07 28 2011 Q2 Presentations FINAL

PT Bank Mandiri (Persero) Tbk
Q2 2011
Results Presentation

July 28th, 2011

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BMRI

JCI

July-05

1000%

July-04

1100%

900%

800%
700%
600%
500%
400%
300%
200%
100%

July-10

July-09

July-08

July-07

July-06

-100%


July-03

0%

Bank Mandiri Presentation Contents
Results Overview

Page #

















2011 Highlights

3-4

SBU Performance Hightlights

5-6

Loan Growth & LDR

7-8

NIM, CER, NII

9-11


Summary P&L

12

CAR, ROE, PAT

13

Strategy Overview

14

Deposit Franchise Development

15-18

Retail Value Chain

19-20


High-Yield Lending Activities

21-23

Microfinance

24-25

Wholesale Lending and Product Holding

26-28

Strategic SBU Alliances & Subsidiaries

29-32

NPL Movement

33-35


Operating Performance Highlights
Supporting Materials

2

Bank Mandiri continues to become I do esia s Most Admired
Financial Institution
# of Accounts
• Deposits 11.3 Mn
• Loans 1.03 Mn

e-Channel Trx
• 539 mn in 1H
• 32,6% Growth

Retails Loans (1)
• Rp 68.5 Tn
• 28.3% of Loans


(1) Small Business, Micro and Consumers
(2) Exclude MTS

# of new Accounts
• Deposit 1.68 Mn
• Loans 260,000

# of Cards Issued
• Credit 2.16 mn
• Debit 8.7 mn
• Prepaid 969,447

Subsidiaries Income
• Total Rp 686 bn
• Sum of income of 5
subsidiaries ( 10.8 %
of EAT)

# of Outlets
• 1,442 Branches

• 1,566 Micro Outlets
• 8,480 ATMS

Cash Management
• 9,514 Customers
• 3.6 Mn Trx in 1H
2011 (2)

Alliances (total)
• Card From Alliances
215,376 cards
• Payroll Loans 268.000
accts

3

Key Financial Highlights
Bank Ma di i s 6-Month 2011 Performance continued to demonstrate marked
improvements in several key indicators:
H

Loans

H

%

Rp218.0 tn

Rp276.7 tn

26.9%

0.62%

0.58%

(6.5%)

2.54%


2.42%

(4.7%)

57.3%

57.7%

0.8%

Rp187.1 tn

Rp209.4tn

11.9%

NIM

5.01%


5.20%

3.8%

Efficiency Ratio

43.31%

37.33% 1)

(13.8%)

Earnings After Tax

4,034 bn

6,323 bn

56.7%

Net NPL Ratio
Gross NPL Ratio

Low Cost Funds Ratio
[Low Cost Funds (Rp)]

1) Excluding

Garuda Recovery, CER 40.45%

4

Maintaining momentum for growth
Loans by SBU*
(Rp Tn)
250
240
230
220
210
200
190
180
170
160
150
140
130
120
110
100
90
80
70
60
50
40
30
20
10
0

Total
Micro
Comm

186.2tn
Small
Int'l

Deposits by Product – Bank Only
(Rp Tn)

Y-o-Y

236.3tn

Cons
Corp
7.3

7.7

8.5

41.2%

25.8

33.4%

6.5 22.7 23.3
34.3
6.0 20.5
19.3
5.4 5.6
30.7 32.4
28.6
5.1 17.1 17.7
4.8
26.7
4.4 4.6 15.5 16.3
23.6 24.7
14.8 14.1
70.1
21.7
20.6
63.8 64.7
19.3 19.7
57.5
53.1
49.1
1.5
43.6 49.1
41.6 40.6 41.9
1.4 1.6
0.4 1.3
0.2
4.2 4.5
4.4 4.4 4.4

84.2 85.4 85.1
74.5 80.7
62.0 64.1 65.8 68.8 69.8

96.2

Total

26.9%

28.5%

32.0%

285.5%

19.2%

Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

340
320
300
280
260
240
220
200
180
160
140
120
100
80
60
40
20
0

FX Time
FX Demand
FX Savings

Rp Time
Rp Demand
Rp Savings
14.9

21.4

18.1

97.9

51.8
7.4

19.5
43.0
8.2

17.5 20.3
51.8
45.4 43.7
8.3

2.1%

132.8 126.3 122.8

3.8%

21.0 24.2 21.4

(2.8%)

43.5 42.4 45.4

0.7%

11.2 10.5

113.7

118.3 114.4

101.5

18.0
15.1

11.4

9.8

16.5
108.5

91.9

8.7%

11.9

16.2

95.7

328.4tn

302.1tn

11.2

Y-o-Y


8.7

9.7

21.2 22.0 21.7

37.7
45.8 45.0
11.7 12.3 12.7
11.6
9.9 10.8

111.9 109.2 114.7
96.8 89.5 94.7 100.0
82.2 77.2 82.8 87.3

17.2%

21.1%

Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

*Loans from Treasury & International have been reallocated to Corporate following
the reorganization in early 2010

5

Balanced Earnings from All Business Units
(Rp bn)

% of Total
1,396

Corporate +
Institutional

Liabilities Spread

Asset Spread

NII (Net Interest Income)

(Rp bn)

(Rp bn)
810

18.46%

(Rp bn)

586
1,319

1,834

Fee Income

% of Total

273

514

11.12%

279

4.74%

19.84`%
2,168

Comm &
Business
Banking

Treasury, FI &
SAM ^^

2,508

527

5.70%

2,816
3,135

37.23%
33.92%
11.05%

Consumer
Finance

836

Q2 '09

233

Q2 '11

409

371

11.89%

292

115

622

10.56%

622

25.33%

156

2,821

320

2,496
720

47.90%
45.77%

1,124

2,415

29.67%

1,747

5.89%
829

13.40%

1,239

682
2,098

27.14%
4.60%

348

Micro & Retail
*

1,486

28.66%

7
1,230

Q2 '09

145

9

Q2 '11

7.13%

420

Q2 '09

Q2 '11

Q2 '09

*MRB in 2008: still includes Business Banking ^^ Treasury in 2008 inc Int Branches, exc SAM 10 inc SAM & Cayman

Q2 '11

6

LDR increased to 75.9% on loan growth of 26.9%…
Quarterly Loan Data – Consolidated

Quarterly Loan Segment Details – Bank Only

Loans (Rp tn)

75.9%
70.2%
67.6%

LDR (%)
62.2%

59.2%

57.2%

66.3%

61.4%

103.1

Corporate
Commercial
Small
Micro
Consumer

93.6
79.7

76.4

82.0 82.7
70.7
64.7 64.4

53.7%
53.6

42.5%

40.2 38.2 42.3

35.4%
26.3%

32.6

276.7
251.8
246.2
231.9
218.0
201.9
198.5
188.3
181.6
175.2
174.5
138.5
117.7
106.9
94.4
75.9
65.4
48.3
43.0

34.3

17.4

5.1

5.4

19.7

7.7 8.5

7.3
6.0

Q2 '11

Q1 '11

Q4 '10

Q3 '10

Q2 '10

Y-O-Y Growth
(%)

% of Portfolio

Corporate

103.06

16.23%

42.52%

Commercial

70.70

30.34%

29.16%

Small

25.87

31.48%

10.67%

Micro

8.52

41.18%

3.52%

Consumer

34.25

28.50%

14.13%

242.41

24.13%

100.00%

Total

25.9

22.8

Loans
(Rp tn)

QoQ Growth (%)

YoY Growth (%)

16.6

Q1 '10

2.27%

32.4

24.5

Q4 '09

5.45%

4.8

Q3 '09

1.37%

9.90%

4.4

Q2 '09

7.20%

6.19%

15.8

Q1 '09

3.66%

15.1

Q4 '08

7.94%

Q4 '07

26.94%

Q4 '06

0.16%

24.00%

13.78%

13.19%
10.29%

8.16%

Q4 '05

20.02%

17.73%

8.47%
4.60%

Q4 '04

24.69%

21.39%

13.79%

Q4 '03

24.31%

14.70%
13.70%

Q4 '02

Q2'11

Q1'11

Q4'10

Q3 '10

Q2 '10

Q1 '10

Q4 '09

Q3 '09

Q2 '09

Q1 '09

Q4 '08

Q4 '07

Q4 '06

Q4 '05

Q4 '04

Q4 '03

Q4 '02

Q4 '01

Q4 '00

By Segment
(Bank only)

30.53%
25.96%

12.40%

3.7

10.7 11.1
10.2
7.6
2.7
1.7

30.7

26.7

23.6
20.6 21.7

19.3
8.5

1.5

43.6 45.3

43.8

22.2

35.30%

1.70%

35.7

54.2

50.6

44.7

31.4

16.10%

92.5

88.7

As of June 2011; Non-consolidated numbers

7

Rp34.89 tn in loans disbursed in Q2 2011
Loan Disbursement by Segment (Rp tn) – Bank Only

Loan Movement (Rp tn) – Bank Only

9.58

3.49

0.58

0.33

34.89

3.60

242.41
2.54

221.48
3.64

10.05
34.89

15.06

Q1'11

Disburs.

Install.

Payment

FX Impact

Write-Offs

Q2 '11

Corporate

Commercial

Small

Micro

Cons Fin

Total

8

Q2 NIM of 5.4% on high Yield on Assets
Quarterly Net Interest Margins*

Quarterly Yields & Costs by Currency*
20%

Yield on Assets
Cost of Funds

IDR
15%

13.00%

14.1%
13.06%

11.01%
9.8%

7.18%
6.63%

6.24%

12.05%

6.46%

6.41%

6.26%
6.25%6.26%
5.94%

8.98% 5%

9.06%

9.27%

12.5%
11.75%

10.85%
10.26%
7.97%

7.42%

10.12%
9.53%

11.86%
10.79%

10%
10.65%

12.2%

13.2%

4.42%

4.2%

4.14% 4.31%

8.65%
0%

7.31%

Avg Loan Yield
Avg 1-Mo. SBI

6.44%
4.93%

FX

4.3%

NIM

3.9% 3.8%

Avg Bond Yield
Avg COF
7.2%

3.78%
6.6%

3.95%

3.77%
5%

5.6%

5.2%

5.8%

5.59%

5.1%

5.1%
4.90%

4.00%

3.76%

3.39%
2.57%

2.70%2.56%

2.72%
2.34%

5.4%
5.1%
5.8%
6.0%
5.2%
5.1%
5.3%
4.9%
5.3%
5.5%
5.4%
6.0%
5.5%
5.1%
4.7%
4.9%
3.6%
4.3%
3.7%
2.8%
3.9%

1.47%
0.83%

0%

0.75%

0.48%
0.30%

Q2'11
Q1'11
Q4'10
Q3 '10
Q2 '10
Q1 '10
Q4 '09
Q3 '09
Q2 '09
Q1 '09
Q4 '08
Q3 '08
Q2 '08
Q1 '08
Q4 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02

Q2 '11
Q1 '11
Q4 '10
Q3 '10
Q2 '10
Q1 '10
Q4 '09
Q3 '09
Q2 '09
Q1 '09
Q4 '08
Q3 '08
Q2 '08
Q1 '08
Q4 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
Q4 '01

9

Q2 Cost to Income Ratio of 37.3%
Quarterly Consolidated Operating Expenses & CIR*

Breakdown of Q2 2011 Operating Expenses

83.3%
CIR* (%)
Annual Avg CIR (%)

Growth (%)

Q

Q

Q
QoQ

YoY

Personnel Expenses

54.3%
42.3% 41.1% 40.6%

37.3%

40.1% 39.3% 39.0% 38.1%
35.1%
40.2%

1,562
1,547

1,612

1,485

1,375

1,306

1,328

1,019

1,390

1,116

1,165

1,158

1,005

869

1,197

1,309
1,241

456

459

0.6%

12.4%

Other Allowances

595

714

670

(6.2%)

12.5%

Post Empl. Benefits*

94

55

50

(8.7%)

(47.1%)

Training**

82

45

87

95.8%

6.8%

Subsidiaries

195

278

296

6.7%

51.7%

1,374

1,547

1,562

1.0%

13.6%

IT & Telecoms

198

167

185

10.8%

(6.8%)

Occupancy Related

321

312

444

42.4%

38.3%

Promo. & Sponsor.

230

140

282

101.3%

22.8%

Transport & Travel

83

83

102

23.3%

21.9%

Prof. Services

127

112

172

52.7%

35.5%

Employee Related

131

148

156

5.3%

19.0%

Subsidiaries

175

562

542

(3.6%)

209.8%

1,265

1,524

1,882

23.5%

48.7%

Total Personnel Expenses

1,882

1,524

1,682

Q2'11

Q1'11

Q4'10

Q3 '10

Q2 '10

Q1 '10

Q4 '09

Q3 '09

Q2 '09

Q1 '09

Q4 '08

Q3 '08

Q2 '08

Q1 '08

Q4 '07

Q4 '06

Q4 '05

408

G & A Expenses

1,459

1,265

1,051

1,384

1,110

1,004

827

1,148

916

1,034

769

993

1,016

842

G&A Expenses (Rp bn)

32.4%

Base Salary

Personnel Expenses (Rp bn)

*Excluding the impact of non-recurring interest income & bond gains

Total G & A Expenses

*VSS costs moved to Employee-Related in G&A in 2009
**Training Cost booked on G&A account

10

6M 2011 operating profit increased by 58.8% from
6M 2010 on higher NII & fee-based
6M 2010

6M 2011
Rp billion

Rp billion

3,552
6,114

5,773

6,760

Up
58.8%
1,401

39.2%

9,369

11,997

*

7,148

Net Interest Income

Fee-Based Income Overhead Expenses &
Others

Pre-provision
Operating Profit

9,950

Net Interest Income

Fee-Based Income

Overhead Expenses &
Others

Notes :
1. Fee based income excluding gain on sale & increasing value GB & securities
2. Overhead expenses + others excluding provisions
*Excluding non recurring income from Garuda Recovery Rp 9.950

Pre-provision
Operating Profit

11

Strong Revenue Growth
H1 2010

H1 2011

Y-o-Y

Summary P&L
% of Av.Assetsa)

Rp (Billions)

% of Av.Assetsa)

Rp (Billions)

 (%)

Interest Income

16,218

8.3%

18,121

8.1%

11.7%

Interest Expense

(7,156)

(3.7%)

(7,394)

(3.3%)

3.3%

-

-

1,614

0.7%

n/a

9,061

4.6%

12,341

5.5%

36.2%

– Other Fees and Commissions

2,349

1.2%

3,084

1.4%

31.3%

– Foreign Exchange Gains – Net

280

0.1%

311

0.1%

11.1%

– Gain from Increase in Value & Sale of Bonds

111

0.1%

63

0.0%

(43.2%)

– Others

925

0.5%

2,719

1.2%

n/a

Provisions, Net

(1,856)

(1.0%)

(2,365)

(1.1%)

27.4%

Personnel Expenses

(2,680)

(1.4%)

(3,023)

(1.3%)

12.8%

G & A Expenses

(2,316)

(1.2%)

(3,493)

(1.6%)

50.8%

Other Operating Expenses

(469)

(0.2%)

(1,215)

(0.5%)

159.1%

Profit from Operations

5,405

2.8%

8,422

3.7%

55.8%

Non Operating Income

79

0.0%

80

0.0%

1.3%

Net Income Before Tax

5,483

2.8%

8,502

3.8%

55.1%

Net Income After Tax

4,034

2.1%

6,323

2.8%

56.7%

Net Premium Income
Net Interest Income + Net Premium Income
Other Operating Income:

a) % of Average Assets on an annualized basis

12

ROE continues to increase, supported by strong Capital
Capital & RWA Movement
IDR bn

26.2%
23.6%
22.8%
21.5%

21.1%

18.1%
22.1%
15.8%
Q4 PAT
Q3 PAT
Q2 PAT
Q1 PAT

10.0%
2.5%

3,780

2004

2,543

2,003

1,400

2,031

1,526

1,390

1,744

1,221

1,549

610 372
97 305
519 510
(623)

1,345

1,234

1,329

1,528
690

602
1,168

1,300

51.8

35.7

30.5

27.2

28.3

28.4

27.4

308

799
1,017

112.2

115.9

645
967

27.5

25.5

17.0

42.6
13.3

58.1 15.4

72.5

91.9

108.9

134.0

15.7%

1,166 1,040 1,113 1,027

819

2,352

14.7%

2,536 1,693

1,390

775
1,408

172.9

195.8

19.2%

2,833

242.4

23.4%

25.3%
25.3%
23.7%

269.5

26.4%

24.3%

2009

27.7%

RoE - AT

2008

CAR*

2003

31.3%

Profit After Tax & ROE

* Credit Risk Only; CAR inclusive of Market & Operational Risk is 16.65%

2011

2010

2007

2006

2005

Total Capital (Rp tn)

2002

RWA (Rp tn)

2001

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

13

Strategy focus on 3 areas of highest potential:
Wholesale Transactions, Retail Payments & High Yield Loans
Pillar 1

Pillar 3

Pillar 2

Strengthen leadership in
wholesale transaction banking
 Comprehensive financing &
transaction solutions
 Holistic relationship approach
for leading Indonesian
institutions

Be the retail deposit bank of
choice
 Win through differentiated
customer experience and
targeted propositions
 Deploy innovative payment
solutions

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









Total Wholesales Fees Rp
1.2 Tn *)
Total Wholesale Low Cost
Deposits Rp 54.9 Tn



Total Retail Fees of Rp 2.4
Tn
Total Retail Low Cost Funds
Rp 139.2 Tn



Total Retail Loans of Rp
68.5 Tn
Assets Spread Rp. 2.7 Tn

14

*)Excluding collection extracomptable Rp1,794 bn

Deposits rose 8.7% Y-o-Y in Q2 2011
Deposit Analysis – Bank Only
Rp Savings Deposits

Average Quarterly Deposit Costs (%)

FX Savings Deposits

Rp Demand Deposits

FX Demand Deposits
Rp Time Deposits
Low-Cost Deposits (%)
54.1%

52.9%

57.2%

Rp DD
Rp TD

15%

FX Time Deposits

Rp Savings
1 Mo. SBIs

59.1%
57.0%

58.8%

57.1%

11.86%

56.5%

10.85%

10%

11.44%

10.41%
9.24%

9.90%

33.8%
32.9%
31.4%

8.20%

9.55%
8.70%

9.09%

7.97%

8.1%

7.41%
6.90%

5%

122.8

126.3

132.8

114.4

118.3

113.7

108.5

101.5

97.9

91.9

95.7

73.4

340
11.9
320
9.8 11.4
300
14.9 11.2 11.2 10.5
280
16.5
21.4
18.1
260
16.2
240
15.9
220
200
15.7 12.6
180
23.4 20.6
21.0 24.2 21.4
17.3
18.0
11.6
160
21.2 22.0 21.7
21.5
15.1
17.5 20.3
9.8
140
19.5
120
11.7 12.3 12.7
11.6
9.7
100
9.1
9.9 10.8
8.7
11.9 11.4
4.7 7.4 8.2 8.3
80
60
4.1
3.5
40
20
0

9.26%

8.25%

7.37%

6.78%

6.6%

6.29%

7.17%6.50% 6.53%6.91%
6.66%

6.49%

6.24%
6.33%
6.47% 6.41%

6.26%

4.78%
4.70%

4.23%
3.60%

3.47%
3.00%

3.24%

2.50% 2.53%

3.00%

3.76%
3.32%

3.41%
2.84%

2.75%

2.15%

3.5% 3.32% 3.48%

3.09%
2.46%
2.46%

2.7% 2.64%
2.49%

2.15%2.16%

2.35%
2.20%

2.28%

0%

45.4

42.4

43.5

37.7

45.0

45.8

51.8

43.7

45.4

43.0

50.4

51.8

93.2

80.5

100.7

30.1

28.0

114.7

109.2

111.9

100.0

94.7

89.5

96.8

87.3

82.8

77.2

82.2

81.5

57.6

45.2

52.0

24.829.6

31.222.1

31.1
18.0

28.8 40.6

33.6

87.8

106.9

66.5

80.5

FX DD

FX TD

6%
4.20%

4%

3.85%

3.87%
2.64%

2.43%
2.57%

2.99%

2%
2.20%

2.43%

1.12%

1.63%

0.96%

0.59%

0.52%

0.44%

0%

0.13%

Q2'11

Q1'11

Q4 '10

Q3 '10

Q2 '10

Q1 '10

Q4 '09

Q3 '09

Q2 '09

Q1 '09

Q4 '08

Q3 '08

Q2 '08

Q1 '08

Q4 '07

Q4 '06

Q4 '05

Q4 '04

Q4 '03

Q4 '02

Q2'11

Q1'11

Q4'10

Q3 '10

Q2 '10

Q1 '10

Q4 '09

Q3 '09

Q2 '09

Q1 '09

Q4 '08

Q4 '07

Q4 '06

Q4 '05

Q4 '04

Q4 '03

Q4 '02

Q4 '01

Q4 '00

15

Buildi g a st o g sa i gs deposit f a hise…
Transaction channel growth

Savings Deposit Growth
Savings Deposits (Rp tn)
As % of Total Deposits
National Share of Savings Deposits (%)

Other
85.4
82.5168.3
77.6 76.0 157.6
73.0 71.9 73.2 143.2
147.5
67.2 131.4129.9136.5
63.2 116.7
61.6 106.6
55.8 97.4
84.7

Payment
Transfer
Withdrawal / Inquiry
Avg ATM Daily Vol (000)

1,556.5

1,472.3

1,357.4

1,380.5

1,321.8

1,293.3

1,315.4

1,230.6

1,158.9

853.4

677.0

1,100.5

30.8
19.6

607.5

22.8%

29.2%

37.4
39.1
29.8
29.3

492.1

30.6%

49.6
55.0

1,043.4

34.6%
33.7%
33.4%
32.8%

38.4%
37.7% 37.3%
34.9% 37.1%
35.5%
34.5%
34.1%

Quarterly Call Center Trans. (000)
Quarterly SMS Trans. (000)

22.7%

18.5%
17.5% 17.2% 18.0%
17.3% 17.9%17.6% 17.3% 16.8%
16.9%
16.2%
16.0%
17.8%
17.3%
17.1%
12.8% 15.3%
11.6%
11.7%

17.3%

Q2 '11

Q1'11

Q4'10

Q3'10

Q2'10

Q1 '10

Q4 '09

Q3 '09

Q2 '09

Q1 '09

Q4 '08

Q4 '07

Q4 '06

Q4 '05

Q4 '04

Q4 '03

Q4 '02

Q4 '01

Q4 '00

Q2'11
Q1' 11
Q4'10
Q3 '10
Q2 '10
Q1 '10
Q4 '09
Q3 '09
Q2 '09
Q1 '09
Q4 '08
Q4 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
Q4 '01
Q4 '00

139.15
121.49
123.50
111.59
105.50
99.38
106.45
95.95
91.11
85.39
89.61
81.54
57.60
45.20
52.00
40.50
29.59
22.12
17.96

64,090
57,583
53,817
51,751
47,705
44,512
42,546
39,569
33,502
25,819
22,328
16,974
11,575
6,988

11.0%

3,258
3,084
3,216
3,454
3,335
2,976
2,822
2,780
3,165
2,955
3,009
2,988
1,722
1,086
1,016
6793,072
271,069

16

…th ough e ha ed t a sa tio

Quarterly Transaction Value (Rp tn)

Quarterly Transaction Volume (Mn)
170

168.1

apa ilities

125

124.1

Quarterly Users (000s)
12,000

157.3
117.8
142.0 141.9

145

148.1

10,006

105

10,000
95.5

122.9

120

97.1

107.5
8,828

8,059

85

110.1

8,717

8,000

77.1

7,202

99.8

45

57.6
49.7
42.1 40.6 42.3
41.7 53.8
38.6 47.7
41.9
33.5
42.6
36.0

8.3

4,355

4,000
ATM
SMS Banking
Internet Banking

25

14.0 16.3

5

1.0

4.8
1.8 1.4

Debit Cards
SMS Banking
Internet Banking
1,442

2.1

3.9

8.7
2.6
3.5

1,111 1,214 1,253
849 988

1,392

0
Q2'11
Q1' 11
Q4'10
Q3'10
Q2'10
Q1 '10
Q4 '09
Q3 '09
Q2 '09*
Q1 '09
Q4 '08
Q3 '08
Q2 '08
Q1 '08

(15)

3.8

3.6

2,000

3,652

11.7

7.1

Q2'11
Q1' 11
Q4 '10
Q3 '10
Q2 '10
Q1 '10
Q4 '09
Q3 '09
Q2 '09
Q1 '09
Q4 '08
Q3 '08
Q2 '08
Q1 '08

Q2'11
Q1' 11
Q4 '10
Q3 '10
Q2 '10
Q1 '10
Q4 '09
Q3 '09
Q2 '09
Q1 '09
Q4 '08
Q3 '08
Q2 '08
Q1 '08

(5)

6,000

26.6 31.8

22.3

5.5

57.7

45

16.5
3.4

6,219
5,820

5,116

64.1

19.8

64.7

65

70

20

7,227
7,321

ATM
Branch
SMS Banking
Internet Banking

95

8,565

7,666

* Inactive cards have been purged

17

…a d I

o ati e Pay e t Solutio s
Pre-Paid Transaction Volume (000s)

Pre-Paid Card Volume (000s)

Cash Management Users

1,762.5
1,726.7

626.8

9,514

Indomaret
1,582.9
e-Toll 1,546.6
Gaz

597.2

8,561

516.7
1,317.0

487.1
Indomaret
e-Toll
458.0
Gaz

7,784

1,225.0
1,174.3

1,152.0
1,072.9

6,153

376.0
989.0
890.5
313.0
291.0

295.0
264.1

259.0

204.0
184.5
154.0
135.0

148.8

4,066

236.8

225.0

520.5

167.0

467.9

183.0

2,414
286.0

111.0
98.0
43.0
34.0 35.0 36.0 37.9 39.4

227.4

206.0
47.6 47.7
45.3 47.6 47.7

108.0
30.5

1.0 2.7 2.9 3.9 5.5

152.7
115.1
7.0

3.9

133.3
4.1

745

Q2
2011
Q1
2011

2010

2009

2008

2007

2006

Jun-11
May-11
Apr-11
Mar-11
Feb-11
Jan-11
Dec-10
Nov-10
Oct-10
Sep-10
Agt-10
Jul-10
Jun-10
Mei-10
Apr-10
Mar-10
Feb-10
Jan-10
Dec-09
Nov-09
Oct-09

Jun-11
May-11
Apr-11
Mar-11
Feb-11
Jan-11
Dec10
Nov 10
Oct 10
Sept 10
Agt 10
Jul 10
Jun 10
Mei 10
Apr-10
Mar-10
Feb-10
Jan-10
Dec-09
Nov-09
Oct-09

18

…a dI

o ati e Pay e t Solutio s

Mandiri Prepaid
Self Service Terminal Top Up
Features:
• Top Up
• Update Balance
(for top up from e-banking
channel)
• Balance Checking
• History Transaction Print-Out
Locations:
• Malls (38 locations)
• Hypermarkets (33 locations)
• Rest Areas & SPBUs (16 locations)
• Office Buildings (15 locations)
• Branches (8 locations)

19

Retail Value Chain in Gas Station & Telco Industry
Value Chain of Top 3 Telco
Relationships

Value Chain Gas Station

800

Avg Bal
(Rp bn)

Total SPBU
(unit)

4,500

3,500

700

4,000

Volume Mandiri Business Saving
Account (Tn)

Avg Bal
(Rp bn)

150

Total Authorized Dealer
(unit)

130

3,000

2,909

22.60

2,745

108

600

2,589

110

3,500

2,500

91

500

3,000

2,000

90

17.70

84
70

400

747
1,511

724

4,030

2,500

1,500

50

300

2,000

2,831

1,000

30

8.02

200

2,302

308
246

1,500

500

10

100

1,000

(10)

-

-

Dec 09

Jun 10

Dec 10

Jun 11

Dec 10

Mar 11

Jun 11

2009

2010

H1 2011

20

Buildi g ou high yield usi ess i Mi o & S all…
Loan
Yields

Business Banking Credits
(Rp Bn)

Micro Credits
(Rp Bn)

Consumer Loans
(Rp Bn)

12.5%

22.52%

13.50%

6,461

2,484

Q2 2010

Growth

28,783

33.4%

21,761

BPR/Rural

32.27%

Q2 2010

Growth

Q2 2011

25,787

Micro

19,326

7,759

5,337

45.83%

7,022

761

699
Q2 2010

Growth

Q2 2011

Q2 2011

*Excluding Credit Cards
Disbursement Breakdown (Q22011)

Disbursement Breakdown (Q22011)

0

Disbursement Breakdown (Q22011)

407
58

2,149

438
1,438

4,208

4,034

4,430

7,268

546

3,131
3,135

222
TOTAL

Cash Coll

TOTAL

Coops

Unsecured Micro

Program

Micro

Non-Prog

Rural Banks

Mortgage Home Equity Payroll Loan
Loan

Other

Total

21

615

2,251

564

2,223

563

2,113

452

28.50%
Total Consumer
9,193

Q3 '09

8,814

Q2 '09

3,983 3,697

8,376

Q1 '09

3,993 3,721

8,052

Q4 '08

3,999

7,717

Q3 '08

7,199

Q2 '08

3,753
3,699
3,704

3,761

3,658 3,702

1,926 3,192

3,612

1,908 3,010

6,393

3,437

1,367
59 888
1,930

Q4 '06

4,131 3,050

Q4 '05

5,000

7,500

10,000

12,500

15,000

17,500

20,000

22,500

25,000

Q4 '07

3,610

1,270
47 25
816
1,921

27,500

Q1 '08

5,382

1,293
82 1,544
2,285 3,666

30,000

22

5.86%

33.52%
Mortgages

Q4 '09

245

32,500

35,000

10,017

2,008

290

Other
Cash Collateral Loans
Payroll Loans
Mortgages

Q1 '10

4,099

2,452

572

10,681

4,252

2,754

Q2 '10

0 1,522

691

Q3 '10

11,626

3,822

4,541

915 1,376 2,989

Q4 '10

12,593

3,890

4,719

1,063 1,476 2,973

Q1 '11

13,500

3,941

4,985

1,214 1,704 3,239

Q2 '11

14,268

3,957

5,194

2,217 3,372

Auto
Credit Cards
Home Equity Loans

8.80%

0.39%
3,964

5,428

3,589

15,523

2,500 2,852

2,826

3,979

5,643

3,575

2.30%

18.73%
Payroll Loans

5,919

Home Equity Loans

16.12%
Credit Cards

3,761

3,454

1,393

4.88%

5.20%

104.97%

Other
1,454

Auto Loans

1.08%

8.71%
30.12%

Q-o-Q
Y-o-Y

Growth (%)
Loan Type

Consumer Loan Growth by Type
Rp34.35 tn

3,492

1,325

Quarterly Consumer Loan Balances by Type

…as ell as Co su e le di g, hi h ose 28.50% Y-o-Y
on Mortgages and Vehicles

1,583

Q4 '04

Ma di i Tu as Fi a e: Q
Total Booking and the Breakdown for
Joint Financing and Non JF

Total Fi a i g of Rp 3.7 Tn

Breakdown of Financing
Motorcycle
118

Used Car
New Car

99

Non JF
118

JF

350

Program for 2011
109

422

372

694
351
79

606

1,306

61

306

1,370 1,364

309

425

1,101
806
539

405

341

Q2'11

Q1'11

Q4'10

Q3'10

852

Q1'10

1,146
966

Q2'10

398

1. To grow further amount of
referral business from Tunas
Ridean network.
2. To continue to add large non
Tunas dealer alliances.
3. To
increase
referral
from
branches to about 10% of car
financing.
4. Cross sell to Corporate &
Commercial Banking to increase
portfolio of fleet financing to 15%
of new car fleet
5. Opening 2 branches and 11
outlets with focus on 2 wheelers
.

587

566
375

Q2'11

Q1'11

Q4'10

Q3'10

Q2'10

Q1'10

23

Strong Microfinance Growth

Branch

Unit

# Of New Customers

Customers (000)

Network
Kiosk

611
536

110,000

561

480

94,855

152

430
10

800

810
79,500

800

76,325
73,566

600

74,037

271

2008

2009

200

220

2010

H1 2011

2008

2009

2010

H1 2011

Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

24

St o g Mi ofi a e G o th o t d
Outstanding (IDR Trillions)

Booking Volume – Rp bn
17.9%

Asset Spreads(%)

Mandiri Microfinance Outstanding

17.7%

Booking

Mandiri Market Share

2,522

16.9%
3.50%

10

17.3%

3.08%
9

16.5%

16.5%

3.00%

2.76%

2,195

8.5

8

2.50%

2.29%

7.3

7

2.00%
6

5.4
4.4

1,645

1.50%

1,646

5

4

1,826

2.02%

Q2 '10

Q3 '10

1.00%

0.50%

2

1,347

3

0.00%

1

2008

2009

2010

H1 2011

Q1 '10

Q4 '10

Q1 '11

Q2 '11

25

Di e sifyi g ou st e gth i Wholesale le di g…
Breakdown of Net Expansion in Corporate Lending
Q2
– Q2
Total Rp14.39 tn)
%

Breakdown of Net Expansion in Commercial Lending
Q2
– Q2
Total Rp16.46 tn)
%

Plantations

6,337

50.80%

Mfg-Chem

2,229

46.29%

Electricity

3,238

99.23%

Trad-Distr

2,012

39.05%

Trad-Exp

1,998

226.25%

Mfg-Metal

2,004

168.19%

Bus Serv

1,984

29.43%

Plantations

1,578

28.91%

Others

1,272

8.13%

Bus Serv - Oth

1,499

18.45%

Trad-Distr

947

56.38%

Mining-Coal

1,305

244.84%

Trad-Ret

895

62.56%

Trans

1,220

34.15%

Mfg-Feed

807

210.80%

Mfg-F&B

1,047

28.25%

Agri Equip

803

86.65%

Mfg-RawM

949

85.94%

Trad-oth

649

96.92%

Utilities

827

154.01%

Mfg-Metal

555

35.69%

Mfg-P&P

745

32.87%

Trans

441

4.97%

Others

721

11.86%

3.09%

Trad-Oth

511

14.13%

Mining

352

Utilities-oth

(203)

-58.43%

Mfg-P&P

(421)

-16.31%

Mfg-Text

(688)

-27.40%
Rp Billion

Mfg-F&B

-26.42%

(4,575)

Agri - oth

42.25%

444

Mining - oth

(153)

Mfg-Oth

(176)

Real Estate

-15.70%
-3.18%
Rp Billion

(308)

-58.50%

2,600

2,000

1,400

800

200

(400)

(1,000)

(1,600)

(2,200)

(2,800)

6,400

5,400

4,400

3,400

2,400

1,400

400

(600)

(1,600)

(2,600)

(3,600)

(4,600)

26

Growing Usage of Cash Management System
Low Cost Fund of Corporate &
Institutional Banking (Rp tn)
5% DD

0.5

5.5

4.5%

22.5%

49.5%

1

0.2

0.5

10.2

31.37

29.42

Q4'10

Q1'11

Q2'11

716

27.03

Q3'10

479

26.37

Q2'10

Q2'11

30.81

Q1'10

24.33

26.50

Q4'09

Q2'10

38.16

Q3'09

19.86

35.26

Q2'09

Q2'09

36.03

Q1'09

19.55

34.83

*)

Average 1Q11

Average 2Q11

Exclude MTS

27

Product Holding for Commercial & Corporate
Product Holding Commercial

Product Holding Corporate

8.43
8.19

7.60
7.62
6.88

6.80

2009

Jun 2010

Jun 2011

Dec 2009

Jun 2010

Jun 2011

28

Showcasing a Bank Mandiri Strategic Alliance

Operating Account of IDR
4,952 Bn & Trade Services
of USD 443 Mn

Credit cards amounted
to 3,019 cardholders

Value chain comprises 25
companies

Company Alpha
Number of EDC installed :
52 units

Mortgage loans reached
IDR 4.84 Bn
Payroll up to 2,226
accounts

29

…i to Fee-based Income
Breakdown of Q2 2011 Non-Loan Related Fees & Commissions (Rp bn)
Non-Loan Related Fees &
Commissions

H1-2010

Q1-2011

H1-2011

Q2-2011

Y-o-Y
%

Q2 %
(Q-o-Q)

Administration Fees

762

448

836

388

9.7%

(13.4%)

Opening L/C, BG & Cap Market

272

107

222

114

(18.4%)

6.5%

Subsidiaries

381

357

751

394

97.1%

10.3%

Transfer, Retail Transaction

240

186

402

217

67.6%

16.7%

Credit Cards

329

221

449

228

36.5%

2.9%

Mutual Fund, ORI & Bancassurance

83

61

146

84

76.2%

37.1%

Syndications

28

8

94

86

233.9%

n/a

Payroll Package

30

15

30

16

0.4%

7.2%

Others*

72

94

154

127

113.8%)

35.4%

2,197

1,497

3,084

1,683

40.4%

12.4%

13,032

9,017

18,174

9,157

39.5%

1.5%

16.86%

16.60%

16.97%

18.38%

0.1%

10.7%

Total
Total Operating Income
% of Non Loan Related fees to total
operating income

* Others includes Payment Points, FX Transaction, Trade Service,etc.

30

Leveraging cash generator to accelerate high yield
growth and deposit franchise
Consumer Loans from Alliance Program
Rp Billion
(10 top corporate clients)

Co-Branding Prepaid Card Program

4,878
4,067

4,324

3,202

319

1,275 1,389

1,609

1,821

2,085 2,283

2,558

Q4 '06 Q4'08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 '11

Total Payroll in 2010-2011(*)

Corporate Card Holder from Alliance Program
(10 top corporate clients)
55,174

Rp Billion

63,922
57,945
10,533

Feb
'11

Mar
'11

11,500

10,434

'Jan
'11

May
'11

10,360

Dec

11,107

10,231

Nov

Apr
'11

9,954

Oct

11,040

9,777

Sept

(*) Including all payments to the employees

Jun
'11

Agt

Jul

Jun

May

Apr

9,607

4,302

3,500

Mar

Feb

Jan

Q3'08 Q4'08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2'11

4,756

7,272

4,394

1,869 2,007 3,625

14,612 16,495

3,463

12,108

5,169

23,660

9,175

8,836

36,987

31

Enhancing synergies & values from subsidiaries
Syariah Banking

Investment Banking

Insurance

Niche Banking

Multi-Finance

Bank Sinar
Harapan Bali
Total Assets
Rp38.25 tn

Bond Trading Volume
Rp18.7 tn

Total Assets
Rp10.12 tn

Total Loans
Rp627 bn

Total Financing
Rp3.7tn

Total Financing
Rp30.06 tn

Equity & FI Underwriting
Rp10.67 tn

Annual FYP
Rp 1.562 bn

Net Interest Margin
11.46%

Net Interest Margin
3.87%

Total Deposits
Rp33.96 tn

Equity Trading Volume
Rp43.2 tn

Fee Contribution
Rp191.1 bn

ROA
2.17%

ROA (Before Tax)
3.02%

ROE
25.19%

ROE
3.1%

ROE
84.20%

ROE
10.32%

ROE (After Tax)
17.21%

• 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 crosssell 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.

32

2 - Special Mention Loans (Rp Bn)

Net NPL Ratio

Prov/NPL

0
0.55%

2,000
44.4%

70.0%

139.1%
129.5% 128.8%

Q2'11
Q1'11
Q4 '10
Q3 '10
Q2 '10
Q1 '10
Q4 '09
Q3 '09
Q2 '09
Q1 '09
Q4 '08
Q3 '08
Q2 '08
Q1 '08
Q4 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
Q4 '01
Q4 '00
Q4 '99

Gross NPL Ratio

116.0%

136.1%
138.9%
146.7%

33

0%

10%

4,000

9.2%

9.4%

12.9%

6,000

8,000

10,000

12,000

14,000
175.0%
172.2%

19.80%

15.3%
7.10%
8.60%
7.30%
9.70%

Q2'11
Q1'11
Q4 '10
Q3 '10
Q2 '10
Q1 '10
Q4 '09
Q3 '09
Q2 '09
Q1 '09
Q4 '08
Q3 '08
Q2 '08
Q1 '08
Q4 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
Q4 '01
Q4 '00
Q4 '99

0.56%

26.2%
24.8%

35.7%

192.4%

16,000
206.0%
190.4%

18,000
219.1%

15.0%

15.5%

Cat 2 %
20,000

11.9%
11.5%
10.2%
10.0%
9.2%

9.7% 9.0%
8.4%
7.2%
6.1%
5.3%

20%

30%

40%

50%

Category 2 Loans – Bank Only
NPL Movement - Consolidated

Gross NPLs 2.4% , coverage at 172% - Category 2 loan
declined to 5.3%

2.42%
2.60%
2.42%
2.60%
2.54%
2.56%
2.79%
3.79%
4.78%
5.85%
4.73%
4.44%
4.74%
5.14%
7.17%
16.34%

25.28%

12,922
13,516
15,758
17,498
17,479
17,417
17,506
18,148
15,895
16,332
15,412
13,502
13,451
14,058
15,148
16,966
12,912
8,334
10,983
16,202
12,655
15,350
4,033

Q2 Total NPLs Rp5.47 tn with Rp0.2tn Up grades
Non-Performing Loan Movements (Rp tn) – Bank Only

5.45

0.24

0.68

0.14

0.33

Movement by Customer Segment (Rp Bn)

Cons

0.05

5.47

Micro/Small
Comm
Corp
162.9

Q1 '11

UG to PL DG to NPL Payment Write-Offs

Other

Q2 '11

Non-Performing Loans by Segment
411.8
NPLs
(Rp tn)

Q2
(Rp tn)

NPLs
(%)

Corporate

2.06

(0.06)

2.00%

Commercial

1.42

0.05

2.00%

Small

0.78

(0.03)

3.03%

Micro

0.43

0.02

4.91%

Consumer

0.78

0.03

2.28%

5.47

0.01

2.22%*

Total

* Excluding Restructuring Losses and loans to other banks.

121.5
64.4

190.9

158.9
101.7
19.8
-

-

13.8
-

UG to PL

DG to NPL

W/O

34

Q2 2011 annualized net downgrades of 0.9% on loans
originated since 2005.
Total Loans originated since 2005
Net Upgrades (%)/Downgrades (%) #

Q2 2011 Details

Q2
Balance
(Rp bn)

Q2
2009

Q3
2009

Q4
2009

Q1
2010

Q2
2010

Q3
2010

Q4
2010

Q1
2011

Q2
2011

DG to
NPL
%

UG to
PL
%

Corporate

88,331.60

1.15

-

0.03

0.28

0.17

0.18

0.05

0.45

-

-

-

Commercial

63,305.31

0.03

0.21

0.04

0.51

0.27

0.13

0.04

0.27

0.05

0.08

0.03

Small/Micro

30,580.57

1.00

1.19

0.84

1.36

0.86

1.20

0.68

1.23

1.12

1.24

0.12

Consumer

33,250.90

0.27

0.30

0.11

0.40

0.33

0.35

0.14

0.45

0.28

0.46

0.18

215,468.38

0.38

0.25

0.12

0.50

0.32

0.33

0.12

0.51

0.22

0.27

0.05

Loan
Background

Total

# % downgrades and upgrades are quarterly % figures

35

BMRI 2011 Targets
Target 2011
Gross Loan Growth (YoY)

20-22%

Low Cost Deposits (Consolidated)

>

225 Tn

Net Interest Margins

~

5.30%

Efficiency Ratio

~

45%

Gross NPLs

<

3%

Cost of Credit

~

1-1.2%%

# of New ATMs

2,000

# of New EDCs

45,000

# of New Micro Outlets
# of New Branches

400
60
36

Operating Performance
Highlights

37

Corporate Banking:
Contribution Margin declines on provision
Contribution Margin (after PPAP)
Rp bn

Performance to Date: H1 2011
Rp bn

Strategies for 2011
1.

3,910
Q1

Q2

Q3

Q4
2.

3,326
1,144
279

225
1,011

514

1,911

2,483

3.

564
659
1,343

1,138

416

1,347
537

547

1,347

824
1,106

Improve the organization of Corporate
Banking to support the achievement of
business growth and market share
both transactions and other major
businesses, such as credit, funds, and
fee-based income.
Develop business solutions capability
by providing products and services that
are flexible to customer needs.
Identifying and understanding the
specific needs of the customer to
develop a total business relationship.
continue to develop and strengthen
business alliances to support the
strategy of increasing transaction
services (retail payment) in order to
increase low cost fund and fee-based
income, and develop retail financing
for segments managed by other SBUs.

-29%
954

1,075
741

2008

522
2009

393
2010

2011

38

Mandiri Sekuritas fi a ial pe fo

a e

Q2 2010

Q2 2011

Y-o-Y 
(%)

Revenues

191

281

47%

• Investment Banking

34

88

162%

• Capital Market

81

129

59%

• Investment Mgt

29

38

30%

• Asset Recovery

46

24

(48%)

Operating Expenses

104

128

22%

Earnings After Tax

43

12

(72%)

Equity Transactions - bn

31.539

43.472

38%

SUN Transactions - bn

24.144

18.722

(22%)

Bonds Underwritten - bn

4.296

10.670

148%

ROA

8.2%

6.6%

(20%)

ROE

4.8%

3.1%

(74%)

(Rp Bn)

)

39

Treasury, FI & SAM
Strategies for 2011

Contribution Margin (after PPAP)
Rp bn

Performance to Date: H1 2011
Rp bn

4,848

2,821

(311)

178

3,480

3,170

Q1

Q2

Q3

Q4

1,540
3.480

389
1,247

69%
1,382
263
803
118

322
153
210

527
NII

Fees

Overhead

Operating
Profit

Provisions Profit After
PPAP

2008

1,338

3,091

316
348
455
2009

1. Optimizing Online FX Dealing
System, 88 Mandiri Money
Changer and 88 Regional
Treasury Marketing.
2. Development of cash pooling
management.
3. Intense cooperation with
correspondent banks and
remittance service providers.
4. Intensification the position of
marketing representatives in the
countries of TKI destination.
5. Applying the best restructuring
scheme to support
cooperative/prospective debtors.
6. Increasing the intensity of billing
against NPL debtors who have
been restructured.
7. Optimizing written offs collection
through legal action.
8. Optimization of e-auction for
procurement.

724
2010

2011

* 2010& 2011: Including Collection from SAM and excluding
International branches (except Cayman Branch)

40

Commercial Banking:
Strong revenues from Assets
Strategies for 2011

Contribution Margin (after PPAP)

Performance to Date: H1 2011

Rp bn

Rp bn

Q1

Q2

Q3

Q4
4,709

622

4,449
400
2,729

405

1,094

1,420

1,166

1,174

409
2,324

3,026

2,098

665

2,325

714
9.9%

1,314

1,266

1,176

852

923

939

1,010

2008*

2009*

2010**

2011

946

1. Supporting Bank Mandiri Wholesale
Banking vision as an Integrated
Wholesale Bank through
sophisticated, customized and
completed services to can increase
revenue especially through potential
business like Wholesale Banking
Deposit and Fee Income.
2. Increasing profit and market share
through customer existing share of
wallet, increasing revenue from new
customer and NPL control.
3. Provide best total business solution
for customer by developing product
and services including quality
bundling product, quick services and
competitive price.
4. Effective Alliance in units based on
customer base in Commercial and
Small segment, especially in
developing value chain business.

* incl CM of Small Business & BSM**in June 2010 Decline due to PSAK50&55Implementation

41

Commercial Banking :
Stronger Platform & Improved Distribution Capability
Expanding Scope of Distribution, 2011

Solid & Stable Source of
Low Cost Funds
Rp Tn **

Sumatera
Loans = Rp10.0 tn
Funds = Rp5.2 tn

Kalimantan
Loans = Rp4.4 tn
Funds = Rp2.7 tn

Eastern
Loans = Rp1.7 tn
Funds = Rp0.8 tn

Q2
2010

Q2
2011

Growth

18.35

22.10

20.43%

12.44

14.86

19.45%

5.91

7.24

22.50%

Saving
Deposit*

1.51

2.23

48.03%

Total Low
Cost Fund

19.86

24.33

22.53%

Total
Funding

30.20

36.60

21.19%

Product
Demand
Deposit
Rupiah
FX

Java and Bali
Loans = Rp53.9 tn
Funds = Rp27.9 tn

CBC = 24 Unit
Floor = 26 Unit
TSC = 13 Unit
TSD = 14 Unit

Low Cost Fund Ratio = 65.8%
Funding from Java & Bali = 76.2%
of total funding
* Business Savings Product
** excl. BB

42

Business Banking :
Solid & Stable Source of
Low Cost Funds

Expanding Scope of Distribution, 2011

Rp Tn**
Sumatera
Loans = Rp 6.6 tn
Funds = Rp 0.7 tn

Medan
Pematang siantar
Pekanbaru

Kalimantan
Loans = Rp 3.6 tn
Funds = Rp 0.5 tn

Manado

Pontianak
Samarinda

Batam

Padang
Palembang

B.Lampung

Eastern
Loans = Rp 3.3 tn
Funds = Rp 0.2 tn

Jambi
Tangerang
Jakarta
Bekasi

Palu

Q2
2010

Q2
2011

Growth

Demand
Deposit

1.72

2.44

42.01%

Saving
Deposit*

0.36

0.61

69.03%

Total Low
Cost Fund

2.08

3.05

46.71%

Total
Funding

2.59

3.77

45.56%

Jayapura

Balikpapan
Banjarmas
in
Solo
Surabaya

Product

Makassar

Bogor
Bandung Semarang
Denpasar
Java and Bali
Loans = Rp 12.3 tn
Funds = Rp 2.4 tn

BBC
BB Floor

•Business Savings Product
** Exclude mirroring with MRB Directorate

BBC : 34
BB Floor : 72
BB Desk : 85

Low Cost Fund Ratio = 80.9%
Funding from Java & Bali =63.2%
of total funding

43

Strong growth from Bank Syariah Mandiri
Financial Performance (Rp bn)

Net Interest Margin & Cost of Funds

FY

FY

FY

FY

FY

M

Financing

7,415

10,305

13,278

16,063

23,968

30,059

Deposits

8,219

11,106

14,899

19,338

28,998

33,955

Assets

9,555

12,888

17,066

22,037

32,481

38,252

EAT

65.48

114.64

196.42

290.94

418,52

270

ROA

1.10%

1.54%

1.83%

2.23%

2.21%

2.12%

ROE

10.23%

15.94%

21.34%

21.40%

25.05%

25.19%

Net NPF

4.64%

3.43%

2.37%

1.34%

1.29%

1.14%

YoA 13.6%

13.5%
13.0%
12.7%
12.4% 12.3%
12.4%
12.3%

13.3%
12.3%
13.2%
12.1%
12.0%

Ratios:

Syariah Financing (Rp tn)
5.5%
5.0%
5.1%
5.0%
4.9%

4.7%
5.6%

5.9% 5.8%

88.5%

84.1%

82.7%

86.3%

85.2%

83.9%

83.1%

87.9%

86.9%

89.1%

99.1%

89.2%

91.1%

91.1%

90.2%

6.2%
5.7%
5.3%
5.3%
5.4%
5.4%
5.4%
5.7%

CoF

Financing

FDR

NIM

2005

Q2'…

5.9%
6.0%
6.6%
6.4%
6.2%
6.2%
6.6%
6.1%
5.6%
5.6%
6.3%
6.4%
6.3%
6.7%
6.3%
5.6%
6.8%

Q2 '11

Q1'…

30.01

Q1 '11

Q4'…

27.09

Q4'10

Q3'…

23.97

Q3'10

Q2'…

21.44

Q2'10

Q1…

19.87

Q1 '10

Q4…

17.65

Q4 '09

Q3…

16.06

Q3 '09

Q2…

14.94

Q2 '09

Q1…

14.23

Q1 '09

Q4…

13.43

Q4 '08

Q3…

13.25

Q3 '08

Q2…

13.77

Q2 '08

Q1…

12.73

Q1 '08

Q4…

11.15

Q4 '07

Q4…

10.31

44

Micro & Retail Banking:
Rapidly growing our high margin business
Strategies for 2011

Contribution Margin (after PPAP)

Performance to Date: H1 2011

Rp bn

Rp bn

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., prepaid) as well as e-channel
transactions in order to
increase customer’s loyalty
and balances.

3.

Continue to develop
integrated branding,
marketing strategies and
comprehensive distribution
strategy (ATMs, Branches,
EDCs located at optimal
locations)

Q4

3,995

Q3
1,747

Q2
1,069

2,768

3,152
722

2,145

1,319

2,117

3,320

899

449

1,823
877

294
855

1,823

842
880

720

Q1

583

36.6%

1,126

2008*

981

761

727

2009 *

2010*

2011

*Excluding Small Business

45

Consumer Finance:
Significant growth in spread and fee income
Contribution Margin (after PPAP)

Performance to Date, H1 2011
Rp bn

Strategies for 2011
Rp bn

420
322

Q2

Q3

Q4

1,926

2.
3.

474

4.

1,509

1,337
1,239

Q1

1.

355
489

621

982
982
831

413
324

133

Fees

Overhead Operating Provisions Profit After
Profit
PPAP

5.

355

200

NII

455 6.2% 486

174

252

2008

2009

476

494

2010

2011

6.

Develop clear portfolio strategy,
targeted to key customer
segments
Differentiate acquisition strategy
by markets
Increase existing cards
productivity
Strengthen Consumer Loan
organization structure to
support the achievement of
business target, internal
portfolio growth and the
increasing proportion of market
share
Improving technology in credit
process through Loan Factory
project (shared with Cons Card,
Small & Micro) to shorten credit
turn around time
Increasing alliance with other BU
to support the achievement of
business target

46

Supporting
Materials

47

Committed to Improving Shareholder Value
Reduce Cost of Funds

Business Strategy

Improve Assets Yield
Diversify into Fee Income

Competitive,
sustainable
returns, with
above-average
rates of growth

Reduce Provision/Loan

Support Strategy

Strategic
Alliances

Improve Cost Efficiency

 Leverage on cash generator
(wholesale) to accelerate growth
 Diversity into fee income

48

872
752
651

1,089

1,331

49

Q2 '11
Q1 '11
Q4 '10
Q3 '10
Q2 '10
Q1 '10
Q4 '09
Q3 '09
Q2 '09
Q1 '09
Q4 '08
Q3 '08
Q2 '08
Q1 '08
Q4 '07
Q4 '06
Q4 '05
Q3 '05
Q2 '05
Q1 '05
Q4 '04

3,760.9
3,574.9
3,589.2
3,372.5
3,238.7
2,973.4
2,989.3
2,753.7
2,452.2
2,251.0
2,223.2
2,112.7
2,007.7
1,925.9
1,907.5
1,292.8
1,367.4
1,270.2
814.9
567.5

Q2 '11
Q1 '11
Q4 '10
Q3 '10
Q2 '10
Q1 '10
Q4 '09
Q3 '09
Q2 '09
Q1 '09
Q4 '08
Q3 '08
Q2 '08
Q1 '08
Q4 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02

338
226

18
8
81 56
24
10
62 16
57
61

11
68

9
61
10
62

32
57

59
63 39
63 19
59

52
54

43
60

55
58

64
50

72
65 56 82
53
75 55
55

58
53
Transfer Balance
Cash Advance
Retail
2,156
2,081
1,980
1,868
1,770
1,678
1,608
Receivables (Rp Bn)
Cards (000s)

Total Card Quarterly Sales by Type of Transaction (Rp Bn)
Mandiri Visa & Mastercards and EOQ Receivables

2,156k Visa & Mastercards transacted Rp3.76tn in Q2
2011

3,421
3,032
3,132
3,003
2,848
2,497
2,676
2,552
2,163
1,891
1,914
1,904
1,668
1,443
1,514
836
600
606
532
521
535

Strengthening Risk Management & Monitoring
System
Summary of Risk Management Initiatives

Corporate Customer by Rating
High Risk (Rating C- G)
Medium Risk (Rating BBB – B)
Low Risk (Rating AAA – A)

100%
15%

12%

11%

15%

Credit
7%

4%
20%

80%

24%

24%

21%
25%

34%
60%

Market
40%

64%
20%

68%

51%

60%

69%

77%

Operational

0%
2006

2007

2008

2009

2010

• Wholesale Transaction: Optimize credit decision
process by focusing on quantitative factors of
analysis, redefining clear role of risk team , and
aligning RM Organization into business expansion
• 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
• 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
& subsidiary
• Bring Op. Risk top issues into Management
• Review Op. Risk on new procedures & new products

2011
50

Key Quarterly Balance Sheet Items & Financial
Ratios
H

FY

H

217,996

246,201

276,708

Y-o-Y  (%)
26.9%

83,536

78,093

77,930

(6.7%)

Total Assets

402,084

449,775

474,929

18.1%

Customer Deposits

326,578

362,212

362,637

11.0%

Total Equity

36,727

41,543

56,610

54.1%

RoA - before tax (p.a.)

2.75%

3.40%

3.67%

RoE – after tax (p.a.)

22.28%

24.39%

24.29%

Cost to Income(a)

43.32%

42.02%

37.33%

5.01%

5.28%

5.20%

66.33%

67.58%

75.92%

Gross NPL / Total Loans

2.54%

2.42%

2.42%

Provisions / NPLs

205.97

192.36%

172.21%

Tier 1 CAR(2)

11.85%

11.57%

14.29%

Total CAR(b) incl Credit & Opr Risk

14.58%

13.46%

16.70%

Total CAR incl. Market Risk

14.50%

13.36%

16.65%

EPS (Rp)

192.34

439.38

270.98

40.89%

1,751

1,980

2,426

38.55%

IDR billion / %
Gross Loans
Government Bonds

NIM (p.a.)
LDR

Book Value/Share (Rp)

(a) (G&A and employee expenses) / (Net Interest Income + Other Operating Income), excluding bond gains
(b) Bank only – Not including Market Risk

51

52
95.3

231.9

100.6

218.0

Q3 '10

83.5

Q2 '10

198.5

89.1

Q4 '09

88.4

Q3 '09

88.2

Q2 '09

175.2

88.4

Q1 '09

174.5

88.3

Q4 '08

88.5

Q3 '08

88.4

Q2 '08

135.5

88.6

Q1 '08

138.5

89.5

Q4 '07

90.8

Q3 '07

116.3

89.5

Q2 '07

56.1 114.3

90.6

Q1 '07

90.6

Q4 '06

54.0 108.8

91.0

Q3 '06

55.1 107.8

92.3

Q2 '06

105.1

92.2

Q1 '06

106.9

92.1

Q4 '05

93.1

Q4 '04

122.9

Q4 '03

148.8

Q4 '02

153.5

Q4 '01

176.9

Q4 '00

89.8

188.3

181.6

58.8%
56.8%
57.2%
52.2%

89.0

Int. from Loans

67.4

162.8

66.7

149.6

34.8%

50.1%

Int. from Bonds

61.2

121.7

46.9%

41.0%

59.2

117.7

40.9%
50.0%

47.1%
40.6%

59.2

57.6

34.1%

60.6%

64.5
50.6

75.9
19.0%
19.0%

74.1%

36.1

65.4

60.5 65.4

80

120

160

200

240

280

320

360

27.0 43.0

19.0%

33.4 48.3

0

106.9

40

Q1 '10

91.1

400

82.2
86.8

75.5

75.4%
75.4%

Q4'10

201.9

95.7

440

78.1

110.6

84.1

480

Q1'11

Other Assets

246.2

Total Assets (Rp tn)

Total Assets grew 3.6% Y-o-Y to Rp466.1 tn

125.5

78.2

Loans

251.8

Q2'11

Government Bonds

136.1

77.9

Consolidated

276.7

32.3%
31.0%
29.3%
32.4%
25.4%
22.4%
20.5% 18.7%
19.6%
17.7% 16.6%
16.0%
13.4%

76.0% 76.5%
75.5%
74.4%
71.7%
68.3%
68.0%
67.3%
63.6%

120.3

Additional Factors

Written-off
Loans

 Aggregate of Rp32.864 tn (US$ 3.682 bn) in written-off loans as of end-September 2010, with
significant recoveries on-going:
 2001:
Rp2.0 tn
 2002:
Rp1.1 tn
 2003:
Rp1.2 tn
 2004:
Rp1.08 tn
 2005:
Rp0.818 tn (US$ 83.2 mn)
 2006:
Rp3.408 tn (US$ 378.5 mn)*
 2007:
Rp1.531 tn (US$ 249.3 mn)
 2008:
Rp2.309 tn (US$ 211.8 mn)
 Mo
:
Rp1.489 tn (US$ 146.4 mn)
 Q
:
Rp0.775 tn (US$ 82.5 mn)
 Q
:
Rp0.287 tn (US$ 31.6 mn)
 Q
:
Rp0.662 tn (US$ 73.0 mn)
 Q
:
Rp0.363 tn (US$ 40.7 mn)**)
 Q
:
Rp1.349 tn (US$149.7 mn)
 Q
:
Rp0.468 tn(US$53.8 mn)
 Q
:
Rp0.341 tn(US$39.8 mn)

* including the write-back of RGM loans totaling Rp2.336 tn
** Including the write back of Kharisma Arya Paksi loans totaling

Rp 0.124 tn and Gde Kadek Rp0.59tn.

53

Strong and liquid balance sheet, H1 2011
(Rp Bn, Consolidated)

Assets

Amount

% of
Assets

Liabilities

8,776

1.85%

Current Account

Current Acc w/ BI & Other Banks

35,755

7.53%

Placement with BI & Other banks

29,621

6.24%

Marketable Securities

18,758

3.95%

Government Bonds

77,930

16.41%

Loans (Gross)

276,708

58.26%

Provisions of Loans

(11,559)

(2.43%)

5,028

1.06%

Other Provisions

(7,354)

(1.55%)

Other Advances

8,791

Investments
Deferred Tax Assets

Cash

Reverse Repo

Other Assets
Total

Amount

% of Liab.

70,201

14.78%

Savings

139,150

29.30%

Time Deposits

153,287

32.28%

Total Deposits

362,637

76.36%

1,849

0.39%

12,159

2.56%

Borrowings

5,082

1.07%

1.85%

Other Int Bearing Liabilities

5,907

1.24%

8,208

1.73%

Non Int Bearing Liabilities

31,396

6.61%

3,670

0.77%

Equity

55,900

11.77%

20,597

4.34%

474,929

100.00%

Total

474,929

100.00%

Securities Issued
Deposits from other banks

54

Summary Quarterly Balance Sheet: Q
Q2 '10
Rp (tn)

Total Assets
Cash
Current Acc w/ BI & other banks
Placement w/ BI & other banks
Securities
Government Bonds
- Trading
- AFS
- HTM
Loans
- Performing Loans
- Non-Performing Loans
Allowances
Loans – Net
Total Deposits – Non Bank
- Demand Deposits
- Savings Deposits
- Time Deposits
Sha eholde s E uity

402.08
6.45
25.71
25.33
25.75
83.54
0.15
59.96
23.43
217.99
213.12
4.88
(11.55)
206.45
326.58
73.34
113.75
139.49
36.51

Q

Q

Rp (tn)

409.37
8.70
19.23
23.85
11.38
82.18
0.50
58.25
23.43
231.85
225.64
6.22
(10.69)
221.17
321.19
62.76
120.33
138.10
39.02

Q

Rp (tn)

449.80
9.52
24.86
37.38
27.25
78.09
0.61
54.05
23.43
246.20
240.18
6.02
(11.52)
234.68
362.21
68.29
123.96
169.97
41.57

–Q
Q

Rp (tn)

466.08
7.42
29.73
34.03
29.16
78.20
0.75
54.03
23.43
251.79
245.18
6.50
(11.51)
240.28
356.67
70.73
132.10
153.85
56.92

Rp (tn)

Y-o-Y
US$ (bn)#

474.93
8.78
29.62
35.76
18.76
77.93
0.84
53.66
23.43
276.71
269.94
6.76
(11.61)
265.10
362.64
70.20
139.15
153.29
56.61

55.38
1.02
3.45
4.17
2.19
9.09
0.10
6.26
2.73
32.27
31.48
0.79
(1.35)
30.91
42.29
8.19
16.23
17.87
6.60

# USD1 = Rp8,575.5

%

18.1%
36.1%
15.2%
41.2%
(27.2%)
(6.7%)
460.0%
(10.5%)
0.0%
27.0%
26.7%
38.6%
0.5%
28.4%
11.0%
(4.3%)
22.3%
9.9%
55.1%
55

Summary Quarterly P&L – Q2 2011
Q2 2010

Summary P&L
Interest Income

Rp (Billions)

Q1 2011

% of
Av.Assets

Rp (Billions)

Q2 2011

% of
Av.Assets

Rp (Billions)

% of
Av.Assets

Q-o-Q

Y-o-Y

 (%)

 (%)

8,188

8.2%

8,774

7.7%

9,347

7.9%

6.5%

14.2%

(3,452)

(3.4%)

(3,812)

(3.3%)

(3,582)

(3.0%)

(6.0%)

3.8%

-

-

875

-

739

0.6%

(15.5%)

n/a

Net Int Inc + Net Premium Inc

4,735

4.7%

5,837

5.1%

6,504

5.5%

11.4%

37.4%

Other Non Interest Income

2,225

2.2%

3,649

3.2%

2,463

2.1%

(32.5%)

10.7%

21

0.02%

32

(0.03%)

33

0.03%

1.6%

54.8%

Provisions, Net

(1,162)

(1.2%)

(831)

(0.7%)

(1,534)

(1.3%)

84.5%

32.0%

Personnel Expenses

(1,374)

(1.4%)

(1,547)

(1.4%)

(1,476)

(1.3%)

(4.6%)

7.4%

G & A Expenses

(1,265)

(1.3%)

(1,524)

(1.3%)

(1,969)

(1.7%)

29.2%

55.7%

Other Operating Expenses**

(394)

(0.4%)

(614)

(0.5%)

(601)

(0.5%)

(2.1%)

52.6%

Profit from Operations

2,786

2.8%

5,002

4.4%

3,420

2.9%

(31.6%)

22.8%

Non Operating Income

(35)

0.0%

35

0.0%

45

0.0%

28.6%

n/a

Net Income Before Tax

3,750

3.7%

5,037

4.4%

3,465

2.9%

(31.2%)

(7.6%)

Net Income After Tax

2,031

2.0%

3,780

3.3%

2,543

2.2%

(32.7%)

25.2%

Interest Expense
Net Premium Income

Gain from Increase in Value &
Sale of Bonds

* % of Average Assets on an annualized basis
** incl loss from decrease in value of sec & govt bonds

56

Limited Impact on Government Recap Bonds
Recap Bond Portfolio by Type and Maturity (Rp77,931 bn)

Bonds by Rate Type & Portfolio as of June 2011(Rp bn)
70

Maturity/
Rp bn

Trading Portfolio

Nominal

MTM

Available for Sale

Nominal

MTM

Held to
Maturity

Fixed Rate

50

Variable Rate

0.00

40

Fixed Rate Bonds
< 1 year

29

30

-

-

68

1 - 5 year

322

342

-

-

1,392

5 - 10 year

191

200

17

18

111

> 10 year

235

267

-

-

110

Sub Total

777

840

17

18

1,681

Variable Rate Bonds
-

-

1 - 5 year

-

-

3,963

3,917

1,506

5 - 10 year

-

-

50,348

49,730

20,239

> 10 year

-

-

Sub Total

-

-

777

30

1.68

54

20
21.75

10
0

0.84
Trading*

AFS#

HTM^

* Mark to Market impacts Profit
# Mark to Market impacts Equity
^ Nominal value

Q2 11 Recap Bond G