08 07 28 Q2 2008 Analysts Meeting
PT Bank Mandiri (Persero) Tbk
nd
2 Quarter 2008
Results Presentation
Bank Mandiri Presentation Contents
Results Overview
Q2 2008 Financial Highlights
Q2 2008 Growth Momentum and Balance Sheet
Loan Growth & LDR
Quarterly Funding Mix & Deposit Costs
Quarterly Net Interest Margins
Quarterly Fees & Commissions
Recap Bond Portfolio Analysis
Quarterly Overhead Expenses & Detail
Quarterly NPL Movement, Asset Quality & Provisioning
New NPL Formation
Top NPL Debtor Developments
Operating Profit, Core Earnings, PAT
Page #
2
3-4
5-6
7
8
9
10
11
12-14
15
16
17-18
Operating Performance Highlights
SBU & Subsidiary Overview
Corporate Banking
Treasury & International Banking
Commercial Banking
Micro & Retail Banking
Consumer Finance
2008 Goals
Supporting Materials
20-22
23-25
26
27-29
30-32
33-35
36
37-78
1
Key Financial Highlights
Bank Mandiri’s First Half 2008 Performance continued to demonstrate
marked improvements in a number of key indicators:
H1 2007
H1 2008
U%
Rp116.3 tn
Rp149.6 tn
28.6%
Net NPL Ratio
3.92%
0.97%
(75.3%)
Gross NPL Ratio
15.47%
4.74%
(69.4%)
Low Cost Funds Ratio
58.3%
64.0%
9.8%
Rp120.3 tn
Rp151.3 tn
25.8%
5.25%
0.2%
44.4%
8.0%
2,610 bn
22.0%
Loans
[Low Cost Funds (Rp)]
NIM
5.24%
Efficiency Ratio
41.1%
Earnings After Tax
(1)
(2)
Rp2,140 bn
Including non-recurring interest income: (1) 5.64%; (2) 38.74%
2
Building momentum for growth
Loans by SBU*
(Rp Bn)
125
Corp
Cons
Int'l
Small
75
3.46 62.9%
12.90 61.9%
2.68 2.90
13.08 12.49 17.52
37.9%
1.94
8.86
2.12
7.97
25.85
24.36 25.82
0.91
0.95
250
Rp Demand Deposits
FX Demand Deposits
Rp Time Deposits
FX Time Deposits
200
15.7
12.6
12.1
2.82
3.39
4.06 170.9%
93.2
70.0
14.5
11.9
100
13.2
14.9
44.84 42.27 47.77 44.4%
73.4
66.7
80.5
50
33.6
Y-o-Y
U
15.9
14.7
150
1.5
36.12 33.08
29.94
Rp Savings Deposits
14.23 15.74
1.73
7.56
36.48 41.3%
11.08 12.71
31.46 32.75
10.66
50
25
Y-o-Y
U
Comm
Micro
100
Deposits by Product – Bank Only
(Rp Bn)
19.5
50.4
36.4
14.7
21.5%
63.3 (9.5%)
13.5 (30.7%)
41.3
24.9%
88.5
41.6%
33.1
30.1
45.2
57.6
62.5
81.5
81.7
0
0
Q4 '05
Q4 '06
Q2 '07
Q4 '07
Q1 '08
Q2 '08
Q4 '05 Q4 '06 Q2 '07 Q4 '07 Q1 '08 Q2 '08
*Cash Collateral Loans have been reallocated to Small Business
3
Solid balance sheet insulates against rate
increases
(Bank Only)
Amount
% of
Assets
Cash
4,969
1.74%
SBI & BI Placement (net)
27,165
Placements w/other banks
(net)
Amount
% of
Liab.
Current Account
54,830
19.19%
9.51%
Savings
88,522
30.98%
12,023
4.21%
Time Deposits (Rp)
63,341
22.17%
Marketable Securities (net)
3,224
1.13%
Time Deposits (Fx)
14,685
5.14%
Government Bonds
88,189
30.86%
Total Deposits
221,378
77.47%
Loans (Gross)
134,501
47.07%
Securities Issued
833
0.29%
Provisions
(9,054)
(3.17%)
Deposits from other banks
3,327
1.16%
Other Advances (net)
8,980
3.14%
Borrowings
9,488
3.32%
Investments
2,869
1.00%
Other Interest bearing liabilities
2,863
1.00%
Other Assets
12,905
4.52%
Non Interest bearing liabilities
20,169
7.06%
Equity
27,711
9.70%
Total
285,770
100.00%
Assets
Total
285,770
100.00%
Liabilities
4
LDR rises to 62.2% with 28.6% Y-o-Y
consolidated growth
Quarterly Loan Data – Consolidated
Loans (Rp tn)
LDR (%)
Quarterly Loan Segment Details – Bank Only
62.2%
53.7%
57.2%
56.4%
59.7 55.4 61.1
53.6
50.5
Corporate 44.7
42.3
40.2 38.2
35.7 Commercial 32.5
32.6
31.4
54.3%
42.5%
35.4%
36.4 35.5
39.1
22.2
26.3%
Q2 '08
Q1 '08
Q4 '07
Q3 '07
QoQ Growth (%)
YoY Growth (%)
Q2 '07
10.4%
13.7 13.1 13.3
10.0 Small
2.7 2.9 3.5
2.1
Q1 '07
28.6%
17.5
10.2
7.6 Micro
1.9
1.7
Q4 '06
By Segment
(Bank only)
14.3 15.8
Q4 '05
8.5
Q4 '04
Q4 '03
Q4 '02
149.6 Q2 '08
135.5 Q1 '08
138.5 Q4 '07
121.7 Q3 '07
116.3 Q2 '07
114.3 Q1 '07
117.7 Q4 '06
106.9 Q4 '05
94.4 Q4 '04
75.9 Q4 '03
65.4 Q4 '02
48.3 Q4 '01
43.0 Q4 '00
1.5
3.7
Consumer
11.7
10.7 11.1
Loans
(Rp tn)
Y-O-Y Growth
(%)
% of
Portfolio
Corporate
61.07
20.89%
45.40%
Commercial
39.11
20.20%
29.08%
Small
13.34
33.09%
9.92%
Micro
3.46
62.68%
2.57%
Consumer
17.52
49.91%
13.03%
Total
134.50
20.89%
100.00%
As of June 2008; Non-consolidated numbers
5
Rp24.1 tn in loans disbursed in Q2 ‘08
Loan Disbursement by Segment (Rp tn) – Bank Only
Loan Movement (Rp tn) – Bank Only
3.46
24.12
8.38
0.62
2.86
134.50
0.22
122.63
1.00
1.95
5.68
24.11
12.63
Q1 '08
Disbursment Installment
Payment
FX Impact
Write-Offs
Q2 '08
Corporate
Commercial
Small
Micro
Consumer
Finance
Total
Disbursements
6
Q2 Deposits rise by 12.3% Y-o-Y and 4.7% Q-o-Q
63.3 13.5
66.7 11.9
41.3
36.4
35.4
50.4
69.1 15.9
33.1
33.6
Q2 '08
Q1 '08
Q4 '07
Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
40.6 Q4 '03
52.0 Q4 '04
45.2 Q4 '05
57.6 Q4 '06
57.2 Q1 '07
62.5 Q2 '07
65.7 Q3 '07
81.5 Q4 '07
81.7 Q1 '08
88.5 Q2 '08
0.0%
32.9%
14.114.3 Q4 '99
97.1 5.8
87.84.6 31.118.0 Q4 '00
33.8% 100.7 7.6 24.8 29.6 Q4 '02
31.4% 106.9 6.2 31.2 22.1 Q4 '01
80.5 9.1 28.8
66.5 11.9 28.0
93.2 14.9 30.1
80.5 13.2
72.9 14.4 31.0
70.0 19.5
62.1% 73.4 14.5
14.7
14.764.8%
15.9
13.7
12.1
58.4%
13.9
12.6 52.9%
15.7
11.6
17.3
1.5%
0.8% 0.5%
0
23.1%
40
20.6
23.4
16.5
120
21.5
0%
2.2%
2.5% 2.5%
2.6%
2.4%
2.0%
1.7%
2.1% 2.2%
1.5% 2.4%
1.1%
1.7%
2.6%2.9%
2.6%
3.0%
3.9%
3.7%
4.0% 4.2%
4.5%
FX TD
FX DD
80
3.5%
5% 6.1%
3.0%
3.7%
6.9% 6.8%
6.3%
3.6%
3.2%3.0%
4.7%
7.4%
5.3%
8.2%8.0% 8.4%
8.8%
11.9%
10.4%
11.4%
240
7.4%
160
FX Time Deposits
Low-Cost Deposits (%)
Rp Time Deposits
9.9%
Rp Savings
1 Mo. SBIs
Rp DD
Rp TD
15% 13.9%
13.1%
Rp Demand Deposits
FX Demand Deposits
Rp Savings Deposits
10% 9.5%
200
Average Quarterly Deposit Costs (%)
Deposit Analysis – Bank Only
7
Q2 COF declines to 3.8%, with NIM of 5.5%
Quarterly Net Interest Margins*
13.0%
Yield on Assets
Cost of Funds
13.0%
10.8%
Quarterly Yields & Costs by Currency*
11.0%
10.7%
10.8%
9.5%
9.4%
8.9%
9.0%
9.3%9.2%
20% 18.9%
17.6%
15.9%
14.0%17.6% 14.1%
15%
11.9%
12.5%
14.4%
10.4%
10%
10.8%
11.7%
11.1%
13.2%
7.4%
7.3%
5%
IDR
8.2%
12.1%
12.0%
8.8%
8.2%
8.4%
8.0%
7.7%
8.0%
5.0%
4.6%
6.9%
5.4%
4.0%
7.3%
0%
6.4%
6.3%
11.1%
Avg Loan Yield
Avg 1-Mo Bill
4.8%
15%
4.8%
NIM
Avg Bond Yield
Avg COF
4.5%4.3%
3.8%
11.8%
10%
FX
9.5%
7.6%
6.5%
5% 6.7% 4.8%3.8%
5.7%
5.5%
5.1%
4.7%
4.9%
4.9%
5.5%
4.9%
3.6%
4.3%
3.7%
2.8%
3.9%
2.4%
1.9%1.4%
1.1%
5.8%
5.3%
4.9%
4.4%4.0%
1.8%
2.3%
0%
3.4%
3.5%
2.7%
2.6%
Q2 '08
Q1 '08
Q4 '07
Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
Q4 '01
Q4 '00
Q2 '08
Q1 '08
Q4 '07
Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
Q4 '01
Q4 '00
*Excluding the impact of non-recurring interest income
7.3%
5.8%
5.6%
5.1%
8
H1 Fees and Commissions grew by 45.9%
Breakdown of Q2 2007 & 2008 Non-Loan Related Fees & Commissions (Rp bn)
Non-Loan Related Fees &
Commissions
H1 ‘07
Q1 ‘08
Q2 ‘08
H1 ‘08
H1U%
(Y-o-Y)
Q2 U%
(Q-o-Q)
Administration Fees
332.47
237.43
261.24
498.67
50.0%
10.0%
Opening L/Cs, Bank Guarantees &
Capital Markets
200.69
81.75
109.71
191.46
(4.6%)
34.2%
Subsidiaries
158.02
139.73
142.18
281.92
78.4%
1.8%
Transfers, Collections, Clearing &
Bank Reference
87.77
51.06
54.52
105.58
20.3%
6.8%
Credit Cards
104.35
78.85
86.83
165.68
58.8%
10.1%
7.07
10.32
16.64
26.96
281.3%
61.2%
212.15
165.87
172.47
338.35
59.5%
4.0%
Total
1,102.52
765.02
843.59
1,608.61
45.9%
10.3%
Total Operating Income#
8,924.39
4,261.44
4,666.39
8,927.82
0.0%
9.5%
Non-Loan Related Fees to Operating
Income**
12.35%
17.95%
18.08%
18.02%
28.6%
0.7%
Mutual Funds & ORI
Others*
* Others includes Syndication, Payment Points, ATMs, Debit Cards, etc.
** Non-Loan related fees & commissions/(Total Operating Income - Non-recurring interest income)
#
Excluding non-recurring interest income
9
Limited Impact on Government Recap Bonds
Bonds by Rate Type & Portfolio as of Jun 2008 (Rp bn)
Recap Bond Portfolio by Type and Maturity (Rp bn)
Maturity/
Rp bn
Trading
Portfolio
Nominal
Available for Sale
MTM
Nominal
MTM
70
Held to
Maturity
1.35
60
Fixed Rate
50
Variable Rate
40
Fixed Rate Bonds
0.93
30
< 1 year
271
271
9
9
-
1 - 5 year
142
143
200
191
1,350
10
5 - 10 year
27
27
499
483
-
0
> 10 year
56
56
224
216
-
Sub Total
496
497
932
899
1,350
Variable Rate Bonds
< 1 year
-
-
-
-
-
1 - 5 year
10
10
299
299
-
5 - 10 year
-
-
12,886
12,886
29,388
> 10 year
-
-
12,597
12,597
30,459
Sub Total
10
10
25,782
25,782
59,848
Total
506
507
26,714
26,681
61,198
59.848
20
25.782
0.50
0.01
Trading*
AFS#
HTM^
* Mark to Market impacts Profit
# Mark to Market impacts Equity
^ Nominal value
Q2 Recap Bond Gains/(Losses) (Rp bn)
Q2 ‘07
Q2 ‘08
Realized Gains/Losses
on Bonds
129.84
(54.23)
Unrealized Gains/Losses
on Bonds
13.02
33.44
Total
142.87
(20.78)
10
H1 Cost to Income Ratio remains 44.4%, on
track with FY expectations
Quarterly Consolidated Operating Expenses & CIR*
Breakdown of Q2 2007 & 2008 Operating Expenses
Q2 ‘07
Q2 ‘08
Change
(Y-o-Y)
Base Salary
294,225
358,365
21.80%
Other Allowances
430,057
510,971
18.81%
Post Employment Benefits
70,338
102,075
45.12%
Training
45,120
74,818
65.82%
Subsidiaries
89,168
128,772
44.42%
928,908
1,175,001
26.49%
IT & Telecommunication
195,318
200,335
2.57%
Occupancy Related
208,934
240,043
14.89%
Promotion & Sponsorship
66,896
200,296
199.41%
Transport & Traveling
65,849
73,474
11.58%
Professional Services
65,927
90,720
37.61%
Employee Related
56,858
82,299
44.74%
Subsidiaries
88,219
146,600
66.18%
748,001
1,033,767
38.20%
C IR* (%)
Annual Avg C IR (%)
Personnel Expenses
58.9%
47.2%
44.3%
40.4%
47.2%
40.2%
28.2%
Total Personnel Expenses
1,175
1,020
1,309
795
929
1,049
869
1,241
723
377
327
649
1,034
764
993
957
748
710
1,016
842
1,034
749
775
753
957 336
Q2 '08
Q1 '08
Q4 '07
Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
Q4 '01
Q4 '00
G&A Expenses (Rp bn)
Personnel Expenses (Rp bn)
*Excluding the impact of non-recurring interest income & bond gains
G & A Expenses
Total G & A Expenses
11
Q2 NPLs drop to Rp7.1 tn on upgrades, payments
and write-offs of Rp903 bn
Non-Performing Loan Movements (Rp bn) – Bank Only
Movement by Customer Segment (Rp Bn)
800
Corp
Micro/Small
Comm
Cons
163
7,256
116
709
624
74.8
7,109
47
600
112.1
99.7
91.2
400
86.8
346.1
200
0
Q1 '08
U/G to PL D/G from Payments Write-Offs
PL
Other
Q2 '08
346.2
47.0
25.3
43.6
175.6
UG to PL
DG to NPL
W/O
12
Gross NPLs decline to 4.7% with provisioning
coverage of 122.6%
NPL Movement - Consolidated
Category 2 Loans – Bank Only
70.9%
20,000
190.4%
201.7%
175.8%
25.3%
146.7%
122.6%
40%
14,000
19.8%
12,000
86.7%
30%
24.8%
10,000
8,000
20%
15.5% 14.8%
15.0%
6,000
4,000
9.2%
10.0%
10%
13,451
14,058
15,148
15,586
0
9.4%
15,854
16,750
16,966
12,912
8,334
10,983
16,202
0%
Q2 '08
Q1 '08
Q4 '07
Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
Net NPL Ratio
Prov/NPL incl. Coll.
2,000
11.9%
12,655 Q4 '01
15,350 Q4 '00
4,033 Q4 '99
4.74%0.97%
Q2 '08
Q1 '08
Q4 '07
3.3% Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q4 '04
Q4 '03
Q4 '02
Q4 '01
Q4 '00
Q4 '99
15.3% Q4 '05
5.14%
7.2%
7.1%
8.6%
7.3%
9.7%
12.2%
15.5%
16.3%
16.3%
44.4%
Gross NPL Ratio
Prov/NPL
16,000
109.0%
100.9%
70.0%
Cat 2 %
18,000
35.7%
151.1%
139.1%
129.5%
128.8%
50%
2 - Special Mention Loans (Rp Bn)
13
Cash Provisioning for Category 5 loans now
at 99.4%
Collateral Valuation Details
Non-Performing Loans by Segment
NPLs
(Rp tn)
Q1U
(Rp tn)
NPLs
(%)
Corporate
4.75
(0.20)
7.78%
Commercial
1.40
0.17
3.58%
Small
0.36
(0.03)
2.69%
Micro
0.13
(0.01)
3.82%
Consumer
0.47
(0.08)
2.67%
Collateral
Prov. (Rp bn)
7.11
(0.15)
4.74%
# of Accounts
Total
• Bank Mandiri’s current provisioning policy adheres
to BI requirements
• As of 30 June ’08, loan loss provisions excess to BI
requirements = Rp937 bn
Provisioning
Policy
Performing
Loans
Collectibility
1
2
3
4
5
BI Req.
1%
5%
15%
50%
100%
BMRI Policy
1%
5%
15%
50%
100%
BMRI pre-2005
2%
15%
50%
100%
100%
Non-Performing
Loans
Collectibility
1
2
3
4
5
Total Cash
Prov. (Rp bn)
1,263
1,789
350
550
5,102
% Cash
Provisions
1.1%
13.3%
26.6%
83.1%
99.4%
-
5,139
695
-
347
23
3
2
• Collateral has been valued for 28 accounts and collateral
provisions of Rp6,181 bn (30.0% of appraised value) have
been credited against loan balances of Rp7,134 bn
• Collateral value is credited against cash provisioning
requirements on a conservative basis. For assets valued
above Rp 5bn:
– Collateral is valued only if Bank Mandiri has exercisable rights to
claim collateral assets
– 70% of appraised value can be credited within the initial 12
months of valuation, declining to:
•50% of appraised value within 12 to 18 months
•30% of appraised value within 18 to 24 months
•No value beyond 24 months from appraisal
14
Annualized net downgrades of 0.56% on
new loans in Q2
Total Loans originated since 2005
Net Upgrades (%)/Downgrades (%) #
Q2 2008 Details
Loan
Background
Q2 ‘08
Balance
(Rp bn)
Q2
2006
Q3
2006
Q4
2006
Q1
2007
Q2
2007
Q3
2007
Q4
2007
Q1
2008
Q2
2008
DG to
NPL
%
UG to
PL
%
Corporate
39,760.1
-
-
0.02
-
0.49
0.55
-
-
0.10
0.10
-
Commercial
25,249.5
1.27
1.33
2.04
0.11
0.60
0.18
0.02
0.33
0.14
0.14
-
Small/Micro
11,926.8
3.14
2.17
1.62
1.87
1.56
1.07
0.59
0.92
0.58
0.70
0.12
Consumer
16,042.5
0.73
1.18
0.25
0.78
0.34
0.28
0.01
0.42
0.13
0.31
0.17
Total
92,979.0
1.08
1.00
0.68
0.42
0.29
0.23
0.08
0.28
0.18
0.22
0.05
# % downgrades and upgrades are quarterly % figures
15
Progress on selected debtors as of 30 June ’08
Suba
Suba Indah
Indah
Djajanti
Djajanti Group
Group
Loans outstanding of this debtor as of 30 June 2008 were Rp664 billion
The debtor had filed for bankruptcy in October 2007.
The curator is still in the process of asset valuation in preparation for an asset auction.
One member of the Suba Indah group, Primayudha Mandirijaya (outstanding loans of
Rp158 billion) are in the process of settlement through investor refinancing.
By June 2008, Primayudha Mandirijaya had paid a total of Rp57.4 billion in H1.
Djajanti group consist of 5 companies (Djajanti Plaza, Biak Mina Jaya, Artika Optima Inti,
Djarma Aru and Nusa Prima Pratama Industry).
Loans outstanding to this group as of 30 June 2008 were Rp561billion.
The obligor settled loans to PT. Hasil Tambak Amboina and PT. Kinantan Sena Putra in
October 2006 amounting to USD1.7 million .
The Bank was succeeded in auctioning loan collateral of Nusa Prima Pratama Industry with
a value of Rp151 billion.
The loans have been fully provided.
16
H1 ‘08 operating profit up 9.4% from H1 ’07
excluding non-recurring interest income
H1 2007
H1 2008
Rp billion
Rp billion
1,989
1,522
4,384
7,004
3,527
6,692
4,687
4,609
Up
9.4%
Excluding Nonrecurring Q1
Interest Income
4,212
Net Interest
Income
Fee-Based Income
Overhead
Pre-provision
Expenses & Others Operating Profit
Notes :
1. Fee based income excluding gain on sale & increasing value GB & securities
2. Overhead expenses + others excluding provisions
Net Interest
Income
Fee-Based Income
Overhead
Pre-provision
Expenses & Others Operating Profit
17
H1 Core earnings up 9.5% to Rp4,424 billion
Core Earnings
Profit After Tax & ROE
IDR bn
Gain on Sale/Value of Securities
FX Gain
Non-Recurring Interest
Core Earnings
8,000
1,113
1,221
1,040
1,234
1,329
1,390
1,027
1,744
2001 2002 2003 2004 2005 2006 2007 H1 '08
610 372
97 305
519 510
(623)
0
0
2.5%
690
1,549
308
10.0%
602
1,168
1,300
1,000
967
1,017
4,424
4,040
5,589
4,335
5,492
3,514
2,000
4,787
3,000
799
1,166
185
1,408
819
74
17.9%
15.8%
775
645
4,145
Pre-Provision Operating Profit
380
402
1,528
260
4,000
247
2,913
114
23.6%22.8%
21.5%
166
2,072
5,000
2,021
6,000
RoE - After Tax
(Annualized)
26.2%
311
475
1,651
7,000
213
2001
2002
2003 2004
Q1 PAT
Q2 PAT
2005 2006
Q3 PAT
2007
Q4 PAT
2008
18
Operating
Performance
Highlights
19
Recap: Leveraging leadership in cash generating businesses
to build emerging and future growth engines
SBU H1 ‘08 Contribution Margin
Consumer
Finance & Micro
& Retail Banking
Rp2,294 bn
373
1,584
Corporate &
Treasury
Rp1,651 bn
Building
Future
Growth
Engine
11
1,921
33
1,333
3,694
363
Leveraging
Our Cash
Generator
Optimizing
Optimizing
Synergies
Synergies
Across
Across SBUs
SBUs
Strengthen
Emerging
Business
22
Commercial
Banking
Rp1,333 bn
1,288
Contribution Margin (Net Profit Before Tax)
Corporate
Treasury & Commercial
Int'l
Micro &
Retail
Consumer Others, Incl.
Profit
Finance
SAM
Before Tax
20
…supported by 4 pillars of subsidiaries with an additional
one soon to be developed
Syariah Banking
Investment
Bank
Insurance
Niche Banking
Bank Sinar
Harapan Bali
Total Assets
Rp16.3 tn
Bond Trading Volume
Rp15.9 tn
Total Assets
Rp4.4 tn
Total Loans
Rp236 bn
Total Financing
Rp12.7 tn
Bond Underwriting
Rp2.6 tn
Annual FYP
Rp365.7 bn
Net Interest Margin*
12.7%
Total Deposits
Rp14.3 tn
Equity Trading Volume
Rp26.9 tn
Fee Contribution
Rp55.6 bn
ROA
2.28%
ROE
22.8%
ROA
6.3%
ROE
44.2%
ROE
14.27%
• 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
* Excluding deposits made by
Bank Mandiri
21
The acquisition of Tunas Finance will boost consumer
segment growth
Although Bank Mandiri’s Consumer Segmen
volume is constantly grow, vehicle-ownership
loan portfolio is still relatively small
Through acquisition of Tunas Finance, Bank
Mandiri’s vehicle ownership is expected to
grow rapidly
Tunas Finance will be the main vehicle-ownership
loan generator
The portfolio of Bank Mandiri auto loan is lower
than multi-finance company (i.e. Tunas Finance),
the possibilities to growth is relatively high as
shown by the total portfolio of national
Consumer Financing.
Bank Mandiri and shareholders of Tunas
Finance have agreed the terms of acquisition
and signed the Perjanjian Pengikatan Jual Beli
(“PPJB”) Saham on 27 June 2008, in relation to
the acquisition of 51% share of Tunas Finance
with value of IDR 290 billion.
Tunas Finance is supported by its related captive
dealers located throughout major cities in Indonesia
Consumer Financing National Portfolio (Indonesia)
Tunas Finance Company Profile
(Pre Acquisition)
USED CARS
Rp Trillion
0.50
JARDINE CYCLE &
CARRIAGE
2.21
0.33
37 %
PUBLIC
49 %
14 %
72.21
2.11
0.25
2.04
TUNAS ANDALAN
PRATAMA
68.25
TUNAS
MOBILINDO
PARAMA
TUNAS
RIDEAN
25%
75%
TUNAS
FINANCE
MOTORCYCLE
Bank Mandiri will utilize Tunas Finance to develop its
business in consumer segment, especially in vehicleownership financing, by using Bank Mandiri’s
network infrastructure throughout Indonesia.
Bank Mandiri – Tunas Finance
Network synergy masterplan
65.27
TUNAS FINANCE
Growth
2006-2007:
as of 31 Dec 2007
0.14
1.71
55.45
4Q06
4Q07
1Q08
2Q08
Auto Bank Mandiri
Tunas Finance
Consumer Finance Nasional (up to May 08)
Total Financing
IDR 2.04 Trillion
Net Profit
IDR 84.7 Billion
ROE
25.23 %
NIM
5.75 %
978 employees
The synergy is expected to significantly increase Bank
Mandiri’s market share in consumer segment.
32 branches
22
Corporate Banking:
H1 Growth in Contribution Margin of 13.3%
Contribution Margin (after PPAP)
Performance to Date, H1 2008
Rp bn
Q1
229
Q2
Q3
Rp bn
Q4
2,906
91
1,345
57
1,288
692
785
2,079
488
1,077
1,288
13%
983
547
592
421
614
545
741
(6)
Asset
Spread
Liabilities
Spread
Fees
Overhead Operating Provisions
Profit
Profit
After
PPAP
2006
2007
2008
23
Corporate Banking:
Strengthening Growth in Key Areas
Breakdown of Net Expansion by Sector, H1 ’07 – H1 ‘08
(Total Rp14.69 tn)
U%
Rp Billion
4,163
Comm
34.01%
1,297
851
Mfg-Chem
816
TradingDistr
728
486
319
532
391
67.09%
262.73%
19.68%
110.40%
560
Mass Trans
TradingRet
693
611
63.67%
1,496
Mfg-Oth
TradingExp
1,128
51.01%
2,032
Plantations
Rp Billion
195.62%
3,277
Mfg-F&B
Mining-Oil
& Gas
Consumer Loans from Alliance Program
(10 top corporate clients)
Q4 '06
Q1 '07
Q2 '07
Q3 '07
Q4'07
Q1 '08
Plantation Small & Micro Lending from Alliance Program
291.25%
320
Rp Billion
453
357.86%
279
Utilities
Simple
Housing
ConstrElect
TradingDom
(222)
86.98%
Mfg-Wood
(224)
(88.52%)
246
23.66%
110
331.18%
Mfg-Metal
(470)
(50.45%)
Other
(565)
(44.50%)
Q2 '08
234
4,250
3,750
3,250
2,750
2,250
1,750
1,250
750
250
(250)
(750)
259
268
Q2 '07
Q3 '07
350
347
Q4'07
Q1 '08
149
Q4 '06
Q1 '07
Q2 '08
24
Mandiri Sekuritas continued to improve
H1 ’07
H1 ’08
Growth Y-o-Y
(%)
204
245
20%
• Investment Banking
72
92
28%
• Capital Market
111
115
4%
6
5
(16%)
• Investment Mgt
14
32
128%
Operating Expenses
95
134
42%
Earnings After Tax
56
65
15%
Equity Transactions
18,260
26,940
48%
SUN Transactions
37,711
15,901
(58%)
Bonds Underwritten
1,583
2,633
66%
ROA
6.2%
6.3%
2%
ROE
14.7%
15.8%
7%
(Rp Bn)
Revenues
• Treasury
25
Treasury & International Banking
Net Interest Income
Performance to Date, H1 2008
Rp bn
Rp bn
75
110
120
H1 '06
53
H1 '07
H1 '08
Business Volume (Rp bn)
363
359
Rp bn
Loans
4,956
2007
4,061
2006
4,231
2005
2,823
Profit
After
PPAP
3,007
Revenue Losses on Overhead Provisions
GB &
Securities
Deposits
913
Fees
2,512
1,011
Interest
Income
359
611
296
252
H1'2008
26
Commercial Banking:
Strong revenues from both Liabilities & Assets
Contribution Margin (after PPAP)
Performance to Date, H1 2008
Rp bn
Q1
102
203
1,353
Q2
Q3
Q4
Rp bn
2,114
20
1,333
584
1,957
578
863
1,333
564
37%
630
668
445
485
946
Asset
Spread
Liabilities
Spread
Fees
Overhead Operating Provisions
Profit
Profit
After
PPAP
487
703
(297)
2006
2007
2008
27
Commercial Banking:
Strong growth in both Liabilities & Assets
Breakdown of Net Expansion by Sector, H1 ’07 – H1 ‘08
(Total Rp10.67 tn)
Loan & Deposit Geographic Distribution, H1 2008
U%
1,668
Other
25.18%
1,282
Plantations
75.76%
Mfg-Chem
1,099
47.91%
Constr
1,092
27.38%
Mfg-Oth
1,045
23.64%
1320.43%
821
Utilities-Gas
52.71%
760
Trading-Distr
Mfg-Text
500
46.76%
Mfg-P&P
471
60.21%
Leasing
447
113.20%
426
34.72%
Mass Trans
Trading-Dom
296
50.59%
Mfg-F&B
278
19.98%
Mfg-Metal
246
44.04%
198
23.92%
Trading-Ret
Jakarta
Rp3,485;
45.5%
Java (ex-Jkt),
Bali & Nusa
Tenggara
North
Sumatera
Loans:
Volume (Rp bn);
Y-o-Y U%
Rp17,461;
44.3%
Rp10,005;
37.4%
139.54%
561
Trading-H&R
Rp2,395;
31.2%
Rp895;
Rp2,243;
47.6%
39.6%
South
Sumatera
Kalimantan
Rp2,419;
14.8%
Rp1,549;
(4.9%)
Rp1,545;
(6.0%)
Sulawesi &
Eastern
Indonesia
Rp3,300;
(11.2%)
Deposits:
Volume (Rp bn);
Y-o-Y U%
Rp15,336;
21.0%
Rp5,140;
21.4%
1,750
1,500
1,250
1,000
750
500
250
0
28
Strong growth from our Syariah Banking
subsidiary
Financial Performance (Rp bn)
Net Interest Margin & Cost of Funds
Q4 ‘06
Q2 ‘07
Q4 ‘07
Q1 ‘08
Q2 ‘08
Financing
7,415
8,465
10,305
11,150
12,730
Deposits
8,219
8,851
11,106
12,246
14,270
Assets
9,555
10,438
12,888
14,031
16,285
EAT
65.48
61.80
114.64
46.24
96.28
YoA
Net NPF
4.64%
4.56%
3.43%
2.63%
2.15%
5.7%
5.4%
FDR
94.2%
92.8%
90.2%
5.4%
5.4%
5.3%
4.9%
5.2%
CoF
Syariah Financing (Rp tn)
95.6%
5.3%
6.3%
22.78%
7.7%
22.64%
6.7%
15.94%
8.1%
17.49%
6.3%
10.23%
7.0%
ROE
6.1%
1.94%
13.5% 13.0%
6.9%
2.05%
6.0%
1.54%
6.8%
1.75%
7.2%
1.10%
12.3% 12.1% 12.0% 12.2% 12.4%
6.9%
ROA
7.9%
Spread
Ratios:
13.6%
91.1%
89.2%
87.3%
Q1 '07
Q2 '07
9.30
Q3 '07
Q4 '07
Q1 '08
Q2 '08
2005
6.4%
Q4 '06
8.47
NIM
5.6%
7.41
7.64
10.31
6.8%
12.73
11.15
Q4 '06 Q1 '07
Q2 '07 Q3 '07
Q4 '07 Q1 '08 Q2 '08
29
Micro & Retail Banking:
Rapidly growing our high margin business
Contribution Margin (after PPAP)
Performance to Date, H1 2008
Rp bn
Q1
947
Q2
Q3
Rp bn
Q4
2,203
399
1,921
1,772
2,343
1,509
491
46%
1,045
1,960
39
471
1,921
305
740
293
876
440
442
Asset
Spread
Liabilities
Spread
Fees
Overhead Operating Provisions
Profit
Profit
After
PPAP
2006
573
2007
2008
30
Building a strong savings deposit franchise
Transaction channel growth
Savings Deposit Growth
Savings Deposits (Rp tn)
As % of Total Deposits
National Share of Savings Deposits (%)
Avg ATM Daily Vol (000)
Transfer
Other
Withdrawal/Inquiry
Payment
40.0%
34.6%
2,093
2,057
15.3%
976.7
Quarterly Call Center Trans. (000)
Quarterly SMS Trans. (000)
899.7
853.4
816.2
759.6
17.2%
706.3
19.1%
18.5%
17.6%
677.0
11.0%
17.5%
29.2%
607.5
16.2%
31.7%
492.1
30.6%
2,116
1,984
1,722 1,485 1,833
11.6%
11,813
14,487
15,864
16,857
19,116
Q1 '07
Q2 '07
Q3 '07
Q4 '07
Q1 '08
Q2 '08
Q4 '06
Q4 '05
Q4 '03
Q4 '02
Q4 '01
12,140
11,435
679
106 1,069
6,988
1,016
3,072 Q4 '04
27
Q4 '00
88.522 Q2 '08
81.650 Q1 '08
81.535 Q4 '07
62.53 Q2 '07
57.2 Q1 '07
57.6 Q4 '06
45.2 Q4 '05
52.0 Q4 '04
40.5 Q4 '03
29.6 Q4 '02
22.1 Q4 '01
18.0 Q4 '00
65.734 Q3 '07
1,086
31
Micro & Retail Banking:
Focus on growing our high yield businesses
Loan
Yields
KUR
(Rp Bn)
Micro Credits
(Rp Bn)
Small Credits
(Rp Bn)
12.4%
19.2%
1179%
1,335
4,932
62.9%
790
857
3,457
2,122
12,902
7,970
61.9%
Growth
Q1 2008
67
H1 2007
Growth
H1 2007
H1 2008
Growth
H1 2008
Q4 2007
Disbursement Breakdown (Q2 ‘08)
Disbursement Breakdown (Q2 ‘08)
Kredit Usaha Rakyat (KUR):
1 111
444
37
593
1. Loan aiming for productivity
with limit up to Rp500 million.
0
96
1,634
1,351
3,752
2,470
283
TOTAL
Cash Coll
Food Suff.
Channeling
Alliances
Coops
Program
Non-Prog
Rural
B anks
M icro
Unsecured TOTA L
M icro
2. Maximum interest rate 16%
effective p.a.
3. 70% is guaranteed by PT
Askrindo or Perum Jaminan
Kredit Indonesia
* up to H1 2008, total loans
guaranteed by loan insurance
institution is Rp433.21 billion
32
Consumer Finance:
Significant growth in spread and fee income
Contribution Margin (after PPAP)
Performance to Date, H1 2008
Rp bn
Rp bn
Q1
125
Q2
Q3
Q4
639
269
158
580
412
61
79
17%
100
373
Fees
Overhead
Operating
Profit
200
170
434
NII
374
161
Provisions Profit After
PPAP
90
143
150
174
2006
2007
2008
33
Consumer lending rose 11.3% Q-o-Q and 37.9%
Y-o-Y
Quarterly Consumer Loan Balances by Type
Consumer Loan Growth by Type
Rp17.52 tn
18,000
Other
Loan Type
Credit Cards
Payroll Loans
14,000
Mortgages
3,658
3,390
3,404
3,522
3,666
3,979
3,867
3,437
3,612
3,702
3,010
3,192
1,908
1,426 2,644
1,358 2,427
1,293 2,285
1,231 2,165
1,241 1,996
7,199
6,393
5,382
4,501
3,865
3,663
3,610
3,574
3,452
3,250
328
0 283
3,050
1,802
2,000
4,033
815
Q2 '08
Q1 '08
Q4 '07
Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q3 '06
Q2 '06
Q1 '06
Q4 '05
Q4 '03
2,852 1,522 Q4 '04
4,000
1,2791,906
6,000
4,131
1,2701,921
8,000
1,367 1,930
10,000
1,678 2,789
12,000
1,926
Home Equity Loans
2,008
16,000
Growth (%)
Y-o-Y
Q-o-Q
Other
173.07%
54.31%
Credit Cards
40.77%
4.25%
Payroll Loans
38.37%
14.61%
Home Equity Loans
8.77%
2.48%
Mortgages
86.28%
12.61%
Total Consumer
37.92%
11.31%
*Auto & Motorcycle Loans channe le d or e xe cute d throug h
finance comp anie s = Rp 4.58 tn in our Comme rcial Loan
Portfolio
34
35
32
57
42
18 8
68
81
23
56 59
24 16 10
62
57
61
11
68
3
72
17
67
19
62
17
58
9
61
10
62
Cash Advance
Retail
1,225.9
Transfer Balance
Total Card Quarterly Sales by Type of Transaction (Rp Bn)
Q2 '08
Q1 '08
Q4 '07
Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q3 '06
Q2 '06
Q1 '06
Q4 '05
Q3 '05
Q2 '05
Q1 '05
Q4 '04
1,925.9 Q1 '08
1,907.5 Q4 '07
1,033.4
1,677.6 Q3 '07
1,426.2 Q2 '07
918.8
1,089.4
2,007.7 Q2 '08
1,357.5 Q1 '07
1,230.7 Q3 '06
1,240.8 Q2 '06
764.9
1,279.4 Q1 '06
1,367.4 Q4 '05
650.7
1,270.2 Q4 '04
814.9 Q4 '03
225.7
Cards (000s)
817.1
1,292.8 Q4 '06
Receivables (Rp Bn)
Mandiri Visa & Mastercards and EOQ Receivables
1,226k Visa & Mastercards transacted Rp1.76
tn in Q2
1,668
1,443
1,514
1,225
1,067
936
836
755
621
553
600
606
532
521
535
567.5 Q4 '02
Financial targets for 2008
Metric
Gross NPLs
Normalizing ROE
Gross loan growth*
Corporate#
Commercial
Consumer
Micro & Retail
Growth in savings deposits
Margin improvement
Retain efficiency ratio
NPL Provision Coverage
* Prior to the write-off & repayment of NPLs
# Includes Treasury & International
Target
18%
>20%
>20%
>30%
>20%
>Rp90 tn
~5.2%
120%
36
Supporting Materials
37
Key Quarterly Balance Sheet Items & Financial
Ratios
IDR billion / %
H1 ‘07
FY 2007
H1 ‘08
YoY Change (%)
Gross Loans
116,306
138,530
149,612
28.6%
Government Bonds
91,164
89,465
88,386
(3.0%)
Total Assets
265,022
319,086
304,680
15.0%
Customer Deposits
206,241
247,355
236,213
14.5%
Total Equity
26,949
29,244
27,711
2.8%
RoA - before tax (p.a.)
2.33%
2.28%
2.44%
RoE – after tax (p.a.)
15.92%
15.75%
17.89%
Cost to Income(1)
38.74%
46.98%
44.40%
NIM (p.a.)
5.64%
5.23%
5.25%
LDR
56.39%
54.29%
62.16%
Gross NPL / Total Loans
15.47%
7.17%
4.74%
Provisions / NPLs
86.68%
108.97%
122.55%
Tier 1 CAR(2)
19.66%
16.56%
14.48%
Total CAR(2)
25.13%
21.11%
17.72%
Total CAR incl. Market Risk
24.40%
20.75%
17.58%
EPS (Rp)
103.5
209.8
124.1
19.9%
Book Value/Share (Rp)
1,304
1,412
1,318
1.1%
(1) (G&A and employee expenses) / (Net Interest Income + Other Operating Income), excluding bond gains
(2) Bank only – Not including Market Risk
38
Summary P&L Information – H1 ‘07 vs. H1 ‘08
Q1’07
Q1 ‘08
YoY Change
Rp (Billions)
% of
Av.Assets*
Rp (Billions)
% of
Av.Assets
(%)
Interest Income
12,335
9.3%
12,175
8.1%
(1.3%)
Interest Expense
(5,643)
(4.2%)
(5,171)
(3.4%)
(8.4%)
Net Interest Income
6,692
5.0%
7,004
4.6%
4.7%
Other Operating Income
1,522
1.1%
1,989
1.3%
30.7%
235
0.2%
10
0.0%
(95.7%)
Provisions, Net
(1,856)
(1.4%)
(855)
(0.6%)
(53.9%)
Personnel Expenses
(1,724)
(1.3%)
(2,195)
(1.5%)
27.3%
G & A Expenses
(1,458)
(1.1%)
(1,798)
(1.2%)
23.3%
Other Operating Expenses**
(345)
(0.3%)
(391)
(0.3%)
13.3%
Profit from Operations
3,066
2.3%
3,689
2.4%
20.3%
Non Operating Income
15
0.0%
72
0.0%
380.0%
Net Income Before Tax
3,081
2.3%
3,761
2.5%
22.1%
Net Income After Tax
2,140
1.6%
2,610
1.7%
22.0%
Gain from Increase in Value & Sale of Bonds
* % of Average Assets on an annualized basis
** primarily premiums paid under the blanket guarantee scheme
39
40
90.8
Q3 '07
89.5
Q2 '07
90.6
Q1 '07
54.0
108.8
55.1
107.8
57.6
105.1
90.6
Q4 '06
91.0
Q3 '06
92.3
Q2 '06
92.2
Q1 '06
92.1
Q4 '05
93.1
Q4 '04
122.9
Q4 '03
148.8
Q4 '02
153.5
Q4 '01
176.9
Q4 '00
177.4
Q4 '99
34.8%
41.0%
106.9
60.7
65.4
33.4
19.0%
48.3
43.0
19.0%
75.4%
60.5
75.9
34.1%
36.1
74.1%
50.6
60.6%
94.4
50
75
100
125
150
175
200
225
250
275
27.044.0
0
64.5
40.9%
50.0%
Int. from Bonds
117.7
40.6%
114.3
50.1%
56.1
46.9%
116.3
47.1%
Int. from Loans
59.2
Consolidated
Q4 '07
Other Assets
89.5
Loans
Q1 '08
Government Bonds
88.6
121.7
59.2
300
Q2 '08
138.5
61.2
325
88.4
25
135.5
91.1
31.0% 32.3%
75.5
52.2%
56.8%
149.6
Total Assets (Rp tn)
Total Assets rose 1.7% to Rp304.7 tn in Q2 ‘08
66.7
136.8 30.7
Q1 '08
134.0 28.3
Q4 '07
121.8 27.9
Q3 '07
113.1
28.4
Q2 '07
107.9
29.3
Q1 '07
112.2
28.4
Q4 '06
110.4
28.1
Q3 '06
110.7
27.8
Q2 '06
110.7
27.9
Q1 '06
115.9
27.4
Q4 '05
117.5
27.8
Q3 '05
115.9 27.5
Q2 '05
114.1 30.4
Q1 '05
108.9 27.5
Q4 '04
25.5
31.3%
23.4%
91.9
72.5
Q4 '03
17.0
Q4 '02
58.1 15.4
Q4 '01
42.6 13.3
Q4 '00
RWA (Rp tn)
Q2 '08
Total Capital (Rp tn)
41
25.3%
17.7%
22.9%
22.4%
21.1%
25.2%
27.1%
25.1%
26.6%
CAR
BI Min Req
CAR drops to 17.7% on Rp27.1tn capital
152.8 27.1
Additional Factors
Written-off
Written-off
Loans
Loans
Loan
Loan
Collateral
Collateral
Undervalued
Undervalued
Aggregate of Rp33.758 tn (US$ 3.661 bn) in written-off loans as of endJune 2008, with significant recoveries on-going:
¾ 2001: Rp2.0 tn
¾ 2002: Rp1.1 tn
¾ 2003: Rp1.2 tn
¾ 2004: Rp1.08 tn
¾ 2005: Rp0.818 tn (US$ 83.2 mn)
¾ 2006: Rp3.408 tn (US$ 378.5 mn)*
¾ 2007: Rp1.531 tn (US$ 249.3 mn)
¾ Q1 ’08: Rp0.325 tn (US$ 35.3 mn)
¾ Q2 ’08: Rp0.572 tn (US$ 62.0 mn)
* including the write-back of RGM loans totaling Rp2.336 tn
Collateral values included for provisioning purposes on only 28 accounts,
carried at approximately 30.0% of appraised value.
42
Summary Quarterly Balance Sheet: Q2 ‘07 –‘08
Total Assets
Cash
Current Accounts w/BI
Certificates of BI
Other Placements w/BI
Current Accounts &
Placements w/Other Banks
Securities - Net
Government Bonds
Trading
AFS
HTM
Loans
Performing Loans
Non-Performing Loans
Allowances
Loans – Net
Total Deposits – Non-Bank
Demand Deposits
Savings Deposits
Certificate & Time Deposits
Shareholders’ Equity
Q2 ‘07
Q3 ‘07
Q4 ‘07
Q1 ‘08
Y-o-Y
Rp (tn)
Rp (tn)
Rp (tn)
Rp (tn)
Rp (tn)
US$ (bn)#
% Change
265.02
4.10
20.58
3.77
0.50
273.79
4.32
20.55
7.68
0.00
319.09
5.91
28.16
23.52
11.20
299.59
4.87
23.07
14.24
2.04
304.68
5.20
22.84
1.92
4.55
33.05
0.56
2.48
0.21
0.49
15.0%
26.8%
11.0%
(49.1%)
810.0%
18.88
14.89
7.02
12.45
12.80
1.39
(32.2%)
5.45
89.49
0.83
27.56
61.09
116.31
98.31
17.99
(15.60)
100.71
206.24
54.68
65.58
85.98
26.95
3.70
90.79
1.59
28.00
61.20
121.74
108.92
12.82
(13.39)
108.34
210.10
53.25
69.06
87.79
28.06
3.79
89.47
0.97
27.29
61.20
138.53
126.56
11.97
(13.04)
125.27
247.36
67.01
85.36
94.99
29.24
4.10
88.59
0.62
26.77
61.20
135.51
127.60
7.92
(9.18)
126.33
223.92
50.34
85.85
87.73
30.57
4.05
88.39
0.51
26.68
61.20
149.61
141.80
7.81
(9.57)
140.04
236.21
57.93
93.32
84.97
27.71
0.44
9.59
0.05
2.89
6.64
16.23
15.38
0.85
(1.04)
15.19
25.62
6.28
10.12
9.22
3.01
(25.7%)
(3.0%)
(72.3%)
(5.2%)
0.0%
28.6%
44.2%
(56.6%)
(38.6%)
39.1%
14.5%
5.9%
42.3%
(1.2%)
2.8%
Q2 ‘08
# USD1 = Rp9,220
43
Summary P&L Information – Q2 2008
Q2 2007
Q1 2008
Q2 2008
Y-o-Y Change
Rp (Billions)
% of
Av.Assets*
Rp (Billions)
% of
Av.Assets*
Rp (Billions)
% of
Av.Assets
(%)
Interest Income
5,574
8.5%
6,142
7.9%
6,033
8.0%
(1.8%)
Interest Expense
(2,681)
(4.1%)
(2,757)
(3.6%)
(2,414)
(3.2%)
(12.4%)
Net Interest Income
2,893
4.4%
3,385
4.4%
3,619
4.8%
6.9%
Other Operating Income
808
1.2%
927
1.2%
1,062
1.4%
14.6%
Gain from Increase in Value & Sale
of Bonds
211
0.3%
-
0.0%
10
0.0%
N/A
Provisions, Net
(458)
(0.7%)
(308)
(0.4%)
(547)
(0.7%)
77.6%
Personnel Expenses
(929)
(1.4%)
(1,020)
(1.3%)
(1,175)
(1.6%)
15.2%
G & A Expenses
(748)
(1.1%)
(764)
(1.0%)
(1,034)
(1.4%)
35.3%
Other Operating Expenses**
(181)
(0.3%)
(241)
(0.3%)
(150)
(0.2%)
(37.8%)
Profit from Operations
1,596
2.4%
1,979
2.6%
1,710
2.3%
(13.6%)
Non Operating Income
6
0.0%
27
0.0%
45
0.1%
66.7%
Net Income Before Tax
1,602
2.4%
2,006
2.6%
1,755
2.3%
(12.5%)
Net Income After Tax
1,114
1.7%
1,390
1.8%
1,220
1.6%
(12.2%)
* % of Average Assets on an annualized basis
** primarily premiums paid under the blanket guarantee scheme
44
Reconciliation to IFRS
FY ’03
FY ’04
FY ’05
FY ’06
FY ’07
Rp (Billions)
Rp (Billions)
Rp (Billions)
Rp (Billions)
Rp (Billions)
4,586
5,256
603
2,421
4,346
(662)
(309)
(2,681)
1,598
1,934
104
70
(223)
44
(2)
52
-
-
-
-
(21)
25
-
-
-
55
10
9
4
(17)
199
75
25
30
26
Rights of Lands amortization
-
-
-
(137)
(7)
De-recognition of allowances
-
-
-
-
-
82
38
861
(503)
(583)
Net Adjustment
(191)
(90)
(2,008)
1,037
1,351
Net profit in accordance with IFRS
4,395
5,166
(1,405)
3,458
5,697
Net profit under Indonesian GAAP
IFRS Adjustments
Allow. for possible losses on earning assets
Allow. for possible losses on commitments & contingencies
Change in fair value of derivatives
Employee benefits
Accretion on deferred inc. arising from loan purchase from
IBRA
De-recognition of revaluation of premises & equipment
Deferred income taxes
IFRS = International Financial Reporting Standards
45
Ex-Recap Bond Portfolio, 30 Jun ‘08 – Bank Only
Series
Fixed Rate
FR0002
FR0010
FR0014
FR0019
FR0020
Maturity
Date
15-Jun-09
15-Mar-10
15-Nov-10
15-Jun-13
15-Dec-13
Sub Total
Variable Rate
VR0017
25-Jun-11
VR0019
25-Dec-14
VR0020
25-Apr-15
VR0021
25-Nov-15
VR0022
25-Mar-16
VR0023
25-Oct-16
VR0024
25-Feb-17
VR0025
25-Sep-17
VR0026
25-Jan-18
VR0027
25-Jul-18
VR0028
25-Aug-18
VR0029
25-Aug-19
VR0030
25-Dec-19
VR0031
25-Jul-20
Sub Total
Grand Total
Interest
Rate (%)
14.00%
13.15%
15.58%
14.25%
14.28%
7.83%
7.83%
8.10%
7.83%
7.83%
8.10%
7.83%
7.83%
8.10%
8.10%
7.83%
7.83%
7.83%
8.10%
(Stated in Rp Millions)
Trading
Nominal
AFS
HTM
Mark To
Market
103.201
100.000
106.656
104.002
104.318
68
-
2,947
231,028
291
1,350,000
-
68
234,266
1,350,000
298,270
5,050,000
4,100,000
2,400,000
692,844
659,738
1,696,428
5,344,421
5,597,343
25,839,044
68
26,073,310
0.00%
29.91%
Total Nominal Value
1,114,300
391,029
690
6,796,813
4,086,068
8,210,550
5,210,550
3,475,267
3,475,267
3,475,267
3,475,267
8,016,765
12,016,765
59,744,598
61,094,598
70.09%
87,167,976
100.113
99.947
99.864
99.768
99.897
99.764
100.000
100.000
100.000
100.000
99.718
99.668
100.000
99.664
Trading
Fair Value
AFS
HTM
70
-
3,143
240,273
304
1,350,000
70
243,720
1,350,000
298,607
5,047,324
4,094,424
2,394,432
692,130
658,181
1,691,644
5,326,678
5,578,536
25,781,955
70
26,025,675
0.00%
29.87%
Total Fair Value
1,114,300
391,029
690
6,796,813
4,086,068
8,210,550
5,210,550
3,475,267
3,475,267
3,475,267
3,475,267
8,016,765
12,016,765
59,744,598
61,094,598
70.13%
87,120,343
-
46
Bank Mandiri Credit Ratings
S&P
Moody’s
Fitch
Stable
Positive
B2
Stable
Long Term Foreign Currency Debt
Short Term Outlook
Short Term Foreign Currency Debt
Subordinated Debt
Individual Rating
Support Rating
Bank Financial Strength
BB-
WR
Stable
NP
Ba3
BB
Long Term Local Currency Outlook
Long Term Local Currency Debt
Stable
BB-
BB
B
B
idnAA+
Pefindo
Bank Mandiri Ratings
Long Term Foreign Currency Outlook
Long Term Bank Deposits
Short Term Local Currency Debt
National Rating
B
B
BBC/D
3
D-
idAA
47
Corporate Actions
Net Profit for the financial year of 2007 of Rp4,346,223,721,208.00
was distributed as follows:
50%, or Rp2,173,111,860,604.00, for the annual dividend
40%, or Rp1,738,489,488,483.20, for a one-time “special dividend“
Total Dividend Payment of Rp186.00 per share
Schedule :
Dividend
Dividend
Payment
Payment
a. Cum Date
: June 19, 2008
b. Ex Date
: June 20, 2008
c. Payment Date
: July 3, 2008
Net Profit for the financial year of 2006 of Rp2,421,405,120,753.71
was distributed as follows:
50%, or Rp1,210,702,560,376.86, for the annual dividend
10%, or Rp242,140,512,075.37, for a one-time “special dividend“
Total Dividend Payment of Rp70.28 per share
48
Q2 2008 Movement in Category 1 and 2 Loans
Category 1 Loan Movements (Rp bn) – Bank Only
Category 2 Loan Movements (Rp bn) – Bank Only
113,940
41
12,893
101,320
1,732 1,399
3
22
14,058 1,732 1,399
Beg.
Bal.
D/G to 2
U/G
from 2
D/G to
NPL
U/G
from
NPL
Net
Disburs.
FX
Impact
End Bal.
Beg.
Bal.
Cat. 1
D/G
706
U/G to D/G to
1
NPL
337
13,452
94
10
NPL
U/G
Net
FX End Bal.
Collect. Impact
49
Q2 2008 Loan Detail: Collectibility by Segment
Loan Profile: Q2 Collectibility (Rp bn) by Segment
Bank Only
Loan Profile: Q2 Collectibility (%) by Segment
Bank Only
5.9%
1.5%
2.3%
0.6%
6.5%
2.0%
0.3%
7.2%
2.3%
0.7%
12.8%
65,000
1.8%
0.4%
8.9%
60,000
13.1%
55,000
50,000
45,000
5
4
40,000
5
35,000
4
3
90.0%
90.1%
79.2%
83.4%
88.5%
2
1
3
30,000
2
25,000
1
20,000
15,000
10,000
5,000
0
Corp
Comm
Small
Micro
Cons
Corp
Comm
Small
Micro
Cons
50
NPL Loan Detail*: Quarterly by Days Past Due
Quarterly D/G to NPL & Interest DPD - Bank Only
Quarterly NPL Stock & Interest DPD - Bank Only
Rp tn
70%
Current (%)
70%
Current (%)
60%
nd
2 Quarter 2008
Results Presentation
Bank Mandiri Presentation Contents
Results Overview
Q2 2008 Financial Highlights
Q2 2008 Growth Momentum and Balance Sheet
Loan Growth & LDR
Quarterly Funding Mix & Deposit Costs
Quarterly Net Interest Margins
Quarterly Fees & Commissions
Recap Bond Portfolio Analysis
Quarterly Overhead Expenses & Detail
Quarterly NPL Movement, Asset Quality & Provisioning
New NPL Formation
Top NPL Debtor Developments
Operating Profit, Core Earnings, PAT
Page #
2
3-4
5-6
7
8
9
10
11
12-14
15
16
17-18
Operating Performance Highlights
SBU & Subsidiary Overview
Corporate Banking
Treasury & International Banking
Commercial Banking
Micro & Retail Banking
Consumer Finance
2008 Goals
Supporting Materials
20-22
23-25
26
27-29
30-32
33-35
36
37-78
1
Key Financial Highlights
Bank Mandiri’s First Half 2008 Performance continued to demonstrate
marked improvements in a number of key indicators:
H1 2007
H1 2008
U%
Rp116.3 tn
Rp149.6 tn
28.6%
Net NPL Ratio
3.92%
0.97%
(75.3%)
Gross NPL Ratio
15.47%
4.74%
(69.4%)
Low Cost Funds Ratio
58.3%
64.0%
9.8%
Rp120.3 tn
Rp151.3 tn
25.8%
5.25%
0.2%
44.4%
8.0%
2,610 bn
22.0%
Loans
[Low Cost Funds (Rp)]
NIM
5.24%
Efficiency Ratio
41.1%
Earnings After Tax
(1)
(2)
Rp2,140 bn
Including non-recurring interest income: (1) 5.64%; (2) 38.74%
2
Building momentum for growth
Loans by SBU*
(Rp Bn)
125
Corp
Cons
Int'l
Small
75
3.46 62.9%
12.90 61.9%
2.68 2.90
13.08 12.49 17.52
37.9%
1.94
8.86
2.12
7.97
25.85
24.36 25.82
0.91
0.95
250
Rp Demand Deposits
FX Demand Deposits
Rp Time Deposits
FX Time Deposits
200
15.7
12.6
12.1
2.82
3.39
4.06 170.9%
93.2
70.0
14.5
11.9
100
13.2
14.9
44.84 42.27 47.77 44.4%
73.4
66.7
80.5
50
33.6
Y-o-Y
U
15.9
14.7
150
1.5
36.12 33.08
29.94
Rp Savings Deposits
14.23 15.74
1.73
7.56
36.48 41.3%
11.08 12.71
31.46 32.75
10.66
50
25
Y-o-Y
U
Comm
Micro
100
Deposits by Product – Bank Only
(Rp Bn)
19.5
50.4
36.4
14.7
21.5%
63.3 (9.5%)
13.5 (30.7%)
41.3
24.9%
88.5
41.6%
33.1
30.1
45.2
57.6
62.5
81.5
81.7
0
0
Q4 '05
Q4 '06
Q2 '07
Q4 '07
Q1 '08
Q2 '08
Q4 '05 Q4 '06 Q2 '07 Q4 '07 Q1 '08 Q2 '08
*Cash Collateral Loans have been reallocated to Small Business
3
Solid balance sheet insulates against rate
increases
(Bank Only)
Amount
% of
Assets
Cash
4,969
1.74%
SBI & BI Placement (net)
27,165
Placements w/other banks
(net)
Amount
% of
Liab.
Current Account
54,830
19.19%
9.51%
Savings
88,522
30.98%
12,023
4.21%
Time Deposits (Rp)
63,341
22.17%
Marketable Securities (net)
3,224
1.13%
Time Deposits (Fx)
14,685
5.14%
Government Bonds
88,189
30.86%
Total Deposits
221,378
77.47%
Loans (Gross)
134,501
47.07%
Securities Issued
833
0.29%
Provisions
(9,054)
(3.17%)
Deposits from other banks
3,327
1.16%
Other Advances (net)
8,980
3.14%
Borrowings
9,488
3.32%
Investments
2,869
1.00%
Other Interest bearing liabilities
2,863
1.00%
Other Assets
12,905
4.52%
Non Interest bearing liabilities
20,169
7.06%
Equity
27,711
9.70%
Total
285,770
100.00%
Assets
Total
285,770
100.00%
Liabilities
4
LDR rises to 62.2% with 28.6% Y-o-Y
consolidated growth
Quarterly Loan Data – Consolidated
Loans (Rp tn)
LDR (%)
Quarterly Loan Segment Details – Bank Only
62.2%
53.7%
57.2%
56.4%
59.7 55.4 61.1
53.6
50.5
Corporate 44.7
42.3
40.2 38.2
35.7 Commercial 32.5
32.6
31.4
54.3%
42.5%
35.4%
36.4 35.5
39.1
22.2
26.3%
Q2 '08
Q1 '08
Q4 '07
Q3 '07
QoQ Growth (%)
YoY Growth (%)
Q2 '07
10.4%
13.7 13.1 13.3
10.0 Small
2.7 2.9 3.5
2.1
Q1 '07
28.6%
17.5
10.2
7.6 Micro
1.9
1.7
Q4 '06
By Segment
(Bank only)
14.3 15.8
Q4 '05
8.5
Q4 '04
Q4 '03
Q4 '02
149.6 Q2 '08
135.5 Q1 '08
138.5 Q4 '07
121.7 Q3 '07
116.3 Q2 '07
114.3 Q1 '07
117.7 Q4 '06
106.9 Q4 '05
94.4 Q4 '04
75.9 Q4 '03
65.4 Q4 '02
48.3 Q4 '01
43.0 Q4 '00
1.5
3.7
Consumer
11.7
10.7 11.1
Loans
(Rp tn)
Y-O-Y Growth
(%)
% of
Portfolio
Corporate
61.07
20.89%
45.40%
Commercial
39.11
20.20%
29.08%
Small
13.34
33.09%
9.92%
Micro
3.46
62.68%
2.57%
Consumer
17.52
49.91%
13.03%
Total
134.50
20.89%
100.00%
As of June 2008; Non-consolidated numbers
5
Rp24.1 tn in loans disbursed in Q2 ‘08
Loan Disbursement by Segment (Rp tn) – Bank Only
Loan Movement (Rp tn) – Bank Only
3.46
24.12
8.38
0.62
2.86
134.50
0.22
122.63
1.00
1.95
5.68
24.11
12.63
Q1 '08
Disbursment Installment
Payment
FX Impact
Write-Offs
Q2 '08
Corporate
Commercial
Small
Micro
Consumer
Finance
Total
Disbursements
6
Q2 Deposits rise by 12.3% Y-o-Y and 4.7% Q-o-Q
63.3 13.5
66.7 11.9
41.3
36.4
35.4
50.4
69.1 15.9
33.1
33.6
Q2 '08
Q1 '08
Q4 '07
Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
40.6 Q4 '03
52.0 Q4 '04
45.2 Q4 '05
57.6 Q4 '06
57.2 Q1 '07
62.5 Q2 '07
65.7 Q3 '07
81.5 Q4 '07
81.7 Q1 '08
88.5 Q2 '08
0.0%
32.9%
14.114.3 Q4 '99
97.1 5.8
87.84.6 31.118.0 Q4 '00
33.8% 100.7 7.6 24.8 29.6 Q4 '02
31.4% 106.9 6.2 31.2 22.1 Q4 '01
80.5 9.1 28.8
66.5 11.9 28.0
93.2 14.9 30.1
80.5 13.2
72.9 14.4 31.0
70.0 19.5
62.1% 73.4 14.5
14.7
14.764.8%
15.9
13.7
12.1
58.4%
13.9
12.6 52.9%
15.7
11.6
17.3
1.5%
0.8% 0.5%
0
23.1%
40
20.6
23.4
16.5
120
21.5
0%
2.2%
2.5% 2.5%
2.6%
2.4%
2.0%
1.7%
2.1% 2.2%
1.5% 2.4%
1.1%
1.7%
2.6%2.9%
2.6%
3.0%
3.9%
3.7%
4.0% 4.2%
4.5%
FX TD
FX DD
80
3.5%
5% 6.1%
3.0%
3.7%
6.9% 6.8%
6.3%
3.6%
3.2%3.0%
4.7%
7.4%
5.3%
8.2%8.0% 8.4%
8.8%
11.9%
10.4%
11.4%
240
7.4%
160
FX Time Deposits
Low-Cost Deposits (%)
Rp Time Deposits
9.9%
Rp Savings
1 Mo. SBIs
Rp DD
Rp TD
15% 13.9%
13.1%
Rp Demand Deposits
FX Demand Deposits
Rp Savings Deposits
10% 9.5%
200
Average Quarterly Deposit Costs (%)
Deposit Analysis – Bank Only
7
Q2 COF declines to 3.8%, with NIM of 5.5%
Quarterly Net Interest Margins*
13.0%
Yield on Assets
Cost of Funds
13.0%
10.8%
Quarterly Yields & Costs by Currency*
11.0%
10.7%
10.8%
9.5%
9.4%
8.9%
9.0%
9.3%9.2%
20% 18.9%
17.6%
15.9%
14.0%17.6% 14.1%
15%
11.9%
12.5%
14.4%
10.4%
10%
10.8%
11.7%
11.1%
13.2%
7.4%
7.3%
5%
IDR
8.2%
12.1%
12.0%
8.8%
8.2%
8.4%
8.0%
7.7%
8.0%
5.0%
4.6%
6.9%
5.4%
4.0%
7.3%
0%
6.4%
6.3%
11.1%
Avg Loan Yield
Avg 1-Mo Bill
4.8%
15%
4.8%
NIM
Avg Bond Yield
Avg COF
4.5%4.3%
3.8%
11.8%
10%
FX
9.5%
7.6%
6.5%
5% 6.7% 4.8%3.8%
5.7%
5.5%
5.1%
4.7%
4.9%
4.9%
5.5%
4.9%
3.6%
4.3%
3.7%
2.8%
3.9%
2.4%
1.9%1.4%
1.1%
5.8%
5.3%
4.9%
4.4%4.0%
1.8%
2.3%
0%
3.4%
3.5%
2.7%
2.6%
Q2 '08
Q1 '08
Q4 '07
Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
Q4 '01
Q4 '00
Q2 '08
Q1 '08
Q4 '07
Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
Q4 '01
Q4 '00
*Excluding the impact of non-recurring interest income
7.3%
5.8%
5.6%
5.1%
8
H1 Fees and Commissions grew by 45.9%
Breakdown of Q2 2007 & 2008 Non-Loan Related Fees & Commissions (Rp bn)
Non-Loan Related Fees &
Commissions
H1 ‘07
Q1 ‘08
Q2 ‘08
H1 ‘08
H1U%
(Y-o-Y)
Q2 U%
(Q-o-Q)
Administration Fees
332.47
237.43
261.24
498.67
50.0%
10.0%
Opening L/Cs, Bank Guarantees &
Capital Markets
200.69
81.75
109.71
191.46
(4.6%)
34.2%
Subsidiaries
158.02
139.73
142.18
281.92
78.4%
1.8%
Transfers, Collections, Clearing &
Bank Reference
87.77
51.06
54.52
105.58
20.3%
6.8%
Credit Cards
104.35
78.85
86.83
165.68
58.8%
10.1%
7.07
10.32
16.64
26.96
281.3%
61.2%
212.15
165.87
172.47
338.35
59.5%
4.0%
Total
1,102.52
765.02
843.59
1,608.61
45.9%
10.3%
Total Operating Income#
8,924.39
4,261.44
4,666.39
8,927.82
0.0%
9.5%
Non-Loan Related Fees to Operating
Income**
12.35%
17.95%
18.08%
18.02%
28.6%
0.7%
Mutual Funds & ORI
Others*
* Others includes Syndication, Payment Points, ATMs, Debit Cards, etc.
** Non-Loan related fees & commissions/(Total Operating Income - Non-recurring interest income)
#
Excluding non-recurring interest income
9
Limited Impact on Government Recap Bonds
Bonds by Rate Type & Portfolio as of Jun 2008 (Rp bn)
Recap Bond Portfolio by Type and Maturity (Rp bn)
Maturity/
Rp bn
Trading
Portfolio
Nominal
Available for Sale
MTM
Nominal
MTM
70
Held to
Maturity
1.35
60
Fixed Rate
50
Variable Rate
40
Fixed Rate Bonds
0.93
30
< 1 year
271
271
9
9
-
1 - 5 year
142
143
200
191
1,350
10
5 - 10 year
27
27
499
483
-
0
> 10 year
56
56
224
216
-
Sub Total
496
497
932
899
1,350
Variable Rate Bonds
< 1 year
-
-
-
-
-
1 - 5 year
10
10
299
299
-
5 - 10 year
-
-
12,886
12,886
29,388
> 10 year
-
-
12,597
12,597
30,459
Sub Total
10
10
25,782
25,782
59,848
Total
506
507
26,714
26,681
61,198
59.848
20
25.782
0.50
0.01
Trading*
AFS#
HTM^
* Mark to Market impacts Profit
# Mark to Market impacts Equity
^ Nominal value
Q2 Recap Bond Gains/(Losses) (Rp bn)
Q2 ‘07
Q2 ‘08
Realized Gains/Losses
on Bonds
129.84
(54.23)
Unrealized Gains/Losses
on Bonds
13.02
33.44
Total
142.87
(20.78)
10
H1 Cost to Income Ratio remains 44.4%, on
track with FY expectations
Quarterly Consolidated Operating Expenses & CIR*
Breakdown of Q2 2007 & 2008 Operating Expenses
Q2 ‘07
Q2 ‘08
Change
(Y-o-Y)
Base Salary
294,225
358,365
21.80%
Other Allowances
430,057
510,971
18.81%
Post Employment Benefits
70,338
102,075
45.12%
Training
45,120
74,818
65.82%
Subsidiaries
89,168
128,772
44.42%
928,908
1,175,001
26.49%
IT & Telecommunication
195,318
200,335
2.57%
Occupancy Related
208,934
240,043
14.89%
Promotion & Sponsorship
66,896
200,296
199.41%
Transport & Traveling
65,849
73,474
11.58%
Professional Services
65,927
90,720
37.61%
Employee Related
56,858
82,299
44.74%
Subsidiaries
88,219
146,600
66.18%
748,001
1,033,767
38.20%
C IR* (%)
Annual Avg C IR (%)
Personnel Expenses
58.9%
47.2%
44.3%
40.4%
47.2%
40.2%
28.2%
Total Personnel Expenses
1,175
1,020
1,309
795
929
1,049
869
1,241
723
377
327
649
1,034
764
993
957
748
710
1,016
842
1,034
749
775
753
957 336
Q2 '08
Q1 '08
Q4 '07
Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
Q4 '01
Q4 '00
G&A Expenses (Rp bn)
Personnel Expenses (Rp bn)
*Excluding the impact of non-recurring interest income & bond gains
G & A Expenses
Total G & A Expenses
11
Q2 NPLs drop to Rp7.1 tn on upgrades, payments
and write-offs of Rp903 bn
Non-Performing Loan Movements (Rp bn) – Bank Only
Movement by Customer Segment (Rp Bn)
800
Corp
Micro/Small
Comm
Cons
163
7,256
116
709
624
74.8
7,109
47
600
112.1
99.7
91.2
400
86.8
346.1
200
0
Q1 '08
U/G to PL D/G from Payments Write-Offs
PL
Other
Q2 '08
346.2
47.0
25.3
43.6
175.6
UG to PL
DG to NPL
W/O
12
Gross NPLs decline to 4.7% with provisioning
coverage of 122.6%
NPL Movement - Consolidated
Category 2 Loans – Bank Only
70.9%
20,000
190.4%
201.7%
175.8%
25.3%
146.7%
122.6%
40%
14,000
19.8%
12,000
86.7%
30%
24.8%
10,000
8,000
20%
15.5% 14.8%
15.0%
6,000
4,000
9.2%
10.0%
10%
13,451
14,058
15,148
15,586
0
9.4%
15,854
16,750
16,966
12,912
8,334
10,983
16,202
0%
Q2 '08
Q1 '08
Q4 '07
Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q4 '05
Q4 '04
Q4 '03
Q4 '02
Net NPL Ratio
Prov/NPL incl. Coll.
2,000
11.9%
12,655 Q4 '01
15,350 Q4 '00
4,033 Q4 '99
4.74%0.97%
Q2 '08
Q1 '08
Q4 '07
3.3% Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q4 '04
Q4 '03
Q4 '02
Q4 '01
Q4 '00
Q4 '99
15.3% Q4 '05
5.14%
7.2%
7.1%
8.6%
7.3%
9.7%
12.2%
15.5%
16.3%
16.3%
44.4%
Gross NPL Ratio
Prov/NPL
16,000
109.0%
100.9%
70.0%
Cat 2 %
18,000
35.7%
151.1%
139.1%
129.5%
128.8%
50%
2 - Special Mention Loans (Rp Bn)
13
Cash Provisioning for Category 5 loans now
at 99.4%
Collateral Valuation Details
Non-Performing Loans by Segment
NPLs
(Rp tn)
Q1U
(Rp tn)
NPLs
(%)
Corporate
4.75
(0.20)
7.78%
Commercial
1.40
0.17
3.58%
Small
0.36
(0.03)
2.69%
Micro
0.13
(0.01)
3.82%
Consumer
0.47
(0.08)
2.67%
Collateral
Prov. (Rp bn)
7.11
(0.15)
4.74%
# of Accounts
Total
• Bank Mandiri’s current provisioning policy adheres
to BI requirements
• As of 30 June ’08, loan loss provisions excess to BI
requirements = Rp937 bn
Provisioning
Policy
Performing
Loans
Collectibility
1
2
3
4
5
BI Req.
1%
5%
15%
50%
100%
BMRI Policy
1%
5%
15%
50%
100%
BMRI pre-2005
2%
15%
50%
100%
100%
Non-Performing
Loans
Collectibility
1
2
3
4
5
Total Cash
Prov. (Rp bn)
1,263
1,789
350
550
5,102
% Cash
Provisions
1.1%
13.3%
26.6%
83.1%
99.4%
-
5,139
695
-
347
23
3
2
• Collateral has been valued for 28 accounts and collateral
provisions of Rp6,181 bn (30.0% of appraised value) have
been credited against loan balances of Rp7,134 bn
• Collateral value is credited against cash provisioning
requirements on a conservative basis. For assets valued
above Rp 5bn:
– Collateral is valued only if Bank Mandiri has exercisable rights to
claim collateral assets
– 70% of appraised value can be credited within the initial 12
months of valuation, declining to:
•50% of appraised value within 12 to 18 months
•30% of appraised value within 18 to 24 months
•No value beyond 24 months from appraisal
14
Annualized net downgrades of 0.56% on
new loans in Q2
Total Loans originated since 2005
Net Upgrades (%)/Downgrades (%) #
Q2 2008 Details
Loan
Background
Q2 ‘08
Balance
(Rp bn)
Q2
2006
Q3
2006
Q4
2006
Q1
2007
Q2
2007
Q3
2007
Q4
2007
Q1
2008
Q2
2008
DG to
NPL
%
UG to
PL
%
Corporate
39,760.1
-
-
0.02
-
0.49
0.55
-
-
0.10
0.10
-
Commercial
25,249.5
1.27
1.33
2.04
0.11
0.60
0.18
0.02
0.33
0.14
0.14
-
Small/Micro
11,926.8
3.14
2.17
1.62
1.87
1.56
1.07
0.59
0.92
0.58
0.70
0.12
Consumer
16,042.5
0.73
1.18
0.25
0.78
0.34
0.28
0.01
0.42
0.13
0.31
0.17
Total
92,979.0
1.08
1.00
0.68
0.42
0.29
0.23
0.08
0.28
0.18
0.22
0.05
# % downgrades and upgrades are quarterly % figures
15
Progress on selected debtors as of 30 June ’08
Suba
Suba Indah
Indah
Djajanti
Djajanti Group
Group
Loans outstanding of this debtor as of 30 June 2008 were Rp664 billion
The debtor had filed for bankruptcy in October 2007.
The curator is still in the process of asset valuation in preparation for an asset auction.
One member of the Suba Indah group, Primayudha Mandirijaya (outstanding loans of
Rp158 billion) are in the process of settlement through investor refinancing.
By June 2008, Primayudha Mandirijaya had paid a total of Rp57.4 billion in H1.
Djajanti group consist of 5 companies (Djajanti Plaza, Biak Mina Jaya, Artika Optima Inti,
Djarma Aru and Nusa Prima Pratama Industry).
Loans outstanding to this group as of 30 June 2008 were Rp561billion.
The obligor settled loans to PT. Hasil Tambak Amboina and PT. Kinantan Sena Putra in
October 2006 amounting to USD1.7 million .
The Bank was succeeded in auctioning loan collateral of Nusa Prima Pratama Industry with
a value of Rp151 billion.
The loans have been fully provided.
16
H1 ‘08 operating profit up 9.4% from H1 ’07
excluding non-recurring interest income
H1 2007
H1 2008
Rp billion
Rp billion
1,989
1,522
4,384
7,004
3,527
6,692
4,687
4,609
Up
9.4%
Excluding Nonrecurring Q1
Interest Income
4,212
Net Interest
Income
Fee-Based Income
Overhead
Pre-provision
Expenses & Others Operating Profit
Notes :
1. Fee based income excluding gain on sale & increasing value GB & securities
2. Overhead expenses + others excluding provisions
Net Interest
Income
Fee-Based Income
Overhead
Pre-provision
Expenses & Others Operating Profit
17
H1 Core earnings up 9.5% to Rp4,424 billion
Core Earnings
Profit After Tax & ROE
IDR bn
Gain on Sale/Value of Securities
FX Gain
Non-Recurring Interest
Core Earnings
8,000
1,113
1,221
1,040
1,234
1,329
1,390
1,027
1,744
2001 2002 2003 2004 2005 2006 2007 H1 '08
610 372
97 305
519 510
(623)
0
0
2.5%
690
1,549
308
10.0%
602
1,168
1,300
1,000
967
1,017
4,424
4,040
5,589
4,335
5,492
3,514
2,000
4,787
3,000
799
1,166
185
1,408
819
74
17.9%
15.8%
775
645
4,145
Pre-Provision Operating Profit
380
402
1,528
260
4,000
247
2,913
114
23.6%22.8%
21.5%
166
2,072
5,000
2,021
6,000
RoE - After Tax
(Annualized)
26.2%
311
475
1,651
7,000
213
2001
2002
2003 2004
Q1 PAT
Q2 PAT
2005 2006
Q3 PAT
2007
Q4 PAT
2008
18
Operating
Performance
Highlights
19
Recap: Leveraging leadership in cash generating businesses
to build emerging and future growth engines
SBU H1 ‘08 Contribution Margin
Consumer
Finance & Micro
& Retail Banking
Rp2,294 bn
373
1,584
Corporate &
Treasury
Rp1,651 bn
Building
Future
Growth
Engine
11
1,921
33
1,333
3,694
363
Leveraging
Our Cash
Generator
Optimizing
Optimizing
Synergies
Synergies
Across
Across SBUs
SBUs
Strengthen
Emerging
Business
22
Commercial
Banking
Rp1,333 bn
1,288
Contribution Margin (Net Profit Before Tax)
Corporate
Treasury & Commercial
Int'l
Micro &
Retail
Consumer Others, Incl.
Profit
Finance
SAM
Before Tax
20
…supported by 4 pillars of subsidiaries with an additional
one soon to be developed
Syariah Banking
Investment
Bank
Insurance
Niche Banking
Bank Sinar
Harapan Bali
Total Assets
Rp16.3 tn
Bond Trading Volume
Rp15.9 tn
Total Assets
Rp4.4 tn
Total Loans
Rp236 bn
Total Financing
Rp12.7 tn
Bond Underwriting
Rp2.6 tn
Annual FYP
Rp365.7 bn
Net Interest Margin*
12.7%
Total Deposits
Rp14.3 tn
Equity Trading Volume
Rp26.9 tn
Fee Contribution
Rp55.6 bn
ROA
2.28%
ROE
22.8%
ROA
6.3%
ROE
44.2%
ROE
14.27%
• 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
* Excluding deposits made by
Bank Mandiri
21
The acquisition of Tunas Finance will boost consumer
segment growth
Although Bank Mandiri’s Consumer Segmen
volume is constantly grow, vehicle-ownership
loan portfolio is still relatively small
Through acquisition of Tunas Finance, Bank
Mandiri’s vehicle ownership is expected to
grow rapidly
Tunas Finance will be the main vehicle-ownership
loan generator
The portfolio of Bank Mandiri auto loan is lower
than multi-finance company (i.e. Tunas Finance),
the possibilities to growth is relatively high as
shown by the total portfolio of national
Consumer Financing.
Bank Mandiri and shareholders of Tunas
Finance have agreed the terms of acquisition
and signed the Perjanjian Pengikatan Jual Beli
(“PPJB”) Saham on 27 June 2008, in relation to
the acquisition of 51% share of Tunas Finance
with value of IDR 290 billion.
Tunas Finance is supported by its related captive
dealers located throughout major cities in Indonesia
Consumer Financing National Portfolio (Indonesia)
Tunas Finance Company Profile
(Pre Acquisition)
USED CARS
Rp Trillion
0.50
JARDINE CYCLE &
CARRIAGE
2.21
0.33
37 %
PUBLIC
49 %
14 %
72.21
2.11
0.25
2.04
TUNAS ANDALAN
PRATAMA
68.25
TUNAS
MOBILINDO
PARAMA
TUNAS
RIDEAN
25%
75%
TUNAS
FINANCE
MOTORCYCLE
Bank Mandiri will utilize Tunas Finance to develop its
business in consumer segment, especially in vehicleownership financing, by using Bank Mandiri’s
network infrastructure throughout Indonesia.
Bank Mandiri – Tunas Finance
Network synergy masterplan
65.27
TUNAS FINANCE
Growth
2006-2007:
as of 31 Dec 2007
0.14
1.71
55.45
4Q06
4Q07
1Q08
2Q08
Auto Bank Mandiri
Tunas Finance
Consumer Finance Nasional (up to May 08)
Total Financing
IDR 2.04 Trillion
Net Profit
IDR 84.7 Billion
ROE
25.23 %
NIM
5.75 %
978 employees
The synergy is expected to significantly increase Bank
Mandiri’s market share in consumer segment.
32 branches
22
Corporate Banking:
H1 Growth in Contribution Margin of 13.3%
Contribution Margin (after PPAP)
Performance to Date, H1 2008
Rp bn
Q1
229
Q2
Q3
Rp bn
Q4
2,906
91
1,345
57
1,288
692
785
2,079
488
1,077
1,288
13%
983
547
592
421
614
545
741
(6)
Asset
Spread
Liabilities
Spread
Fees
Overhead Operating Provisions
Profit
Profit
After
PPAP
2006
2007
2008
23
Corporate Banking:
Strengthening Growth in Key Areas
Breakdown of Net Expansion by Sector, H1 ’07 – H1 ‘08
(Total Rp14.69 tn)
U%
Rp Billion
4,163
Comm
34.01%
1,297
851
Mfg-Chem
816
TradingDistr
728
486
319
532
391
67.09%
262.73%
19.68%
110.40%
560
Mass Trans
TradingRet
693
611
63.67%
1,496
Mfg-Oth
TradingExp
1,128
51.01%
2,032
Plantations
Rp Billion
195.62%
3,277
Mfg-F&B
Mining-Oil
& Gas
Consumer Loans from Alliance Program
(10 top corporate clients)
Q4 '06
Q1 '07
Q2 '07
Q3 '07
Q4'07
Q1 '08
Plantation Small & Micro Lending from Alliance Program
291.25%
320
Rp Billion
453
357.86%
279
Utilities
Simple
Housing
ConstrElect
TradingDom
(222)
86.98%
Mfg-Wood
(224)
(88.52%)
246
23.66%
110
331.18%
Mfg-Metal
(470)
(50.45%)
Other
(565)
(44.50%)
Q2 '08
234
4,250
3,750
3,250
2,750
2,250
1,750
1,250
750
250
(250)
(750)
259
268
Q2 '07
Q3 '07
350
347
Q4'07
Q1 '08
149
Q4 '06
Q1 '07
Q2 '08
24
Mandiri Sekuritas continued to improve
H1 ’07
H1 ’08
Growth Y-o-Y
(%)
204
245
20%
• Investment Banking
72
92
28%
• Capital Market
111
115
4%
6
5
(16%)
• Investment Mgt
14
32
128%
Operating Expenses
95
134
42%
Earnings After Tax
56
65
15%
Equity Transactions
18,260
26,940
48%
SUN Transactions
37,711
15,901
(58%)
Bonds Underwritten
1,583
2,633
66%
ROA
6.2%
6.3%
2%
ROE
14.7%
15.8%
7%
(Rp Bn)
Revenues
• Treasury
25
Treasury & International Banking
Net Interest Income
Performance to Date, H1 2008
Rp bn
Rp bn
75
110
120
H1 '06
53
H1 '07
H1 '08
Business Volume (Rp bn)
363
359
Rp bn
Loans
4,956
2007
4,061
2006
4,231
2005
2,823
Profit
After
PPAP
3,007
Revenue Losses on Overhead Provisions
GB &
Securities
Deposits
913
Fees
2,512
1,011
Interest
Income
359
611
296
252
H1'2008
26
Commercial Banking:
Strong revenues from both Liabilities & Assets
Contribution Margin (after PPAP)
Performance to Date, H1 2008
Rp bn
Q1
102
203
1,353
Q2
Q3
Q4
Rp bn
2,114
20
1,333
584
1,957
578
863
1,333
564
37%
630
668
445
485
946
Asset
Spread
Liabilities
Spread
Fees
Overhead Operating Provisions
Profit
Profit
After
PPAP
487
703
(297)
2006
2007
2008
27
Commercial Banking:
Strong growth in both Liabilities & Assets
Breakdown of Net Expansion by Sector, H1 ’07 – H1 ‘08
(Total Rp10.67 tn)
Loan & Deposit Geographic Distribution, H1 2008
U%
1,668
Other
25.18%
1,282
Plantations
75.76%
Mfg-Chem
1,099
47.91%
Constr
1,092
27.38%
Mfg-Oth
1,045
23.64%
1320.43%
821
Utilities-Gas
52.71%
760
Trading-Distr
Mfg-Text
500
46.76%
Mfg-P&P
471
60.21%
Leasing
447
113.20%
426
34.72%
Mass Trans
Trading-Dom
296
50.59%
Mfg-F&B
278
19.98%
Mfg-Metal
246
44.04%
198
23.92%
Trading-Ret
Jakarta
Rp3,485;
45.5%
Java (ex-Jkt),
Bali & Nusa
Tenggara
North
Sumatera
Loans:
Volume (Rp bn);
Y-o-Y U%
Rp17,461;
44.3%
Rp10,005;
37.4%
139.54%
561
Trading-H&R
Rp2,395;
31.2%
Rp895;
Rp2,243;
47.6%
39.6%
South
Sumatera
Kalimantan
Rp2,419;
14.8%
Rp1,549;
(4.9%)
Rp1,545;
(6.0%)
Sulawesi &
Eastern
Indonesia
Rp3,300;
(11.2%)
Deposits:
Volume (Rp bn);
Y-o-Y U%
Rp15,336;
21.0%
Rp5,140;
21.4%
1,750
1,500
1,250
1,000
750
500
250
0
28
Strong growth from our Syariah Banking
subsidiary
Financial Performance (Rp bn)
Net Interest Margin & Cost of Funds
Q4 ‘06
Q2 ‘07
Q4 ‘07
Q1 ‘08
Q2 ‘08
Financing
7,415
8,465
10,305
11,150
12,730
Deposits
8,219
8,851
11,106
12,246
14,270
Assets
9,555
10,438
12,888
14,031
16,285
EAT
65.48
61.80
114.64
46.24
96.28
YoA
Net NPF
4.64%
4.56%
3.43%
2.63%
2.15%
5.7%
5.4%
FDR
94.2%
92.8%
90.2%
5.4%
5.4%
5.3%
4.9%
5.2%
CoF
Syariah Financing (Rp tn)
95.6%
5.3%
6.3%
22.78%
7.7%
22.64%
6.7%
15.94%
8.1%
17.49%
6.3%
10.23%
7.0%
ROE
6.1%
1.94%
13.5% 13.0%
6.9%
2.05%
6.0%
1.54%
6.8%
1.75%
7.2%
1.10%
12.3% 12.1% 12.0% 12.2% 12.4%
6.9%
ROA
7.9%
Spread
Ratios:
13.6%
91.1%
89.2%
87.3%
Q1 '07
Q2 '07
9.30
Q3 '07
Q4 '07
Q1 '08
Q2 '08
2005
6.4%
Q4 '06
8.47
NIM
5.6%
7.41
7.64
10.31
6.8%
12.73
11.15
Q4 '06 Q1 '07
Q2 '07 Q3 '07
Q4 '07 Q1 '08 Q2 '08
29
Micro & Retail Banking:
Rapidly growing our high margin business
Contribution Margin (after PPAP)
Performance to Date, H1 2008
Rp bn
Q1
947
Q2
Q3
Rp bn
Q4
2,203
399
1,921
1,772
2,343
1,509
491
46%
1,045
1,960
39
471
1,921
305
740
293
876
440
442
Asset
Spread
Liabilities
Spread
Fees
Overhead Operating Provisions
Profit
Profit
After
PPAP
2006
573
2007
2008
30
Building a strong savings deposit franchise
Transaction channel growth
Savings Deposit Growth
Savings Deposits (Rp tn)
As % of Total Deposits
National Share of Savings Deposits (%)
Avg ATM Daily Vol (000)
Transfer
Other
Withdrawal/Inquiry
Payment
40.0%
34.6%
2,093
2,057
15.3%
976.7
Quarterly Call Center Trans. (000)
Quarterly SMS Trans. (000)
899.7
853.4
816.2
759.6
17.2%
706.3
19.1%
18.5%
17.6%
677.0
11.0%
17.5%
29.2%
607.5
16.2%
31.7%
492.1
30.6%
2,116
1,984
1,722 1,485 1,833
11.6%
11,813
14,487
15,864
16,857
19,116
Q1 '07
Q2 '07
Q3 '07
Q4 '07
Q1 '08
Q2 '08
Q4 '06
Q4 '05
Q4 '03
Q4 '02
Q4 '01
12,140
11,435
679
106 1,069
6,988
1,016
3,072 Q4 '04
27
Q4 '00
88.522 Q2 '08
81.650 Q1 '08
81.535 Q4 '07
62.53 Q2 '07
57.2 Q1 '07
57.6 Q4 '06
45.2 Q4 '05
52.0 Q4 '04
40.5 Q4 '03
29.6 Q4 '02
22.1 Q4 '01
18.0 Q4 '00
65.734 Q3 '07
1,086
31
Micro & Retail Banking:
Focus on growing our high yield businesses
Loan
Yields
KUR
(Rp Bn)
Micro Credits
(Rp Bn)
Small Credits
(Rp Bn)
12.4%
19.2%
1179%
1,335
4,932
62.9%
790
857
3,457
2,122
12,902
7,970
61.9%
Growth
Q1 2008
67
H1 2007
Growth
H1 2007
H1 2008
Growth
H1 2008
Q4 2007
Disbursement Breakdown (Q2 ‘08)
Disbursement Breakdown (Q2 ‘08)
Kredit Usaha Rakyat (KUR):
1 111
444
37
593
1. Loan aiming for productivity
with limit up to Rp500 million.
0
96
1,634
1,351
3,752
2,470
283
TOTAL
Cash Coll
Food Suff.
Channeling
Alliances
Coops
Program
Non-Prog
Rural
B anks
M icro
Unsecured TOTA L
M icro
2. Maximum interest rate 16%
effective p.a.
3. 70% is guaranteed by PT
Askrindo or Perum Jaminan
Kredit Indonesia
* up to H1 2008, total loans
guaranteed by loan insurance
institution is Rp433.21 billion
32
Consumer Finance:
Significant growth in spread and fee income
Contribution Margin (after PPAP)
Performance to Date, H1 2008
Rp bn
Rp bn
Q1
125
Q2
Q3
Q4
639
269
158
580
412
61
79
17%
100
373
Fees
Overhead
Operating
Profit
200
170
434
NII
374
161
Provisions Profit After
PPAP
90
143
150
174
2006
2007
2008
33
Consumer lending rose 11.3% Q-o-Q and 37.9%
Y-o-Y
Quarterly Consumer Loan Balances by Type
Consumer Loan Growth by Type
Rp17.52 tn
18,000
Other
Loan Type
Credit Cards
Payroll Loans
14,000
Mortgages
3,658
3,390
3,404
3,522
3,666
3,979
3,867
3,437
3,612
3,702
3,010
3,192
1,908
1,426 2,644
1,358 2,427
1,293 2,285
1,231 2,165
1,241 1,996
7,199
6,393
5,382
4,501
3,865
3,663
3,610
3,574
3,452
3,250
328
0 283
3,050
1,802
2,000
4,033
815
Q2 '08
Q1 '08
Q4 '07
Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q3 '06
Q2 '06
Q1 '06
Q4 '05
Q4 '03
2,852 1,522 Q4 '04
4,000
1,2791,906
6,000
4,131
1,2701,921
8,000
1,367 1,930
10,000
1,678 2,789
12,000
1,926
Home Equity Loans
2,008
16,000
Growth (%)
Y-o-Y
Q-o-Q
Other
173.07%
54.31%
Credit Cards
40.77%
4.25%
Payroll Loans
38.37%
14.61%
Home Equity Loans
8.77%
2.48%
Mortgages
86.28%
12.61%
Total Consumer
37.92%
11.31%
*Auto & Motorcycle Loans channe le d or e xe cute d throug h
finance comp anie s = Rp 4.58 tn in our Comme rcial Loan
Portfolio
34
35
32
57
42
18 8
68
81
23
56 59
24 16 10
62
57
61
11
68
3
72
17
67
19
62
17
58
9
61
10
62
Cash Advance
Retail
1,225.9
Transfer Balance
Total Card Quarterly Sales by Type of Transaction (Rp Bn)
Q2 '08
Q1 '08
Q4 '07
Q3 '07
Q2 '07
Q1 '07
Q4 '06
Q3 '06
Q2 '06
Q1 '06
Q4 '05
Q3 '05
Q2 '05
Q1 '05
Q4 '04
1,925.9 Q1 '08
1,907.5 Q4 '07
1,033.4
1,677.6 Q3 '07
1,426.2 Q2 '07
918.8
1,089.4
2,007.7 Q2 '08
1,357.5 Q1 '07
1,230.7 Q3 '06
1,240.8 Q2 '06
764.9
1,279.4 Q1 '06
1,367.4 Q4 '05
650.7
1,270.2 Q4 '04
814.9 Q4 '03
225.7
Cards (000s)
817.1
1,292.8 Q4 '06
Receivables (Rp Bn)
Mandiri Visa & Mastercards and EOQ Receivables
1,226k Visa & Mastercards transacted Rp1.76
tn in Q2
1,668
1,443
1,514
1,225
1,067
936
836
755
621
553
600
606
532
521
535
567.5 Q4 '02
Financial targets for 2008
Metric
Gross NPLs
Normalizing ROE
Gross loan growth*
Corporate#
Commercial
Consumer
Micro & Retail
Growth in savings deposits
Margin improvement
Retain efficiency ratio
NPL Provision Coverage
* Prior to the write-off & repayment of NPLs
# Includes Treasury & International
Target
18%
>20%
>20%
>30%
>20%
>Rp90 tn
~5.2%
120%
36
Supporting Materials
37
Key Quarterly Balance Sheet Items & Financial
Ratios
IDR billion / %
H1 ‘07
FY 2007
H1 ‘08
YoY Change (%)
Gross Loans
116,306
138,530
149,612
28.6%
Government Bonds
91,164
89,465
88,386
(3.0%)
Total Assets
265,022
319,086
304,680
15.0%
Customer Deposits
206,241
247,355
236,213
14.5%
Total Equity
26,949
29,244
27,711
2.8%
RoA - before tax (p.a.)
2.33%
2.28%
2.44%
RoE – after tax (p.a.)
15.92%
15.75%
17.89%
Cost to Income(1)
38.74%
46.98%
44.40%
NIM (p.a.)
5.64%
5.23%
5.25%
LDR
56.39%
54.29%
62.16%
Gross NPL / Total Loans
15.47%
7.17%
4.74%
Provisions / NPLs
86.68%
108.97%
122.55%
Tier 1 CAR(2)
19.66%
16.56%
14.48%
Total CAR(2)
25.13%
21.11%
17.72%
Total CAR incl. Market Risk
24.40%
20.75%
17.58%
EPS (Rp)
103.5
209.8
124.1
19.9%
Book Value/Share (Rp)
1,304
1,412
1,318
1.1%
(1) (G&A and employee expenses) / (Net Interest Income + Other Operating Income), excluding bond gains
(2) Bank only – Not including Market Risk
38
Summary P&L Information – H1 ‘07 vs. H1 ‘08
Q1’07
Q1 ‘08
YoY Change
Rp (Billions)
% of
Av.Assets*
Rp (Billions)
% of
Av.Assets
(%)
Interest Income
12,335
9.3%
12,175
8.1%
(1.3%)
Interest Expense
(5,643)
(4.2%)
(5,171)
(3.4%)
(8.4%)
Net Interest Income
6,692
5.0%
7,004
4.6%
4.7%
Other Operating Income
1,522
1.1%
1,989
1.3%
30.7%
235
0.2%
10
0.0%
(95.7%)
Provisions, Net
(1,856)
(1.4%)
(855)
(0.6%)
(53.9%)
Personnel Expenses
(1,724)
(1.3%)
(2,195)
(1.5%)
27.3%
G & A Expenses
(1,458)
(1.1%)
(1,798)
(1.2%)
23.3%
Other Operating Expenses**
(345)
(0.3%)
(391)
(0.3%)
13.3%
Profit from Operations
3,066
2.3%
3,689
2.4%
20.3%
Non Operating Income
15
0.0%
72
0.0%
380.0%
Net Income Before Tax
3,081
2.3%
3,761
2.5%
22.1%
Net Income After Tax
2,140
1.6%
2,610
1.7%
22.0%
Gain from Increase in Value & Sale of Bonds
* % of Average Assets on an annualized basis
** primarily premiums paid under the blanket guarantee scheme
39
40
90.8
Q3 '07
89.5
Q2 '07
90.6
Q1 '07
54.0
108.8
55.1
107.8
57.6
105.1
90.6
Q4 '06
91.0
Q3 '06
92.3
Q2 '06
92.2
Q1 '06
92.1
Q4 '05
93.1
Q4 '04
122.9
Q4 '03
148.8
Q4 '02
153.5
Q4 '01
176.9
Q4 '00
177.4
Q4 '99
34.8%
41.0%
106.9
60.7
65.4
33.4
19.0%
48.3
43.0
19.0%
75.4%
60.5
75.9
34.1%
36.1
74.1%
50.6
60.6%
94.4
50
75
100
125
150
175
200
225
250
275
27.044.0
0
64.5
40.9%
50.0%
Int. from Bonds
117.7
40.6%
114.3
50.1%
56.1
46.9%
116.3
47.1%
Int. from Loans
59.2
Consolidated
Q4 '07
Other Assets
89.5
Loans
Q1 '08
Government Bonds
88.6
121.7
59.2
300
Q2 '08
138.5
61.2
325
88.4
25
135.5
91.1
31.0% 32.3%
75.5
52.2%
56.8%
149.6
Total Assets (Rp tn)
Total Assets rose 1.7% to Rp304.7 tn in Q2 ‘08
66.7
136.8 30.7
Q1 '08
134.0 28.3
Q4 '07
121.8 27.9
Q3 '07
113.1
28.4
Q2 '07
107.9
29.3
Q1 '07
112.2
28.4
Q4 '06
110.4
28.1
Q3 '06
110.7
27.8
Q2 '06
110.7
27.9
Q1 '06
115.9
27.4
Q4 '05
117.5
27.8
Q3 '05
115.9 27.5
Q2 '05
114.1 30.4
Q1 '05
108.9 27.5
Q4 '04
25.5
31.3%
23.4%
91.9
72.5
Q4 '03
17.0
Q4 '02
58.1 15.4
Q4 '01
42.6 13.3
Q4 '00
RWA (Rp tn)
Q2 '08
Total Capital (Rp tn)
41
25.3%
17.7%
22.9%
22.4%
21.1%
25.2%
27.1%
25.1%
26.6%
CAR
BI Min Req
CAR drops to 17.7% on Rp27.1tn capital
152.8 27.1
Additional Factors
Written-off
Written-off
Loans
Loans
Loan
Loan
Collateral
Collateral
Undervalued
Undervalued
Aggregate of Rp33.758 tn (US$ 3.661 bn) in written-off loans as of endJune 2008, with significant recoveries on-going:
¾ 2001: Rp2.0 tn
¾ 2002: Rp1.1 tn
¾ 2003: Rp1.2 tn
¾ 2004: Rp1.08 tn
¾ 2005: Rp0.818 tn (US$ 83.2 mn)
¾ 2006: Rp3.408 tn (US$ 378.5 mn)*
¾ 2007: Rp1.531 tn (US$ 249.3 mn)
¾ Q1 ’08: Rp0.325 tn (US$ 35.3 mn)
¾ Q2 ’08: Rp0.572 tn (US$ 62.0 mn)
* including the write-back of RGM loans totaling Rp2.336 tn
Collateral values included for provisioning purposes on only 28 accounts,
carried at approximately 30.0% of appraised value.
42
Summary Quarterly Balance Sheet: Q2 ‘07 –‘08
Total Assets
Cash
Current Accounts w/BI
Certificates of BI
Other Placements w/BI
Current Accounts &
Placements w/Other Banks
Securities - Net
Government Bonds
Trading
AFS
HTM
Loans
Performing Loans
Non-Performing Loans
Allowances
Loans – Net
Total Deposits – Non-Bank
Demand Deposits
Savings Deposits
Certificate & Time Deposits
Shareholders’ Equity
Q2 ‘07
Q3 ‘07
Q4 ‘07
Q1 ‘08
Y-o-Y
Rp (tn)
Rp (tn)
Rp (tn)
Rp (tn)
Rp (tn)
US$ (bn)#
% Change
265.02
4.10
20.58
3.77
0.50
273.79
4.32
20.55
7.68
0.00
319.09
5.91
28.16
23.52
11.20
299.59
4.87
23.07
14.24
2.04
304.68
5.20
22.84
1.92
4.55
33.05
0.56
2.48
0.21
0.49
15.0%
26.8%
11.0%
(49.1%)
810.0%
18.88
14.89
7.02
12.45
12.80
1.39
(32.2%)
5.45
89.49
0.83
27.56
61.09
116.31
98.31
17.99
(15.60)
100.71
206.24
54.68
65.58
85.98
26.95
3.70
90.79
1.59
28.00
61.20
121.74
108.92
12.82
(13.39)
108.34
210.10
53.25
69.06
87.79
28.06
3.79
89.47
0.97
27.29
61.20
138.53
126.56
11.97
(13.04)
125.27
247.36
67.01
85.36
94.99
29.24
4.10
88.59
0.62
26.77
61.20
135.51
127.60
7.92
(9.18)
126.33
223.92
50.34
85.85
87.73
30.57
4.05
88.39
0.51
26.68
61.20
149.61
141.80
7.81
(9.57)
140.04
236.21
57.93
93.32
84.97
27.71
0.44
9.59
0.05
2.89
6.64
16.23
15.38
0.85
(1.04)
15.19
25.62
6.28
10.12
9.22
3.01
(25.7%)
(3.0%)
(72.3%)
(5.2%)
0.0%
28.6%
44.2%
(56.6%)
(38.6%)
39.1%
14.5%
5.9%
42.3%
(1.2%)
2.8%
Q2 ‘08
# USD1 = Rp9,220
43
Summary P&L Information – Q2 2008
Q2 2007
Q1 2008
Q2 2008
Y-o-Y Change
Rp (Billions)
% of
Av.Assets*
Rp (Billions)
% of
Av.Assets*
Rp (Billions)
% of
Av.Assets
(%)
Interest Income
5,574
8.5%
6,142
7.9%
6,033
8.0%
(1.8%)
Interest Expense
(2,681)
(4.1%)
(2,757)
(3.6%)
(2,414)
(3.2%)
(12.4%)
Net Interest Income
2,893
4.4%
3,385
4.4%
3,619
4.8%
6.9%
Other Operating Income
808
1.2%
927
1.2%
1,062
1.4%
14.6%
Gain from Increase in Value & Sale
of Bonds
211
0.3%
-
0.0%
10
0.0%
N/A
Provisions, Net
(458)
(0.7%)
(308)
(0.4%)
(547)
(0.7%)
77.6%
Personnel Expenses
(929)
(1.4%)
(1,020)
(1.3%)
(1,175)
(1.6%)
15.2%
G & A Expenses
(748)
(1.1%)
(764)
(1.0%)
(1,034)
(1.4%)
35.3%
Other Operating Expenses**
(181)
(0.3%)
(241)
(0.3%)
(150)
(0.2%)
(37.8%)
Profit from Operations
1,596
2.4%
1,979
2.6%
1,710
2.3%
(13.6%)
Non Operating Income
6
0.0%
27
0.0%
45
0.1%
66.7%
Net Income Before Tax
1,602
2.4%
2,006
2.6%
1,755
2.3%
(12.5%)
Net Income After Tax
1,114
1.7%
1,390
1.8%
1,220
1.6%
(12.2%)
* % of Average Assets on an annualized basis
** primarily premiums paid under the blanket guarantee scheme
44
Reconciliation to IFRS
FY ’03
FY ’04
FY ’05
FY ’06
FY ’07
Rp (Billions)
Rp (Billions)
Rp (Billions)
Rp (Billions)
Rp (Billions)
4,586
5,256
603
2,421
4,346
(662)
(309)
(2,681)
1,598
1,934
104
70
(223)
44
(2)
52
-
-
-
-
(21)
25
-
-
-
55
10
9
4
(17)
199
75
25
30
26
Rights of Lands amortization
-
-
-
(137)
(7)
De-recognition of allowances
-
-
-
-
-
82
38
861
(503)
(583)
Net Adjustment
(191)
(90)
(2,008)
1,037
1,351
Net profit in accordance with IFRS
4,395
5,166
(1,405)
3,458
5,697
Net profit under Indonesian GAAP
IFRS Adjustments
Allow. for possible losses on earning assets
Allow. for possible losses on commitments & contingencies
Change in fair value of derivatives
Employee benefits
Accretion on deferred inc. arising from loan purchase from
IBRA
De-recognition of revaluation of premises & equipment
Deferred income taxes
IFRS = International Financial Reporting Standards
45
Ex-Recap Bond Portfolio, 30 Jun ‘08 – Bank Only
Series
Fixed Rate
FR0002
FR0010
FR0014
FR0019
FR0020
Maturity
Date
15-Jun-09
15-Mar-10
15-Nov-10
15-Jun-13
15-Dec-13
Sub Total
Variable Rate
VR0017
25-Jun-11
VR0019
25-Dec-14
VR0020
25-Apr-15
VR0021
25-Nov-15
VR0022
25-Mar-16
VR0023
25-Oct-16
VR0024
25-Feb-17
VR0025
25-Sep-17
VR0026
25-Jan-18
VR0027
25-Jul-18
VR0028
25-Aug-18
VR0029
25-Aug-19
VR0030
25-Dec-19
VR0031
25-Jul-20
Sub Total
Grand Total
Interest
Rate (%)
14.00%
13.15%
15.58%
14.25%
14.28%
7.83%
7.83%
8.10%
7.83%
7.83%
8.10%
7.83%
7.83%
8.10%
8.10%
7.83%
7.83%
7.83%
8.10%
(Stated in Rp Millions)
Trading
Nominal
AFS
HTM
Mark To
Market
103.201
100.000
106.656
104.002
104.318
68
-
2,947
231,028
291
1,350,000
-
68
234,266
1,350,000
298,270
5,050,000
4,100,000
2,400,000
692,844
659,738
1,696,428
5,344,421
5,597,343
25,839,044
68
26,073,310
0.00%
29.91%
Total Nominal Value
1,114,300
391,029
690
6,796,813
4,086,068
8,210,550
5,210,550
3,475,267
3,475,267
3,475,267
3,475,267
8,016,765
12,016,765
59,744,598
61,094,598
70.09%
87,167,976
100.113
99.947
99.864
99.768
99.897
99.764
100.000
100.000
100.000
100.000
99.718
99.668
100.000
99.664
Trading
Fair Value
AFS
HTM
70
-
3,143
240,273
304
1,350,000
70
243,720
1,350,000
298,607
5,047,324
4,094,424
2,394,432
692,130
658,181
1,691,644
5,326,678
5,578,536
25,781,955
70
26,025,675
0.00%
29.87%
Total Fair Value
1,114,300
391,029
690
6,796,813
4,086,068
8,210,550
5,210,550
3,475,267
3,475,267
3,475,267
3,475,267
8,016,765
12,016,765
59,744,598
61,094,598
70.13%
87,120,343
-
46
Bank Mandiri Credit Ratings
S&P
Moody’s
Fitch
Stable
Positive
B2
Stable
Long Term Foreign Currency Debt
Short Term Outlook
Short Term Foreign Currency Debt
Subordinated Debt
Individual Rating
Support Rating
Bank Financial Strength
BB-
WR
Stable
NP
Ba3
BB
Long Term Local Currency Outlook
Long Term Local Currency Debt
Stable
BB-
BB
B
B
idnAA+
Pefindo
Bank Mandiri Ratings
Long Term Foreign Currency Outlook
Long Term Bank Deposits
Short Term Local Currency Debt
National Rating
B
B
BBC/D
3
D-
idAA
47
Corporate Actions
Net Profit for the financial year of 2007 of Rp4,346,223,721,208.00
was distributed as follows:
50%, or Rp2,173,111,860,604.00, for the annual dividend
40%, or Rp1,738,489,488,483.20, for a one-time “special dividend“
Total Dividend Payment of Rp186.00 per share
Schedule :
Dividend
Dividend
Payment
Payment
a. Cum Date
: June 19, 2008
b. Ex Date
: June 20, 2008
c. Payment Date
: July 3, 2008
Net Profit for the financial year of 2006 of Rp2,421,405,120,753.71
was distributed as follows:
50%, or Rp1,210,702,560,376.86, for the annual dividend
10%, or Rp242,140,512,075.37, for a one-time “special dividend“
Total Dividend Payment of Rp70.28 per share
48
Q2 2008 Movement in Category 1 and 2 Loans
Category 1 Loan Movements (Rp bn) – Bank Only
Category 2 Loan Movements (Rp bn) – Bank Only
113,940
41
12,893
101,320
1,732 1,399
3
22
14,058 1,732 1,399
Beg.
Bal.
D/G to 2
U/G
from 2
D/G to
NPL
U/G
from
NPL
Net
Disburs.
FX
Impact
End Bal.
Beg.
Bal.
Cat. 1
D/G
706
U/G to D/G to
1
NPL
337
13,452
94
10
NPL
U/G
Net
FX End Bal.
Collect. Impact
49
Q2 2008 Loan Detail: Collectibility by Segment
Loan Profile: Q2 Collectibility (Rp bn) by Segment
Bank Only
Loan Profile: Q2 Collectibility (%) by Segment
Bank Only
5.9%
1.5%
2.3%
0.6%
6.5%
2.0%
0.3%
7.2%
2.3%
0.7%
12.8%
65,000
1.8%
0.4%
8.9%
60,000
13.1%
55,000
50,000
45,000
5
4
40,000
5
35,000
4
3
90.0%
90.1%
79.2%
83.4%
88.5%
2
1
3
30,000
2
25,000
1
20,000
15,000
10,000
5,000
0
Corp
Comm
Small
Micro
Cons
Corp
Comm
Small
Micro
Cons
50
NPL Loan Detail*: Quarterly by Days Past Due
Quarterly D/G to NPL & Interest DPD - Bank Only
Quarterly NPL Stock & Interest DPD - Bank Only
Rp tn
70%
Current (%)
70%
Current (%)
60%