2017Q3 Analysts Meeting

PT Bank Mandiri (Persero) Tbk
9M 2017
Results Presentation

October 24, 2017

Share Price Performance and Information
By 30 September 2017
No.

1800%
1600%

Description

No. of
Investor

BMRI

I

JCI

1400%
1200%
1000%
800%
600%
400%

DOMESTIC
1. Government of RI
2. Retail
3. Employees
4. Cooperatives
5. Foundation
6. Pension Funds
7. Insurance
8. Banks
9. Corporations
10. Mutual Funds

Total

%

1
13,176
1,650
5
20
126
90
73
269
15,410

0.01%
78.28%
9.80%
0.03%
0.12%

0.75%
0.53%
0.00%
0.43%
1.60%
91.56%

107
1,314
1,421
16,831

0.64%
7.81%
8.44%
100.00%

No. of shares

28,000,000,000

423,577,112
18,787,834
1,687,400
35,525,490
288,291,628
994,429,660
735,088,874
1,039,210,688
31,536,598,686

%

60.00%
0.91%
0.04%
0.00%
0.08%
0.62%
2.13%
0.00%

1.58%
2.23%
67.58%

200%

II

-200%

Mar-03
Sep-03
Mar-04
Sep-04
Mar-05
Sep-05
Mar-06
Sep-06
Mar-07
Sep-07

Mar-08
Sep-08
Mar-09
Sep-09
Mar-10
Sep-10
Mar-11
Sep-11
Mar-12
Sep-12
Mar-13
Sep-13
Mar-14
Sep-14
Mar-15
Sep-15
Mar-16
Sep-16
Mar-17
Sep-17


0%

∆ fro :

IPO

Dec 31, 2016

BMRI

1,940.66%

16.20%

JCI

1,029.08%

11.85%


INTERNATIONAL
1. Retail
2. Institutional
Total
III
TOTAL

2,250,996
0.00%
15,127,816,984
32.42%
15,130,067,980
32.42%
46,666,666,666 100.00%

Table of Contents
Results Overview

Page #
















3–5

Corporate Strategy
I do esia s E o o i Co ditio
Key Indicators + Financial Highlights

SBU Performance Highlights
Ba k s Pe fo

a e

6
7–8
9
10 – 12

Loan Performance

13 – 14

ROE & NIM

15 – 16

Fee-Based & CIR


17 – 18

Wholesale Business

19 – 22

Retail Business

23 – 29

Non-Performing Loan & Restructured Loan

30 – 33

Subsidiaries

34 – 35

Corporate Guidance

36

Additional Information
Operating Performance Highlights
Supporting Materials

2

Corporate Plan – Ba k Ma di i s 2020 Initiatives
I do esia s Top Financial Institution:
Grow above the market, portfolio quality focused, employer of choice in Indonesia

Accelerate in Growth
Segments

• Become the first choice in consumer
banking, especially in the middleincome class



• Focus on micro fixed income earners
and asset-backed consumer lending



• Selectively grow SME segment and
productive micro by focusing on asset
quality



Current Achievements (9M 2017)




Consumer Loans Rp95.2Tn (+20.6% YoY)
Micro Loans Rp57.0Tn (+22.1% YoY)
SME Loans Rp59.0Tn (-1.2% YoY)

Deepen Client
Relationship

Integrate The Group

Drive su sidiaries perfor a e by
increasing synergies within the
Mandiri Group.
Increase distribution network
productivity
Strengthen presence in ASEAN
countries

• Strengthen Ba k Ma di i s positio as
the No. 1 Corporate Bank
• Grow in-line with the market in the
Commercial Banking segment
• Offering sector specific solution and
integrated product packages.

Current Achievements (9M 2017)




Total income from subsidiaries Rp1,533Bn
(10.2% of EAT)
Average CASA per branch grew by 7.3%
Obtained Singapore Capital Market License

Current Achievements (9M 2017)



Corporate Loans Rp234.7Tn (+12.3% YoY)
Wholesale Fee Income Rp6.3Tn (30.5% of
wholesale income)

3

How We Plan To Get There
Strategic Initiatives

Description

▪ Grow corporate lending above the market growth rate and
Focus on Core Business

Expanding into
Underpenerated Low-Risk
Segments



deepen relationships with existing clients
Increase fee based income & wholesale current accounts

▪ Accelerate consumer lending growth: mortgages, auto loan



and salary based loans
Push retail CASA growth through Bank@Work
Defend market share in SME

▪ Lower cost to income ratio through digitalization and
Strengthen The Foundation




productivity enhancements
Reduce NPL ratio by improving the loan underwriting process
Increase utilization and sophistication of data analytics to
enhance insights and cross-selling.

4

Our Portfolio Mix Would Be More Retail-Focused
Assets Composition Mix 1)

Consumer

16%

Micro

9%

Business Banking

10%

Liabilities Composition Mix

20%
Time Deposits

33%

30%

67%

70%

9M 2017

2020

10%
10%

Commercial

26%

24%
CASA

Corporate

39%

36%

9M2017

2020

1) Excluding TSM and Wholesale Credit Recovery
Bank only figures

5

Stable Macroeconomic Indicators
Current account balance in 2Q17 was
quite stable

Inflation and Reference Rate

Capital and Financial
Account
Current Account (CA)

Headline inflation (% YoY)
10

Core inflation (% YoY)
BI Rate
20

9

BoP

2Q17 GDP Growth : Slow Improvement
7

15

7 Days RR

6.5
15

8

10

7

6

10

6.50

6

5

5

5.5

5

-

5.42

-

4.25

4

3.72

(5)

5.01
(5)

3

3.00

2

(10)

(10)

(15)

4.5
2Q17
1Q17
4Q16
3Q16
2Q16
1Q16
4Q15
3Q15
2Q15
1Q15
4Q14
3Q14
2Q14
1Q14
4Q13
3Q13
2Q13
1Q13
4Q12
3Q12
2Q12
1Q12
4Q11
3Q11
2Q11
1Q11

2Q17
1Q17
4Q16
3Q16
2Q16
1Q16
4Q15
3Q15
2Q15
1Q15
4Q14
3Q14
2Q14
1Q14
4Q13
3Q13
2Q13
1Q13
4Q12
3Q12
2Q12
1Q12
4Q11
3Q11
2Q11
1Q11

Sep-17

Sep-16

Sep-15

Sep-14

Sep-13

Sep-12

Sep-11

Sep-10

Source : CEIC, Bloomberg

5

6

7
2015

19,872

2014

18,204

2013

15,504

2012

12,246

2011

9,218

2010

7,155

2009

32,150

9M17

31,873

9M16*

43,258

2016

38,381

2015

31,507

2014

28,408

2013

23,018

2012

19,234

2011

16,693

2010

12,430

2009

12.77%

9M17

11.48%

9M16

9.66%

2016

18.33%

2015

20.95%

2014

22.23%

2013

22.55%

2012

22.00%

2011

24.40%
22.10%

5.86%

9M17

6.54%

9M16**

6.44%

2016

6.08%

2015

5.97%

2014

5.74%

2013

5.46%

2012

5.11%

2011

5.28%

2010

5.04%

2009

3.75%

9M17

3.81%

9M16

4.00%

2016

2.60%

2015

2.15%

2014

1.90%

2013

1.87%

2012

2.21%

2011

2.42%

2010

2.79%

2009

492,525

9M17

437,291

9M16

489,380

2016

443,874

2015

380,512

2014

359,957

2013

316,127

2012

256,395

2011

2010

201,958

2010

2009

186,492

2009

*If we adjust the interest income from special repayment last year, PPOP would be Rp29,933Bn (+7.4% YoY)
** If we adjust the interest income from special repayment last year, NIM would be 6.21% (-5.6% YoY)

20,335

YoY
(10.3%)

2016

YoY
(1.6%)

13,807

Net Interest Margin (%)

9M16

Non Performing Loan (%)

12,013

YoY
12.6%

YoY
11.2%

9M17

Total CASA (Rp Bn)

YoY
25.4%
YoY
0.9%

Earning After Tax (Rp Bn)
PPOP (Rp Bn)
Return on Equity (%)

Key Metrics Are Turning Positive

15,069

Key Financial Highlights
Ba k Ma di i s 9M 2017 performance continues to improve:
9M 2016

9M 2017

r%

Rp 625.1Tn

Rp 686.2Tn

9.8%

3.81%

3.75%

(1.6%)

1.27%

1.04%

(18.0%)

63.3%

64.7%

2.1%

Rp 437.3 Tn

Rp 492.5 Tn

12.6%

NIM *

6.54%

5.86%

(10.3%)

Efficiency Ratio

42.8%

44.8%

4.7%

**

Rp 31,874 Bn

Rp 32,150 Bn

0.9%

Rp 12,013 Bn

Rp 15,069 Bn

25.4%

Loans
Gross NPL Ratio
Net NPL Ratio

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

PPOP

Earnings After Tax

* If we adjust the interest income from special repayment last year, NIM would be 6.21% (-5.6% YoY)
** If we adjust the interest income from special repayment last year, PPOP would be Rp29,933Bn (+7.4% YoY)

8

Balanced Earnings Between Wholesale and Retail
Net Interest Income Analysis 3Q 2017
(Rp Bn)

Fee Based Income 3Q 2017
(Rp Bn)

4,329 4,220

1,280
Treasury & Markets

3,605

1,048

3,419
2,882

619

2,387

2,089

1,992

3,257

304

259

1,277
Commercial

656

3Q'17 3Q'16
Consumer
Banking

1,406
1,329

1,612

963

3Q'17 3Q'16
Commercial
Banking

971

762

1,170

1,555

983

1,036

3Q'17 3Q'16
Corporate
Banking

273
514

2,456

148

180

3Q'17 3Q'16
Treasury
& Markets

3,359

426

1,131

1,825

831

1,216

Corporate

3Q'17 3Q'16
Micro &
Business
Banking

Consumer

1,164

Micro & Business
Banking

686
618
3Q '17

3Q '16

9

Maintaining Momentum for Growth
Loans by SBU + Subsidiaries
(Rp Tn)

Deposits by Product – Consolidated
(Rp Tn)

Y-o-Y
r

Total

Total
686.2 Tn

Subsidiaries
Small
Comm
Corp+Gov't+SAM

625.1 Tn

Micro
Cons
Int'l

64.8

46.0 46.7

42.5

26.2

30.5 26.6

25.0 25.9

9.6%

24.2 23.6

5.9%
243.1

229.6

(2.6%)

65.6 61.8
124.6

28.5

123.2

30.3

25.7 27.0

117.6

124.4

101.2

100.2

95.4

90.7

91.7

28.0

62.7 60.2

62.7

60.5

62.4
101.2

58.1

227.8

224.4

212.1

220.5

24.7

10.3%

24.2

70.9
75.8 77.6

83.4

20.7

78.9

73.4

22.2

77.9

18.8

25.3

36.1

49.1
51.1

226.2

150.7

11.7%

15.1

53.9

1.8

1.4

12.5

46.2

1.3

17.8

67.3

1.2 1.1

16.1

148.1

(4.0%)

31.1

761.5 Tn
690.5 Tn 26.9

20.1

147.8

0.8 1.0
1.1 0.8

Rp Savings
33.7 30.5

108.4

157.6

157.3

162.6

158.5

1.4

153.7

160.6

148.9

1.0 0.9
2.0 1.3 0.8

20.6%

(3.1%)

26.5 27.8

23.1%
3.1%

24.7

29.4
23.3 25.4

15.3

12.0

13.2%

11.6

9.7
218.1

243.7

224.1

247.9

247.2

272.0

259.0

277.9

279.9

2Q'15

3Q'15

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

3Q'17

3Q'17

211.0

236.1

2Q'17

1Q'15

242.9

1Q'17

207.3

234.7

4Q'16

4Q'14

230.3

3Q'16

227.7

211.4

2Q'16

4Q'13

205.0

1Q'16

214.7

185.2

4Q'15

4Q'12

198.8

3Q'15

186.9

185.0

2Q'15

4Q'11

180.6

1Q'15

151.8

174.5

4Q'14

4Q'10

175.8

4Q'13

121.9

167.9

4Q'12

4Q'09

130.2

4Q'11

97.1

110.9

4Q'10

4Q'09

93.1

4.5

145.1

1.4

142.8

63.8

23.6

80.7

18.8 30.7
5.4
17.1

102.7

27.2
7.3 39.0
22.7

116.9

11.8
47.7
30.2

149.4

56.6
40.5 38.4

(1.2%)

73.4

67.7 69.5

152.7

19.0

78.9

84.8 87.2 91.3 95.2

165.2

64.7 65.7

57.5 59.0

FX Savings

176.2

72.3

60.8

59.8

56.1

76.1

59.0

Rp Demand

206.3

60.0

60.5

54.3

FX Demand

238.5

40.0

52.2

22.1%

Rp Time

245.6

44.2

57.9 57.9
56.0 55.3

48.9 46.5

50.6

60.9

57.0

23.9%

FX Time

222.3

27.0

34.6 37.2

69.3 71.2

9.8%

800
780
760
740
720
700
680
660
640
620
600
580
560
540
520
500
480
460
440
420
400
380
360
340
320
300
280
260
240
220
200
180
160
140
120
100
80
60
40
20
0

242.1

54.7 54.3
55.5

63.9

59.4

39.7

80.3
76.4

57.0 57.9

49.1 69.8

700
680
660
640
620
600
580
560
540
520
500
480
460
440
420
400
380
360
340
320
300
280
260
240
220
200
180
160
140
120
100
80
60
40
20
0

Y-o-Y
r

10

Strong and Liquid Balance Sheet
Assets

Sept 2017 Sept 2016

Liabilities

Sept 2017 Sept 2016

Cash

21,027

20,126 Current Account

184,810

163,055

Current Acc w/ BI & Other Banks

68,842

57,708 Savings

307,715

274,236

Placement w/ BI & Other banks

76,593

58,318 Time Deposits

268,964

253,216

Receivables (Acceptances & Others)

33,561

26,637

Marketable Securities

60,949

55,633 Total Deposits

761,490

690,507

Government Bonds

100,197

102,434

Loans (Gross)

686,157

625,123 Securities Issued

17,143

8,359

Provisions of Loans

(34,695)

(30,091) Deposits from other banks

26,163

14,208

Net Loans

651,462

595,032 Subordinated Debt

190

3,693

37,424

31,166

Reverse Repo
Other Provisions
Deferred Tax Assets
Other Assets
Total

4,485

2,127 Borrowings

(1,828)

(2,252) Other Int. Bearing Liabilities

15,696

25,506

4,536

3,493 Non Int. Bearing Liabilities

56,706

48,938

58,881

55,908 Equity incl. Minority Interest

163,891

152,786

1,078,703

975,163

1,078,703

975,163 Total

11

Lower Credit Cost and Strong Non-Interest Income
Summary P&L

9M 2017

9M 2016

2.5%

59,308

56,885

4.3%

6,811

3.2%

20,469

18,228

12.3%

-8.7%

12,871

2.2%

38,839

38,657

0.5%

751

-34.7%

677

-27.6%

1,781

2,296

-22.4%

13,643

15,164

-10.0%

13,548

0.7%

40,620

40,953

-0.8%

issio s

3,214

2,755

16.7%

2,910

10.4%

9,120

8,238

10.7%

• Fo eig E ha ge Gai s - Net

766

618

23.9%

688

11.3%

2,107

1,635

28.9%

• Gai f . sale & I

208

263

-20.9%

456

-54.4%

926

672

37.8%

1,758

1,399

25.7%

1,583

11.1%

4,687

3,682

27.3%

5,947

5,036

18.1%

5,637

5.5%

16,840

14,226

18.4%

Total Operating Income

19,589

20,200

-3.0%

19,185

2.1%

57,460

55,179

4.1%

Provisions, Net

(2,889)

(6,023)

-52.0%

(3,929)

-26.5%

(12,218)

(15,911)

-23.2%

Personnel Expenses

(3,668)

(3,290)

11.5%

(3,413)

7.5%

(10,579)

(10,184)

3.9%

G&A Expenses

(3,816)

(3,497)

9.1%

(3,825)

-0.2%

(11,042)

(10,441)

5.8%

(1,767)

(889)

98.7%

(958)

84.5%

(3,689)

(2,680)

37.6%

(Rp Bn)

Interest Income
Interest Expense
Net Interest Income
Net Premium Income

*

Net Interest Income & Premium Income

3Q 2017

3Q 2016

Y-o-Y

2Q 2017

20,183

20,518

-1.6%

19,682

7,031

6,104

15.2%

13,152

14,413

490

Q-o-Q

Y-o-Y

Other Non Interest Income
• Othe Fees a d Co

. i Val & “ale of Bo ds

• Othe s
Total Non Interest Income

Other Expenses
Total Expense

**

(9,251)

(7,676)

20.5%

(8,195)

12.9%

(25,311)

(23,306)

8.6%

Profit from Operations

7,449

6,501

14.6%

7,061

5.5%

19,931

15,962

24.9%

Non Operating Income

(45)

(15)

203.9%

(24)

90.9%

(92)

(23)

306.6%

Net Income Before Tax

7,404
5,606

6,486
4,933

14.2%
13.7%

7,038
5,384

5.2%
4.1%

19,839
15,069

15,939
12,013

24.5%
25.4%

Net Income After Tax
*) Including
**) In

Rp1,941Bn special repayment in 3Q 2016
3Q 2017, including Rp675Bn tax cases provisioning

12

LDR Decreased to 89.9%, Bank Only Loan Growth of 8.1%
Quarterly Loan Data

Quarterly Loan Segment Details

(Consolidated)

(Bank Only)

91.3

95.2

54.3

57.0

59.0

59.0

157.3

157.6

243.7

237.1

52.2
57.5

84.8

152.7
235.4

78.9
50.6
46.7

60.8

59.8

87.2

165.2

212.4

162.6

76.1
46.0
60.0
158.6
206.2

72.3

73.4
44.2

42.5
60.5
200.1

186.4

160.7

56.1

69.5

67.7

40.0
57.9
185.8

149.5

65.7

39.7
57.9

37.2
55.3

181.4

149.1

64.7
34.5
56.1

145.2

142.9
177.0

175.1

62.4

60.3

52.0 32.7

57.4

176.8

127.9

49.0

46.3

123.9

116.5

55.2

56.6
46.5

166.7

129.9

166.3

131.7

169.7

129.3

153.5

125.2

151.9

118.6

1Q'16

3Q'16

4Q'15

2Q'16

3Q'15

4Q'14

2Q'15

3Q'14

1Q'15

2Q'14

4Q'13

1Q'14

3Q'13

0.7%

4.2% 4.6%
0.5%
3.3%

2Q'13

4.2%

5.1%
4.8%
-0.4%

1Q'13

6.5%

4.1%

-3.1%

15.7%
9.4%
9.7%

26.0%

11.7%

39.1%

14.2%

13.8%
12.4%

10.5%

12.2%

9.5%

7.1%

4Q'12

13.3% 12.4% 13.3%

3Q'12

20.1%

22.3%

2Q'12

19.7%

21.5%

1Q'12

22.8%

23.4%

27.0 28.2 31.0

117.1

42.5

44.1
118.2

104.4

47.7

49.3
38.5
102.3

44.5
35.1
93.6

38.5

33.2

30.9

90.1

82.9

103.0

40.7

43.3

52.4

327.2
350.4
365.2
388.8
391.6
428.7
450.8
472.4
470.4
485.8
506.5
530.0
532.8
552.8
560.6
595.5
574.7
610.9
625.1
662.0
656.2
682.0
686.2

16.8

23.9

19.0 20.7

26.6%
23.7%

-1.2%

3Q'17

YoY Growth (%)

30.0%

22.1%

2Q'18

QoQ Growth (%)

20.6%

1Q'17

3Q'17

2Q'17

1Q'17

4Q'16

3Q'16

2Q'16

1Q'16

4Q'15

3Q'15

2Q'15

1Q'15

4Q'14

3Q'14

2Q'14

1Q'14

4Q'13

3Q'13

2Q'13

1Q'13

4Q'12

3Q'12

2Q'12

1Q'12

15.1
13.1

24.9

8.1%

4Q'16

80.1%

80.7%

89.5%
89.9%
87.0% 85.3%
87.4% 90.2% 86.5% 89.4%
84.1%
85.0% 87.3%
82.9%
87.7% 88.1%
84.4%
84.5% 88.0%
83.5%

153.7

83.4% 84.4%

Total

LDR (%)

231.3

Loans (Rp Tn)

Y-o-Y Break
r down

10.7%
6.2%
3.7% 1.4%

11.5%

11.6%
11.2%

7.9%

6.3%

5.9%

9.8%
3.9%
0.6%

2.3%
0.0%

3Q'17

2Q'17

1Q'17

4Q'16

3Q'16

2Q'16

1Q'16

4Q'15

3Q'15

2Q'15

1Q'15

4Q'14

3Q'14

2Q'14

1Q'14

4Q'13

3Q'13

2Q'13

1Q'13

4Q'12

3Q'12

2Q'12

1Q'12

-0.9%

Corporate

Commercial

Small

Micro

Consumer

As of September 2017; Non-consolidated numbers

13

Rp 196.87 Tn in Loans Disbursed in 3Q 2017
Loan Disbursement by Segment – 3 Q 2017 Bank-Only
Rp Tn

Loan Movement– 3Q 2017 Bank-Only
Rp Tn

196.87

152.65
7.59
30.05

12.87

10.06

2.14

7.62

1.11

18.10

196.87
605.89

605.62

153.50

2Q'17 Disburs. Install. Payment Pay-off

FX
Impact

WriteOffs

3Q'17

Corporate Commercial

Small

Micro

Consumer

Total

14

Post Asset Revaluation CAR 22%; ROE 12.8%
Bank Only - Capital & RWA Movement

Profit After Tax & ROE

Rp Bn
23.2% 24.6%
20.8%

22.1%

22.6%

18.3%
12.8%*

491.3

514.9

5,753
5,418

9.7%
5,401

352.5

400.2

4,385

2.5%

1,794
5,606

4,869 4,658

134.0

112.2

115.9

172.9

195.8

242.4

Q4 PAT

3Q17

2Q17

1Q17

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

3,263

610
2,031 1,099

1,221 1,526

1,234 1,113
1,017
1,744
305
1,168 1,549

519

2,003

2,681

3,403

4,303

4,925 5,138

3,817 4,079

9M17

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

CAR inclusive of Credit and Market Risk started in December 2004
CAR inclusive of Credit, Market and Operational Risk started in January 2010

1,528

1,408

5,384

3,991

2,352 2,543 3,744

1,390
1,166

2005

CAR

4,660 4,786

2,536

Q1 PAT

Total Capital (Rp Tn)

4,933

2,833 1,040

Q2 PAT

97
967
519
-623

4,509

1,345

Q3 PAT

27.4 28.4 28.3 27.2 30.5 35.7 53.3 62.0 73.9 85.7 107.4 137.4 137.0 142.8 149.2




21.0%

10.0%

3,073

RWA (Rp Tn)

22.2%

22.0%

18.1%
15.8%

577.3

14.9%

24.2%

678.7

15.3%
13.4%

662.7

15.5%

648.8

643.4

15.7%15.4%

22.0%
21.4%21.1%21.5%
18.6%
16.6%

1.1Tn from GIAA Recovery
* Annualized 9M2017

15

Q3 Bank-Only NIM of 5.6%
Yield on Assets (%)
Cost of Funds (%)

12.6 12.5 12.5

12.0 12.4 12.2

12.0

NIM
9.4

8.4

8.7
8.2 8.1

4.3

8.3

8.0

10.0
9.8 9.3
9.6 9.6
9.0
9.1
9.0 9.1 9.2
9.1 9.2 9.2

6.7 6.5

6.0
8.6 8.6 8.6

8.2 8.1 7.8

4.0

5.3 5.4

3.5

3.4
3.2

2.8 2.7 2.7 2.8 2.6

3.3
2.8 3.1

3.9 3.8 3.9
3.6 3.7 3.3
3.3
3.2
3.1 3.0 2.9 2.9 2.9

5.9

4.1 4.0
4.7 4.2 3.9
3.0

2.0
3.8

12.2

12.1 11.9

11.3 11.8 11.8

10.0

9.6

12.2
12.1

3.7 3.9

4.1

5.7 6.0
4.6

6.4

6.4

6.7

11.3

10.8
10.6

11.3 11.3

6.9

6.7 6.8

6.9 7.0 6.6

10.6

6.6

6.6

4.4 4.5 4.3 4.3

3.8

3.7

3.6

3.5 3.4

3.0

3.3 3.2

0.0

Avg Loan Yield

Avg Bond Yield

Avg Deposit Cost

14.0
13.3

12.0
10.0
8.0

6.4

7.2

6.6

6.0

4.9 5.1
4.4

4.0

5.58%
5.58%
5.69%
6.03%
7.06%
6.00%
6.28%
6.74%
5.74%
5.79%
5.41%
5.92%
5.84%
5.90%
5.94%
6.08%
5.71%
5.34%
5.50%
5.67%
5.84%
5.54%
5.19%
5.44%
5.84%
5.33%

2.0

6.4

5.3
4.5

4.5
4.2

1.5

0.7

0.6

0.7 0.7

4.6

4.6

4.4

4.3 4.4

0.8 0.7 0.7 0.9 1.1 0.8

4.3
3.8

0.7 0.7 1.0

1.0 1.2

1.3

4.2
1.2

1.3
1.1

0.0

3Q'17

2Q'17

1Q'17

4Q'16

3Q'16

2Q'16

1Q'16

4Q'15

3Q'15

2Q'15

1Q'15

4Q'14

3Q'14

2Q'14

1Q'14

4Q'13

4Q'12

4Q'11

4Q'10

4Q…

3Q'17
2Q'17
1Q'17
4Q'16
3Q'16**
2Q'16
1Q'16
4Q'15**
3Q'15
2Q'15
1Q'15
4Q'14*
3Q'14
2Q'14
1Q'14
4Q'13
3Q'13
2Q'13
1Q'13
4Q'12
3Q'12
2Q'12
1Q'12
4Q '11
4Q '10
4Q '09

* Starting on 4Q2014, we back out the LPS premium from the interest expense
** 4Q 15 / 3Q16, If we adjust the interest income from special repayment last year, NIM would be 6.5% / 6.0% , YoA would be 9.5% / 8.9%, Average FX Loan
Yield 4.2% / 4.2%

16

Greater Detail On Fee-Based Income
Non-Loan Related Fees & Commissions

Y-o-Y
Δ%

3Q 2017

3Q 2016

Administration Fees

932

878

6.1%

975

Opening L/C, BG & Cap. Market (Custodian & Trustee)

335

297

12.6%

Subsidiaries

400

388

Transfer, Retail Transaction

696

Credit Cards

Q-o-Q
Δ%

Y-o-Y
Δ%

9M 2017

9M 2016

-4.4%

2,764

2,612

5.8%

309

8.3%

966

923

4.7%

3.1%

364

9.8%

1,174

1,058

11.0%

565

23.2%

617

12.8%

1,925

1,686

14.2%

568

497

14.4%

519

9.4%

1,558

1,497

4.1%

Mutual Fund, ORI & Bancassurance

123

100

22.0%

104

18.0%

333

301

10.6%

Syndications

169

77

118.8%

64

165.4%

504

320

57.4%

18

18

(1.5%)

18

(0.3%)

53

56

(5.9%)

(25)

(65)

(60.9%)

(59)

(57.5%)

(157)

(217)

(27.7%)

3,214

2,755

16.7%

2,910

10.4%

9,120

8,238

10.7%

Foreign Exchange Gains

766

618

23.9%

688

11.3%

2,107

1,635

28.9%

Gains Fr Sale & Incr. in Value of Sec. & Gov. Bonds

208

263

(20.9%)

456

(54.4%)

926

672

37.81%

Cash Recoveries

915

810

13.0%

870

5.2%

2,451

2,001

22.5%

Others Income

844

589

43.2%

713

18.3%

2,235

1,681

32.95%

Total Fee Based Income (As Reported)

5,947

5,036

18.1%

5,637

5.5%

16,840

14,226

18.4%

% of Non Loan Related fees to total opr. income

30.4%

24.9%

30.4%

30.4%

Payroll Package
Others
Total

2Q 2017

29.4%

17

3Q 17 Cost to Income Ratio of 47.7%*
Breakdown of 3Q 2017 Operating Expenses

Quarterly Consolidated Operating Expenses & CIR
(Rp Bn)

(Rp Bn)

CIR (%)

Q3
2017

Q2
2017

Q3
2016

QoQ

YoY 3Q

9M
2017

9M
2016

YoY
9M

955

947

891

0.9%

7.2%

2,836

2,651

7.0%

1,633

1,605

1,452

1.8%

12.5%

4,856

4,760

2.0%

Post Empl. Benefits

122

119

97

3.0%

26.6%

324

298

9.0%

Training

120

70

138

72.1% -12.9%

250

353 -29.2%

Subsidiaries

837

672

712

24.6%

3,668

3,413

3,290

IT & telecoms

595

605

Occupancy Related

731

Promo & Sponsor

51.3%
48.4%

44.0%
43.2%
41.6%
39.0%
42.7%
37.3%

45.2%
46.6%
46.0%
43.8%
44.5%
44.4%
43.2%
42.7%
42.7%
41.3%
44.4%
41.1% 42.5% 41.8%
40.1%
38.5%
43.1%

32.4%

47.7%

Personnel Expenses
Base Salary
Other Allowances

2,122

8.9%

7.5%

11.5% 10,579 10,184

3.9%

505

-1.5%

17.9%

1,785

1,567

13.9%

763

700

-4.2%

4.4%

2,158

2,077

3.9%

305

231

292

31.9%

4.4%

771

857 -10.1%

Transport & Travel

179

188

157

-4.9%

13.6%

518

510

1.6%

Goods, Prof. Svcs. & Oth.

498

554

483 -10.0%

3.2%

1,505

1,380

9.1%

Employee Related

654

627

571

4.3%

14.4%

1,885

1,753

7.5%

Subsidiaries

854

858

788

-0.4%

8.3%

2,421

2,298

5.4%

3,816

3,825

3,497

-0.2%

9.1% 11,042 10,441

5.8%

1,767

958

889

84.5%

98.7%

2,680

37.6%

9,251

8,195

7,676

12.9%

20.5% 25,311 23,306

8.6%

Total Personnel Expenses

3,668
3,413
3,498
3,435
3,290
3,488
3,406
3,444
2,903
3,109
2,920
2,807
2,752
2,662
2,626
2,374
2,679
2,336
2,042
2,372
1,869
1,939
1,865
1,903
1,671
1,631
1,547
3,816
3,825
3,401
3,517
3,497
3,640
3,305
3,730
3,322
3,173
2,574
3,488
2,958
2,693
2,309
3,167
2,375
2,322
2,034
2,565
2,071
2,004
1,614
2,107
1,883
1,510
1,524
3Q'17
2Q'17
1Q'17
4Q'16
3Q'16
2Q'16
1Q'16
4Q'15
3Q'15
2Q'15
1Q'15
4Q'14
3Q'14
2Q'14
1Q'14
4Q'13
3Q'13
2Q'13
1Q'13
4Q'12
3Q'12
2Q'12
1Q'12
4Q'11
3Q'11
2Q'11
1Q'11

G&A Expenses

Personnel Expenses

17.6%

2,312

G&A Expenses

Total G&A Expenses
Other Expenses

**

Total Operating Expenses

3,689

*44.3% excluding Rp 675bn tax provisioning
** In 2017, including Rp 675bn tax provisioning

18

Prudent Management of FX Balance Sheet
100

FX Loans & LDR (Bank-Only)
Rp Tn

100%

91.5%

2.40

Oil & Gas

0.94

11%

Soc Serv

0.79

292%

Mining

0.77

28%

75%

Trading

0.54

-26%

70%

Agri

0.49

-15%

65%

Trans

0.33

3%

Utilities

0.19

1119%

Bus Serv

0.17

-5%

Constr

0.04

-51%

Oth

0.03

-96%

80
80.8%
80.3% 79.2%
76.0%76.4%

50

82.8%

80%

74.3%

73.2%

76.2% 75.8%
75.4%

74.2%73.1%

72.0%
69.0%

68.0%
65.1%

33%

85%

84.7%
82.9%

USD
Bn

Mfg

90%

89.0%

60

r% (YoY)

95%

90

70

Breakdown of FX lending (Bank-Only)
Q
(Total USD 6.68 Bn)

72.6%

71.3%
66.8%

64.3%

40
61.1%

61.0%

38.60
41.87
44.44
40.35
41.88
45.47
45.73
49.62
48.17
53.29
59.79
67.75
62.22
62.95
72.24
75.38
73.52
76.90
78.52
87.79
83.85
86.55
77.72
87.85
89.14
90.77
90.03

30

20

60%
55%
50%

Sep 17
Jun 17
Mar 17
Dec 16
Sep 16
Jun 16
Mar 16
Dec 15
Sep 15
Jun 15
Mar 15
Dec 14
Sep 14
June 14
Mar 14
Dec 13
Sep 13
Jun 13
Mar 13
Dec 12
Sep 12
Jun 12
Mar 12
Dec 11
Sep 11
June 11
Mar 11

Loan FX

LDR FX
19

Diversifying our Strength in Wholesale Le di g…
Top 10 Industries in Corporate Lending Expansion
3Q 17 – 3Q 16 (Total Rp24.76 Tn)

Top 10 Industries in Commercial Lending Contraction
3Q 7 – 3Q 6 (Total –Rp5.03 Tn)
r%

r%

Mfg-F&B

8,961

37%

Trad-Distr

-2,578

-13%

Electricity

6,373

39%

4 wheels-vehicles

-2,438

-74%

Mining-Metal Ore

6,157

212%

Mining-Coal

-1,644

-32%

Mfg-MetalAuto

5,647

114%

Others

-1,523

-15%

Bus Serv

2,215

16%

Mfg-RawM

-1,421

-13%

Roads & Bridge

2,108

24%

Mfg-P&P

-1,356

-28%

Mfg-NonM

2,038

56%

Trad-Imp

-893

-20%

Warehousing

1,930

432%

Trad-Exp

-709

-23%

Mining-Oil & Gas

1,778

19%

Mfg-Text

-660

-10%

Mfg-Chem

1,295

7%

Gas

-570

-87%

Rp Bn

Rp Bn

20

21
3Q17

149,351
140,278
73,192
74,334
89,959
74,116
53,604
61,691
62,257
58,055

2016

Excluding Mandiri Transaction System

154,664
131,988

20,821
19,451
18,531
17,592
16,853
16,200
15,565
15,101
14,676
14,397
14,105
13,873
13,629
12,932
11,899
10,943
7,784
6,153
4,066
2,414
745

3Q16

2015
2014
2013
2012
2011
2010
2009
2008
2007
-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

17.2% YoY
Growth
160,000

180,000

3Q17
2Q17
1Q17
4Q16
3Q16
2Q16
1Q16
4Q15
3Q15
2Q15
1Q15
4Q14
3Q14
2Q14
1Q14
4Q13
4Q12
4Q11
4Q10

*)

Average # of Cash Management Tx
(000), total 31.4Mn transactions in
3Q 2017*
Wholesale CASA Deposits
(Rp Bn)
Cash Management Users

Wholesale Transactions Driving CASA

10,458
9,152
8,439
7,563
7,392
7,085
5,704
5,384
5,266
5,123
4,832
4,484
3,989
3,598
2,657
2,201
1,178
677
248

3Q17
2Q17
1Q17
4Q16
3Q16
2Q16
1Q16
4Q15
3Q15
2Q15
1Q15
4Q14
3Q14
2013
2012
2011
2010
2009
2008
2007
2006

Strong Pickup in Cash Management
Mandiri Cash Management*
Value (Rp Tn)

Forex

# of Trx (000)

5,000.0

Value (USD Bn)
84,144

82,075

# of Trx

95,000

500,000

90.0

4,500.0

399,500 379,730
322,795
310,512
348,436

80.0
75,000

61,599
44,184

4,000.0

3,500.0

62,174

70.0

55,000

60.0

3,000.0

2,500.0

2,000.0

2,503

1,500.0

7,668

433,929

450,000

348,436

400,000

337,137

350,000

300,000

24,543
13,676

50.0

35,000

281,153

40.0

250,000

200,000

15,000
30.0

4,375

20.0
100,000

-

(25,000)

Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16

39

35

46

41

56

-

50,000

-

Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16

Sep 16 Sep 17

Trade Transactions : Export, Import, Domestic
Value (USD Bn)

61

63

10.0

42

(5,000)

34

3,408

4,549

3,778

3,120

2,231

818

549

500.0

1,519

150,000

1,000.0

Sep 16 Sep 17

Wholesale Remittance

# of Trx

510,916 517,251 520,948509,207
495,813
468,870

Value (USD Mn)

600,000

160.0

739,046 730,011

180.0

140.0

800,000

651,241
599,909

500,000
160.0

406,669

120.0

# of Trx
700,000

140.0

319,944

600,000

400,000

100.0

120.0

286,295

80.0

300,000
100.0

448,219
435,866

500,000

399,585

373,602 352,252

400,000

80.0

60.0

200,000
300,000

60.0
40.0

75

72

90

126

146

135

121

20.0

-

-

94

40.0

70

89

100,000

75

107

127

137

133

125

110

85

200,000

20.0

-

Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16
*)

Excluding Mandiri Transaction System

Sep 16 Sep 17

100,000

-

Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16

Sep 16 Sep 17

22

Retail Deposits Increased by 9.4% Year on Year
Retail Deposit Analysis – Bank Only

Average Quarterly Deposit Costs (%)

Rp Savings Deposits

FX Savings Deposits

Rp Demand Deposits

FX Demand Deposits

Rp Time Deposits

FX Time Deposits

Rp DD
Rp Savings

CASA as % of total deposits

10%

Rp TD
8.3%
6.6%

6.3%

7.0%

7.9% 7.8%

7.3%

7.4% 7.5% 7.2%

6.9% 6.7% 6.6%

6.4% 6.2% 6.2%

5.9%

5.1%

5%

2.2%

2.3% 2.3%
2.1% 2.1%2.1% 2.0%
2.0% 2.0%
2.1%
2.1%
2.2%
2.0%
2.0%
1.9%
1.8% 1.9%
1.7%

2.1%
1.5% 1.5% 1.6% 1.5% 1.5% 1.4%

0%

1.3% 1.2% 1.2% 1.2% 1.3% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1%

1.5%

1.2% 1.2%

1.0% 0.8%

0.0%

FX TD

1.8%

2.0%

0.5%

3Q'17

FX DD

2Q'17

1Q'17

4Q'16

3Q'16

2Q'16

1Q'16

4Q'15

3Q'15

2Q'15

1Q'15

4Q'14

3Q'14

2Q'14

1Q'14

4Q'13

4Q'12

4Q'11

236.0

237.0

220.5

233.5

212.1

214.8

193.0

209.8

188.0

186.0

182.5

202.6

184.7

180.8

179.0

190.9

176.3

166.8

157.5

165.0

146.1

140.6

132.7

73.7%71.9%
72.5% 73.0%
500
68.8%
69.8% 69.1% 70.0% 69.6%
69.9%
480
71.6%
68.4% 67.7%67.6% 67.7% 68.8% 68.6% 68.9%
66.5%70.1%
460
66.2%
69.6%
440
10.911.2
10.7
420
11.7
9.5
400
6.8 7.0
7.4
380
121.8
9.0 7.8
7.2
6.9
120.0
360
7.7
123.7
7.0
119.5
7.0
340
120.0
6.3
116.9
110.3 115.5
320
116.0
6.4
119.2
108.3
112.2
300
9.0
110.0
9.1 7.1
84.5 100.1
88.4
9.3
280
34.833.1
36.5
5.0 4.7 4.6 80.2
13.0
6.5 6.8
7.6
32.9
260
14.4
11.4
31.9 6.9 29.930.526.0
23.522.5
5.1
13.140.212.8
240 5.0 5.0
7.8
70.710.7
71.4
12.111.9
24.5
72.1
29.0
33.0
36.4
21.723.1
25.023.1
34.4
220
71.5
29.733.6
24.033.5
28.6
21.1
4.3
20.7
200 71.670.3
24.3
4.3
22.223.2
21.022.021.8
18.617.016.718.4
180
15.6
13.714.7
15.416.1
160
14.612.813.0
140 12.7
120
100
80
60
40
20
0

1.3%

1.2%

1.1%

0.8%

0.8%

0.6%

0.6% 0.5% 0.6% 0.7% 0.8%0.7%0.7% 0.7%
0.3%0.3% 0.3%
0.3% 0.3% 0.3% 0.4%
0.6%
0.3%
0.2%
0.5%
0.3% 0.5% 0.6%
0.1%
0.4%
0.2%
0.2%

3Q'17

2Q'17

1Q'17

4Q'16

3Q'16

2Q'16

1Q'16

4Q'15

3Q'15

2Q'15

1Q'15

4Q'14

3Q'14

2Q'14

1Q'14

4Q'13

4Q'12

4Q'11

3Q'17

2Q'17

1Q'17

4Q'16

3Q'16

2Q'16

1Q'16

4Q'15

3Q'15

2Q'15

1Q'15

4Q'14

3Q'14

2Q'14

1Q'14

4Q'13

3Q'13

2Q'13

1Q'13

4Q'12

3Q'12

2Q'12

1Q'12

23

Consumer and Micro Are Key Retail Growth Drivers
Micro Credit

Retail to Total Loans

(Rp Bn)

32.6%
31.8%

33.1%

34.9%
33.8%
33.8% 33.7%
33.1%

33.3%

32.7%

31.3%

30.9%
29.6%
30.2%
29.8%

34%

56,958
46,668

YoY
22.1%

3Q2016

Growth

32%

32.7%

31.8%

10,290

31.2%

30%

211,173

204,628

196,909

196,194

185,335

182,190

173,739

175,211

167,429

165,304

158,173

155,338

146,744

140,189

131,857

130,158

123,833

118,788

108,434

105,192

96,268

91,504

28%

84,675

230,000
220,000
210,000
200,000
190,000
180,000
170,000
160,000
150,000
140,000
130,000
120,000
110,000
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000

3Q2017

Consumer

26%

(Rp Bn)

24%

16,285

22%

YoY
20.6%

95,167

Growth

3Q2017

78,882

20%
3Q 2017

2Q 2017

1Q 2017

4Q 2016

3Q 2016

2Q 2016

1Q 2016

4Q 2015

3Q 2015

2Q 2015

1Q 2015

4Q 2014

3Q 2014

2Q 2014

1Q 2014

4Q 2013

3Q 2013

2Q 2013

1Q 2013

4Q 2012

3Q 2012

2Q 2012

1Q 2012

3Q2016

Retail to Total Loans

Micro Credit

Business Banking

Business Banking
(Rp Bn)
737

Consumer
59,785

YoY
-1.2%

59,048

3Q2016

Growth

3Q2017

24

25
Kiosk
Unit

1,242

3Q17

1,221

2Q17

1,195

1Q17

1,208

2016

1,112

2015

1,009

2014

889

2013

815

2012

694

2011

562

2010

430

2009

271

2008

1,724

1,086

3Q17

611

1,717

1,084

2Q17

611

1,717

1,085

1Q17

612

1,718

1,084

2016

994

2015

898

2014

687

2013

502

2012

300

2011

200

2010

1,427

653
706

1,127
751

1,027
760

928
710

Branch

3Q'17
2Q'17
1Q1'7
4Q1'6
3Q '16
2Q '16
1Q '16
4Q '15
3Q '15
2Q '15
1Q '15
4Q '14
3Q '14
2Q '14
1Q '14
4Q '13
3Q '13
2Q '13
1Q '13
4Q '12
3Q '12
2Q '12
1Q '12

601

6

10 10 10 13

Cash Outlet

Customers (000)

Network

Strong Microfinance Growth

# Of New Customers

129,484
105,964
116,440
117,971
117,565
146,323
130,227
127,828
97,164
138,500
134,501
162,738
158,909
167,145
140,886
162,181
136,196
160,620
138,747
147,825
131,715
140,064
126,509

878

480

800
152

800
10

600

2009
2008

…as ell as Co su e Le di g, hi h ‘ose 21% Y-o-Y
Quarterly Consumer Lending Balances by Type
110,000

Other
Auto
Credit Cards
Payroll Loans
Home Equity Loans
Mortgages

105,000
100,000
95,000
90,000

Rp 95.2Tn

24,974
9,835

9,603

9,048

9,128

20,120
6,738

6,246

6,605

17,986

5,881

4,914

4,313

17,441

16,160

18,723

8,674

15,279

14,497 3,892

8,761

8,768

13,408 3,534

12,838 3,432

12,201 3,326

18,344

8,683

8,751

8,343

11,880 3,310

14,103 3,739

20,001

22,555

998

8,970

16,641

15,630

14,890

8,288

25,000

13,983

30,000

7,568 11,253 3,240

35,000

13,271

7,4865,025 8,3863,365

40,000

12,260 6,855 10,6423,198

45,000

9,013 5,303 9,3743,240

966

7,9055,195 8,9583,312

50,000

11,083 5,557 10,0303,172

927

805
809 840
10,218 5,620 9,781 3,181

55,000

904

892

17,608

765

750 683 733

18,981

70,000

21,124

75,000

1,133
1,091
1,043

23,717

80,000

60,000

Loan Type

1,206
1,197
1,199
1,194

85,000

65,000

Consumer Lending Growth by Type

Growth (%)
Y-o-Y

Other

Q-o-Q

6.46%

0.75%

Auto Loans

24.87%

5.30%

Credit Cards

13.39%

2.41%

Payroll Loans

24.50%

7.46%

Home Equity Loans

37.13%

2.01%

Mortgages

15.33%

2.61%

Total Consumer

20.64%

4.22%

20,000
15,000
32,294

31,471

30,172

29,994

28,001

27,651

26,869

26,832

26,369

26,340

26,207

26,495

26,347

26,505

26,690

26,995

27,357

26,135

5,000

24,092

10,000

0
3Q'17

2Q'17

1Q'17

4Q'16

3Q'16

2Q'16

1Q '16

4Q '15

3Q '15

2Q '15

1Q '15

4Q '14

3Q '14

2Q '14

1Q '14

4Q '13

3Q '13

2Q '13

1Q '13

*Auto & Motorcycle Loans channeled or executed through
finance companies = Rp 12.2Tn in our Commercial Portfolio

26

Transaction Capabilities Growth Driven By Mobile Banking
Transaction Volume
Quarterly Transaction Value (Rp Tn)

Quarterly Transaction Volume (Mn)
375

ATM
Branch
Mobile Banking
Internet Banking

350

325
300
275

320
354
343

300

313
309 306 311
304
295
293
295
291
287
268
258 265
254

280

250
246 249
233 235

225

212 218

200
184

175

157

125

142

117

149
138
131

154
140

100
75
50
25

0

240

242

113
89
102
85
81
76
78
67
70
57
53
55
50 49 48 46
41 43 41 39
46
3942
51 47 48
46 45 44
44
44
36
32 31 34
17 18 23 26
12

191

238

12

16.2
15.5
14.4
14.1
13.8
13.6
12.6
12.6
12.4
11.8

10.0
9.2
8.6

8

8.2
7.7

122
96
96

0

10

154

100

20

11.6
11.1
10.6

210

148

120

40

208
193

179
170

140

60

Debit Cards
Mobile Banking
Internet Banking

248

220

80

16

14

237

133

117

294

253
245.0

160
156

172

150

260

180

190

294

271

200

196

189

ATM
Mobile Banking
Internet Banking

Quarterly Users (Mn)

85

93

69
84
55
68
47 53.039
34
40 37
37
29 33 33
35
27
36 35 35
23
36
18
18
28
33
14
8 11
7
4 4 5 7
2

6

4

5.6
5.3
4.7 4.9

6.3
5.8 6.1

6.5 6.7

6.8

7.5
7.4
7.1 7.3 7.4
6.9 7.0

3.2

2

1.2

1.01.1 1.2

1.3

1.8 1.9
1.7
1.4 1.5 1.6

2.3
2.0 2.1 2.2

3Q '17
2Q '17
1Q '17
4Q '16
3Q '16
2Q '16
1Q '16
4Q '15
3Q '15
2Q '15
1Q '15
4Q '14
3Q '14
2Q '14
1Q '14
4Q '13
3Q '13
2Q '13
1Q '13
4Q '12
3Q '12
2Q '12
1Q '12
4Q '11
3Q '11
2Q '11
1Q '11
4Q '10
4Q '09

3Q '17
2Q '17
1Q '17
4Q '16
3Q '16
2Q '16
1Q '16
4Q '15
3Q '15
2Q '15
1Q '15
4Q '14
3Q '14
2Q '14
1Q '14
4Q '13
3Q '13
2Q '13
1Q '13
4Q '12
3Q '12
2Q '12
1Q '12
4Q '11
3Q '11
2Q '11
1Q '11
4Q '10
4Q '09

3Q '17
2Q '17
1Q '17
4Q '16
3Q '16
2Q '16
1Q '16
4Q '15
3Q '15
2Q '15
1Q '15
4Q '14
3Q '14
2Q '14
1Q '14
4Q '13
3Q '13
2Q '13
1Q '13
4Q '12
3Q '12
2Q '12
1Q'12
4Q '11
3Q '11
2Q '11
1Q '11
4Q '10
4Q '09

0

27

Retail Payment System Gaining Traction
Fee Income from e-channel Tx (Rp Bn)
Q4

Q3

Q2

Volume Mandiri Business
Saving Account (Rp Tn)

Numbers of EDC

Q1
125.2

120.6

7.7%
YoY
Growth

106.4

108.5
102.3

862.6
771.0

17.7%
YoY
Growth

85.8
843.4
742.7

59.4

664.8

683.3

33,732

47,127

92,903

180,532

230,352

270,352

286,861

236,711

239,312

239,670

247,859

2013

2014

2015

2016

1Q17

2Q 17

3Q 17

663.4

758.2

2012

711.7

2011

414.7

2010

347.6 382.0

2009

3Q'17

3Q'16

2016

2015

2014

2013

2012

2011

2009

2010

2017

2011

2010

2009

8.0

2016

2014

17.7

2015

2013

249.3
318.6
285.7
194.5
166.6 196.5
258.2
126.2 200.3

34.7

490.3

361.8

313.9

2012

223.7

437.5

315.2

268.5

489.2

604.3

312.8

790.0

464.4

765.2

512.9

28

Making Inroads into SME and Retail Payments

789,300

845,073

851,069

853,539

848,132

847,370

3Q '17

2Q '17

1Q '17

4Q '16

3Q '16

2Q '16

1Q '16

4Q '15

3Q '15

2Q '15

# of Transactions (000)

43,080
40,346
39,025
37,059
34,251

29,967
28,122 29,040
26,441 27,591
24,676
22,570
18,216
17,802
15,971
15,312
13,542

149,294

135,267

126,545

126,857

105,781

118,389

89,906

89,389

79,173

88,013

79,970

73,666

57,447

53,124

47,304

42,582

11,535

25,857

Co-promotion with the ITC Group for the merchants and the buyers
who transact in ITC using Mandiri Debit and also a reward program
for the building management.

3,000

40,285

18,528

Belanja Hoki/ Dagang Hoki Program

6,000

# MIB Transaction Value & Users

32,273

Prizes for buyers who do the transactions in the merchant (as a
participants), or using Mandiri EDC. For sellers, they have the
opportunity to be included into the national lucky draw.

1Q '15

Mandiri Belanja Untung Program

15,000

9,000

# of Volume

Fiesta Point Program
A program to get points based on savings average balance and # of
transactions through e-channel or branch, so that customer has the
opportunity to earn immediate prizes.

18,000

12,000

4Q '14

3Q17

3Q '14

2Q17

2Q '14

1Q17

1Q '14

2016

4Q '13

2015

21,000

3Q '13

2014

11,385
14,068
9,235
12,616
10,601

2Q '13

2013

20,357
20,186 20,187 20,329 19,927
18,373
19,355
17,444
18,974
15,996
14,508
17,101
12,773
16,052

1Q '13

2012

450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
-

344,607
331,271
340,288
382,104
322,377
334,912
267,195
348,059
308,832
322,587
299,417
349,868
306,831
290,019
272,212
265,423
261,935
212,844
201,106

643,334

# MTB Transaction & Volume

543,972

# SME Business w/ Mandiri Acc

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
'13 '13 '13 '13 '14 '14 '14 '14 '15 '15 '15 '15 '16 '16 '16 '16 '17 '17 '17

Transaction Value (Rp Bn)

# of Active Users

29

155.5%

172.2%
175.0%

4,000

6,000

8,000

10,000

12,000

14,000

30
Special Mention Ratio
Special Mention

Prov/NPL

3Q'17
2Q'17
1Q'17
4Q'16
3Q'16
2Q'16
1Q'16
4Q'15
3Q'15
2Q'15
1Q'15
4Q'14
3Q'14
2Q'14
1Q'14
4Q'13
3Q'13
2Q'13
1Q'13
4Q'12
3Q'12
2Q'12
1Q'12
4Q'11
3Q'11
2Q'11
1Q'11

Gross NPL Ratio

112.7%

124.5%

16,000

18,000

20,000
137.7%

136.2%

3.75%
3.82%
3.98%
4.00%
3.81%
3.86%
3.18%
2.60%
2.81%
2.43%
2.27%
2.15%
2.16%
2.23%
2.07%
1.90%
1.90%
1.89%
2.08%
1.87%
2.04%
2.07%
2.22%
2.21%
2.56%
2.42%
2.60%

3Q'17
2Q'17
1Q'17
4Q'16
3Q'16
2Q'16
1Q'16
4Q'15
3Q'15
2Q'15
1Q'15
4Q'14
3Q'14
2Q'14
1Q'14
4Q'13
3Q'13
2Q'13
1Q'13
4Q'12
3Q'12
2Q'12
1Q'12
4Q'11
-

4.3%
3.9%

22,000

134.2%
135.0%
133.2%
126.6%

24,000
157.4% 150.5% 145.5%

185.3%
174.2%

185.1%

187.6%
185.1%

185.5%
189.6%

2,000

4.3%
3.9%

4.7%
4.6%

4.0% 4.0%
4.4%
3.9% 4.1%
3.8%
3.8%

4.1% 4.3%

4.3%

4.7%

5.5%
5.3%
5.1%
5.1%
5.0% 5.0%
4.5%

26,000

28,000

30,000

32,000

34,000

Category 2 Loans
NPL Movement - Consolidated

Gross NPLs 3.75%, Coverage at 135.0%, Category 2 at 4.7%

32,502
31,586
28,271
25,823
31,122
30,255
31,458
27,078
28,547
29,549
27,116
22,958
23,825
21,586
19,272
17,755
17,672
16,989
15,626
14,856
15,676
13,606
13,944
12,986

Q3 2017 Total NPLs of Rp 22.66 Tn
Non-Performing Loan Movements (Rp Tn) – Bank-Only
0.65

Movement by Customer Segment (Rp Bn)

0.67
2.72

2.14
0.42 22.66

22.98

Corp

Comm

Micro

536

2,000

526

252

1,500

806

Corporate
Commercial
Small
Micro
Consumer
Total

* Excluding loans to other banks

3Qr
(Rp tn)
0.01
(0.93)
0.24
0.09
0.27
(0.32)

458

3Q' 2017

Non-Performing Loans by Segment
NPLs
(Rp tn)
0.94
16.01
2.25
1.43
2.03
22.66

Cons

3,000

2,500

2Q' 2017 UG to PL DG to NPL Payment Write-Offs Other

Small

NPLs
(%)
0.40%
10.16%
3.81%
2.51%
2.13%
3.74%*

397

1,000

86
500

39

84

855

1,038

446
-

-

-

-

UG to PL

DG to NPL

W/O

31

3Q17 Net Downgrades of 0.31% On Loans Originated since
2005
Total Loans originated since 2005
Net Upgrades(%)/Downgrades(%)#
Loan
Background

Q
Balance
(Rp Bn)

3Q 2017 Details

3Q
2015

4Q
2015

1Q
2016

2Q
2016

3Q
2016

4Q
2016

1Q
2017

2Q
2017

3Q
2017

DG to
NPL
%

UG to
PL
%

Corporate

232,414

0.38

0.24

0.13

0.24

-

0.32

0.14

0.43

-

-

-

Commercial

152,682

0.83

0.77

1.97

3.02

0.16

3.87

1.13

1.07

0.14

0.43

0.29

Small

56,882

1.24

0.54

1.31

1.50

1.36

0.63

1.20

1.65

1.23

1.37

0.14

Micro

56,938

1.50

1.08

1.37

1.45

1.35

0.84

0.94

1.09

0.86

0.92

0.07

Consumer

95,058

0.25

0.17

0.32

0.21

0.30

0.17

0.37

0.39

0.47

0.56

0.09

593,974

0.68

0.31

0.94

1.28

0.35

1.36

0.49

0.42

0.31

0.42

0.11

Total

# % downgrades and upgrades are quarterly % figures

32

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Restructured Loans

0.0%

5.0%

15.0%

0.8%
0.2%

0.2%

3.9%

2.3%

4.4%

1Q17

4Q16

3Q16

2Q16

1Q16

4Q15

2Q15

1Q15

4Q14

3Q14

2Q14

3Q '17
2Q '17
1Q '17
4Q '16
3Q '16
2Q '16
1Q '16
4Q '15
3Q '15
2Q '15
1Q '15
4Q '14
3Q '14
2Q '14
1Q '14
4Q '13
3Q '13
2Q '13
1Q '13
4Q '12
3Q '12
2Q '12
1Q '12
4Q '11
3Q '11
2Q '11
1Q '11
4Q '10
4Q '09

% DG to NPL After Being Restructured

33

1.1%

3.6%

2Q17

% NPL in Restructured Loan

3.4%
1.6%

5.5% 5.7%

13.9%

31.1%
29.6%

33.7%

33.0%

23.6%

26.2%

17.6% 17.8%
17.2%
16.2%
14.9%
13.5% 11.7%
13.0%
12.8%
10.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Downgrade to Non-Performing After being Restructured

Restructured Loans at Rp 49.9 Trillion

49.9
48.8
47.3
47.2
39.3
34.1
28.3
28.9
26.4
20.9
14.4
11.8
10.2
11.5
11.2
12.7
12.5
12.0
11.7
11.7
14.0
13.9
14.2
13.5
13.5
13.6
13.1
14.3
17.1

3Q17

3Q15

Enhancing Synergies & Value from Subsidiaries
Niche Banking

Multi-Finance

Total Assets
Rp27.7Tn

Total Loans
Rp9.2Tn

Total Disbursement
Rp15.6Tn

Equity & FI Underwriting
Rp44 Tn

Annual FYP
Rp2.4Tn

Net Interest Margin
6.5%

Net Interest Margin
2.9%

Total Deposits
Rp74.8Tn

Equity Trading Volume
Rp109 Tn

ROA
3.8%

ROA
2.0%

ROA
3.0%

ROE
5.5%

ROE
5.5%

ROE
54.4%

ROE
12.8%

ROE
17.5%

• Expansion of business to
fully utilize current capital
base
• Cross-sell capital market
services to broad range of
Mandiri customers
• Refocus business toward
higher fee income

• Providing end-to-end bank
assurance business
• Continue to build cross-sell
opportunities in various
segments
• Bancassurance products to
complete our suite of
consumer offerings

• Enhancing operating
model
• Improving risk
management systems and
IT
• Improving productivity

• Pe et ate Ba k Ma di i s
network and customer
base to develop the
multifinance segment with
a strong focus on new 4
wheel vehicles.

Syariah Banking

Investment Banking

Total Assets
Rp84.1Tn

Bond Trading Volume
Rp75 Tn

Total Financing
Rp58.7Tn

• Remains the leader in
syariah financing
• Capital injection program
over 3 years
• Cross-selling syariah
products to Mandiri
customers

Insurance

34

Net Profit After Tax (Rp Bn)

186
277
300
434
262
280
331
387
247
274
360
308
316
297
348
256
269
270
298
259
262
234
258
255
237
183
171

3Q '17
2Q '17
1Q '17
4Q '16
3Q '16
2Q '16
1Q '16
4Q '15
3Q '15
2Q '15
1Q '15
4Q '14
3Q '14
2Q '14
1Q '14
4Q '13
3Q '13
2Q '13
1Q '13
4Q '12
3Q '12
2Q '12
1Q '12
4Q '11
3Q '11
2Q '11
1Q '11

Annual First Year Premium (AFYP) (Rp Bn)

861
746
756
1,046
591
668
760
893
719
816
648
648
874
832
611
774
726
850
695
667
712
892
796
946
769
742
820

3Q '17
2Q '17
1Q '17
4Q '16
3Q '16
2Q '16
1Q '16
4Q '15
3Q '15
2Q '15
1Q '15
4Q '14
3Q '14
2Q '14
1Q '14
4Q '13
3Q '13
2Q '13
1Q '13
4Q '12
3Q '12
2Q '12
1Q '12
4Q '11
3Q '11
2Q '11
1Q '11

(29.1%) YoY
Growth
45.7% YoY
Growth

AXA Mandiri Financial Services Performance

35

3Q'17
2Q'17
1Q '17
4Q '16
3Q '16
2Q '16
1Q '16
4Q '15
3Q '15
2Q '15
1Q '15
4Q '14
3Q '14
2Q '14
1Q '14
4Q '13
3Q '13
2Q '13
1Q '13
4Q '12
3Q '12
2Q '12
1Q '12
4Q '11
3Q '11
2Q '11
1Q '11

(1.4)% YoY
Growth

# of Policy Holders ( 000)

3,883
3,871
3,930
4,101
3,939
3,961
3,832
3,710
3,465
3,360
3,162
2,962
2,657
2,479
2,354
2,217
2,123
2,033
1,967
1,919
1,878
1,859
1,791
1,744
1,695
1,639
1,603

Ba k Ma di i s

Co po ate Guida e
2017 Target

9M17 Realization

Gross Loan Growth (YoY)

9.0% - 11.0%

9.8%

Low Cost Deposits

Rp 537.0 Tn

Rp 492.5 Tn

Net Interest Margins

5.7% - 5.8%

5.86%

43.0%

44.8%

Gross NPLs

3.5% - 4.0%

3.75%

Cost of Credit

2.5% - 2.7%

2.39%

# of New ATMs

197

234

# of New EDCs

10,000

11,148

# of New Micro Network

34

-

# of New Conventional Branches

16

13

Efficiency Ratio

36

Operating Performance
Highlights

37

Corporate Banking, Government & Institutions
Performance to Date: 9M2017 (Rp Bn)

1,818

Strategies for 2017

860
7,875

488
7,386

3,202

3,715

1. Focusing on Anchor Clients and
penetrating through using of
Transaction Banking
2. Account Plan implementation for top
76 Corporate Banking Customers.
3. P o ide o e stop se i e solutio s fo
usto e s t a sa tio s a d eate
new business process to accelerate
the execution of Account Plan
including effective and responsive
Complaint Handling.
4. Strengthen business alliance with
Mandiri InHealth & Mandiri DPLK to
ease corporate customers to manage
their needs in health insurance &
pension fund / severance

38

Treasury & Market
Performance to Date: 9M2017 (Rp Bn)

3,743

422
7,134

3,847

Strategies for 2017

81
7,024

1. Implement client segmentation
strategy for Treasury anchor and nonanchor clients.
2. Increase retail coverage of fixed
income and structured products.
3. Develop new FI client coverage model
and implement segmentation strategy.
4. ‘e italize o e seas offi es fu tio as
a distribution channel, and introduce
new business models.
5. Enhance retail brokerage program in
Mandiri Sekuritas.
6. Upgrade business license status of
Mandiri Sekuritas Singapore Office.

39

Commercial Banking:
Strong revenues from Assets
Performance to Date: 9M2017 (Rp Bn)

760

Strategies for 2017
1.Tighten risk management practices by
centralizing big ticket loan approval from
regional office to head office
2.Focusing on clients within the value
chain / business ecosystem of our
corporate banking clients
3.Selectively growing the business to
sectors and regions as stipulated in
bank-wide portfolio guidance

382
5,252

1,688

3,186
6,462

-1,210

40

Commercial Banking
Solid & Stable Source of
Low Cost Funds

Expanding Scope of Distribution, 3Q 2017
Sumatera
Loans = Rp 17.4 tn
Funds = Rp10.2 tn

Kalimantan
Loans = Rp 5.0 tn
Funds = Rp 4.2 tn

Eastern
Loans = Rp 3.2 tn
Funds = Rp 2.9 tn

Product

3Q
2017

3Q
2016

Demand
Deposit

34.83

36.20

-3,78%

Rupiah

25.63

21.22

20.79%

FX

9.20

14.98

- 38.57%

Saving
Deposit*

10.37

7.98

29.98%

Total CASA

45.21

44.18

2.32%

Total Funding

64.09

60.97

5,12%

Growth

Java and Bali
Loans = Rp 131.9 tn
Funds = Rp 46.7 tn

CASA Ratio = 70.53%
Funding from Java & Bali = 73%
of total funding

* Business Savings Product

41

Micro & Business Banking:
Selectively growing our high margin business
Performance to Date: 9M 2017 (Rp Bn)

Strategies for 2017

1,864
2,530
5,930
10,065
4,194

5,871
4,801

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 retail products as well as
e-channel transactions in order to increase
usto e s lo alt a d ala es.
3. Focusing on micro and SME clients within
the business ecosystem of our corporate
banking clients
4. Growing liability spread by requiring SME
clients to put their transactional
account/CASA in Mandiri
5. Cross-selling with other products, such as
transaction banking, to increase fee based
income
6. Within micro, focusing on urban and semi
urban areas as well as targeting fixed
income earners
42

Business Banking :
Solid & Stable Source of
Low Cost Funds*

Scope of Distribution, 3Q 2017

Rp Tn
Sumatera
Loans = Rp 12.5 tn
Funds = Rp 18.2 tn

Medan
Pematang siantar
Pekanbaru

Kalimantan
Loans = Rp 9.1 tn
Funds = Rp 6.7 tn

Samarinda

Palembang

B.Lampung

Jambi
Tangerang
Jakarta
Bekasi

Product

Manado

Pontianak

Batam

Padang

Eastern
Loans = Rp 7.3 tn
Funds = Rp 8.1 tn

Palu

3Q
2016

Growth
YoY

Demand
Deposit

37.5

34.6

8.5%

Saving
Deposit

79.3

72.0

10.1%

Total CASA

116.8

106.6

9.6%

Total
Funding

138.7

131.1

5.8%

Jayapura

Balikpapan
Banjarmas
in
Solo
Surabaya

Makassar

Bogor
Bandung Semarang
Java and Bali
Loans = Rp 30.1 tn
Funds = Rp 105.7 tn

3Q
2017

Denpasar

Branch Class that covered SME Customers
A.1 : 34
B.2 : 71
A.2 : 46
B.3 : 68
B.1 : 42
B.4 : 23

CASA Ratio = 84.2%
Funding from Java & Bali = 76.1%
of total funding

43

Consumer Banking:
Significant growth in spread and fee income
Performance to Date: 9M2017 (Rp Bn)

3,707

Strategies for 2017

965
12,997

1,773
11,224

7,246

3,008

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.

Mortgage package
Mortgage priority
Mortgage for depositors
Instant approval for mortgage
Selco Xtra payroll loan
SOE synergy for payroll loan
Regular top up for payroll loan
Cross-sell payroll loan
Regular auto loan through branch referral
Improving the quality of new card holders
acquisition
Raise the limit of credit card
Usage program with strategic partner
Mandiri
Bonus
Program
(Bonus
Untung, Bonus Max, Bonus Plus, etc)
Regional marketing program for savings
Special program for drop fund depositors
Bundling program
Internal branch contest for saving
44

InHealth – Opportunity to Increase Fee Income and
Contribute to the Insurance Portfolio
1,800
1,600
1,400
1,200
1,000
800
600
400
200
-

1,410 1,400
1,073

1,432

1,591 250

1,620

200

1,272

1,203

150

811

100
203

36

50

78

47

107

120

203

155

164

126

135
0

2009 2010 2011 2012 2013 2014 2015 2016

Profit (Rp Bn)

9M16 9M17

GWP (Rp Bn)
8,000

1,600,000
1,400,000
1,200,000

6,242

6,314 6,262 6,094 6,189

7,072 7,018 6,855

5,501

6,000

1,000,000

800,000

4,000

600,000
1,463,400

1,247,334

940,696

1,087,313

1,141,896

1,118,206

1,175,240

1,023,228

200,000

692,831

400,000

-

2,000

2009 2010 2011 2012 2013 2014 2015 2016 9M17

Total Member

# of Providers

Leveraging our institutional, corporate, &
commercial customers
We have over 700 institutional, 300 corporate, and 1,700
commercial customers with the potential to become members
of InHealth

Providing solutions through our banking
products to InHealth healthcare provider
• InHealth has 6,855 healthcare providers and recorded over
Rp 1,016 Bn in claims year to date 2017
• Bank Mandiri will leverage the hospital network as I Health s
partner to increase transactions through enhanced cash
management products
• Bank Mandiri also will provide retail packaged products for
all the doctors as I Health s partner

Cross-selling Mandiri products to InHealth
members
InHealth earned premium payments of Rp 1,257 Bn in 2017
year to date from clients. Going forward, Bank Mandiri will
encourage the use of cash management products through
Bank Mandiri s distribution channels and cross sell other
products to over 1.4 Mn InHealth members.

45

2Q'17
1Q'17
4Q'16
3Q'16
2Q'16
4Q'15
3Q'15
2Q'15
1Q'15
4Q'14
3Q'14
2Q'14
1Q'14
4Q'13
3Q'13
2Q'13
1Q'13
4Q'12

3Q'12
2Q'12
1Q'12
4Q'11
4Q'10
4Q '09
4Q '08
4Q '07

80.2%

58.72

3Q'17

81.9%

58.06

2Q'17

79.5%

55.42

1Q'17

79.2%

55.58

4Q'16

80.4%

53.24

3Q'16

82.6%

52.71

2Q'16

80.1%

50.74

1Q'16

51.09

4Q'15

50.60

3Q'15

85.3%

50.40

2Q'15

81.7%

48.80

1Q'15

82.1%

49.13

4Q'14

85.7%

49.32

3Q'14

89.9%

49.60

2Q'14

90.3%

49.82

1Q'14

89.4%

50.46

4Q'13

91.3%

49.70

3Q'13

94.2%

48.40

2Q'13

95.6%

46.30

1Q'13

93.9%

44.50

4Q'12

93.9%

41.82

3Q'12

92.2%

39.93

2Q '12

87.2%

37.44

1Q '12

86.2%

36.73

4Q '11

23.97

4Q'10

16.06

4Q '09

13.28

4Q '08

10.31

4Q '07

82.7%
83.1%
89.1%
91.1%

Financing

82.0%