2018Q1 Analysts Meeting (Long Form) FINAL
Indonesia’s Best Asean Prominent:
Grow above the market, portfolio quality focused, employer of choice in Indonesia
Accelerate in Growth Deepen Client
Integrate The Group
Segments
Relationship
• Become the first choice in consumer
• Strengthen Bank Mandiri’s position as banking, especially in the middle-
Drive subsidiaries’ performance by
the No. 1 Corporate Bank income class
increasing synergies within the
• Grow in-line with the market in the • Focus on micro fixed income earners
Mandiri Group.
Middle Corporate segment and asset-backed consumer lending
Increase distribution network
• Offering sector specific solution and • Selectively grow SME segment and
productivity
integrated product packages. productive micro by focusing on asset
Strengthen presence in ASEAN
countries
quality
Current Achievements (1Q2018)
Current Achievements (1Q2018)
Current Achievements (1Q2018)
Consumer Loans Rp79.8Tn (+14.7% YoY)
Large Corporate Loans Rp255.0Tn (+9.0% YoY) Micro Loans Rp85.6Tn (+22.6% YoY)
Total income from subsidiaries Rp648Bn
Wholesale Fee Income Rp2.2Tn (28.8% of SME Loans Rp51.0Tn (-11.3% YoY)
(11.1% of EAT)
Average CASA per branch grew by 4.4%
wholesale income)
How We Plan To Get There
Strategic Initiatives
Description
▪ Grow large corporate lending above the market growth rate
Focus on Core Business
and deepen relationships with existing clients ▪ Increase fee based income & wholesale current accounts
▪ Accelerate consumer lending growth: mortgages, auto loan
Expanding into
Underpenerated Low-Risk
and salary based loans
▪ Push retail CASA growth through Bank@Work ▪ Defend market share in SME
Segments
▪ 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
Strengthen The Foundation
enhance insights and cross-selling.
Our Portfolio Mix Would Be More Retail-Focused
Assets Composition Mix 1)
Liabilities Composition Mix 1)
Consumer
30% Micro
Time Deposits
SME
Middle Corporate
CASA
Large Corporate
1Q18
1Q18
1) Bank-only figures
Stable Macroeconomic Indicators
Our View on Macroeconomic By the Inflation remained stable
Indonesian Economic Growth Improved
in 4Q17
End of 2018
Headline inflation (% YoY)
10 Core inflation (% YoY)
BI Rate 9
7 Days RR 6.5
GDP growth
Inflation
USD/IDR
Benchmark Rate
Q 1 2 Q 3 Q 4 Q 1 Q Q 2 Q 3 Q 4 1 Q 2 Q 3 Q Q 4 1 Q 2Q14 3Q14 4 Q 1 Q Q 2 Q 3 4 Q 1 Q Q 2 Q 3 4 Q 1 Q 2 Q 3 Q Q 4
Source : CEIC, Bloomberg
Tn
43 4.1 1Q17
(% 1Q17
Rp
gi
x( 2017
13.8 a 2016
er T 2015
t Mar es
Aft
ter
ng
In
arni 2011
9.2 E 2010 Ne
(% Y (66
ve
Loan 2017 Tn
ti Rp
ng
osi
ormi
OP 6
1.9% 2013 e e b
Rp
P b ld P
erf
1.9% 2012 u ld u
2.2% 2011 w w IM
PPOP , ng N
Non P
2.8% 2009 2016 2016 in in t t n
n e e m m ay
Turni
Key Financial Highlights
Bank Mandiri’s 1Q2018 performance continues to improve:
r Loans
1Q 2017
1Q 2018
7.1% Gross NPL Ratio
Rp 656.2 Tn
Rp 703.0 Tn
-66 bps
Net NPL Ratio
-17 bps
Low Cost Funds Ratio
94 bps
[Low Cost Funds (Rp)]
Rp 465.6 Tn
Rp 497.2 Tn
NIM
-8 bps Efficiency Ratio
72 bps PPOP
6.7% Earnings After Tax
Rp 10.8 Tn
Rp 11.5 Tn
Rp 4.1 Tn
Rp 5.9 Tn
Fine Tuning Growth Momentum
Loans by SBU + Subsidiaries Deposits by Product – Consolidated
(Rp Tn) Y-o-Y (Rp Tn)
Y-o-Y
r Total
FX Time
Rp Time
FX Demand
Rp Demand
Mdl. Corp
FX Savings
Rp Savings
Lrg Corp+Inst.+SAM
Q' 1 Q' 2 3 Q' 4 Q' 1Q
Q' Q' Q' 14 14 14 14 '15
2Q
Q'
4 Q'
1 Q'
Q' 2 3 Q'
Q' 4 Q' 1 2 Q'
Q' 3 4 Q'
Q' 1 Q'
Q'
Q'
Q'
Q'
Q'
Q'
Q'
1 2 3 4 1 2 3 4 1Q
2Q
Q'
Q'
Q'
Q'
15 15 16 16 16 16 17 17 17 17 18 14 14 14 14 15 15 15 15 '16
Strong and Liquid Balance Sheet
Assets
1Q 2018
1Q 2017
Liabilities
1Q 2018 1Q 2017
Cash
186,246 178,124 Current Acc w/ BI & Other Banks
21,213 Current Account
310,936 287,519 Placement w/ BI & Other banks
62,665 Savings
272,106 265,471 Receivables (Acceptances & Others)
73,767 Time Deposits
Marketable Securities
769,288 731,115 Government Bonds
58,695 Total Deposits
16,878 9,026 Provisions of Loans
Loans (Gross)
656,211 Securities Issued
20,706 33,893 Net Loans
(34,755) Deposits from other banks
187 195 Reverse Repo
621,457 Subordinated Debt
41,497 34,536 Other Provisions
2,309 Borrowings
15,058 15,783 Deferred Tax Assets
(1,723) Other Int. Bearing Liabilities
69,346 57,935 Other Assets
5,514 Non Int. Bearing Liabilities
57,499 Equity incl. Minority Interest
Total
1,098,158 1,034,307 Total
Lower Credit Cost
Summary P&L (Rp Bn)
Interest Income
-5.0% Interest Expense
Net Interest Income
Net Premium Income
Net Interest Income & Premium Income
Other Non Interest Income * Other Fees and Commissions
-14.6% * Gain fr. sale & Incr. in Val & Sale of Bonds
Total Non Interest Income
Total Operating Income
-3.5% Provisions, Net
2.7% Personnel Expenses
-11.2% G&A Expenses
-17.6% Other Expenses
Total Expense
-13.3% Profit from Operations
6.5% Non Operating Income
79 -134.2% Net Income Before Tax
Net Income After Tax
LDR Increased to 91.2%, Bank Only Loan Growth of 5.1%
Quarterly LDR
Quarterly Loan Segment Details
Break Y-o-Y
(Consolidated)
(Bank Only)
down r
Q' 1 2 3 4 1 2 3 4 1 2Q 3Q 4 1 2 3 4 1 2 3 4 43 36.838.2
12 12 12 12 13 13 13 13 14 '14 '14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 3 9 40 32.8 .5 .3
QoQ Growth (%)
YoY Growth (%) 102
Q' 4 12.2% 1 10.2% Q' 3 Q' 9.5%
Large Corp
Mdl. Corp SME
Q' 1 2 Q' 3 Q' 4 Q' 1 Q' Q' 2 Q' 3 Q' 4 Q' 1 Q' 2 Q' 3 4 1Q 2Q 3 0.0%
Q' -3.6% Q' 4 Q' -0.9% Q' 1 2 Q' 3 Q' Q' 4 Q' 1 2 Q' Q' 3 4 Q' 1 Q'
12 12 12 12 13 13 13 13 14 14 14 14 '15 '15 15 15 16 16 16 16 17 17 17 17 18
As of March 2018; Non-consolidated numbers
Rp 106.4 Tn in Loans Disbursed in 1Q 2018
Loan Movement – 1Q 2018 Bank-Only Loan Disbursement by Segment – 1Q 2018 Bank-Only Rp Tn
Rp Tn
4Q'17 Disburs. Install. Pay-off FX Impact Write-Offs 1Q'18
Micro Consumer Total
Corporate Corporate
Total CAR at 20.9% with ROE at 13.8%
Bank Only - Capital & RWA Movement Profit After Tax & ROE (Consolidated)
Rp Bn 23.2% 24.6%
Total Capital (Rp Tn)
• 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
Q1 Bank-Only NIM of 5.6%
Yield on Assets (%)
Avg Loan Yield
Avg Bond Yield Avg CoF
Cost of Funds (%)
QQQQQQ 4 1 2 3 4 4 1 2 3 4 2 3 4 1 2 3 4 1 2 3 4 '11 1 '12 '12 '12 '12 '13 '14 '14 '14 '14
** 4Q 15 / 3Q16, If we adjust the interest income from special repayment last year, NIM would be 6.5% / 6.0% , YoA would be 9.5% / 8.9%, Average FX Loan Yield 4.2% / 4.2%
Greater Detail On Fee-Based Income
Q-o-Q Non-Loan Related Fees & Commissions
(10.2%) Opening L/C, BG & Cap. Market (Custodian & Trustee)
Administration Fees
12.2% Transfer, Retail Transaction
(13.1%) Credit Cards
(18.1%) Mutual Fund, ORI & Bancassurance
(21.5%) Payroll Package
(4.6%) Foreign Exchange Gains
(17.4%) Cash Recoveries
324.8% Others Income
Gains Fr Sale & Incr. in Value of Sec. & Gov. Bonds
(12.8%) Total Fee Based Income (As Reported)
(7.3%) % of Non Loan Related fees to total opr. income
1Q 18 Cost to Income Ratio of 43.4%
Quarterly Consolidated Operating Expenses & CIR
Breakdown of 1Q 2018 Operating Expenses
Personnel Expenses
Base Salary
Other Allowances
Post Empl. Benefits
4 Total Personnel Expenses
3 3 3 G&A Expenses
IT & telecoms
Occupancy Related
Promo & Sponsor
Transport & Travel
Goods, Prof. Svcs. & Oth.
Employee Related
3 3 3 3 3 3 4 3 Total G&A Expenses
Other Expenses
Total Operating Expenses
G&A Expenses
Personnel Expenses
Diversifying our Strength in Wholesale L ending…
Top 10 Industries in Large Corporate Lending Expansion Top 10 Industries in Middle Corporate Lending Contraction 1Q ’18 – 1Q’17 (Total Rp21.1Tn)
1Q ’18 – 1Q ’17 (Total –Rp11.0 Tn)
Mfg-F&B 4.60
Mining-Metal Ore 3.44 37%
Real Estate 3.19 -37%
Bus Serv 2.79 -14%
Mfg-P&P 1.01 50%
Real Estate
Water 0.95 #DIV/0
Mfg-P&P
Wholesale Transactions Driving CASA
Cash Management Users
Mandiri Cash Management*
Value (Rp Tn)
# of Trx (000)
Excluding Mandiri Transaction System
Consumer and Micro Are Key Retail Growth Drivers
Retail to Total Loans
Micro (Rp Tn)
Growth 1Q2018 150
Growth 1Q2018
Retail to Total Loans
57.5 YoY -11.3%
Tactically Growing Micro Banking..
Quarterly Micro Loan Balances by Type
Micro Loan Growth by Type
% to Total
Gov't Program (KUR)
YoY
Loan Type
Micro
Growth
Salary-Based Loan (KSM)
Loan
70.0 Micro Productive Loan
Government Program
(KUM)
61.3 (KUR)
Salary-Based Loan
(KSM)
Productive Loan
(KUM)
Total Micro Loan
…as well as Consumer Lending, which Rose 14.7% Y-o-Y
Quarterly Consumer Lending Balances by Type
Consumer Lending Growth by Type
Rp Tn
90.0 Others
% to Total
80.0 Auto Loans
YoY
75.0 1.2 Loan Type
Consumer
Credit Cards
Growth
Loans
70.0 Home Equity Loans
Others
Total Consumer Loans
Auto Loans
Credit Cards
Home Equity Loans
Mortgages
Total Consumer
Time Deposit Rates Fell 30 bps QoQ
Retail Deposit Analysis – Bank Only (Rp Tn) Average Quarterly Deposit Costs (%)
Rp Savings Deposits
FX Savings Deposits
Rp Demand Deposits
FX Demand Deposits
Rp DD CASA as % of total deposits
Rp Time Deposits
FX Time Deposits
Rp Savings
1 Q' 0.0% 4 1 2 3 4 1 2 3 4 1 2 3 4Q 1 2 3 4 1 2 3 4 1 2 3 4 1 12 12 12 12 '13
Strong Growth in E-Channel Transaction
Quarterly Transaction Value (Rp Tn)
# of Subscribers (Mn)
Debit Cards***
Mobile Banking
280 Internet Banking
Mobile Banking*
Internet Banking**
* incl. Mandiri Online Mobile App
*** # of issued Debit Cards
** incl. Mandiri Online Web
Retail Payment System Gaining Traction
Volume Mandiri Business
Fee Income from e-channel Tx (Rp Bn) Numbers of EDC
Saving Account (Rp Tn)
YoY Growth
Gross NPLs 3.3%, Coverage at 136%, Category 2 at 4.9%
NPL Movement - Consolidated
Category 2 Loans
4Q'17 1Q'18
Gross NPL Ratio
NPL Coverage Ratio
Wholesale (Rp Tn)
Retail (Rp Tn)
Special Mention/ Total Loans
Q1 2018 Total NPLs of Rp 20.6 Tn
Non-Performing Loan Movements (Rp Tn) – Bank-Only Movement by Customer Segment (Rp Bn)
Large Corp. Middle Corp. SME Micro Cons
4Q' 2017 UG to PL DG to NPL Payment Write-Offs Other
Non-Performing Loans by Segment
Large Corp.
Middle Corp.
* Excluding loans to other banks
1Q18 Net Downgrades of 0.61% On Loans
Total Loans
Net Upgrades(%) / Downgrades(%) #
1Q 2018 Details
DG to UG to Loan
1Q’18
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
NPL PL Background
Balance
% % Large Corp.
(Rp Tn)
- - Mdl. Corp.
1.97 3.02 0.16 3.87 1.13 1.07 0.14 1.33 1.47 1.55 0.08 SME
51.0 1.31 1.50 1.36 0.63 1.20 1.65 1.23 1.55 1.53 1.65 0.12 Micro
85.6 1.37 1.45 1.35 0.84 0.94 1.09 0.86 0.60 0.67 0.72 0.05 Consumer
Total
#% downgrades and upgrades are quarterly % figures
1Q18
red
.2 3 4Q17
ctu
tru
es 2Q17 R
g 1Q17
n .4
ei 4Q16
ter
2Q16
Af 11
1Q16
ing
3 .6 1 4Q15
or
.7 5 3Q15
erf
-P
.2 4Q14 to No s 0
on ad
3Q14 C ard
it
lli wngr
2Q14 d
0 .8 re C .
e xcl
.0 Tri 0 .6
Do
13.6 20.5 1Q '18
49 49 14.8 13.0 22.1 3Q '17
52 14.5 14.7 23.0 .9 4Q '17
48 15.1 11.0 22.6 .3 2Q '17
47 16.0 10.0 21.3 .2 Rp .2
47 15.5 11.1 20.5 .3 4Q '16 39 9.3 13.2 16.8 .1 3Q '16 34 8.9 11.2 13.8 .9 2Q '16
28 5.0 9.7 13.5 at 1Q '16
28 3.9 10.0 13.8 .4 4Q '15
Enhancing Synergies & Value from Subsidiaries
Syariah Banking
Investment Banking
Insurance
Niche Banking
Multi-Finance
Total Assets
Total Disbursement Rp 93 Tn
Bond Trading Volume
Total Assets
Total Loans
Rp 6.6 Tn Total Financing
Rp 44.3 Tn
Rp 28.4Tn
Rp 11.9 Tn
Net Interest Margin Rp 61.2Tn
Equity & FI Underwriting
Annual FYP
Net Interest Margin
2.9% Total Deposits
ROA Rp 82.6Tn
Equity Trading Volume
Rp 56.3 Tn
• Remains the leader in
• Penetrate Bank Mandiri’s syariah financing
• Expansion of business to
• Providing end-to-end bank • Enhancing operating
network and customer • Capital injection program
fully utilize current capital
assurance business
model
base to develop the over 3 years
base
• Continue to build cross-sell • Improving risk
multifinance segment with • Cross-selling syariah a strong focus on new 4 services to broad range of segments IT
• Cross-sell capital market
opportunities in various
management systems and
• Bancassurance products to wheel vehicles. • Improving productivity customers
products to Mandiri
Mandiri customers
• Refocus business toward
complete our suite of
higher fee income
consumer offerings
Bank Mandiri’s 2018 Corporate Guidance
2018 Target
1Q2018 Realization
Gross Loan Growth (YoY)
7.1% Low Cost Deposits
11.0% - 13.0%
Rp 497.2 Tn Net Interest Margins
Rp 590 Tn
5.8% Efficiency Ratio
5.7% - 5.8%
43.4% Gross NPLs
3.3% Cost of Credit
2.8% - 3.2%
2.0% - 2.2%
Operating Performance
Highlights
Large Corporate, Government & Institutions
Performance to Date: 1Q2018 (Rp Bn)
Strategies for 2018
1. Focusing on Anchor Clients and
penetrating through using of Transaction Banking
2. Account Plan implementation for top
76 Corporate Banking Customers.
3. Provide ‘one stop service’ solutions for
customer’s transactions and create
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
Treasury & Market
Performance to Date: 1Q2018 (Rp Bn)
Strategies for 2018
1. Implement client segmentation strategy for Treasury anchor and non-
5 anchor clients.
2. Increase retail coverage of fixed income and structured products.
3. Develop new FI client coverage model and implement segmentation strategy.
4. Revitalize overseas offices’ function 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.
Middle Corporate
Performance to Date: 1Q2018 (Rp Bn)
Strategies for 2018
1.Tighten risk management practices by centralizing big ticket loan approval from
regional office to head office
2.Focusing on clients within the value
chain / business ecosystem of our large corporate banking clients
3.Selectively growing the business to sectors and regions as stipulated in bank-wide portfolio guidance
Middle Corporate
Solid & Stable Source of
Expanding Scope of Distribution, 1Q 2018
Low Cost Funds
Loans = Rp 10.5 tn
Loans = Rp 3.0 tn
Loans = Rp 3.1 tn
Funds = Rp9,4 tn
Funds = Rp 4.6 tn
Funds = Rp 2.0tn
FX 7.77 9.00 -13.70%
Saving Deposit*
Total CASA
Total Funding
Java and Bali Loans = Rp 125,6tn Funds = Rp 42.4 tn
CASA Ratio = 69.47% Funding from Java & Bali = 72.54% of total funding
* Business Savings Product
Micro & SME:
Selectively growing our high margin business
Performance to Date: 1Q2018 (Rp Bn)
Strategies for 2018
1. Specialized sales team in Productive Loan (KUM) & Government Program (KUR)
2. Improving incentive scheme based on product profitability and loan quality
3. KUM profiling
4. Creating relationship
model, specifically on Salary-Based Loan (KSM) by approaching the management of the borrower’s
company
5. Widening the penetration of KSM products by using the Bank@Work Project
6. Simplify the SME loan processing
7. Adjust the manual of SME products
Small Medium Enterprise :
Solid & Stable Source of
Scope of Distribution, 1Q 2018
Low Cost Funds*
Loans = Rp 8.6 tn
Loans = Rp 4.3 tn
Loans = Rp 5.2 tn
1Q
1Q Growth
Product
Funds = Rp 19.2 tn
Funds = Rp 7.1 tn
Funds = Rp 8.0 tn
Medan Pematang siantar
Total CASA
Jambi Banjarmas Tangerang
B.Lampung
Bandung Semarang Denpasar
Java and Bali Loans = Rp 27.0 tn Funds = Rp 115.1 tn
Branch Class that covered SME Customers
CASA Ratio = 83.3%
A.1 : 36
B.2 : 68
Funding from Java & Bali = 77.03%
A.2 : 47
B.3 : 70
of total funding
Kredit SME Kebun pada tahun 2018 dipindahkan ke Kantor Pusat sebesar 5.9Tn
B.1 : 37
B.4 : 16
Consumer Banking:
Significant growth in spread and fee income
Performance to Date: 1Q2018 (Rp Bn)
Strategies for 2018 Mortgage:
1. Still using Risk-Based Pricing relative to
the market
2. Automation in notifying loan agreement
to the borrowers
3. Managing the onboarding borrowers by the branches
4. Sharpening sales model in order to
managing both primary and secondary
market
Auto:
1. Marketing program with appointed RAC
2. Using disbursement of Auto Loan as an element of KPI, separated for Region/Area/Branch Offices’
3. Campaigning the use of Mandiri Mobile Apps to increase the branch’s referrals
4. Piloting e-Marketplace (the digital platform for Auto Loan marketing)
InHealth – Opportunity to Increase Fee Income and Contribute to the Insurance Portfolio
Leveraging our institutional, corporate, &
commercial customers
We have over 700 institutional, 300 corporate, and 1,700
commercial customers with the potential to become members
50 of InHealth
0 Providing solutions through our banking
1Q17 1Q18
products to InHealth healthcare provider
Profit (Rp Bn)
GWP (Rp Bn)
• InHealth has 6,880 healthcare providers and recorded over
Rp 454 Bn in claims year to date 2018
• Bank Mandiri will leverage the hospital network as InHealth’s
partner to increase transactions through enhanced cash
management products
• Bank Mandiri also will provide retail packaged products for
all the doctors as InHealth’s partner
Cross-selling Mandiri products to InHealth
members
InHealth earned premium payments of Rp 459Bn in 2018 year
to date from clients. Going forward, Bank Mandiri will
encourage the use of cash management products through
1Q171Q18
Bank Mandiri ’s distribution channels and cross sell other
Total Member
# of Providers
products to over 1.5 Mn InHealth members.
41
se
t Qu
al
ity
Issues
Ne
In
ter
es
tM
ar
gi
Cos
t of
Fund
Yo
CoF
IM
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%
7.4%
6.9%
6.4%
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
3Q'17
4Q'17
1Q'18
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%
11.4%
11.5%
11.0%
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%
3.5%
3.6%
3.4%
Mandiri Tunas Finance: Total Financing YTD of Rp 6.6 Tn
Total Disbursement and the Breakdown for Joint Financing and Non JF
Breakdown of Financing
1Q 2018 Performance
1Q
1Q
Change
Used Car
Non JF
Loans (Rp Bn)
43 6 99 Net Income (Rp Bn)
Approval Rate
71 64 5 162 70 68 36 Disbursement (Rp Bn)
Supporting Materials
2016-2020 Bank Mandiri Corporate Plan – Accelerate In The Growth Segments
Product Focus
Key initiatives
1. Improve processing speed
1 Mortgage
2. Tapping higher ticket size
3. Target developer relationships
1. Streamline segment split between MTF and MUF
Loan Growth
2 Auto Loan
Engine
2. Utilize existing Mandiri branch network for growth
1. Combine consumer personal loans and micro
3 Personal Loan & Micro KSM
salary-based loans
2. Leverage on micro’s distribution footprint
3. Tap into our payroll customer base
1 Dominate payroll segment using Bank@Work for corporate and commercial customers
Funding Engine
2 Improve transaction banking offering to tap cash management for anchor clients’ value chain
Bank Mandiri Remains on Track to B ecome Indonesia’s Most Admired Financial Institution
# of Accounts
# of Outlets • Deposit 23.05 Mn
# of new Accounts (YTD)
2,633 Branches • Loan 1.76 Mn
• Deposit 1.94 Mn
3,390 Micro Outlets • Loan 178,016 (3) including mortgage
17,429 ATMs accounts of 147,192
Cash Management e-Channel Tx
# of Cards Issued
• 22,369 Customers • 35.1Mn Trx in
• 752 Mn Trx YTD
• Credit
4.80 Mn
• -3.2% YoY Growth
• Debit 17.71 Mn 2018 • Prepaid 14.0 Mn (2)
Subsidiary Income
Retail Loans
Alliances
• Rp 216.4 Tn • Bank Guarantee: Rp9.3Tn
• Total Rp 647Bn
• 35.2% of Total Loans • ForEx: USD3.7Bn
• Sum of income from
11 subsidiaries
• Trade: USD7.8Bn
(11.0% of EAT)
(1) Small Business, Micro and Consumers (2)
Excluding Mandiri Transaction System (3)
Incl. KSM Centre, MMU Cash outlet and MobilMU
We are Preparing For Our Next Transformation
Market Cap: IDR 251.4 Tn Revenue Market Share: 12.8% ROE: 21.0%
Market Cap: IDR 136.9 Tn
Gross NPL: 2.15%
Revenue Market Share: 13.4% Net Profit: IDR 9.22 Tn
ROE: 24.24%
Indonesia’s Best
Gross NPL: 2.42%
Market Cap: IDR 60 Tn
Asean Prominent
Revenue Market Share: 8% Net Profit: IDR 2.41 Tn
Bank
ROE: 10%
Gross NPL: 16.3%
3 rd Transformation
• Business transformation
• Developing integrated Human
2 nd Transformation
Capital & IT • Focusing on non-organic growth
• Wholesale transaction banking • Retail payment & deposits
1 st Transformation
• Retail financing
• Building a winning organization • Delivering tailored proposition
for priority segments • Building alliances
• Strengthening risk management
…But We Need to Consider Growing Beyond the Bank
M&A
Finding Business Partners
Bank
Our Deal size has continued
& Group
to move higher
• JV with AXA (AMFS). Gross Written
• BSHB Rp 40bn (2008)
Premiums Rp1.5tn. +27% YoY
• MTF Rp250 bn (2009) • Revenue YTD (Bank Only):
• JV with Tunas Ridean (MTF). Total
• Inhealth Rp 1.3 tn (2013) • Profit from Subsidiaries:
Rp17.2Tn (2.3% YoY)
Financing Rp4.1tn. 15% YoY
• InHealth partner BPJS
Rp647Bn (11.0% of EAT) • 1Q Revenue Wholesale vs
Retail : Rp 7.7Tn vs Rp 9.5Tn
1Q 2018 PPOP increase by 6.8% YoY
1Q 2017
1Q 2018
Rp Bn
Rp Bn
Increase 6.8%
Pre-provision Premium Income
Net Interest &
Fee-Based Income Overhead Expenses
Pre-provision
Net Interest &
Fee-Based Income Overhead Expenses
& Others
Operating Profit
Premium Income
& Others
Operating Profit
Notes :
1. Fee based income excluding gain on sale & increasing value GB & securities
2. Overhead expenses + others excluding provisions
Committed to Improving Shareholder Value
Reduce Cost of Funds
Business Strategy
Improve Assets Yield Diversify into Fee Income
Competitive. sustainable
Reduce Provision/Loan
returns. with
Support Strategy
Improve Cost Efficiency
above-average rates of growth
Leverage on cash generator
Strategic
(wholesale) to accelerate growth
Alliances
Diversity into fee income
…and Offer Innovative Payment Solutions
Pre-Paid Transaction Volume (000s)* Pre-Paid Transaction Value (Rp Mn)* #Pre-Paid Card (000s)
1 2 2 1 2 3 4 5 4 4 3 48 89 84 12 86 14 447 381296328 406 1 53 1 543 5 48 49 50 58 4 59 64 84 85 85 85 Q 1 Q 2 3 Q Q 4 1 Q 2 Q Q 3 Q 4 1 Q 2 Q 3 Q 4 Q 1 Q 2Q 3 Q 467 Q 4 1 Q 2 Q 3 Q Q 4 Q 1 Q 2 3 Q Q 4 1 Q 2 Q Q 3 4 1 20 30 1 42 30 41 50 4 5 Ma Ju Se De Ma Ju Se De Mar Ju Se De Ma Ju Se De Ma Ju Se De Ma Ju Se De Ma Ju Se Q De Q Q 1 0000000 Q 2 3Q 4 Q 1 Q Q 2 Q 3 4 Q 1 Q 2 Q 3 Q 9 15 4 Q 1 Q 2 Q Q 3 Q 4 Q 1 2 Q 3Q 4 Q Q 1 Q 2 3 Q 4 Q Q 1 Q 2 3 Q Q 4 1 Q n p n p n p n p n p n p n p
11 r- -11 -11 11 12 r- -12 -12 12 -13 -13 -13 13 14 r- -14 -14 14 r- 15 -15 -15 15 16 r- -16 -16 16 17 r- -17 -17 17 *volume for quarter
*volume for quarter
Strong Microfinance Growth
51
Outstanding – Rp Tn
Booking Volume – Rp Tn
Asset Spreads(%)
Mandiri Microfinance Outstanding Mandiri Market Share
Our Growth Remains On Track
Rp Billion
12.90% 33.5% Gross NPL Ratio
3.46% (3.5%) Net NPL Ratio
20,640 49.5% Subsidiary EAT
*) CAGR based on EAT 2006 Rp. 238.28 bn
Building a Strong Savings Deposit Franchise…
Savings Deposit Growth
Transaction channel growth
Savings Deposits (Rp tn) As % of Total Deposits
Withdrawal / Inquiry
National Share of Savings Deposits (%)
Avg ATM Daily Vol (000)
Quarterly Call Center Trans. (000)
Quarterly Mobile Trans. (000)
Regulation Summary: Capital Based on Risk Profile. Business Activity & Branch Networking
Bank Mandiri’s Capital Requirement Based on our Risk Profile Bank Mandiri Capital Requirment
Risk Profile
CAR Min
“BUKU”
Tier 1 Capital
1 – Low
1 < Rp 1 Trillion
2 – Low to Moderate
Bank Mandiri is under the “LOW
9% - < 10%
2 Rp 1 Trillion - < Rp 5 Trillion 3 – Moderate
to MODERATE” risk profile
10% - < 11%
3 Rp 5 Trillion - < Rp 30 Trillion 4 – Moderate to High & 5 - High
Bank Mandiri is under “BUKU 4”.
11% - 14%
Minimum 70% loans and financing to the productive sector required to be
4 ≥ Rp 30 Trillion
met at the end of June 2016.
Branch Networking by Zone
Branch
Sub Branch
Cash Office
Continuous End to End Improvement in the Micro Business
Origination & Targeting
Maintenance & Review
Collection
• Scorecard Refinement •Training & Capacity
Operational Risk
Development of
•1,444 MKS/MMC/Back
Managers
Office/Other Position and 247
Building New
•MKA Revitalization (focus Managers on credit analysis &
•FIN-1 Collection System
Business
•Biweekly RTTA (Risk.
verification)
Threshold. Trigger & Action
•Change in Organization
•Loan Factory for Fixed
Plan) Review Forum
•Crash Program for NPL
•3,720 EDC (hand held)
Income Loan
•Mobile Sales and
debtors settlement
rolled out
•Savings
Maintenance System for MKS
•Early Warning System
•Incentive Scheme
Development
•Pension Loans
Refinement
•Joint Cooperation with Mandiri
•Post Transaction Control
AXA General Insurance (MAGI)
(Welcome Call)
•Joint Cooperation with Bank Syariah Mandiri (BSM) – for Gold Pawning
56
Dr
ove
Rp
10
.02
Tn
in
Transacti
on
QR
ec
ei
vab
les
Tot
al
ar
Quart
erl
Sal
es b
Typ
eo
Tr
an
sact
io
Rp
Bn
Strengthening Risk Management & Monitoring System
Wholesale Customer by Rating Summary of Risk Management Initiatives
High Risk (Rating C- G)
• Wholesale Transaction: Optimize credit decision process by focusing on quantitative factors of
Medium Risk (Rating BBB – B)
analysis. redefining clear role of risk team . and
Low Risk (Rating AAA – A)
aligning RM Organization into business expansion
Credit
• High Yield Business: Assign dedicated team. set up
loan factory. enhanced business process (incl. tools.
monitoring & collection system. policy )
• Optimize capital by implementing ERM & VBA
• Consolidate risk management of subsidiaries
• Development of risk measurement system for derivative & structured product (Summit)
• Implement Market Risk Internal Model
• Intraday Limit Monitoring
Market
• Enhance Policy & Procedure for Treasury & ALM
• Enhance FTP (Fund Transfer Pricing) method
• Develop liquidity stress test & safety level
• Develop measurement of capital for IRBB
• ORM implementation in all unit. incl. overseas offices
& subsidiaries
Operational
• Bring Op. Risk top issues into Management
• Review Op. Risk on new procedures & new products
Key Quarterly Balance Sheet Items & Financial Ratios
IDR billion / % (Cons)
Gross Loans
7.13% Government Bonds
2.71% Total Assets
6.17% Customer Deposits
5.22% Total Equity
8.81% RoA – before tax (p.a.)
33.98% RoE – after tax (p.a.)
30.69% Cost to Income Ratio
1.69% NIM (p.a.)
1.90% Gross NPL / Total Loans
-16.58% Provisions / NPLs
1.98% Tier 1 CAR *
-0.75% Total CAR incl. Credit, Opr & Market Risk*
-0.99% EPS (Rp)
-28.23% Book Value/Share (Rp)
* Bank Only
59
.2
%Y
-o
-Y
to
Rp
,098
Tn
Additional Factors
Aggregate of Rp 62,199 Tn (US$ 4.518 Bn) in written-off loans as of end-of March 2018, with significant recoveries and write back on-going:
Rp 0.918 Tn (US$94.5m)
Rp 0.683 Tn (US$68.8m)
Rp 1.2 Tn
Q3’13: Rp 0.630 Tn (US$54.4m)
Rp 1.08 Tn
Q4’13:
Rp 0.845 Tn (US$69.4m)
Rp 0.818 Tn (US$ 83.2m)
Q1’14:
Rp 0.552 Tn (US$48.7m)
Rp 3.408 Tn (US$ 378.5m)*
Q2’14:
Rp 0.765 Tn (US$64.5m)
Rp 1.531 Tn (US$ 249.3m)
Q3’14:
Rp 0.566 Tn (US$46.4m)
Rp 2.309 Tn (US$ 211.8m)
Q4’14:
Rp 0.803 Tn (US$64.8m)
Q1’15:
Rp 0.553 Tn (US$42.4m)
Recoveries Q4 ‘09:
Rp 0.775 Tn (US$ 82.5m)
Q2’15:
Rp 0.646 Tn (US$48.5m)
Q1 ‘10:
Rp 0.287 Tn (US$ 31.6m)
Q3’15:
Rp 0.751 Tn (US$51.3m)
of Written
Q2 ‘10:
Rp 0.662 Tn (US$ 73.0m)
Q4’15
Rp 1.089 Tn (US$79.0m)
off Loans Q3 ‘10:
Rp 0.363 Tn (US$ 40.7m)**
Q1’16
Rp 0.570 Tn (US$43.0m)
Q4 ’10:
Rp 1.349 Tn (US$149.7m)
Q2’16
Rp 0.645 Tn (US$48.9m)
Q1 ‘11:
Rp 0.468 Tn (US$53.8m)
Q3’16
Rp 0.833 Tn (US$63.8m)
Q2 ‘11:
Rp 0.446 Tn (US$51.9m)
Q4’16
Rp 1.145 Tn (US$85.0m)
Q3 ‘11:
Rp 0.508 Tn (US$57.8m)
Q1 ’17
Rp 0.686 Tn (US$51.5m)
Q4 ‘11:
Rp 0.78 Tn
(US$86.1m)
Q2’17
Rp 0.886Tn (US$66.5m)
Q1 ’12:
Rp 1.647 Tn (US$180.1m)
Q3 ’17
Rp 0.965Tn (US$71.7m)
Q2 ’12:
Rp 0.721 Tn (US$76.8m)
Q4’17
Rp 1.199Tn (US$88.4m)
Q3 ’12:
Rp 0.489 Tn (US$51.1m)
Q1’18
Rp 0.965Tn (US$70.1m)
Q4 ’12:
Rp 0.885 Tn (US$91.8m)
* including the write-back of RGM loans totaling Rp 2.336 Tn ** Including the write back of Kharisma Arya Paksi loans totaling Rp 0.124 Tn and Gde Kadek Rp 0.59Tn.
Summary Quarterly Balance Sheet 1Q 2018 – 1Q 2017
Summary BS
% Total Assets
Rp (tn)
Rp (tn)
Rp (tn)
Rp (tn)
Rp (tn)
21.03 24.27 21.03 33.49 21.21 -0.85% Current Acc w/ BI & other banks
71.81 62.52 68.84 75.64 62.67 14.58% Placement w/ BI & other banks
60.13 74.65 76.59 58.82 73.77 -18.49% Securities Net
63.79 59.61 60.87 59.46 58.63 8.80% Government Bonds
98.34 102.54 2.71% - Trading
4.35 3.49 3.12 3.23 3.07 41.53% - AFS
86.88 89.07 86.24 84.17 89.99 -3.46% - HTM
14.10 10.85 10.84 10.94 9.47 48.85% Loans
656.21 7.13% - Performing Loans
630.1 7.86% - Non-Performing Loans
23.38 25.27 25.72 26.07 26.11 -10.47% Allowances
-34.76 -8.74% Loans – Net
621.46 8.02% Total Deposits – Non Bank
731.12 5.22% - Demand Deposits
178.12 4.56% - Savings Deposits
287.52 8.14% - Time Deposits
265.47 2.50% Shareholders’ Equity*
Summary Quarterly P&L 1Q 2018 – 1Q 2017
Y-o-Y Q-o-Q Summary P&L
Rp (Bn)
Rp (Bn)
Rp (Bn)
r (%) r (%)
Av.Assets*
Av.Assets*
Av.Assets*
-1.4% -5.0% Interest Expense
Interest Income
-10.2% -11.3% Net Interest Income
3.2% -2.0% Net Premium Income
Net Interest Income & Premium Income
5.2% 937.1% -1.7% Other Non Interest Income
1.2% -9.8% *Foreign Exchange Gains – Net
*Other Fees and Commissions
-1.2% -17.4% *Gain from Incr. in value of sec & sale of
Gov.Bonds
Total Non Interest Income
13.6% -8.2% Total Operating Income
6.5% -3.8% Provisions, Net
-29.0% 2.7% Personnel Expense
8.6% -11.3% G&A Expenses
5.7% -17.6% Other Expenses
5.6% -3.9% Total Expense
7.0% -13.3% Profit from Operations
42.3% 6.5% Non Operating Income
13.3% -134.4% Net Income Before Tax
42.4% 5.0% Net Income After Tax
Breakdown of Interest Income & Interest Expense
Interest Income
Rp (Bn)
Rp (Bn)
Rp (Bn)
Loans
-2.5% Government bonds
-7.6% Marketable Securities
7.5% Consumer financing
5.4% Placement at BI and other banks
-74.5% Syariah Income
Interest Expense
Rp (Bn)
Rp (Bn)
Rp (Bn)
Time Deposits
-5.7% Current Account
4.1% Securities issued
1.4% Subordinated loan
1 -6.3% Others
Three Options to Pursue in Recap Bonds Resolution
• BI will gradually replace their use of SBI for market
Bank operations with SUN Indonesia
• BI could buy the Recap bonds gradually and this
includes potential purchases of SUN VR
• The Ministry of Finance will consider to buyback the
SUN VR
Ministry of Finance
• Potential for debt switching with a different tenor of
fixed rate bonds.
• Bundle the recap bonds with assets creating an asset
backed security and sell it to the market.
Market Sale
• Sell the bonds. borrowing FX and use the liquidity to
increase lending.
Government Bond Portfolio
Government Bond Portfolio by Type and Maturity (Rp 105,316 Bn) Bonds by Rate Type & Portfolio as of December (Rp 105,316 Bn)
Maturity/ Trading Portfolio
Available for Sale
Held to
Rp Bn Nominal MTM Nominal MTM Maturity
80 Fixed Rate
70 Variable Rate
Fixed Rate Bonds
< 1 year 50 268 268 7,408 7,676 7,006
1 - 5 year 472
5 - 10 year 2,223
> 10 year 1,171
Sub Total 4,133
* Mark to Market impacts Profit # Mark to Market impacts Equity
Variable Rate Bonds ^ Nominal value
1 Q’18 Government Bond Gains/(Losses) (Rp Bn) < 1 year
1 - 5 year
4Q’16 1Q’17 2Q’17 3Q’17 4Q’17 1Q’18
Realized
5 - 10 year
Gains/Losses 171.88 167.34 328.25 198.07
> 10 year
on Bonds
Sub Total
Unrealized
Gains/Losses -53.15 70.78 16.67 46.71 -18.70 -43.14
on Bonds
Total 4,133
Total
Ex-Recap Bond Portfolio. March 2018 – Bank Only
Fair Value Maturity
Total Available Total Series
Total Trading Total Available For
Total Held To
Marked To
Sale Port.
Maturity Portfolio Market (%)
Trading
For Sale Port. Investment
Port. Fixed Rate
Port.
- - Variable Rate
Sub Total
7 VR0027
1,801,917 - 8 VR0028
3,554,801 - 9 VR0029
3,426,096 - 10 VR0030
5,987,068 - 11 VR0031
29,758,772 - Grand Total
Sub Total
29,758,772 (Stated in Rp Millions)
Total Nominal Value
30,017,523 Total Fair Value
Bank Mandiri Credit Ratings
Moody’s (April 2018)
Fitch Rating (September 2017)
Outlook
BBB- Senior Unsecured Debt
STABLE
Issuer Default Rating
AAA(idn) Bank Deposit
Baa2
National LT Rating
F1+(idn) Counterparty Risk Assessment
Baa2/P-2
National ST Rating
Baa2(cr)/P-2(cr)
Viability Rating
bb+
Support Rating Floor
BBB-
Pefindo (June 2017)
Standard & Poor’s (December 2017)
Corporate Rating
STABLE LT General Obligation
STABLE
Outlook
idAAA
Issuer Credit
BB+
Sovereign Rating
BBB-
Corporate Actions
Net Profit for the financial year of 2017 of Rp20,639,683,141,139.5 was distributed as follows:
• 45% or Rp9,287,857,413,512.78 for the annual dividend • Total Dividend Payment of Rp199.02552 per share
Schedule :
a. Cum Date:
Regular and Negotiated Market:
March 28, 2018
Dividend
Cash Market:
April 3, 2018
b. Ex Date:
Payment &
Regular and Negotiated Market:
March 29, 2018
Stock Split
Cash Market:
April 4, 2018
c. Recording Date:
April 3, 2018
d. Payment Date:
April 20, 2018
T he Company’s Nominal Stock Split from Rp 500 per share to Rp250 per share and amendment of Article of Association related with the Company’s Nominal Stock Split.
1Q 2018 Movement in Category 1 and 2 Loans
Category 1 Loan Movements (Rp Bn) – Bank Only Category 2 Loan Movements (Rp Bn) – Bank Only
1Q 2018 Loan Detail: Collectability by Segment
Loan Profile: 1Q Collectability (%) by Segment Loan Profile: 1Q Collectability (Rp bn) by Segment Bank Only
Bank Only
Corp Comm
Small
Micro
Cons
Corp
Comm Small
Micro
Cons 70
71
l*:
Qua
rterl
by
Day
Past Due
an
Only
Q4'14
Q1'15
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Q1'18
n Value
Quar
ter
ly
NPL
St
ock
In
ter
es
DPD
an
Only
Q1'10
Q2'10
Q3'10
Q4'10
Q1'11
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q3'13
Q4'13
Q1'14
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
Q3'16
Q4'16
Q1'17
Q2'17
Q3'17
Q4'17
Q1'18
n Value
xc
lud
ing
Mi
cr
o n su
e r Lo
0 5 % 10 % 15 % 20 % 25 % 30 % 35 % 40 % 45 % %
Cu
rr
e n t (%
< 30
ay
OD
Rp722bn in Loans were Restructured in 1Q ‘18
Restructured Loan Movement 2005 - 1Q2018
Loans by Restructuring Type in 1Q 2018
IDR bn Others#
Write-Offs Repayments Restructuring Balance
Maturity extension
Maturity
w/other
19 20 20 16 17 16 14 13 11 12 13 25 31 35 42 42 42 43 46 44 w/reduced
2005 A dd D e 2006 A dd e D 2007 dd A D e 2008 A dd D e 2009 A dd D e 2010 A dd e D 2011 A dd D e 2012 A dd e D 2013 A dd e D 2014 A dd e D 2015 A dd D e Q A D Q A D Q A D Q A D Q A D Q A D Q A D Q A D Q
(Rp billions) Q3 ’16 Q4 ’16 Q1 ’17 Q2 ’17 Q3 ’17 Q4 ’17 Q1 ’18
*Other Restructuring includes reduction of interest rates, rescheduling of
unpaid interest & extension of repayment period for unpaid interest
Restructured
Others# includes partial payments, FX impacts, and fluctuation in
Working Capital facilities
Collections
Improving Asset Quality and Portfolio Management
Key Areas
Remarks
• Restructuring Unit
Reorganize SAM
Focus on preventing increasing NPLs. To solve temporary problems in business’s and take the
Group
• Recovery Unit
necessary steps for loan restructuring.
Transfering
• Transfering Transfering problem loans from business units to SAM group to be handled more effectively. We will
Problem Loans
Problem Loans
continue to review for more loans to transfer.
Resetting Risk
• Update Risk
Help to reset risk assessment criteria to support
Assessment
Assessment Criteria
business units in improving the loan origination
Criteria
process.
• Loan Monitoring
Increase
Monitoring
Preventiative actions to improve asset quality by
• Early Warning
Frequency increasing standardized process and upgrading risk
System
tools
• Incentives for Loan
• Achieve higher cash recovery than last year
Intensify Cash
Repayment
• Accelerate loan repayment by writing off interest
Recovery
• Auction Frequency
and penalty
• Asset Marketing Unit
• Identify targeted buyers for specific assets
Loan Portfolio Sector Analysis, 1Q 2018
Palm Plantation & CPO F&B Manufacturing Energy & Water Financial Services Metal Manufacturing Infrastructure Construction Fertilizer Manufacturing Metal Material Mining
Energy & Water
Non-Infrastructure Construction Water Transportation Government
no ti
Wholesale Trading
uc tr
ns
F&B Trading
Co
Property
ture % 3 uc
Textile Manufacturing
* Excluding Micro & Consumer Loans Only
wth
or
tw
ork Gr e
or
tw
-Li
tw A 4,996 2009 TM A 12,666 2009
TM
Ne
on
buti
stri
2,505 3Q'16
1Q 2018 Loan Detail*: Downgrades to NPL
Loan Profile: 1Q NPL Downgrades Only (Rp 3,039 Bn) Bank Only The downgrade to Non-Performing
Other Mfg
Loan in 1Q totaled Rp 3,039Bn. Of these
Bus Serv
loans:
SME
63% were more than 90 days overdue
Trad-Ret
on interest payments
Others
72.2% came from our Middle
>90 Days
Corporate Portfolio
Mfg-Chem
Largest downgrades by sector:
WC
Construction
Raw Material Manufacturing
Distribution Trading
Mfg-RawM
Mdl. Corp
99.9% were IDR loans
87.5% were Working Capital loans.
61-90 Days
31-60 Days
Export Current
0% * Excluding Micro & Consumer Collect.
Int. Aging
Sector
Currency Purpose
Segment
1Q 2018 Loan Detail*: Non-Performing Loans
Loan Profile: 1Q Non-Performing Loans Only (Rp 17,804 Bn) Bank Only
NPLs totaled Rp 17,804 Bn in 1Q.
Of these NPLs in 1Q:
SME
60% were more than 90 days
overdue on interest payments
Other Mfg
83.4% are to Middle Corporate
Constr
5 Mining-Oil &
customers
>90 Days
Gas Trad-Ret
74.8% are Working Capital loans and
22.7% are Investment loans
Mfg-F&B
Primary sectors are:
Trading Distributions
Rp
Mfg-Chem
Mdl. Corp
Raw Material Manufacturing
Chemical Manufacturing
61-90 Days
WC
31-60 Days
94.3% are Rp loans
0% * Excluding Micro & Consumer Collect.
Lrg. Corp
Int. Aging
Sector
Currency Purpose
Segment
1Q 2018 Loan Detail*: Downgrades to Cat. 2
Loan Profile: 1Q Downgrades to Cat. 2 Only (Rp 5,734 Bn) Bank Only Rp 5,734 Bn loans were downgraded to
Category 2 in 1Q. Of the Special Mention
Loans downgraded:
SME
61+ Days Other Trading
2016-Current
74.5% are from Middle Corporate and
25.5% are from SME loan
Mfg
18% are less than 30 days overdue
Plantations
and 32.5% are current in interest
31-60 Days
payments
Trad-Ret
Primary sectors downgraded are:
Business Service Construction
Retail Trading
Constr
Mdl. Corp
2013-2015
1 Day
96% are Rp loans
84% are Working Capital loans
Current Bus Serv
2010-2012
0% * Excluding Micro & Consumer
2005-2009 2000-2004
Segment Days Aging Sector
Currency Purpose Origin Year
1Q 2018 Loan Detail*: Category 2 Loans
Loan Profile: 1Q Category 2 Loans Only (Rp 18,845 Bn) Bank Only Rp 18,845 Bn loans were in Category 2
in 1Q. Of these Special Mention loans:
SME
61- 90 Days Other Mfg
75.8% are to Middle Corporate
Bus Serv
Invest
31-60 Days
customers
Trad-Ret
65.7% are current or 1 day
overdue, with an additional 9.8%
1 Day
less than 30 days overdue in interest
Trad-Distr
payments
2013-2015
Constr
Primary sectors in Category 2 are:
50% Mdl. Corp
Chemicals Manufacturing Mass Transportation
Business Service
80% are Rp loans
2010-2012
71.4% are Working Capital loans
Mass Trans
66.9% were Category 2 in 4 Q ‘17
Lrg. Corp
0% * Excluding Micro & Consumer
2000-2004
Segment Days Aging Sector
Currency Purpose Origin Year
1Q 2018 Loan Detail*: Upgrades to PL
Loan Profile: 1Q Upgrades to PL (Rp 182.2 Bn) Bank Only Corporate, Commercial & Small
Business loans upgraded to PL in 1Q
totaled Rp 182.2 Bn. Of these loans:
Trad-Ret
65.8% are to Middle Corporate
SME
customers
Roads & Bridge
98.8% upgraded loans originated later
than 2010
Largest upgrades by sector:
Metal Manufacturing
Roads and Bridges
Retail Trading
100% are Rp loans
Mdl. Corp Mfg-Metal
94.7% are Working Capital loans; 5.2%
were Investment loans
1 0% * Excluding Micro & Consumer Program
Currency Purpose Origin Year
1Q 2018 Loan Detail*: Performing Loans
Loan Profile: 1Q Performing Loans Only (Rp 431,432 Bn) Bank Only Rp 431,432 Bn in Corporate, Commercial
& Small Business loans were performing
Business Other Trading
in 1Q. Of these performing loans:
59.3% are to Large Corporate
Constr
customers & 29.4% are to Middle
Mdl. Corp
2016-Current
Corporate customers
97.5% originated since 2005
Primary sectors are:
Mfg-Chem
Plantations
Electricity
Other Manufacturing
Mfg-F&B
Business Service
RP
77% are Rupiah loans
Bus Serv
2013-2015
Lrg. Corp
46.5% are Working Capital loans;
37% are Investment loans
WC
Other Mfg
2010-2012
Plantations 2005-2009
0% * Excluding Micro & Consumer
Currency Purpose Origin Year
1Q 2018 Loan Detail*: Restructured Loans
Loan Profile: 1QRestructured Loans Only (Rp44,542 Bn) Bank Only
Of the remaining Rp 44,542 billion in
31-60 Days Mining
restructured wholesale loans in 1Q :
5 Trad-Imp
73.1% are Performing
Mfg-F&B
Fx
4 Mfg-Metal
Lrg. Corp
77% of Restructured Loans are
current in interest payments
Primary sectors are:
Bus Serv
Chemical Manufacturing
60% Plantations
Trad-Distr
2 Current
Raw Material Manufacturing
Others
72% are Rp loans
Mass Trans
50.8% are Working Capital loans
67.9% are to Middle Corporate
Mfg-RawM
Rp
customers
Mdl. Corp
Mfg-Chem Syndication
<30 Days
* Wholesale Loans Only
Collect.
Int Aging
Sector
Currency Purpose
Segment
1Q 2018 Loan Detail*: Rupiah Loans
Loan Profile 1Q Rupiah Loans Only (Rp 348,569 Bn) Bank Only
Rp 348,569 billion in loans were Rupiah
Export
3 Mfg-F&B
Consumer
denominated in 1Q. Of the Rupiah
Loans in 1Q:
Trans Trad-Ret
95.2% are performing loans, with
31-60 Days
4.3% in Category 2
60.5% of Category 2 loans are
Mdl. Corp
current in interest payments
Primary sectors in Rupiah loans are:
Constr
Plantations
Other Manufacturing
1 Others
Business Services
49.3% are Large Corporate loans
Bus Serv
54.5% are Working Capital
WC
Lrg. Corp
loans, 35.2% Investment loans
Other Mfg
Plantations 2005-2009
0% * Excluding Micro & Consumer
2000-2004
Collect.
Int. Aging
Sector
Segment Purpose Origin Year
1Q 2018 Loan Detail*: FX Loans
Loan Profile:4Q FX Loans Only (Rp 100,667 Bn) Bank Only
Rp 100,667 Bn in loans were FX
denominated in 1Q.
31-60 Days
Mdl. Corp
Of the FX Loans in 1Q:
Mass Trans
<30 Days
Mfg-RawM
99% are performing loans
86.3% of Category 2 loans are
Other Mfg
current in interest payments
Primary sectors in FX loans are:
F&B Manufacturing
Others
Metal Ore Mining
WC
Oil & Gas Mining
1 Plantations
Current
Lrg. Corp
84.2% % are Large Corporate loans
Soc Serv
40.1% are Investment loans; 28.2%
Mining-Oil &
are Syndication loans
Gas 2013-2015
Mfg-F&B 2005-2009 2000-2004
0% * Excluding Micro & Consumer Collect.
Int. Aging
Sector
Segment Purpose Origin Year
1Q 2018 Loan Detail: Large Corporate Loans
Loan Profile: 1Q Corporate Loans Only (Rp 265,546 Bn) Bank Only
Rp 265,546 billion in loans were in the
Corporate portfolio in 1Q. Of the
Other Mining
Corporate Loans in 1Q :
Roads & Bridge
Syndication
Soc Serv
Fx
99.7% are performing loans, with
Mining-Metal
0.8% in Category 2
100% Category 2 loans are current in
Current Year
interest payments
Trading
Primary sectors in Corporate are:
Invest
Bus Serv
Plantations
1 Current
Food & Beverages
Other Mfg
Manufacturing
Business Services
Electricity
Rp
67.0% are Rupiah loans
2013-2015
38.9% are Investment loans; 37.9%
Mfg-F&B
WC
are Working Capital loans
2010-2012
Plantations 2005-2009
Int. Aging
Sector
Currency Purpose Origin Year
1Q 2018 Loan Detail: Middle Corporate Loans
Loan Profile: 1Q Commercial Loans Only (Rp 141,676 Bn) Bank Only
Rp141,676 Billion in loans were in the
Commercial portfolio in 1Q. Of the
Fx
4 Mfg-Text
Commercial Loans in 1Q:
89.5% are performing loans, with
2016-Current
Other Mfg
Invest
Year
10.1% in Category 2
Mfg-F&B
67.8% of Category 2 loans are
Current Other Trading
current in interest payments
Primary sectors in Commercial are:
Mass Trans
Plantations
Mfg-Chem
Trading Distribution
Rp
Business Services
89.3% are Rupiah loans
Bus Serv
WC
58.2% are Working Capital
61+ Days
loans, 37.9% are Investment loans
Others 2010-2012
31-60 Days
<30 Days 2000-2004
Collect.
Int. Aging
Sector
Currency Purpose Origin Year
1Q 2018 Loan Detail: SME Loans
Loan Profile: 1Q Small Business Loans Only (Rp 51,013 Bn) Bank Only
Rp 51,013 Bn in loans were in the Small
Program
Business portfolio in 1Q of the Small
Mfg
Consumer
Business Loans in 1Q:
61+ Days
Other Agri
95.9% are performing loans, with
Bus Serv
Other Trading
4.7% in Category 2
Invest
Current Year
22.6% of Category 2 loans are
31-60 Days
Plantations
current in interest payments
Primary sectors in Small Business
Household
Equip.
are:
Rp
Retail Trading
Distribution Trading
Household Equipment
2013-2015
WC
98.6% are Rupiah loans
Trad-Distr
66.7% are Working Capital loans
2005-2009 2000-2004
Int. Aging
Sector
Currency Purpose Origin Year
78.2% BCA
31% Maybank
85.6% BNI
40% BTN
o ti
87.5% Permata
92% Panin
a 88.1% Mandiri
to NP
103% Danamon
it
88.1% Maybank
103% CIMB Niaga
os
ons si
88.1% BRI
143% (%) Mandiri
rovi
to Dep
92.1% Panin
148% BNI
ve to Peers
of
93.8% Danamon
191% BCA
Loan
ti
191% ati Permata
94.7% CIMB Niaga
103.1% BTN
196% BRI
Rel
2.2% g CIMB Niaga
Permata
1.9% n Danamon
ioni
CIMB Niaga
1.7% t) Permata
ver
th
is
Panin
(Ne
1.7% BTN
ow
Gr (%)
ti
Mandiri
a (%)
1.1% Mandiri
2017 NPL
0.9% Loan BRI
ity & Prov
97.3 Permata
4.6% Permata
5.1% ) Panin 7.9% Mandiri )
.a.
4.9% (p Permata p
.a.
8.0% BNI
ts
s(
d 4.1% CIMB Niaga se
8.3% CIMB Niaga
As (%)
8.3% Maybank
Fun
3.7% Danamon
of
3.3% d BRI
on
8.7% Panin
os
iel Y
C 3.0% BNI
Peers
69.5% BRI
42.3% Maybank
ts se
As
ti
n ver
g Panin
50.0% Permata
ve t
it
arni
70.5% Permata
os
51.6% BTN
ati
al (%)
71.6% Danamon
Dep (%)
CIMB Niaga
ot
72.6% Mandiri
os
60.6% BRI
to T
73.2% CIMB Niaga
63.7% BNI
Low
x Rel
Loans
74.5% Maybank
68.4% Mandiri
76.3% Mi BCA
78.7% BTN
148.0 Maybank
96.8 Permata
77.4% CIMB Niaga
67.3% e BTN ts
4.6% CIMB Niaga
se ze 4.2% Mandiri 64.2% li
Danamon
com
As
t/ n (%)* 4.1% t/ A *
Maybank
In (%)
62.8% Mandiri
os
C 3.7% BCA
os 61.3% C Panin
ye Maybank
ag
lo
m ver yee
CIMB Niaga
Panin
lo CIMB Niaga ) e p
Panin
/E
Mn
ve to Peers
Mn
Em
com
n (Rp
2017 a
it/ (Rp
BRI
xI BRI
ati
rof
re P
Rel BNI
res
3.3 Danamon
3.4 Danamon
91
x)
1,431 Danamon
Ta
8.8%
CIMB Niaga
ter
(Af
1,964 BTN
ity
10.3%
Danamon
TMs
q A (%) 14.5%
4,500 CIMB Niaga
E Mandiri
17,658 BCA
on
15.6%
BNI
rn
17,766 Mandiri
tu BTN
ve to Peers
ati Permata
392 Maybank
0.6%
495 CIMB Niaga
1.2%
Maybank
x)
562 Panin
Ta
e CIMB Niaga s Rel ver
327 Permata
for
1.7%
es
835 BTN
(B
1.7%
BTN
ch
ts
ran Danamon
982 Danamon
se (%)
2.5%
As
on 2017 on
1,235 BCA
2.7%
Return
2,070 BRI
rn
2.8%
BNI
tu
e and
6,727 Maybank
4.0% Permata
Equity Research Contact Details
E-MAIL BAHANA SECURITIES
62 21 250 5081 ext. 3622 Henry.wibowo@bahana.co.id BANK OF AMERICA-MERRILL LYNCH
Henry Wibowo
anand.swaminathan@baml.com BCA SEKURITAS
Anand Swaminathan
Gilang.purnama@bcasekuritas.co.id CIMB SECURITIES
Gilang Purnama
jovent.muliadi@cimb.com CITI INVESTMENT RESEARCH
Jovent Giovanny
62 21 515 1330 ext. 262
Salman1.Ali@citi.com CLSA LIMITED
Salman Ali
Sarina.Lesmina@clsa.com CREDIT SUISSE
Sarina Lesmina
Sanjay.Jain@credit-suisse.com DANAREKSA SEKURITAS
Sanjay Jain
62 21 29555 777 ext. 3510 Helmyk@danareksa.com DBS VICKERS SECURITIES
Helmy Kristanto
Suelin@hwangdbsvickers.com.my DEUTSCHE VERDHANA SECURITIES
Lim Sue Lin
raymond.kosasih@db.com GOLDMAN SACHS (ASIA)
Raymond Kosasih
melissa.kuang@gs.com HSBC LTD
Melissa Kuang
Karwengloo@hsbc.com.sg INDO PREMIER SECURITIES
Loo KarWeng
Stephan.Hasjim@ipc.co.id J.P. MORGAN ASIA
Stephan Hasjim
Harsh.w.modi@jpmorgan.com KIM ENG SECURITIES
Harsh Modi
Rahmi.Marina@maybank-ke.co.id MACQUARIE CAPITAL SECURITIES INDONESIA Jayden Vantarakis
Rahmi Marina
Jayden.vantarakis@macquarie.com MIRAE ASSET SEKURITAS