ab 1q13 -- final - danamon sector exports, fob (% yoy, ... slide 6 industry (commercial banks)vs...
TRANSCRIPT
Untuk Anda, Bisa
Slide 1
Analyst Briefing
First Quarter 2013 Results
Jakarta, 18 April 2013
Untuk Anda, Bisa
Slide 2
• Economy and Industry Trend
• Financial Results
• Corporate Updates
• Appendix
Agenda
Untuk Anda, Bisa
Slide 3
BI kept the policy rate at 5.75% and the FASBI rate at 4%,
concern on the global economy, cautious on inflationEconomic Growth
• 4Q12 growth slowed to 6.11%yoy, brings the overall year growth in FY12 to 6.23%yoy, down from 6.49 % in FY11
• Private Consumption & Investment are still the main drivers, amid the deterioration of net exports due to global economic slowdown and declining global commodity.
Real GDP Growth ����
Headline vs Core Inflation ����� ��� � ������ ��
������� ���� ��
������� ���� �� � ����� ��� ��������)� ��!"�#!��$ �%$� �&�' ��)
5.5
6.3 6.1
4.6
6.16.5
6.2 6.3
2006 2007 2008 2009 2010 2011 2012 2013E
0%
3%
6%
9%
Dec-09 Dec-10 Dec-11 Sep-12 Dec-12 Jan-13 Feb-13 Mar-13
▲
CPI 5.9%
BI Rate: 5.75%▼
FASBI: 4%▲
������� ��
7500
8000
8500
9000
9500
10000
10500
4
5
6
7
8
9
10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12
Jan-13
Mar-13
% Rp/$
IDR - RHS
10 year Yield
Rupiah vs 10 Yr Bond Yield
Inflation rate
• March inflation was still high at 0.63% mom, still driven by the rise in the food prices esp. garlic and onion due to stricter import policy. On a yearly basis, inflation rate reached 5.9% while core inflation decline at 4.21%yoy.
• 2013 forecast is at 5.47% (with no fuel price hike), however inflation rate could be higher depends on the fuel rationing policy that may be released this month
Interest Rate
• In March, BI kept the policy rate at 5.75% and the FASBI rate at 4%. Recent pressure on food price may be temporary as we’ve entered the harvesting season.
• BI responded to the recent inflation pressure by stepping up the monetary operation by absorbing liquidity to a longer term tenors.
• Current forecast is for BI to hold rate at 5.75% this year. However fuel rationing policy may drive inflation higher which could lead to BI raising policy rate if inflation falls beyond BI’s target.
Exchange Rate
• IDR remains in the Rp9700-9750 level, as BI looking to dampen imports.
• For now, we still maintain our view of strengthening IDR/USD towards 9,502 at year-end (2013).
Untuk Anda, Bisa
Slide 4
CA deficit in 2013 is expected to improve to 2.2%, partly due
to lower oil imports if the govt issue the fuel rationing policyTrade Balance & Export Growth
Goods Account and Current Account
������� ���� ��
������� ��
Trade & Balance of Payment
• In Feb, trade balance recorded a wider deficit of USD0.33bn as exports decline faster (-4.5%yoy) while imports grew slower at -1.2%yoy.
• The FY12 figure recorded a deficit of USD24.2bn (2.7% of GDP) in the CA, which was fully countered by a surplus in the financial account that amounts to USD24.9bn, thus brought the overall balance to record a small surplus of USD165mn.
• Current account deficit to improve in Q1-2013 as exports may pick up while imports are slowing down. However, risks remained in the higher imports of oil and gas due to the rising domestic consumption.
Balance of Payment
������� ��
������� ��� ��
Indonesia Foreign Trade
-10,000
-5,000
0
5,000
10,000
15,000
Mar-10
Jun-10
Sep-10
Dec-10
Mar-11
Jun-11
Sep-11
Dec-11
Mar-12
Jun-12
Sep-12
Dec-12
Current Account
Capital and Financial Account
Overall Balance
US$ Mn
-50
-35
-20
-5
10
25
40
55
70
85
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
010203040506070809101112010203040506070809101112010203040506070809101112 1 2
2010 2011 2012 2013
Trade Balance (lhs)
Export (fob)
Import (cif)
USD bn %YoY
Untuk Anda, Bisa
Slide 5
Economics Indicators
Indonesia 2010 2011 2012 2013E 2014E
National Account
Real GDP (% YoY) 6.2 6.5 6.2 6.3 6.6
Domestic demand ex. Inventory (% y-o-y) 5.3 5.7 6.2 6.2 6.4
Real Consumption: Private (% y-o-y) 4.7 4.7 5.3 5.3 5.0
Real Gross Fixed Capital Formation (% y-o-y) 8.5 8.8 9.8 9.7 9.0
GDP (US$ bn) – nominal 709 847 879 971 1,171
GDP per Capita (US$) – nominal 2,983 3,514 3,596 4,044 4,680
Open Unemployment Rate (%) 7.1 6.6 6.3 6.5 6.2
External Sector
Exports, fob (% YoY, US$ bn) 32.1 26.9 -6.3 6.4 14.5
Imports, fob (% YoY, US$ bn) 43.7 30.8 8.3 7.5 11.1
Central government debt (% of GDP) 26.1 24.6 23.1 22.0 21.2
International Reserves – IRFCL (US$ bn) 96.2 110.1 112.9 115.1 120.0
Reserve cover (Imports and external debt) 7.1 6.3 6.1 6.4 6.6
Currency / US$ (Year-end) 8,991 9,068 9,670 9,502 9,252
Other
BI Policy Rate (% year end) 6.50 6.00 5.75 6.00 (5.75) 6.00
Consumer prices (% year end) 6.96 3.79 4.30 6.17 (5.47) 4.18
Fiscal balance (% of GDP; FY) -0.73 -1.16 -1.77 -1.50 -1.80
Source: BPS, Bank Indonesia, Danamon Estimates
Untuk Anda, Bisa
Slide 6
Industry (Commercial Banks) vs Danamon
�� �������� Feb-12 Feb-13 YoY
Total Assets 3,628 4,237 17%
Loans 2,203 2,719 23%
Total Deposits 2,764 3,207 16%
NPAT 15.5 16.1 4%
NIM (%) 5.4 5.3 -0.1
NPL (%) 2.3 2.0 -0.3
ROA (%) 3.6 2.9 -0.7
LDR (%) 79.4 84.4 5.0
CAR (%) 18.4 19.3 0.9
Source: Indonesian Banking Statistics
�� ������ Feb-12 Feb-13 YoY
Total Assets 142,084 149,335 5%
Loans 103,200 115,254 12%
Total Funding 105,973 110,667 4%
NPAT 594 629 6%
NIM (%) 9.6 10.0 0.4
NPL (%) 2.4 2.4 -0.1
ROA (%) 2.5 2.5 0.0
Loan to Funding (%)* 91.6 91.1 -0.5
CAR (%) 20.1 20.2 0.1
*) Loan to funding is defined as (Loans + Reserves with BI + Cash in Vault + HTM bonds) / (Third Party Deposits + net borrowings and LTF + net capital)
Untuk Anda, Bisa
Slide 7
• Economics and Industry Trend
• Financial Results
• Corporate Updates
• Appendix
Agenda
Untuk Anda, Bisa
Slide 8
Highlights 1Q13 Results
• Total loans increased 11% to Rp 117 trillion. Mass market and SMEC remained as the growth driver, each rose 8% and 24% to Rp 66 trillion and Rp 31 trillion, respectively.
• Total funding rose 4% to Rp 114 trillion, on the back of CASA andborrowings & LTF growth. CASA up 15% to Rp 41.8 trillion or 37% of total funding (vs 33% last year). Loan to funding stood at 89.4%
• NIM improved to 10.1% from 9.7% last year in light of lower CoF. CoC was better at 2.7% against 3.2% in 1Q12. CIR remained manageable at 51.8%.
• Fee income up 9% to Rp 1,122 billion, or 25% of operating income.
• NPAT rose 12% to Rp 1 trillion with ROA stood at 2.7% and ROE of 14.4%*
• Maintained strong capital with Tier 1 capital ratio of 19.6% and CAR of 20.1%*
* Before 2012 dividend payment
Untuk Anda, Bisa
Slide 9
Highlights of Income Statement
�� ������ 1Q12 1Q13 ����YoY 4Q12 1Q13 ����QoQ
Net Interest Income 3,019 3,334 10% 3,332 3,334 0%
Non Interest Income 1,029 1,122 9% 1,130 1,112 -2%
Operating Income 4,048 4,456 10% 4,462 4,456 0%
Cost of Credit (788) (770) -2% (675) (770) 14%
Risk Adjusted Op. Income 3,260 3,686 13% 3,786 3,686 -3%
Operating Expenses (2,032) (2,308) 14% (2,348) (2,308) -2%
Net Profit after taxes 900 1,005 12% 1,021 1,005 -2%
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Slide 10
Highlights of Balance Sheet
�� ������ 1Q12 1Q13 ����YoY 4Q12 1Q13 ����QoQ
Total Assets 145,114 153,785 6% 155,791 153,785 -1%
Loans (gross) 105,558 117,484 11% 116,385 117,484 1%
Government Bonds 4,516 4,066 -10% 4,063 4,066 0%
Total Funding 109,979 113,833 4% 115,926 113,833 -2%
Current Account 13,021 15,845 22% 15,854 15,845 0%
Savings 23,214 25,940 12% 27,270 25,940 -5%
Time Deposit 53,187 47,205 -11% 48,552 47,205 -3%
Borrowings and LTF 20,557 24,844 21% 24,252 24,844 2%
Equity 25,515 29,504 16% 28,494 29,504 4%
Untuk Anda, Bisa
Slide 11
Key Ratios
-0.189.489.51.989.487.5Consolidated Loan to Funding *
1Q12 1Q13 ����YoY 4Q12 1Q13 ����QoQ
Net Interest Margin 9.7 10.1 0.4 10.2 10.1 -0.1
Cost of Credit 3.2 2.7 -0.5 2.4 2.7 0.3
Cost / Income 50.2 51.8 1.6 52.6 51.8 -0.8
ROAA 2.5 2.7 0.2 2.7 2.7 0.0
ROAE 14.6 14.4 -0.2 16.1 14.4 -1.7
Assets to Capital (x) 6.3 5.7 -0.6 6.3 5.7 -0.6
Stand Alone Loan to Funding * 87.2 89.1 1.9 89.2 89.1 -0.1
Regulatory LDR 98.6 103.5 4.9 100.6 103.5 2.9
Stand Alone CAR 17.9 20.0 2.1 18.4 20.0 1.6
Consolidated CAR 19.1 20.1 1.0 18.9 20.1 1.2
NPL — Gross 2.5 2.5 0.0 2.3 2.5 0.2
Impairment (LLP/Total Loans) 2.6 2.6 0.0 2.6 2.6 0.0
Loan Loss Coverage (LLP/NPL) 106.9 110.8 3.9 112.5 110.8 -1.7
*) Loan to funding is defined as (Loans + Reserves with BI + Cash in Vault + HTM bonds) / (Third Party Deposits + net borrowing and LTF + net capital)
Untuk Anda, Bisa
Slide 12
Loans grew 11% mostly driven by mass market and mid-size
Loan Growth
�� ������ 1Q12 1Q13 ����YoY
� Wholesale 13,424 12,720 -5%
� SMEC* 25,180 31,278 24%
� Retail 5,725 7,404 29%
� Mass
Market61,228 66,082 8%
Total 105,558 117,484 11%
* SME and Commercial segments
58% 58% 57% 57% 56%
5%5% 6% 6% 6%
24%25% 25%
26% 27%
13%12%
12%11% 11%
1Q12 2Q12 3Q12 4Q12 1Q13
Loan Composition Rp trillion
116
106110
113117
Untuk Anda, Bisa
Slide 13
Mass Market Loan Growth
High margin business of mass market accounted for 56%
of total loan book
�� ������ 1Q12 1Q13 ����YoY
� Adira
Quantum1,383 1,463 6%
� Adira Finance 42,684 45,093 6%
� Pawn Broking 61 316 NM
� SEMM (DSP) 17,100 19,210 12%
Total 61,228 66,082 8%
Mass Market Loan (to total loans)Rp trillion
16%16%16%16%16%
38%39%40%40%40%
1%1% 1% 1% 1%
1Q12 2Q12 3Q12 4Q12 1Q13
6661 64 65 66
Untuk Anda, Bisa
Slide 14
DSP loans grew in line with expansion strategy outside
Java and supported by various business models
• Loans outside Java remained robust.
• Various business models are developed through supply chain and selected agri sectors.
• New hired 200 sales officers are in place in April 2013, dedicated for upper-tier micro business.
• 43 new units to be installed by August 2013
in supporting growth.
Loans by Business Model (Rp tn)
15.0
1.3 0.8
17.116.119.2
1.51.6
Pasar
Model
Supply
Chain
Agri Total
1Q12 1Q13
7%
25%
12%
93%
Loans by Region (Rp tn)
8.7
2.74.9
0.8
8.8
17.119.2
1.06.0
3.4
Java Sulawesi
and East
Sumatra Kalimantan Total
1Q12 1Q13
12%
15%
22%28%
2%
Untuk Anda, Bisa
Slide 15
Down Payment for auto industry
• BI and Bapepam issued new ruling on the minimum down payment for vehicle financing and LTV for mortgage
� In March 2012, BI (through its circular letter No. 14/10/DPNP dated 15 March 2012) and Bapepam(through press release No. 53/HMS/2012 dated 16 March 2012) each issued a different set of ruling regarding the minimum down payment for auto loans for conventional banks.
� In November 2012 Bi issued new issued rule of SE BI No.14/33/DPbS dated 27 Nov 2012 regarding Financing Product for Mortgage and Automotive for Syariah Commercial Bank and Syariah Unit effective : 1 April 2013. This new regulation is similar to Bapepam regulation on DP for syariah except for the effective date. The summary of the rules is below:
� In addition to the above, BI also determined the maximum loan to value (LTV) for mortgage of 70%.
DP for
Conventional
and Shariah
Financing
15 Jun 12 (Convent)
Effective date:
5%Min. 25%Min. 30%4W — non productive
-
5%
Diff
1 Jan 13 (Syariah)
1 April 13 (Syariah)
Min. 20%Min. 20%4W — productive
Min. 20%Min 25%2W
BapepamBIType of loans
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Slide 16
Auto industry is still challenged by DP and fiducia rules,
both for conventional and syariah financing.
• 2W market is more affected by DP rule, but slightly improved in 1Q13 (up 2% y-y), while 4W remained strong with 18% y-y growth.
• ADMF 2W sales in 1Q13 was largely impacted by early adoption of JF Syariah LTV (1 Jan ‘13), 3 months earlier than regulation guided by BI (1 April 2013).
• Auto industry FY2013: 2W corrected to 6 mn (down 15%) due to DP impact on syariah financing. 4W to stay flat at 1.1 mn. (source: AISI and Gaikindo)
5,8527,373 8,044
1,932
7,0646,000
1,961
5.9%3.8%4.3% 5.5%2.8%
7.0% 3.8%
26%
-6%
9%
-12%-15%
-3% 2%
2009 2010 2011 2012 2013E 1Q12 1Q13
Industry : 2W Unit sales (000)Inflation GrowthIndustry : 2W Unit sales (000)Inflation Growth
296
1,1001,116
251
894764486
0%3.8%
7.0%2.8%5.5%
4.3% 3.8% 5.9%
11% 18%25%17%
-20%
57%
2009 2010 2011 2012 2013E 1Q12 1Q13
Industry : 4W Unit sales (000)Inflation Growth
Untuk Anda, Bisa
Slide 17
Diversified funding continued to grow providing sound
liquidity. CASA to funding stood at 37% vs 33% last year.
19% 21% 22% 21% 22%
48% 47% 44% 42% 41%
21%20% 23% 24% 23%
12%12% 12% 14% 14
1Q12 2Q12 3Q12 4Q12 1Q13
Funding Composition (Rp trillion)
Loans to Deposits Ratio (%)
89.489.589.585.287.5
103.5100.6103.597.198.6
Loan to Funding Regulatory LDR
110117 113 116
Funding Growth
( )�""��� 1Q12 1Q13 ����YoY
�Current Account 13,021 15,845 22%
�Saving Account 23,214 25,940 12%
� Time Deposit 53,187 47,205 -11%
Total Deposits 89,442 88,990 -1%
� Borrowings &
LTF20,557 24,844 21%
Total Funding 109,979 113,833 4%
114
*) Loan to funding is defined as (Loans + Reserves with BI + Cash in Vault + HTM bonds) / (Third Party Deposits + net borrowings and LTF + net capital)
Untuk Anda, Bisa
Slide 18
• Self financing is encouraged across all LoBs.
• The use of borrowings and LTF has increased in the past 4 years, particularly for ADMF. Self financing composition has increased substantially.
Note:
• Data include acquisition costs directly attributable to the
origination of financing accounts.
• Loans is defined as: receivables + cash. Funding is defined
as third party deposits + net borrowings and LTF + net
capital
• DER: Total debt (outstanding bank borrowings + bonds +
MTN)/ Total Equity
ADMF Joint Finance and Self Finance (Rp tn)
ADMF Managed Receivables and Funding
3.60.7 2.4
DER
6.5
13.6
23.025.3
7.3
15.9
25.026.7
2010 2011 2012 1Q13
Loans (Rp tn) Funding (Rp tn)
The use of borrowings and LTF is in line with overall
funding strategy, and has significantly funded ADMF stand
alone managed receivables.
23.927.5
22.519.6
6.8
13.8
23.125.5
2010 2011 2012 1Q13
JF Self financing
78%67%
49%43%
57%51%
33%22%
Untuk Anda, Bisa
Slide 19
127.5127.8112.991.8
142.5142.8126.4
106.6
86.2% 89.3% 89.5% 89.4%
Funding Subs only (Rp tn) *
Loans BDI only (Rp tn)
Loan to Funding
2010 2011 2012 1Q13
Loans Subs only (Rp tn)Funding BDI only (Rp tn) *
• Bankwide funding strategy optimize the used of borrowings and LTF to compensate expensive source of fund amid tightening liquidity competition.
Consolidated Funding (Rp tn)
Consol Loan to Funding
Consolidated Loans (Rp tn)
Note:
• Loans is defined as: receivables + cash. Funding is defined as third party deposits + net
borrowings and LTF + net capital
Downward shift of time deposits is compensated by
borrowings and LTF. Liquidity remained intact.
84.998.6 104.3 101.8
6.9
91.8
112.9127.8 127.5
25.723.514.3
2010 2011 2012 1Q13
BDI only
Subs only
Consol
98.4114.6 116.9 114.3
8.1
106.6
126.4142.8 142.5
28.325.911.8
2010 2011 2012 1Q13
BDI only
Subs only
Consol
Untuk Anda, Bisa
Slide 20
NIM improved at 10.1% vs 9.7% last year.
10.1
0.10.5
9.7
1Q12 1Q13
Net Interest Margin%, annualized
YoY NIM Movement%, annualized
Lower yield
Lower CoF
6.57.5 7.1 7.8
3.22.8 2.9 2.7
7.4
2.4
1Q12 2Q12 3Q12 4Q12 1Q13
Risk Adj NIM CoC
14.714.814.714.914.8
4.44.54.54.55.1
Yield Cost of Funds
10.29.7 10.3 10.0 10.1
Untuk Anda, Bisa
Slide 21
Non interest income rose 9% driven by credit related fees
and general insurance
Non Interest Income GrowthRp billion
( )�""��� 1Q12 1Q13 ����YoY
� Credit Related 787 823 5%
� Bancassurance 71 81 15%
� General Insurance
85 104 21%
� Treasury 17 33 97%
� Transaction Banking
69 81 17%
Total 1,029 1,122 9%
Non Interest Income Composition Rp billion
7%7%6%6%7%3% 3%3%1%2%
16%16%20%17%15%
74%74%73%74%
76%
1Q12 2Q12 3Q12 4Q12 1Q13
1,1301,029
1,143 1,131 1,122
Untuk Anda, Bisa
Slide 22
Cost to Income was 51.8%
4,0484,415 4,430 4,462 4,456
2,032 2,151 2,278 2,348 2,308
1Q12 2Q12 3Q12 4Q12 1Q13
Operating Income Operating Expense
Operating Income and ExpenseRp billion
51.852.651.448.750.2
▼▼▼▼ Cost to Income Ratio (%)
Untuk Anda, Bisa
Slide 23
Cost of Credit stood at 2.7%
2.72.42.92.8
3.2
93%90%83%93%89%
7%
10%17%7%11%
1Q12 2Q12 3Q12 4Q12 1Q13
Mass Market Non Mass Market
Cost of Credit / Avg. Loans
(%)
Cost of Credit
(Rp billion)
675
788 742 779 770
Untuk Anda, Bisa
Slide 24
NPL remained low
60% 59% 59% 62% 63%
5% 5% 5% 5%5%24% 20% 19% 17%17%
11% 17% 17% 16%15%
1Q12 2Q12 3Q12 4Q12 1Q13
Wholesale
SME &Commercial
Retail
M ass market
87.6% 87.2% 88.2% 87.2%87.8%
9.9% 9.7% 9.5% 10.3%10.4%2.5% 2.4% 2.5%2.5% 2.3%
1Q12 2Q12 3Q12 4Q12 1Q13
Non-Performing
SpecialMention
Current
Loan’s Collectibility� � *�$+$%����' "�%�+
Non-Performing Loans by Segment( )�""���
2,594 2,751 2,734 2,659 2,860
Untuk Anda, Bisa
Slide 25
Majority of special mention loans were within 30 days
92%92%92%90%93%
3%3%3%3%
2%3% 2%
2%2%
2%4% 3%
3%3%
3%
1Q12 2Q12 3Q12 4Q12 1Q13
Wholesale
SME & Commercial
Retail
Mass market
84.3% 85.6% 85.3% 83.9% 83.3%
9.9% 9.1% 9.4% 10.1% 10.9%
5.8% 5.4% 5.3% 6.0% 5.7%
1Q12 2Q12 3Q12 4Q12 1Q13
61 - 90 Days
31 - 60 Days
1 - 30 Days
Special mention loans by Aging� � ����%" ,��$��� -�%�+
Special Mention Loans by Segment( )�""���
10,459 10,69311,827
11,05512,214
Untuk Anda, Bisa
Slide 26
Ample capitalization for growth
RWA / Total Assets Capital Adequacy Ratio (%)
% 1Q12 2Q12 3Q12 4Q12 1Q13
CAR w/ Credit
Risk24.1 23.5 23.3 23.4 25.6
Market Risk
Charge0.1 0.1 0.1 0.0 0.0
Operational
Risk Charge4.9 4.6 4.5 4.5 5.4
CAR
Consolidated19.1 18.8 18.7 18.9 20.1
18,919,1 18,8 18,720,1
17,9 18,1
20,018,418,2
1Q12 2Q12 3Q12 4Q12 1Q13
Consolidated Stand Alone
RWA BDI Only RWA Consolidated
18,6 18,4 18,3 18,4
19,6
0,50,4 0,4 0,5
0,5
1Q12 2Q12 3Q12 4Q12 1Q13
Tier 1 Capital Tier 2 Capital
Tier 1 and Tier 2 capital ratio (%) - Consol
69%68%70%68%69%
1Q12 2Q12 3Q12 4Q12 1Q13
88%84%86%82%83%
1Q12 2Q12 3Q12 4Q12 1Q13
RWA Other Assets
19.118.8 18.7 18.9
20.1
Untuk Anda, Bisa
Slide 27
Regulation: Core capital allocation for branches
Core capital
allocation for
branches
Branch
opening
requirement
Standard
investment
cost
� Rated “3” (fairly sound), or better
� Have adequate core (tier 1) capital
� Adhere to branch distribution ratio (for every 3 branch in zone 1 or 2, must have1 branch in zone 5 or 6)
� Lending to SME >10%, lending to SME and micro >20%
� Full branch/regional offices Rp 10bn� Sub-branch/functional offices Rp 4bn *)� Cash offices Rp 2bn
� For syariah, branch subject to capital allocation including existing and new branches. Existing branches is defined as branches opened ≤ 2 years
.) /���$���%" ����+ 01��1 ��+)��+� "�����' $� �,� �+ �2�"���� ��! �%�$%" ��3����!��$
Effective
Date
� 2 Jan 2013; transition period ends June 2016, both for conventional and syariah
� Banks have to submit action plan to BI by end of March 2013 (to be endorsed by BI)
� Endorsed action plan to be incorporated in the revised RBB (to be submitted by June 2013)
Zoning and
Coefficient
for Conven.
and Syariah
Zone Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6
Coefficient 5 4 3 2 1 0.5
Area Jakarta,
Overseas
Java, Bali,
Banten
East
Kalimantan,
Riau, N.Sumatra
Sumatra,
Kalimantan,
Sulawesi, Papua
Sumatra,
Kalimantan,
Sulawesi, Papua
Sulawesi,
Maluku, West
Papua
Capital
Allocation
� Formula: Standard Investment Cost x Coefficient
� Sample: 1 full branch Zone 1 : Rp 10 bn x 5 = Rp 50 bn / branch
Standard inv. cost is the same for
conventional and syariah under BUKU 3
Untuk Anda, Bisa
Slide 28
• Economics and Industry Trend
• Financial Results
• Corporate Updates
• Appendix
Agenda
Untuk Anda, Bisa
Slide 29
Corporate Updates
Ownership
structure
• As at 2 April 2012, the Bank has been informed by Fullerton Financial Holding Pte. Ltd. (FFH), that it has entered into a share purchase agreement with DBS Group Holdings (DBS) to sell its interest in the whole of the issued share capital of Asia Financial (Indonesia) Pte. Ltd. to DBS. Currently, AFI holds approximately 67.37% of the total issued shares of the Bank. This transaction is subject to the approvals, among others, of DBS shareholders and regulators, including Bank Indonesia.
Dividend • We plan to maintain 30% dividend payout ratio subject to AGMS approval which will be held on 10 May 2013
Untuk Anda, Bisa
Slide 30
• Economics and Industry Trend
• Financial Results
• Corporate Updates
• Appendix
Agenda
Untuk Anda, Bisa
Slide 31
S&P upgrade BDI’s outlook to positive in April 2012
following DBS acqusitionDaily share price and trading volume��,4 �5
The ultimate shareholder of AFI is Temasek Holding Pte. Ltd, an investment
holding company based in Singapore.
Ownership Structure
&+ � �� ,%��1 ����
Number of
Shares
Ownership (%)
Asia Financial (Indonesia) Pte, Ltd. 6,457,558,472 67.4%
JPMCB - Franklin Templeton Inv.
Funds
611,958,888 6.4%
Public < 5% 2,515,126,005 26.2%
Total 9,584,643,365 100.00%
Danamon
PEFINDO
&�'�+$ ����
Corporate Rating idAA+ / Stable
Bond Rating idAA+ / Stable
Standard & Poor’s
����!)�� ����
Long-term / Short-term Local
Currency
BB / B / Stable
Long-term / Short-term Foreign
Currency
BB / B / Stable
Fitch’s
*�$�)�� ����
Long-term / Short-term Foreign
Currency
BB+ / B / Stable
National Long-term
Individual / Support Rating
AA+ (idn) / Stable
C/D / 3 / Stable
Moody’s
,%# ����
Global Local Currency Deposit Baa3 / P-3 /
Stable
Foreign Currency Long-term /
Short-term Deposit
Ba2 / NP / Stable
Bank Financial Strength Rating
(BFSR)
D / Positive
Indonesia Sovereign (Foreign Currency)
Standard & Poor’s Fitch’s Moody’s
BB+ / Positive BBB- / Stable Baa3 / Stable
010,000
20,00030,000
40,00050,000
60,00070,000
80,00090,000
100,000110,000
Sep- 12 Oct- 12 Nov- 12 Jan- 13 Feb- 13 Mar- 13
0
2,500
5,000
7,500
10,000Volume ('000)
Share Price
Untuk Anda, Bisa
Slide 32
Reconciliation with Newsletter
a b c d e f g h i
Net Interest
Income
Net Under-
writing
Income
Net Sharia
Interest
Income
Other
Operating
Income
Other
Operating
Expenses
Non Operating
Income
Non
Operating
Loss
Income
before Tax Taxes
Minority
Interest Income after Minority Interest
3,352 106 27 1,384 (3,486) - (12) 1,371 (342) (24) 1,005
a+c b+d e f+g h i
Net Interest
Income
Non-
Interest
Income
Operating
Income
Operating
Expenses
Pre-
Provision
Operating
Profit Cost of Credit
Non
Operating
Income/
(Loss) Taxes
Minority
Interest
Net Profit
after Tax
and
Minority
Interest Remark
3,379 1,490 4,869 (3,486) 1,383 - (12) (342) (24) 1,005
(45) (45) 45 - - LPS Deposit Insurance
(5) (5) (5) 5 - Provision for ADMF acquisition cost
(36) (36) (36) 36 - Write off on amortization cost
(47) (47) 47 - - ADMF indirect acquisition cost
(182) (182) 182 - - Decrease in fair value of financial assets (MTM)
(1) (1) 1 - - Losses from sale of financial assets (marketable securities)
(0) (0) 0 - - Losses from spot and derivative transaction (realised)
- 823 823 (823) - Impairment losses on financial assets
(14) (14) (14) 14 - Impairment losses on reposessed assets
(78) (78) 78 - - Fees/commissions and administrative expenses
- 2 2 (2) - Allowance for possible losses on non earning assets
(4) (4) (4) 4 - Others
3,334 1,122 4,456 (2,308) 2,149 (770) (8) (342) (24) 1,005
Newsletter
Analyst Briefing Presentation
Untuk Anda, Bisa
Slide 33
Regulation: Capital based on risk profile and Business
Activity & Branch Networking(PBI No. 14/18/PBI/2012 dated 28 November 2012, PBI No. 14/26/PBI/2012 dated 27 Dec 2012)
New rule
1. CAR minimum requirement no longer 8% but based on bank’s risk profile
2. Perform Internal Capital Adequacy Assessment Process (ICAAP) and submit the report every 6 months (Jun
& Dec period to be submitted on 31 Jan & 31 Jul)
3. BI Supervisory will perform Supervisory Review and Evaluation Process (SREP)
CAR Minimum Requirement
Capital based
on risk profile
Risk Profile CAR Min
1 - Low 8%
2 - Low to Moderate 9% - < 10%
3 - Moderate 10% - < 11%
4 - Moderate to High & 5 - High 11% - 14%
Danamon is under Low to Moderate
Business
Activity &
Branch
Networking
Bank is categorized into 4 “BUKU = Bank Umum berdasarkan Kegiatan Usaha” (commercial bank by business category) as follows:
Sharia Units : “BUKU” shall be referred to the “BUKU” of its conventional bank
“BUKU” Tier 1 Capital
1 < Rp 1 Trillion
2 Rp 1 Trillion - < Rp 5 Trillion
3 Rp 5 Trillion - < Rp 30 Trillion
4 ≥Rp 30 Trillion
Danamon is under “BUKU 3”
����� � �� ����� ��� ��������� �� ���� ����� ������� ��� ���� �
��������� ���� � � � !"�
Untuk Anda, Bisa
Slide 34
Business Activity & Branch Networking - Zoning
Jakarta
Java Bali
West NusaTenggara
East NusaTenggara
Maluku
West Papua
Papua
AcehNorth Sumatra
Riau Islands
Riau
West Sumatra
Bengkulu
Jambi
South Sumatra
Lampung
West Kalimantan
CentralKalimantan
SouthKalimantan
EastKalimantan
Central Sulawesi
NorthSulawesi
WestSulawesi
SouthSulawesi
South EastSulawesi
Zone 1 2 3 4 5 6
Coeff. 5 4 3 2 1 0.5
Untuk Anda, Bisa
Slide 35
Minimum Wages yoy growth 2013
Aceh: 11%
N.Sum: 15%
W.Sum: 17%
Riau: 13%Riau islands: 35%
Jambi: 14%
S.Sum: 13%
Bang. Bel.: 14%
Bengkulu: 29%Lampung: 18%
Jakarta: 44%
W. Java9%
Banten: 12%
C. Java9%
Yogya6%
E. Java:16%
Bali:22%
NTB:10%
NTT:9%
W.Kal:18%
C.Kal:17%
S.Kal:9%
E.Kal:49%
Maluku:31%
N.Maluku:25%Gorontalo:40%
N.Sul:24%
S.E.Sul:9%
Cent.Sul:12%
W.Sul:3%
S.Sul:20%13%
W. Papua: 19%
Untuk Anda, Bisa
Slide 36
Thank You
Investor RelationsPT Bank Danamon Indonesia, TbkMenara Bank Danamon, 6th Floor
Jl. Prof. Dr. Satrio Kav. E4 No.6Mega Kuningan, Jakarta 12950
Phone: +62 21 5799 1001-03
Fax: +62 21 5799 1445
Email: [email protected]
IR Contacts:
Indah Hermawan — [email protected]
Rifqi Prasetyo — [email protected]
EconomistsAnton Gunawan — Chief Economist - [email protected]
Anton Hendranata - Economist / Econometrician- [email protected] Ayu Yustina - Economist / Bond Analyst - [email protected]
Disclaimer:This report has been prepared by PT Bank Danamon Indonesia Tbk independently and is circulated for the purpose of general information only. It is not intended to the specifi c 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 estimates 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 (expressed or implied) of PT Bank Danamon Indonesia Tbk and/or its affi liated companies and/or their respective employees and/or agents whatsoever and howsoever 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 PT Bank Danamon Indonesia Tbk and/or its affi liated companies and/or their respective employees and/or agents accepts liability for any errors, omissions or mis-statements, negligent or otherwise, in this report and any inaccuracy herein or omission herefrom which might otherwise arise.