PT Bank Rakyat Indonesia (Persero) Tbk. Q2 - 2014 Financial Update - PowerPoint PPT Presentation

PT Bank Rakyat Indonesia (Persero) Tbk. Q2 - 2014 Financial Update Presentation Maintaining profitability in a challenging environment Jakarta, 22 July 2014

Outline Macro Economy Q2 2014 - a maintained performance Financial Updates Business Update: 1. Micro Banking 2. Consumer Loans 3. Small Commercial and Medium Loans 4. SoE and Corporate Loans 5. Fee Based Income Key Take Aways Appendixes 2

Macro Economy 3

Indonesia Macro Economy GDP GDP Composition (%) Trade Balance (USD billion) 6.49% 6.22% 6.23% Import 5.78% -25.03 4.63% 1.53 5.21% 0.79 0.84 0.65 GDP Consumption 0.13 0.07 0.07 0.02 56.39 Q1 2014 Export 23.67 5.21% -0.07 -0.44 -0.29 -0.53 -0.16 -0.81 -0.88 -1.7 -1.96 23.88 27.03 30.66 33.53 36.50 Investment -2.33 30.8 Feb-13 Mar-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Feb-14 Mar-14 May-14 Dec-12 Jan-13 Apr-13 Oct-13 Nov-13 Dec-13 Jan-14 Apr-14 Govt. 2009 2010 2011 2012 2013 Mar '14 Expenditure 6.76 GDPPer Capita (in Rp Mn) GDPGrowth Trade Balance (USD.bn) Export Import Reserved Assets & Inflation (%) • GDP growth in Q1 2014 was 5.21% yoy, lower than Exchange Rate expected. By the end of 2014, GDP growth is targeted at 5.1 – 5.5% revised down from 5.5-5.9%. This economy 12,171 11,875 2013 growth still be supported by domestic economy. 120.0 12,500 8.22 (mom) 11,361 110.0 12,000 • As of May’14, trade balance shows a thin surplus of USD 7.75 2014 100.0 7.327.25 7.32 70million. However, by increasing import, it is expected 11,500 6.70 (mom) 90.0 a trade balance deficit in Q2’14. While for current 11,000 80.0 3.29 account deficit, it is projected at around 3.0% of GDP. 2014 10,500 70.0 (yoy) 10,000 • Exchange rate decline to Rp.11.875 by the end of 60.0 June. While international reserves reached USD107.7 9,500 50.0 1.12 Billion, cover 5.5 months of imports and government 1.03 1.07 1.03 9,000 40.0 0.55 0.75 0.63 external debt service, which are above international 0.12 0.23 0.43 8,500 30.0 99.4 102.6 107.7 0.37 0.08 standard of 3 months. 0.09 8,000 20.0 -0.02 • Inflation decreased to 6.70% in June 2014 and BI Dec-13 Mar-13 June-14 -0.1 -0.03 expect that inflation will be in the range of 4.5% +/- 1% -0.35 Reserved Assets (USD Bn) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec by the end of 2014. ExchangeRate (IDR/USD) 4 Source:BPS, BI & Bloomberg

IndonesiaBanking Industry BI Rate, Upper & Lower Band Loan Growth & NPL 24.6% 10.25% 23.1% 22.8% 21.6% 9.25% 19.45% 19.02% 17.86% 3.31% 7.50% 7.25% 7.50% 7.50% 7.50% 7.25% 7.50% 7.50% 7.50% 8.25% LoanGrowth 7.00% 7.00% 6.75% 6.75% 6.75% 6.50% 2.56% NPL 6.00% 6.00% 5.75% 5.75% 6.00% 10.0% 2.17% 2.18% 2.05% 2.00% 5.50% 5.75% 5.75% 5.75% 1.87% 1.77% 5.50% 4.50% 4.50% Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Mar 14 Apr-14 May-14 4.00% 4.00% 4.25% CAR 2008 2009 2010 2011 2012 Q1 '13 1H '13 9M'13 2013 Q1 '14 1H '14 19.77% 19.33% 18.13% 17.43% BI Rate upper band lower band • For consecutive 9 months, BI had maintained its rate at 7.50%, with lending rate and deposit facilityrate of 7.50% and 5.75%, respectively. • Loan growth was slowing down as expected by BI and this trend will continue till the end of 2014. 15.60% 16.36% 18.17% 17.76% • Industry’s CAR keep increasing to anticipate Dec 12 Dec 13 Mar 14 Apr-14 BASEL 3 implementation. Tier-1 CAR CAR 5

Q2 2014 – a maintained performance 6

Financial Updates 7

Financial Highlights Q1'13 1H'13 9Mo'13 FY 2013 Q1'14 1H'14 ∆ yoy Asset/Liabilities Total Assets (IDR Billion) 511,977 538,301 569,146 606,370 595,741 621,978 15.5% Total Loans (Gross) (IDR Billion) 361,250 391,762 413,263 430,618 432,436 459,121 17.2% Total Deposits (IDR Billion) 403,089 438,966 454,730 486,366 470,017 488,451 11.3% Asset Quality NPL (gross) 1.97% 1.81% 1.77% 1.55% 1.78% 1.97% NPL (nett) 0.46% 0.41% 0.43% 0.31% 0.47% 0.57% Liquidity LDR 89.62% 89.25% 90.88% 88.54% 92.01% 94.00% Reserve Requirement - IDR 8.02% 8.02% 8.02% 8.02% 8.02% 8.02% Reserve Requirement - FX 8.00% 8.49% 8.04% 8.00% 8.00% 8.05% Profitability Net Profit (IDR Billion) 5,007 10,012 15,228 21,160 5,902 11,725 17.1% NIM 8.19% 8.08% 8.25% 8.55% 9.06% 8.93% ROE 32.63% 33.05% 33.24% 34.11% 30.95% 31.04% ROA before tax 4.76% 4.62% 4.65% 5.03% 5.02% 4.92% Cost of Fund (CoF) 3.54% 3.55% 3.58% 3.71% 3.94% 4.08% Cost Efficiency Ratio (CER) 44.22% 43.85% 44.33% 42.13% 41.80% 40.76% Operating Expense to Operating Income 60.46% 60.91% 61.54% 60.58% 62.96% 63.58% Capital Tier1 CAR 16.90% 16.41% 16.24% 16.13% 17.46% 17.30% Total CAR 17.91% 17.35% 17.13% 16.99% 18.27% 18.10% Note: Since FY 2010, figures are PSAK50 &55 compliant 8 Numbers statedinthis presentationare bank only

Balance Sheet ... Strong capital to support growth... (IDR Billion) Description Mar 13 Jun 13 Sep 13 2013 Mar 14 Jun 14 g(YoY) g(QoQ) Total Assets 511,977 538,301 569,146 606,370 595,741 621,978 15.5% 4.4% - Gross Loans 361,250 391,762 413,263 430,618 432,436 459,121 17.2% 6.2% - Government Bonds (Recap) 4,313 4,308 4,310 4,511 4,315 4,303 -0.1% -0.3% - Other Earnings Assets 104,187 92,920 103,528 115,168 105,204 100,907 8.6% -4.1% Total Earning Assets 469,750 488,990 521,100 550,297 541,955 564,331 15.4% 4.1% Earning Assets Provision (14,737) (14,636) (14,708) (15,072) (15,432) (16,422) 12.2% 6.4% Total Earning Assets (net) 455,013 474,354 506,393 535,225 526,523 547,909 15.5% 4.1% Total Non Earning Assets 56,964 63,946 62,753 71,145 69,218 74,069 15.8% 7.0% Total Liabilities & S.E 511,977 538,301 569,146 606,370 595,741 621,978 15.5% 4.4% Total Customer Deposits 403,089 438,966 454,730 486,366 470,017 488,451 11.3% 3.9% - Demand Deposits 57,937 81,326 75,787 78,017 71,026 78,182 -3.9% 10.1% - Saving Deposits 172,489 176,167 186,575 210,004 199,949 201,690 14.5% 0.9% - Time Deposits 172,663 181,473 192,368 198,346 199,042 208,579 14.9% 4.8% Other Interest Bearing Liabilities 18,774 10,674 19,955 19,873 19,175 22,518 111.0% 17.4% Non Interest Bearing Liabilities 25,769 20,391 21,246 21,261 27,962 26,442 29.7% -5.4% Tier I Capital 58,216 60,537 62,937 65,964 72,909 75,801 25.2% 4.0% Total Shareholder's Equity 64,345 68,270 73,214 78,870 78,587 84,567 23.9% 7.6% Note: Since FY 2010, figures are PSAK50 &55 compliant 9 Numbers statedinthis presentationare bank only

Loan – Mix and Growth Loans Outstanding – by business segment Composition – by business segment (%) (IDR Trillion) 459.1 432.4 430.6 100.0 413.3 48.2 10.1 10.5 10.9 10.7 11.1 10.6 391.8 45.9 47.7 44.4 400.0 361.2 39.7 16.7 14.5 16.0 16.1 16.0 17.4 39.3 79.7 62.5 69.4 4.7 19.5 4.4 4.6 4.7 4.8 66.5 20.3 4.2 19.1 65.3 19.8 18.4 57.9 89.9 21.8 20.1 19.8 20.0 19.9 19.6 86.8 94.0 16.5 82.0 78.4 50.0 71.5 200.0 17.7 17.5 17.3 17.5 16.9 17.2 77.6 75.5 73.9 72.2 67.9 63.8 31.4 31.4 31.1 31.2 31.0 30.7 112.2 122.1 128.2 132.1 135.8 144.2 0.0 0.0 Mar 13 Jun 13 Sep 13 2013 Mar 14 Jun 14 Mar 13 Jun 13 Sep 13 2013 Mar 14 Jun 14 Micro Consumer Small Commercial Medium SoE Corporate Non-SoE Total Loan Micro loan, with the growth of 18.1% (yoy), higher than the total loan growth, is maintained as the • largest component of loan portfolio, 31.4%. Note: Since FY 2010, figures are PSAK50 &55 compliant 10 Numbers statedinthis presentationare bank only

Loan Quality Non Performing Loan - gross (%) Mar 14 Jun 14 NPL (%) Mar 13 Jun 13 Sep 13 2013 Micro 1.29 1.22 1.23 1.04 1.33 1.41 Consumer 1.69 1.56 1.50 1.40 1.50 1.50 Small Commercial 4.63 4.19 3.94 3.13 3.85 4.13 Medium 5.47 4.71 5.00 4.38 5.27 6.36 SoE 0.00 0.00 0.00 0.00 0.00 0.00 Corporate 0.97 0.96 0.94 0.87 0.92 1.84 Total 1.97 1.81 1.77 1.55 1.78 1.97 As expected, Total NPL increased to 1.97%, from 1.81% in Jun 2013. • Micro NPL shows a slight increase to 1.41%, still within manageable range • Note: Since FY 2010, figures are PSAK50 &55 compliant 11 Numbers statedin this presentationare bank only

Deposits (%) Deposit Composition, COF & BI Rate Deposits: Trend (IDR Trillion) 488.4 486.4 100% 17.00% 470.0 454.7 439.0 90% 15.00% 403.1 41.3% 40.8% 42.8% 42.3% 42.3% 42.7% 80% 13.00% 198.3 208.6 199.0 192.4 70% 181.5 11.00% 172.7 Time Deposit 60% HighCost 7.25% 9.00% 7.50% 7.50% 7.50% Savings LowCost 50% 5.75% 7.00% 6.00% Demand Deposit COF 40% 210.0 201.7 199.9 176.2 186.6 TOTAL 5.00% BI Rate 172.5 30% 3.94% 4.08% 3.54% 3.58% 3.71% 3.00% 3.55% 20% 81.3 1.00% 75.8 78.0 78.2 71.0 10% 57.9 57.2% 58.7% 57.7% 59.2% 57.7% 57.3% 0% -1.00% Mar 13 Jun 13 Sep 13 2013 Mar 14 Jun 14 Mar 13 Jun 13 Sep 13 2013 Mar 14 Jun 14 Saving • CASA maintained at YoY Saving Account Growth YoY Saving Growth: BRI vs Industry stable level of 57.3% • Amount of saving 20.6% 20.7% 19.3% 19.2% consistently shows 17.6% 17.9% 15.9% 15.6% 15.0% 15.2% higher yoy growth 14.5% 17.8% 13.1% compare to industry. 14.7% 13.5% • In Jun’14, yoy growth 12.6% 10.4% 10.1% of saving account is higher than previous BRI Industry quarters. Mar'13 Jun'13 Sep'13 Des'13 Mar'14 Jun'14 Mar'13 Jun'13 Sep'13 Dec'13 Mar'14 Jun'14 Note: Since FY 2010, figures are PSAK50 &55 compliant 12 Numbers statedinthis presentationare bank only