Untuk Anda, Bisa
Slide 1
Analyst Briefing
First Half and Second Quarter
2014 Results
Jakarta, 17 July 2014
Untuk Anda, Bisa
Slide 2
• Financial Results
• Appendix
Agenda
Untuk Anda, Bisa
Slide 3
1H14 Highlights
LDR
Average daily LDR was in declining trend.
CASA
CASA ratio stood at 44%, resulted from lower TD
NPAT
Normalized NPAT: Rp 1,753 bn
Reported NPAT : Rp 1,489 bn
The difference between the Normalized
NPAT vs Reported NPAT is due to the
application of the new OJK regulation on
Insurance Fee impacting ADMF’s fee
income recognition.
Loan
Rp 141 trillion
↑13% YoY
Total loans was Rp 141 trillion, increase of
13% from the previous year.
Asset Quality
NPL and CoC slightly rose from last quarter
driven by micro and smaller ticket SME.
NIM and Opex Growth (%)
Decline in NIM was due to increase in CoF, yet
compensated by lower opex growth. Opex growth
has been trending down in past three quarters.
CASA Ratio (%)
42 4426
4048
2008 2010 2013 1Q14 2Q14
% 3Q13 4Q13 1Q14 2Q14
NPL 2.2 1.9 1.9 2.1
CoC 2.7 2.3 2.5 3.0
7.15.6
2.82.7
1H13 1H14
9.98.4
◄ Risk Adj. NIM
◄ CoC
98.9
94.195.1
99
105.4
93
94.6
101.9104
102.5
2Q13 3Q13 4Q13 1Q14 2Q14
LDR Ave LDR
612
◄ NIM
◄ Y-y Opex Grwth
Untuk Anda, Bisa
Slide 4
Highlights of Balance Sheet
Rp billion 1H13 1H14 YoY 1Q14 2Q14 QoQ
Total Assets 158,103 185,433 17% 185,920 185,433 0%
Loans (gross) 123,935 140,647 13% 135,818 140,647 4%
Government Bonds 3,895 5,719 47% 5,513 5,719 4%
Total Deposits 118,741 136,663 15% 138,915 136,663 -2%
Current Account 15,631 19,500 25% 18,406 19,500 6%
Savings 25,991 29,320 13% 28,321 29,320 4%
Time Deposit 51,316 61,603 20% 65,159 61,603 -5%
Borrowings and LT. Funding 25,803 26,240 2% 27,029 26,240 -3%
Equity 29,234 31,558 8% 32,106 31,558 -2%
Untuk Anda, Bisa
Slide 5
Highlights of Income Statement
Rp billion 1H13 1H14 YoY 1Q14 2Q14 QoQ
Net Interest Income 6,683 6,744 1% 3,425 3,319 -3%
Non Interest Income 2,376 2,105 -11% 1,086 1,019 -6%
Operating Income 9,059 8,849 -2% 4,511 4,338 -4%
Cost of Credit 1,598 1,829 14% 827 1,001 21%
Risk Adjusted Op. Income 7,461 7,020 -6% 3,684 3,336 -9%
Operating Expenses 4,699 4,961 6% 2,489 2,472 -1%
Net Profit after taxes 1,985 1,489 -25% 875 614 -30%
Normalized NPAT 1,985 1,753 -12% 938 816 -13%
Untuk Anda, Bisa
Slide 6
Key Ratios
*) Loan to funding is defined as (Loans + Reserves with BI + Cash in Vault + HTM bonds) / (Third Party Deposits + net borrowing and LTF + net capital)
% 1H13 1H14 YoY 1Q14 2Q14 QoQ
Net Interest Margin 9.9 8.4 -1.5 8.6 8.1 -0.5
Cost of Credit 2.8 2.7 -0.0 2.5 3.0 0.5
Cost / Income 51.9 56.1 4.2 55.2 57.0 1.8
BOPO 75.7 69.7 -6.1 89.6 56.0 -33.6
ROAA 2.6 1.6 -1.0 1.9 1.3 -0.6
ROAE 14.3 9.8 -4.5 11.4 8.1 -3.3
Assets to Capital (x) 6.0 6.3 0.3 6.2 6.3 0.1
Stand Alone Loan to Funding * 91.9 91.6 -0.3 85.6 91.6 6.0
Consolidated Loan to Funding * 91.1 91.4 0.3 86.7 91.4 4.7
Regulatory LDR 105.4 98.9 -6.4 94.1 98.9 4.8
Stand Alone CAR 18.4 17.8 -0.6 18.4 17.8 -0.6
Consolidated CAR 18.7 17.7 -1.0 18.8 17.7 -1.0
NPL – Gross 2.4 2.1 -0.3 1.9 2.1 0.2
Loan Loss Coverage (LLP/Total Loans) 2.6 2.6 0.0 2.5 2.6 0.1
Coverage (LLP/NPL) – Mass Mkt 112.0 118.7 6.7 123.2 118.7 -4.5
Coverage (LLP/NPL) – Non Mass Mkt 119.4 146.2 26.7 151.8 146.2 -5.7
Untuk Anda, BisaSlide 7
A new OJK regulation on Insurance Fee impacting ADMF’s
fee income recognition
Background
Fee Income
Recognition
• On 31 December 2013, OJK issued new regulation, in the form of circular letter, No SE-
06/D.05/2013 regarding vehicle insurance, which took effect on March 1, 2014
• By this regulation, OJK :
• set a range of gross premium that an insurance company could charge to customers
• regulate the commission to be given to agents and the discount to customer, which are
based on the gross premium
• As such, third parties (including multifinance companies and banks) are prohibited to sell
insurance at the rate higher or lower than the premium rate set by the regulator.
• To certain extend, the new regulation would benefit Adira Insurance, due to regulated pricing
that would eliminate unhealthy price competition among general insurance companies
• Income generated from insurance would need to be amortized vis-a-vis booked upfront
previously, hence, pricing adjustment must be made to maintain economics of the loans.
• ADMF need to recognize the incomes from insurance premium discount and other loan related fee
over the loan tenor using the effective interest rate (EIR) method.
• There is a timing difference between the amount that is recognized under the EIR method and the
amount should the income recognized immediately (cash basis).
Untuk Anda, BisaSlide 8
A new OJK regulation on Insurance Fee impacting ADMF’s
fee income recognition (continued)
Financial
Impact
• Depending on the loan tenor, financial impact of the income recognition will vary. Assuming loan
with tenor of 3 years, under the EIR income fee will be recognized as follow:
• Year 1: 54%
• Year 2: 34%
• Year 3: 12%
• Throughout the years, the income would be normalized. For comparison, ideally if regulation had
not been introduced, Adira Finance could directly recognize the income immediately.
Untuk Anda, Bisa
Slide 9
IDR Cost of Funds (%), LDR (%)
9394.6
101.9104102.5
9.67.2
9.28.88.1 8.1
6.86.25.24.8
2Q13 3Q13 4Q13 1Q14 2Q14
Liquidity : Average LDR stood at 93%
◄ Daily Ave
LDR
◄ ADMF CoF
◄ IDR CASA,
TD CoF
IDR Yield (%), IDR Loans (Rp tn)
37%37%38%40%41%
63%63%62%60%59%
24.3
12.7
24.124.3 24.2 25
11.7 11.9 12.2 12.6
2Q13 3Q13 4Q13 1Q14 2Q14
127.7112.7 116.0 122.3
◄ Non Mass
Mkt +4w
Yield
◄ Mass mkt
loans yield
NIM and Risk Adj NIM (%)
6.8 7.0 6.8 6.1
2.8 2.7 2.3
5.1
3.02.5
2Q13 3Q13 4Q13 1Q14 2Q14
Risk Adj NIM CoC
9.7 9.7 9.1
• LDR stood at 98.9% in June 14 from last quarter of
94.1% due to release of expensive funding to ease
CoF, while the average LDR was 93%, in a
declining trend.
• Increase in ADMF CoF mainly driven by re-pricing
of matured bonds and matured loans.
• Yield in non mass market rose 100bps, while mass-
market yield was stagnant.
◄ Mass mkt
loans
◄ Non Mass Mkt
+4w loans
124.1
8.6 8.1
Untuk Anda, Bisa
Slide 10
ADMF - JF and Self Finance (Rp tn)
38%39%49%67%37%
61%51%33% 63%62%
49.148.648.345.641.3
2011 2012 2013 1Q14 2Q14
JF Self Finance
Capital
20%
Borrowi
ngs
39%
Bonds
41%
Liquidity : Continue the use of long term funding, accounted
for 85% of ADMF source of fund, saved LDR by 35.5%.
• The use of long term funding is a strategic option to
diversify funding and provide more steady liquidity
amidst the increasing rate environment, as well as
to address interest rate risk and asset-liability
duration mismatch.
• The use of long term funding reduced JF portion in
ADMF and capital.
ADMF Source of Fund
Capital
15%
Borrowi
ngs
42%
Bonds
43%
1H13 1H14
Rp 25.5tn Rp 26.7 tnLoan to Funding - Conso 1H14 (%)
28
126.9
98.9102.9
91.4
24
BDI Stand
Alone
BDI +
ADMF
Loans
LDR Consol Loan to
Funding
▲
ADMF
loans
LT. Fund
▼
Untuk Anda, Bisa
Slide 11
CASA Journey : CASA ratio stood at 44%, improved from
last quarter’s 42%.
Customer Deposits (Rp tn)
44%45%48%41%
26%
56%55%
52%
59%74%
2008 2011 2013 1H13 1H14
CASA TD
7588
111
Customers People & Infrastructure Product / Services
• Grow the customer base focusing on self
employed and affluent segment
• Leverage Adira and DSP – 4 Adira branches
piloting for cross selling and expand to all
Adira branches by end of year 2014
• Relocation of non performing ATMs and
branches
• Launched SMS Banking and in Q3 – 2014 will
launch Mobile Banking apps
• Introduced Customer Lifecycle Management to
increase the stickiness of customers
• Improve skills and increase +/- 1,000 number
of sales force to nearly 3,000 by end of 2014
from 2008.
• Financial Supply Chain to boost funding
• X-sell, new Bancassurance and CASA
products
• Speed up process, reduce queuing time
• Centralized complaint handling system
93110
High cost TD was released to ease CoF
25.9 26.3 26.2 26 26.8 26.9 26.5 27.9 28.8 32.1 29.4 29.1 28.3 29.3
61.665.2
61.361.357.654.35355.150.649.151.349.648.347.2
Mar-
13
Apr-
13
May-
13
Jun-
13
Jul-
13
Aug-
13
Sep-
13
Oct-
13
Nov-
13
Dec-
13
Jan-
14
Feb-
14
Mar-
14
Jun-
14
SA (Rp tn) TD (Rp tn)CAGR
CASA 5yr
22%
Y-y CASA
17%
Untuk Anda, Bisa
Slide 12
NoA
191
482
655
804
Dec-12 Dec-13 Mar-14 Jun-14
CASA journey: Financial Supply Chain to boost funding
showed promising outlook.
FSC Funding Project (Rp bn)
1,059
932
693
572703
1,0541,024
1,478
1,146
668
656770
1,1581,138
Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14
O/S Ave. Bal• Financial Supply Chain (FSC) is a joint program between
Wholesale, SME and ADMF to optimize funding capacity
targeting principal/anchors down to distributors nationwide
• There are more than 24 anchors and 332 distributors
participating in this program.
• YTD average balance growth reached 30%, with CASA
portion of 72% as of June 14
30%
• CASA supply chain is one of Danamon’s funding programs
(SME, retail banking & DSP) specifically targeting
distributor, retailers, students, individual/employees
particularly to boost CASA in certain area.
• The major contributors for this project are SME and Retail
Banking.
• Both outstanding balance and NoA booked encouraging
YTD growth of 41% and 67%, respectively.
CASA VC Project
(Rp mn)
474
4,6214,850
6,512
Dec-12 Dec-13 Mar-14 Jun-14
O/S
41%
67%
Untuk Anda, Bisa
Slide 13
Overall loans grew by 13%, with shift of assset mix.
54% 53% 52% 52% 51%
7% 6% 7% 7% 7%
27% 27% 28% 28% 29%
12%13%
14% 14%14%
2Q13 3Q13 4Q13 1Q14 2Q14
Loan Composition Rp trillion
124129
135
Loan Growth
%
Rp billion 1H13 1H14 YoY
Wholesale 15,119 19,360 28%
SMEC* 33,370 40,229 21%
Retail 8,264 9,933 20%
Mass
Market67,182 71,124 6%
Total 123,935 140,647 13%
* SME and Commercial segments
136
• Loans rose 13%
underpinned by non-
mass market
segment that
expanded 22% to Rp
70 trillion.
• Mass market growth
remained modest at
6% to Rp 71 trillion,
reducing the share of
loan portfolio to 51%
vs last year’s 54%.
141
Untuk Anda, Bisa
Slide 14
SME Loans (Rp tn)
22.919.8
11.314.2
17.821
2010 2011 2012 2013 1H13 1H14
SME : Continuously monitor loan growth and asset quality
CAGR 23% 16%
10.9
4.32.5 2.1
19.8
13
4.72.9 2.2
22.9
Java, Bali,
Lampung, NTT,
NTB
Sumatra Kalimantan Sulawesi + E.Ind Total
1H13 1H14
SME Outstanding Loans by Region (Rp tn)
19%
9% 17%8%
16%
• The increase in NPL is primarily caused by smaller ticket SME/Emerging SME (below Rp 3bn).
• Special Mention increase in SME segment mainly caused by coal mining related sector.
BDI SME Special Mentioned Loans
597
464
239345353
2.62.21.11.71.8
2Q13 3Q13 4Q13 1Q14 2Q14
Rp bn %
BDI SME NPL
444
346290273250
1.91.61.41.31.3
2Q13 3Q13 4Q13 1Q14 2Q14
Rp bn %
Untuk Anda, Bisa
Slide 15
Trade Finance : 41% Expansion
Cash Loans (Rp tn)
11.9
8.5
9.8
6.9
4.43.4
2010 2011 2012 2013 1H13 1H14
CAGR 43%
Customers People & Infrastructure Product / Services / Coverage
• Robust growth driven by Corporate and
Commercial segment.
• Providing product-bundling solutions
through synergy with other banking
products
• Danamon is investing New Trade Finance
System (NTFS) to add more customer touch
point.
• 28 trade specialists
• Centralized Trade Operation, enabling
Danamon to process and serve efficiently
• Generic, Structured, Commodity Financing &
Syariah (e.g. L/C, trust receipt, guarantee,
outgoing collection service, outgoing collection
financing)
• Trade Service Point at Port (TSPP) in Jakarta,
Medan and Surabaya for Import Tax Payment
and B/L endorsement
• Trade representatives in 14 big cities in Java,
Sumatra, Kalimantan, Sulawesi.
Best Trade Finance bank
in Indonesia by Exporta
2011, 2012, 2013
Best Local Trade Bank
2009
by Euromoney
The Best Trade Bank
2007 - 2009
by FinanceAsia
The Best Trade Bank
In Indonesia 2006
by Asiamoney
The Best Trade Bank
2005 - 2012
Best Local Cash Management
Bank in Indonesia by Asiamoney
2009 - 2011
41%
Non - Cash Loans (Rp tn)
9.8
6.8
9.9
5.64.94.2
2010 2011 2012 2013 1H13 1H14
CAGR 34%
44%
Untuk Anda, Bisa
Slide 16
Commercial Loans and NPL
17.416.6
13.68.4 10 12.7
01.40.31.63.35.2
2010 2011 2012 2013 1H13 1H14
Rp bn NPL (%)
Corporate and Commercial Funding
(Rp tn)
31.632.3
22.217.9
20.324.3
2010 2011 2012 2013 1H13 1H14
Corporate and Commercial : Strong growth with managed
asset qualityCorporate Loans and NPL
19.418.815.1
10.7 12.5 12.7
0.92.7
1.13.83.43.9
2010 2011 2012 2013 1H13 1H14
Rp bn NPL (%)
CAGR 22%
CAGR 21%
28%
CAGR 26%28%
42%
Others
, 77%
Corp,
Comm.
, 23%
Others
, 74%
Corp.,
Comm.
, 26%
Jun-13 Jun-14
Corporate and Commercial Lending Portion
Untuk Anda, Bisa
Slide 17
Mass Market Loan Growth
Mass market segment rose modestly at 6% on the back of
softer growth of DSP and ADMF
Rp billion 1H13 1H14 YoY
Adira
Quantum 1,549 1,635 5%
Adira Finance 45,814 49,132 7%
DSP 19,818 20,357 3%
Total 67,182 71,124 6%
Mass Market Loan (to total loans)Rp trillion
14%15%15%15%16%
35%36%36%37%37%
1% 1% 1% 1% 1%
2Q13 3Q13 4Q13 1Q14 2Q14
67 69 70 70
• Contribution of
ADMF and DSP
reduced by 2%
each from last
year primarily due
to slower industry
growth and
competition,
respectively.
71
Note:
Adira Quantum : white goods financing
Adira Finance : auto financing
DSP : micro lending
Untuk Anda, Bisa
Slide 18
ADMF : 1H14 New Financing grew by 9% to Rp 16.8 tn
Note: Including JF portion.
New Financing (Rp tn)
15.516.8
33.732.432.6
2011 2012 2013 1H13 1H14
9%
2W New Financing (Rp tn)
8.69.8
1919.420.4
2011 2012 2013 1H13 1H14
13%
4W New Financing (Rp tn)
6.8 7.1
14.713.112.2
2011 2012 2013 1H13 1H14
4%
2W Sales and ADMF Mkt Share
8,0447,142 7,771
4,2163,940
11.710.9
15.8 15.7
12.6
2011 2012 2013 1H13 1H14
◄ Industry
unit sold
(000)
◄ ADMF Mkt
Shr (%)
4W Sales and ADMF Mkt Share
894 1,116 1,230
642602
4.84.96.6 5.7 5.4
2011 2012 2013 1H13 1H14
◄ Industry
unit sold
(000)
◄ ADMF Mkt
Shr (%)
Untuk Anda, Bisa
Slide 19
ADMF : Repo assets, loss on repo assets and NCL has
been manageable
Repo Assets as % of Receivables (%)
0.020.02
0.04
0.02
0.03
0.04
0.40.40.400.460.470.53
2010 2011 2012 2013 1H13 1H14
>180 days All stock
Loss on Repo Assets - Average (%)
24.624 2326 27 27
2010 2011 2012 2013 1H13 1H14
NCL ADMF (%) - A sustained performance
3.53.53.53.83.73.83.93.73.83.94.244.24.1
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
• Since end of 2013, NCL was at a stable level with the
company’s prudent and an end-to-end approach risk
management.
NCL: [Recovery of write - off] - [Loss on Repossession] - [write - off]
• % Repo / ENR was
maintained at 0.4%
• Old Inventory
(>180 days) stayed
at 0.02%
• LOR Rate
relatively showed
manageable trend
Untuk Anda, Bisa
Slide 20
8.94.6 6.3
19.7
8.95.0 6.4
20.3
Jakarta &
Java
East
Indonesia
Sumatera Total
1H13 1H14
SEMM : Monitoring asset quality is paramount amidst
challenging growth outlook.
• Java growth for DSP remains a challenge.
• Agri business grow nicely, while asset quality remain intact and funding effort through micro branch networks show some progress.
1.7 1.8
1H13 1H14
5%
1.7 2.0
1H13 1H14
20%0%
10% 2%
3%
Customers People & Infrastructure Asset Quality Management
• Boost upper tier micro to reach Rp 1.3tn from
Rp 678bn in 1H2014
• Referral program through DSP prime
customers (3,000 referrers)
• Implementation of CPA (credit process
application) in all branches.
• Direct reporting of credit officers to Risk in
hub & spoke branches.
• Mobile Collection.
• Implement Hub and Spoke models in selected Java
and Jakarta units.
• To date 137 units have been merged,while 122
Pasar units in Java and Jakarta area will be
converted into functional office.
• Optimize capacity (10% reduction of non
performer).
• Competency building (increase knowledge scoring
target).
• To further manage asset quality, several new
initiatives are undertaken amongst others:
– Changing KPI for Account Officer
and Teller
– Assigning dedicated collection team
for specific industry
Loans by Region (Rp tn) Solusi Modal (Rp tn) Agri (Rp tn) Funding (Rp tn)
1.2 1.3
1H13 1H14
7%
Untuk Anda, Bisa
Slide 21
Adira Insurance : Strong growth of GWP and number of
active policy
Gross Written Premium (Rp bn)
923
1,792
8221,085
1,4741,605
2010 2011 2012 2013 1H13 1H14
No of Active Policy (000)
8,1637,6236,562
4,680
5,660 5,799
2010 2011 2012 2013 1H13 1H14
% 2010 2011 2012 2013 1H13 1H14
RBC 401 337 234 205 262 185
CIR 31 32 35 40 40 39
RoE 36 38 36 29 28 33
RoA 15 14 11 9 8 9
• GWP in 1H14 was Rp923 bn or increased by 12%YoY.
• No. of active policies 1H14 was 8,1 mn; rose 24% from
last year
• Cost to Income ratio improved to 39%
• RoE increased strongly to 33% from 28% a year ago,
while RoA also improved to 9%
CAGR 18%CAGR 18%
Note: Lower RBC and RoA from 2011 to 2012 due to the implementation IFRS Insurance
12%
24%
Untuk Anda, Bisa
Slide 22
1H14 - GWP by Source of Business
Others
10%
Financial
Indust.
81%
Agent,
Dealer,
Biz
Alliance
7%
Strategic
Ind
2%
Adira Insurance : Leading Indicators
1H14 - GWP by Class of Business
Auto
68%
Engi
3%
Others
19%
HE
2%
Property
8%
Rp bn
MV 624 (68%)
Non MV 298 (32%)Rp 923 bn
Rp bn
Group 623 (67%)
Non Grp 300 (33%)Rp 923 bn
Customers People & Infrastructure Products / Services / Coverages
• Call center serves 24 hour and during 2014
receive 7 thousands number of calls per
month
• Serving customers by 710 certified agents as
of Jun 2014
• Supported by 1,162 employees in 53 outlets
by end of June 2014
• Health business supported by 968 Hospitals &
Clinics
• Health insurance includes hospitalization,
outpatient, dental & optical care.
• Trade Credit Insurance which protect the
Account Receivable from Buyer/Distributor’s
bad debt.
• In Q1 2014 launched Typhus Insurance (Micro
Insurance)
Untuk Anda, Bisa
Slide 23
Bancassurance excluding one time
fee (Rp bn)
96
171
96104
140 129
2010 2011 2012 2013 1H13 1H14
Cash Management (Rp bn)
135
253
120
192216 228
2010 2011 2012 2013 1H13 1H14
Fee Income : General Insurance dominated fee income,
rose 18%.
Rp 788 bn
Distribution of Fee Income
1H14 (%)
Gen ins,
49%
Cash Mgt,
17%
Bancas.
Excl one
time fees,
12%
Others,
22%
General Insurance (Rp bn)
383
687
323
504
618 664
2010 2011 2012 2013 1H13 1H14
Note : General insurance including investment fees
CAGR 10%
CAGR 18%
CAGR 11%
18% 13%
1%
Untuk Anda, Bisa
Slide 24
Asset Quality :BDI Loans are dominated by trading industry.
Overall NPL still manageable.
BDI NPL (%)
2.61.8
3.11.6
2.71.2
6.8
2.3 1.70.7 1.0 1.3
0.5
9.5
Trading Household Processing Real Est. Agri Construct. Mining
Jun-13 Jun-14
BDI Loans by Industry (% of total loans)
32.1
2314.7
7 4.7 1.8 2.1
35.1
2015.3
6.8 4.6 1.9 1.8
Trading Household Processing Real Est. Agri Construct. Mining
Jun-13 Jun-14
Industry Loans by Industry (% of total loans)
29
14
5
24
8 85 6
29
14
5
25
9 85 5
Trading Mortgage Auto Processing R.Estate,
Biz
Agri Construction Mining
Apr-13 Apr-14
• Trading loans rose driven by Commercial and
Corporate segment
Industry NPL (%)
2.7 2.41
2.1 1.6 1.9
3.9
1
2.8 2.41.1
2.0 2.51.6
4.4
1.9
Trading Mortgage Auto Processing R.Estate, Biz Agri Construction Mining
Apr-13 Apr-14
• Increase in NPL ratio for mining industry is
partly caused by worsening performance of
some coal-related borrowers
Untuk Anda, Bisa
Slide 25
Operating expense has been trending down for the past
three quarters. Y-y growth was managed at 6%.
4,603 4,743 4,659 4,511 4,338
2,391 2,507 2,489 2,489 2,472
2Q13 3Q13 4Q13 1Q14 2Q14
Operating Income Operating Expense
Operating Income and ExpenseRp billion
57.055.253.452.852.0
◄ Cost to
Income Ratio
(%)
Untuk Anda, Bisa
Slide 26
Cost of Credit was 2.7% in 1H14 vs 2.8% last year
3.02.52.3
2.72.8
86%89%
81%95%
86%
14%
11%
19%
5%14%
2Q13 3Q13 4Q13 1Q14 2Q14
Mass Market Non Mass Market
Cost of Credit / Avg. Loans
(%)
Cost of Credit
(Rp billion)
828 835751 827
1,001
Untuk Anda, Bisa
Slide 27
NPL remained low
66% 72% 74% 74% 73%
4% 4% 5% 4%5%15% 18%
15% 15%15%
15% 6% 7% 7%7%
2Q13 3Q13 4Q13 1Q14 2Q14
Wholesale
SM E &
Commercial
Retail
M ass market
87.5% 90.1% 88.6% 88.4%88.4%
10.1% 9.4% 9.5% 9.5%8.0%2.2% 1.9% 2.1%2.4% 1.9%
2Q13 3Q13 4Q13 1Q14 2Q14
Non-
Performing
Special
Mention
Current
Loan’s Collectibility% of Outstanding loans
Non-Performing Loans by SegmentRp billion
2,935 2,799 2,5502,5352,909
Untuk Anda, Bisa
Slide 28
Majority of special mention loans were within 30 days
90%92%91%92% 87%
3%
3%3%3% 3%3% 4%
2%
5% 6%2% 3%
3%
2% 3%
2Q13 3Q13 4Q13 1Q14 2Q14
Wholesale
SME & Commercial
Retail
Mass market
85.2% 84.6% 85.0% 83.7% 83.9%
9.70% 9.90% 9.60% 10.70% 10.5%
5.2% 5.5% 5.4% 5.7% 5.6%
2Q13 3Q13 4Q13 1Q14 2Q14
61 - 90 Days
31 - 60 Days
1 - 30 Days
Special mention loans by Aging% of Special Mention Loans
Special Mention Loans by SegmentRp billion
12,54612,139
10,87712,882 13,432
Untuk Anda, Bisa
Slide 29
Ample capitalization for growth
RWA / Total Assets Capital Adequacy Ratio (%)
% 2Q13 3Q13 4Q13 1Q14 2Q14
CAR w/ Credit
Risk23.5 22.8 22.0 23.5 22.1
Market Risk
Charge0.1 0.1 0.0 0.0 0.1
Operational
Risk Charge4.7 4.4 4.1 4.7 4.3
CAR
Consolidated18.7 18.3 17.9 18.8 17.7
RWA BDI Only RWA Consolidated
18.2 17.817.3
18.3
17.2
0.50.5
0.6
0.5
0.5
2Q13 3Q13 4Q13 1Q14 2Q14
Tier 1 Capital Tier 2 Capital
Tier 1 and Tier 2 capital ratio (%) - Consol
72%68%67%68%72%
2Q13 3Q13 4Q13 1Q14 2Q14
89%86%84%86%90%
2Q13 3Q13 4Q13 1Q14 2Q14
RWA Other Assets
18.718.3
18.818.7 18.3 17.9 17.7
18.4 18.1 17.818.417.5
2Q13 3Q13 4Q13 1Q14 2Q14
Consolidated Stand Alone
17.9
18.8
17.7
Untuk Anda, Bisa
Slide 30
• Financial Results
• Appendix
Agenda
Untuk Anda, Bisa
Slide 31
Danamon Rating
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
6,796 254 62 2,891 (7,931) - (34) 2,037 (503) (46) 1,489
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
6,858 3,144 10,003 (7,931) 2,071 - (34) (503) (46) 1,489
(115) (115) 115 - - LPS Deposit Insurance
(11) (11) (11) 11 - Provision for ADMF acquisition cost
(82) (82) (82) 82 - Write off on amortization cost
(100) (100) 100 - - ADMF indirect acquisition cost
(426) (426) 426 - - Decrease in fair value of f inancial assets (MTM)
(2) (2) 2 - - Losses from sale of f inancial assets (marketable securities)
(238) (238) 238 - - - Losses from spot and derivative transaction (realised)
- 1,921 1,921 (1,921) - Impairment losses on f inancial assets
(170) (170) 170 - - Fees/commissions and administrative expenses
(10) (10) (1) (11) 11 - Others
6,744 2,105 8,849 (4,961) 3,888 (1,829) (23) (503) (46) 1,489
Newsletter
Analyst Briefing Presentation
Untuk Anda, Bisa
Slide 33
Inflation benign, trade bounced back to a small surplus
Inflation
• June’s inflation remained
well anchored at
0.43%mom (6.7%yoy) as
better food supply reduce
pressure on food prices
• There could be some
impact of the electricity tariff
increase that will start to
apply in July. But based on
the revised budget deficit
(fiscal deficit approved at
2.4% of GDP), fuel price
hike is not on the table this
year, thus we expect the YE
inflation to reach 5.3%yoy
Trade
• Trade bounced back to a
small surplus of USD 70mn
due to a sharp drop on
imports. We expect the
current account deficit to
reach 2.9% of GDP this
year.
• Consumption indicators
remained relatively stable.
Inflation
%yoyTrade
-50
-35
-20
-5
10
25
40
55
70
85
-3.0
-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
0102030405060708091011120102030405060708091011121 2 3 4 5 6 7 8 9 1011121 2 3 4 5
2011 2012 2013 2014
Trade Balance (lhs)
Export (fob)
Import (cif)
USD bn %YoY
Car and Motorcycle sales
%yoy
Retail Sales
%yoy
Untuk Anda, Bisa
Slide 34
BI Rate Maintained, Rupiah remained volatile
Interest Rate%
Foreign Exchange ReservesUSDmn
Source: CEIC, Bloomberg
Credit Growth
%BI Rate
• BI kept BI rate at 7.5% in
June as economic data
relatively stable.
• The lending facility rate and
the deposit facility rate were
also kept at 7.5% and
5.75%.
• Credit growth declined
further to 18.5% yoy in Apr-
14.
• Inflation target range
maintained at 3.5-
5.5%yoy(2014) and 3.5%
(2015)
• Forex reserve in June rose
slightly at USD107.7 bn .
Rupiah & Bond Yield
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
8.0
Ma
r-11
Ap
r-11
Ma
y-1
1J
un
-11
Ju
l-11
Au
g-1
1S
ep
-11
Oc
t-11
No
v-1
1D
ec
-11
Ja
n-1
2F
eb
-12
Ma
r-1
2A
pr-
12
Ma
y-1
2J
un
-12
Ju
l-1
2A
ug
-12
Se
p-1
2O
ct-
12
No
v-1
2D
ec
-12
Ja
n-1
3F
eb
-13
Ma
r-1
3A
pr-
13
Ma
y-1
3J
un
-13
Ju
l-1
3A
ug
-13
Se
p-1
3O
ct-
13
No
v-1
3D
ec
-13
Ja
n-1
4F
eb
-14
Ma
r-1
4A
pr-
14
Ma
y-1
4J
un
-14
BI Rate SBI 9m
PUAB O/N TD 6-8m
%pa
FASBI O/N
Repo rate
Rupiah & Bond Yield
• Rupiah strengthen to
Rp11,555/USD (after
reaching as weak as
Rp12,103/USD) as positive
perception over the national
election continued
• Possible swing in the rupiah
awaiting for the real count
result
8000
8500
9000
9500
10000
10500
11000
11500
12000
12500
4
5
6
7
8
9
10
% Rp/$
IDR - RHS
10 year Yield
Untuk Anda, Bisa
Slide 35
Selected Economics Indicators
Indonesia 2010 2011 2012 2013 2014E 2015E
National Account
Real GDP (% YoY) 6.2 6.5 6.2 5.8 5.3 5.8
Domestic demand ex. Inventory (% y-o-y) 5.3 5.7 6.2 5.1 5.4 6.0
Real Consumption: Private (% y-o-y) 4.7 4.7 5.3 5.3 5.4 5.2
Real Gross Fixed Capital Formation (% y-o-y) 8.5 8.8 9.8 4.7 4.0 8.2
GDP (US$ bn) – nominal 709 847 879 871 894 1,062
GDP per Capita (US$) – nominal 2,983 3,514 3,596 3,490 3,526 4,135
Open Unemployment Rate (%) 7.1 6.6 6.3 6.3 6.1 6.1
External Sector
Exports, fob (% YoY, US$ bn) 32.1 26.9 -6.3 -2.6 1.7 6.0
Imports, fob (% YoY, US$ bn) 43.7 30.8 8.3 -1.4 3.0 4.2
Central government debt (% of GDP) 26.1 24.6 23.1 22.0 21.2 22.2
International Reserves – IRFCL (US$ bn) 96.2 110.1 112.9 99.4 100.8 103.5
Reserve cover (Imports and external debt) 7.1 6.3 6.1 5.4 5.6 5.8
Currency / US$ (Year-end) 8,991 9,068 9,670 12,189 11,600 10,754
Other
BI Policy Rate (% year end) 6.50 6.00 5.75 7.50 7.50 7.75
Consumer prices (% year end) 6.96 3.79 4.30 8.38 5.26 6.13
Fiscal balance (% of GDP; FY) -0.73 -1.16 -1.77 -2.24 -2.30 -2.00
Source: BPS, Bank Indonesia, Danamon Estimates
Untuk Anda, Bisa
Slide 36
Thank You
Investor Relations
PT Bank Danamon Indonesia, TbkMenara Bank Danamon, 6th Floor
Jl. Prof. Dr. Satrio Kav. E4 No.6
Mega Kuningan, Jakarta 12950
Phone: +62 21 5799 1001-03
Fax: +62 21 5799 1445
Email: [email protected]
IR Contacts:
Kienata – [email protected]
Indah Hermawan – [email protected]
Ridy Sudarma – [email protected]
Noorvia Kesuma – [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 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 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 affiliated 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 DanamonIndonesia Tbk and/or its affiliated 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 here from which might otherwise arise.
Top Related