2014Q3 Analysts Meeting
PT Bank Mandiri (Persero) Tbk
9M 2014
Results Presentation
(2)
Share Information
∆ fro : IPO Dec 31, 2013
BMRI + 1,417.32% +28.34%
JCI + 927.69% +23.07%
No. of Investor % No. of shares %
I DOMESTIC
1. Government of RI 1 0.01% 14,000,000,000 60.00% 2. Retail 10,732 71.77% 176,791,937 0.76% 3. Employees 2,119 14.17% 35,191,518 0.15% 4. Cooperatives 6 0.04% 496,856 0.00% 5. Foundation 18 0.12% 13,311,846 0.06% 6. Pension Funds 154 1.03% 166,607,715 0.71% 7. Insurance 58 0.39% 366,040,936 1.57% 8. Banks - 0.00% - 0.00% 9. Corporations 101 0.68% 359,379,620 1.54% 10. Mutual Funds 178 1.19% 580,212,186 2.49% Total 13,367 89.39% 15,698,032,614 67.28% II INTERNATIONAL
1. Retail 75 0.50% 882,980 0.00% 2. Institutional 1,511 10.10% 7,634,417,739 32.72% Total 1,586 10.61% 7,635,300,719 32.72%
Per 30 September 2014
14,953
100.00% 23,333,333,333 100.00%
III TOTAL
(3)
2
Table of Contents
Results Overview Page #
I do esia s E o o i Co ditio 3
9M 2014 Highlights 4
Key Indicators + Financial Highlights 5
SBU Performance Highlights 6
Ba k s Pe fo a e 7-10
Loan Performance 11-13
ROE & NIM 14-15
Fee-Based & CIR 16-17
NPL Movement 18-21
Subsidiaries 22
Targets & Initiatives 23Additional Information
Operating Performance Highlights Supporting Materials
(4)
3
Early Signs of Economic Condition Improving, Risks Remain
Source: BPS, Bloomberg
Deficit trade balance at USD318 mn in Aug 2014
I t l ese es i p o ed to U“D
111.2 bn, Aug 2014
1
1
1
.2
6.3
60
70
80
90
100
110
120
130
D e c-0 9 M a r-1 0 Ju n -1 0 S e p -1 0 D e c-1 0 M a r-1 1 Ju n -1 1 S e p -1 1 D e c-1 1 M a r-1 2 Ju n -1 2 S e p -1 2 D e c-1 2 M a r-1 3 Ju n -1 3 S e p -1 3 D e c-1 3 M a r-1 4 Ju n -1 4 4 5 6 7 8International Reserve - LHS
Import cover- RHS
6
8
10
12
14
16
18
20
Ja
n
-1
0
A
p
r-1
0
Ju
l-1
0
O
ct
-1
0
Ja
n
-1
1
A
p
r-1
1
Ju
l-1
1
O
ct
-1
1
Ja
n
-1
2
A
p
r-1
2
Ju
l-1
2
O
ct
-1
2
Ja
n
-1
3
A
p
r-1
3
Ju
l-1
3
O
ct
-1
3
Ja
n
-1
4
A
p
r-1
4
Ju
l-1
4
-3
-2
-1
0
1
2
3
4
Trade Balance - RHS Export - LHS
(5)
Cash Management
•
13,629 Customers
•
30.7 Mn Tx YTD
2014
(2)4
Bank Mandiri Remains on T
a k to e o e I do esia s Most
Admired Financial Institution
Retail Loans
(1)•
Rp 147.2 Tn
•
32.5% of Loans
•
High yield loan
amounting Rp 95,1 Tn
Subsidiary Income
•
Total Rp 1.60 Tn
•
Sum of income from
7 subsidiaries
(11.1 % of EAT)
Alliances
•
Foreign Exchange: $22.2bn
•
Bank Guarantee: Rp 13.1tn
•
Fund Under Management
(FUM) of Rp 4.97tn
e-Channel Tx
•
1,194 Mn YTD
•
20 % Growth
# of Cards Issued
•
Credit 3.60 Mn
•
Debit 11.82 Mn
•
Prepaid 4.43 Mn
(1) Small Business, Micro and Consumers (2) Exclude Mandiri Transaction System
# of Accounts
•
Deposit 15.30 Mn
•
Loan 1.46 Mn
including mortgage
accounts of 170,139
# of new Accounts (YTD)
•
Deposit 3.21 Mn
•
Loan 559,422
# of Outlets
2,154 Branches
2,603 Micro Outlets
13,309 ATMs
(6)
Key Financial Highlights
Ba k Ma di i s
9M 2014 performance is in line with our guidance across
several key indicators:
9M
9M
%
Loans
Rp450.8tn
Rp506.5tn
12.4%
Net NPL Ratio
Gross NPL Ratio
0.53%
1.90%
0.82%
2.16%
54.7%
13.7%
Low Cost Funds Ratio
[Low Cost Funds (Rp)]
64.3%
Rp330.7 tn
61.2%
Rp361.8 tn
(4.8%)
9.4%
NIM
5.41%
5.73%
5.9%
Efficiency Ratio
42.3%
44.0%
4.1%
Earnings After Tax
Rp12,803bn
Rp14,454bn
12.9%
(7)
Balanced Earnings from All Business Units
20.86% 16.81% 32.10% 18.54% 3.68% 6.44% 31.17% 50.93% 12.20% 7.27%
7.21% 7.59% 11.96% 10.52% 32.39% 31.33% 36.94% 39.62% 11.50% 10.93%
NII (Net Interest Income)
(Rp bn) % of Total
Fee Income
(Rp bn) % of Total
Asset Spread
(Rp bn) % of Total
Liabilities Spread
(Rp bn)
3,944
6,067
695
5,891
2,306 4,389
4,839
1,681
13,295
1,899
Corporate + Institutional
Comm & Business Banking
Treasury, FI & SAM*
Micro & Retail
Consumer Finance
3Q '12 3Q '14
3,079
5,471
501
2,234
2,291 2,730
4,391
1,478
2,688
1,871
3Q '12 3Q '14
865
597
194
3,657
16 1,659
449
204
10,607
18
3Q '12 3Q '14
22.68% 20.75% 40.30% 33.37% 3.69% 11.23% 16.46% 20.43% 16.88% 14.22%
601
997
2,700
3,080
959 771
1,068
1,946
4,024
1110
3Q '12 3Q '14
6
*Rp 1,236Bn from SAM recoveries on W/O loans
(8)
97 .1 102 .9 108 .8 121 .9 119 .8
126.5 135.4 151
.8 150 .4 159 .9 166 .2 186 .9 179.9 189 .8 198.8 214 .7 201 .9 203 .0 208 .0
9.9 10.811.6
11.6 12.312.712.2
12.0 13.413.6 14.0
15.3 15.816.819.0 20.7
22.1 23.2 22.3
47.8 50 .3 39 .9 46 .2 45 .3 47 .9
49.4 67.3 75.0
59
.0
63
.0
77
.9 61.2
74 .6 63 .9 73.4 67.2 74 .2 79 .6
22.023.1 22.9
22.2 25.422.3 24.0 25.328.2 28.028.5 36.1 33.3 38.5 49.2 51.1 43.5 45.0 52.0 124.4 127 .8 127.0 147 .8 143 .5 140 .8 140 .0 148 .1 120 .8 137.5 138.9 150 .7 152 .8 153 .7 155 .2 176
.2 176.9 190
.0
201.6
11.811.7 11.1
12.5 10.312.415.3
17.8 15.620.3 20.4 16.1 24.0 29.028.2 20.1 20.0 20.5 27.5 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 1 Q' 10 2 Q' 10 3 Q' 10 4 Q' 10 1Q '11 2Q '11 3 Q' 11 4 Q' 11 1 Q' 12 2 Q' 12 3 Q' 12 4Q '12 1 Q' 13 2Q '13 3 Q' 13 4 Q' 13 1 Q' 14 2 Q' 14 3 Q' 14
FX Time Rp Time
FX Demand Rp Demand FX Savings Rp Savings
74 .5 80 .7 84 .2 85 .4 85 .1 96 .2 103 .2 106 .2 113 .0 119 .2 123 .2
126.3 124.7 124
.3 130 .9 138.8 131 .8 129 .8 138 .1
0.2 0.4 1.3 1.4 1.6
1.5 1.7 1.4
1.3 1.5 1.6 1.8 1.6 1.5
1.7 2.0 2.3 1.3 1.3
49 .1 53 .1 57 .5 63 .8 64 .7 70 .1 74.7 80 .7 82 .5 89.8 93 .3 102 .7 102 .0 104 .2 111 .0 116.9 116 .3 123 .7 127 .7 24.726.7 28.630.732.4 34.336.3 39.040.7 43.344.5 47.749.352.455.2 56.657.460.362.4 17.719.3 20.522.723.3 25.8 27.630.2 30.9 33.135.0 38.438.442.5 43.7 46.5 46.3 49.0 52.0 5.6 6.0 6.5 7.3 7.7 8.5 9.5 11.813.1 15.116.8 19.020.723.9
24.927.0 28.2
31.0 32.7 9.7 9.1 8.6 7.8 6.7 6.1 6.1 4.6 4.8 4.8 4.9
4.0 3.9 3.9
4.2
4.2 3.9 3.9
3.8 22.6 24.3 25.029.031.5 33.9 20.4 22.724.6 27.230.3 34.2 38.4 40.540.9 43.646.0 48.950.9 53.5 54.9 55.555.355.5 54.6 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' 10 2 Q' 10 3 Q' 10 4Q '10 1Q '11 2 Q' 11 3 Q' 11 4Q '11 1 Q' 12 2 Q' 12 3 Q' 12 4 Q' 12 1 Q' 13 2Q '13 3 Q' 13 4 Q' 13 1 Q' 14 2 Q' 14 3 Q' 14 Subsidiaries Inst SAM Micro
Small Cons
Comm Int'l
Corp
Maintaining Momentum for Growth
Y-o-Y (2.6%) 29.9% 5.8% 24.6% 4.6% Y-o-Y (10.1%) 31.4% 18.9%
Loans by SBU + Subsidiaries
(Rp Tn)
15.1%
5.5%
Deposits by Product
–
Consolidated
(Rp Tn)
*Previously booked in Corporate Banking
**Loans from Treasury & International have been reallocated to Corporate following the reorganization in early 2010
(25.4%)** 17.3% 12.4% 506.5tn Total Total 514.2tn 590.9tn 14.9% 39.4% (0.6%)
7
450.8tn 13.1%(9)
Strong and Liquid Balance Sheet
(Rp Bn, Consolidated)
8
*Investments include policyholders of unit linked and Investments in shares has been reclassified to cash, government bonds, marketable securites, other assets.
Assets *
3Q 2014
3Q 2013
Liabilities
3Q 2014
3Q 2013
Cash
15,727
14,352
Current Account
131,547
113,022
Current Acc w/ BI & Other Banks
56,968
59,876
Savings
230,219
217,723
Placement w/ BI & Other banks
60,395
35,474
Time Deposits
229,124
183,475
Advances (Other)
23,380
20,448
Marketable Securities
36,742
18,375
Total Deposits
590,890
514,221
Government Bonds
87,640
82,188
Loans (Gross)
506,456
450,766
Securities Issued
2,014
1,787
Provisions of Loans
(17,297)
(16,157)
Deposits from other banks
28,471
30,131
Net Loans
489,159
434,609
Borrowings
15,547
13,769
Reverse Repo
2,911
1,585
Other Int. Bearing Liabilities
12,085
13,854
Other Provisions
(2,046)
(2,024)Non Int. Bearing Liabilities
50,120
42,578
Deferred Tax Assets
3,344
2,968
Equity incl. Minority Interest
99,034
83,742
Other Assets
23,941
32,232
(10)
26
,034
19
,243
1
8
,9
8
4
1
4
,9
0
0
BMRI
Bank A
Bank B
Bank C
Absolute CASA Growth
As of Ju e’
14
Despite Recent Volatility Our Balance Sheet Remains
Strong
9
15.8%27.4% 16.0%
10.5%
30.4%
Cat.2 Loans (Special Mention)
Corporate Commercial Business Banking Micro Consumer
Only 3.2% of consumer loans are expected to migrate to
NPL 35% yoy higher absolute CASA
growth at BMRI
451,842
441,986
8,280 1,576
Total Portfolio
Non-Restructured
Current Non performing
Restructured
Bank Only Restructured loans
Restructured loans are small and mostly
(11)
Strong Revenue Growth
10
Summary P&L
Q3 2014
(Rp Bn)
Q2 2014
(Rp Bn)
Q3 2013 9M 2014 9M 2013 9M Y-o-Y
(Rp Bn)
Rp (Bn)
Rp (Bn)
∆ ℅
Y-o-Y
∆ ℅
Q-o-Q
∆ ℅
Interest Income
15,984
14,978
12,683
45,275
35,798
26.5%
26.0%
6.7%
Interest Expense
6,608
5,855
4,403
17,797
12,380
43.8%
50.1%
12.9%
Net Interest Income
9,376
9,123
8,280
27,479
23,418
17.3%
13.2%
2.8%
Net Premium Income
724
675
698
1,984
2,021
(1.9%)
3.8%
7.2%
Net Interest Income & Premium Income
10,100
9,798
8,978
29,463
25,439
15.8%
12.5%
3.1%
Other Non Interest Income
* Other Fees and Commissions
2,255
2,212
2,132
6,598
6,098
8.2%
5.8%
1.9%
* Foreign Exchange Gains - Net
404
380
881
1,188
1,506
(21.1%)
(54.2%)
6.3%
* Gain fr. sale & Incr. in Val & Sale of Bonds
71
41
(108)
270
(177)
n/a
n/a
73.7%
* Others
889
1,112
899
2,836
2,904
(2.3%)
(1.2%) (20.0%)
Total Non Interest Income
3,620
3,745
3,805
10,892
10,330
5.4%
(4.9%)
(3.3%)
Total Operating Income
13,720
13,543
12,783
40,354
35,769
12.8%
7.3%
1.3%
Provisions, Net
(909)
(1,624)
(1,494)
(3,750)
(4,005)
(6.4%)
(39.1%) (44.0%)
Personnel Expenses
(2,752)
(2,662)
(2,679)
(8,041)
(7,057)
13.9%
2.8%
3.4%
G&A Expenses
(2,958)
(2,693)
(2,375)
(7,961)
(6,731)
18.3%
24.5%
9.9%
Loss from decr. in value of Sec & Gov Bonds
-
-
-
-
-
-
-
-Other Expenses
(680)
(475)
(429)
(1,631)
(1,404)
16.2%
58.7%
43.2%
Total Expense
(6,391)
(5,830)
(5,483)
(17,633) (15,192)
16.1%
16.6%
9.6%
Profit from Operations
6,419
6,089
5,807
18,971
16,572
14.5%
10.6%
5.4%
Non Operating Income
15
10
65
20
177
(88.4%)
(76.7%)
54.3%
Net Income Before Tax
6,434
6,098
5,871
18,992
16,749
13.4%
9.6%
5.5%
(12)
LDR Decreased to 85.3%, Bank-Only Loan Growth of 14.2%
175.2 181 .6 188 .3 198 .5 201 .9 218 .0 231 .9 246 .2 251 .8 276 .7 297.5 314 .4327.2 350.4 365
.2 388 .8 391.6 428 .7 450 .8 472 .4 470 .4 485 .8 506 .5 63.2% 62.2% 62.8% 61.4% 64.1% 66.3% 71.7% 67.6% 70.2% 75.9% 78.7% 74.1% 80.7% 83.4% 84.4% 83.5% 85.0% 87.3% 84.5% 88.0% 87.0% 85.3% 1Q '09 2 Q '09 3 Q '09 4Q '09 1 Q '10 2 Q '10 3 Q '10 4 Q' 10 1 Q' 11 2 Q' 11 3 Q' 11 4 Q' 11 1 Q' 12 2Q '12 3 Q' 12 4Q '12 1Q '13 2 Q' 13 3 Q' 13 4Q '13 1 Q' 14 2 Q' 14 3 Q' 14
Loans (Rp tn) LDR (%)
1.4%3.7%3.7% 5.5% 1.7%7.9%6.4% 6.2% 2.3% 9.9% 7.5% 5.7% 4.1% 7.1% 4.2% 6.5% 0.7% 9.5% 5.1% 4.8% -0.4%3.3% 4.2% 30.5% 21.4% 15.7% 13.8% 15.3% 20.0% 23.2% 24.0% 24.7% 26.9% 28.3% 27.7% 30.0% 26.6% 22.8% 23.7% 19.7% 22.3% 23.4% 21.5% 13.3% 12.4% 1Q '09 2 Q '09 3 Q '09 4 Q '09 1 Q '10 2 Q '10 3 Q '10 4 Q' 10 1 Q' 11 2 Q' 11 3Q '11 4 Q' 11 1Q '12 2Q '12 3 Q' 12 4 Q' 12 1Q '13 2 Q' 13 3 Q' 13 4 Q' 13 1 Q' 14 2 Q' 14 3 Q' 14
QoQ Growth (%) YoY Growth (%)
Quarterly Loan Data
(Consolidated)
78 .8 79 .7 82 .0 82 .7 82 .9 88 .7 92.8 93 .6 92 .5 103 .1 110 .4 111. 7 118 .6 125. 2 129. 3 131 .7 129 .9 151 .9 153 .5 169 .7 166 .7 166 .3 176. 8 42 .6 43 .6 45 .3 50 .6 50.4 54 .258.6 64.7 64 .5 70
.7 75.3 81 .1 82.9 90
.1 93 .6 103. 0 102 .3 104 .4 118 .2 117 .1 1 1 6 .5 123 .9 127. 9
14.415.816.617.418.0
19.720.7 22.824.5 25.927.7 30.330.9 33.235.138.5 38.542.5 44.1 46.5 46.349.0 52.0
4.6 4.85.1
5.4 5.66.0
6.57.3 7.7
8.5 9.511.8 13.1 15.116.8 19.020.7 23.9 24.9 27.0 28.2 31.0 32.7 19.720.621.7 23.624.8 26.728.6 30.732.4 34.3 36.3 39.040.7 43.344.5 47.749.3 52.4 55.2 56.6 57.4 60.3 62.4 1 Q' 09 3 Q' 09 1 Q' 10 3 Q' 1 0 1 Q' 11 3 Q' 11 1 Q' 12 3 Q' 12 1 Q' 1 3 3 Q' 13 1 Q' 1 4 3 Q' 1 4
Corporate Commercial Small Micro Consumer
Quarterly Loan Segment Details
(Bank Only)
Y-o-Y13.1% 31.4% 18.0% 8.3% 15.1% 14.2% Total 13.8% 7.2% 11.5% 28.3% 39.1% Break down
As of Sep 2014; Non-consolidated numbers
(13)
34 .56 3 5 .24 37 .83 36 .49 35 .64 31 .15 29 .19 29 .75 3 0 .62 3 3 .96 35 .68 38 .86 38 .60 41 .87 44 .44 40 .35 41 .88 4 5 .47 45 .73 49 .62 48 .17 53 .29 5 9 .79 67 .75 6 2 .22 6 2 .95 72 .24 104.5% 95.9% 111.0% 80.5% 78.3% 68.5% 61.9% 68.2% 71.7% 76.3% 80.7% 86.6% 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% 50% 60% 70% 80% 90% 100% 110% 120% Mar 08 Ju n e 08 Sep 08 De c 08 Mar 09 Ju n e 09 Sep 09 De c 09 Mar 10 Ju n e 10 Se p 10 De c 10 Mar 11 Ju n e 11 Sep 11 De c 11 Mar 12 Ju n 12 Sep 12 De c 12 Mar 13 Ju n 13 Sep 13 De c 13 Mar 14 Ju n e 14 Se p 14 20 30 40 50 60 70
Loan Fx
LDR FX
Prudent Management of FX Balance Sheet
USD Billion
Rp Trillion (Bank Only)
Breakdown of FX lending (Bank Only)
3
Q
14 (Total USD 5.929 Bn)
0.00 0.10 0.21 0.35 0.36 0.39 0.58 0.59 0.62 1.34 1.38
Soc Serv
Constr
Utilities
Bus Serv
Trans
Agri
Mining
Trading
Oth
Oil & Gas
Mfg
% (YoY)
2% 16% 1,504% -2% -19% 2% 16% 40% -6% -11% -72%FX Loans & LDR
(14)
430.38
81.98
25.05
32.42 3.92 1.73
0.86
451.84
2Q'14 Disburs. Install. Payment Pay-off FX Impact
Write-Offs
3Q '14
44.43
18.18
7.32
7.10
4.93
81.98
Corporate Commercial Small Micro Cons Fin Total
Rp 81.98 tn in Loans Disbursed in 3Q 2014
Loan Movement (Rp tn)
–
Bank Only 3Q (2014)
Loan Disbursement by Segment in 3Q (Rp tn)
–
Bank Only
(15)
42.6 58
.1
72
.5 91
.9
108
.9
115
.9
112
.2
134
.0
172
.9
19
5.8
242
.4
352
.5
400
.2
491.3 505.9
13
.3
15.4 17
.0
25
.5
27
.5
27
.4
28
.4
28
.3
27
.2
30
.5
35.7 53
.3
62
.0
73
.9
83.3
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
RWA (Rp tn) Total Capital (Rp tn)
31.3%
26.4%
23.4% 27.7%
25.3%
23.2%
24.6%
20.8%
15.7% 15.4%
13.4% 15.3%
15.5% 14.9%
16.5%
CAR*
308
1,168 1,549 1,744
519 510 1,027 1,390 1,400 2,003
2,681 3,403 4,303 4,925 1,300
602 690 1,329
97 305
1,113 1,221 1,526
2,031
2,543 3,744 3,991
4,660
967 1,017
1,528 1,408
610 372 1,040
1,345 1,693
2,352 2,850
3,972 4,509
4,869
645 799
819 775
-623 1,234
1,166 1,390
2,536 2,833
3,073 4,385
5,401
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Q4 PAT Q3 PAT Q2 PAT Q1 PAT
IDR bn
20.8% ROE, Supported by a Strong Capital Position
Bank Only - Capital & RWA Movement
Profit After Tax & ROE
21.5% 26.2%
23.6% 22.8%
2.5%
10.0%
15.8%18.1% 22.1%
24.2% 22.0%
22.6%
22.2% 20.8%
RoE - AT
• CAR inclusive of Credit and Market Risk started in December 2004
• CAR inclusive of Credit, Market and Operational Risk started in January 2010
• CAR under BASEL III in December 2013 was 16.7%
14
*1.1Tn from GIAA Recovery
(16)
15
Q3 NIM of 5.8% as Yield on Assets Rises 40bps
4
.3
%
3
.6
%
4.9% 4
.7
%
5.1%
5
.5
%
6
.0
%
5
.4
%
5
.5
%
5.3% 4
.9
%
5
.3
%
5
.1
%
5
.2
%
6
.0
%
5
.8
%
5
.1
%
5
.4
%
5.2% 5
.4
%
5.2% 5
.5
%
5
.8
%
5
.7
%
5
.5
%
5.3% 5
.7
%
6.1% 5
.9
%
5
.9
%
5
.8
%
4 Q '04 4 Q '05 4 Q '06 4Q '07 1 Q '08 2Q '08 3 Q '08 4 Q '08 1 Q '09 2 Q '09 3Q '09 4 Q '09 1Q '10 2 Q '10 3 Q '10 4 Q '10 1 Q '11 2 Q '11 3 Q '11 4Q '11 1 Q' 122Q'12 3Q'
12 4 Q' 12 1 Q' 13 2 Q' 13 3Q'13 4 Q' 13 1Q' 14 2 Q' 14 3 Q' 14 NIM 8.9% 11.0% 9.2% 10.5% 9.9% 9.4% 8.7% 9.0% 8.7% 8.2% 8.1% 8.4% 8.2% 8.1% 7.8% 8.3% 9.0% 9.1% 9.2% 9.6% 4.8% 7.3% 6.4% 4.5% 4.3% 4.2% 5.5% 4.8%
4.0% 3.8% 3.7% 3.2% 2.8% 2.7% 2.7% 2.8% 2.6% 2.8% 3.1% 3.3% 3.5% 3.9%
Yield on Assets Cost of Funds
Quarterly Net Interest Margins
Quarterly Yields & Costs by Currency
6.6% 5.8% 6.8% 6.5% 6.6% 5.8% 6.4% 5.2% 5.2% 5.0% 7.2% 5.1% 4.9% 4.7% 5.3% 4.8% 5.4% 5.0% 4.9% 4.8% 4.5% 4.5% 5.1% 4.4% 4.5% 4.5% 3.4% 2.7% 2.6%3.0% 2.7% 2.3% 2.1% 1.5% 0.8% 0.7% 0.8% 0.3% 0.5% 0.6% 0.6% 0.7% 0.7% 0.7% 0.6% 0.6% 0.7% 0.8% 0.7% 0.7% 0% 5% 1 Q '08 2 Q '08 3 Q '08 4 Q '08 1 Q '09 2Q '09 3 Q '09 4Q '09 1 Q '10 2 Q '10 3 Q '10 4 Q' 10
1Q'11 2Q'
11
3Q'11 4Q'
11 1 Q' 12 2 Q' 12 3 Q' 12 4 Q' 12 1 Q' 13
2Q'13 3Q'
13
4Q'13 1Q'
14 2 Q' 14 3 Q' 14 11.2% 11.1% 12.1% 12.9% 12.8% 12.2% 13.1% 12.7% 11.8% 12.1% 11.9% 12.5% 11.4% 11.8% 11.3% 11.2% 10.8% 11.1% 11.8% 11.8% 12.0% 12.4% 7.9%
10.6% 8.5% 7.2% 6.8%
6.2% 6.5% 4.9%
3.9% 3.3% 4.0% 3.9%4.7% 5.3%5.4% 5.9% 5.7% 4.5% 4.0% 5.8% 5.9% 5.3% 4.7% 4.4% 4.3% 4.2% 4.2% 3.1%
3.0%3.1%3.3%3.7%
3.9% 4.1% 4.6% 0% 5% 10% 15% 20%
Avg Loan Yield Avg Bond Yield Avg COF
IDR
(17)
…i to Fee
-based Income
16
Breakdown of Q3 2014 Non-Loan Related Fees & Commissions (Rp bn)
Non-Loan Related Fees & Commissions
Q3-2014
Q2-2014
Q3-2013
Y-o-Y
%
Q-o-Q
%
Administration Fees
696 657 608 14.4% 5.9%Opening L/C, BG & Cap Market (custodian & trustee)
225 218 192 16.9% 3.0%Subsidiaries
387 376 370 4.5% 2.8%Transfer, Retail Transaction
368 381 353 4.3% (3.6%)Credit Cards
374 352 299 25.2% 6.4%Mutual Fund, ORI & Bancassurance
86 88 91 (5.8%) (2.2%)Syndications
33 28 58 (42.2%) 20.9%Payroll Package
21 18 19 5.6% 14.0%Others
66 95 142 (53.3%) (29.9%)Total
2,255 2,212 2,132 5.8% 1.9%Foreign Exchange Gains
404 380 881 (54.2%) 6.3%Gains Fr Sale & Incr. in Value of Sec. & Gov. Bonds
71 41 (108) (166.4%) 73.7%Cash Recoveries
549 761 598 (8.2%) (27.8%)Others
341 351 302 12.9% (2.8%)Total Fee Based Income (As Reported)
3,620 3,745 3,805 (4.9%) (3.3%)Total Operating Income
13,720 13,543 12,783 7.3% 1.3%(18)
827 1,004 1,110 1,384 1,051 651,2 1,459 1,682 1,524 1,510 1,883 ,107 2 1,614 2,004 2,071 2,565 2,034 2,322 2,375 3,167 2,309 2,693 2,958
1
,116
1
,390
1
,019
1
,328
1
,306
1,3
75
1
,485
1,6
12 1,547 1,631
1
,671
1
,903
1,8
65
1
,939 1,869
2
,372
2
,042
2
,336 2,679
2
,374
2
,626
2,6
62
2
,752
1Q
'09
2
Q
'09
3
Q
'09
4
Q
'09
1
Q
'10
2Q
'10
3
Q
'10
4Q'10 1Q'
11
2
Q'
11
3
Q'
11
4
Q'
11
1
Q'
12
2
Q'
12
3Q'12 4Q'
12
1Q'13 2Q'
13
3
Q'
13
4
Q'
13
1
Q'
14
2Q'14 3Q'
14
G&A Expenses Personnel Expenses
35.1% 42.8%
39.3% 43.2%
39.0% 38.4%
38.1% 45.1%
32.4%
37.3%39.0% 41.6%
44.0% 43.2%
42.7% 51.3%
41.1% 43.1%
42.5% 44.6%
41.8% 43.2%
46.6%
CIR (%)
Q3 Cost to Income Ratio of 46.58 %
Breakdown of 3Q 2014 Operating Expenses
Quarterly Consolidated Operating Expenses & CIR
17
3Q '14 3Q '13 9M '14 9M '13
Growth (%)
YoY 9M
YoY QoQ
Personnel Expenses
Base Salary 680 619 2,050 1,761 9.8% 16.4% (0.3%) Other Allowances 1,351 1,256 3,890 3,304 7.6% 17.7% 3.6% Post Empl. Benefits 65 182 226 309 (64.5%) (26.7%) 4.8%
Training 18 99 243 252 (82.1%) (3.8%) (73.1%)
Subsidiaries 639 523 1,633 1,431 22.2% 14.1% 16.4%
Total Personnel Expenses 2,752 2,679 8,041 7,057 2.8% 13.9% 3.4%
G&A Expenses
IT & telecoms 369 318 1,064 878 16.0% 21.1% 1.2% Occupancy Related 604 474 1,624 1,392 27.4% 16.7% 4.7% Promo & Sponsor 322 253 743 683 27.1% 8.8% 49.6% Transport & Travel 155 131 447 380 18.0% 17.5% (6.9%) Goods, Prof. Svcs. & Oth. 422 292 1,083 837 44.3% 29.3% 20.5% Employee Related 480 364 1,320 1,029 31.7% 28.3% 0.8% Subsidiaries 608 542 1,680 1,530 12.1% 9.8% 11.5%
Total G&A Expenses 2,958 2,375 7,961 6,731 24.5% 18.3% 9.9%
Other Expenses 680 429 429 429 58.6% 0.0% 43.2%
(19)
14,058 13,451 13,502 15,918 17,255 17,124 19,559 18,838 18,886 18,824 19,054 16,924 14,846 14,292 13,336 12,986 13,944 13,606 15,676 14,856 15,626 16,989 17,672 17,755 19,272 21,586 23,825 11 .5 % 10 .0 % 9 .2 %9 .1 % 9 .8
% 9.4
%
10.4%
9
.5
%
9.4% 8.6
% 8 .2 % 6 .9 % 5 .9 % 5.2% 4 .5 % 4.1% 4 .3
% 3.9
%
4
.3
% 3.8
%
4
.0
% 4.0
% 3.9% 3 .8 % 4.1% 4 .4 % 4 .7 % 0 2 ,000 4,0 00 6 ,000 8,0 00 10 ,000 12 ,000 14 ,000 16 ,000 18 ,000 20 ,000 22 ,00 0 24 ,000 1Q'08 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 1Q'10 2Q'10 3Q'10 4Q'10 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 S peci al M enti on S peci al M enti on R at io
NP
L Mo
veme
n
t
-Consol
ida
ted
5.14% 4.74% 4.44% 4.73% 5.85% 4.78% 3.79% 2.79% 2.56% 2.54% 2.60% 2.42% 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% 116 .0 % 122.5% 138 .9 % 127.1% 116 .6 % 136 .1 % 155 .2 % 206 .0 % 191.7% 192 .4 % 155.5% 185 .1 % 185 .2 % 189 .6 % 193 .4 % 185 .5 % 187 .6 % 185.3% 170 .3 % 160.6% 157 .4 % 1Q '08 2Q '08 3Q '08 4Q '08 1Q '09 2Q '09 3Q '09 4Q '09 1Q '10 2Q '10 3Q '10 4Q '10 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 Gro ss N PL Rat io Pr o v/N PLGr
oss
NPL
s
2
.16
%,
Coverage
at
157
.4
%
-Cat
egory
2
Stabl
e
at
4
.70
%
Ca
teg
ory
2
Loans
18
(20)
Q3 Total NPLs of Rp7.62 tn with Rp856 bn in Write-Offs
NPLs (Rp tn)
3Q
(Rp tn)
NPLs (%)
Corporate 2.63 0.03 1.49%
Commercial 1.06 (0.10) 0.83%
Small 1.57 (0.02) 3.02%
Micro 1.10 0.08 3.38%
Consumer 1.25 (0.03) 2.01%
Total 7.62 (0.04) 1.68%*
Non-Performing Loans by Segment
Movement by Customer Segment (Rp Bn)
7.66
0.14
1.05
0.28
0.86
0.19
7.62
2Q '14 UG to PL DG to NPL Payment Write-Offs Other 3Q '14
Non-Performing Loan Movements (Rp tn)
–
Bank Only
19
159246 27
416 253
45
282
160
73
196
197
0 200 400 600 800 1000 1200
UG to PL DG to NPL W/O
Corp Comm Micro Small Cons
(21)
Total Loans originated since 2005
Net
Upgrades(%)
/Downgrades(%)
#3Q 2014 Details
Loan Background
Q
Balance
(Rp bn)
3Q
2012
4Q
2012
1Q
2013
2Q
2013
3Q
2013
4Q
2013
1Q
2014
2Q
2014
3Q
2014
DG to
NPL
%
UG to
PL
%
Corporate
176,754.89
0.01
0.25
0.00
0.01
0.00
0.00
0.10
-
-
-
-Commercial
127,914.39
0.05
0.27
0.24
0.05
0.10
0.01
0.08
0.04
0.12
0.12
-Small
52,024.10
0.84
0.49
1.28
0.59
1.05
0.64
0.97
0.70
0.45
0.54
0.08
Micro
32,705.72
1.37
1.00
1.25
1.10
1.18
0.89
1.16
1.26
1.19
1.27
0.08
Consumer
62,442.85
0.25
0.07
0.28
0.18
0.17
0.07
0.35
0.20
0.20
0.31
0.12
Total
451,841.95
0.22
0.11
0.34
0.18
0.25
0.13
0.30
0.21
0.20
0.23
0.03
3Q 2014 Annualized Net Downgrades of 0.8% on Loans
Originated Since 2005
# % downgrades and
upgrades
are quarterly % figures
(22)
R
e
stru
ctu
re
d
Loan
s
19.4 20.3 21.7 18.4 16.9 16.2 16.6 16.4 16.2 17.2 17.1 17.1 15.3 15.2 14.3 13.1 13.6 13.5 13.5 14.2 13.9 14.0 11.7 11.7 12.0 12.5 12.6 11.2 11.4 9.9
5
.0
7.0
9
.0
11
.0
13
.0
15
.0
17
.0
19.0
21
.0
23
.0
4Q '05 4Q '06 4Q '07 1Q '08 2Q '08 3Q '08 4Q '08 1Q '09 2Q '09 3Q '09 4Q '09 1Q '10 2Q '10 3Q '10 4Q '10 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
Decl
ini
ng Restr
uct
ured
Loans
Si
nce
2005
An
n
u
al
iz
e
d
R
e
lap
sed
R
a
te
of
R
e
stru
ctu
re
d
Loan
P
ortf
ol
io
21
1.2
%
2.7
%
0.0
%
0.3
%
0.0
%
0.0
%
0.0
%
0
.0
%
0
.5
%
1
.0
%
1.5%
2.0%
2
.5
%
3
.0
%
2008 2009 2010 2011 2012 2013 2014
(23)
Total Assets Rp65.4 tn
Bond Trading Volume Rp57.7 tn
Total Assets Rp21.1 tn
Total Loans Rp871.7bn
Total Financing Rp10.8tn Total Financing
Rp49.3 tn
Equity & FI Underwriting Rp5.7 tn
Annual FYP Rp2,756.7 bn
Net Interest Margin 11.22 %
Net Interest Margin 2.47% Total Deposits
Rp57.6 tn
Equity Trading Volume Rp100.1 tn
Fee Contribution Rp380.1 bn
ROA 2.47%
ROA 4.89% ROE
7.63%
ROE 12.5%
ROE 63.7%
ROE 11.49%
ROE 30.74%
•Remain the leader in syariah financing
•Capital injection program over 3 years
•Cross-sell 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
•Provide end-to-end bank assurance business
•Continue to build cross-sell opportunities in various segments
•Bank assurance products complete our suite of consumer offerings
•Enhance operating model •Improve risk management
systems and IT •Improve productivity
• Use Ba k Ma di i s network and customer throughout Indonesia to develop multi-finance segment, especially in vehicle-ownership financing.
Enhancing Synergies & Value from Subsidiaries
Investment Banking
Syariah Banking Insurance Niche Banking
Bank Sinar Harapan Bali
Multi-Finance
(24)
Ba k Ma di i s
2014 Corporate Guidance
Target 2014
9M 2014 Realization
Gross Loan Growth (YoY)
16%-18%
12.4%
Low Cost Deposits
400 Tn
362 Tn
Net Interest Margins
>5.70%
5.73%
Efficiency Ratio
<45%
44.0%
Gross NPLs
<2.10%
2.16%
Cost of Credit
~1.2%-1.3%
1.00%
# of New ATMs
2,500
–
4,000
1,795
# of New EDCs
40,000
32,503
# of New Micro Outlets
300
138
# of New Conventional Branches
50
37
(25)
24
(26)
K
e
y
In
di
ca
tor
s
R
emai
n
St
abl
e
10.00%
15.80%
18.01%
22.10%
24.40%
30.70%
24.30%
22.70%
22.00%
21.12%
21.88%
22.18%
22.55%
21.85%
21.09%
21.35%
22.23%
22.17%
21.20%
20.84%
2006 2007 2008 2009 2010 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'14R
e
turn
on E
qu
ity
(R
oE
)
Fee
Ba
se
d
Ra
ti
o
Curr
en
t Acc
oun
t
Sa
vi
ng
Acc
oun
t
(CAS
A)
Non P
erf
ormi
ng
Loan
(NP
L)
19.60%
20.10%
23.90%
24.40%
29.30%
27.70%
28.10%
29.30%
30.40%
28.10%
29.50%
28.20%
28.40%
28.50%
28.70%
29.40%
29.50%
25.74%
26.56%
26.32%
2006 2007 2008 2009 2010 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'1453.00%
61.60%
56.70%
58.40%
55.80%
54.00%
57.70%
58.70%
60.70%
60.60%
62.30%
63.00%
65.50%
62.10%
63.60%
64.30%
64.70%
62.96%
62.17%
61.22%
2006 2007 2008 2009 2010 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'1416.30%
7.20%
4.73%
2.79%
2.42%
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%
2006 2007 2008 2009 2010 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'1425
(27)
Total Wholesales Fees Rp3.3Tn1) Total Wholesale Low Cost Deposits
Rp207.3Tn
Growth of Tx cash management 69.6% YoY2)
Total Retail Fees of Rp5.6 Tn1)
Total Retail Low Cost Funds Rp254.0Tn
YoY increase in # of E-channel transaction: 20.0%
Total Retail Loans of Rp147.2 Tn
Assets Spread Rp6.2 Tn
32.6% of total loans
Pillar 1
Pillar 2
Pillar 3
1) Fee-Based Provision, Commission & Fee 2) Excluding Mandiri Transaction System
Good Progress On Our 3 Strategic Priorities:
Wholesale Transactions, Retail Payments & High Yield Loans
26
Strengthen leadership in wholesale
transaction banking
Comprehensive financing &transaction solutions
Holistic relationship approach for leading Indonesian institutions
Build #1 or #2 positions in key retail
financing segments
Win in mortgage, personal loan & cards
Become a major player in micro-banking
Champion Syariah in Indonesia
Be the retail deposit bank of choice
Win through differentiated customer experience and targeted propositions Deploy innovative payment solutions
(28)
Breakdown of Net Expansion in Corporate Lending
Q3 14
–
Q3 13 (Total Rp15.98 tn)
Rp Billion
-132
593 690 703 784 1,061 1,305 1,515 1,669 2,384 2,603 2,805
Oth Bus Serv Trad-Dom Mfg-NonM Mfg-Feed Plantations Trad-Distr Mfg-F&B Real Estate Constr Electricity Mining-Oil & Gas
%
17.55% 16.29% 14.92% 10.45% 9.48% 8.17% 6.64% 4.91% 4.40% 4.32% 3.71% -0.83%
Rp Billion
Breakdown of Net Expansion in Commercial Lending
Q3 14
–
Q3 13 (Total Rp16.74 tn)
919 979 1,082 1,107 1,171 1,437 1,483 1,608 1,926 2,024 3,004
Trad-Imp Oth Mfg-Text Mfg-P&P Constr Mfg-RawM Mfg-Oth Plantations Mass Trans Bus Serv Trad-Distr
%
17.94% 12.09% 11.51% 9.60% 8.86% 8.59% 7.00% 6.61% 6.46% 5.85% 5.49%
Diversifying our Strength in Wholesale L
e di g…
(29)
Whol
esal
e
Transacti
ons
Dri
vi
n
g
CASA
745 2,414 4,066 6,153 7,784 10,943 11,899 12,112 12,366 12,652 12,932 13,162 13,437 13,629 2006 2007 2008 2009 2010 2011 2012 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14Ca
sh
Ma
na
g
em
en
t
Use
rs
Whol
esal
e CAS
A
Deposi
ts
58,055 62,257 61,691 53,604 74,116 89,959 74,334 69,523 81,231 -10, 000 20,000 30,000 40, 000 50,000 60,000 70,000 80,000 90, 000 100 ,000 2007 2008 2009 2010 2011 2012 2013 3Q13 3Q14Tot
al
C
AS
A
(I
DR
B
ill
ion)
248 479 716 685 677 771 1,130 1,175 1,178 1,676 2,148 2,161 2,201 2,657 3,598 3,989 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14A
ver
age
#
of
Ca
sh
Ma
na
g
em
en
t
Tx
(000
),
t
ot
al
10
.7
Mn
tr
an
sact
ion i
n
3
Q
2014
*) *) E xc lud e M an di ri T ran sa ct io n S yst e m28
84 .6% Y o Y Gr o w th 16 .8 % Yo Y Gr o w th(30)
Growing Volume in Wholesale Transaction Business
Forex
34 42 63 61 46 44
281,153 310,512
322,795 399,500
226,687 250,183
-50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000
-10.0 20.0 30.0 40.0 50.0 60.0 70.0
Dec 10 Dec 11 Dec 12 Dec 13 Sep'13 Sep'14
Value (USD Billion) # of Trx
Wholesale Remittance
70 94 121 135 95 108
435,866 448,219
599,909 651,241
478,757
547,317
-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
Dec 10 Dec 11 Dec 12 Dec 13 Sep'13 Sep'14
Value (USD Million) # of Trx
29
Mandiri Cash Management*
549 818 1,5
1
9
2
,2
3
1
1
,620 2,196
2,503 7,668
13,676
24,543
18,116
30,730
-3,000 2,000 7,000 12,000 17,000 22,000 27,000 32,000
(200.0) 300.0 800.0 1,300.0 1,800.0 2,300.0
Dec 10 Dec 11 Dec 12 Dec 13 Sep 13 Sep 14
Value (IDR Trillion) # of Trx (000)
Trade Transaction : Export, Import, Domestic
*) Exclude Mandiri Transaction System
85 110 125 133 95 101
495,813 510,916 517,251
520,948
394,290 366,123
-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
Dec 10 Dec 11 Dec 12 Dec 13 Sep 13 Sep 14 Value (USD Billion) # of Trx
(31)
74.6 78 .8 74 .4 80 .4 75 .9
81.3 86.3 95
.5 88 .2 93 .4 98 .5 109 .6 107 .3 112.7 120 .4 134 .0 132.7 140 .6 146 .1 165 .0 157 .5
166.8 176.3 190
.9 179 .0 180 .8 184 .7 5.16.25.16.16.86.9
7.48.19.310.2
11.011.011.7 11.911.5
11.312.712.8 13.0
13.7 14.715.6
18.4 20.7
21.022.021.8
4.45.15.36.85.66.1
8.09.48.28.89.1
11.110.511.9 12.2
15.714.615.4 16.1
18.6 17.016.7
28.6 33.0
29.733.634.4
1.41.41.8 1.7 2.32.5 2.42.72.72.7 3.3 3.23.53.5 4.1 4.2 4.34.3 10.7 11.4
12.111.913.1
44.442.050.6
63.462.965.168.7
68.571.870.668.7
70.569.068.6 70.8
73.171.670.3 71.5 71.4 72.170.7 80.2 84.5 88.4100.1 108.3 5.05.1 5.4 7.77.47.4 7.56.86.05.7 5.85.85.35.2 5.2 5.35.05.0 5.1 5.0 4.74.6 6.4 7.0 6.3 7.0 7.2 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 1 Q '08 2 Q '08 3Q '08 4Q '08 1 Q '09 2 Q '09 3 Q '09 4 Q '09 1 Q '10 2 Q '10 3Q '10 4 Q' 10 1 Q' 11 2Q '11 3 Q' 11 4 Q' 11 1 Q' 12 2 Q' 12 3Q '12 4Q '12 1 Q' 13 2 Q' 13 3 Q' 13 4 Q' 13 1 Q' 14 2 Q' 14 3Q '14
Rp Savings Deposits FX Savings Deposits Rp Demand Deposits FX Demand Deposits Rp Time Deposits FX Time Deposits
Retail Deposit Rose by 15.2% Y-o-Y
Retail Deposit Analysis
–
Bank Only
2.5% 2.8% 4.2%
3.4% 3.3%
3.1% 2.5%2.3%2.4%2.8%
2.0% 2.2% 2.0%
2.0%2.0%2.0% 3.2%
3.0% 3.3%
2.5% 2.6%
2.1% 2.2% 2.4%1.8%
1.5% 1.6% 1.5% 1.6% 1.5% 1.5%1.6%1.5%1.5% 6.8% 6.3% 9.3% 9.5% 8.7% 7.2% 6.5% 6.9% 6.3% 6.5% 6.5% 5.7% 5.0% 4.9% 5.10% 4.90% 5.0% 5.5% 6.6%7.0% 7.26% 8.31% 0% 5% 10% 15% Rp DD Rp Savings Rp TD
Average Quarterly Deposit Costs (%)
2.4%
1.6%1.8% 0.9%
0.9% 0.1% 0.1%
0.1% 0.3%0.3%0.2% 0.2%
0.3%
0.3%0.3%0.3%0.3%
2.6% 2.9% 2.8%
3.7% 3.9%
3.0%
1.9%
0.3% 0.5% 0.4%
0.8% 0.7% 0.7% 0.5% 0.6% 0.8% 1.2% 1.2% 1.1% 0% 2% 4% 1 Q '08 2 Q '08 3 Q '08 4 Q '08 1Q '09 2 Q '09 3 Q '09 4Q '09 1 Q '10 2 Q '10 3 Q '10 4 Q '10 1Q '11 2Q '11 3 Q' 11 4 Q' 11 1 Q' 12 2 Q' 12 3 Q' 12 4 Q' 12 1Q '13 2 Q' 13 3 Q' 13 4Q '13 1 Q' 14 2 Q' 14 3 Q' 14
FX DD FX TD
63.5% 62.3% 61.4% 60.4% 62.5% 64.7% 63.4% 63.8%66.1% 63.3% 63.8% 64.9% 66.1% 66.5% 69.6% 70.1% 72.5% 71.6% 72.9% 71.9% 69.9% 68.8% CASA as % of total deposits
(32)
Increasing CASA Market Share Among Top Competitors
CASA
–
Bank Only
CASA Market Share (%)
31
319
.59
345
.62
30
6.00
32
5.24
260
.89
279
.87
BMRI -Jun 13
BMRI -Jun 14
Bank A -Jun 13
Bank A -Jun 14
Bank B -Jun 13
Bank B -Jun 14
36.35%
34.21%
29.44%
Jun-14
BMRI
Bank A
Bank B
36.05%
34.52%
29.43%
Jun-13
BMRI
Bank A
Bank B
Rp. 26.0 Tn
Rp. 19.2 Tn
(33)
60
,676
63
,323
6
6
,8
5
1
73
,324
81
,046
84
,675
91
,504
96
,268
1
0
5
,1
9
2
108
,434
118
,788
1
2
3
,8
3
3
130
,158
131
,857
140
,189
1
4
6
,7
4
4
27.7% 28.6%
27.6% 28.3%
29.6% 29.6%
29.8% 30.2%
30.9% 31.8%
31.7%
31.3% 31.2%31.8%32.6% 32.5%
20% 22% 24% 26% 28% 30% 32%
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
4
Q
2010
1
Q
2011
2
Q
2011
3
Q
2011
4Q 20
11
1
Q
2012
2
Q
2012
3Q 20
12
4
Q
2012
1
Q
2013
2
Q
2013
3Q 20
13
4
Q
2013
1
Q
2014
2Q 20
14
3
Q
2014
Retail to Total Loans
Building our High Yield Business in Retail Lending
Retail to Total Loans
Micro Credit Business Banking Consumer
Finance
32
(Rp Bn) Micro Credit
(Rp Bn) Business Banking
24,898 32,706
7,808
9M 2013 Growth 9M 2014
YoY 31.4%
43,743 51,595
7,852
9M 2013 Growth 9M 2014
YoY 18.0%
(Rp Bn)
55,192 62,443
7,251
9M 2013 Growth 9M 2014 YoY
13.1%
(34)
Strong
Mi
crofi
n
ance
Grow
th
200 300 502 687 697 713 754
600 800 800 878 928 1,027 1,028 1,072 1,110
10 152 480
710 760 751 738 739 739
2008 2009 2010 2011 2012 2013 1Q '14 2Q '14 3Q '14
Bra
n
ch
Unit
Ki
o
sk
271
430
562
694
815
889
910
945
972
2008 2009 2010 2011 2012 2013 1Q '14 2Q '14 3Q '14
Cus
tome
rs (
000
)
Ne
tw
or
k
# Of Ne
w
Cus
tome
rs
73,566 79,500 76,325 94,855 74,037 110,000 121,007 146,359 126,509 140,064 131,715 147,825 138,747 160,620 136,196 162,181 140,886 167,145 158,909
1Q '10 2Q '10 3Q '10 4Q '10 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
(35)
…as ell as Co su e Le di g, hi h ‘ose
13.1%
Y-o-Y as Auto Lending Remains Strong
34
13 ,500 14 ,268 15 ,523 1 6 ,4 6 6 17 ,779 18 ,764 2 0 ,1 1 3 20 ,919 22 ,818 24 ,092 26 ,135 27 ,357 2 6 ,9 9 5 26 ,690 26 ,50 5 26 ,347 3,957 3,964
3 ,979 3 ,9 4 9 3 ,887 3 ,777 3 ,6 7 9 3 ,571 3 ,471 3 ,365 3 ,312 3
,240 3,1
8 1 3 ,172 3,1 98 3 ,240 6
,374 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
3
,589 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 2 ,826 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 ,271 447
698 791
873 928 964
1,016 1,037 1,010
966 927
904
809 840 805 765 0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 25,000 27,500 30,000 32,500 35,000 37,500 40,000 42,500 45,000 47,500 50,000 52,500 55,000 57,500 60,000 62,500 65,000 4 Q '10 1 Q '1 1 2 Q '11 3 Q '1 1 4 Q '11 1 Q '12 2 Q '12 3 Q '12 4 Q '1 2 1 Q '13 2 Q '13 3 Q '1 3 4 Q '13 1 Q '14 2 Q '14 3 Q '14 Other Auto
Credit Cards Payroll Loans Home Equity Loans Mortgages
Loan Type
Growth (%)
Y-o-Y
Q-o-Q
Other
(14.78%)
(3.72%)
Auto Loans*
47.24%
8.24%
Credit Cards
42.70%
10.40%
Payroll Loans
19.98%
5.69%
Home Equity Loans
(0.01%)
1.29%
Mortgages
(3.69%)
(0.60%)
Total Consumer
13.14%
3.62%
Quarterly Consumer Loan Balances by Type
Consumer Loan Growth by Type
Rp64.4 tn
*Auto & Motorcycle Loans channeled or executed through finance companies = Rp 10.36 Tn in our Commercial Loan Portfolio
(36)
Enhanced Transaction Capabilities
Quarterly Transaction Volume (Mn)
Quarterly Transaction Value (Rp tn)
Quarterly Users (Mn)
* Inactive cards have been purged
122.9 142.0 141.9 148.1 168.1 186.2 189.4 204.0 226.6 218.1 222.3 232.9 236.3 231.3 243.5 246.1 42.338.641.740.8 43.040.7 44.7 45.3 39.1 45.4 43.8 51.0
7.9 11.615.015.421.3 25.4 26.2 27.3 34.5 30.833.0 57.4 61.6 70.0
8.316.5 26.6 31.8 49.7 68.5 77.8 84.7 85.3 66.7 66.8 76.7 75.5 85.3 81.0 87.8 88.7 -15 10 35 60 85 110 135 160 185 210 235 260 Q 1 '09 Q2 '09 Q 3 '09 Q 4 '09 Q 1 '10 Q2 '10 Q 3 '10 Q4 '10 Q 1 ' 11 Q 2 '11 Q 3 '11 Q 4 '11 Q 1 '12 Q2 '12 Q 3 '12 Q 4 '12 Q 1 '13 Q2 '13 Q 3 '13 Q 4 '13 Q 1 '14 Q2 '14 Q 3 '14 ATM Branch SMS Banking Internet Banking
35
77.1 95.5 97.1 107.5 130.8 147.7 153.8 159.9 170.0 177.3 179.3 184.1 191.2 197.0 192.6 206.4 208.11.4 2.1 2.62.9 5.0 8.8 5.5 5.5 8.3 9.2 10.514.925.3 28.3
4.8 7.1 8.7
11.716.321.5 23.5 25.6 26.8 28.7 29.432.2 33.3 36.0 33.334.5 0 20 40 60 80 100 120 140 160 180 200 220 Q 1 '09 Q2 '09 Q 3 '09 Q4 '09 Q 1 '10 Q 2 '10 Q 3 '10 Q 4 '10 Q 1 ' 11 Q2' 11 Q 3 '11 Q 4 '11 Q 1 '12 Q2 '12 Q 3 '12 Q 4 '12 Q 1 '13 Q2 '13 Q 3 '13 Q4 '13 Q 1 '14 Q 2 '14 Q 3 '14 ATM SMS Banking Internet Banking 9.95 7.20 7.67 8.068.35 8.72 8.17 8.96 9.24 9.65 9.99 10.16 10.57 10.89 11.10 11.39 11.59 11.65 11.82 2.16 3.17 4.21 4.614.61 5.08 5.29 5.47 5.63 5.74 5.80 5.97 6.09 6.21 6.33 6.45 6.55 1.111.21 0.921.011.03 1.16 1.21 1.26 1.31 1.36 1.39 1.46 1.51 1.56 1.62 1.681.72 0 2 4 6 8 10 12 14 Q 1 '09 Q 2 '09 * Q3 '09 Q 4 '09 Q1 '10 Q 2 '10 Q 3 '10 Q4' 10 Q 1 ' 11 Q 2 '11 Q 3 '11 Q 4 '11 Q 1 '12 Q2 '12 Q 3 '12 Q 4 '12 Q 1 '13 Q 2 '13 Q3 '13 Q 4 '13 Q1 '14 Q 2 '14 Q 3 '14 Debit Cards SMS Banking Internet Banking
(37)
Retail Payment system gaining Traction
36
Numbers of EDC
Fee Income from e-channel Tx (Bn)
52.1 89.4 126.2
200.3 258.2
315.2 347.6 414.7 65.5 98.5
166.6 196.5
285.7 318.6
382.0 490.3
81.9 110.5
194.5 249.3
313.9 361.8
437.5 489.2
89.0 117.8
223.7 268.5
312.8 464.4
512.9
2007 2008 2009 2010 2011 2012 2013 2014
Q4 Q3 Q2 Q1
19.5% YoY Growth
23,690
27,61133,732 47,127
92,903 180,532
230,352 240,468
250,043 262,855
2007 2008 2009 2010 2011 2012 2013 Q
1
2014
Q
2
2014
Q3
2014
Volume Mandiri Business
Saving Account (Tn)
3.5 4.8 8.0
17.7 34.7
59.4 85.8
73.7 87.8
2007 2008 2009 2010 2011 2012 2013 Q
3
2013
Q
3
2014
19.2% YoY Growth
(38)
Making Inroads into SME and Retail Payments
# SME Business w/ Mandiri Acc
# MTB Transaction & Volume
37
Fiesta Point Program
A program to get points based on savings average balance and #of transactions through e-channel or branch, so that the 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 to the national lucky draw.
Belanja Hoki/ Dagang Hoki Program
Co-promotion with the ITC Group for the merchant and the buyers who transact in ITC by using Mandiri Debit and also a reward program for the building management.
# MIB Transactions & Users
543,972643,334
787,330
2012 2013 2014
2
0
1
,1
0
6
212
,844
2
6
1
,9
3
5
265
,423
272
,212
290
,019
3
0
6
,8
3
1
9,235
10,601 11,385
12,616 12,773
14,068 14,508
-3,000 6,000 9,000 12,000 15,000 18,000
-50,000 100,000 150,000 200,000 250,000 300,000 350,000
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 # of Volume # of Transactions (000)
1,3
52
1
,752 1,871 1,5
8
1
1
,267 1,3
8
6
1
,538
33,263 38,919
44,161 48,490
51,618 54,856
59,910
Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14
(39)
403 599 549 673 820 742 769 946 796 892 712 667 695 850 726 774 611 832 1,314 1Q '10 2Q '10 3Q '10 4Q '10 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
AXA
Man
di
ri
Fi
nan
ci
al
Servi
ces
Performance
38
N e t Pr o fi t Af ter Ta x (i n Bn ) An n u al Fi rs t Yea r Pr em iu m (AFY P) (i n Bn ) # Of P o lic yho ld er s 89 90 245 235 171 183 237 255 258 234 262 259 298 270 269 256 348 297 316 1Q '10 2Q '10 3Q '10 4Q '10 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 '14 710,481 810,604 892,582 1,518,536 1,602,778 1,638,543 1,695,242 1,744,124 1,790,508 1,858,702 1,878,121 1,918,703 1,966,698 2,032,635 2,122,563 2,216,648 2,354,395 2,479,161 2,656,672 1Q '10 2Q '10 3Q '10 4Q '10 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 25 .2 % Yo Y Gr o w th 17 .3 % Yo Y Gr o w th 80 .9 % Yo Y Gr o w th(40)
InHealth
–
Opportunity to Increase Fee Income and
Contribute to the Insurance Portfolio
39
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 nearly 6,000 healthcare providers and recorded over Rp. 704 billion in claims year to date 2014
• Ba k Ma di i ill le e age the hospital et o k as I Health s partner to increase transactions through enhanced cash management products
• Bank Mandiri also will provide retail packaged products for all the do to s as I Health s pa t e
InHealth earned premium payments of Rp. 1.106 trillion in 2014 year to date from clients. Going forward, Bank Mandiri will encourage the use of cash management products through Bank Mandirisdistribution channel and cross-sell other product to over 1.1 million InHealth member
692
,831
1,0
23
,22
8
1
,175
,240
1
,118
,206
1
,141
,896
1
,136
,361
5,501
6,242 6,314 6,262
6,094 6,132
5,000 5,200 5,400 5,600 5,800 6,000 6,200 6,400
-200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000
2009 2010 2011 2012 2013 9M'14 Total Member # of Providers
36 78 47 107 120 94 154
203 811
1,073 1,203
1,410
1,112 1,106
0 20 40 60 80 100 120 140 160 180
-200 400 600 800 1,000 1,200 1,400 1,600
2009 2010 2011 2012 2013 9M'13 9M'14 Profit (Rp Bn) GWP (Rp Bn)
(41)
40
Operating Performance
Highlights
(42)
41
Corporate + Institutional Banking:
Contribution Margin increased on provision
Rp bn
Rp bn
Performance to Date: 9M 2014
Contribution Margin (Profit Before Tax)
Strategies for 2014
1. Focusing on Anchor Clients
and penetrating through
using of Transaction
Banking
2. Account Plan
implementation for top 100
Corporate Banking
Customers.
3.
P o ide o e stop se i e
solutio s fo usto e 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
Sekuritas to ease customers
in capital market
2,730
1,659
771 585
4,574
317 4,891
1,075
393
1,088 1,375 1,557 824
954
1,403
1,717 1,663 416
1,187
1,385
1,311
1,671
1,011 1,035
1,438
1,829
2010 2011 2012 2013 2014
Q1 Q2
Q3 Q4
11.1%
4,891
3,326
3,910
3,569
(43)
Mandiri Sekuritas
fi a ial pe fo a e
42
(Rp Bn)
9M 2014
9M 2013
Y-o-Y
(%)
Revenues
471
378
25%
•
Investment Banking
85
78
10%
•
Capital Market
242
192
26%
•
Proprietary
43
21
108%
•
Investment Mgt
101
87
16%
)
Operating Expenses
311
265
18%
Earnings After Tax
96
74
21%
Equity Transactions
–
bn
100.130
90.899
10%
SUN Transactions - bn
57.730
38.479
50%
Equity & Bonds
Underwritten
–
bn
5.737
8.852
(35%)
ROA
6,6%
7,2%
(8%)
(44)
43
1.Optimize Off-Shore Branches
as a regional treasury
transaction distribution
channel.
2.
Refocusing on retail FX
Transaction.
3.
Developing Sharia Custody.
4.Increasing our presence as
main correspondent bank in
Indonesia.
5.
Maintain NPL ratio with
effective restructuring and
joint effort with Business
Unit.
6.
Optimize off balance sheet
accounts through auction
and legal action.
7.
Joint planning session and
joint monitoring
implementation.
8.
Creates nation-wide vendor
accreditation.
Treasury, FI & SAM
•2010 – 2012 : Including collection from SAM and excluding International branches (except Cayman)
•2011 Including collection from Garuda Indonesia (non recurring)
1,681
3,182
412
4,433
492
4,925
17.55
455 724
3,091
1,159 1,548 1,389
348
1,338 389
1,163
1,396 1,832
316
1,247 954
911
1,660
1,705
263
1,540
1,660
2,371
1,765
2009 2010 2011 2012 2013 2014
Q1 Q2
Q3 Q4 7.0%
4,848
1,382
6,094
Performance to Date: 9M 2014
Contribution Margin (Profit Before Tax)
Strategies for 2014
Rp bn
Rp bn
5,605
6,369
(45)
Commercial Banking:
Strong revenues from Assets
1. Support Bank Ma di i sWholesale
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
f o e usto e s a d a agi g NPLs.
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. P o ide ui k a d eas se i es fo small business customers by
increasing distribution channels in
la k spot a ea a d i p o i g s all
business model and process
5. Effective Alliance in units based on customer base in Commercial and Small segment, especially in developing value chain business.
Performance to Date: 9M 2014
Contribution Margin (Profit Before Tax)
Strategies for 2014
Rp bn
Rp bn
44
4,391 449
1,068 902
5,006
1,520
3,486
923 939 1,010
1,776 1,833
976
946 1,176 1,314
2,024 1,800
1,264
1,166 1,174 1,057
1,907
1,511
1,246
1,094 1,420
1,677
2,159
1,519
2009 2010 2011 2012 2013 2014
Q1 Q2 Q3 Q4
-incl CM of Small Business - In Dec 2012 incl. CM BSM
-- In Dec 2014 Resegmetation Top 150 o ligo a d No De to s Fu di g
(32.2%)
6,662
4,449
4,709
5,058
7,866
(46)
Commercial Banking :
Stronger Platform & Improved Distribution Capability
45
Expanding Scope of Distribution, 2014
Solid & Stable Source of
Low Cost Funds
Product Q3
2014
Q3
2013 Growth
Demand
Deposit 9.29 9.86 (5.78%) Rupiah 4.66 4.37 (6.64%)
FX 4.63 5.50 (15.8%)
Saving
Deposit* 0.77 0.79 (2.53%) Total CASA 10.06 10.66 (5.63%)
Total Funding 15.53 13.79 12.6%
Rp Tn **
CASA Ratio = 64.8%
Funding from Java & Bali = 72.8% of total funding
Sumatera Loans = Rp 18,6 tn
Funds = Rp 2.8 tn
Kalimantan Loans = Rp 6.6 tn Funds = Rp 1.1 tn
Eastern Loans = Rp 3.1 tn Funds = Rp 0.3 tn
Java and Bali Loans = Rp 99.3 tn Funds = Rp 11.3 tn
* Business Savings Product ** excl. BB
CBC = 24 Unit Floor = 25 Unit
Q3 2014 : exclude funding from Non Debtors Q3 2013 : include funding from Non Debtors
(47)
Business Banking :
46
BBCBB Floor
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
BBC : 46 BB Floor : 95 BB Desk : 109
Mandiri Business Lounge : 68
Expanding Scope of Distribution, 2014
Solid & Stable Source of
Low Cost Funds
Product Q3 2014
Q3
2013 Growth Demand
Deposit 1,84 1.88 (2.13%) Saving
Deposit* 2.04 2.15 (5.1%) Total CASA 3.88 4.03 (3.72%) Total
Funding 5.04 4.47 (12.75%)
Rp Tn**
CASA Ratio = 76.9%
Funding from Java & Bali = 59.5% of total funding
Sumatera Loans = Rp 13.9 tn
Funds = Rp 0.9 tn
Kalimantan Loans = Rp7.6 tn Funds = Rp 0.6 tn
Eastern Loans = Rp 6,3 tn Funds = Rp 0.5 tn
Java and Bali Loans = Rp 24.2 tn
Funds = Rp 3.0 tn
•Business Savings Product
** Exclude mirroring with MRB Directorate
Q3 2014 : exclude funding from Non Debtors Q3 2013 : include funding from Non Debtors
(48)
47
Str
ong
gr
o
wth fr
om
Bank
Sy
ari
ah
Man
di
ri
Sy
ari
a
h
Fi
n
an
ci
ng
(
Rp
tn
)
Fi
n
an
ci
a
l P
er
for
mance
(Rp
bn
)
FY ’ 08 FY ’9 FY ’ FY’ FY’ FY’ Q ’ Q ’ Fi n an ci n g 13,278 16,063 23,968 36,664 44,755 50,460 49,602 49.323 De p o si ts 14,899 19,338 28,999 42,618 47,409 56,461 55,170 57.566 A ss e ts 17,066 22,037 32,482 48,672 54,229 63,965 62,787 65.368 E A T 196.42 290.94 418.52 551.07 805.69 651.24 150.1 275 R ati o s: R O A ( % ) 1.83 2.23 2.21 1.95 2.25 1.53 0.66 0.80 R O E ( % ) 21.34 21.40 25.05 24.24 25.05 15.34 6.26 7.63 G ro ss N PF 5.66% 4.84% 3.52% 2.42% 2.82% 4.32% 6.46% 6.76% 6.3% 6.3% 6.6% 6.2% 6.2% 6.4% 6.6% 6.0% 5.9% 6.9% 7.5% 6.9% 6.9% 7.0% 7.3% 7.1% 7.3% 7.2% 7.3% 8.1% 6.2% 6.0% 4Q '07 4Q '08 4Q '09 1Q '10 2Q'10 3Q'10 4Q'10 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 12.4% 13.5% 13.0% 12.4% 13.0% 12.3% 12.5% 12.7% 12.7% 12.0% 12.1% 12.1% 12.3% 13.3% 13.2% 13.2% 13.0% 11.5% 12.0% 12.2% 12.4% 12.3% 12.4% 12.1% 12.0% 11.1% 11.1% 11.0% 5.4% 5.4% 5.3% 5.3% 5.7% 6.2% 5.9% 5.8% 5.6% 4.7% 4.9% 5.0% 5.1% 5.0% 5.5% 5.4% 5.2% 4.5% 4.7% 4.5% 4.5% 4.6% 4.0% 4.0% 4.1% 4.4% 4.5% 4.5%Ne
t
In
ter
es
t M
ar
gi
n
&
Cos
t of
Fund
s
Yo ACoF NIM
10.31 13.28 16.06 17.65 19.87 21.44 23.97 27.09 30.01 34.41 36.73 37.44 39.93 41.82 44.50 46.30 48.40 49.70 50.46 49.82 49.60 49.32 4Q '07 4Q '08 4Q '09 1Q '10 2Q'10 3Q'10 4Q'10 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 Fi na n ci ng 91.1% 89.1% 83.1% 83.9% 85.2% 86.3% 82.7% 84.1% 88.5% 86.3% 86.2% 87.2% 92.2% 93.9% 93.9% 95.6% 94.2% 91.3% 89.4% 90.3% 89.9% 85.7% FDR
(49)
48
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.,
pre-paid) as well as e-channel
transactions in order to
i
ease usto e s lo alt
and balances.
3.
Continue to develop
integrated
branding, marketing strategies
and comprehensive
distribution strategy
(ATMs, Branches, EDCs
located at optimal locations)
Micro & Retail Banking:
Rapidly growing our high margin business
Contribution Margin (Profit Before Tax)
Strategies for 2014
Performance to Date: 9M 2014
Rp bn
Rp bn
1,126 761 981 965 1,237
3,252 855
583 842
1,081 1,391
3,086
449
877
1,033 1,170
1,867
3,482
722 899
1,311 1,242
2,259
2009 * 2010* 2011 2012 2013 2014** Q4 Q3 Q2 Q1
*Including Small Business **Resegmentation
4,167
118.5%
3,152 3,120
4,458
6,753
9,820
2,688
10,607 4,024
6,401
10,917 1,097
(50)
49
Consumer Finance:
Significant growth in spread and fee income
1.
Develop clear portfolio
strategy, targeted to key
customer segments
2.
Differentiate acquisition
strategy by markets
3.
Increase existing sales
executive productivity
4.
Strengthen Consumer Loan
organization structure to
support the achievement of
business target, internal
portfolio growth and the
increasing proportion of
market share
5.
Focusing in branch as main
channel acquisition for credit
card and personal loan
6.
Increasing alliance with other
Business Units to support the
achievement of business
targets
Performance to Date: 9M 2014
Contribution Margin (Profit Before Tax)
Strategies for 2014
Rp bn
Rp bn
252 476
496
770 728
392 355
455 486
715 705
567 413
526 531
729
576
636
489
474
693
772
525
2009 2010 2011 2012 2013 2014
Q1 Q2
Q3 Q4
2,535
(20.6%)
1,926
2,205
2,987
1.595
1,509
1,899
1,121
727
2,293
718
(51)
Mandiri Tunas Finance:
Total Financing YTD of Rp10.8Tn
50
Total Disbursement and the Breakdown
for Joint Financing and Non JF
Breakdown of Financing
3Q 2014 Performance
(Rp Bn)
3Q
2014
3Q
2013
Change
Loans 19,681 14,697 33.91%
Net Income (after tax) 175.3 135.23 29.63%
Approval Rate (%) 88.75% 89.89% -1.14%
Disbursement 10,784 8,611 25.24%
NIM (%) 2.47% 2.55% -0.07%
ROA (%) 4.89% 4.63% 0.26%
ROE (%) 30.74% 30.85% -0.12%
CER (%) 44.21% 44.37% -0.15%
NPL (%) 1.68% 1.74% -0.06%
375 566 852 966 1,146 587 302 78 257 576 884 761 1,054 101,1 1,016 523 1,506 1,199 1,409 398 341
425
606
694 1,3 06 1,369 1,656 1,530
1
,592
981
1
,771 1,478
1,7 28 2 ,224 2 ,456 2,0 56 2
,408 2,206
Q 1 '10 Q 2 '10 Q 3 '1 0 Q 4 '10 Q 1 '11 Q 2 '11 Q 3 '11 Q 4 '1 1 Q 1 '12 Q 2 '12 Q 3 '1 2 Q 4 '12 Q 1 '13 Q 2 '1 3 Q 3 '13 Q 4 '13 Q 1 '14 Q 2 '14 Q 3 '1 4 JF Non JF
405 539 806 1,101 1,370 1,364 1,245 1,355 1,3
53
1
,609 1,420 2,0
75
2
,105 2,416 2,871 2,6
78
3
,290 3,374 3,3
98
309
306
351
372
350 422 342 312 373
486 396 401 372 345 289 232
208 162 149
61 79
118 99
118 109 84 67 60
72 49 56 56 76 80 70
64 70 68
Q 1 '10 Q 2 '10 Q 3 '1 0 Q 4 '10 Q 1 '11 Q 2 '11 Q 3 '1 1 Q 4 '11 Q 1 '12 Q 2 '1 2 Q 3 '12 Q 4 '12 Q 1 '13 Q 2 '13 Q 3 '13 Q 4 '1 3 Q 1 '14 Q 2 '14 Q 3 '1 4 Motorcycle Used Car New Car
(52)
51
Supporting
Materials
(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 225 TnRevenue Market Share: 14–16% ROE: >25%
Gross NPL: <4%
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 Growth 9M (Whole
Group): Rp45.2tn (25.7% YoY)
•
Profit from Subsidiary:
Rp1.68tn (11.1% of EAT)
•
9M Revenue Wholesale vs
Retail : Rp 12.3tn vs Rp 22.6tn
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 Rp2.7tn. +21% YoY
•
JV with Tunas Ridean (MTF). Total
Financing Rp3.6tn. 12% YoY
•
InHealth
partner BPJS
(55)
10,100
3,548
6,391
7,257
Net Interest Income Fee-Based Income Overhead Expenses & Others
Pre-provision Operating Profit
3Q 2014 operating profit decreased by 2.0% from 3Q 2013
on higher NII
3Q 2014
Notes :
1. Fee based income excluding gain on sale & increasing value GB & securities 2. Overhead expenses + others excluding provisions
3Q 2013
Rp billion
Lower 2.0%
8,978
3,913
5,483
7,408
Net Interest Income Fee-Based Income Overhead Expenses & Others
Pre-provision Operating Profit
Rp billion
(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
(1)
102
Measur
es
of s
cal
e and
retur
ns rel
at
ive t
o
peers
Bank Onl
y,
As
of June
2014
31.0% 28.2% 24.6% 24.5% 22.6% 16.9% 15.6% 12.2% 10.2% 4.0% BRI Danamon BCA Mandiri BNI Panin CIMB Niaga Permata BTN BII 2,087 1,984 1,552 1,540 1,062 887 795 604 504 424 Mandiri BRI BNI Danamon BCA CIMB Niaga BTN Permata Panin BII 8.9% 7.3% 6.5% 6.0% 5.9% 5.4% 4.5% 4.1% 3.8% 3.5% BRI Danamon BCA BNI Mandiri CIMB Niaga BTN BII Panin Permata 86,389 67,533 34,442 26,469 22,355 14,615 10,447 8,450 7,691 7,500 BRI Danamon Mandiri BNI BCA CIMB Niaga Panin BTN Permata BIIB
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
(%)
4.9% 4.9% 3.8% 3.5% 3.3% 2.5% 2.2% 1.3% 1.1% 0.5% Danamon BRI BCA Mandiri BNI CIMB Niaga Panin Permata BTN BIIR
e
tu
rn
on
As
se
ts
(B
e
for
e
Ta
x)
(%)
19,073 14,528 11,604 11,221 3,044 1,806 1,524 1,483 963 936 BRI BCA Mandiri BNI CIMB Niaga BTN BII Danamon Panin PermataA
TMs
A ver ag e(2)
Notes
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(3)
Notes
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(4)
Notes
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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
ANDALAN ARTHA ADVISINDO SEKURITAS Adriana Indrajatri Suwono 6221-299-16600 [email protected]
BAHANA SECURITIES Teguh Hartanto 6221-250-5081 [email protected]
BANK OF AMERICA MERRILL LYNCH Tay Chin Seng 65-6591-0419 [email protected]
BARCLAYS CAPITAL Anish Tawakley 91-2267196016 [email protected]
BNP PARIBAS Igor Nyoman 6221-2358-4947 [email protected]
CLSA LIMITED Jayden Vantarakis 6221-2554-8834 [email protected]
CIMB SECURITIES Hadi Soegiarto 6221-515-1330 [email protected]
CITI INVESTMENT RESEARCH Salman Ali 6221-5290-8548 [email protected]
CREDIT SUISSE Sanjay Jain 852-2101 6088 [email protected]
DANAREKSA SEKURITAS Eka Savitri 6221-29-555-777 [email protected]
DBS VICKERS SECURITIES Lim Sue Lin 603-2711-0971 [email protected]
DEUTSCHE VERDHANA SECURITIES Raymond Kosasih 6221-318-9523 [email protected]
GOLDMAN SACHS (ASIA) Ben Koo 65-6889-2483 [email protected]
HSBC LTD Kar Weng Loo 65-6239-0654 [email protected]
INDO PREMIER SECURITIES Stephan Hasjim 6221-57931168 [email protected]
J.P. MORGAN ASIA Harsh Modi 65-68822450 [email protected]
KIM ENG SECURITIES Rahmi Marina 6221-2557-1188 [email protected]
MACQUARIE CAPITAL SECURITIES INDONESIA Nicolaos Oentung 6221-515-7308 [email protected]
MORGAN STANLEY Mulya Chandra 6221-3048-8125 [email protected]
SANFORD C. BERNSTEIN Kevin Kwek 65-6230-4650 [email protected]
STANDARD CHARTERED BANK Diksha Gera 65-6596-8517 [email protected]
UOB KAY HIAN Sonny John 6221-2993 3917 [email protected]
(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: [email protected] http://ir.bankmandiri.co.id Corporate Secretary Tel: +62 21 524 5740 Fax:: +62 21 526 8246