REVIEW AND BUSINESS CONDITION
CORPORATE BANKING
Year 2009 included management of funds from Government Institutions, which is currently managed by Institutional Banking Directorate
Annual Report PT Bank Mandiri Persero Tbk.
CORPORATE BANKING
Corporate Banking continued to expand the wholesale transaction banking
services to corporate clients and including some of the largest companies
in Indonesia. We also continue to expand the international network with
the opening of the Shanghai branch to serve corporate customers better. In
2011. Corporate banking saw its low cost
funding increase significantly by 49.0 to Rp28.2 trillion, early indications show
this is the result of the development of Wholesale transaction banking initiative.
CONTRIBUTION MARGIN Rp. Trillion
2009 2010
2011
3.9 3.2
3.2
2009 25
50 75
100 125
2010 2011
TOTAL LOANS Rp. Trillion
Fx Rupiah
2009 3
6 9
12 15
2010 2011
LOAN YIELD
Fx Rupiah
2009 0.5
1.5 2.5
3.5 4.5
2010 2011
NET INTEREST INCOME Rp. Trillion
Fx Rupiah
2009 20
40 60
80 100
2010 2011
TOTAL DEPOSITS Rp. Trillion
Fx Rupiah
2009 2
4 6
8 10
2010 2011
COST OF LIABILITIES
Fx Rupiah
2009 2010
2011
FEE INCOME Rp. Billion
631.2 386.8
755.8
2009 100
200 300
400 500
2010 2011
OVERHEAD EXPENSES Rp. Billion
General Administrative Personnel
2009 0.5
1 1.5
2 2.5
2010 2011
NPL
Fx Rupiah
ACHIEVEMENTS IN 2011
Bank Mandiri embarked on the second stage of implementation with the
corporate plan 2010-2014, and the strategy of Integrating the Bank’s
wholesale transaction banking continues to be developed as one strategy of 3
three focus areas of business strategy in the 5 years that constitute the second
phase of Bank Mandiri’s transformation. To support this strategy, the Directorate of
Corporate Banking in 2011 is aggressively optimizing the function and role of the
organization as was established in early 2010 through the corporate transaction
banking sales group CTBS Group. This work unit was formed in order to optimize
the growth potential of the transaction business, the growth of low-cost funds and
an increase in fee based income from the wholesale segment. This work unit also
serves to explore the needs and provide the products, solutions and services
that are customized, sophisticated and completely tailored to our corporate
clients.
The corporate banking directorate along with product development and IT
support teams have developed several solutionsproductsservices to meet the
comprehensive needs of the corporate customer transactions, which are:
• Receivables solutions form host to host collection, aiming to improve the
efficiency of the process of collection and process control over all customer
accounts receivable bills through system integration.
• Payment in the form of corporate solutions payable, aims to improve
the efficiency and effectiveness of the customer payment process using an
integrated management system. This solution allows customers to reduce the
number of employees involved in the payment process.
• Liquidity management in the form of interbranch notional pooling solutions
and dual currency notional pooling, aiming to optimize the management of
liquidity held by the customer.
• Supply chain financing in the form of financing and supplier financing
distributor aims to manage the cycle of a customer’s business operations in
order to create financial stability and a healthy cash flow.
To compensate for market and business development in Asia and Indonesia, which
have an impact on the needs of cash management services and international
trade transactions, the Corporate Banking Directorate has established a strategic
partnership with Bank of America Merrill Lynch in the cash management area.
This collaboration is an effort to improve banking services for customers, especially
those with international business. Through this strategic partnership, Bank
of America Merrill Lynch will provide optimum solutions to a variety of
geographical coverage areas and a reliable infrastructure for Bank Mandiri, which can
be used by customers of Bank Mandiri at the time of business expansion on an
international scale.
To further develop our international business, especially for domestic
companies dealing in international trade, The Corporate Banking Directorate also
continues to manage the overseas offices. This management is directed to increase
synergies and integration between the domestic office head office and branches
and overseas offices. The integration forms a synergistic relationship between
headquarters, domestic branch offices and overseas offices which optimizes the
distribution of foreign transactions for Indonesia-related companies which have
a business or business partners abroad, among others:
• Trade Services Issuing LC, LC advising, negotiating LC, LC confirmation, etc.;
• Trade Financing Bills Discounting, Usance Payable At Sight, Forfeiting and
Trust Receipt. • Ex Debit Authorization nostro
management of HO. • Syndicated Loans and Working Capital
Loan. • Other Income Based Transaction
Fee Remittance, Collection, Paying AgentReimbursing Agent, SBLC, Bank
Guarantee etc..
• Structured Finance according to customer needs tailor-made.
In 2011 the Directorate of Corporate Banking expanded its office network
marked by the inauguration of foreign operations in Shanghai, as branch offices
abroad are ready to service Indonesian companies that have business dealings in
China and vice versa, Chinese companies which have business operations and
investments in Indonesia. Thus, Bank Mandiri has 7 offices abroad 4 of which are
under the coordination of the Directorate of Corporate Banking. Shanghai branch
offers added value as the first Indonesian- flagged bank and the only Indonesian
bank operating in mainland China.
This is a success story that we are proud of since it has not been easy for
Indonesian banks to open branches
REVIEW AND BUSINESS CONDITION
CORPORATE BANKING
Annual Report PT Bank Mandiri Persero Tbk.
abroad. In line with the strategic development of foreign offices of Bank
Mandiri, the Shanghai branch and overseas offices will develop a business
strategy of “Follow The People, Follow The Trade”, which will follow the development
of Bank Mandiri’s Indonesian based corporate customer’s businesses who
operate outside the country. As “The Overall Best Managed Company In
Asia, Banking and Financial Category “from Euromoney Asia’s Poll 2011, Bank
Mandiri will not only serve the Indonesian corporations but also provide services for
overseas counterparts. On December 29, 2011, the Shanghai branch office abroad
signed its first loan agreement.
Corporate Banking continued to optimize business expansion and the growth of
Multi National Company’s MNCs in the spirit of “To Become your trusted domestic
banking partner in Indonesia” with the view that MNC companies conducting
business in Indonesia, despite having a global banking relationship still has
required services within the country that must be addressed.
The value proposition offered by Bank Mandiri is an extensive network that
can service the interests of clients, the ability to provide comprehensive
products and services including financing to employees and the supply chain,
knowledge of key industry sectors and regionalprovincial development in
Indonesia and Bank Mandiri’s name known as the service excellence and good
corporate governance bank in Indonesia.
In 2011, Corporate Banking managed to increase the customer base in the
MNC segments by providing facilities for the equivalent of Rp6 trillion to eight
companies, within a variety of industries, including consumer goods, mining
and agro-based industries. This also included the operational support of MNC
companies which provide financial support to distributors throughout Indonesia,
providing petty cash and card co-branding for marketing personnel, implementation
of MCM, payroll services, including product support and banking services to their
employees.
This provides confidence that Bank Mandiri will be able to continue to
increase the volume of business with MNC’s in the future.
In line with the strategic initiatives in 2011, the Directorate of Corporate
Banking has made improvements to the organizational structure and the
establishment of new business units. Among them is the development of
the function and role of business units for the Syndicated Structured Finance
SSF Group, initially just to manage the business of syndicated loans, and
further developed to handle the growth in customer’s businesses that are engaged
in the oil and gas sector and its value chain, both from the aspect of credit,
funds, transactions, from upstream to downstream, including supporting
services. Development functions and roles are followed by a change in the name
of Syndicated Structured Finance SSF to become the Syndication, Oil and Gas
SOG Group.
Other work units that have optimized their functionality is the funding team unit
which was formed to handle the business potential of non-debtor customers. The
funding team was formed in each group under the coordination of the Directorate
of Corporate Banking, except for the CTBS Group. For the purposes of the Directorate
of Corporate Banking, the funding team aims to improve and optimize the
REVIEW AND BUSINESS CONDITION
CORPORATE BANKING
47.3
Current Account Growth
Annual Report PT Bank Mandiri Persero Tbk.
collection of funds, in particular low-cost funds current account - saving account
- CASA in coordination with the CTBS Group.
The Directorate of Corporate Banking does not only deliver products and services that
fit the needs of customers, the group also proactively develops closer relationships
with customers through the wholesale segment personal strategy approach with
the implementation of national events including: Mandiri CFO Forum that is
packaged in the format of discussions and seminars with present CEOCFO’s
of corporations that have a respected leadership team and strong performance.
The goal is to provide new information that can support customers’ business
through good financial management; Independent Economic Forum “Building
the New ASEAN Tiger” which aims to increase the sensitivity of prospective
business leaders to the challenges to be faced as the global economic map shifts.
This forum is intended for the second generation of entrepreneurs and corporate
Indonesia along with the first generation business owners who remain active in
business activities. Through the Mandiri CFO Forum and Economic Forum, corporate
customers are given the opportunity to gain significant insights and inputs for
business development.
In the midst of efforts to implement the strategic focus on Wholesale Transaction
Banking the Corporate Banking Directorate continually strives to maintain and
improve its position in the corporate segment through maintaining a dominant
loan portfolio, strong funding and fee based income. Throughout 2011 Corporate
Banking increased both in terms of loans and deposits as well as growth in number
of customers. Business volumes loans and funds Corporate Banking grew by
18.8 compared to Rp161 trillion in 2010. Growth was driven by loan growth of
24.5. Total loans increased to Rp106.5 trillion, which is obtained not only through
increased use of existing credit facilities and customers, but also through the
success of acquiring 102 new and well respected borrowers during 2011.
REVIEW AND BUSINESS CONDITION
CORPORATE BANKING
106.2
Tn
Total Corporate Lending
Annual Report PT Bank Mandiri Persero Tbk.
In 2011-2012 the Commercial and Business Banking Directorate CBB
implemented a capability building year in terms of the distribution network
expansion, organizational development, readiness of competent human resources
and wholesale infrastructure support service transactions, preparing to
bring the Directorate of Commercial Business Banking complete solutions for
Commercial Banking customers along with quick easy services to Business
Banking customers. In 2011, the business volume of the CBB
Directorate reached Rp158.6 trillion increasing 24.07 from 2010, and the
acquisition of Fee Based Income reached Rp1.3 trillion, representing an increase of
30.46 from 2010
COMMERCIAL BUSINESS BANKING
CONTRIBUTION MARGIN Rp. Trillion
2009 2010
2011
4.45 4.72
