ANALYST MEETING PT BANK BUKOPIN Tbk. AS OF DECEMBER 2011
BANK BUKOPIN BANK BUKOPIN OVERVIEW OVERVIEW
As of September 2012 as of SEPT 2011
Disclaimer IMPORTANT: The following forms part of, and should be read in conjunction with, this presentation.
This report is prepared by PT. Bank Bukopin Tbk independently and is circulated for the purpose of general information only. It is not intended to the specific person who may receive this report. No warranty (expressed or implied) is made to the accuracy or completeness of the information. Some of the statements contained in this document contain “forward looking” statements with respect to the financial conditions, results of operations and businesses, and related plans and objectives. These Statements do not directly or exclusively relate to historical facts and reflect the Company’s current intentions, plans, expectations, assumptions and beliefs about future events. The Statements involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the statements as originally made. Such statements are not, and should not be construed as a representation to future performance of the Company. Readers are urged to view all forward-looking statements contained herein with caution.
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Table of Contents
SECTION 1
OVERVIEW
SECTION 2
BUSINESS ACTIVITY
SECTION 3
COMPETITIVE STRENGHTS
SECTION 4
FINANCIAL SUMMARY
SECTION 5
STRATEGIC PLAN
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1
Overview
4
Financial Highlight Speeding up the growth Total Assets (Rp. Tn)*
Total Third Party Deposits (Rp. Tn) * Time Deposit
51.8
Sep-11
57.2
Dec-11
Savings
Current Account
61.4
Sep-12 **
43.5
47.9
50.4
9.3 7.2
11.1 8.1
11.5
27.0
28.7
30.6
Sep-11
Dec-11
Sep-12 **
8.3
Earning (Rp. Bn) *
Total Loans (Rp. Tn) *
Earning Before Tax Earning After Tax
42.1 940.4 738.2
40.7 35.9
667.1
620.8 492.6
Sep-11 * Consolidated ** Unaudited
Dec-11
Sep-12 **
Dec-10
457.9
Dec-11
Sep-11
795.1 617.2 Sep-12 **
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Shareholders Structure, as of 30 Sept 2012 Koperasi Pegawai Bulog Seluruh Indonesia (KOPELINDO)/ Cooperative of Bulog Employees 31.73%
Government of Republic of Indonesia
Yayasan Bina Sejahtera Warga Bulog (YABINSTRA)/ Foundation of Bulog Employees
13.04%
86.28%
PT Bukopin Finance
Koperasi Perkayuan APKINDO MPI (KOPKAPINDO)/ Cooperative of Indonesia Timber
9.40%
5.05%
Public
40.78%
77.57%
PT Bank Syariah Bukopin
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Industry Positions “Market Position of Leading Indonesian Banks” Asset
Deposit
Rank 16th
Rank 15th
Mandiri
506,553
BRI
461,135
BCA
401,852
BNI
306,878
CIMB Niaga
175,677
Loan Rank 12th
Mandiri
375,043
Mandiri
306,833
BRI
371,142
BRI
304,806
BCA
341,163
BNI
235,726
CIMB Niaga
133,529
Danamon
132,682
Danamon
92,332
Panin
128,222
Panin
92,160
Permata
110,851
Permata
82,584 76,575
BII
97,719
BII
BTN
95,512
BTN
62,403
BCA
225,956
BNI
173,527
CIMB Niaga
Danamon
130,171 90,524
Panin
83,098
Permata
79,284
BII
68,856
BTN
67,145
OCBC NISP
68,962
OCBC NISP
51,381
HSBC
62,159
Mega
49,154
Citibank
61,895
Jabar Banten
47,700
Jabar Banten
58,836
UOB Indonesia
46,309
UOB Indonesia
58,827
Bukopin
45,459
Bukopin
58,168
HSBC
42,203
HSBC
35,402
Mega
58,039
Citibank
40,778
BTPN
34,103
Tokyo Mitsubishi
54,329
BTPN
39,699
Stanchart
31,286
BTPN
52,006
Stanchart
49,884
OCBC NISP
47,324
Bukopin
43,667
UOB Indonesia
43,016
Tokyo Mitsubishi
42,300
DBS Indonesia
26,793
Jabar Banten
31,236
Stanchart
24,162
Mega
30,991
ANZ Indonesia
21,564
Citibank
29,737 In billion Rp
Source: Bank’s Publication as of June 2012, Bank Only
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History and Key Milestones “Path of Glory” • Bank Umum Koperasi Indonesia (Bukopin) was formed
1970
• Changed its 1970 name into Bank Bukopin • Issued Bond
• Became a public-listed company via IPO • Acquisition of 24.73% shares of PT. Bank Syariah Bukopin (formerly PT Bank Persyarikatan Indonesia) • Acquisition of the shares of PT Bukopin Finance (formerly PT Indo Trans Buana Multi Finance)
• Became a limited liability company, PT Bank Bukopin
1989
1993
2003
• Issuance of Series A Bonds, Series B Subordinated Bonds and Sharia Mudharabah Bonds
• Rights Issue I • Spinned off Sharia Business Unit to PT Bank Syariah Bukopin in which Bank Bukopin owns 65.4%
2006
• Additional acquisition of the shares of PT Bank Syariah Bukopin, bringing the total shares to 65.44% • Paid off Series A Bonds, Series B Subordinated Bonds and Sharia Bonds
2008
2009
• Issuance of Subordinated Bond Sustainable I Bank Bukopin Period I Year 2012
2011
2012
• Rights Issue II • Increased ownership in PT Bank Syariah Bukopin became 77.57%
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2
Business Activity
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Core Business Bank Bukopin’s business activities of lending and funding includes four pillars which are Small and Medium Enterprises (SME), Micro Business, Consumer Business and Commercial Business.
Objective: To become a top bank through focusing on value SME
MICRO
CONSUMER
COMMERCIAL
“To be a key player in SME Banking”
“To be a market leader in business to Business Micro and a prime player for Rural Micro Banking”
“To be a Preferred Partner for Mass, Mass Affluent Customers and Business Owners ”
“Sustain Current Market Position”
MAIN BUSINESS PILLARS Supported by Treasury Business, International Banking and Fee-Based services
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3
Competitive Strengths
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Positioned for Growth Experienced and Competent in SMEs and Micro Business
Experienced Management
Leading Sophisticated Mid-Sized Bank
Established Control and Risk Management
Strategic Partnerships
Satisfying and Compatible Services Extensive Branch and Electronic Network 12
Strategic Partnerships “Building Partnership with Selected Strategic Partners” BULOG Taspen
• National Food Logistic Agency • Responsible for the maintenance of rice security, rice distribution and price control
Swamitra • Community-based cooperative
Jamsostek • State-owned social security company for private sector workers
• State-owned pension company for civil servants
Bukopin’s Strategic Partners
Perusahaan Listrik Negara (PLN) • Indonesia state-owned electricity company
Pertamina • Indonesia state-owned oil extraction company
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Strategic Partnership • Bank Bukopin is the major bank (60%) in financing Bulog. The other 2 banks are BRI (35%) and Bank Mandiri (5%). • Bank Bukopin has a long-standing partnership with Bulog. Around 26.22% of Bank Bukopin’s SME loan portfolio comprises loans to Bulog.
• Bank Bukopin provides financing to Bulog’s food distribution supply chain from end-to-end. • Bank Bukopin also assists Bulog with logistics information and accounting system management Bulog’s network:
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Regional Divisions
• Bank Bukopin provides full serviced financing to 6 areas of regional division of Perum Bulog : West Java, East Java, DKI Jakarta, Bali, South Sulawesi & South Kalimantan
101 Sub-Regional Divisions 30 Logistic Offices 463 Warehouses
• Since the late 1990s, Bank Bukopin has developed Swamitra model. We provide Management Assistance, System and Procedure and IT System.
• Today, Bank Bukopin partners with around 613 Swamitra with more than 447.600 members across Indonesia. Cooperative members are mostly in the micro-business segment. • Bank Bukopin provides loans to Swamitra, which then channels the loan to its members (two step loan). • In Swamitra lending, members of the cooperative keep an eye on one another, to ensure repayments so as to protect the profitability of the cooperative. This leads to a low NPL ratio for Swamitra loans. Savings and loan cooperative
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Strategic Partnership • Jamsostek manages social security for 36.7 million private sector workers, of which 10 million are active members, with total assets of over Rp. 116.7 trillion (US$ 12.3 Tn).
• Bank Bukopin has 31 outlets co-located at Jamsostek’s offices. These outlets enable the deposit of contributions by and payment of Jamsostek claims to its members.
Social security for private sector workers
• Jamsostek owns a 6.14% stake in PT Bank Syariah Bukopin, in which Bank Bukopin controls 77.57% (the remaining shareholders are local funds). • In line with Jamsostek’s ongoing transformation – from providing merely financial benefit to “total benefit” for its members (including housing and health benefits) – Bank Bukopin is collaborating with Jamsostek to provide financing and cash management for the housing.
• Appointed as one of 16 institutions as pension fund payment agent. • Bank Bukopin implemented personal financing to Taspen pensioners in 2Q 2010, under its micro financing segment. • Repayments are through deduction from pension payments. • Outstanding loans under the Taspen program have grown significantly, to around Rp.1.69 trillion by September 2012. Pension scheme for civil servants
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Strategic Partnership • Bank Bukopin currently serves 11.43 million out of 40 million PLN customers who pay their bills through around 48 banks.
• Bank Bukopin was the first commercial bank in Indonesia to establish the Payment Point On-line Bukopin (PPOB) over 3 years ago. It now has more than 11.000 PPOBs across Indonesia. • PPOBs can provide services to PLN customers such as billing payment, new PLN installation and PLN prepaid card for electricity. State-owned electricity company
• The PLN partnership has provided a boost to Bank Bukopin’s fee-based income, cash management services, CASA accumulation and loan portfolio (note: As of 30 Sept 2012 fee-based income contributes around 21% of Bank Bukopin’s total income).
• Bank Bukopin is one of 5 banks given exclusive right by Pertamina to receive payment for Pertamina’s products (fuel and non-fuel). This arrangement commenced in early 2010. • Bank Bukopin provides banking facilities (letters-of-credit/trade financing) and cash management services for Pertamina’s operations. State-owned oil extraction company
• Pertamina-related transactions via Bank Bukopin currently average Rp.1.9 trillion per month.
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Satisfying and Compatible Services
Providing arrays of products and services to fulfill customer needs
Using technology as a strategic means to deliver services
Improving human resources competencies as a key factor
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Extensive Branch and Electronic Network “Solid Infrastructure For Our Growth”
Nanggroe Aceh Darussalam
As of Sept 30, 2012
East Kalimantan
North Sumatera
Branches
West Kalimantan
Riau Island Riau
North Sulawesi
36
Sub Branches
107
Cash Offices
136
Jambi South Sumatera
West Sumatera
DKI Central Jakarta Java Lampung
Banten
South Kalimantan West Nusa Tenggara South Sulawesi
D.I.Yogyakarta East Java
West Java
Bali
Micro-Service Offices
90
Payment Point
42
Pickup Service
8
Total outlet
419
ATMs
368
Mini ATMs
779
East Nusa Tenggara
• Bank Bukopin’s network is in 22 out of 33 provinces in Indonesia. • Bank Bukopin’s ATM card gives its holder access to all major ATM networks in Indonesia (including ATM BCA Prima, ATM Bersama and ATM Plus), comprising more than 368 ATMs. • Bank Bukopin’s 11.000 PPOB outlets across Indonesia reaches out to the urban and rural population. • Our IT system provides real-time monitoring of each branch’s transactions and positions.
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Established Controls and Risk Management “Solid Risk Management System”
• Implementation of risk management in Bank Bukopin covered 8 main risks * credit risk * legal risk * market risk * reputational risk * liquidity risk * strategic risk * operational risk * compliance risk • Bank Bukopin has developed models and systems for risk management • Bank Bukopin also regularly conduct stress testing, to forecast the impact of any external shock to the Bank’s performance • The Risk Management Division is independent from risk taking units • Beside the internal audit activity, there’s also internal control units embedded to the risk taking units and an independent unit of compliance, all to establish comprehensive internal control system
Active observation by Boards through Committee
• Risk Management Systems is executed according to internal and external rules
• Bank Bukopin has set and continously review various internal policies and guidance for controlling all risks faced Risk management executed by each related unit (risk taking units) • All transactional execution had to go through checker and approval system. Bank-wide risk management by Risk Management Division
• There’s also clear segregation between business and operational units
Internal control process
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Experienced Management “Directors”
Glen Glenardi, President Director • •
26 years of experience. Past experience includes Director of Micro and SME (2000-2005), Director of Cooperatives and Small Enterprises (1999), Head of Credit for Cooperatives and Small Enterprises (1992-1999) and Head of Cirebon Branch (1989-1992).
Tri Joko Prihanto, Finance & Planning Director • •
26 years of experience. Past experience includes Director of Operations (2000-2006), Corporate Secretary (1996-2000), Group Business Head (1995-1996), Head of Human Resources (1993-1995) and Head of Business Development for Cooperatives (1991-1993).
Agus Hernawan, Services & Distribution Director • •
26 years of experience. Past experience includes Director of Consumer Banking (2000-2006), Group Business Head (1997-2000) and Head of Bukopin branches (1988-1997).
Sunaryono, Risk Management, Compliance and Human Resources Development Director • •
24 years of experience. Past experience includes Director of Risk Management and Compliance (2003-2006), Head of Business Development for Cooperatives and Small Enterprises (2000-2003), Group Head of Central Java Province (1997-2000) and Head of Commercial Branches Supervision (1996-1997).
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Experienced Management “Directors”
Sulistyohadi DS, SME and Cooperatives Director • •
24 years of experience. Past experience includes Group Head for Institutional Business (1999-2005) and some positions within Bank Bukopin since 1988.
Lamira S. Parwedi, Consumer Director • •
26 years experience. Past experience includes Group Head for Commercial Business (2000-2006), Group Business Head (19952000), Head of Commercial Business Segment (1993-1995).
Mikrowa Kirana, Commercial Director •
•
26 years experience. Past experience includes Group Head for Commercial Business (2001-2006), Group Head for Commercial Business in West and Central Java (2000-2001), Group Business Head (1997-2000) and Head of Kupang and Denpasar Branches (1992-1996).
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Experienced Management “Commisioners”
Mulia P. Nasution, President Commissioner • •
Currently Special Sfaff to Minister of Finance (Aug 2011 – present). Past experience includes Secretary General of Finance Ministry (2006- Aug 2011), Director General Treasury of Finance Department (2004), Head of National Financial Accounting Body (2001), Head of Data Processing and Budget Information (1999), Director of Government Treasury and Cash (1998), Director of Budget Development II (1995).
Deddy S.A. Kodir, Commissioner • •
Currently Director for Human Resources & General Affairs of Bulog (Jan 2011-present) and Head of Kopelindo (2008-present). Past experience includes Director of Planning and Business Development of Bulog, Head of Human Resources Department of Bulog (2008-2011). Has over 30 years of working experience at Bulog.
Syamsul Effendi, Independent Commissioner • •
Currently Advisor of PT Wana Subur Lestari (2011-present). Past experience includes Secretary of Kopkapindo, Associate Director of General Affair Manager at PT Kutai Timber Indonesia (2007-2011) and Manager General Affair at PT Kutai Timber Indonesia (2001-2006).
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Experienced Management “Commisioners”
Yoyok Sunaryo, Independent Commissioner Currently Entrepreneur in Agro Business. • Past experience includes Head of Milk Cooperatives Indonesia (1997-2002), PUSKUD facilitator (19992000), Head Coordinator at Milk Cooperative Indonesia Mojosongo (1986-1993), Manager at Milk Cooperative of Indonesia Cirebon (1984-1986). •
Margustienny, Independent Commissioner • •
Currently Civil Servant of Finance Ministry (Feb 2012-present). Past experience includes Head of Public Service Agency Housing, Finance Centre of State Ministry of Housing (2010-Feb 2012). Has over 30 years of working experience at Finance Ministry.
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4
Financial Summaries
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Key Financials – Balance Sheet Total Assets (Rp. Tn)
51.8
57.2
Period
Percentage
%YoY
18.71%
% Y to D
7.44%
61.4
Asset increased year-on-year by 18.71% from Rp 51.8 Tn to Rp 61.4 Tn, which was supported by loan growth. Sep-11
Dec-11
Sep-12 *
Total Loans (Rp. Tn)
Period 42.1
40.7
Percentage
%YoY
17.25%
% Y to D
3.37%
35.9
Sep-11 * Unaudited
Dec-11
Sep-12 *
25
Key Financials – Balance Sheet “Increasing Equity is Our Foundation to Keep Our Growth” Total Third Party Deposits (Rp. Tn) Time Deposit
Savings
Current Account
43.5 9.3
47.9
50.4
11.1
11.5
7.2
8.1
8.3
27.0
28.7
30.6
Sep-11
Dec-11
Sep-12 *
Period
Percentage
%YoY
15.70%
% Y to D
5.08%
Deposits increased year-on-year by 15.70% from Rp 43.5 Tn to Rp 50.4 Tn. The largest increases came from time deposit and saving account.
Total Shareholders’ Equity (Rp. Tn) Period 4.4
4.8
4.1
Sep-11 * Unaudited
Dec-11
Percentage
%YoY
16.81%
% Y to D
9.20%
Sep-12 *
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Overview of Loan Portfolio Consumer Commercial Micro Small and Medium Enterprise (SME), including Bulog Loan segment Rp.35.9Tn 8.13%
Rp.42.1 Tn
Micro
< Rp.500 M
8.76% SME
35.86%
38.28%
6.07%
Commercial
Rp.500 M – Rp.25 Bn > Rp.25 Bn
6.56%
49.94%
46.40% Bulog 26.22% *)
Bulog 37.93% *)
Sep 11
Loan size
Sep -12** * From SME Loan ** Unaudited
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Funding Composition Funding Composition (by product) Current
Savings
Time Deposit
Rp.43.5 Tn
Rp.50.4Tn
21.38%
22.86%
16.52%
16.55%
62.10%
Sep-11
Funding Composition (by segment)
SME 33.11%
Commercial 35.71%
Commercial 37.56%
SME 30.93%
60.59%
Sep-12*
Consumer 31.18%
Consumer 31.51%
Sep-11
Sep-12*
• We target to increase our current and savings deposits. The increase has been achieved through product development and expanding our network, particularly our electronic network. • We have also leveraged our payment and cash management services.
* Unaudited
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Core & Supplementary Capital
0.54%
0.57%
4.32%
0.58%
Core Capital
Supplementary Capital
11.25%
12.16%
12.96%
11.93%
2010
2011
Sept- 11
Sept-12 *
An increase in CAR in September 2012 due to the issuance of subordinated bonds in the first quarter of 2012.
* Unaudited
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Key Financials – Earning “It is a growing company” Earning Before and After Tax (Rp. Bn) Earning Before Tax
Earning After Tax
940.4 667.0
620.8 492.6
Dec-10
617.2 457.9
Dec-11
Net profit year-on-year increased by 34.81% from Rp 457.9 billion to Rp 617.2 billion. This was due to an increase of net interest income and fee based income.
* Unaudited
795.1
738.2
Sep-11
Sep-12 *
Periode
% EBT
% EAT
%Y o Y
28.08%
34.81%
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Key Financials – Income Statement “Better Net Interest Income” Net Interest Income (Rp. Tn)
Net Interest Margin (NIM) (%)
4.75 4.55 1.8
Dec-10
2.1 1.6
Dec-11
Sep-11
Public Service
Credit Card
Rp. 519.2
Rp. 636.5
Rp. 423.0
11.75%
13.64%
14.26%
14.11%
13.23% 8.89%
34.31%
33.84%
39.68%
38.41%
42.39%
Dec-10
Dec-11
Sep-11
* Unaudited
35.49%
4.52
Sep-11
Sep-12 *
1.8
Sep-12*
Fee Based Income Treasury
4.54
Others Rp. 482.5
Dec-10
Dec-11
Period %YoY
Procentage 15.49%
11.77% 13.95% 37.17%
Net Interest Income year-onyear increased by 15.49% from Rp 1.6 Tn to Rp 1.8 Tn.
37.11%
Sep-12 *
31
Key Ratio Loan-to-Deposit Ratio (LDR) (%)
82.55
85.01
Cost-to-Income Ratio (CIR) (%)
82.63 59.70
59.68 59.26
Sep-11
Dec-11
Sep-12 *
Sep-11
Dec-11
Sep-12 *
• LDR year-on-year increased by 0.08% from 82.55% to 82.63% • We will maintain our LDR to be in-line with Bank Indonesia’s range at 78%-100%. • We target to manage our Cost to Income Ratio around 60%.
* Unaudited
32
Key Ratios Gross Non-Performing Loan (NPL) (%)
Net Non-Performing Loan (NPL) (%) *
3.42 2.88
3.13 2.47
2.14 2.01
Sep-11
•
Dec-11
Sep-12 *
Sep-11
Dec-11
Sep-12 *
Our gross NPL improved from 3.42% in September 2011 become 3.13% in September 2012 and net NPL from 2.47% in September 2011 become 2.01% in September 2012.
* Unaudited
33
Key Ratios “CAR Still Supports Our Expansion”
Return-on-Equity (ROE) (%) 20.10
Return-on-Assets (ROA) (%) 19.51
16.76 1.66
Sep-11
Sep-12 *
Dec-11
Sep-11
1.87
Dec-11
1.86
Sep-12 *
61.59 Capital Adequacy Ratio (CAR) (%)
13.54
16.25
12.71
• We target to maintain ROE of 20% by the end of 2012. • We target to maintain CAR above 12%.
Sep-11 * Unaudited
Dec-11
Sep-12 *
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Awards
“Infobank Platinum Awards 2011” Awarded for Financial Performance Excellence Bank 2002-2011.
“Indonesia Banking Award Best Performance Banking 2012” Awarded for National Private Bank Category (Asset > 50 T)” from Tempo Magazine and Perbanas.
“Property & Bank Awards 2012” Awarded for The Best Overall Performance Banking.
“First Bank ISO 20000” Awarded for being the first bank in Indonesia that received the Certification ISO 20000-1:2011 of Quality Management System.
“Certification of ISO 20000-1:2011” For providing the electric utility connection system and the core banking saving system from British Standards Institute.
“Infobank Platinum Trophy 2012” Awarded for Financial Performance Excellence Bank 2002-2011.
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5
Strategic Plan
36
Strategic Plan Strengthening the Structure of Capital Enhance the Role of Risk Management and Compliance Aspects
Strengthening of Corporate Culture
Improvement of Information Systems, Technology and Procedures
BECOME A TRUSTED BANK FOR FINANCIAL SERVICES
Enhances Strategic Partnership
Enlarge the Composition of SMEs, Micro and Consumer Business
Focus on Excelling in Business Segments
Improvements of value chain and cross selling
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Thank You
38
Q&A
39