PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
106
33. MANAGEMENT STOCK OPTION PLAN continued
The fair value of the options granted were estimated using the Black-Scholes option-pricing model with the following assumptions:
MSOP – Stage 1 MSOP –Stage 2
Risk free interest rate 8.46
9.50 Expected period of option
5 years 5 years
Expected stock’s volatility 24.53
50 Expected dividend yield
7.63 7.63
Employee turnover rate 1
1
A summary of the Management Stock Option Plan and the movements during the year full amount:
2006 2005 Number of Options
Number of Options Options outstanding at the beginning of period
434,866,421 245,728,913
Options granted during the period -
- Options exercised during the period
55,906,038 17,212,335
Options that can be exercised at the end of the period 378,960,383 228,516,578
The General Shareholders’ Meeting held on May 22, 2006 approved the MSOP – Stage 3 amounting to 309,416,215 share options or 1.55 from fully paid up capital at IPO to purchase new shares B series to
be issued. The General Shareholders’ Meeting also gave authorities to the commissioners to determine implementation and controlling policy for MSOP – Stage 3 program including the option execution and
report them in the next General Shareholders’ Meeting. Until June 30, 2006, the MSOP – Stage 3 has not been implemented.
Share options amounted to Rp171,115 and Rp15,930 as of June 30, 2006 and 2005. MSOP – Stage 1 and MSOP – Stage 2 expense which was recorded as salaries and employee benefits for the six-month
periods ended June 30, 2006 and 2005 was Rp71,207 and Rp3,299, respectively Note 42.
34. INTEREST INCOME
Interest income was derived from the following:
2006 2005
Government Recapitalization Bonds 5,707,072
3,568,471 Loans
5,471,154 4,776,703
Securities 809,981
554,306 Placements with Bank Indonesia and other banks
601,639 274,550
Fees and commissions 294,308
298,039 Others
382,166 83,925
13,266,320 9,555,994
Included in interest income from loans and others is syariah income for the six month period ended June 30, 2006 and 2005 amounting to Rp377,234 and Rp392,445, respectively, with details as follows:
2006 2005
Murabahah income 238,339
289,128 Musyarakah income
87,014 61,276
Others 51,881
42,041 377,234
392,445
,
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Six Months Ended June 30, 2006 Unaudited and 2005 Audited Expressed in millions of Rupiah, unless otherwise stated
107
35. INTEREST EXPENSE
