10
NPL Movement - Consolidated
62.2
8.4 7.3
9.7 19.8
1.6 138.5
146.7 129.5
82.3 190.4
Q1 Q3
Q1 1
Q3 1
Q1 2
Q3 2
Q1 3
Q3 3
Q1 4
Gross NPL Ratio Net NPL Ratio
Prov NPL
Asset Quality
Conservative provisioning at 31 Mar ‘04:
¾ ProvNPL coverage = 138.5
¾ Collateral values not deducted for 3,4,5
¾ Excess to BI requirement = Rp 2.8 tn
Restructuring and recovery during Q1 ‘04:
¾ Written-off loans recovered = Rp 189 bn
¾ NPL collections = Rp 184 bn
NPL Breakdown by Customer Segment
NPLs PLs
50
15
3
15
5
2
100 2
Mandiri Policy
100 50
1
BI Requirement
5 4
1
Provisioning By Collectibility
73.2 4.2
30.1 38.9
Loans Outstanding
Rp tn
3.46 0.15
Consumer Total
Commercial Corporate
Bank Only NPL Ratio
NPLs Rp tn
8.66 6.34
8.92 2.68
9.03 3.51
11
Recap Bond Portfolio
Portfolio Sales as of Mar 2004 Rp bn
100.0 107.3
68.5 37.3
1.4 Total
100.0 7.4
85.9 14.0
Total
63.9 34.8
1.3 of Total
6.9 7.4
- -
Hedge Bonds 80.0
59.7 24.8
1.3 Variable Rate
13.1 1.4
12.5 0.1
Fixed Rate
of Total HTM
Nominal Value
AFS
Mark to Market
Trading
Mark to Market
At Fair Value, Mar 2004
Rp tn
177.4 176.9
153.5 148.8
123.0 107.3
4.0 17.5
1.0 15.8
24.5
40 80
120 160
200
1999 2000
2001 2002
2003 Q1 04
5 10
15 20
25 Recap Bonds
Bond Sales
Bond Portfolio Movement Fair Value, 1999 – Q1 ‘04
Rupiah Trillions
653 1,868
Realized Profit Unrealized Profit
Bonds Sold
IDR bn
60 52
17,540 24,505
Q1 ‘04 2003
12
27,500 55,000
82,500 110,000
137,500 165,000
192,500 220,000
247,500 275,000
Q1 00 Q2 00 Q3 00 Q4 00 Q1 01
Q2 01 Q3 01
Q4 01 Q1 02
Q2 02 Q3 02 Q4 02 Q1 03 Q2 03
Q3 03 Q4 03
Q1 03
Government Bonds Loans
Other Assets
60.6
48.5 74.1
68.2 67.8
63.6 75.4
74.7 74.9
34.1 41.6
29.9 22.1
19.3 19.0
18.1 19.0
19.8
Int. from Bonds Int. from Loans
As a
of Total Interest Income
Growing Contribution from Loans vs. Bonds – Bank Only
Total Assets Rp billions
13
20 40
60 80
100 120
140 160
180 200
Q1 00 Q2 00
Q3 00 Q4 00
Q1 01 Q2 01
Q3 01 Q4 01
Q1 02 Q2 02
Q3 02 Q4 02
Q1 03 Q2 03
Q3 03 Q4 03
Q1 04
Rp Savings Deposits Rp Demand Deposits
FX Demand Deposits Rp Time Deposits
FX Time Deposits
Funding Mix Improves
Deposit Analysis – Bank Only
Deposits by Type Rp tn
48.7 44.6
46.4 53.7
51.7 57.3
56.2 61.5 62.0
26.8 48.6
44.5 37.0
33.8 32.1
31.4 32.1
32.9
Retail Deposits Low-Cost Deposits
14
Savings Deposit Growth Generating a Better Funding Mix
40.5
15.3 28.9
22.3 17.6
24.0
10.3 15.5
11.9 10.0
11.5 11.2
15.2 16.8
Q 1
00 Q
2 00
Q 3
00 Q
4 00
Q 1
01 Q2
1 Q3
1 Q
4 0 1
Q 1 0
2 Q2
2 Q
3 0 2
Q 4
2 Q
1 03
Q 2
03 Q
3 03
Q 4
03 Q
1 04
Savings Deposits Rp tn As of Total Deposits
National Share of Savings Deposits
3.7 3.7
6.1 6.9
2.7 5.1
4.4 10.6
9.5 8.1
5.4 10.8
7.1 15.9
13.8
11.6
6.6 17.3
7.4 15.1
13.0
9.9 8.4
17.2
J an
02 Ma
r 2
Ma y
2 Jul
2 Se
p 2
No v
2 J
an 03
Ma r
3 Ma
y 3
Jul 3
Se p
3 No
v 3
J an
04 Ma
r 4
Demand Deposits Savings
Time Deposits 1 Mo. SBIs
Savings Deposit Growth Average Monthly Rupiah Deposit Costs
15
72.4 112.3
7.1 184.5
163.9
17.7 49.7
106.4 385.9
679.2 698.3
725.2 1,114.4
1,069.4
61.8 281.6
695.2
158.7 51.8
26.6
Q3 02 Q4 02
Q1 03 Q2 03
Q3 03 Q4 03
Q1 04
SMS Subs. 000 SMS Trans. 000
Call Center Trans. 000
ATM, Credit Card and Phone Banking Growth
336.5 268.7
52.2 94.2
159.0 226.2
271.8 116,649
98,004
2,709 6,270
12,201 25,429
41,744 62,551
88,310
Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04
Avg Daily Volume 000 Avg Daily Value Rp Mn
ATM Network Average Daily Transaction Volume and Value
Mandiri Visa Card Holders and Receivables Phone Banking Subscribers Transactions
275.4 225.7
245.3 275.3
338.2 357.5
567.5 747.9
814.9 645.9
823.2 785.7
Q4 02 Q1 03
Q2 03 Q3 03
Q4 03 Q1 04
Cards 000s Receivables Rp Bn
16 44.0
42.3 42.6
47.0 51.3
51.6 58.1
61.0 56.1
64.3 72.5
77.8 79.5
89.5 91.9
94.2
15.1 14.6
15.1 15.4
17.8 16.8
18.4 17.0
20.7 21.0
25.0 25.5
28.1
13.3 13.3
9.7
Q2 00
Q3 00
Q4 00
Q1 01
Q2 01
Q3 01
Q4 01
Q1 02
Q2 02
Q3 02
Q4 02
Q1 03
Q2 03
Q3 03
Q4 03
Q1 04
RWA Rp tn Total Capital Rp tn
26.1 31.3
32.2 29.3
26.4 26.6
27.9 29.8
31.4 28.5
29.3 29.8
23.4 28.6
27.7 26.4
CAR BI Min Req
17
Margins improving through better AssetsLiabilities mix
All figures - Bank Only
2. 6
2. 5
3. 2.
4 2.
5 3.
3. 3.
9 2.
9 2.
9 3.
4 2.
8 3.
3. 3
3. 3
3. 7
4. 7
0. 8
0. 8
1. 8
2. 2
1. 1
1. 5
1. 7
2. 2
2. 1
2. 2.
5 2.
2 2.
2 2.
5 3.
2 3.
2 4.
2
Q1 00
Q2 00
Q3 00
Q4 00
Q1 01
Q2 01
Q3 01
Q4 01
Q1 02
Q2 02
Q3 02
Q4 02
Q1 03
Q2 03
Q3 03
Q4 03
Q1 04
Spread NIM
11.3 10.9
11.9 13.0
12.4 12.6 12.8 13.0
13.9 13.6 13.5
13.0 11.8
11.5 10.4
9.5 9.3 10.5
10.1 10.1 10.8
11.2 11.1 11.1 10.8
11.8 11.6 11.0 10.8
9.6 9.1
7.2 6.3
5.1 Yield on Assets
Cost of Funds
18 46
57 89
135 89
162 112
173 180
339
150 190
302 282
56.7 32.8
52.8 9.6
102 101
107. 4
20.3
Q1 00
Q2 00
Q3 00
Q4 00
Q1 01
Q2 01
Q3 01
Q4 01
Q1 02
Q2 02
Q3 02
Q4 02
Q1 03
Q2 03
Q3 03
Q4 03
Q1 04
Credit Cards Transfer, Collection, Clearing Bank Reference
Others Fee from Subsidiaries
Opening LC Bank Guarantees Administration Fee for Deposit Loan
7.2 5.1
6.3 4.8
4.1 4.8
4.9 10.5
2.3 of Operating Income
Rising non-loan related fees commissions
19 379 276 359 336 319 433 259
736 360
487 490 723
387 470 561
733 491
370 325 211
294 293
417 327
402 457 409
485 476
394 558
380 666
957
Q1 00
Q2 00
Q3 00
Q4 00
Q1 01
Q2 01
Q3 01
Q4 01
Q1 02
Q2 02
Q3 02
Q4 02
Q1 03
Q2 03
Q3 03
Q4 03
Q1 04
GA Expenses Rp bn Personnel Expenses Rp bn
33.7 38.9
42.5
36.9 34.4
27.0 33.8
40.0 37.1
31.1 39.9
42.8 40.4
Cost to Income Ratio Annual Avg
20
Bank Only, As of March 2004
31.2 38.339.7
43.945.2 52.3
68.268.2 74.3
90.0
Ma n
d ir
i BN
I
Da n
a m
o n
BR I
BC A
C it
iba nk
BI I
Pe rm
a ta
BT N
Li pp
o
229 191
147 112
95 70
60 49
89 87
C it
iba nk
Ma n
d ir
i BN
I BT
N Da
n a
m o
n BC
A BR
I BI
I Pe
rm a
ta Li
pp o
9,131 7,715
7,051 5,5325,483
3,5433,4893,351 2,436
2,914
Man d
ir i
C it
ibank BN
I BT
N BC
A Li
ppo BI
I Pe
rm a
ta BR
I
Da n
a m
o n
3,967
1,383 728
1,388 1,487
1,576 1,608
3,421 3,458
3,891
Ma n
d ir
i C
it iba
nk BN
I BT
N BR
I
Da n
a m
o n
Pe rm
a ta
BI I
BC A
Li pp
o
Q1 Revenue Employee Rp Mn
Q1 Cost Income Loans Employee
Rp Mn
Deposits Employee Rp Mn
131.8 116.3
55.4 52.5 50.0 44.4
33.9 31.9 18.2
8.4
C it
iba nk
Ma n
d ir
i BN
I
Da n
a m
o n
BC A
BR I
BI I
BT N
Pe rm
a ta
Li pp
o
Q1 Pre Tax IncomeEmployee Rp Mn
0.5 0.6
0.6 0.9
1.0 1.1
1.1 1.1
1.3 1.3
Ma n
d ir
i BN
I BC
A Da
n a
m o
n Pe
rm a
ta BI
I BT
N Li
pp o
BR I
C it
iba nk
Q1 CostAssets
Industry Average
21
3,357 4,145
3,514 4,305
1,769 1,454
260 114
126 2,021
2,072
777
1,027
1,500 3,000
4,500 6,000
7,500
2000 2001
2002 2003
Q1 04
Gain on SaleValue of Securities FX Gain
Core Earnings
Pre-Provision Operating Profit
IDR bn
Q1 2004 core earnings expand by 72.2 from Q1 2003
Q1 ‘03
22
8.1 21.5
26.2 24.0
30.8 RoE - After Tax
Annualized
Q1 PAT of Rp 1,744 bn is an increase of 12.6 on Q1 2003
472 308
1,168 1,549
1,744
290 1,300
602 690
967 1,017
1,528
410 645
799 819
829
2000 2001
2002 2003
2004
Q4 PAT Q3 PAT
Q2 PAT Q1 PAT
23
Potential Upsides
Written-off Loans Written-off Loans
Aggregate of IDR 21.29 tn US 2.49 bn in written-off loans as of end-March 2004, with significant recoveries on-going:
¾
2001: IDR 2.0 tn US 224 mn
¾
2002: IDR 1.1 tn US 123 mn
¾
2003: IDR 1.2 tn US 147 mn
¾
Q1 ’04: IDR 0.19 tn US 22 mn
Property Revaluation Property Revaluation
Property revalued by Rp. 3.0 trillion in our June accounts
Based upon a valuation by Vigers as of June 2003, an additional Rp. 2.8 trillion remains un-booked
Conservative Provisioning
Conservative Provisioning
Conservative provisioning policy resulted in allowances on loans exceeding BI’s minimum requirements
¾
As of 31 March 2004, excess provisions totaled IDR 2.814 tn US 329 mn
Loan Collateral Undervalued
Loan Collateral Undervalued
Collateral values on NPLs are generally not included for provisioning purposes due to outdated valuations
24
Corporate Actions
Dividend Policy
Dividend Policy
50 Dividend payment policy maintained
Based upon Full Year EPS of Rp 229:
Rp 65 :
¾ Final Dividend approved at AGM on 05 May 2004
11 June 04 :
¾ Cum Dividend Date
14 June 04 :
¾ Ex Dividend Date
: :
:
30 June 04 ¾
Payment Date Rp 50
¾ Less Interim Dividend paid in Dec 2003
Rp 115 ¾
Total Dividend Payout declared
25
In Conclusion
Despite no overall growth in assets and loans during Q1 2004:
Asset mix continues to improve
Liability mix continues to improve
Retail banking continues to grow now on the asset side
Margins improving
Transformation in corporate governance, risk management and corporate culture continues
Asset mix continues to improve
Liability mix continues to improve
Retail banking continues to grow now on the asset side
Margins improving
Transformation in corporate governance, risk
management and corporate culture continues
26
Bank Mandiri Financial Summary Bank Mandiri Financial Summary
Full Year 2003
27
Summary Balance Sheet – Quarters ending March 31 Dec 31
23,299 88,456
41,719 41,843
172,018 67,758
8,894 6,421
70,231 76,652
68,518 37,321
1,478 107,317
4,335 10,358
28,135 239,383
Rp Billions
Mar. ‘04
20.6 2,721
