Capital The Capital Adequacy Ratio CAR reached 18.6 Asset Quality At the end of 2010, the gross non-performing Management Compliance to all prevailing regulations was

BNI฀•฀2010฀Annual฀Report BNI฀•฀Laporan฀Tahunan฀2010 BNI฀•฀2010฀Annual฀Report BNI฀•฀Laporan฀Tahunan฀2010 37 •฀ to฀monitor,฀evaluate฀and฀improve฀the฀ effectiveness of Good Corporate Governance GCG practices in the Company. •฀ to฀conduct฀supervisory฀function,฀through฀its฀ committees, to ensure the implementation of effective internal control systems, integrated accounting and financial reporting systems, and transparency of disclosure, as well as an integrated process and risk management system. 2010 Performance Financially, the Bank delivered positive performance in 2010, in particular when compared to the previous year’s results. Although not all business targets for 2010 were achieved, the Bank delivered quantitative and qualitative improvements in various areas, including a net profit of Rp 4,102 billion, or 65.1 of 2009 net profit.

1. Capital The Capital Adequacy Ratio CAR reached 18.6

at the end of 2010, well above the minimum requirement and significantly increased as compared to that of 2009, which was 13.8. The increase comes from the rights issue held by the Bank in November 2010. A stronger CAR helps the Bank in developing its business and infrastructure, including better credit expansion.

2. Asset Quality At the end of 2010, the gross non-performing

loan ratio is improved by 4.3, from 4.7 in 2009. The asset quality improvement was also the result of continuous efforts by the Directors to manage and reduce the Bank’s non-performing loans.

3. Management Compliance to all prevailing regulations was

considered satisfactory, as reflected in the declining number of violations and cases to a level that will not jeopardize the operations of the Company. However, there are things that should be improved and need the attention of Directors and staff, among others things related to provision of credit and monitoring, reporting to Bank Indonesia, and internal control. •฀ memantau,฀mengevaluasi฀dan฀menyempurnakan฀ efektivitas praktik Good Corporate Governance GCG di Perseroan. •฀ melaksanakan฀pengawasan,฀melalui฀komite- komitenya, untuk memastikan terselenggaranya sistem pengendalian intern yang efektif, sistem akuntansi pelaporan keuangan yang terintegrasi dan memiliki transparansi pengungkapan yang dapat dipertanggungjawabkan, serta memastikan proses dan sistem manajemen risiko yang terintegrasi. Kinerja 2010 Kinerja keuangan Perseroan tahun 2010 menunjukkan pencapaian target dan hasil yang baik, terutama apabila dibandingkan dengan pencapaian hasil tahun buku sebelumnya. Meskipun tidak seluruh target bisnis dapat dicapai, namun terdapat perbaikan kuantitas maupun kualitas pada pos-pos dan rasio keuangan, yang besarannya tercermin pada pencapaian Laba Bersih tahun 2010 sebesar Rp 4.102 miliar, atau tumbuh sebesar 65,1 dibandingkan tahun 2009.

1. Permodalan