pt bank ocbc nisp tbk financial performance – first ... · pt bank ocbc nisp tbk financial...

11

PT Bank OCBC NISP Tbk Financial Performance – First Quarter 2016(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.

22

• First Quarter Performance

• Financial Results

• Corporate Updates

• Appendix

Agenda

33

Executive Summary

• NPAT reached IDR 457 billion or increased by 23% YoY in first quarter 2016

• Total Assets grew 4% YoY at IDR 119 trillion

• Loans outstanding rose 22% YoY to IDR 85 trillion

• Deposits increased 9% YoY to IDR 90 trillion

• LDR ratio was 94.7%, Loan-to-Funding ratio at 88.4%

• Gross NPL stood at 1.4%, remains well below the industry average

• CAR at 18.0%, above the minimum requirement

• Corporate Rating is AAA with stable outlook

• Network Coverage with 339 offices and 753 ATM OCBC NISP

44

Network

Branch 339 Offices

Electronic channelATM, EDC & e-Banking

Call centre

• Jabotabek, Banten (150)

• West Java (61)

• Central Java (24)

• East Java (34)

• Bali, Lombok, Sumatera, Kalimantan, Sulawesi, Others (70)

• 753 ATM OCBC NISP and access to more than 161,000 ATM Network in Indonesia and access to 889 ATM OCBC Group Network in Singapore and Malaysia

• 1,018 EDC OCBC NISP and access over 406,000 EDC Network

• e-Channel OCBC NISP including internet and mobile banking

• Call OCBC NISP 500-999

• Hotline Treasury 08001 111 898

• Corporate Website -www.ocbcnisp.com

55

Income Statement Highlights

IDR billion 1Q15 4Q15 1Q16 ∆∆∆∆QoQ ∆∆∆∆YoY

Net Interest Income 981 1,303 1,423 9% 45%

Non Interest Income 201 316 218 (31%) 9%

Operating Income 1,182 1,619 1,641 1% 39%

Operating Expenses (649) (778) (767) (2%) 18%

Pre Provision Operating Profit 533 841 874 4% 64%

Provision Expense (37) (253) (276) 9% 638%

Non Operating Income / (Expense) - 1 8 NM NM

Profit Before Tax 496 589 606 3% 22%

Net Profit After Tax 372 441 457 4% 23%

66

Financial Position Highlights

Note: 1) Including Placement in Bank Indonesia 2) Exclude Securities purchase under resale agreement 3) Including Sharia products

IDR billion 1Q15 4Q15 1Q16 ∆∆∆∆QoQ ∆∆∆∆YoY

Placement in other Bank (net) 1) 12,341 9,278 1,978 (79%) (84%)

Marketable Securities 2) 18,869 12,003 19,194 60% 2%

Loans (gross) 3) 69,971 85,879 85,122 (1%) 22%

Impairment Allowance (1,476) (1,838) (2,113) 15% 43%

Total Assets 115,022 120,480 119,400 (1%) 4%

Current Account 13,275 22,506 21,162 (6%) 59%

Savings 11,423 13,646 14,063 3% 23%

Time Deposit 57,716 51,128 54,351 6% (6%)

Total Customer Deposits 3) 82,414 87,280 89,576 3% 9%

Borrowings 2,615 2,757 2,652 (4%) 1%

Marketable Securities Issued 5,384 5,392 2,802 (48%) (48%)

Subordinated Bonds 877 878 878 NM NM

Total Liabilities 99,692 104,069 102,472 (2%) 3%

Equity 15,330 16,411 16,928 3% 10%

77

Key Ratios

Note:

1) Loan-to-Deposit calculation and Loan-to-Funding according to guideline from Bank Indonesia

2) Funding includes Customer Deposits, Borrowings, Bonds and Medium Term Notes (MTN)

1Q15 4Q15 1Q16 ��QoQ ��YoY

Net Interest Margin 3.8% 4.7% 5.2% 0.5% 1.4%

Non Int. Income / Operating Income 17.0% 19.6% 13.3% (6.3%) (3.7%)

Cost / Income 54.9% 48.1% 46.7% (1.4%) (8.2%)

ROA 1.8% 1.9% 2.0% 0.1% 0.2%

ROE 9.9% 10.9% 11.0% 0.1% 1.1%

Loan / Deposit 1) 84.6% 98.0% 94.7% (3.3%) 10.1%

Loan / Funding 1) 82.0% 95.4% 92.2% (3.2%) 10.2%

Loan / Funding 2) 76.4% 88.9% 88.4% (0.5%) 12.0%

CASA / Deposit 30.0% 41.4% 39.3% (2.1%) 9.3%

NPL – Gross 1.4% 1.3% 1.4% 0.1% -

NPL – Net 0.8% 0.8% 0.8% - -

Loan Loss Provision (LLP) / NPL 151.9% 164.6% 176.8% 12.2% 24.9%

NOP 1.7% 1.0% 0.8% (0.2%) (0.9%)

CAR 19.2% 17.3% 18.0% 0.7% (1.2%)

Gain from Sale of Marketable

Securities

2016: 23%2015: 35%

Foreign Exchange Gain

(loss)

2016: 9%2015: (18%)

Trade Finance2016: 14%2015: 18%

Bancassurance2016: 9%2015: 9%

Credit Related 2016: 18%2015: 21%

Deposit Administration

2016: 7%

2015: 8%

Others *) 2016: 20%2015: 27%

3.8%3.6%

4.2%

4.7%

5.2%

88

NIM increased to 5.2% in 1Q16 along with diversified Non-Interest Income channels

Net Interest IncomeIDR billion

Non-Interest Income 2016: Rp 218 billion

2015: Rp 201 billion

Non-Interest Income by TypeFirst Quarter

*) Including Wealth Mgt, Remittance, e-channel and Other fee

Net Interest Margin

��

981 968

1,167 1,303

1,423

1Q15 2Q15 3Q15 4Q15 1Q16

54.9%56.8% 55.8%

48.1%46.7%

1,182 1,210 1,262

1,619 1,641

767649 686 705 778

1Q15 2Q15 3Q15 4Q15 1Q16

60% 60% 60% 63% 62%

38%37%40%40%40%

9

Operating Expense and Operating IncomeIDR billion

Operating Income Employee Expense General Administration Expenses

Cost-to-Income Ratio improved to 46.7% in 1Q 2016

Cost to Income Ratio▼▼▼▼

1010

Total loans increased by 22% YoY to Rp 85 trillion on the back of diversified loans growth

Loans CompositionIDR billion

Note: Consumer loans includes Employee loan

Loans by SectorFirst Quarter

Outstanding loans2016: Rp 85,122 billion

2015: Rp 69,971 billion

*) “Others” category Including Consumer loans

41% 42% 42% 43% 43%

42% 42%44% 43% 43%

17%16%

14%14% 14%69,971

74,214 82,081

85,879 85,122

1Q15 2Q15 3Q15 4Q15 1Q16

Working Capital Investment Consumer

Construction2016: 2%2015: 2%

Agricultural & Mining

2016: 12%2015: 8%

Service2016: 18%2015: 21%

Trading2016: 27%2015: 27%

Manufacturing2016: 26%2015: 25%

Others *)2016: 15%2015: 17%

1111

Loans by Geography First Quarter

Loans by CurrencyFirst Quarter

The bank loans were spread over regions which most of economic activities are undertaken

Rupiah2016: 75%2015: 71%

Foreign Currencies2016: 25%

2015: 29%


2015: Rp 69,971 billion


2015: Rp 69,971 billion

Central Java2016: 2%2015: 2%

West Java2016: 13%2015: 14%

Jakarta2016: 61%2015: 58%

East Java2016: 9%2015: 9%

Sumatera2016: 10%2015: 11%

Kalimantan2016: 2%2015: 3%

Sulawesi and Others *)2016: 3%2015: 3%

0.8%0.7%

0.8% 0.8% 0.8%

1212

Loan Collectibility% Outstanding loans

Loan Loss Provision (LLP) / NPL %

Gross NPL was recorded at 1.4%, while Net NPL stoodat 0.8%

Net NPL��

97.3%97.1%

97.3% 97.1% 97.0%

1.3%1.6%

1.4% 1.6% 1.6%

1.4%1.3%

1.3%1.3% 1.4%

69.971 74.214

82.081 85.879 85.122

1Q15 2Q15 3Q15 4Q15 1Q16

Current Special Mention NPL Gross

40.641.6

40.9

40.245.7

151.9161.2

147.2

164.6176.8

111.3 119.6 106.3124.4 131.1

1Q15 2Q15 3Q15 4Q15 1Q16

General Specific

1313

Total CASA represent 39.3% of Third party funds

Deposit CompositionIDR billion

Deposit and Funding by CurrencyFirst Quarter

Total Deposit2016: Rp 89,576 billion

2015: Rp 82,414 billion

Total Funding2016: Rp 95, 908 billion

2015: Rp 91,290 billion

Note: Funding includes Customer Deposits, Borrowings, Bonds and MTN

16% 21% 24% 26% 23%14%

14%15% 16% 16%

70%65%

61% 58% 61%

82,414 84,719 91,200

87,280 89,576

1Q15 2Q15 3Q15 4Q15 1Q16

Current Accounts Savings Time Deposits

Rupiah2016: 69%2015: 62%

Foreign Currencies2016: 31%2015: 38%

Rupiah2016: 69%2015: 63%

Foreign Currencies2016: 31%2015: 37%

84.6%87.3% 89.7%

98.0%94.7%

76.4% 79.0% 81.5%

88.9%88.4%

1414

LDR was 94.7%, while Loan-to-Funding ratio was 88.4% at 1Q 2016

Loan-to-Deposit Ratio▼▼▼▼Loans, Third Party Fund and FundingIDR billion

Note:

1) Funding includes Customer Deposits, Borrowings, Bonds and MTN.

2) Secondary Statutory Reserve was managed at 16.3% level ( vs 4% level of minimum requirement)

▲▲▲▲Loan-to-Funding Ratio

69,971 74,214

82,081 85,879 85,122 82,414

84,719

91,200 87,280

89,576 91,290 93,650

100,397 96,308 95,908

1Q15 2Q15 3Q15 4Q15 1Q16

Loans Deposit Funding

500

750

1,000

1,250

1,500

1,750

-

6,000

12,000

18,000

24,000

30,000

Apr-15 May-15 Aug-15 Jan-16 Mar-16

1515

Rating

PEFINDO

Feb 2016

Corporate Rating idAAA / Stable

Continuous Bonds I idAAA / Stable

Fitch Ratings

April 2016

National Long-term AAA (idn) / Stable

National Short-term F1+ (idn)

Long-term Foreign Currency

Long-term Local Currency

BBB / Stable

A- / Stable

Short-term Foreign Currency F 3

IDR Subordinated Debt AA (idn)

Continuous Bonds I

Viability Rating

Support Rating

AAA (idn)

bb

2

Share Price and Credit RatingsDaily share price and trading volumeNISP IJ

Source: Bloomberg

Share price (Rupiah)Daily trading volume (Thousand)

Ownership StructureAs of 31 March 2016

Number of shares

Ownership

OCBC Overseas

Investment Pte. Ltd*)

9,760,695,612 85.1%

Public 1,711,952,874 14.9%

Total 11,472,648,486 100.0%

ValuationIDR

Mar 15 Jun 15 Sep 15 Dec 15 Mar 16

Share Price 1,400 1,240 1,225 1,275 1,185

PBV 1.1x 0.9x 0.9x 0.9x 0.8x

EPS Quarterly 34 32 32 28 38

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 390 billion as of 31 December 2015 and employs more than 29,000 staff globally and

has a banking network of over 630 branches and representative offices in 18 countries and territories.

Share Price▼▼▼▼

Source: Bloomberg

1616




• Appendix

Agenda

17

Business Initiatives

.

Consumer Banking- Intensifying Tanda 360o and Taka campaign to acquire more new customers.

- Intensifying internet and mobile banking campaign to acquire more new users.

- Bank OCBC NISP together with PT Rintis Sejahtera as PRIMA network provider established a

cooperation in the field of electronic banking with the acceptance of UnionPay International at ATMs of

Bank OCBC NISP.

- Launched KPR Kendali: Bundling product of mortgage with savings, which allows customer to control

mortgage through savings.

- Launched Bancassurance products, ie Great Optima Link.

18

Accolade 2016

.

Bank OCBC NISP received the appreciation Padmamitra Award asPrivate Company that conduct Corporate Social Responsibility (CSR)as right target program’s – Padmamitra Award delivered by Jakarta

Provincial Government in January 2016.

1919

Human Capital

Others

• Team-up Senior executive OCBC Bank Singapore in Board ofCommissioners and Board of Directors OCBC NISP.

• Transfer knowledge throughout comprehensive training program,business event, comparative studies, job attachment and guestauditors.

• Provide strong capital support.

• Create synergy in better supporting financing and transactionservice 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.

Supports from Controlling Shareholder

2020




• Appendix

Agenda

2121

Vision and Mission

Vision

Mission

To be the Bank of choice with world-class standards, recognized for its caring and trustworthiness.

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.

2222

• Fourth oldest bank in Indonesia was incorporated in 1941.

• Listed its shares on Indonesia Stock Exchange in 1994.

• Transformed the entire organization subsequent to adopted a new name PT Bank OCBC

NISP Tbk. by the end 2008.

• 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.

• For over 75th years, the Bank has survived through any Indonesia economic crisis.

• The Indonesia’s eight *) largest private bank at the end of December 2015.

• Currently employs 6,874 dedicated staff to serve customers in 60 cities across Indonesia

throughout 339 offices and 753 ATMs.

• Focus on serving the segment of SME and Retail.

• Solid financial performance with strong capital support as well as resources from OCBC

Bank Singapore.

Fact of OCBC NISP

*) based on unconsolidated publication of national private bank’s financial report as of 31 December 2015.

23

Board of Commissioners as of 31 March 2016Pramukti SurjaudajaChairman– Chairman, Board of Commissioners, Bank OCBC NISP since 2008

– President Director Bank OCBC NISP (1997-2008)

– Director of Bank OCBC NISP (1989-1997)

– Commissioner of Bank OCBC Indonesia (1997-2000)

– Council Member, International & East Asia Council, INSEAD,

France, since 2006

– Non Executive Director at OCBC Bank-Singapore since 2004

Peter Eko SutiosoDeputy Chairman (Independent Commissioner)– Deputy Chairman of Bank OCBC NISP since 1998

– Commissioner Bank OCBC NISP (1997-1998)


– Active in Perbanas (Indonesian Banking Association) West

Java as Chairman of Perbanas West Java (1983-1988), and

active in BMPD West Java (1977-1990)

Roy Athanas KaraoglanIndependent Commissioner– Commissioner of Bank OCBC NISP since 2003

– As Banking Consultant since 2003.

– Consultant for IFC (2000-2011)

– Associate Director of Credit Review Department, IFC (1998-2000)

– Senior Banking Advisor of IFC (1997-1998)

– Chief Banking Specialist of Central Capital Markets Department,

IFC (1991-1997)

– Senior Banking Specialist for Africa, World Bank (1989-1991)

Jusuf HalimIndependent Commissioner– Independent Commissioner of Bank OCBC NISP since 2006

– Chairman of CPA Examination Board, the Indonesian Institute of

Accountants (2003-2006)

– Chairman of Financial Accounting Standards Committee (1994-1998)

– Member of Advisory Board, the Indonesian Tax Accountants

Compartment (2014-2016)

– Member of Honorary Board-the Indonesian Institute of Audit

Committee (2013-2016)

Lai Teck Poh (Dua Teck Poh)Commissioner– Commissioner of Bank OCBC NISP since 2008

– Non Executive Director in OCBC Bank (Malaysia) Bhd since

2011

– Director in OCBC Bank Ltd since 2010

– OCBC Bank Ltd (1988-2010) with latest management

position as Head, Group Audit

– Managing Director, Citicorp Investment Bank (Singapore)

Ltd (1986-1987)

Kwan Chiew ChoiIndependent Commissioner– Commissioner Bank OCBC NISP since 2011

– Independent Commissioner of Bank OCBC Indonesia (2008-

2010)

– Senior Vice President & Head Credit Control and Approval,

OCBC Bank Ltd (1987-2008)

– Vice President of Corporate Banking, First National Bank of

Chicago (Singapore) (1984-1987)

– Loans Department Manager of Sumitomo Bank Ltd,

Singapore Branch (1973-1982)

Samuel Nag TsienCommissioner– Commissioner of Bank OCBC NISP since 2012

– Director of Wing Hang Bank, Limited since August 2014

– Director of Mappletree Investments Pte. Ltd. since March 2014.

– Chairman of the Association of Banks in Singapore since June 2013

– Joined OCBC Bank Ltd in 2007 and appointed as Group Chief

Executive Officer since April 2012 and as Director since February 2014

– Director of OCBC Bank (Malaysia) Berhard, OCBC Al-Amin Bank

Berhard, Great Eastern Holdings Ltd, and OCBC Overseas Investments

Pte. Ltd since April 2012

– Chairman of OCBC Bank (China) Ltd. since October 2012

– President and Chief Executive Officer of Bank of Amerika (Asia)

Hongkong, from1995-2006

Hardi JugandaCommissioner– Commissioner of Bank OCBC NISP since July 2012

– Director Bank OCBC NISP (1997-May 2012)

– Head Positions in various branches and divisions of Bank

OCBC NISP (1985-1997)

24

Parwati SurjaudajaPresident Director & CEO– President Director of Bank OCBC NISP since December 2008

– Deputy President Director Bank OCBC NISP (1997-2008)


Board of Directors as of 31 March 2016

Yogadharma RatnapalasariManaging Director– Director of Bank OCBC NISP since 2003

– Assistant Director Bank OCBC NISP (1997- 2002)

– Commissioner of PT NISP Sekuritas (2000-2003)

– Head Positions in various divisions of Bank OCBC NISP

(1988-1997)

Rama Pranata KusumaputraManaging Director– Director of Bank OCBC NISP since 2006

– Assistant Director of Bank OCBC NISP (2005-2006)

– Region II Coordinator of Bank OCBC NISP (2001-2005)

– Has experience in various positions in Bank Bali (1990-2000)

with last position as General Manager

Emilya TjahjadiManaging Director– Director of Bank OCBC NISP since 2011

– Director of Bank OCBC Indonesia (2009-2010)

– SVP and Head Commercial Banking MME at HSBC, Jakarta

(2003-2009)

– American Express Bank Ltd., Jakarta (1996-2002) with last

position as Director of Corporate Banking

– Standard Chartered Group, Jakarta & Singapore (1991-1996)

with last position as Senior Relationship Manager

HartatiManaging Director (Independent Director)– Director of Bank OCBC NISP since 2011

– Chief Financial Officer of Bank OCBC NISP (2010-2011)


– Accounting & Finance Division Head Bank OCBC NISP (2006-2008)

– General Manager Bank OCBC NISP (2005-2006)

– Bank Mandiri (2001-2005) with last position as Accounting Group

Head (Senior Vice President)

– Bank Bali (1984-2000) with last position as Financial Control

Department Head (Vice President)

Andrae Krishnawan W.Managing Director– Director of Bank OCBC NISP since 2013

– Senior Corporate Executive Bank OCBC NISP (2009-2013)


– The Staff Director Bank OCBC NISP (2006-2007)

– Has experience in various positions in Bank International

Indonesia (1991-2006) with last position as Regional Head for

the last 7 years

Martin WidjajaManaging Director– Director of Bank OCBC NISP since 2012

– SVP & Head of International and Large Local Corporation in HSBC

(2010-2012)

– Senior Vice President, Commercial Banking, HSBC (2006-2010)

– Vice President, Commercial Banking (2004-2006) and Corporate &

Institutional Banking (2003-2004), HSBC

– Assistant Vice President Corporate & Institutional Banking, HSBC

(2002-2003)

– Manager Corporate Banking, HSBC Surabaya (2000-2002)

Johannes HusinManaging Director– Director of Bank OCBC NISP since 2013

– Treasurer Bank OCBC NISP (2011-2013)

– Executive Vice President, Head of Trading & Sales Bank Danamon

(2008-2011)

– Executive Director – JP Morgan Chase Bank (2005-2008)

– Senior Vice President, Head of Trading Bank Danamon (2004-2005)

– Vice President, Senior Interest Rate Trader-Standard Chartered

Bank (2000-2004)

– Currency Forward Trader-ABN Amro Bank (1998-2000)

– Foreign Exchange Trader-Bank Dagang Nasional Indonesia (1997-

1998)

25

Board of Directors as of 31 March 2016 (Cont’d)

Low Seh Kiat (Thomas) Managing Director– Director of Bank OCBC NISP since 2013

– National Emerging Business Head Bank OCBC NISP (2010-

2013)

– Vice President, Business Head of Emerging Business OCBC

Bank, Singapore (2005-2010)

– VP, Head of Program Management & Marketing OCBC Bank,

Singapore (2004-2005)

– VP-GE Commercial Financing (S) Ltd, Singapore (2001-2004)

– Has experience in various head positions in Heller Factoring

(S) Ltd, Singapore (1995-1997) and Heller Asia Capital (S)

Ltd, Singapore (1998-2000)

– Sales Manager – D&D International Enterprise Ltd, USA

(1992-1994)

Joseph Chan Fook OnnManaging Director–Director of Bank OCBC NISP since 2014

–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

(2006-2010)

–Senior Audit Manager – Consumer Credit Review, OCBC

Bank – Singapore (2004-2006)

–Audit Manager, Standard Chartered Bank – Singapore (2000-

2003)

–Have more than 19 years banking experience especially in

Internal Audit.

2626

Corporate Development

PT. Bank OCBC NISP Tbk

OCBC NISP Tower, 15th Floor

Jl. Prof. Dr. Satrio Kav. 25, Jakarta 12940

Phone : +62 21 255 33 888

Fax : +62 21 579 44 000

Website : www.ocbcnisp.com

Email : [email protected]

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