2017Q2 Analysts Meeting
PT Bank Mandiri (Persero) Tbk
1H 2017
Results Presentation
(2)
Sha
re
Pri
ce
Performa
nce
and
In
form
ati
on
∆
fr
o
:
IPO
D
e
c 31,
2016
BMRI
1,820.18%
10.15%
JCI
1,011.08%
10.06%
-100
%
100
%
300
%
500
%
700
%
900
%
1100
%
1300
%
1500
%
1700
%
1900
%
Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17
BMRI
(3)
2
Table of Contents
Results Overview Page #
Corporate Strategy 3 –4
I do esia s E o o i Co ditio 5
Key Indicators + Financial Highlights 6 –7
SBU Performance Highlights 8
Ba k s Pe fo a e 9 –11
Loan Performance 12 –13
ROE, Forex Loan & NIM 14 –16
Fee-Based & CIR 17 –18
Wholesale Business 19 –21
Retail Business 22 –28
Non-Performing Loan & Restructured Loan 29 –32
Subsidiaries 33 –34
Corporate Guidance 35Additional Information
Operating Performance Highlights Supporting Materials
(4)
Corporate Plan
– Ba k Ma di i s
2020 Initiatives
Accelerate in Growth
Segments
Integrate The Group
Deepen Client
Relationship
I do esia s
Top Financial Institution:
Grow above the market, portfolio quality focused, employer of choicein Indonesia
• Become the first choice in consumer banking, especially in the middle-income class
• Focus on micro fixed income earners
and asset-backed consumer lending
• Selectively grow SME segment and productive micro by focusing on asset quality
Drive su sidiaries perfor a e by
increasing synergies within the Mandiri Group.
Increase distribution network productivity
Strengthen presence in ASEAN countries
• Strengthen Ba k Ma di i s positio as the No. 1 Corporate Bank
• Grow in-line with the market in the Commercial Bankingsegment
• Offeringsector specific solutionand
integrated product packages.
Current Achievements (1H 2017)
Consumer Loans Rp91.3Tn (+20.0% YoY)
Micro Loans Rp54.3Tn (+17.9% YoY)
SME Loans Rp59.0Tn (-1.7% YoY)
Current Achievements (1H 2017)
Current Achievements (1H 2017)
Corporate Loans Rp241.4Tn (+19.0% YoY)
Wholesale Fee Income Rp4.2Tn (28.7% of wholesale income)
Total income from subsidiaries Rp1,067Bn (11.3% of EAT)
Average CASA per branch grew by 5.5%
Obtained Singapore Capital Market License
(5)
How We Plan To Get There
Focus on Core Business
▪
Grow corporate lending above the market growth rate and
deepen relationships with existing clients
▪
Increase fee based income & wholesale current accounts
Expanding into
Underpenerated Low-Risk
Segments
▪
Accelerate consumer lending growth: mortgages, auto loan
and salary based loans
▪
Push retail CASA growth through Bank@Work
▪
Defend market share in SME
Strengthen The Foundation
▪
Lower cost to income ratio through digitalization and
productivity enhancements
▪
Reduce NPL ratio by improving the loan underwriting process
▪
Increase utilization and sophistication of data analytics to
enhance insights and cross-selling.
Strategic Initiatives
Description
(6)
5
Stable Macroeconomic Indicators
Source : CEIC, Bloomberg
Inflation and Reference Rate
Current account balance in 2Q17 was
quite stable
1Q17 GDP Growth : Sign of Improvement
4.75 2 3 4 5 6 7 8 9 10 Ju n -10 Ju n -11 Ju n -12 Ju n -13 Ju n -14 Ju n -15 Ju n -16 Ju n -17
Headline inflation (% YoY) Core inflation (% YoY) BI Rate
7 Days RR
4.37 6.50 3.13 (10) (5) -5 10 15 (15) (10) (5) -5 10 15 20 1 Q 11 2 Q 11 3 Q 11 4 Q 11 1 Q 12 2 Q 12 3 Q 12 4 Q 12 1 Q 13 2 Q 13 3 Q 13 4 Q 13 1 Q 14 2 Q 14 3 Q 14 4 Q 14 1 Q 15 2 Q 15 3 Q 15 4 Q 15 1 Q 16 2 Q 16 3 Q 16 4 Q 16 1 Q 17
Capital and Financial Account
Current Account (CA)
BoP 4.5 5 5.5 6 6.5 7 1 Q 11 2 Q 11 3 Q 11 4 Q 11 1 Q 12 2 Q 12 3 Q 12 4 Q 12 1 Q 13 2 Q 13 3 Q 13 4 Q 13 1 Q 14 2 Q 14 3 Q 14 4 Q 14 1 Q 15 2 Q 15 3 Q 15 4 Q 15 1 Q 16 2 Q 16 3 Q 16 4 Q 16 1 Q 17 5.57 5.01
(7)
6
K
e
y
Me
tri
cs
Ar
e
Turni
ng
P
osi
ti
ve
22.10% 24.40% 22.00% 22.55% 22.23% 20.95% 18.33% 9.66% 10.59% 12.20% 2009 2010 2011 2012 2013 2014 2015 2016 1H16 1H17R
e
turn
on E
qu
ity
(%
)
Tot
al
CAS
A
(Rp
Bn
)
Non P
erf
ormi
ng
Loan
(%
)
186,492 201,958 256,395 316,127 359,957 380,512 443,874 489,380 439,399 490,225 2009 2010 2011 2012 2013 2014 2015 2016 1H16 1H17 2.79% 2.42% 2.21% 1.87% 1.90% 2.15% 2.60% 4.00% 3.86% 3.82% 2009 2010 2011 2012 2013 2014 2015 2016 1H16 1H17 7,155 9,218 12,246 15,504 18,204 19,872 20,335 13,807 7,080 9,463 2009 2010 2011 2012 2013 2014 2015 2016 1H16 1H17E
arni
ng
Aft
er T
a
x (
Rp
Bn
)
12,430 16,693 19,234 23,018 28,408 31,507 38,381 43,258 19,349 21,811 2009 2010 2011 2012 2013 2014 2015 2016 1H16 1H17P
P
OP
(
Rp
Bn
)
Ne
t
In
ter
es
t Mar
gi
n
(%
)
5.04% 5.28% 5.11% 5.46% 5.74% 5.97% 6.08% 6.44% 6.23% 5.88% 2009 2010 2011 2012 2013 2014 2015 2016 1H16 1H17 Y oY 1 2 .7 % Y o Y 33 .7 % Y o Y 1 1 .6 % Y o Y (5 .6 %) Y o Y 15 .2 % Y o Y (1 .1 %)(8)
1H 2016
1H 2017
%
Loans
Rp 610.9Tn
Rp 682.0Tn
11.65%
Gross NPL Ratio
Net NPL Ratio
3.86%
1.53%
3.82%
1.44%
(1.05)%
(6.22)%
Low Cost Funds Ratio
[Low Cost Funds (Rp)]
63.6%
Rp 439.4Tn
64.4%
Rp 490.2Tn
1.38%
11.57%
NIM
6.23%
5.88%
(5.63)%
Efficiency Ratio
45.21%
43.23%
4.39%
PPOP
Rp 19,349Bn
Rp 21,811Bn
12.72%
Earnings After Tax
Rp 7,080Bn
Rp 9,463Bn
33.66%
7
Key Financial Highlights
(9)
8
Balanced Earnings Between Wholesale and Retail
612
1,293 246
592 964
574
1,276 248
578
1,346
Micro & Business Banking
Consumer Commercial Corporate Treasury & Markets
2Q '17 2Q '16
Net Interest Income Analysis 2Q 2017 (QTD)
(Rp Bn)
Fee Based Income 2Q 2017 (QTD)
(Rp Bn)
1
,049 979
1
,209 1
,049
2Q'17 2Q'16
993 913
521
374
2Q'17 2Q'16
1
,009 884
3
,211 3
,116
2Q'17 2Q'16
1
,618 1,726
1
,944 1,728
2Q'17 2Q'16
2,258 2,028
1,514 1,287
4,220 4,000
3,612 3,454
Treasury & Markets
Corporate Banking
Commercial Banking
Consumer Banking
Micro & Business
Banking
1
,100 1,022
252
102
2Q'17 2Q'16
1,352 1,124
(10)
Deposits by Product
–
Consolidated
(Rp Tn)
Loans by SBU + Subsidiaries
(Rp Tn)
97 .1 121 .9 151 .8 186 .9 214 .7 227 .7 207 .3 211 .0 218 .1 243 .7 224 .1 247 .9 247 .2 272 .0 259 .0 277 .9 9.7 11.6 12.0 15.320.7 24.723.3 25.4 29.4
28.0 24.7 25.7 27.0 30.3 28.5 26.5 53 .9 46 .2 67 .3 77 .9 73 .4 78 .9 83 .4 91 .7 90 .7 101 .2 95 .4 100 .2 101 .2 124 .4 117 .6 123 .2 18.822.2 25.3 36.1 51.1 49.1 58.1 75.8 77.6 70.9 62.4 65.6 61.8 62.7 60.5 62.7 108 .4 147 .8 148 .1 150 .7 176 .2 222 .3 226 .2 220 .5 212 .1 206 .3 224 .4 227 .8 229 .6 242 .1 238 .5 245 .6 15.1 12.5 17.8 16.1 20.1
33.7 30.530.5 26.6
26.2 24.2 24.2 23.6 31.1 26.9 25.0 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 480 500 520 540 560 580 600 620 640 660 680 700 720 740 760 780 800 4 Q' 09 4 Q' 10 4 Q' 11 4 Q' 12 4 Q' 13 4 Q' 14 1 Q' 15 2 Q' 15 3 Q' 15 4 Q' 15 1 Q' 16 2 Q' 16 3 Q' 16 4 Q' 16 1 Q' 17 2 Q' 17
FX Time Rp Time FX Demand Rp Demand FX Savings Rp Savings
69 .8 93 .1 110 .9 130 .2 167 .9 175 .8 174 .5 180 .6 185 .0 198 .8 185 .2 205 .0 211 .4 230 .3 234 .7 242 .9 4.5 1.4 1.4 1.8
2.0 1.3 0.8 1.0 0.9 1.4
1.3
1.2 1.1
1.1 0.8 0.8
49 .1 63 .8 80 .7 102 .7 116 .9 142 .8 145 .1 148 .9 149 .4 160 .6 153 .7 158 .5 162 .6 165 .2 152 .7 157 .3 23.6 30.7 39.0 47.7 56.6
64.7 65.767.7 69.5 72.3
73.4
76.1 78.9
84.8 87.291.3
17.1 22.7
30.2 38.4
46.5
56.0 55.3 57.9 57.9 60.5 56.1 60.0 59.8 60.8 57.5 59.0 5.4 7.3 11.8 19.0 27.0
34.6 37.2 39.7 40.0 42.5 44.2 46.0 46.7 50.6 52.2 54.3 18.8 27.2 40.5 48.9 55.5 54.7 54.3 57.0 57.9 59.4 60.9 63.9
64.8 69.3 71.2 76.4 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 480 500 520 540 560 580 600 620 640 660 680 700 4 Q' 09 4 Q' 10 4 Q' 11 4 Q' 12 4 Q' 13 4 Q' 14 1 Q' 15 2 Q' 15 3 Q' 15 4 Q' 15 1 Q' 16 2 Q' 16 3 Q' 16 4 Q' 16 1 Q' 17 2 Q' 17 Subsidiaries Micro Small Cons Comm Int'l Corp + SAM
Maintaining Momentum for Growth
Y-o-Y 3.3% 7.8% (4.5%) 22.9% 12.1% Y-o-Y (1.7%) (0.8%) 18.5% (34.1%) 2.9% 11.6% 682.0 Tn Total Total 691.4 Tn
760.9 Tn 10.1%
19.5%
9
610.9 Tn
20.0% 17.9%
(11)
10
Strong and Liquid Balance Sheet
Assets
1H 2017
1H 2016
Liabilities
1H 2017
1H 2016
Cash
33,494
23,550 Current Account
184,018
165,815
Current Acc w/ BI & Other Banks
75,636
59,773 Savings
306,207
273,584
Placement w/ BI & Other Banks
58,816
66,874 Time Deposits
270,636
251,959
Advances (Other)
32,624
27,718
Marketable Securities
59,504
49,380
Total Deposits
760,861
691,359
Government Bonds
98,343
99,093
Loans (Gross)
682,043
610,887 Securities Issued
15,112
3,353
Provisions of Loans
(34,962)
(26,576) Deposits from other banks
11,988
15,940
Net Loans
647,082
584,311 Subordinated Debt
195
3,712
Reverse Repo
310
607 Borrowings
35,910
34,019
Other Provisions
(1,791)
(2,324) Other Int. Bearing Liabilities
30,537
21,997
Deferred Tax Assets
5,115
4,060 Non Int. Bearing Liabilities
55,362
53,976
Other Assets
58,278
58,401 Equity incl. Minority Interest
157,444
147,089
(12)
11
Lower Credit Cost and Discipline Cost Management
Summary P&L (Rp Bn) 2Q17 1H17
2Q17 2Q16 Y-o-Y 1Q17 Q-o-Q 1H17 1H16 Y-o-Y
Interest Income 19,682 18,060 9.0% 19,443 1.2% 39,125 36,368 7.6%
Interest Expense 6,811 6,148 10.8% 6,627 2.8% 13,438 12,124 10.8%
Net Interest Income 12,871 11,912 8.0% 12,816 0.4% 25,687 24,244 6.0%
Net Premium Income 677 839 -19.3% 614 10.4% 1,291 1,544 -16.4%
Net Interest Income & Premium Income 13,548 12,751 6.2% 13,430 0.9% 26,977 25,788 4.6%
Other Non Interest Income
* Other Fees and Commissions 2,910 2,952 -1.4% 2,996 -2.8% 5,906 5,482 7.7%
* Foreign Exchange Gains - Net 688 600 14.8% 653 5.4% 1,341 1,016 32.0%
* Gain fr. sale & Incr. in Val & Sale of Bonds 456 206 121.6% 262 74.2% 718 409 75.6%
* Others 1,583 1,231 28.6% 1,345 17.6% 2,928 2,283 28.3%
Total Non Interest Income 5,637 4,988 13.0% 5,256 7.3% 10,894 9,191 18.5%
Total Operating Income 19,185 17,739 8.2% 18,686 2.7% 37,871 34,979 8.3%
Provisions, Net (3,929) (5,292) -25.8% (5,401) -27.3% (9,330) (9,888) -5.6%
Personnel Expenses (3,413) (3,488) -2.2% (3,498) -2.4% (6,910) (6,894) 0.2%
G&A Expenses (3,825) (3,640) 5.1% (3,401) 12.5% (7,226) (6,945) 4.0%
Other Expenses (958) (929) 3.0% (965) -0.8% (1,923) (1,791) 7.3%
Total Expense (8,195) (8,058) 1.7% (7,864) 4.2% (16,059) (15,630) 2.7%
Profit from Operations 7,061 4,390 60.9% 5,421 30.3% 12,482 9,461 31.9%
Non Operating Income (24) (3) 667.3% (24) -1.0% (47) (8) 498.4%
Net Income Before Tax 7,038 4,387 60.4% 5,397 30.4% 12,435 9,453 31.5%
(13)
12
LDR Increased to 89.4%, Bank Only Loan Growth of 10.7%
118 .6 125 .2 129 .3 131 .7 129 .9 151 .9 153 .5 169 .7 166 .7 166 .3 176 .8 177 .0 175 .1 181 .4 185 .8 200 .1 186 .4 206 .2 212 .4 231 .3 235 .4 243 .7 82
.9 90.1 93.6 103
.0 102 .3 104 .4 118 .2 117 .1 116 .5 123 .9 127 .9 142 .9 145 .2 149 .1 149 .5 160 .7 153 .7 158 .6 162 .6 165 .2 152 .7 157 .3 30 .9 33 .2 35 .1 38 .5 38 .5 42
.5 44.1 46
.5
46
.3 49.0 52
.0 56.1 55.3 57
.9 57 .9 60 .5 56 .1 60 .0 59 .8 60 .8 57
.5 59.0
13.1 15.116.8
19.0 20.7 23.9
24.927.0 28.2 31.0 32 .7 34 .5 37 .2 39 .7 40 .0 42 .5 44 .2 46
.0 46.7
50 .6 52 .2 54 .3 40 .7 43 .3 44.5 47
.7
49
.3 52 .4 55.2
56 .6 57 .4 60 .3 62 .4 64 .7 65
.7 67.7 69 .5 72
.3
73
.4 76 .1 78.9
84 .8 87 .2 91 .3 1 Q' 12 2 Q' 12 3 Q' 12 4 Q' 12 1 Q' 13 2 Q' 13 3 Q' 13 4 Q' 13 1 Q' 14 2 Q' 14 3 Q' 14 4 Q' 14 1 Q' 15 2 Q' 15 3 Q' 15 4 Q' 15 1 Q' 16 2 Q' 16 3 Q' 16 4 Q' 16 1 Q' 17 2 Q' 17
Corporate Commercial Small Micro Consumer
Quarterly Loan Segment Details
(Bank Only)
Y-o-Y 20.0% 17.9% -1.7% -0.8% 18.2% 10.7% Total 15.1% 9.0% 9.7% 26.0% 40.2% Break downAs of June 2017; Non-consolidated numbers
327 .2 350 .4 365 .2 388 .8 391 .6 428 .7 450 .8 472 .4 470 .4 485 .8 506 .5 530 .0 532 .8 552 .8 560 .6 595 .5 574 .7 610 .9 625 .1 662 .0 656 .2 682 .0 80.7% 83.4% 84.4% 80.1% 83.5% 85.0% 87.3% 84.5% 88.0% 87.0% 85.3% 82.9% 84.4% 84.1% 87.7% 87.4% 88.1% 90.2% 86.5% 89.5% 89.4% 1 Q' 12 2 Q' 12 3 Q' 12 4 Q' 12 1 Q' 13 2 Q' 13 3 Q' 13 4 Q' 13 1 Q' 14 2 Q' 14 3 Q' 14 4 Q' 14 1 Q' 15 2 Q' 15 3 Q' 15 4 Q' 15 1 Q' 16 2 Q' 16 3 Q' 16 4 Q' 16 1 Q' 17 2 Q' 17
Loans (Rp Tn) LDR (%)
4.1% 7.1% 4.2% 6.5% 0.7% 9.5% 5.1% 4.8% -0.4% 3.3% 4.2% 4.6%
0.5%3.7% 1.4% 6.2% 0.0% 6.3% 2.3% 5.9% -0.9% 3.9% 30.0% 26.6% 22.8% 23.7% 19.7%22.3% 23.4% 21.5% 20.1% 13.3% 12.4% 12.2% 13.3% 13.8% 10.7% 12.4% 7.9% 10.5%11.5% 11.2% 14.2% 11.6% 1 Q' 12 2 Q' 12 3 Q' 12 4 Q' 12 1 Q' 13 2 Q' 13 3 Q' 13 4 Q' 13 1 Q' 14 2 Q' 14 3 Q' 14 4 Q' 14 1 Q' 15 2 Q' 15 3 Q' 15 4 Q' 15 1 Q' 16 2 Q' 16 3 Q' 16 4 Q' 16 1 Q' 17 2 Q' 17
QoQ Growth (%) YoY Growth (%)
Quarterly Loan Data
(14)
13
Rp 208.53 Tn in Loans Disbursed in 2Q 2017
585.05
208.53
143.42
34.64 7.54
0.18
2.55
605.62
1Q'17 Disburs. Install. Payment Pay-off FX Impact
Write-Offs
2Q '17
Loan Movement–
2Q 2017 Bank-Only
Rp Tn
Loan Disbursement by Segment –
2Q 2017 Bank-Only
Rp Tn
163.24
19.43
8.89 9.15
7.83
208.53
(15)
14
Post Asset Revaluation CAR 21.5%; ROE 12.2%
115
.9
112
.2
134
.0
172
.9
195
.8
242
.4
352
.5
400
.2
491
.3
514
.9
577
.3
643
.4
662
.7
27.4 28.4 28.3 27.2 30.5 35.7 53.3 62.0 73.9 85.7 107.4 137.4 142.8
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2Q
17
RWA (Rp Tn) Total Capital (Rp Tn)
Rp Bn
Bank Only - Capital & RWA Movement
Profit After Tax & ROE
• CAR inclusive of Credit and Market Risk started in December 2004
• CAR inclusive of Credit, Market and Operational Risk started in January 2010
1.1Tn from GIAA Recovery
23.2% 24.6% 20.8%
15.7%15.4% 13.4%
15.3% 15.5%
14.9%
16.6%18.6% 21.4%
21.1%21.5%
CAR
519 1,168 1,549 1,744 519
2,003 1,027
1,390 4,303
4,925 2,681
3,817 4,079
1,099
97 305
1,113 1,221 1,526 2,031
2,543 3,744 3,991
4,660 4,786
3,263 5,384
967 1,017
1,528
1,408 610
2,352 1,040
1,345 4,509
4,869 4,658
4,933
-623 1,234
1,166 1,390
2,536 2,833
3,073 4,385
5,401 5,418
5,753
1,794
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Q4 PAT Q3 PAT Q2 PAT Q1 PAT
2.5% 10.0%
15.8% 18.1%
22.1%
24.2% 22.0%
22.6% 22.2%
21.0% 18.3%
9.7% 12.2%
(16)
15
Q2 Bank-Only NIM of 5.6%
5 .33 % 5 .84 % 5 .44 % 5 .19 % 5 .54 % 5 .84 % 5 .67 % 5 .50 % 5 .34 % 5 .71 % 6 .08 % 5 .94 % 5 .90 % 5 .84 % 5 .92 % 5 .41 % 5 .79 % 5 .74 % 6 .74 % 6 .28 % 6 .00 % 7 .06 % 6 .03 % 5 .69 % 5 .58 % 4 Q '09 4 Q '10 4 Q '11 1 Q' 12 2 Q' 12 3 Q' 12 4 Q' 12 1 Q' 13 2 Q' 13 3 Q' 13 4 Q' 13 1 Q' 14 2 Q' 14 3 Q' 14 4 Q' 14 * 1 Q' 15 2 Q' 15 3 Q' 15 4 Q' 15 ** 1 Q' 16 2 Q' 16 3 Q' 16 ** 4 Q' 16 1 Q' 17 2 Q' 17 NIM 9.4 9.6 8.7 8.2 8.1 8.4
8.2 8.1 7.8
8.3 9.0 9.1 9.2 9.6 9.6
9.1 9.29.2 9.8
9.3 9.110.09.0
8.6 8.6 4.3
3.8 3.4
3.2
2.8 2.7 2.7 2.8 2.6 2.83.1 3.3
3.53.9 3.8 3.9 3.6 3.7 3.3 3.2
3.3
3.1 3.0 2.9 2.9
Yield on Assets (%) Cost of Funds (%)
6.4 7.2 5.3 4.9 5.1 4.4 4.5 4.5 6.6
4.2 4.3 4.4
6.4 4.6 4.6 13.3 3.8 4.3 4.2 1.5 0.7
0.6 0.7 0.7 0.8 0.7 0.7 0.9 1.1 0.8 0.7 0.7 1.0 1.0 1.2 1.3 1.31.1
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 4 Q '09 4 Q' 10 4 Q' 11 4 Q' 12 4 Q' 13 1 Q' 14 2 Q' 14 3 Q' 14 4 Q' 14 1 Q' 15 2 Q' 15 3 Q' 15 4 Q' 15 1 Q' 16 2 Q' 16 3 Q' 16 4 Q' 16 1 Q' 17 2 Q' 17
12.6 12.5 12.5
11.311.8 11.8
12.0 12.4 12.2
12.1
12.2 12.2
12.1 11.9 11.3
11.3 11.3 10.8
10.6
6.7 6.5
4.1 4.0
5.3 5.4 5.9 5.7 6.0
6.4 6.4 6.7 6.9 7.0 6.6 6.7 6.8
6.6 6.9
4.7 4.2 3.9
3.0 3.7 3.9
4.1 4.6 4.4 4.5 4.3 4.3
3.8 3.7
3.6
3.5 3.4 3.3 3.2
0.0 2.0 4.0 6.0 8.0 10.0 12.0
Avg Loan Yield Avg Bond Yield Avg Deposit Cost
* Starting on 4Q2014, we back out the LPS premium from the interest expense
(17)
16
Greater Detail On Fee-Based Income
Non-Loan Related Fees & Commissions
2Q 2017
1Q 2017
2Q 2016
Y-o-Y
Q-o-Q
Δ%
Δ%
Administration Fees
975
857
968
0.7%
13.8%
Opening L/C, BG & Cap Market (custodian & trustee)
309
322
317
(2.5%)
(3.9%)
Subsidiaries
364
410
350
4.0%
(11.3%)
Transfer, Retail Transaction
617
612
584
5.7%
0.8%
Credit Cards
519
470
513
1.3%
10.4%
Mutual Fund, ORI & Bancassurance
104
107
100
3.8%
(2.8%)
Syndications
64
272
185
(65.6%)
(76.6%)
Payroll Package
18
18
21
(14.4%)
0.8%
Others
(59)
(72)
(86)
(30.9%)
(18.0%)
Total
2,910
2,996
2,952
(1.4%)
(2.8%)
Foreign Exchange Gains
688
653
600
14.8%
5.4%
Gains Fr Sale & Incr. in Value of Sec. & Gov. Bonds
456
262
206
121.6%
74.2%
Cash Recoveries
870
667
620
40.2%
30.5%
Other Income
713
679
611
16.8%
5.1%
Total Fee Based Income (As Reported)
5,637
5,256
4,988
13.0%
7.3%
(18)
17
2Q 17 Cost to Income Ratio of 43.8%
1
,524 1,510 1,883 2,107 1,614 2,004 ,071 2 2,565 2,034 2,322 2,375 3,167 2,309 2,693 2,958 3,488 2,574 3,173 3,322 ,730 3 3,305 3,640 3,497 3,517 3,401 3,825
1
,547 1,631
1 ,671 1 ,903 1 ,865 1
,939 1,869
2
,372
2
,042
2
,336 2,679
2 ,374 2 ,626 2 ,662 2 ,752 2 ,807 2 ,920 3 ,109 2 ,903 3 ,444 3 ,406 3
,488 3 ,290 3,435 3
,498 3 ,413 1 Q' 11 2 Q' 11 3 Q' 11 4 Q' 11 1 Q' 12 2 Q' 12 3 Q' 12 4 Q' 12 1 Q' 13 2 Q' 13 3 Q' 13 4 Q' 13 1 Q' 14 2 Q' 14 3 Q' 14 4 Q' 14 1 Q' 15 2 Q' 15 3 Q' 15 4 Q' 15 1 Q' 16 2 Q' 16 3 Q' 16 4 Q' 16 1 Q' 17 2 Q' 17
G&A Expenses Personnel Expenses
Breakdown of 2Q 2017 Operating Expenses
Quarterly Consolidated Operating Expenses & CIR
(Rp Bn) (Rp Bn)
32.4% 37.3% 39.0% 41.6% 44.0%43.2% 42.7% 51.3% 41.1% 43.1% 42.5% 48.4% 41.8% 43.2% 46.6% 44.4% 44.4% 45.2% 40.1% 42.7% 44.5% 46.0% 38.5% 41.3% 42.7% 43.8% CIR (%)
Q2 2017 Q1 2017 Q2 2016 Growth QoQ YoY Personnel Expenses
Base Salary 947 934 880 1.4% 7.6%
Other Allowances 1,605 1,618 1,673 (0.8%) (4.1%)
Post Empl. Benefits 119 83 105 42.6% 13.6%
Training 70 60 134 15.8% (48.1%)
Subsidiaries 672 802 696 (16.3%) (3.4%)
Total Personnel Expenses 3,413 3,498 3,488 (2.4%) (2.2%) G&A Expenses
IT & telecoms 605 585 522 3.4% 15.8%
Occupancy Related 763 663 781 15.1% (2.3%)
Promo & Sponsor 231 235 273 (1.7%) (15.3%)
Transport & Travel 188 152 203 23.9% (7.5%)
Goods, Prof. Svcs. & Oth. 554 453 460 22.1% 20.4%
Employee Related 627 605 603 3.6% 3.9%
Subsidiaries 858 709 798 21.1% 7.5%
Total G&A Expenses 3,825 3,401 3,640 12.5% 5.1%
Other Expenses 958 965 929 (0.8%) 3.0%
(19)
38 .60 41 .87 44 .44 40 .35 41 .88 45 .47 45 .73 49 .62 48 .17 53 .29 59 .79 67 .75 62 .22 62 .95 72 .24 75 .38 73 .52 76 .90 78 .52 87 .79 83 .85 86 .55 77 .72 87 .85 89 .14 90 .77 82.9% 91.5% 89.0% 75.8% 76.0% 76.2% 75.4% 76.4% 68.0% 65.1% 64.3% 69.0% 72.0% 71.3% 74.2% 73.2% 66.8% 61.1% 61.0% 73.1% 80.3% 79.2% 72.6% 74.3% 80.8% 84.7% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% M ar 11 Jun e 11 S e p 11 D e c 11 M ar 12 Jun 12 S e p 12 D e c 12 M ar 13 Jun 13 S e p 13 D e c 13 M ar 14 Jun e 14 S e p 14 D e c 14 M ar 15 Jun 15 S e p 15 D e c 15 M ar 16 Jun 16 S e p 16 D e c 16 M ar 17 Jun 17 20 30 40 50 60 70 80 90 100
Loan FX
LFR FX
Prudent Management of FX Balance Sheet
USD Bn
Rp Tn
Breakdown of FX lending (Bank-Only)
2
Q
17 (Total USD 6.81 Bn)
0.03 0.04 0.14 0.16 0.32 0.46 0.53 0.76 0.80 1.27 2.31
Oth
Constr
Utilities
Bus Serv
Trans
Agri
Trading
Soc Serv
Mining
Oil & Gas
Mfg
% (YoY)
23% 10% 5% 280% -27% -28% 3% 1% 327% -54% -95%FX Loans & LDR (Bank-Only)
(20)
19
Top 10 Industries in Corporate Lending Expansion
2Q 17
–
2Q 16 (Total Rp37.52 Tn)
Rp Bn
2,014 2,276 2,396 3,163 3,272 4,585 4,808 5,590 5,613 7,881
Trad-Ret Plantations Roads & Bridge Mfg-NonM Mining-Metal Ore Bus Serv Mfg-Metal Mfg-F&B Mfg-Chem Electricity
%
53%
40%
23%
80%
35%
61%
98%
32%
7%
40%
Rp Bn
Top 10 Industries in Commercial Lending Contraction
2Q 17
–
2Q 16 (Total
–
Rp1.29 Tn)
-299 -355 -382 -566 -607 -714 -990 -1,573 -2,782 -2,977
Mfg-RawM Mfg-Text Health Constr Mining-Coal Gas Mfg-P&P Bus Serv 4 wheels-vehicles Trad-Distr
%
-15%
-68%
-16%
-20%
-90%
-13%
-10%
-35%
-5%
-3%
(21)
20
Whol
es
al
e
Trans
acti
ons
Dri
vi
ng
CA
SA
745 2,414 4,066 6,153 7,784 10,943 11,899 12,932 13,629 13,873 14,105 14,397 14,676 15,101 15,565 16,200 16,853 17,592 18,531 19,451 2006 2007 2008 2009 2010 2011 2012 2013 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17Ca
sh
Ma
na
g
em
en
t
Use
rs
248 677 1,178 2,201 2,657 3,598 3,989 4,484 4,832 5,123 5,266 5,384 5,704 7,085 7,392 7,563 8,439 9,152 4Q10 4Q11 4Q12 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17A
ver
age
#
of
Ca
sh
Ma
na
g
em
en
t
Tx
(000
),
t
ot
al
2
7
.5
Mn
tr
an
sact
ion
s
in
2
Q
201
7
* *) E xc lud ing M an di ri T ran sa ct io n S yst e mWhol
esal
e CAS
A
Deposi
ts
(Rp
Bn
)
58,055 62,257 61,691 53,604 74,116 89,959 74,334 73,192 140,278 149,351 134,583 148,241 -20,000 40,000 60,000 80,000 100 ,000 120 ,000 140 ,000 160 ,000 180 ,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2Q16 2Q17 10 .1 % Yo Y Gro wt h(22)
21
Strong Pickup in Cash Management
Forex
34 42 63 61 56 41 46 24 27
281,153 310,512
322,795399,500 379,730 348,436
433,929
219,172220,241
-50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000
-10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0
Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Jun 16 Jun 17
Value (USD Bn) # of Trx
Wholesale Remittance
70 94 121 135 146 126 90 37 45
435,866 448,219
599,909 651,241
739,046 730,011
399,585
103,971 119,026
-100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000
-20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0
Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Jun 16 Jun-17
Value (USD Mn) # of Trx
*) Excluding Mandiri Transaction System
Mandiri Cash Management*
549 818 1,519 2,231 3,120 3,778 4,549 2,048 2,747 2,503 7,668
13,676 24,543
44,184 61,599
82,075
38,746
52,772
-25,000 -5,000 15,000 35,000 55,000 75,000 95,000
-500.0 1,000.0 1,500.0 2,000.0 2,500.0 3,000.0 3,500.0 4,000.0 4,500.0 5,000.0
Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Jun 16 Jun 17
Value (Rp Tn) # of Trx (000)
Trade Transactions : Export, Import, Domestic
85 110 125 133 137 127 107 48 59 495,813 510,916
517,251 520,948 509,207 468,870
406,669
196,115
206,434
-100,000 200,000 300,000 400,000 500,000 600,000
-20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0
Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Jun 16 Jun 17
(23)
22
Retail Deposits Increased by 10.6% Year on Year
132 .7 140 .6 146 .1 165 .0 157 .5 166 .8 176 .3 190 .9 179 .0 180 .8 184 .7 202 .6 182 .5 186 .0 188 .0 209 .8 193 .0 214 .8 212 .1 233 .5 220 .5 237 .0 12.712.813.0
13.714.715.618.4 20.7 21.022.021.8 24.0 22.223.224.3 23.1 21.1 21.723.1 26.0 24.5 23.5 14.615.416.1 18.6 17.016.7 28.6 33.0 29.733.634.4 40.2 33.536.425.0 31.9 29.0 29.930.5 36.5 32.9 34.8 4.3 4.3 10.7 11.4 12.111.913.1 13.0
12.814.47.8 7.6 6.9 6.5 6.8 9.0 9.3 9.1 71.670.3 71.5
71.472.170.7 80.2 84.5 88.4100.1 108.3 120.0 119.2116.0 110.0 110.3 112.2 115.5116.9 120.0 119.5 121.8
5.0 5.0 5.1 5.0 4.7 4.6 6.4 7.0 6.3 7.0 7.2 9.5 9.0 7.8 7.7 7.4 6.9 6.8 7.0 10.7 11.7 10.9 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 480 500 1 Q' 12 2 Q' 12 3 Q' 12 4 Q' 12 1 Q' 13 2 Q' 13 3 Q' 13 4 Q' 13 1 Q' 14 2 Q' 14 3 Q' 14 4 Q' 14 1 Q' 15 2 Q' 15 3 Q' 15 4 Q' 15 1 Q' 16 2 Q' 16 3 Q' 16 4 Q' 16 1 Q' 17 2 Q' 17
Rp Savings Deposits FX Savings Deposits Rp Demand Deposits FX Demand Deposits Rp Time Deposits FX Time Deposits
Retail Deposit Analysis
–
Bank Only
2.2%
1.7%2.0% 2.0% 2.0% 2.0% 2.1% 1.9% 2.1% 2.1% 2.1% 2.0% 1.8% 1.9% 2.1%
2.3% 2.3%
2.1%
1.5% 1.5% 1.6% 1.5% 1.5% 1.4% 1.3% 1.2% 1.2% 1.2% 1.3%1.1% 1.1% 1.1% 1.1% 1.1%
6.3% 5.1% 6.6%7.0% 7.3% 8.3% 7.9% 7.8%
7.4% 7.5% 7.2%
6.9% 6.7% 6.6%
6.4% 6.2% 6.2%
0% 5% 10% 4 Q' 11 4 Q' 12 4 Q' 13 1 Q' 14 2 Q' 14 3 Q' 14 4 Q' 14 1 Q' 15 2 Q' 15 3 Q' 15 4 Q' 15 1 Q' 16 2 Q' 16 3 Q' 16 4 Q' 16 1 Q' 17 2 Q' 17 Rp DD Rp Savings Rp TD
Average Quarterly Deposit Costs (%)
0.1%0.2% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3%
0.4%
0.2% 0.3%
0.6%0.7% 0.8%0.5% 0.7%
0.8% 0.6%
0.8%
1.2% 1.2%1.1%1.3%
1.8%
1.2%
0.8%
0.6% 0.5%
0.5% 0.6% 0.6%
0.7% 0.7% 0.0% 0.5% 1.0% 1.5% 2.0% 4 Q' 11 4 Q' 12 4 Q' 13 1 Q' 14 2 Q' 14 3 Q' 14 4 Q' 14 1 Q' 15 2 Q' 15 3 Q' 15 4 Q' 15 1 Q' 16 2 Q' 16 3 Q' 16 4 Q' 16 1 Q' 17 2 Q' 17
FX DD FX TD 66.5%
69.6% 70.1%
72.5% 71.6%
73.0% 73.7% 71.9%
69.9% 68.8%
68.4%
66.2%67.7% 67.6% 69.8% 67.7% 69.1% 68.8% 70.0% 68.6% 69.6% CASA as % of total deposits
(24)
46,021 54,281 8,259
2Q2016 Growth 2Q2017
23
84 ,675 91 ,504 96 ,268 105 ,192 108 ,434 118 ,788 123 ,833 130 ,158 131 ,857 140 ,189 146 ,744 155 ,338 158 ,173 165 ,304 167 ,429 175 ,211 173 ,739 182 ,190 185 ,335 196 ,194 196 ,909 204 ,628 29.6% 29.8% 30.2% 30.9% 31.8% 31.3% 31.2% 31.8% 32.6% 32.7% 33.1% 33.3% 32.7% 33.8% 33.1% 33.7% 33.8% 20% 22% 24% 26% 28% 30% 32% 34% 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 190,000 200,000 210,000 220,000 230,000 1 Q 2012 2 Q 2012 3 Q 2012 4 Q 2012 1 Q 2013 2 Q 2013 3 Q 2013 4 Q 2013 1 Q 2014 2 Q 2014 3 Q 2014 4 Q 2014 1 Q 2015 2 Q 2015 3 Q 2015 4 Q 2015 1 Q 2016 2 Q 2016 3 Q 2016 4 Q 2016 1 Q 2017 2 Q 2017Retail to Total Loans
Consumer and Micro Are Key Retail Growth Drivers
Retail to Total Loans
Micro Credit Business Banking Consumer
(Rp Bn) Business Banking
60,046 59,031
1,015
2Q2016 Growth 2Q2017
YoY -1.7% (Rp Bn) Micro Credit YoY 17.9% (Rp Bn) 76,123 91,317 15,194
2Q2016 Growth 2Q2017
YoY 20.0% Consumer
(25)
Strong M
icrof
inan
ce Growth
24
200 300 502 687 898 994 1,084 1,085 1,084
600 800 800 878 928 1,027 1,127 1,427 1,718 1,717 1,717
10 152 480 710 760 751 706 653 612 611 611
6
10
10
10
2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q17 2Q17
Bra
n
ch
Unit
Ki
o
sk
C
a
sh
O
u
tl
e
t
Cus
tome
rs (
000
)
Ne
tw
or
k
# Of Ne
w
Cus
tome
rs
126,509 140,064 131,715 147,825 138,747 160,620 136,196 162,181 140,886 167,145 158,909 162,738 134,501 138,500 97,164 127,828 130,227 146,323 117,565 117,971 116,440 105,964
1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q1'6 1Q1'7 2Q'17
271
430
562
694
815
889
1
,009
1
,112
1
,208
1
,195
1
,221
2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q17 2Q17
(26)
25
…as
el
l as Cos
ue
Led
ig,
hi
h ‘ose
2
0
% Y
-o
-Y
14,268 15,523 16,466 17,779 18,764 20,113 20,919 22,818 24,092 26,135 27,357 26,995 26,690 26,505 26,347 26,495 26,207 26,340 26,369 26,832 26,869 27,651 28,001 29,994 30,172 31,471 3,964 3,979 3,949 3,887 3,777 3,679 3,571 3,471 3,365 3,312 3,240 3,181 3,172 3,198 3,240 3,310 3,326 3,432 3,534 3,739 3,892 4,313 4,914 5,881 6,246 6,605 6,398 6,708 6,861 6,995 7,143 7,412 7,753 8,206 8,386 8,958 9,374 9,781 10,030 10,642 11,253 11,880 12,201 12,838 13,408 14,103 14,497 15,279 16,160 17,441 17,986 18,723 3,575 3,761 3,910 4,296 4,245 4,492 4,590 5,035 5,025 5,195 5,303 5,620 5,557 6,855 7,568 8,288 8,343 8,751 8,683 8,970 8,768 8,761 8,674 9,128 9,048 9,603 3,454 3,492 4,200 5,115 5,829 6,593 6,609 7,209 7,486 7,905 9,013 10,218 11,083 12,260 13,271 13,983 14,890 15,630 16,641 17,608 18,344 18,981 20,001 21,124 22,555 23,717 698 791 873 928 964 1 ,016 1 ,037 1 ,010 966 927 904 809 840 805 765 750 683 733 892 998 1 ,043 1 ,091 1 ,133 1 ,194 1 ,199 1 ,197 0 5 ,000 10 ,000 15 ,000 20 ,000 25 ,000 30 ,000 35 ,000 40 ,000 45 ,000 50 ,000 55 ,000 60 ,000 65 ,000 70 ,000 75 ,000 80 ,000 85 ,000 90 ,000 95 ,000 100 ,000 1Q '11 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 Ot h e r Au to Cre d it Card s Pa yro ll Lo an s H o m e E q u ity Lo an s Mo rtga ge sLoan
T
ype
Gr
o
wth
(%)
Y
-o
-Y
Q
-o
-Q
Other
9
.7
2
%
-0
.1
8
%
Auto
Loan
s
2
4
.9
5
%
5
.1
5
%
Cr
edi
t Car
ds
9
.6
1
%
6
.1
4
%
P
a
yr
ol
l Loan
s
2
2
.5
4
%
4
.1
0
%
Home
E
qui
ty Loans
5
3
.1
5
%
5
.7
5
%
Mortg
age
s
1
3
.8
2
%
4
.3
1
%
Tot
al
Consumer
2
0
.0
3
%
2
.8
8
%
Quart
er
ly
Consumer
Lendi
ng
Bal
a
nces b
y
Type
Consumer
L
endi
ng
Gr
o
wth
b
y
Type
Rp 9 1 .3 Tn *A u to & M o to rc yc le Loa n s ch an n el e d o r e xecu ted t h ro u gh fi n an ce comp an ies = Rp 10 .7 Tn in ou r C ommer ci al P ort fol io (gr ew 8 .5 % Y o Y ).(27)
26
Transaction Capabilities Growth Driven By Mobile Banking
Transaction Volume
Quarterly Transaction Value (Rp Tn)
Quarterly Users (Mn)
96 122 148 154 170 179
191 193 208 210
242 245.0 237 253 238 248 271 294
2 4 4 5 7 8 11
18
28 36 39 53.0 55 69 68 84 85 93
7 14
18 23 27
29 33 33 34 47
33 36
37 35
40 37 35 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 4 Q '09 4 Q '10 1 Q '11 2 Q '11 3 Q '11 4 Q '11 1 Q '12 2 Q '12 3 Q '12 4 Q '12 1 Q '13 2 Q '13 3 Q '13 4 Q '13 1 Q '14 2 Q '14 3 Q '14 4 Q '14 1 Q '15 2 Q '15 3 Q '15 4 Q '15 1 Q '16 2 Q '16 3 Q '16 4 Q '16 1 Q '17 2 Q '17 ATM Mobile Banking Internet Banking 7.7 8.6 8.2 9.2 10.0 10.6 11.1 11.6 11.8
12.4 12.6 12.6
13.6 13.8 14.1
14.4 15.5
3.2 4.7 4.9
5.3 5.6 5.8 6.1
6.3 6.5 6.7 6.8
6.9 7.0 7.1 7.3 7.4 7.4
1.2
1.0 1.1 1.2 1.3 1.4
1.5 1.6 1.7
1.8 1.9 2.0 2.1 2.1 2.2
0 2 4 6 8 10 12 14 16 4 Q '09 4 Q '10 1 Q '11 2 Q '11 3 Q '11 4 Q '11 1 Q '12 2 Q '12 3 Q '12 4 Q '12 1 Q '13 2 Q '13 3 Q '13 4 Q '13 1 Q '14 2 Q '14 3 Q '14 4 Q '14 1 Q '15 2 Q '15 3 Q '15 4 Q '15 1 Q '16 2 Q '16 3 Q '16 4 Q '16 1 Q '17 2 Q '17 Debit Cards Mobile Banking Internet Banking
Quarterly Transaction Volume (Mn)
142 157
184 189
212 218 233 235
246 249 268
293 295 287 309 291 306 313 343 39 36 44
41 43 41 39 44 51
53
47 48 50
46 49
45 48 46
44
12 18
23 26 32 31 34 57 70 113 172 196 190 254 258
295 311 304 17 42 55 78 85 67
76 81 89 117 102 117 131 138 149 156 154 140 0 25 50 75 100 125 150 175 200 225 250 275 300 325 350 375 4 Q '09 4 Q '10 1 Q '11 2 Q '11 3 Q '11 4 Q '11 1 Q' 12 2 Q '12 3 Q '12 4 Q '12 1 Q '13 2 Q '13 3 Q '13 4 Q '13 1 Q '14 2 Q '14 3 Q '14 4 Q '14 1 Q '15 2 Q '15 3 Q '15 4 Q '15 1 Q '16 2 Q '16 3 Q '16 4 Q '16 1 Q '17 2 Q '17 ATM Branch Mobile Banking Internet Banking
(28)
27
Retail Payment System Gaining Traction
Fee Income from e-channel Tx (Rp Bn)
126.2 200.3 258.2 315
.2
347
.6
414
.7
604
.3
711
.7
758
.2
166.6 196.5
285.7 318.6 382
.0 490
.3 663
.4 765
.2
790
.0
194.5 249.3
313.9 361.8
437.5 489.2
683.3 742.7
223.7 268.5
312.8 464.4
512.9 664.8
771.0 862.6
2009 2010 2011 2012 2013 2014 2015 2016 2017
Q4 Q3 Q2 Q1
3.2% YoY Growth
Numbers of EDC
23,690 27,611
33,732 47,127
92,903 180,532
230,352 270,352
286,861
236
,711
239
,312
239
,670
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q
17
2
Q
17
Volume Mandiri Business
Saving Account (Rp Tn)
17.7 34.7
59.4 85.8
102.3 108.5
120.6
103.3 121.8
2010 2011 2012 2013 2014 2015 2016 2
Q'
16
2
Q'
17
17.96% YoY Growth
(29)
28
Making Inroads into SME and Retail Payments
Fiesta Point Program
A program to get points based on savings average balance and # of transactions through e-channel or branch, so that customer has the opportunity to earn immediate prizes.
Mandiri Belanja Untung Program
Prizes for buyers who do the transactions in the merchant (as a participants), or using Mandiri EDC. For sellers, they have the opportunity to be included into the national lucky draw.
Belanja Hoki/ Dagang Hoki Program
Co-promotion with the ITC Group for the merchants and the buyers who transact in ITC using Mandiri Debit and also a reward program for the building management.
# MTB Transaction & Volume
201 ,106 212 ,844 261 ,935 265 ,423 272 ,212 290 ,019 306 ,831 349 ,868 299 ,417 322 ,587 308 ,832 348 ,059 267 ,195 334 ,912 322 ,377 382 ,104 340 ,288 331 ,271 9,235 10,601 11,385 12,616 12,773 14,068 14,508 16,052
15,996 17,444
17,101 18,373
20,186 20,187
18,974 20,357 20,329 19,355 -3,000 6,000 9,000 12,000 15,000 18,000 21,000 -50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 1 Q '13 2 Q '13 3 Q '13 4 Q '13 1 Q '14 2 Q '14 3 Q '14 4 Q '14 1 Q '15 2 Q '15 3 Q '15 4 Q '15 1 Q '16 2 Q '16 3 Q '16 4 Q '16 1 Q '17 2 Q '17
# of Volume # of Transactions (000)
# MIB Transaction Value & Users
# SME Business w/ Mandiri Acc
543,972
643,334
789,300 845,073 851,069 853,539 848,132
2012 2013 2014 2015 2016 1Q17 2Q17
18 ,528 25 ,857 32 ,273 42 ,582 47 ,304 53 ,124 57 ,447 73 ,666 79 ,970 88 ,013 79 ,173 89 ,389 89 ,906 118 ,389 105 ,781 126 ,857 126 ,545 135 ,267 11 ,535 13 ,542 15
,312 15
,971 17 ,802 18 ,216 22
,570 24 ,676 26,441 28
,122
27
,591 29
,040 29 ,967 40 ,285 34
,251 37,059
39
,025 40,346
1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 Transaction Value (Rp Bn) # of Active Users
(30)
29
Gr
oss
NPL
s
3
.82
%,
Coverage
at
134
.2
%,
Cat
egory
2
at
4
.6
%
12,986 13,944 13,606 15,676 14,856 15,626 16,989 17,672 17,755 19,272 21,586 23,825 22,958 27,116 29,549 28,547 27,078 31,458 30,255 31,122 25,823 28,271 31,586 4 .1 % 4 .3 % 3 .9 % 4 .3 % 3 .8 % 4 .0 % 4 .0 % 3 .9 % 3 .8 % 4 .1 % 4 .4 % 4 .7 % 5 .1 % 4 .5 % 5 .0 % 4 .3 % 4 .6 % -2 ,000 4 ,000 6 ,000 8 ,000 10 ,000 12 ,000 14 ,000 16 ,000 18 ,000 20 ,000 22 ,000 24 ,000 26 ,000 28 ,000 30 ,000 32 ,000 34 ,000 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 S p ec ial M ent ion S p ec ial M ent ion Rat ioNPL Mo
vem
en
t
-Cons
ol
ida
ted
2.60% 2.42% 2.56% 2.21% 2.22% 2.07% 2.04% 1.87% 2.08% 1.89% 1.90% 1.90% 2.07% 2.23% 2.16% 2.15% 2.27% 2.43% 2.81% 2.60% 3.18% 3.86% 3.81% 4.00% 3.98% 3.82% 175 .0 % 172 .2 % 155 .5 % 174 .2 % 185 .1 % 185 .2 % 189 .6 % 185 .5 % 187 .6 % 185 .3 % 157 .4 % 150 .5 % 137 .7 % 136 .2 % 145 .5 % 112 .7 % 126 .6 % 124 .5 % 133 .2 % 134 .2 % 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 Gr os s NPL R a ti o Pr ov/NPLCa
tegory
2
Loans
(31)
30
Non-Performing Loans by Segment
Movement by Customer Segment (Rp Bn)
Non-Performing Loan Movements (Rp Tn)
–
Bank-Only
* Excluding loans to other banks
Q2 2017 Total NPLs of Rp 22.98 Tn
23.14
2.27
4.87
1.27
2.55
1.06
22.98
1Q' 2017 UG to PL DG to NPL Payment Write-Offs Other 2Q' 2017
1,461
164
-652
2,629
891
60
1,033
939
30
620
262
66
422
461
-500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000
UG to PL DG to NPL W/O
Corp Comm Small Micro Cons
NPLs
2Q
NPLs
(Rp tn)
(Rp tn)
(%)
Corporate
0.94
(1.36)
0.38%
Commercial
16.94
0.83
10.77%
Small
2.01
(0.03)
3.40%
Micro
1.33
0.24
2.46%
Consumer
1.76
0.15
1.92%
(32)
31
Total Loans originated since 2005
Net Upgrades(%)/
Downgrades(%)
#2Q 2017 Details
Loan
Background
Q
Balance
(Rp Bn)
2Q
2015
3Q
2015
4Q
2015
1Q
2016
2Q
2016
3Q
2016
4Q
2016
1Q
2017
2Q
2017
DG to
NPL
%
UG to
PL
%
Corporate
238,462
0.11
0.38
0.24
0.13
0.24
-
0.32
0.14
0.43
0.07
0.50
Commercial
152,563
0.95
0.83
0.77
1.97
3.02
0.16
3.87
1.13
1.07
1.49
0.43
Small
56,749
1.17
1.24
0.54
1.31
1.50
1.36
0.63
1.20
1.65
1.75
0.10
Micro
54,261
1.37
1.50
1.08
1.37
1.45
1.35
0.84
0.94
1.09
1.14
0.06
Consumer
91,195
0.23
0.25
0.17
0.32
0.21
0.30
0.17
0.37
0.39
0.46
0.07
Total
593,230
0.60
0.68
0.31
0.94
1.28
0.35
1.36
0.49
0.42
0.75
0.34
2Q17 Net Downgrades of 0.42% On Loans Originated since
2005
(33)
32
Restructured Loans
17 .1 14 .3 13 .1 13 .6 13 .5 13 .5 14 .2 13 .9 14 .0 11 .7 11 .7 12 .0 12 .5 12 .7 11 .2 11 .5 10 .2 11 .8 14 .4 20 .9 26 .4 28 .9 28 .3 34 .1 39 .3 47 .2 47 .3 48 .8 0.0 10.0 20.0 30.0 40.0 50.0 60.0 4 Q '09 4 Q '10 1 Q '11 2 Q '11 3 Q '11 4 Q '11 1 Q '12 2 Q '12 3 Q '12 4 Q '12 1 Q '13 2 Q '13 3 Q '13 4 Q '13 1 Q '14 2 Q '14 3 Q '14 4 Q '14 1 Q '15 2 Q '15 3 Q '15 4 Q '15 1 Q '16 2 Q '16 3 Q '16 4 Q '16 1 Q '17 2 Q '17Restructured Loans at Rp 48.8 Trillion
Downgrade to Non-Performing After being Restructured
14.9% 17.2% 16.2% 13.0% 12.8% 17.6% 13.5% 17.8% 26.2% 23.6% 33.0% 33.7% 31.1% 0.8% 0.2% 3.9% 0.2% 5.5% 5.7% 1.6% 3.4% 11.7% 2.3% 13.9% 4.4% 3.6% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 2 Q 14 3 Q 14 4 Q 14 1 Q 15 2 Q 15 3 Q 15 4 Q 15 1 Q 16 2 Q 16 3 Q 16 4 Q 16 1 Q 17 2 Q 17
(34)
33
Enhancing Synergies & Value from Subsidiaries
Total Assets Rp81.9Tn
Bond Trading Volume Rp51.9Tn
Total Assets Rp27.6Tn
Total Loans Rp7.5Tn
Total Disbursement Rp9.7Tn Total Financing
Rp58.0n
Equity & FI Underwriting Rp20.4n
Annual FYP Rp1.5Tn
Net Interest Margin 6.7%
Net Interest Margin 2.9%
Total Deposits Rp72.3Tn
Equity Trading Volume Rp74.3Tn
ROA 4.4%
ROA 2.1%
ROA 2.7% ROE
5.8%
ROE 5.3%
ROE 61.7%
ROE 11.9%
ROE 15.4%
•Remains the leader in
syariah financing
•Capital injection program
over 3 years
•Cross-selling syariah
products to Mandiri customers
•Expansion of business to
fully utilize current capital base
•Cross-sell capital market
services to broad range of Mandiri customers
•Refocus business toward
higher fee income
•Providing end-to-end bank
assurance business
•Continue to build cross-sell
opportunities in various segments
•Bancassurance products to
complete our suite of consumer offerings
•Enhancing operating
model
•Improving risk
management systems and IT
•Improving productivity
• Pe et ate Ba k Ma di i s network and customer base to develop the
multifinance segment with a strong focus on new 4 wheel vehicles.
Investment Banking
(35)
AXA
Mand
iri
Fi
nanci
al
Servi
ces
Perf
orman
ce
34
171 183 237 255 258 234 262 259 298 270 269 256 348 297 316 308 360 274 247 387 331 280 262 434 300 277 1Q '11 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 Ne t Pr of it A ft e r Ta x (R p Bn ) A n n u a l Fi rs t Ye a r Pr e m iu m (AF YP) ( Rp Bn ) # of P ol icy H ol d e rs ( 000 ) 820 742 769 946 796 892 712 667 695 850 726 774 611 832 874 648 648 816 719 893 760 668 591 1,046 756 746 1Q '11 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 1,603 1,639 1,695 1,744 1,791 1,859 1,878 1,919 1,967 2,033 2,123 2,217 2,354 2,479 2,657 2,962 3,162 3,360 3,465 3,710 3,832 3,961 3,939 4,101 3,930 3,871 1Q '11 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q'17 11 .7 % Y o Y G ro w th (1 .1 % ) Y oY G ro w th (2 .3 )% YoY G row th(36)
35
Ba k Ma di i s
2017 Corporate Guidance
2017 Target
1H17 Realization
Gross Loan Growth (YoY)
11.0% - 13.0%
11.6%
Low Cost Deposits
Rp 537.0 Tn
Rp 490.2 Tn
Net Interest Margins
5.7% - 5.8%
5.88%
Efficiency Ratio
43.0%
43.2%
Gross NPLs
3.5% - 4.0%
3.82%
Cost of Credit
2.5% - 2.7%
2.78%
# of New ATMs
197
234
# of New EDCs
10,000
2,959
# of New Micro Network
34
(2)
(37)
36
Operating Performance
(38)
37
Corporate Banking, Government & Institutions:
Generating Strong Asset Spread
Performance to Date: 1H2017 (Rp Bn)
Strategies for 2017
1. Focusing on Anchor Clients and
penetrating through using of
Transaction Banking
2. Account Plan implementation for top
76 Corporate Banking Customers.
3.
P o ide o e stop se i e solutio s fo
usto e s t a sa tio s a d eate
new business process to accelerate
the execution of Account Plan
including effective and responsive
Complaint Handling.
4. Strengthen business alliance with
Mandiri InHealth & Mandiri DPLK to
ease corporate customers to manage
their needs in health insurance &
pension fund / severance
2,159
2,370
1,199 360
(39)
38
InHealth
–
Opportunity to Increase Fee Income and
Contribute to the Insurance Portfolio
Leveraging our institutional, corporate, &
commercial customers
Providing solutions through our banking
products to InHealth healthcare provider
Cross-selling Mandiri products to InHealth
members
We have over 700 institutional, 300 corporate, and 1,700 commercial customers with the potential to become members of InHealth
• InHealth has 6,885 healthcare providers and recorded over
Rp 631 Bn in claims year to date 2017
• Bank Mandiri will leverage the hospital network asI Health s
partner to increase transactions through enhanced cash management products
• Bank Mandiri also will provide retail packaged products for
all the doctors asI Health spartner
InHealth earned premium payments of Rp 821 Bn in 2017 year to date from clients. Going forward, Bank Mandiri will encourage the use of cash management products through
Bank Mandiris distribution channels and cross sell other
products to over 1.5 Mn InHealth members.
692
,831
1
,023
,228
1
,175
,240
1
,118
,206
1
,141
,896
1
,087
,313
940
,696
1
,247
,334
1
,518
,236
5,501
6,242 6,314 6,262 6,094 6,189
7,072 7,018 6,885
-2,000 4,000 6,000 8,000
-200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000
2009 2010 2011 2012 2013 2014 2015 2016 1H17
Total Member # of Providers
36 78 47 107 120 203 155 163 80 94 203
811
1,073 1,203
1,410 1,400 1,432 1,620
888
1,185
0 50 100 150 200 250
-200 400 600 800 1,000 1,200 1,400 1,600 1,800
2009 2010 2011 2012 2013 2014 2015 2016 1H16 1H17
(40)
39
1. Implement client segmentation
strategy for Treasury anchor and
non-anchor clients.
2.
Increase retail coverage of fixed
income and structured products.
3. Develop new FI client coverage model
and implement segmentation strategy.
4.
‘e italize o e seas offi es fu tio as
a distribution channel, and introduce
new business models.
5. Enhance retail brokerage program in
Mandiri Sekuritas.
6. Upgrade business license status of
Mandiri Sekuritas Singapore Office.
Treasury & Market
Performance to Date: 1H2017 (Rp Bn)
Strategies for 2017
2,631
2,463 294
(41)
Mandiri Sekuritas
fi a ial pe fo
a e
(Rp Bn)
40
Q2 2017
Q2 2016
Y-o-Y
(%)
Revenues
363
311
17%
•
Investment Banking
41
*)59
-30%
•
Capital Market
140
130
7%
•
Proprietary
14
32
-56%
•
Investment Mgt
168
89
88%
Operating Expenses
318
240
32%
Earnings After Tax
29
51
-43%
Equity Transactions –
bn
74,301
54,368
37%
SUN Transactions –
bn
51,870
38,437
35%
Equity & Bonds Underwriting–
bn
20,377
**)13,007
57%
ROA
4.5%
5.9%
-1.4%
ROE
5.3%
9.8%
-4.5%
*) Revenue from Fixed Income Underwriting process are including accrued revenue of Global Sharia Bonds amounted to Rp 3.9Bn **) Includes Global Sharia Bonds underwriting process amounted to USD3Bn
(42)
Commercial Banking:
Strong revenues from Assets
41
1.Support Bank
Ma di i s
Wholesale
Banking vision as an Integrated
Wholesale Bank through
sophisticated, customized and complete
services leading to increased revenue
through Wholesale Deposit generation
and Fee Income.
2.Increasing profit and market share
th ough i
easi g e isti g usto e s
share of wallet, increasing revenue from
e usto e s a d a agi g NPL s.
3.Provide the best total business solutions
for commercial customers by developing
products and services including quality
bundling of products, quick service and
competitive pricing.
4.Effective Alliance in units based on
customer base in Commercial
segment, especially in developing value
chain business.
Performance to Date: 1H2017 (Rp Bn)
Strategies for 2017
2,017
1,033
501 248
3,303
1,844
(43)
42
Commercial Banking :
Stronger Platform & Improved Distribution Capability
* Business Savings Product
Solid & Stable Source of
Low Cost Funds
Product 2Q
2017 2Q
2016 Growth
Demand
Deposit 31.33 36.12 -15,30% Rupiah 22.91 20.57 10.22%
FX 8.42 15.55 - 84.75%
Saving
Deposit* 8.59 7.66 10.73% Total CASA 39.92 43.79 -9.70%
Total Funding 59.76 61.32 -2,60%
CASA Ratio = 66.79%
Funding from Java & Bali = 69% of total funding
Expanding Scope of Distribution, 2Q 2017
Sumatera Loans = Rp 28.1 tn Funds = Rp10.6 tn
Kalimantan Loans = Rp 10.1 tn
Funds = Rp 4.9 tn
Eastern Loans = Rp 5.0 tn Funds = Rp 2.8 tn
Java and Bali Loans = Rp 114.0 tn
Funds = Rp 41.5 tn
CBC = 21 Unit, 8 Dept Floor = 9 Unit
(44)
43
Micro & Business Banking:
Selectively growing our high margin business
Performance to Date: 1H2017 (Rp Bn)
Strategies for 2017
1.
Continue to develop retail payment
solutions for top retail industry value
chains and business clusters in order
to increase low cost deposit and
fee-based income
2.
Develop customer education to
further increase usage of new retail
products (e.g., prpaid) as well as
e-channel transactions in order to
i
ease usto e s lo alt a d
balances.
3,231
3,938
1,177
1,614
6,732
3,247
(45)
44
Business Banking :
* Numbers are restated after Resegmentation in Jul 2015
Medan
Makassar Banjarmas
in Surabaya Semarang
Denpasar Bandung
Pekanbaru Palembang B.Lampung
Pontianak
Samarinda
Manado
Palu Jayapura
Balikpapan Batam
Jambi Pematang siantar Padang
Bekasi Jakarta
Solo Tangerang Bogor
Branch Class that covered SME Customers A.1 : 34 B.2 : 65
A.2 : 45 B.3 : 66 B.1 : 44 B.4 : 26
Expanding Scope of Distribution, 1Q 2017
Solid & Stable Source of
Low Cost Funds*
Product 2Q 2017
2Q 2016
Growth YoY Demand
Deposit 40.9 33.5 22.1% Saving
Deposit 78.5 70.5 11.4%
Total CASA 119.5 104.0 14.8%
Total
Funding 139.7 128.4 8.8%
Rp Tn
CASA Ratio = 85.5%
Funding from Java & Bali = 76.5% of total funding
Sumatera Loans = Rp 13.1 tn Funds = Rp 18.3 tn
Kalimantan Loans = Rp 9.0 tn Funds = Rp 6.5 tn
Eastern Loans = Rp 7.5 tn Funds = Rp 8.1 tn
Java and Bali Loans = Rp 29.5 tn Funds = Rp 106.9 tn
(46)
45
10.31 13.28 16.06 23.97 36.73 37.44 39.93 41.82 44.50 46.30 48.40 49.70 50.46 49.82 49.60 49.32 49.13 48.80 50.40 50.60 51.09 50.74 52.71 53.24 55.58 55.42 58.06 4Q '07 4Q '08 4Q '09 4Q'10 4Q '11 1Q '12 2Q '12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 Fi na n ci ng 91.1% 89.1% 83.1% 82.7% 86.2% 87.2% 92.2% 93.9% 93.9% 95.6% 94.2% 91.3% 89.4% 90.3% 89.9% 85.7% 82.1% 81.7% 85.3% 84.5% 82.0% 80.1% 82.6% 80.4% 79.2% 79.5% 81.9% FDRBSM
Add
ress
ing As
se
t Qu
al
ity
Issues
Sy
ari
a
h
Fi
n
an
ci
ng
(
Rp
tn
)
Fi
n
an
ci
a
l P
er
for
mance
(Rp
bn
)
FY FY FY FY FY FY FY Q Fi n an ci n g 23,968 36,664 44,755 50,460 49,133 51,090 55,580 58,061 De p o si ts 28,999 42,618 47,409 56,461 59,821 62,113 69,950 72,300 A ss e ts 32,482 48,672 54,229 63,965 66,942 70,369 78,832 81,901 E A T 418.5 551.1 805.7 651.2 71.8 289.6 325.4 181.0 R ati o s: RO A (% ) 2.2 1.9 2.3 1.5 0.2 0.6 0.6 0.6 R O E ( % ) 25.1 24.2 25.1 15.3 1.5 5.9 5.8 5.8 G ro ss N PF 3.5% 2.4% 2.8% 4.3% 6.8% 6.1% 4.9% 4.8%Ne
t
In
ter
es
t M
ar
gi
n
&
Cos
t of
Fund
s
Yo ACoF NIM
6.3% 6.3% 6.6% 6.6% 7.5% 6.9% 6.9% 7.0% 7.3% 7.1% 7.3% 7.2% 7.3% 6.3% 6.2% 6.0% 6.2% 6.3% 6.3% 6.4% 6.5% 6.5% 7.2% 6.7% 6.7% 7.1% 4Q '07 4Q '08 4Q '09 4Q'10 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 12.4% 13.0% 12.7% 12.3% 13.0% 11.5% 12.0% 12.2% 12.4% 12.3% 12.4% 12.1% 12.0% 11.1% 11.1% 11.0% 10.9% 10.6% 10.0% 10.6% 10.9% 10.8% 10.9% 11.1% 11.1% 11.4% 5.4% 5.7% 5.6% 5.1% 5.2% 4.5% 4.7% 4.5% 4.5% 4.6% 4.0% 4.0% 4.1% 4.4% 4.5% 4.5% 4.4% 4.4% 4.3% 4.2% 4.2% 3.8% 3.7% 3.7% 3.6% 3.5%
(47)
46
Consumer Banking:
Significant growth in spread and fee income
1.
Mortgage package
2.
Mortgage priority
3.
Mortgage for depositors
4.
Instant approval for mortgage
5.
Selco Xtra payroll loan
6.
SOE synergy for payroll loan
7.
Regular top up for payroll loan
8.
Cross-sell payroll loan
9.
Regular auto loan through branch referral
10. Improving the quality of new card holders
acquisition
11. Raise the limit of credit card
12. Usage program with strategic partner
13. Mandiri Bonus Untung program
14. Regional marketing program for savings
15. Special program for drop fund depositors
16. Bundling program
17. Internal branch contest for saving
Performance to Date: 1H2017 (Rp Bn)
Strategies for 2017
2,037
4,744
2,414 636
8,559
1,142
(48)
Mandiri Tunas Finance: Total Financing YTD of Rp9.8Tn
47
Total Disbursement and the Breakdown
for Joint Financing and Non JF
Breakdown of Financing
1H 2017 Performance
1
,054 1,110 1,016 523 1,506 1,199 1,409 1,600 1,454 ,9091 1,020 2,217 1,858 ,9081 1,261 1,694 1,849 2,634
1 ,478 1 ,728 2 ,224 2 ,456 2
,056 2,408 2,206
2 ,391 2 ,236 1 ,936 3 ,094 2 ,975 3
,012 2,909
2
,414 2,057
2 ,723 2 ,548 Q 1 '13 Q 2 '13 Q 3 '13 Q 4 '13 Q 1 '14 Q 2 '14 Q 3 '14 Q 4 '14 Q 1 '15 Q 2 '15 Q 3 '15 Q 4 '15 Q 1 '16 Q 2 '16 Q 3 '16 Q 4 '16 Q 1 '17 Q 2 '17 JF Non JF 2
,105 2,416 2,871 2,678 ,2903 3,374 3,398 3,824 3,549 3,732 3,975 5,062 4,761 ,7274 3,636 5,216 4,467 5,077
372 345 289 232 208 162 149 108 96 71 82 73 67 70 36 43 99 99 56 76 80 70
64 70 68 60
45 41
57 56
41 19
5 8 6 6 Q 1 '13 Q 2 '13 Q 3 '13 Q 4 '13 Q 1 '14 Q 2 '14 Q 3 '14 Q 4 '14 Q 1 '15 Q 2 '15 Q 3 '15 Q 4 '15 Q 1 '16 Q 2 '16 Q 3 '16 Q 4 '16 Q 1 '17 Q 2 '17 Motorcycle Used Car New Car
1H
2017
1H
2016
Change
Loans (Rp Bn) 33,213 29,706 11.8%
Net Income (Rp Bn) 116.5 167.4 -30.4%
Approval Rate (%) 85.4 85.2 0.2%
Disbursement (Rp Bn) 9,755 9,686 0.7%
NIM (%) 2.9 3.4 -14.5%
ROA (%) 2.7 3.4 -14.5%
ROE (%) 15.4 27.0 -43.0%
CER (%) 46.5 42.1 10.5%
(49)
48
Supporting
(50)
49
2016-2020 Bank Mandiri Corporate Plan
–
Accelerate In
The Growth Segments
Loan Growth
Engine
Mortgage
Auto Loan
1
2
Funding
Engine
Dominate payroll segment
using Bank@Work for corporate and commercial customers
Improve transaction banking offering to
tap ash a age e t for a hor lie ts value hai
1
2
Product Focus
1.
Improve processing speed
2.
Tapping higher ticket size
3.
Target developer relationships
Key initiatives
1.
Streamline segment split between MTF and MUF
2.
Utilize existing Mandiri branch network for growth
Personal Loan & Micro KSM
3
1.
Combine consumer personal loans and micro
salary-based loans
2.
Le e age o i o s dist i utio footp i t
(51)
50
Our Portfolio Mix Would Be More Retail-Focused
40%
36%
26%
24%
10%
10%
9%
10%
15%
20%
1H2017
2020
Consumer
Micro
Business Banking
Assets Composition Mix
1)Commercial
Corporate
66%
70%
35%
30%
1H 2017
2020
Time Deposits
Liabilities Composition Mix
CASA
1) Excluding TSM and Wholesale Credit Recovery Bank only figures
(52)
Cash Management
•
19,451 Customers
•
27.5Mn Trx in
2017
(2)51
Bank Mandiri Remains on Track to B
e o e I do esia s Most
Admired Financial Institution
Retail Loans
(1)•
Rp 204.6 Tn
•
33.8% of Loans
•
High yield loan
amounting Rp 145.6 Tn
Subsidiary Income
•
Total Rp 1.07 Tn
•
Sum of income from
11 subsidiaries
(11.3% of EAT)
Alliances
•
Bank Guarantee: Rp16.01Tn
•
ForEx: USD12.27Bn
•
Trade: USD1.86 Bn
e-Channel Tx
•
1,565 Mn Trx YTD
•
18.5% YoY Growth
# of Cards Issued
•
Credit
4.61 Mn
•
Debit 15.46 Mn
•
Prepaid 9.76 Mn
(1) Small Business, Micro and Consumers (2) Excluding Mandiri Transaction System
(3) Incl. KSM Centre, MMU Cash outlet and MobilMU
# of Accounts
•
Deposit 19.92 Mn
•
Loan 1.73 Mn
including mortgage
accounts of 153,100
# of new Accounts (YTD)
•
Deposit 3.28 Mn
•
Loan 337,924
# of Outlets
2,603 Branches
3,422 Micro Outlets
(3)(53)
We are Preparing For Our Next Transformation
2009
2005
Market Cap: IDR 60 Tn Revenue Market Share: 8% Net Profit: IDR 2.41 Tn ROE: 10%
Gross NPL: 16.3%
Market Cap: IDR 136.9 Tn Revenue Market Share: 13.4% Net Profit: IDR 9.22 Tn
ROE: 24.24% Gross NPL: 2.42%
2020
Top Bank In ASEAN
Market Cap: IDR 251.4 Tn Revenue Market Share: 12.8% ROE: 21.0%
Gross NPL: 2.15%
52
2014
• Building a winning organization
• Delivering tailored proposition
for priority segments
• Building alliances
• Strengthening risk management
•Wholesale transaction banking
•Retail payment & deposits
•Retail financing
•Business transformation
•Developing integrated Human
Capital & IT
•Focusing on non-organic growth
1
stTransformation
2
ndTransformation
(54)
…But We Need to Co side G o i g Be o d the Ba k
•
Revenue YTD (Bank Only):
Rp32.0Tn (8% YoY)
•
Profit from Subsidiaries:
Rp1.07Tn (11.3% of EAT)
•
1H Revenue Wholesale vs
Retail : Rp 14.4Tn vs Rp 17.6Tn
Our Deal size has continued
to move higher
•
BSHB
Rp 40bn (2008)
•
MTF
Rp250 bn (2009)
•
Inhealth
Rp 1.3 tn (2013)
Bank
& Group
Finding Business
Partners
M & A
•
JV with AXA (AMFS). Gross Written
Premiums Rp1.5tn. +27% YoY
•
JV with Tunas Ridean (MTF). Total
Financing Rp4.1tn. 15% YoY
•
InHealth
partner BPJS
(55)
54
26,978
10,893
16,060
21,812
Net Interest Income Fee-Based Income Overhead Expenses &
Others
Pre-provision Operating Profit
2Q17 PPOP increased by 12.7% YoY on strong fee income
and cost control
2Q 2017
Notes :
1. Fee based income excluding gain on sale & increasing value GB & securities 2. Overhead expenses + others excluding provisions
2Q 2016
Higher 12.7%
25,789
9,190
15,630
19,348
Net Interest Income Fee-Based Income Overhead Expenses
& Others
Pre-provision Operating Profit
(56)
Committed to Improving Shareholder Value
Reduce Cost of Funds
Improve Assets Yield
Diversify into Fee Income
Reduce Provision/Loan
Improve Cost Efficiency
Leverage on cash generator
(wholesale) to accelerate growth
Diversity into fee income
Competitive.
sustainable
returns. with
above-average
rates of growth
Business Strategy
Strategic
Alliances
Support Strategy
(57)
…a d Offe I o ati e Pa
e t “olutio s
56
#Pre-Paid Card (000s)
Pre-Paid Transaction Value (Rp Mn)*
*value for quarter
846 981 1,093
1,412
1,5641,7521,663 1,8291,976 2,112 2,249 2,478 2,693 2,892 3,080 3,255 3,428 3,650 3,879 4,166 693 1,0981,226 1,312 1,4091,533 1,5641,633 1,960 2,012 2,1102,202 2,338 2,489 2,6342,776 2,850 2,982 49
50 58 59 59
64 64
84 84
8484 84 8585 85 85 85 85 85 4 89 152 392 644 890 1,124 1,240 1,382 1,559 1,785 1,992 2,163 2,270 2,375 1 Q' 12 2 Q' 12 3 Q' 12 4 Q' 12 1 Q' 13 2 Q' 13 3 Q' 13 4 Q' 13 1 Q' 14 2 Q' 14 3 Q' 14 4 Q' 14 1 Q' 15 2 Q' 15 3 Q' 15 4 Q' 15 1 Q' 16 2 Q' 16 3 Q' 16 4 Q' 16 1 Q' 17 2 Q' 17 Indomaret e-Toll Gaz e-Money 775 1,748 4,015 5,282 5,275 7,891 9,578 13,662 16,802 18,012 24,163 27,455 36,018 35,923 11,680 20,211 21,752 22,741 21,156 20,679 19,460 20,502 22,079 23,864 24,644 27,260 30,058 30,698 33,826 39,691 36,457 31,489
214 209161 136 131 415 321 484 456
455 447426 381 296 19 272 1,502 2,231 6,421 8,332 14,874 20,981 22,777 24,508 27,205 30,466 36,704 44,169 41,450 38,259 1 Q '12 2 Q '12 3 Q '12 4 Q '12 1 Q '13 2 Q '13 3 Q '13 4 Q '13 1 Q '14 2 Q '14 3 Q '14 4 Q '14 1 Q '15 2 Q '15 3 Q '15 4 Q '15 1 Q '16 2 Q '16 3 Q '16 4 Q '16 1 Q '17 2 Q '17 Indomaret e-Toll Gaz e-Money
Pre-Paid Transaction Volume (Rp Mn)*
*value for quarter
3141 79
131
200189205206196 223 205 359362 270 360 425 343 579 616 767
20 3042
53 9591
135132138139135130136143
167173178
208231 241 278 323 289 270
1 1 1 2 2 1 1 2 3 4
4 5
5 4
4 4
54 0 0 0 0 0 0 0 9 15
30 4150 87107 126137 160182 207 262 315 296 290 1 Q '11 2 Q '11 3 Q '11 4 Q '11 1 Q '12 2 Q '12 3 Q '12 4 Q '12 1 Q '13 2 Q '13 3 Q '13 4 Q '13 1 Q '14 2 Q '14 3 Q '14 4 Q '14 1 Q '15 2 Q '15 3 Q '15 4 Q '15 1 Q '16 2 Q '16 3 Q '16 4 Q '16 1 Q '17 2 Q '17 Indomaret e-Toll Gaz e-Money
(58)
Strong Microfinance Growth
57
Outstanding
–
Rp Tn
*based on OJK publication market data (micro small medium business/ UMKM)
2 ,195 4 ,208 5 ,764 5 ,136 7 ,057 5 ,187 6 ,877 5 ,689 8 ,527 7 ,039 7 ,732 5 ,974 5 ,945 4 ,005 6 ,337 6 ,153 6 ,379 8 ,497 12 ,534 10 ,089 10 ,258 4 Q '10 4 Q '11 4 Q '12 1 Q '13 2 Q '13 3 Q '13 4 Q '13 1 Q '14 2 Q '14 3 Q '14 4 Q '14 1 Q '15 2 Q '15 3 Q '15 4 Q '15 1 Q '16 2 Q '16 3 Q '16 4 Q '16 1 Q '17 2 Q '17 Booking
Booking Volume
–
Rp Bn
16.9% 21.0% 18.7% 14.4%14.3%14.0%14.2% 13.2%13.2%13.2%13.2% 11.0%11.3%10.8%10.6% 9.9% 9.0% 8.5%9.2% 6.8% 6.4% Asset Spreads(%)
4.4 5.4 7.3
11.8 19.0
27.1 36.0
42.5
50.6 52.2 54.3
2.02%2.29%2.76% 3.91%
6.25% 9.77%
11.00%
11.95% 11.94% 12.01%12.10%
0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 8.00% 8.50% 9.00% 9.50% 10.00% 10.50% 11.00% 11.50% 12.00% 12.50% 13.00% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55
2008 2009 2010 2011 2012 2013 2014 2015 2016 1
Q
17
2
Q
17
Mandiri Microfinance Outstanding Mandiri Market Share
(1)
98
Measur
es
of Scal
e and
Return
s Rel
ati
ve to Peers
Bank Onl
y,
As
of Marc
h
2017
18.8% 17.1% 16.0% 14.6% 13.4% 12.9% 12.0% 11.8% 8.6% 8.0% BRI BCA BNI BTN Mandiri Permata Danamon Maybank Panin CIMB Niaga 2,601 2,060 1,997 1,235 1,213 853 565 518 428 331 Mandiri BRI BNI Danamon BCA BTN Panin CIMB Niaga Maybank Permata 8.1% 7.5% 6.3% 5.7% 5.6% 5.6% 4.9% 4.6% 4.3% 3.5% BRI Danamon BCA Mandiri BNI CIMB Niaga Panin Maybank BTN Permata 60,072 38,706 31,950 26,435 24,435 13,109 11,597 8,589 7,387 6,908 BRI Mandiri Danamon BCA BNI CIMB Niaga Panin BTN Permata MaybankB
ran
ch
es
R
e
tu
rn
on
E
q
u
ity
(Af
ter
Ta
x)
(%)
Em
p
lo
yee
s
N
e
t
In
ter
es
t
Mar
gi
n
s
(%)
3.5% 3.5% 3.3% 2.8% 2.4% 1.7% 1.5% 1.5% 1.5% 1.4% BCA Danamon BRI BNI Mandiri Panin Maybank BTN CIMB Niaga PermataR
e
tu
rn
on
As
se
ts
(B
e
for
e
Ta
x)
(%)
24,292 17,694 17,207 17,075 3,812 1,951 1,633 1,524 1,007 999 BRI Mandiri BCA BNI CIMB Niaga BTN Maybank Danamon Permata PaninA
TMs
A ver ag e(2)
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(3)
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(4)
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(5)
The analysts listed above actively follow Bank Mandiri, but not all have issued research reports or formally initiated coverage.
Equity Research Contact Details
BROKERAGE ANALYST TELEPHONE E-MAIL
BAHANA SECURITIES Henry Wibowo 62 21 250 5081 ext. 3622 Henry.wibowo@bahana.co.id BANK OF AMERICA-MERRILL LYNCH Anand Swaminathan 65 6678 0419 anand.swaminathan@baml.com
BCA SEKURITAS Gilang Purnama - Gilang.purnama@bcasekuritas.co.id
CIMB SECURITIES Jovent Giovanny 62 21 515 1330 ext. 262 jovent.muliadi@cimb.com
CITI INVESTMENT RESEARCH Salman Ali 62 21 2924 9219 Salman1.Ali@citi.com
CLSA LIMITED Sarina Lesmina 62 21 2554 8820 Sarina.Lesmina@clsa.com
CREDIT SUISSE Sanjay Jain 852 2101 6088 Sanjay.Jain@credit-suisse.com
DANAREKSA SEKURITAS Adriana Indrajatri 62 21 2955 5777 adriana.suwono@danareksa.com
DBS VICKERS SECURITIES Lim Sue Lin 603 2711 0971 Suelin@hwangdbsvickers.com.my
DEUTSCHE VERDHANA SECURITIES Raymond Kosasih 62 21 2964 4525 raymond.kosasih@db.com
GOLDMAN SACHS (ASIA) Melissa Kuang 65 6889 2869 melissa.kuang@gs.com
HSBC LTD Loo KarWeng 65 6239 0654 Karwengloo@hsbc.com.sg
INDO PREMIER SECURITIES Stephan Hasjim 62 21 5793 1168 Stephan.Hasjim@ipc.co.id
J.P. MORGAN ASIA Harsh Modi 65 6882 2450 Harsh.w.modi@jpmorgan.com
KIM ENG SECURITIES Rahmi Marina 62 21 2557 1188 Rahmi.Marina@maybank-ke.co.id
MACQUARIE CAPITAL SECURITIES INDONESIA Jayden Vantarakis 62 21 2598 8310 Jayden.vantarakis@macquarie.com
MIRAE ASSET SEKURITAS Taye Shim 62 21 515 3281 taye.shim@miraeasset.com
MORGAN STANLEY Mulya Chandra 62 21 3048 8125 Mulya.Chandra@morganstanley.com
NOMURA Marcus Chua 65 9646 3168 Marcus.chua@nomura.com
SANFORD C. BERNSTEIN Kevin Kwek 65 6230 4650 Kevin.Kwek@bernstein.com
UBS Joshua Tanja 62 21 574 0111 Joshua.Tanja@ubs.com
(6)
PT Bank Mandiri (Persero) Tbk PLAZA MANDIRI
Jl. Jend. Gatot Subroto Kav. 36-38 Jakarta 12190, Indonesia
Tel: 62-21 526 5045
Fax: 62-21 527 4477, 527 5577 Call Center: 14000
www.bankmandiri.co.id
Contact Information: Investor Relations Tel: +62 21 524 5085 Fax: +62 21 5290 4249 E-mail: ir@bankmandiri.co.id http://ir.bankmandiri.co.id Corporate Secretary Tel: +62 21 524 5740 Fax:: +62 21 526 8246