PT Bank OCBC NISP Tbk Financial Performance First Half 2014 (Unaudited)

Transcription

1 PT Bank OCBC NISP Tbk Financial Performance First Half 2014 (Unaudited) This report is solely for the use of PT. Bank OCBC NISP Tbk. No part of it may be circulated, quoted, or reproduced for distribution outside the organization without prior written approval from PT. Bank OCBC NISP Tbk. This material was used by PT. Bank OCBC NISP Tbk.during an oral presentation; it is not a complete record of the discussion.

2 Agenda First Half Performance Financial Results Corporate Updates Appendix 2

3 Executive Summary NPAT reached Rp 632 billion or increased by 18% YoY in first half Total Assets reached a new high of Rp trillion Loans grew 15% YoY to Rp 65.5 trillion. Deposits rose 23% YoY to Rp 71.4 trillion. Loan-to-deposit ratio stood at 91.5%. Capital adequacy ratio at 19.7%. Network coverage with 337 offices and 755 ATM OCBC NISP. 3

4 Network Branch 337 Offices Jabotabek, Banten (153) West Java (61) Central Java (24) East Java (34) Bali, Lombok, Sumatera, Kalimantan, Sulawesi, Others (65) Electronic channel ATM, EDC & e-banking 755 ATM OCBC NISP and access to more than 128,000 ATM Network in Indonesia and over 12,000 ATM Network in Singapore and Malaysia 800 EDC OCBC NISP and access to over 279,000 EDC Network e-channel OCBC NISP including internet and mobile banking Call centre Call OCBC NISP Hotline Treasury Corporate Website - 4

5 Income Statement Highlights Rp. billion 1H13 1H14 YoY 1Q14 2Q14 QoQ Net Interest Income 1,485 1,805 22% (1%) Non Interest Income % (15%) Operating Income 1,870 2,227 19% 1,135 1,092 (4%) Operating Expenses (1,068) (1,256) 18% (613) (643) 5% Pre Provision Operating Profit % (14%) Provision Expense (86) (128) 49% (66) (62) (7%) Non Operating Income/(Expense) (1) - (100%) (1) 1 - Profit Before Tax % (15%) Net Profit After Tax % (15%) 5

6 Financial Position Highlights Rp. billion 1H13 1H14 YoY 1Q14 2Q14 QoQ Placement in other Bank (net) 1) 3,465 6,313 82% 5,545 6,313 14% Marketable Securities 2) 10,170 15,261 50% 14,357 15,261 6% Loans (gross) 3) 56,892 65,506 15% 63,571 65,506 3% Impairment Allowance (1,023) (1,328) 30% (1,289) (1,328) 3% Total Assets 81, ,593 23% 94, ,593 6% Current Account 13,828 15,477 12% 11,939 15,477 30% Savings 12,126 11,157 (8%) 10,747 11,157 4% Time Deposit 31,938 44,718 40% 40,142 44,718 11% Total Customer Deposits 3) 57,892 71,352 23% 62,828 71,352 14% Borrowings - 2, % 2,272 2,371 4% Marketable Securities Issued 3,881 2,916 (25%) 2,915 2,916 - Subordinated Bonds Total Liabilities 72,397 86,418 19% 80,972 86,418 7% Equity 9,351 14,175 52% 13,880 14,175 2% Note: 1) Including Placement in Bank Indonesia 2) Exclude Securities purchase under resale agreement 3) Including Sharia products 6

7 Key Ratios % 1H13 1H14 YoY 1Q14 2Q14 QoQ Net Interest Margin Non Int. Income / Operating Income (1.6) (2.3) Cost / Income (0.7) ROA (0.3) ROE 1) (2.8) (1.6) Loan / Deposit (6.5) (9.3) Loan / Funding 2) (6.4) (7.8) CASA / Deposit (7.5) Secondary Statutory Reserve (2.6) NPL Gross NPL Net Loan Loss Provision (LLP) / NPL (79.0) (87.7) NOP (5.4) (1.0) CAR (0.2) Note: 1) The bank's return on equity was lower after the rights issue amounted to Rp 3.5 trillion in Nov ) Funding includes Customer Deposits, Borrowings, Bonds and Medium Term Notes (MTN). 7

8 NIM stood at 4.1% in first half 2014 along with well diversified Non-Interest Income channels Net Interest Income Rp. billion Non-Interest Income by Type First Half Net Interest Margin 4.1% 4.1% 4.2% 4.3% 4.0% 4.1% Net Interest Margin 4.1% Trade Finance 2014: 17% 2013: 15% Credit related 2014: 29% 2013: 21% 1,485 1, Gain from Sale of Marketable securities 2014: 18% 2013: 6% Bancassurance 2014: 8% 2013: 13% Foreign Exchange Gain (Loss) 2014: (1%) 2013: 15% Deposit Administration 2014: 8% 2013: 9% Others *) 2014: 21% 2013: 21% 1H13 1H14 2Q13 3Q13 4Q13 1Q14 2Q14 Non-Interest Income 2014: Rp 422 billion 2013: Rp 385 billion *) Including Wealth Mgt, Remittance, e-channel and Other fee 8

9 Cost-to-Income Ratio stood at 56.4% in first half 2014 Operating Expense and Operating Income Rp. billion Cost to Income Ratio 57.1% 56.4% Cost to Income Ratio 58.8% 1,870 2, % 53.1% 53.7% 54.0% 1,256 1, % 63% 4 0 % 60% 993 1,073 1, % 39% 42% 1,135 1, % 40% 62% 61% 58% 61% 60% 1H13 1H14 2Q13 3Q13 4Q13 1Q14 2Q14 Operating Income Employee Expense General Administration 9

10 Total loans increased by 15% YoY to Rp 65.5 trillion on the back of well diversified loans growth Loans Composition Rp. billion Loans by Sector First Half 56,892 23% 61,188 63,967 63,571 65,506 21% 20% 19% 18% Construction 2014: 2% 2013: 3% Agricultural & mining 2014: 6% 2013: 4% 36% 37% 39% 39% 41% Services 2014: 22% 2013: 21% Others *) 2014: 19% 2013: 23% 41% 42% 41% 42% 41% 2Q13 3Q13 4Q13 1Q14 2Q14 Working Capital Investment Consumer Trading 2014: 26% 2013: 25% Outstanding loans 2014: Rp 65,506 billion 2013: Rp 56,892 billion Manufacturing 2014: 25% 2013: 24% Note: Consumer loans includes Employee loan *) Others category Including Consumer loans 10

11 The bank loans were spread over regions which most of economic activities are undertaken Loans by Geography First Half Loans by Currency First Half West Java 2014:15% 2013: 16% Central Java 2014: 2% 2013: 2% East Java 2014: 9% 2013: 10% Sumatera 2014: 13% 2013: 12% Kalimantan 2014: 3% 2013: 3% Rupiah 2014: 71% 2013: 75% Jakarta 2014: 55% 2013: 54% Sulawesi & Others 2014: 3% 2013: 3% Foreign currencies 2014: 29% 2013: 25% Outstanding loans 2014: Rp 65,506 billion 2013: Rp 56,892 billion Outstanding loans 2014: Rp 65,506 billion 2013: Rp 56,892 billion 11

12 Gross NPL was recorded at 1.1%, while Net NPL stood at 0.7% Loan Collectibility % of Outstanding loans Loan Loss Provision (LLP) / NPL % Net NPL 0.4% 0.4% 0.4% 0.4% 0.7% , % 1.3% 61, % 1.2% 63, % 0.8% 63, % 1.4% 65, % 0.9% % 98.1% 98.5% 97.8% 98.0% Q13 3Q13 4Q13 1Q14 2Q14 Current Special mention NPL Gross 2Q13 3Q13 4Q13 1Q14 2Q14 General Specific 12

13 Total CASA represent 37.3% of total Third party funds Deposit Composition Rp. billion Deposit and Funding by Currency First Half Rupiah 2014: 64% 2013: 71% 57,892 62,874 68,937 62,828 71,352 Foreign currencies 2014: 36% 2013: 29% 55% 55% 61% 64% 63% Total Deposit 2014: Rp 71,352 billion 2013: Rp 57,892 billion Rupiah 2014: 64% 2013: 73% 21% 21% 16% 17% 15% 24% 24% 23% 19% 22% 2Q13 3Q13 4Q13 1Q14 2Q14 Current Account Savings Time Deposits Foreign currencies 2014: 36% 2013: 27% Total Funding 2014: Rp 77,516 billion 2013: Rp 62,649 billion Note: Funding includes Customer Deposits, Borrowings, Bonds and MTN 13

14 LDR was at 91.5% at the end of 1H14, while Loan to Funding stood at 84.2% Loans, Third Party Fund and Funding Rp. billion Loan-to-Deposit Ratio 98.0% 97.0% 92.5% 100.8% 91.5% Loan-to-Funding Ratio 90.6% 87.2% 83.7% 92.0% 84.2% 56,892 57,892 62,649 61,188 76,133 69,950 68,937 68,891 62,874 63,967 63,571 62,828 65,506 77,516 71,352 2Q13 3Q13 4Q13 1Q14 2Q14 Loans Deposit Funding Note: 1) Funding includes Customer Deposits, Borrowings, Bonds and MTN. 2) Secondary Statutory Reserve was managed at 26.6% level (vs 4% level of minimum requirement) 14

15 Share Price and Credit Ratings Daily share price and trading volume NISP IJ Rating Daily trading volume (Thousand) 16,000 14,000 12,000 Share Price Share price (Rupiah) 1,750 1,500 PEFINDO Nov 2013 Fitch Ratings April 2014 Corporate Rating Continuous Bonds I National Long-term National Short-term idaaa / Stable idaaa / Stable AAA (idn) / Stable F1+ (idn) 10,000 1,250 Long-term Foreign Currency BBB / Stable 8,000 Long-term Local Currency A- / Stable 6,000 1,000 Short-term Foreign Currency F 3 4,000 2, Jul-13 Nov-13 Jan-14 Mar-14 Jun IDR Subordinated Debt Continuous Bonds I Viability Rating Support Rating AA (idn) AAA (idn) bb 2 Source: Bloomberg Valuation Rp. Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Ownership Structure As of 30 June 2014 Number of shares Ownership Share Price 1,300 1,450 1,230 1,340 1,400 PBV 1.2x 1.3x 1.1x 1.1x 1.2x EPS Quarterly OCBC Overseas 9,760,695, % Investment Pte. Ltd *) Public 1,711,952, % Total 11,472,648, % Note: *) OCBC Overseas Investment Pte. Ltd is owned by OCBC Bank, Singapore. OCBC Bank is Singapore s longest established bank (est. 1912) and one of Asia s leading financial services groups, with group assets of SGD 344 billion as of 31 March 2014 and employs more than 25,000 staff globally and has a banking network of over 460 branches and offices in 17 countries and territories. 15

16 Agenda First Half Performance Financial Results Corporate Updates Appendix 16

17 Business Initiatives Consumer Banking Intensifying Tanda, Taka and Tanda 360 o campaign to acquire more new customers. Intensifying internet and mobile banking campaign to acquire more new users. Launched new mutual funds product such as Schroder Dana Prestasi in February Launched Bancassurance product of MaxPrestige Saver, MaxLink and MaxHealth in first semester Launched Tanda Funtastrip program in May SUKUK Negara Ritel Seri 006 Year 2014 Following the success of selling the previous SUKUK series, Bank OCBC NISP again serves as a reseller of the SUKUK Negara Ritel Seri 006 to individual investors. It was successfully selling SUKUK series to both in primary market as well as in secondary market. 17

18 Corporate Social Responsibility As a part of I Love Science (ILS) program, Bank OCBC NISP with Professor Yohanes Surya visited Cipinang Besar Selatan 19 Pagi Elementary School (SDN CBS 19 Pagi). The event was fill in with math lesson by Professor Yohanes Surya through exciting methods. This ILS program were greatly responded by the children. A number of Bank OCBC NISP volunteers visited the AnkolSchool in Jembatan Tiga area, a non-formal school for those children who are unable to obtain formal education. The volunteers gave some donations to the AnkolSchool, ie. reading books, bookshelves, TVs, CD players, school stationery, and school uniforms for a total of 153 children. Additionally, the volunteers distributed the souvenirs to the children, painted the classroom walls, and installed the school s name board. The Training of Trainers (ToT) ILS program in 2014 was held at OCBC NISP Tower Jakarta, attended by the guests from the Karya Salemba Empat Foundation (KSE), the Sekolah Tinggi Keguruan dan Ilmu Pendidikan (STKIP) Surya, and the ILS teachers who are ready for training, the students from University of Indonesia (UI), State University of Jakarta (UNJ), Agricultural University of Bogor (IPB), STKIP Surya and 10 teachers from representative elementary school in Jabodetabek. 18

19 Corporate Social Responsibility (Cont d) The workshop took place at Anggrek Campus - Bina Nusantara University, Jakarta. The One Day Workshop successfully attracted 94 students to participate. Carrying the theme Wealth Management in A Simple Way, the workshop was expected to educate the students about banking in general, current good wealth management, and careers in banking industry. On its 73 rd Anniversary, Bank OCBC NISP conducted a CSR program Bicycle Donations, themed Millions of Thanks to You Teacher in 37 cities accross Indonesia. This program was conducted as a form of appreciation to the teachers in both cities and villages, from Sumatra to Sulawesi. Together with OCBC Bank Singapore and Bank of Singapore, Bank OCBC NISP conducted a CSR program, themed Clean Water for Sabira, in Sabira Island, a part of Thousand Islands. This CSR program was meant to provide clean water, build the public bathing, washing and toilet facilities, and also repair the school building for early childhood education in Sabira Island. 19

20 Corporate Social Responsibility (Cont d) The I Love Science 2014 program (ILS) has officially closed after ongoing since February In the closing ceremony, which took place at OCBC NISP Tower, Bank OCBC NISP awarded the best students and tutors in the ILS program as a form of appreciation. Besides, Bank OCBC NISP also awarded 10 elementary schools, who have been supporting and participating in ILS program, by giving each of the school a set of megaphone and DVD player to support the students learning activities in school. 20

21 Accolades. Islamic Finance Award 2014 for Top Growth Financing, Top Growth Funding, dan The Best Sharia Unit category, under the group of bank with assets of less than Rp 1 trillion, KARIM Business Consulting... The 2014 Indonesian Bank Loyalty Award in category of Savings Account Conventional Banking with assets under Rp 100 trillion, Mark Plus Insight. Asia s Best Companies 2014 Award in category of Best Managed Companies (ranked 6 th ), Finance Asia Magazine. Anugerah Seabad Indonesia 2045 Bank OCBC NISP was awarded for its existence and sustainability in Indonesia Banking Industry for more than three generations, Pusat Data Bisnis Indonesia (PDBI). 21

22 Supports from Controlling Shareholder Human Capital Team-up Senior executive OCBC Bank Singapore in Board of Commissioners and Board of Directors OCBC NISP. Transfer knowledge throughout comprehensive training program, business event, comparative studies, job attachment and guest auditors. Build service excellence culture. Others Provide strong capital support. Create synergy in better supporting financing and transaction service needs for customers. Enhance infrastructure, information technology & branch networks. Broaden conventional and Islamic banking product suite. Bolster process improvement throughout Quality projects. Link-up ATM in Singapore and Indonesia. 22

23 Agenda First Half Performance Financial Results Corporate Updates Appendix 23

24 Vision and Mission Vision To be the Bank of choice with world-class standards, recognized for its caring and trustworthiness. Mission Bank OCBC NISP will conduct its business and will operate as an honorable corporate citizen that grows together with the society in a sustainable manner. 24

25 Fact of OCBC NISP Fourth oldest bank in Indonesia was incorporated in Listed its shares on Indonesia Stock Exchange in Has survived through any Indonesia economic crisis. Transformed the entire organization subsequent to adopted a new name PT Bank OCBC NISP Tbk. by the end The Indonesia s seventh largest private bank by the end of March Strong business acumen with focus on serving consumer, small and medium enterprises. Currently employs 6,721 dedicated staff to serve customers in 59 cities across Indonesia throughout 337 offices and 755 ATMs. The merger with Bank OCBC Indonesia was completed on 7 February 2011 resulting in one single banking entity and franchise for the group in Indonesia. Solid financial performance with strong capital support from OCBC Bank Singapore. 25

26 Board of Commissioners as of 30 June 2014 Pramukti Surjaudaja Chairman Chairman, Board of Commissioners, Bank OCBC NISP since 2008 President Director Bank OCBC NISP ( ) Council Member, International & East Asia Council, INSEAD, France, since 2006 Non Executive Director at OCBC Bank-Singapore since 2004 Peter Eko Sutioso Deputy Chairman Deputy Chairman of Bank OCBC NISP since 1998 Commissioner Bank OCBC NISP ( ) Director of Bank OCBC NISP ( ) Active in Perbanas (Indonesian Banking Association) West Java as Chairman of Perbanas West Java ( ), and active in BMPD West Java ( ) Roy Athanas Karaoglan Independent Commissioner Independent Commissioner of Bank OCBC NISP since 2003 As Banking Consultant since Consultant for IFC ( ) Associate Director of Credit Review Department, IFC ( ) Chief Banking Specialist of Central Capital Markets Department, IFC ( ) Jusuf Halim Independent Commissioner Independent Commissioner of Bank OCBC NISP since 2006 Chairman of the Audit Committee of Bank OCBC NISP since February 2011 Member of National Council Board-the Indonesian Institute of Accountants since 2010 Member of Honorary Board-the Indonesian Institute of Audit Committee since 2010 Lai Teck Poh (Dua Teck Poh) Commissioner Commissioner of Bank OCBC NISP since 2008 Non Executive Director in OCBC Bank (Malaysia) Bhd since 2011 Non Executive Director in OCBC Bank Ltd since 2010 OCBC Bank Ltd ( ) with latest management position as Head, Group Audit Managing Director/CEO, Citicorp Investment Bank (Singapore) Ltd ( ) Kwan Chiew Choi Independent Commissioner Independent Commissioner Bank OCBC NISP since 2011 Independent Commissioner of Bank OCBC Indonesia ( ) Senior Vice President, Head Credit Control and Approval, OCBC Bank Ltd ( ) Loans Department Manager of Sumitomo Bank Ltd, Singapore Branch ( ) Samuel Nag Tsien Commissioner Commissioner of Bank OCBC NISP since 2012 Director of Mapple Tree Investment Ltd. And Mapple Tree Commercial Trust Management Ltd sice March Chairman of the Association of Banks in Singapore since 2013 Joined OCBC Bank Ltd in 2007 and appointed as Group Chief Executive Officer since April 2012 Director of OCBC Bank (Malaysia) Berhard, OCBC Al-Amin Bank Berhard, Great Eastern Holdings Ltd, Overseas Assurance Corporation Ltd. and OCBC Overseas Investments Pte. Ltd since 2012 Director of OCBC Bank (China) Ltd. since 2008 Bank of Amerika (Asia) Hongkong, with latest position as President and Chief Executive Officer ( ) Hardi Juganda Commissioner Commissioner of Bank OCBC NISP since May 2012 Director Bank OCBC NISP (1997-May 2012) Head Positions in various branches and divisions of Bank OCBC NISP ( ) 25

27 Board of Directors as of 30 June 2014 Parwati Surjaudaja President Director & CEO President Director of Bank OCBC NISP since December 2008 Deputy President Director Bank OCBC NISP ( ) Director of Bank OCBC NISP ( ) Na Wu Beng Deputy President Director Deputy President Director of Bank OCBC NISP since 2005 Commissioner Bank OCBC NISP ( ) Has experience in various head positions in OCBC Bank Ltd ( ) Yogadharma Ratnapalasari Managing Director Director of Bank OCBC NISP since 2003 Assistant Director Bank OCBC NISP ( ) Commissioner of PT NISP Sekuritas ( ) Head Positions in various divisions of Bank OCBC NISP ( ) Rama Pranata Kusumaputra Managing Director Director of Bank OCBC NISP since 2006 Assistant Director of Bank OCBC NISP ( ) Region II Coordinator of Bank OCBC NISP ( ) Has experience in various positions in Bank Bali ( ) with last position as General Manager Emilya Tjahjadi Managing Director Director of Bank OCBC NISP since 2011 Director of Bank OCBC Indonesia ( ) SVP and Head Commercial Banking MME at HSBC, Jakarta ( ) American Express Bank Ltd., Jakarta ( ) with last position as Director of Corporate Banking Standard Chartered Group, Jakarta & Singapore ( ) with last position as Senior Relationship Manager Andrae Krishnawan W. Managing Director -Director of Bank OCBC NISP since Senior Corporate Executive Bank OCBC NISP ( ) -Assistant Director of Bank OCBC NISP ( ) -The Staff Director Bank OCBC NISP ( ) -Has experience in various positions in Bank International Indonesia ( ) with last position as Regional Head for the last 7 years Hartati Managing Director Director of Bank OCBC NISP since 2011 Chief Financial Officer of Bank OCBC NISP ( ) Assistant Director of Bank OCBC NISP ( ) Accounting & Finance Division Head Bank OCBC NISP ( ) General Manager Bank OCBC NISP ( ) Bank Mandiri ( ) with last position as Accounting Group Head (Senior Vice President) Bank Bali ( ) with last position as Financial Control Department Head (Vice President) Martin Widjaja Managing Director Director of Bank OCBC NISP since 2012 SVP & Head of International and Large Local Corporation in HSBC ( ) Senior Vice President, Commercial Banking, HSBC ( ) Vice President, Commercial Banking ( ) and Corporate & Institutional Banking ( ), HSBC Assistant Vice President Corporate & Institutional Banking, HSBC ( ) Manager Corporate Banking, HSBC Surabaya ( ) 26

28 Board of Directors as of 30 June 2014 (Cont d) Johannes Husin Managing Director Director of Bank OCBC NISP since 2013 Treasurer Bank OCBC NISP ( ) Executive Vice President, Head of Trading & Sales Bank Danamon ( ) Executive Director JP Morgan Chase Bank ( ) Senior Vice President, Head of Trading Bank Danamon ( ) Vice President, Senior Interest Rate Trader-Standard Chartered Bank ( ) Currency Forward Trader-ABN Amro Bank ( ) Foreign Exchange Trader-Bank Dagang Nasional Indonesia ( ) Low Seh Kiat (Thomas) Managing Director Director of Bank OCBC NISP since 2013 National Emerging Business Head Bank OCBC NISP ( ) Vice President, Business Head of Emerging Business OCBC Bank, Singapore ( ) VP, Head of Program Management & Marketing OCBC Bank, Singapore ( ) VP-GE Commercial Financing (S) Ltd, Singapore ( ) Has experience in various head positions in Heller Factoring (S) Ltd, Singapore ( ) and Heller Asia Capital (S) Ltd, Singapore ( ) Sales Manager D&D International Enterprise Ltd, USA ( ) Joseph Chan Fook Onn* Managing Director - Director of Bank OCBC NISP since OCBC Group Risk Management (Feb-Mar 2014) - Head of Internal Audit Division, OCBC Bank Malaysia Bhd (2010-Jan 2014) - Head of Internal Audit Division, Bank OCBC NISP Jakarta ( ) - Senior Audit Manager Consumer Credit Review, OCBC Bank Singapore ( ) - Audit Manager, Standard Chartered Bank Singapore ( ) - Have more than 19 years banking experience especially in Internal Audit. - MBA, University of Southern Queensland, Australia (2013) and Bachelor, Business/Accounting, Monash University, Australia (1994). * Effective after obtaining Indonesia Financial Services Authority / OJK's approval 27

29 Corporate Development PT. Bank OCBC NISP Tbk OCBC NISP Tower, 15 th Floor Jl. Prof. Dr. Satrio Kav. 25, Jakarta Phone : Fax : Website : ir@ocbcnisp.com 29