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
125
52. NET OPEN POSITION continued
OFF-BALANCE SHEET continued Total Tier I and II Capital
less investments in subsidiaries Note 51 27,536,845
NOP Ratio On-Balance Sheet 2.01
NOP Ratio Off-Balance Sheet 3.72
NOP ratio Aggregate 3.32
53. NON-PERFORMING EARNING ASSETS RATIO, TOTAL ALLOWANCE FOR POSSIBLE LOSSES ON EARNING ASSETS RATIO AND SMALL-SCALE LOANS RATIO, AND LEGAL LENDING LIMIT
Non-performing earning assets to total earning assets Bank Mandiri only, was 12.32 and 3.65 as of December 31, 2005 and 2004, respectively. The Non-Performing Loan NPL ratio Bank Mandiri only
before being deducted by the allowance for possible losses gross basis was 26.66 and 7.42 as of December 31, 2005 and 2004, respectively Note 11A.c.
The total allowance for possible losses on earning assets provided by Bank Mandiri compared to the minimum allowance for possible losses on earning assets under the guidelines prescribed by Bank
Indonesia were 102.94 and 132.84 as of December 31, 2005 and 2004, respectively.
The small-scale loans to total loans ratio was 4.85 and 4.42 as of December 31, 2005 and 2004, respectively.
Legal Lending Limit BMPK as of December 31, 2005 and 2004 did not exceed the BMPK regulation for related parties and third parties. BMPK is calculated in accordance with Bank Indonesia Regulation - PBI
No.73PBI2005 dated January 20, 2005. 54. CUSTODIAL AND TRUST OPERATIONS
Custodial Operations Bank Mandiri started rendering custodial services in 1995. The operating license for custodial services
was renewed and re-issued based on Bapepam Decision Letter No. KEP.01PMKstd1999 dated October 4, 1999. Bank Mandiri’s Custodial, which is part of the Securities Services Department SSD of Bank
Mandiri, provides a full range of custodial services such as: a. Settlement and handling services for script and scriptless trading transactions.
b. Safekeeping and administration of securities and other valuable assets. c. Corporate action services related to the rights on the securities.
d. Proxy services for its customers’ shareholders’ meetings and obligation holders’ meetings. In order to fulfill the investors needs in investing in various securities instruments, Bank Mandiri’s
Custodial facilitates by acting as:
a. General custodial which provides services for the investors in investing in the Indonesia capital market; b. Local custodial for American Depository Receipts ADRs and Global Depository Receipts GDR
which is needed by the investors in converting the companies’ shares listed in local and overseas stock exchange dual listing;
c. Sub-registry services for settlement of transactions of Indonesian recapitalization bonds “Government Recapitalization Bonds” as well as SBIs;
d. As direct participant of Euroclear;
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
126
54. CUSTODIAL AND TRUST OPERATIONS continued
Custodial Operations continued e. Custodial for mutual fund managed by investment manager.
Bank Mandiri has 329 and 304 custodial customers as of December 31, 2005 and 2004, respectively. The customers are primarily pension funds, insurance companies, banks, securities companies, mutual funds
and other private companies with a total portfolio value as of December 31, 2005 of Rp 60,690,045 and US260,618,596.36 full amount.
Bank Mandiri carries insurance on custodial services against safekeeping and transit loss under blanket policies amounting to approximately Rp251,000. Management is of the opinion that the insurance
coverage is adequate to cover possible losses from safekeeping and transit risks.
Trust Operations Bank Mandiri had been rendering trustee services since 1983 legacy banks: Bank Exim, BDN, BBD and
Bapindo. The operating license for trustee services was renewed and re-registered with Bapepam as stipulated in Decision Letter No. 17STTD-WAPM1999 dated October 27, 1999. The Trustee Services
Business TSB, which is part of the Securities Services Department SSD of Bank Mandiri, provides a full range of the following services:
a. Preparing documentation support to bond issuers in complying with required documents for issuance. b. Signing trustee agreements and other relevant documents together with bond issuers and other
related institutions. c. Monitoring performance of issuers and compliance against required documentation as stipulated in
trustee agreements on behalf of bondholders. d. Facilitating bondholder meetings and following up and executing the results of bondholder meetings,
as required. e. Providing information on issuers’ performance as requested by Bapepam or bondholders.
f. Managing the sinking fund and other collateral as required by a bond’s issuance and terms and conditions.
g. Paying agent for bonds issue, shares, MTN and others. h. Escrow agent and security agent.
Bank Mandiri Wali Amanat has 31 and 34 trustee customers as of December 31, 2005 and 2004, respectively. The total value of bonds issued amounted to Rp9,381,567 and US100,000,000 full
amount, while the the escrow account amounted to Rp374,582 on behalf of six customers.
Both Bank Mandiri Trust and Custodial Services have received Quality Certification ISO 9001 in 2000.
55. CHANNELING LOANS
Channeling loans based on sources of funds and economic sectors are as follows:
2005 2004
Government: Electricity, gas and water
9,295,177 9,414,882
Transportation and communications 4,973,541
5,335,880 Agriculture
1,492,249 1,737,072
Manufacturing 796,800
839,980 Mining
65,995 99,738
Construction 15,558
17,015 Others
110,375 122,847
16,749,695 17,567,414
