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

2

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

Macro Economy

3

4

Indonesia Macro Economy

• GDP growth in Q1 2014 was 5.21% yoy, lower than
• expected. By the end of 2014, GDP growth is targeted

at 5.1 – 5.5% revised down from 5.5-5.9%. This economy growth still be supported by domestic economy.

• As of May’14, trade balance shows a thin surplus of USD
• 70million. However, by increasing import, it is expected

a trade balance deficit in Q2’14. While for current account deficit, it is projected at around 3.0% of GDP.

• Exchange rate decline to Rp.11.875 by the end of
• June. While international reserves reached USD107.7

Billion, cover 5.5 months of imports and government external debt service, which are above international standard of 3 months.

• Inflation decreased to 6.70% in June 2014 and BI

expect that inflation will be in the range of 4.5% +/- 1% by the end of 2014.

Source:BPS, BI & Bloomberg

GDP GDP Composition (%) Reserved Assets & Exchange Rate

23.88 27.03 30.66 33.53 36.50

4.63% 6.22% 6.49% 6.23% 5.78% 5.21% 2009 2010 2011 2012 2013 Mar '14 GDPPer Capita (in Rp Mn) GDPGrowth

• 0.16
• 0.07
• 0.29

0.13

• 1.7
• 0.53
• 0.88
• 2.33

0.07

• 0.81

0.02 0.79 1.53

• 0.44

0.84 0.65

• 1.96

0.07 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Trade Balance (USD.bn) Export Import

GDP Q1 2014 5.21% Trade Balance (USD billion) Inflation (%)

1.03 0.75 0.63

• 0.1
• 0.03

1.03 3.29 1.12

• 0.35

0.09 0.12 0.55 1.07 0.37 0.08

• 0.02

0.23 0.43

8.22 7.75 7.327.25 7.32 6.70 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 (mom) 2014 (mom) 2014 (yoy)

99.4 102.6 107.7

12,171 11,361 11,875

20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 110.0 120.0

8,000 8,500 9,000 9,500 10,000 10,500 11,000 11,500 12,000 12,500

Dec-13 Mar-13 June-14 Reserved Assets (USD Bn) ExchangeRate (IDR/USD) Consumption 56.39 Import

• 25.03

Export 23.67 Investment 30.8 Govt. Expenditure 6.76

IndonesiaBanking Industry

5 BI Rate, Upper & Lower Band Loan Growth & NPL CAR

• 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.

• Industry’s CAR keep increasing to anticipate

BASEL 3 implementation.

9.25% 6.50% 6.00% 6.00% 5.75% 5.75% 6.00% 7.25% 7.50% 7.50% 7.50% 10.25% 7.50% 7.00% 7.00% 6.75% 6.75% 6.75% 7.25% 7.50% 7.50% 7.50% 8.25% 5.50% 4.50% 4.50% 4.00% 4.00% 4.25% 5.50% 5.75% 5.75% 5.75% 2008 2009 2010 2011 2012 Q1 '13 1H '13 9M'13 2013 Q1 '14 1H '14

BI Rate upper band lower band 15.60% 16.36% 18.17% 17.76% 17.43% 18.13% 19.77% 19.33% Dec 12 Dec 13 Mar 14 Apr-14 Tier-1 CAR CAR 10.0% 22.8% 24.6% 23.1% 21.6% 19.45% 19.02% 17.86% 3.31% 2.56% 2.17% 1.87% 1.77% 2.00% 2.05% 2.18% Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Mar 14 Apr-14 May-14 LoanGrowth NPL

6

Q2 2014 – a maintained performance

Financial Updates

7

8

Financial Highlights

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

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%

9

(IDR Billion)

Balance Sheet

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

... Strong capital to support growth...

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%

10

Composition – by business segment (%) Loans Outstanding – by business segment

(IDR Trillion)

Loan – Mix and Growth

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only 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%.

31.1 31.2 31.0 30.7 31.4 31.4 17.7 17.3 17.5 17.2 17.5 16.9 19.8 20.0 19.9 21.8 20.1 19.6 4.6 4.7 4.8 4.7 4.4 4.2 16.0 16.7 16.1 14.5 16.0 17.4 10.9 10.1 10.7 11.1 10.6 10.5

Mar 13 Jun 13 Sep 13 2013 Mar 14 Jun 14 112.2 122.1 128.2 132.1 135.8 144.2 63.8 67.9 72.2 73.9 75.5 77.6 71.5 78.4 82.0 94.0 86.8 89.9 16.5 18.4 19.8 20.3 19.1 19.5 57.9 65.3 66.5 62.5 69.4 79.7 39.3 39.7 44.4 47.7 45.9 48.2

361.2 391.8 413.3 430.6 432.4 459.1

Mar 13 Jun 13 Sep 13 2013 Mar 14 Jun 14

11

Non Performing Loan - gross (%)

Loan Quality

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedin this presentationare bank only

NPL (%) Mar 13 Jun 13 Sep 13 2013

Mar 14 Jun 14

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

12

Deposits

Deposits: Trend Deposit Composition, COF & BI Rate

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

(%)

(IDR Trillion)

57.9 81.3 75.8 78.0 71.0 78.2 172.5 176.2 186.6 210.0 199.9 201.7 172.7 181.5 192.4 198.3 199.0 208.6

403.1 439.0 454.7 486.4 470.0 488.4

Mar 13 Jun 13 Sep 13 2013 Mar 14 Jun 14 Time Deposit Savings Demand Deposit TOTAL

19.3% 19.2% 15.6% 15.2% 17.9% 20.7% Mar'13 Jun'13 Sep'13 Des'13 Mar'14 Jun'14

20.6% 13.1% 17.6% 15.0% 15.9% 14.5%

17.8% 13.5% 14.7% 12.6% 10.4% 10.1%

Mar'13 Jun'13 Sep'13 Dec'13 Mar'14 Jun'14

BRI Industry

YoY Saving Account Growth YoY Saving Growth: BRI vs Industry

Saving

• CASA maintained at

stable level of 57.3%

• Amount of saving

consistently shows higher yoy growth compare to industry.

• In Jun’14, yoy growth
• f saving account is

higher than previous quarters.

57.2% 58.7% 57.7% 59.2% 57.7% 57.3% 42.8% 41.3% 42.3% 40.8% 42.3% 42.7% 3.54% 3.55% 3.58% 3.71% 3.94% 4.08% 5.75% 6.00% 7.25% 7.50% 7.50% 7.50%

• 1.00%

Mar 13 Jun 13 Sep 13 2013 Mar 14 Jun 14

HighCost LowCost COF BI Rate

13

(IDR Billion)

Income Statement - Highlights

... Much stronger income generation from operations...

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only Note: *) Detail on theFee & Other Operating Incomeon page 34 **)annualized

Description 2013 1H'13 1H'14 g(YoY)

Q1'14 Q2'14

g(QoQ)

Interest Income 57,301 26,020 33,749 29.7% 16,456 17,293 5.1% Interest Expense (14,395) (6,560) (9,341) 42.4% (4,373) (4,968) 13.6% Net Interest Income 42,906 19,460 24,408 25.4% 12,084 12,325 2.0% Fee & Other Opr. Income 8,165 3,593 3,845 7.0% 1,805 2,040 13.1% Gross Operating Income 51,071 23,053 28,254 22.6% 13,888 14,365 3.4% Other Operating Expenses (21,284) (10,018) (11,466) 14.4% (6,014) (5,452)

• 9.4%

Pre Provision Operating Profit 29,788 13,035 16,788 28.8% 7,874 8,913 13.2% Provision (3,916) (1,457) (3,094) 112.3% (1,108) (1,987) 79.4% Non Operating Profit/Loss 1,776 574 1,109 93.1% 605 504

• 16.6%

Profit Before Tax n Minor. Int. 27,648 12,152 14,803 21.8% 7,372 7,431 0.8% Net Profit 21,160 10,012 11,725 17.1% 5,902 5,823

• 1.3%

EPS*) 857.8 811.7 950.6 17.1% 957.0 944.2

• 1.3%
• Strong growth of Interest income still continued in Q2’14.
• Manageable operating expense, shows by lower cost compare to Q1’14

Income Statement

YoY Growth – Pre Provision Operating Profit YoY Growth – Net Interest Income

4.7% 17.8% 13.4% 16.6% 21.0% 25.2% 25.4% Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14

• During increasing rate environment, NII shows high growth of 25.4% (YoY)
• Operating efficiency supported PPOP increase of 28% (YoY)

14.54% 10.41% 12.6% 19.0% 22.4% 28.8% Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

14

Business Updates

15

Micro Banking

16

17

Micro Loan Micro KUR

Micro Banking – Loan

Performance Migration of Micro KUR to Micro Loan

(IDR Trillion) Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

Micro Borrower

(Million) 5.1 5.3 5.5 6.5 6.0 6.9

2010 2011 2012 2013 Jun'13 Jun'14 54.1 75.4 90.2 106.8 132.1 122.1 144.2 2009 2010 2011 2012 2013 Jun'13Jun'14

3.4 5.7 11.2 15.1 20.8 18.5 23.6

1.3 1.4 1.9 2.2 2.6 2.4 2.8

2009 2010 2011 2012 2013 Jun'13Jun'14

Outstanding (IDR Trillion) Borrowers (in Million) 2.22 4.23 5.39 7.8 12.1 9.9 14.6

301 417 531 684 842 766 921

2 4 6 8 10 12 14 16 100 200 300 400 500 600 700 800 900 1000

2009 2010 2011 2012 2013 Jun'13 Jun'14

Plafond (IDR Trillion) Borrowers (in Thousand)

• Total MicroLoan and KUR increased 18.1% (yoy), supported by

growth in both micro KUR and micro loan

• Number of borrower in Microreaching 6.9 millionin Q2-

2014, increased around 900 thousand borrowers from Q2-2013

• Migrationof micro KUR borrower to commercial micro loan keep

continuing, reaching 921 thousand with plafond of Rp 14.6 Trillionin Q2-2014. MicroKUR NPL is positioned at 2.11%.

18 Micro Funding, providing liquidity from stable core funding

Deposit Micro Deposit Composition

Micro Banking - Deposit

Jun’13

(IDR Trillion)

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only Demand Deposit Time Deposit Saving

Jun’14

88.0% 1.0% 11.0% 87.3% 1.1% 11.6% 75.5 90.0 107.5 126.6 146.2 126.3 146.4 2009 2010 2011 2012 2013 Jun'13 Jun'14

• Micro saving with yoy growth of around 15%

dominates total Micro’s deposit.

• As of Jun’14, Micro saving composition is

87.3% of Total Deposit

TerasBRI - Performance

Teras BRI - more accessible, getting closer to customers

Micro Banking – Teras BRI

TerasBRI - Contribution to Micro Loan & Deposit

19

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

IDR Trillion

Loan Deposit TerasBRI and mobile TerasBRI are the arm-length of conventional micro outlet, designed to develop the market and protect the market from competitors. TerasBRI continuously shows strong performance with loan growth of 45.8% and deposit of 71.4% yoy.

1.0 2.9 5.3 10.0 8.3 12.1 0.3 1.0 2.3 5.1 2.8 4.8 617 1,304 2,128 2,671 2,356 2,907

• 500

1,000 1,500 2,000 2,500 3,000

(1.0) 1.0 3.0 5.0 7.0 9.0 11.0 13.0

2010 2011 2012 2013 Jun'13 Jun'14 Loan Deposit # of Teras BRI 1.3% 3.2% 5.0% 7.6% 6.8% 8.4% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%

2010 2011 2012 2013 Jun'13Jun'14

0.3% 0.9% 1.8% 3.5% 2.2% 3.3%

2010 2011 2012 2013 Jun'13 Jun'14

Consumer Loans

20

Consumer Loan

Trend (IDR Trillion) Composition

Salary Based Loan 77.1%

Vehicle Loan 3.5% Mortgage 17.2%

Other 2.2%

Consumer loan grew 14.3% (yoy) with salary based loan portion, 77.1%, maintained as the biggest part of BRI’s consumer loan

Salary Based Loan 79.6% Other 2.5% Mortgage 14.6% Vehicle Loan 3.3%

Jun 2013 Jun 2014

34.2 41.1 43.8 49.0 57.5 54.0 59.8 6.9 10.3 12.0 12.5 16.4 13.8 17.8 41.1 51.4 55.8 61.5 73.9 67.9 77.6 2009 2010 2011 2012 2013 Jun'13 Jun'14 Salary Based Loan Other Consumer

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

21

Small Commercial & Medium Loans

22

57.2 62.4 67.6 75.6 94.0 78.4 89.9

4.21% 5.11% 4.53% 3.75% 3.13% 4.19% 4.13%

2009 2010 2011 2012 2013 Jun-13 Jun-14 Total Loan NPL 14.9 13.8 13.8 16.5 20.3 18.4 19.5

12.31% 6.90% 7.11% 5.09% 4.38% 4.71% 6.36%

2009 2010 2011 2012 2013 Jun-13 Jun-14 Total Loan NPL

23

Small Commercial & Medium Loans

Small Commercial Medium

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

(IDR Trillion) (IDR Trillion)

Slower loan growth to focus on loan restructuring, small commercial grew at 14.7% (YoY) and Medium grew at 5.7% (YoY)

SoE & Corporate Loans

24

25

SOE & Corporate Loan

Growth Trend (IDR Trillion) Trickle Down Business

4.17 6.30

Jun'13 Jun'14 1.93

2.89

Jun'13 Jun'14 Loans from Corp & SOE Customers (IDR Trillion) Plafond Outstanding

By Business Segment Corporate Loans

Agribusiness 37.6% Industry 9.6% Utilities, Infras tructure& Transportation 32.6% Mining, Oil & Gas 12.5% Others 7.8%

SOE Loans

Agribusiness 39.6% Industry 28.7% Utilities, Infrast ructure& Transportation 12.9% Mining, Oil & Gas 8.3% Others 10.4%

• Based on business segment, the biggest portions
• f SOE are disburse to Agribusiness and

Infrastructure sector whilefor Corporate is to Agribusinesssector

• The objective in developing Corporate and SOE

loans is to provide business opportunities for Small & Medium segment showed in the increasing plafond and outstanding of loans s, as it trickled down from Corporate and SOE customers.

Yoy 51.2% Yoy 50.1%

40.5% 37.8% 40.0% 43.3% 39.6% 37.8% 37.3% 59.5% 62.2% 60.0% 56.7% 60.4% 62.2% 62.3% 38.3 43.9 56.2 87.8 110.2 105.0 127.9 2009 2010 2011 2012 2013 1H'13 1H'14

SOE Corporate Total Corp +SOE Loan Jun’13 Jun’14

Fee Based Income

• Growing Presence of E-Banking -

26

1,359.7 61.4% 276.7 12.5% 154.5 7.0% 219.6 9.9% 50.8 2.3% 104.0 4.7% 50.6 2.3% Deposit Adm. Fee e-Banking Related Fee

• LoanAdm. Fee

Trade Finance Credit Card PaymentService Others

27

Fee Based Income - composition

Jun 2013 Jun 2014

• E-banking Related Fees increased significantly, 55.9%

yoy, raising its portion from 12.5% to 16.1% of the total Fee Income.

• Deposit administration fee still contribute the biggest

part of fee-based income, as BRI has large number of customer accounts

Fee Based Income

(Nominal in billion)

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

IDR Trillion

E-banking related fee grew 45.4% yoy

E-banking related fee grew 55.9% yoy

2.1 2.8 3.4 3.9 4.9 2.2 2.7 2009 2010 2011 2012 2013 Jun'13Jun'14

YoY g = 20.8%

60.0 2.2% 109.7 4.1% 76.6 2.9% 202.5 7.6% 145.5 5.4% 431.2 16.1% 1,650.6 61.7%

1H’13 1H’14

308.4 377.3 673.6 276.7 431.2 2011 2012 2013 1H131H14

28

ATM SMS Banking InternetBanking

# of Users # of Transaction Transaction Value

YOY Growth 63.6% YOY Growth 247.2% YOY Growth 123.8% YOY Growth 51.7% YOY Growth 74.2% YOY Growth 156.7%

E-Banking Performance – a growing presence…

E-banking related fee

(IDR Billion)

YOY Growth 34.7% YOY Growth 76.5% YOY Growth 295.1%

YOY Growth 55.9%

(In Million) (In IDR Trillion) (In Million)

Ample opportunity to grow fee based income coming from e-banking, as BRI has huge base number of customer accounts (As of Jun’14, >44 million deposit accounts)

2.8 9.3 26.8 7.4 25.7 '11 '12 '13 1H13 1H14 6.9 14.7 23.9 10.2 22.8 '11 '12 '13 1H131H14 0.16 0.37 1.03 0.64 1.64 '11 '12 '13 1H131H14 1.60 3.40 5.87 4.28 7.46 '11 '12 '13 1H131H14 25.4 46.6 84.0 34.9 61.6 '11 '12 '13 1H131H14 2.8 7.7 21.0 7.7 30.4 '11 '12 '13 1H13 1H14 482.7 789.2 1,150. 7 514.7 693.2 '11 '12 '13 1H131H14 249.6 429.2 757.8 277.4 453.9 '11 '12 '13 1H13 1H14 10.5 17.0 19.4 18.0 27.3 '11 '12 '13 1H13 1H14

Key Take Aways

29

Key Take Aways

30

• Micro loan grew 18.1% yoy, faster than total loan growth which stood at 17.2%

yoy

• NPL at 1.97%, still within expectation
• Composition of CASA stable at 57.3%, driven by saving growth of 14.5% yoy
• FBI coming from E-Banking recorded at steady growth of 55.9% yoy, increasing its

share to Total FBI to 16.1%

• YoY performance comparison:
• BetterNIM during increasing rate environment (8.08% vs 8.93%)
• More efficient operation with better CER (43.85% vs 40.76%)
• Stronger internally generated capital (Tier 1 CAR: 16.41% vs 17.30%)

Appendixes

31

Financial Performance Others

Financial Performance

32

33

Financial Ratios

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

Description Q1'14 1H'14

Cost of Fund (COF) 3.54% 3.55% 3.58% 3.71% 3.94% 4.08% Loan to Deposit Ratio 89.62% 89.25% 90.88% 88.54% 92.01% 94.00% Net Interest Margin (NIM) 8.19% 8.08% 8.25% 8.55% 9.06% 8.93% NPL ratio - Gross 1.97% 1.81% 1.77% 1.55% 1.78% 1.97% NPL ratio - Nett 0.46% 0.41% 0.43% 0.31% 0.47% 0.57% CKPN to Earning asset 3.30% 3.20% 2.98% 2.90% 2.95% 3.06%

• Opr. Expense to Opr. Income

60.46% 60.91% 61.54% 60.58% 62.96% 63.58% Cost Efficiency Ratio (CER) 44.22% 43.85% 44.33% 42.13% 41.80% 40.76% Tier I 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% Return on Assets (ROA) - b.t 4.76% 4.62% 4.65% 5.03% 5.02% 4.92% Return on Assets (ROA) - a.t 3.89% 3.80% 3.78% 3.85% 4.02% 3.90% Return on Equity (ROE) - Tier I 32.63% 33.05% 33.24% 34.11% 30.95% 31.04% Return on Equity (ROE) - B/S 30.28% 30.07% 29.80% 30.10% 29.30% 28.73%

• Min. Reserve Requirement

8.02% 8.02% 8.02% 8.02% 8.02% 8.02% Net Open Position 6.45% 5.15% 3.48% 3.15% 4.44% 2.87%

FY'13 Q1'13 1H'13 9Mo'13

Fee & Other Operating Income

IDR Billion

IDR Billion

Sources of Income

34 As of Jun 2014, Interest Income contributed 87.2% of total income

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

Interest Income

Interest Income from loans contribute 91.5% of total interest income (or 79.8% of total income)

IDR Billion

Total Income

Total Income 2013 1H'13 1H'14 g(YoY) Q1'14 Q2'14 g(QoQ) Interest income

57,301 26,020 33,749 29.7% 16,456 17,293 5.1%

Fee & Other Opr.Income

8,165 3,593 3,845 7.0% 1,805 2,040 13.1%

Non Operating Income (net)

1,776 574 1,109 93.1% 605 504

• 16.6%

Total Income

67,242 30,187 38,703 28.2% 18,866 19,838 5.2%

Interest Income 2013 1H'13 1H'14 g(YoY) Q1'14 Q2'14 g(QoQ) Interest from Loans

51,733 23,380 30,877 32.1% 14,929 15,948 6.8%

• Int. from Other Earning Assets

5,567 2,640 2,872 8.8% 1,528 1,345

• 12.0%

Total Interest Income

57,301 26,020 33,749 29.7% 16,456 17,293 5.1%

Fee & Other Operating Income 2013 1H'13 1H'14 g(YoY) Q1'14 Q2'14 g(QoQ) Gain Fr Value Increase of Securities and Govt. Recap Bonds

83 17 55 231.9% 11 44 284.0%

Fees and Commissions

4,860 2,216 2,676 20.8% 1,244 1,432 15.2%

Gain fr Forex

455 181 68

• 62.4%
• 68

Recovery

1,932 921 884

• 4.0%

396 489 23.5%

Others

835 258 162

• 37.4%

154 8

• 95.0%

Total Fee & Other Opr. Income

8,165 3,593 3,845 7.0% 1,805 2,040 13.1%

IDR Billion

Other Operating Expenses

35

Note: Since FY 2010, figures are PSAK50 &55 compliant Numbers statedinthis presentationare bank only

Other Operating Expenses 2013 1H'13 1H'14 g(YoY) Q1'14 Q2'14 g(QoQ) Personnel

11,748 5,810 6,458 11.1% 3,146 3,311 5.2%

General and Administration

7,103 2,975 3,708 24.6% 1,737 1,970 13.4%

Losses fr decrease of Securities

• and Govt. Bonds value
• Losses from forex transaction
• 212

(212)

• 200.0%

Premium Paid on Govt Guarantees

885 423 499 17.8% 249 249 0.0%

Promotion

652 278 238

• 14.4%

105 133 26.0%

Others

897 532 564 6.1% 564

• 100.0%

Total Other Opr. Expenses

21,284 10,018 11,466 14.4% 6,014 5,452

• 9.4%

Balance Sheet (consolidated)

36

Note:Since FY 2010, figures are PSAK50 &55 compliant

IDR Billion

Description 2009 2010 2011 2012 2013 Jun 13 Jun 14 YoY Total Assets 316,947 404,286 469,899 551,337 626,183 556,459 643,484 15.6%

• Gross Loans

208,123 252,489 294,515 362,007 448,345 407,969 477,326 17.0%

• Government Bonds (Recap)

15,027 13,626 8,996 4,316 4,511 4,308 4,303

• 0.1%
• Other Earnings Assets

75,913 113,580 129,136 132,720 115,690 93,471 102,352 9.5% Total Earning Assets 299,063 379,696 432,647 499,042 568,546 505,748 583,981 15.5% Earning Assets Provision (11,665) (14,121) (16,092) (14,916) (15,419) (14,985) (16,760) 11.8% Total Earning Assets (net) 287,398 365,575 416,555 484,126 553,127 490,764 567,221 15.6% Total Non Earning Assets 29,549 38,710 53,345 67,211 73,055 65,695 76,264 16.1% Total Liabilities & S.E 316,947 404,286 469,899 551,337 626,183 556,459 643,484 15.6% Total Customer Deposits 255,928 333,652 384,264 450,166 504,281 455,051 508,142 11.7%

• Demand Deposits

50,094 77,364 76,779 80,075 79,337 82,355 79,583

• 3.4%
• Saving Deposits

104,463 125,990 154,133 184,365 212,997 178,533 205,051 14.9%

• Time and Certificate Deposits

101,371 130,298 153,353 185,726 211,948 194,163 223,508 15.1% Other Interest Bearing Liabilities 21,284 17,297 19,361 15,784 20,896 11,868 23,180 95.3% Non Interest Bearing Liabilities 12,477 16,663 16,454 20,505 21,678 20,918 27,114 29.6% Tier I Capital 21,057 28,135 38,809 52,325 67,270 61,572 76,993 25.0% Total Shareholder's Equity 27,257 36,673 49,820 64,882 79,327 68,622 85,048 23.9%

Income Statement (consolidated)

37

Note:Since FY 2010, figures are PSAK50 &55 compliant

*) annualized

IDR Billion

Description 2009 2010 2011 2012 2013 1H'13 1H'14 YoY

Interest Income 35,334 44,615 48,164 49,610 59,461 27,023 35,034 29.6% Interest Expense (12,285) (11,727) (13,737) (13,127) (15,355) (6,995) (10,008) 43.1% Net Interest Income 23,049 32,889 34,427 36,484 44,106 20,028 25,026 25.0% Fee & Other Opr. Income 3,270 5,545 5,776 8,390 8,348 3,715 3,891 4.7% Gross Operating Income 26,319 38,433 40,203 44,873 52,455 23,744 28,917 21.8% Other Operating Expenses (11,960) (16,114) (17,086) (19,491) (22,381) (10,519) (12,056) 14.6% Pre Provision Operating Profit 14,360 22,319 23,117 25,382 30,074 13,224 16,861 27.5% Provision (5,799) (7,917) (5,533) (2,700) (3,946) (1,492) (3,134) 110.0% Non Operating Profit/Loss 1,331 506 1,172 1,177 1,782 573 1,111 94.1% Profit Before Tax n Minor. Int. 9,891 14,908 18,756 23,860 27,910 12,305 14,839 20.6% Net Profit 7,308 11,472 15,088 18,687 21,354 10,155 11,750 15.7% EPS *) 304.8 478.4 628.9 757.5 865.6 823.3 952.6 15.7%

Others

38

RO Banda Aceh

• RO. Banjarmasin
• RO. Makassar
• RO. Manado
• RO. Palembang
• RO. Jakarta 1, 2, and 3
• RO. Denpasar
• RO. Bandung
• RO. Semarang
• RO. Surabaya & Malang

RO Medan RO Pekanbaru

• RO. Padang

Regional Office Distribution

• RO. Yogyakarta
• RO. Papua

*Total working units are including 3 overseas offices Regional Offices Branch Offices Sub-Branch Offices BRI Unit Teras BRI

The Most Extensive and Largest Networks

Cash Counter

39

• RO. Lampung

Outlets 2009 2010 2011 2012 2013 Q2 - 2013 Q2 - 2014 YoY Head Offices 1 1 1 1 1 1 1

• Regional Offices

17 18 18 18 18 18 19 1 Branches 406 413 431 446 453 450 456 6 Sub Branches 434 470 502 545 565 545 566 21 BRI Units 4,538 4,649 4,849 5,000 5,144 5,019 5,149 130 Cash Offices 728 822 870 914 950 934 962 28 Teras BRI 217 617 1,304 1,778 2,206 2,002 2,441 439 Teras Mobile 100 350 465 354 466 112 Total 6,341 6,990 8,075 9,052 9,802 9,323 10,060 737 E-Channel 2009 2010 2011 2012 2013 Q2 - 2013 Q2 - 2014 YoY ATM 3,778 6,085 7,292 14,292 18,292 14,604 19,073 4,469 EDC 6,398 12,719 31,590 44,715 85,936 49,381 90,357 40,976 CDM 22 39 89 92 192 92 192 100 E-Buzz 1 2 19 42 50 45 50 5 Total 10,199 18,845 38,990 59,141 104,470 64,122 109,672 45,550

• Long Term Foreign Currency IDR

BBB-, Stable Outlook

• Short Term Foreign Currency IDR

F3

• Support Rating Floor

BBB-

• Support Rating

2

• Viability Rating

bb+

• National Long-Term Rating

AAA (idn), Stable Outlook

• Rupiah Subordinated Debt

A+ (idn)

• Senior Unsecured Notes

BBB-

• Outlook

Stable

• Long Term Foreign Issuer Credit

BB+

• Long Term Local Issuer Credit

BB+

• Short Term Foreign Issuer Credit

B

• Short Term Local Issuer Credit

B

• Outlook

Stable

• Bank Deposit

Baa3/P-3

• Bank Financial Strength

D+

• Baseline Credit Assessment

(Ba1)

• Adjusted Baseline Credit Assessment

(Ba1)

• Senior Unsecured Notes

Baa3

• National Rating

id AAA, Stable Outlook Standard and Poors BB+, Stable Outlook Fitch BBB-, Stable Outlook Moody's Baa3, Stable Outlook Japan Credit Rating Agency BBB-, Stable Outlook Indonesia Sovereign Ratings MOODY'S PEFINDO FITCH STANDARD AND POORS

BRI Rating Country Rating

Ratings

40

Baa3 Baa3

*) percentage from public holding

Shareholders Composition Stock Price: Trend

Shareholders& Stock Performance

Shareholder 2003 2009 2010 2011 2012 2013 Q1’14 Q2’14 Government 59.50% 56.77% 56.75% 56.75% 56.75% 56.75% 56.75% 56.75% Public 40.50% 43.23% 43.25% 43.25% 43.25% 43.25% 43.25% 43.25%

Foreign *) 79.10% 84.16% 84.25% 83.93% 82.84% 78.94% 83.83% 84.00% Domestic *) 20.90% 15.84% 15.75% 16.07% 17.16% 21.06% 16.17% 16.00%

BBRI Stock is member of:

• JCI Index
• LQ45 Index (Top 45

liquid stocks)

• SRI KEHATI Index (a UN

affiliated biodiversity Index of 25 stocks) 41

• 2,000

4,000 6,000 8,000 10,000 12,000 14,000

• 50

100 150 200 250 300 350 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Harga Volume

BBRI

volume Price

5 Years Data…

42

5 Years Data…

43

Balance Sheet

Description 2009 2010 2011 2012 2013 Q1'14 Q2'14

Total Assets 314,746 398,393 456,531 535,209 606,370 595,741 621,978

• Gross Loans

205,522 246,964 283,583 348,227 430,618 432,436 459,121

• Government Bonds (Recap)

15,027 13,626 8,996 4,316 4,511 4,315 4,303

• Other Earnings Assets

76,487 113,669 127,774 131,547 115,168 105,204 100,907 Total Earning Assets 297,037 374,259 420,353 484,089 550,297 541,955 564,331 Earning Assets Provision (11,576) (14,007) (15,869) (14,584) (15,072) (15,432) (16,422) Total Earning Assets (net) 285,461 360,252 404,484 469,505 535,225 526,523 547,909 Total Non Earning Assets 29,285 38,141 52,047 65,704 71,145 69,218 74,069 Total Liabilities & S.E 314,746 398,393 456,531 535,209 606,370 595,741 621,978 Total Customer Deposits 254,118 328,556 372,148 436,098 486,366 470,017 488,451

• Demand Deposits

49,965 77,049 75,579 78,753 78,017 71,026 78,182

• Saving Deposits

104,119 125,198 152,474 182,643 210,004 199,949 201,690

• Time Deposits

100,034 126,310 144,095 174,702 198,346 199,042 208,579 Other Interest Bearing Liabilities 20,941 16,595 18,413 14,466 19,873 19,175 22,518 Non Interest Bearing Liabilities 12,429 16,569 16,195 20,008 21,261 27,962 26,442 Tier I Capital 20,846 27,673 38,215 51,593 65,964 72,909 75,801 Total Shareholder's Equity 27,257 36,673 49,775 64,637 78,870 78,587 84,567

44

5 Years Data…

Income Statement Ratios

Description 2009 2010 2011 2012 2013 Q1'14 1H'14

Interest Income 35,071 43,971 46,949 47,922 57,301 16,456 33,749 Interest Expense (12,180) (11,449) (13,079) (12,461) (14,395) (4,373) (9,341) Net Interest Income 22,891 32,523 33,870 35,461 42,906 12,084 24,408 Fee & Other Opr. Income*) 3,257 5,458 5,524 8,166 8,165 1,805 3,845 Gross Operating Income 26,148 37,980 39,394 43,627 51,071 13,888 28,254 Other Operating Expenses (11,773) (15,648) (16,288) (18,602) (21,284) (6,014) (11,466) Pre Provision Operating Profit 14,375 22,332 23,106 25,025 29,788 7,874 16,788 Provision (5,805) (7,926) (5,532) (2,555) (3,916) (1,108) (3,094) Non Operating Profit/Loss 1,327 497 1,157 1,169 1,776 605 1,109 Profit Before Tax n Minor. Int. 9,897 14,903 18,731 23,639 27,648 7,372 14,803 Net Profit 7,308 11,472 15,083 18,521 21,160 5,902 11,725 EPS**) 296.3 465.0 611.4 750.8 857.8 957.0 950.6

Description Q1'14 1H'14

Cost of Fund (COF) 6.02% 4.90% 4.70% 3.68% 3.71% 3.94% 4.08% Loan to Deposit Ratio 80.88% 75.17% 76.20% 79.85% 88.54% 92.01% 94.00% Net Interest Margin (NIM) 9.14% 10.77% 9.58% 8.42% 8.55% 9.06% 8.93% NPL ratio - Gross 3.52% 2.78% 2.30% 1.78% 1.55% 1.78% 1.97% NPL ratio - Nett 1.08% 0.74% 0.42% 0.34% 0.31% 0.47% 0.57% CKPN to Earning asset 4.29% 4.58% 4.51% 3.43% 2.90% 2.95% 3.06%

• Opr. Expense to Opr. Income

77.66% 70.86% 66.69% 59.93% 60.58% 62.96% 63.58% Cost Efficiency Ratio (CER) 46.72% 42.22% 41.17% 43.11% 42.13% 41.80% 40.76% Tier I CAR 12.05% 12.01% 13.67% 15.86% 16.13% 17.46% 17.30% Total CAR 13.20% 13.76% 14.96% 16.95% 16.99% 18.27% 18.10% Return on Assets (ROA) - b.t 3.73% 4.64% 4.93% 5.15% 5.03% 5.02% 4.92% Return on Assets (ROA) - a.t 2.76% 3.57% 3.97% 4.04% 3.85% 4.02% 3.90% Return on Equity (ROE) - Tier I 35.22% 43.83% 42.49% 38.66% 34.11% 30.95% 31.04% Return on Equity (ROE) - B/S 28.83% 35.94% 35.10% 32.41% 30.10% 29.30% 28.73%

• Min. Reserve Requirement

5.90% 8.05% 9.33% 10.64% 8.02% 8.02% 8.02% Net Open Position 5.22% 4.45% 5.49% 3.00% 3.15% 4.44% 2.87%

2012 2013 2009 2010 2011

Loan Composition (%)

45

5 Years Data…

Loan Quality Loan Outstanding (IDR Trillion)

Micro Consumer Small Commercial Medium SoE Corporate Non-SoE Total Loan 54.1 75.4 90.2 106.8 132.1 135.8 144.2 41.1 51.4 55.8 61.5 73.9 75.5 77.6 57.2 62.4 67.6 75.6 94.0 86.8 89.9 14.9 13.8 13.8 16.5 20.3 19.1 19.5 17.4 20.4 32.0 49.8 62.5 69.4 79.7 20.9 23.5 24.3 38.0 47.7 45.9 48.2 205.5 247.0 283.6 348.2 430.6 432.4 459.1

• 200.0

2009 2010 2011 2012 2013 Mar'14 Jun'14 26.3 30.5 31.8 30.7 30.7 31.4 31.4 20.0 20.8 19.7 17.6 17.2 17.5 16.9 27.8 25.3 23.8 21.7 21.8 20.1 19.6 7.3 5.6 4.9 4.7 4.7 4.4 4.2 8.5 8.3 11.3 14.3 14.5 16.0 17.4 10.2 9.5 8.5 10.9 11.1 10.6 10.5

2009 2010 2011 2012 2013 Mar'14 Jun'14

NPL (%) 2009 2010 2011 2012 2013 Mar'14 Jun'14

Micro 1.40 1.21 1.19 1.09 1.04 1.33 1.41 Consumer 1.35 1.40 1.53 1.60 1.40 1.50 1.50 Small Commercial 4.21 5.11 4.53 3.75 3.13 3.85 4.13 Medium 12.31 6.90 7.11 5.09 4.38 5.27 6.36 SoE 0.23 0.00 0.00 0.00 0.00 0.00 0.00 Corporate 7.83 4.64 2.24 1.00 0.87 0.92 1.84 Total 3.52 2.78 2.30 1.78 1.55 1.78 1.97

46

5 Years Data…

Deposit (IDR Trillion) Deposit Composition, CoF & BI Rate (%)

50.0 77.0 75.6 78.8 78.0 71.0 78.2 104.1 125.2 152.5 182.6 210.0 199.9 201.7 100.0 126.3 144.1 174.7 198.3 199.0 208.6 254.1 328.6 372.1 436.1 486.4 470.0 488.5 2009 2010 2011 2012 2013 Mar'14 Jun'14 Demand Deposit Savings Time Deposit TOTAL 60.6% 61.6% 61.3% 59.9% 59.2% 57.7% 57.3% 39.4% 38.4% 38.7% 40.1% 40.8% 42.3% 42.7% 6.02% 4.90% 4.70% 3.68% 3.71% 3.94% 4.08% 6.50% 6.50% 6.00% 5.75% 7.50% 7.50% 7.50%

• 1.00%

2009 2010 2011 2012 2013 Mar'14 Jun'14 Low Cost High Cost COF BI Rate

PT BANK RAKYAT INDONESIA (Persero) Tbk. Investor Relations 20th floor BRI I Building Jl Jendral Sudirman Kav 44-46 Jakarta 10210 Indonesia Phone : 62 21 5752006/09, 5751952/79 Fax. : 62 21 5752010 Website : www.ir-bri.com E-mail : ir@bri.co.id

Disclaimer: This report has been prepared by PT Bank Rakyat Indonesia (Persero) Tbk (Bank BRI) independently and is circulated for the purpose of general information only. It is not intended to the specific person who may receive this report. The information in this report has been obtained from sources which we deem reliable. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this report constitute our judgment as of this date and are subject to change without prior notice. We disclaim any responsibility or liability without prior notice of Bank BRI and/or their respective employees and/or agents whatsoever arising which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither Bank BRI and/or its affiliated companies and/or their respective employees and/or agents accepts liability for any errors, omissions, negligent or

• therwise, in this report and any inaccuracy herein or omission here from which might otherwise arise.