PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
123
51. CAPITAL ADEQUACY RATIO
The Capital Adequacy Ratio CAR is the ratio of the Bank’s capital over its Risk-Weighted Assets RWA. Under Bank Indonesia regulations, total capital includes core Tier I capital and supplementary capital Tier
II less investments in subsidiaries. To calculate the market risk exposure, the Bank could include the supplementary capital Tier III. Supplementary capital for taking account of market risk Tier III is short-term
subordinated loans which meet the criteria as capital components. The CAR of Bank Mandiri Bank Mandiri only as of December 31, 2005 and 2004 was 23.65 and 25.28 for CAR with credit risk, and 23.21 and
24.48 for CAR with credit risk and market risk, respectively and calculated as follows:
2005 2004
Capital: Tier I
20,858,866 20,283,275
Tier II
8,591,425 9,189,588
Total Tier I and Tier II 29,450,291
29,472,863 Less: Investments in subsidiaries
2,036,344 1,936,018
Total capital for credit risk 27,413,947 27,536, 845
Tier III -
-
____________________ _________________
Total capital for credit risk and market risk 27,413,947 27,536, 845
Credit RWA
115,908,987 108,934,763 Market
RWA 2,204,133
3,554,156 Total
Risk-Weighted Assets
118,113,120 112,488,919 CAR for credit risk
23.65 25.28
CAR for credit risk and market risk 23.21
24.48 Minimum
CAR 8
8 Excludes the impact of deferred tax assets of Rp127,845 and Rp88,070 as of December 31, 2005 and 2004, and unrealized losses
on available for sale securities and Government Recapitalization Bonds of Rp345,658 and Rp404,001 as of December 31, 2005 and 2004, respectively.
52. NET OPEN POSITION Net Open Position calculation as of December 31, 2005 was based on Bank Indonesia’s Regulation No.
737PBI2005 dated September 30, 2005. Based on the related regulation, banks are required to maintain aggregate and balance sheet net open position of a maximum of 20 of total capital. In accordance with
Bank Indonesia guidelines, the aggregate net open position ratio is the sum of the absolute values of the net difference between assets and liabilities denominated in each foreign currency plus the net difference of
receivables and payables of both commitments and contingencies recorded in the administrative accounts denominated in each foreign currency, which are stated in Rupiah. The Net Open Position for balance
sheets is the net difference between total assets and total liabilities in the balance sheets denominated in each foreign currency which are stated in Rupiah.
Net Open Position calculation as of December 31, 2004 is based on Bank Indonesia’s Regulation No. 513PBI2003 dated July 17, 2003. Based on the related decision letter, banks are required to maintain
aggregate net open position of a maximum of 20 of the total capital.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2005 and 2004 Expressed in millions of Rupiah, unless otherwise stated
124
52. NET OPEN POSITION continued
The NOP by currency of Bank Mandiri as of December 31, 2005 was as follows:
Currency Assets
Liabilities Absolute Open Position
AGGREGATE ON OFF BALANCE SHEET United States Dollar
47,328,306 46,984,911
343,395 Singapore Dollar
1,805,477 1,683,567
121,910 Euro 716,890
692,445 24,445
Japanese Yen 252,298
243,775 8,523
Hong Kong Dollar 248,797
123,844 124,953
Great Britain Poundsterling 125,526
75,880 49,646
Australian Dollar 30,350
17,114 13,236
Others 20,009 6,375
20,250 Total
706,358 ON-BALANCE SHEET
United States Dollar 43,919,757
41,432,545 2,487,212
Singapore Dollar 1,805,477
1,647,090 158,387
Euro 724,170 708,480
15,690 Japanese Yen
241,435 237,832
3,603 Hong Kong Dollar
235,924 123,844
112,080 Great Britain Poundsterling
96,656 47,011
49,645 Australian Dollar
30,350 17,114
13,236 Others 20,009
6,375 13,634
Total 2,853,487
Total Tier I and II Capital less investments in subsidiaries Note 51
27,413,947 NOP Ratio On-Balance Sheet
10.41 NOP Ratio Aggregate
2.58
NOP Ratios based on the total capital as of November 30, 2005 unaudited are as follows :
NOP Ratio On-Balance Sheet 10.27
NOP Ratio Aggregate 2.54
The Net Open Position by currency of Bank Mandiri Bank only as of December 31, 2004 is as follows:
Currency Assets
Liabilities Absolute Open Position
ON-BALANCE SHEET United Stated Dolar
45,304,043 45,270,883
33,160 Euro 351,764
592,691 240,927
Singapore Dollar 1,644,486
1,531,252 113,234
Japanese Yen 260,764
253,688 7,076
Hong Kong Dollar 207,031
103,945 103,086
Great Britain Pound Sterling 32,569
37,136 4,567
Australian Dollar 44,520
14,877 29,643
Others 22,959 45,242
22,283 Total
553,976 OFF-BALANCE SHEET
United Stated Dollar 5,423,879
4,823,758 600,121
Euro 319,089 -
319,089 Great Britain Pound Sterling
118,822 100,913
17,909 Singapore Dollar
16,320 99,572
83,252 Japanese Yen
1,411 5,400
3,989 Total
1,024,360 Total Absolute Open Position
912,869
include hedge bonds of Rp2,822,552 Note 7.
