presentation are bank only 13
Micro Banking Teras BRI Teras BRI - more accessible, getting closer to customers TerasBRI - Performance IDR Trillion TerasBRI - Contribution to Micro Loan & Deposit Loan Deposit 3067 3179 3141 3192 7.6% 8.8% 9.8% 9.4% 10.1% 3.5% 3.8% 4.4% 4.1% 4.6% 2128 2671 16.9 20.5 3.2% 5.0% 0.9% 1.8% 13.5 15.6 1304 10.0 8.5 8.7 2.9 5.3 6.3 6.8 5.1 1.0 2.3 2011 2012 2013 2014 2015 Jun'15 Jun'16 Loan Deposit # of Teras BRI Note: Numbers stated in this presentation are bank only 2011 2012 2013 2014 2015 Jun'15 Jun'16 Loan in Teras TerasBRI continuously shows strong performance with loan growth of 31.4% and deposit growth of 27.9% yoy. Contribution of Teras BRI to Micro business performance keep increasing, in Jun 16 reached 10.1% and 4.6% of total micro loan and deposit 2011 2012 2013 2014 2015 Jun'15 Jun'16 Deposit in Teras 14
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 101% YoY (in Million) 65,341 420% YoY 59,318 35.2 390% YoY (in Rp Trillion) 50.8 50,259 32,483 35,955 13.2 23.6 15.1 20.4 35.9 21.0 6.8 10.4 Jun'15 Sep'15 Dec'15 Mar'16 Jun'16 Jun'15 Sep'15 Dec'15 Mar'16 Jun'16 Jun'15 Sep'15 Dec'15 Mar'16 Jun'16 # of Agent - Distribution # of Transaction - Distribution Transaction Volume - Distribution Mid & Eastern Part 24% Sumatra 22% Java 54% Mid & Eastern Part 26% Sumatra 29% Java 45% Mid & Eastern Part 31% Sumatra 36% Java 33% In Jun 16, Java (54%) dominates the Agent distribution Note: Numbers stated in this presentation are bank only In line with the Agent distribution, Java dominates the total BRILink transaction However, Sumatra with 36%, dominates the transaction volume 15
Small Commercial & Medium Loans 16
220.0 170.0 120.0 70.0 20.0-30.0 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 9.00% 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 4.53% (IDR Trillion) (IDR Trillion) YoY g = 6.6% 3.75% 3.13% 3.21% 4.14% 3.78% YoY g = 4.9% 7.71% 2.90% 7.11% 6.45% 67.6 4.7 75.6 5.4 94.0 6.9 105.1 7.6 114.5 2.7 3.3 103.5 5.4 110.3 6.0 2.5 5.09% 4.38% 5.91% 5.82% 62.9 70.2 87.1 97.4 108.5 98.0 101.9 2011 2012 2013 2014 2015 Jun'15 Jun'16 13.8 16.5 20.3 20.2 20.2 18.9 19.82 2011 2012 2013 2014 2015 Jun'15 Jun'16 Commercial Non KUR Retail KUR New Retail KUR Total Loan NPL Total Loan NPL 17
Consumer Loans 18
Consumer Loan Loan Outstanding (IDR Trillion) Composition YoY g = 12.7% 55.8 12 61.5 12.5 73.9 16.4 80.6 18.2 88.5 19.0 83.8 18.7 94.4 19.7 Others 1.9% Vehicle Loans 2.3% Jun 15 Mortgage 18.0% Jun 16 Salary Based Loan 79.2% 43.8 49.0 57.5 62.4 69.5 65.2 74.8 Salary Based Loan 77.7% Others 1.7% Vehicle Loans 2.0% Mortgage 17.1% 2011 2012 2013 2014 2015 Jun'15 Jun'16 Salary Based Loan Other Total Consumer NPL (%) 1.53 1.60 1.64 1.53 1.40 1.30 1.21 Increase salary based loan composition with growth of 14.8% YoY 2011 2012 2013 2014 2015 Jun'15 Jun'16 Note: Numbers stated in this presentation are bank only 19
SoE & Corporate Loans 20
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 YoY g = 24.0% 56.3 24.3 32 87.8 38 49.8 110.2 47.7 62.5 131.2 57.1 156.3 75.1 74.1 81.2 131.6 59.7 71.8 163.2 79.7 83.5 2011 2012 2013 2014 2015 Jun' 15 Jun' 16 SOE Loans Oil & Gas 1.82% Mining 2.07% Corporate Loans Others 6.47% Infrastructure, Utilities 40% Transportation 3.03% Agribusiness 28.95% Industry 17.03% Construction 0.47% NPL Trend (%) 0.97% 0.43% 0.38% 0.77% 2.30% 1.49% 2.28% 2011 2012 2013 2014 2015 Jun' 15 Jun' 16 Oil & Gas 5.73% Mining 2.16% Transportation 2.64% Others 14.79% Agribusiness 39.25% NPL 2011 2012 2013 2014 2015 Jun' 15 Jun' 16 SOE 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Corp 2.24% 1.00% 0.87% 1.78% 4.78% 3.28% 4.67% Infrastructure, Utilities 6.83% Industry 24.71% Construction 3.91% 21
Fee Based Income 22
Fee Based Income - composition Jun 15 Jun 16 Fee Based Income 186 5% 243 7% 189 5% 126 4% 135 4% 1,881 53% 411 10% 366 9% 72 2% 134 3% 164 4% 2,016 49% YoY g = 16.9% 3.4 3.9 4.9 6.1 7.4 3.5 4.1 784 22% 979 23% (Nominal in billion) Deposit Adm Fee Credit Card E-Banking Related Fee Payment Service Loan Adm Fee Others Int'l Business Related Fee FBI (Rp Trillion) Fee based income grew at 16.9% (yoy) and currently FBI to Total Income reach 7.8% E-banking related Fees increased, yoy, 24.9%, raising it s portion from 22.1% to 23.6% of the total Fee Based Income and for the first time, deposit admin fee is lower than 50% of total fee income Note: Numbers stated in this presentation are bank only 23
Key Take Aways 24
Key Take Aways Strong loan growth in 1H16 of 17.3% supported by Micro, Consumer and Corporate segments. Slight increase in NPL and SML, generates stable credit cost level. Going forward, we still cautious on asset quality issues in Corporate segment. Higher CER and opex growth will likey to persist up to end of 2016. Stable PPOP growth above 20% supported by strong NII growth. 25
Target 2016 26
Target 2016 Previous Loan Growth : 13% 15% LDR : 85-90% NPL : 2.1% - 2.4% NIM : 7.8% - 8% FBI Growth : 20-22 % OPEX Growth : 16% - 18% CER : 44% - 46% Credit Cost : 1.5% - 1.7% Net Profit Growth : 3% - 5% Revised Loan Growth : 14% 16% LDR : +/- 90% NPL : 2.1% - 2.4% NIM : +/- 8% FBI Growth : +/- 20% OPEX Growth : 18% - 20% CER : 44% - 46% Credit Cost : 2.0%-2.5% Net Profit Growth : 1% - 2% 27
Appendixes 28
Financial Ratios Description 2011 2012 2013 2014 2015 Q1'16 1H'16 Cost of Fund (COF) 4.70% 3.68% 3.71% 4.38% 4.24% 3.98% 3.96% Loan to Deposit Ratio 76.20% 79.85% 88.54% 81.68% 86.88% 88.81% 90.03% Net Interest Margin (NIM) 9.58% 8.42% 8.55% 8.51% 8.13% 8.09% 8.43% NPL ratio - Gross 2.30% 1.78% 1.55% 1.69% 2.02% 2.22% 2.31% NPL ratio - Nett 0.42% 0.34% 0.31% 0.36% 0.52% 0.59% 0.60% Earning Asset Provision 4.51% 3.43% 2.90% 2.40% 2.37% 2.54% 2.75% Opr. Expense to Opr. Income 66.69% 59.93% 60.58% 65.42% 67.96% 72.10% 72.40% Cost Efficiency Ratio (CER) 41.17% 43.11% 42.13% 43.18% 43.81% 42.86% 44.42% Tier I CAR 13.67% 15.86% 16.13% 17.54% 16.76% 15.84% 18.56% Total CAR 14.96% 16.95% 16.99% 18.31% 20.59% 19.49% 22.10% Return on Assets (ROA) - b.t 4.93% 5.15% 5.03% 4.73% 4.19% 3.65% 3.68% Return on Assets (ROA) - a.t 3.97% 4.04% 3.85% 3.72% 3.28% 2.95% 2.88% Return on Equity (ROE) - Tier I 42.49% 38.66% 34.11% 31.19% 29.89% 26.55% 25.24% Return on Equity (ROE) - B/S 35.10% 32.41% 30.10% 27.87% 24.39% 21.44% 20.51% Min. Reserve Requirement 9.33% 10.64% 8.02% 8.07% 9.31% 6.52% 6.54% Net Open Position 5.49% 3.00% 3.15% 3.86% 2.33% 5.13% 3.29% CASA 61.28% 59.94% 59.22% 53.55% 59.21% 56.54% 56.89% Note: Numbers stated in this presentation are bank only 29
Sources of Income Total Income Interest Income IDR Billion Total Income 2015 1H'15 1H'16 g(yoy) Q1'16 Q2'16 g(qoq) Interest income 82,221 39,963 45,009 12.6% 21,840 23,169 6.1% Fee & Other Opr.Income 12,224 5,650 7,598 34.5% 3,311 4,287 29.5% Non Operating Income (net) 1,947 640 856 33.7% 573 283-50.5% Total Income 96,391 46,253 53,463 15.6% 25,724 27,739 7.8% IDR Billion Interest Income 2015 1H'15 1H'16 g(yoy) Q1'16 Q2'16 g(qoq) Interest from Loans 73,376 35,373 39,796 12.5% 19,165 20,631 7.7% Int. from Other Earning Assets 8,845 4,591 5,213 13.6% 2,675 2,538-5.1% Total Interest Income 82,221 39,963 45,009 12.6% 21,840 23,169 6.1% Fee & Other Operating Income IDR Billion Fee & Other Operating Income 2015 1H'15 1H'16 g(yoy) Q1'16 Q2'16 g(qoq) Gain Fr Value Increase of Securities and Govt. Recap Bonds 63 20 211 955.5% 78 133 70.0% Gain fr unrealized change fair value and Govt. Recap Bonds - - 9-3 6 82.0% Fees and Commissions 7,352 3,544 4,142 16.9% 1,967 2,175 10.6% Gain fr Forex 458 307 - -100.0% - - - Recovery 2,334 926 1,279 38.1% 595 684 14.9% Others 2,017 853 1,957 129.4% 668 1,289 92.9% Total Fee & Other Opr. Income 12,224 5,650 7,598 34.5% 3,311 4,287 29.5% Note: Numbers stated in this presentation are bank only 30
Other Operating Expenses Other Operating Expenses 2015 1H'15 1H'16 g(yoy) Q1'16 Q2'16 g(qoq) Personnel 15,961 7,632 9,928 30.1% 4,264 5,664 32.8% General and Administration 9,918 4,522 5,234 15.8% 2,416 2,818 16.6% Losses fr decrease of Securities and Govt. Bonds value 7 - - - - - - Losses from forex transaction - - 253-73 180 148.5% Premium Paid on Govt Guarantees 1,248 668 640-4.1% 320 320 0.0% Promotion 858 359 475 32.5% 168 307 83.4% Others 1,897 1,460 1,215-16.8% 785 430-45.2% Total Other Opr. Expenses 29,889 14,639 17,746 21.2% 8,025 9,720 21.1% IDR Billion Note: Numbers stated in this presentation are bank only 31
Balance Sheet (consolidated) IDR Billion Description 2011 2012 2013 2014 2015 Jun 15 Jun 16 YoY Total Assets 469,899 551,337 626,183 801,984 878,426 773,314 907,843 17.4% - Gross Loans 294,515 362,007 448,345 510,697 581,095 524,964 615,576 17.3% - Government Bonds (Recap) 8,996 4,316 4,511 4,304 3,816 4,053 3,817-5.8% - Other Earnings Assets 129,136 132,720 115,690 213,094 197,021 174,925 186,874 6.8% Total Earning Assets 432,647 499,042 568,546 728,094 781,931 703,941 806,267 14.5% Earning Assets Provision (16,092) (14,916) (15,419) (16,163) (17,532) (17,052) (21,207) 24.4% Total Earning Assets (net) 416,555 484,126 553,127 711,931 764,399 686,889 785,059 14.3% Total Non Earning Assets 53,345 67,211 73,055 90,053 114,027 86,425 122,784 42.1% Total Liabilities & S.E 469,899 551,337 626,183 801,984 878,426 773,314 907,843 17.4% Total Customer Deposits 384,264 450,166 504,281 622,322 668,995 596,304 683,739 14.7% - Demand Deposits 76,779 80,075 79,337 90,052 114,367 90,856 111,246 22.4% - Saving Deposits 154,133 184,365 212,997 236,395 272,471 225,518 269,117 19.3% - Time and Certificate Deposits 153,353 185,726 211,948 295,875 282,157 279,929 303,377 8.4% Other Interest Bearing Liabilities 19,361 15,784 20,896 57,435 68,601 49,317 62,550 26.8% Non Interest Bearing Liabilities 16,454 20,505 21,678 24,522 27,703 25,492 27,890 9.4% Tier I Capital 38,809 52,325 67,270 83,344 93,437 85,773 112,790 31.5% Total Shareholder's Equity 49,820 64,882 79,327 97,706 113,127 102,201 133,664 30.8% Note: Numbers stated in this presentation are bank only As of January 2015: - Implementation of Basel 3: recognition of 100% current year net profit into capital, previously only 50% - Ref to PBI No. 15/12/2013 : appropriated reserves is categorized as Tier 2 Capital, previously Tier 1 Capital Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T 32
Income Statement (consolidated) IDR Billion Description 2011 2012 2013 2014 2015 1H 15 1H 16 YoY Interest Income 48,164 49,610 59,461 75,122 85,434 41,547 46,749 12.5% Interest Expense (13,737) (13,127) (15,355) (23,680) (27,154) (13,770) (13,766) 0.0% Net Interest Income 34,427 36,484 44,106 51,442 58,280 27,776 32,983 18.7% Net Premium Income (45) n.a Fee & Other Opr. Income 5,776 8,390 8,348 9,299 12,409 5,735 8,051 40.4% Gross Operating Income 40,203 44,873 52,455 60,741 70,689 33,511 56,013 67.1% Other Operating Expenses (17,086) (19,491) (22,381) (26,715) (31,276) (15,355) (18,651) 21.5% Pre Provision Operating Profit 23,117 25,382 30,074 34,026 39,413 18,156 22,339 23.0% Provision (5,533) (2,700) (3,946) (5,719) (8,900) (3,996) (7,559) 89.2% Non Operating Income (Net) 1,172 1,177 1,782 2,497 1,981 642 798 24.3% Profit Before Tax n Minor. Int. 18,756 23,860 27,910 30,804 32,494 14,802 15,578 5.2% Net Profit 15,088 18,687 21,354 24,227 25,411 11,954 12,182 1.9% EPS *) 628.9 757.5 865.6 982.1 1,030.1 969 988 1.9% *) annualized 33
Others 34
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 2010 2011 2012 2013 2014 2015 Jun'15 Jun'16 YoY Head Offices 1 1 1 1 1 1 1 1 - Regional Offices 18 18 18 18 19 19 19 19 - Branches 413 431 446 453 461 467 463 467 4 Sub Branches 470 502 545 565 584 603 586 603 17 BRI Units 4,649 4,849 5,000 5,144 5,293 5,360 5,306 5,362 56 Cash Offices 822 870 914 950 971 983 980 985 5 Teras BRI 617 1,304 1,778 2,206 2,457 2,543 2,531 2,555 24 Teras Mobile 100 350 465 610 636 610 636 26 Total 6,990 8,075 9,052 9,802 10,396 10,612 10,496 10,628 132 Sub-Branch Offices Cash Counter E-Channel 2010 2011 2012 2013 2014 2015 Jun'15 Jun'16 YoY ATM 6,085 7,292 14,292 18,292 20,792 22,792 21,215 23,126 1,911 EDC 12,719 31,590 44,715 85,936 131,204 187,758 153,786 210,688 56,902 CDM 39 89 92 192 392 892 426 892 466 E-Buzz 2 19 42 50 55 57 55 57 2 Total 18,845 38,990 59,141 104,470 152,443 211,499 175,482 234,763 59,281 *Total working units are including 4 overseas offices Note: Numbers stated in this presentation are bank only BRI Unit Teras BRI 35
Ratings BRI Rating Country Rating FITCH - 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- STANDARD AND POORS - 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 MOODY'S Indonesia Sovereign Ratings BB+, Positive Outlook BBB-, Stable Outlook Baa3, Stable Outlook BBB-, Stable Outlook 36
Shareholders & Stock Performance Shareholders Composition Shareholder 2003 2010 2011 2012 2013 2014 2015 Mar 16 Jun 16 Government 59.50% 56.75% 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% 43.25% Foreign 79.10% 84.25% 83.93% 82.84% 78.94% 83.09% 78.12% 78.44% 78.36% Domestic 20.90% 15.75% 16.07% 17.16% 21.06% 16.91% 21.88% 21.56% 21.64% 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) 2 1.5 volume 2.5 Last price 14000 12000 10000 8000 1 6000 4000 0.5 2000 0 De M Ju Se De M Ju Se De M Ju Se De M Ju Se De M Ju Se De M Ju Se De M Ju Se De M Ju Se De M Ju Se De M Ju Se De M Ju Se De M Ju Se De M Ju 0 37
5 Years Data
5 Years Data Balance Sheet (IDR Billion) Description 2011 2012 2013 2014 2015 Jun'15 Jun'16 g(yoy) Total Assets 456,531 535,209 606,370 778,046 845,998 747,478 872,970 16.8% - Gross Loans 283,583 348,227 430,618 490,403 558,436 503,594 590,691 17.3% - Government Bonds (Recap) 8,996 4,316 4,511 4,304 3,816 4,053 3,817-5.8% - Other Earnings Assets 127,774 131,547 115,168 211,325 190,735 172,594 180,245 4.4% Total Earning Assets 420,353 484,089 550,297 706,031 752,987 680,241 774,753 13.9% Earning Assets Provision (15,869) (14,584) (15,072) (15,785) (17,030) (16,628) (20,567) 23.7% Total Earning Assets (net) 404,484 469,505 535,225 690,246 735,957 663,612 754,186 13.6% Total Non Earning Assets 52,047 65,704 71,145 87,800 110,041 83,866 118,784 41.6% Total Liabilities & S.E 456,531 535,209 606,370 778,046 845,998 747,478 872,970 16.8% Total Customer Deposits 372,148 436,098 486,366 600,404 642,774 573,117 656,122 14.5% - Demand Deposits 75,579 78,753 78,017 89,076 112,989 88,803 109,202 23.0% - Saving 152,474 182,643 210,004 232,414 267,607 221,411 264,054 19.3% - Time Deposits 144,095 174,702 198,346 278,915 262,178 262,903 282,866 7.6% Other Interest Bearing Liabilities 18,413 14,466 19,873 56,677 67,712 48,156 61,441 27.6% Non Interest Bearing Liabilities 16,195 20,008 21,261 23,784 23,120 24,622 22,755-7.6% Tier I Capital 38,215 51,593 65,964 82,109 89,992 82,900 110,333 33.1% Total Shareholder's Equity 49,775 64,637 78,870 97,181 112,392 101,583 132,652 30.6% Note: Numbers stated in this presentation are bank only As of January 2015: - Implementation of Basel 3: recognition of 100% current year net profit into capital, previously only 50% - Ref to PBI No. 15/12/2013 : appropriated reserves is categorized as Tier 2 Capital, previously Tier 1 Capital Increase Asset and Capital in 1H2016 due to asset revaluation recognation amounting to Rp.14.3T
5 Years Data Income Statement (IDR Billion) Description 2011 2012 2013 2014 2015 1H'15 1H'16 g(yoy) Interest Income 46,949 47,922 57,301 72,466 82,221 39,963 45,009 12.6% Interest Expense (13,079) (12,461) (14,395) (22,346) (25,710) (13,074) (12,998) -0.6% Net Interest Income 33,870 35,461 42,906 50,120 56,511 26,889 32,011 19.0% Fee & Other Opr. Income 5,524 8,166 8,165 9,178 12,224 5,650 7,598 34.5% Gross Operating Income 39,394 43,627 51,071 59,298 68,735 32,539 39,609 21.7% Other Operating Expenses (16,288) (18,602) (21,284) (25,458) (29,889) (14,639) (17,746) 21.2% Pre Provision Operating Profit 23,106 25,025 29,788 33,840 38,846 17,900 21,863 22.1% Provision (5,532) (2,555) (3,916) (5,613) (8,581) (3,868) (7,339) 89.8% Non Operating Income (Net) 1,157 1,169 1,776 2,497 1,947 640 856 33.7% Profit Before Tax n Minor. Int. 18,731 23,639 27,648 30,724 32,211 14,672 15,379 4.8% Net Profit 15,083 18,521 21,160 24,176 25,204 11,861 12,047 1.6% EPS** 611.4 750.8 857.8 980.0 1,021.7 962 977 1.6% Note: Numbers stated in this presentation are bank only
5 Years Data Ratios Description 2011 2012 2013 2014 2015 1H'15 1H'16 Cost of Fund (COF) 4.70% 3.68% 3.71% 4.38% 4.24% 4.50% 3.96% Loan to Deposit Ratio 76.20% 79.85% 88.54% 81.68% 86.88% 87.87% 90.03% Net Interest Margin (NIM) 9.58% 8.42% 8.55% 8.51% 8.13% 7.88% 8.43% NPL ratio - Gross 2.30% 1.78% 1.55% 1.69% 2.02% 2.33% 2.31% NPL ratio - Nett 0.42% 0.34% 0.31% 0.36% 0.52% 0.66% 0.60% Earning Asset Provision 4.51% 3.43% 2.90% 2.40% 2.37% 2.56% 2.75% Opr. Expense to Opr. Income 66.69% 59.93% 60.58% 65.42% 67.96% 69.26% 72.40% Cost Efficiency Ratio (CER) 41.17% 43.11% 42.13% 43.18% 43.81% 45.45% 44.42% Tier I CAR 13.67% 15.86% 16.13% 17.54% 16.76% 16.43% 18.56% Total CAR 14.96% 16.95% 16.99% 18.31% 20.59% 20.41% 22.10% Return on Assets (ROA) - b.t 4.93% 5.15% 5.03% 4.73% 4.19% 3.91% 3.68% Return on Assets (ROA) - a.t 3.97% 4.04% 3.85% 3.72% 3.28% 3.16% 2.88% Return on Equity (ROE) - Tier I 42.49% 38.66% 34.11% 31.19% 29.89% 29.22% 25.24% Return on Equity (ROE) - B/S 35.10% 32.41% 30.10% 27.87% 24.39% 24.03% 20.51% Min. Reserve Requirement 9.33% 10.64% 8.02% 8.07% 9.31% 8.02% 6.54% Net Open Position 5.49% 3.00% 3.15% 3.86% 2.33% 9.31% 3.29% CASA 61.28% 59.94% 59.22% 53.55% 59.21% 54.13% 56.89% Note: Numbers stated in this presentation are bank only
5 Years Data Loan Outstanding (IDR Trillion) Loan Composition (%) YoY g = 17.3% 558.4 590.7 8.5 10.9 11.1 11.6 13.4 11.9 13.5 283.6 24.3 32.0 13.8 67.6 55.8 348.2 38.0 49.8 16.5 75.6 61.5 430.6 47.7 62.5 20.3 94.0 73.9 490.4 57.1 74.1 20.2 105.1 80.6 75.1 81.2 20.2 114.5 88.5 503.6 59.7 71.8 18.9 103.5 83.8 79.7 83.5 19.8 110.3 94.4 11.3 4.9 14.3 14.5 15.1 14.5 14.3 14.1 4.7 4.7 4.1 3.6 3.8 3.4 23.8 21.7 21.8 21.4 20.5 20.5 18.7 19.7 17.6 17.2 16.4 15.8 16.6 16.0 31.8 30.7 30.7 31.3 32.0 32.9 34.3 90.2 106.8 132.1 153.3 178.9 165.8 202.9 2011 2012 2013 2014 2015 Jun-15 Jun-16 Loan Quality 2011 2012 2013 2014 2015 Jun-15 Jun-16 NPL (%) 2011 2012 2013 2014 2015 Jun-15 Jun-16 Micro 1.19 1.09 1.04 1.12 1.13 1.60 1.49 Consumer 1.53 1.60 1.40 1.21 1.30 1.64 1.53 Small Commercial 4.53 3.75 3.13 3.21 2.90 4.14 3.78 Medium 7.11 5.09 4.38 5.91 5.82 7.71 6.45 Corporate Non-SoE 2.24 1.00 0.87 1.78 4.78 3.28 4.67 SoE - - - - - - - Total NPL 2.30 1.78 1.55 1.69 2.02 2.33 2.31 Note: Numbers stated in this presentation are bank only
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 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 = 14.5% 372.1 144.1 152.5 436.1 174 4.7 182.6 486.4 198.3 210.0 600.4 278.9 232.4 642.8 262.2 267.6 573.1 262.9 221.4 656.1 282.9 264.1 38.7% 40.1% 40.8% 46.5% 40.8% 45.9% 43.1% 7.50% 7.75% 7.50% 7.50% 6.50% 6.00% 5.75% 4.38% 4.24% 4.50% 3.96% 3.41% 3.71% 4.70% 75.6 78.8 78.0 89.1 113.0 88.8 109.2 61.3% 59.9% 59.2% 53.5% 59.2% 54.1% 56.9% 2011 2012 2013 2014 2015 Jun-15 Jun-16 Time Deposit Saving Demand Deposit TOTAL 2011 2012 2013 2014 2015 Jun-15 Jun-16 High Cost Low Cost COF BI Rate Note: Numbers stated in this presentation are bank only
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.