BANK BUKOPIN OVERVIEW As of December 2012
BANK BUKOPIN
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that could cause actual results, performance or events to differ materially from those in the statements as originally made.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
Overview
Business Activity Competitive Strengths Financial Summary
Strategic Plan
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Overview
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Financial Highlight Total Assets (Rp. Tn)*
Total Third Party Deposits (Rp. Tn) * Time Deposit
57.2
2011
65.7
2012
Current Account
47.9
54.0
11.1
13.8
8.0
8.4
28.8
31.8
2011
2012
Earning (Rp. Bn) *
Total Loans (Rp. Tn) * 45.5
Earning Before Tax
Earning After Tax 1,059.4
940.4
830.5 738.2
40.7
2011
Savings
2012
2011
2012 * Audited, Consolidated
** Unaudited
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Shareholders Structure as of 31 December 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%
88.26%
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 Position Asset Rank
Rank
MANDIRI
519,572
BRI
469,018
BCA
421,093
BNI
299,705
NIAGA PANIN DANAMON PERMATA BII BTN OCBC NISP BANK JABAR BANTEN HSBC
186,743 133,714 127,609
115,053 101,018 98,756 71,436 65,107 63,161
MEGA
59,193
BUKOPIN
58,646
UOB INDONESIA
58,626
CITIBANK
57,899
BTPN
56,483
STANCHART
Loan
Deposit
15th
50,277
Rank 13th
13th
MANDIRI
386,335
BRI
373,137
BCA
357,822
BNI
231,516
NIAGA
140,723
MANDIRI
319,154
BRI
318,007
BCA
237,653
BNI
177,844
NIAGA
129,238
PANIN
99,632
DANAMON
PERMATA
92,328
PERMATA
89,559
DANAMON
88,531
PANIN
88,307
BII
79,940
BTN
76,566
BTN
69,331
BII
71,355
92,192
OCBC NISP
53,618
OCBC NISP
50,365
BANK JABAR BANTEN
50,485
UOB INDONESIA
43,722
BUKOPIN
47,756
BUKOPIN
39,460
MEGA
47,166
BTPN
37,085
UOB INDONESIA
46,938
HSBC
36,620
HSBC
42,785
BANK JABAR BANTEN
32,790
BTPN
42,583
STANCHART
32,525
CITIBANK
39,787
CITIBANK
30,628
MEGA
29,278
STANCHART
26,120
In billion Rp
Source: Bank’s Publication as of Sept 2012, Bank Only
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History and Key Milestone
1970
1989
1993
2003
2006
2008
2009
2011
2012
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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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Competitive Strenghts
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Positioned for Growth Experienced and Competent in SMEs and Micro Business
Strategic Partnerships
Experienced Management
Leading Sophisticated Mid-Sized Bank Established Control and Risk Management
Satisfying and Compatible Services
Extensive Branch and Electronic Network
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Strategic Partnerships BULOG
Taspen
• National Food Logistic Agency
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 • Responsible for the maintenance of rice security, rice distribution and price control. • Bank Bukopin is the major bank (60%) in financing Bulog and the other banks are BRI (35%) and Mandiri (5%). • Bank Bukopin has a long-standing partnership with Bulog. Around 33.7 % 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. Bulog’s network: 26
Regional Divisions
101 Sub-Regional Divisions
• Bank Bukopin also assists Bulog with logistics information and accounting system management • 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
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 625 Swamitra with more than 457.000 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 over 40 million private sector workers, of which over 11 million are active members, with total assets of over Rp. 137 trillion (US$ 14.1 Tn).
• Bank Bukopin has 34 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, to around Rp.1.54 trillion by December 2012. Pension scheme for civil servants
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Strategic Partnership • Bank Bukopin currently serves 13 million out of 42 million PLN customers who pay their bills through around 56 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 15.000 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 31 Dec 2012 fee-based income contributes around 8.11 % 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 April 2009. • 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.2.3 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 As of Dec 31, 2012
Nanggroe Aceh Darussalam
East Kalimantan
North Sumatera
Branches Sub Branches Cash Offices
36
Payment Point
42
Pickup Service
8
North Sulawesi
Jambi South Sumatera
140 87
Total outlet
Riau
107
Micro-Service Offices
West Kalimantan
Riau Island
West Sumatera
DKI Central Jakarta Java Lampung
Banten
D.I.Yogyakarta
420
ATMs
381
Mini ATMs
923
South Kalimantan West Nusa Tenggara South Sulawesi
East Java West Java
Bali
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 30.000 ATMs. • Bank Bukopin’s 15.000 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 Active observation by Boards through Committee
Risk management executed by each related unit (risk taking units)
Bank-wide risk management by Risk Management Division
Internal control process
• 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
• All transactional execution had to go through checker and approval 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
• There’s also clear segregation between business and operational units
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Experienced Management Glen Glenardi, President Director
Tri Joko Prihanto, Finance & Planning 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) - Head of Cirebon Branch (1989-1992)
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) - 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) - 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) - Head of Commercial Branches Supervision (1996-1997)
Sulistyohadi DS, SME and Cooperatives Director 24 years of experience Past experience includes: - Group Head for Institutional Business (1999-2005) - Some positions within Bank Bukopin since 1988
Lamira S. Parwedi, Consumer Director 26 years of experience Past experience includes: - Group Head for Commercial Business (2000-2006) - Group Business Head (1995-2000) - Head of Commercial Business Segment (1993-1995)
Mikrowa Kirana, Commercial Director 26 years of 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) - Head of Kupang and Denpasar Branches (1992-1996)
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Experienced Management Mulia P. Nasution, President Commissioner Currently Chairman of The Supervisory Board of State`s Accounting School (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
Yoyok Sunaryo, Independent Commissioner
Currently Chairman of Kopelindo (2008-present) Past experience includes : -Director of Human Resources & General Affair of Bulog (2011-2012) - Director of Planning and Business Development of Bulog (2009-2011) - Head of Human Resources Department of Bulog (2008-2011) - Has over 30 years of working experience at Bulog
Currently Entrepreneur in Agro Business. Past experience includes : - Head of Milk Cooperatives Indonesia (1997-2002) - PUSKUD facilitator (1999-2000) - Head Coordinator at Milk Cooperative Indonesia Mojosongo (1986-1993) - Manager at Milk Cooperative of Indonesia Cirebon (1984-1986)
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) -Manager General Affair at PT Kutai Timber Indonesia (2001-2006)
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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Financial Summaries
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Key Financial – Balance Sheet Total Assets (Rp. Tn)
Period %YoY
57.2
Percentage 14.9%
65.7
Asset increased year-on-year by 14.9% from Rp57.2Tn to Rp65.7Tn, which was supported by loan growth. 2011
2012
Total Loans (Rp. Tn)
Period
40.7
45.5
2011
2012
%YoY
Percentage 11.8%
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Key Financial – Balance Sheet Total Third Party Deposits (Rp. Tn) Savings
Currenct Account
Time Deposit
Period %YoY
47.9
54.0
11.1
13.8
8.0
8.4
28.8
31.8
2011
2012
Percentage 12.7%
Deposits increased year-on-year by 12.7% from Rp47.9Tn to Rp54.0Tn. The largest increases came from time deposit and savings
Total Shareholders’ Equity (Rp. Tn) 4.9 4.4
2011
Period %YoY
Percentage 11.4%
2012
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Overview of Loan Portofolio Consumer Commercial Micro Small and Medium Enterprise (SME), including Bulog Loan segment Rp.40.7 Tn
Rp.45.5 Tn
9.1%
9.9%
33.6%
30.0%
5.7%
5.8%
51.6%
SME Commercial
< Rp.500 M Rp.500 M – Rp.25 Bn > Rp.25 Bn
54.3% Bulog 40.4% *)
2011
Micro
Loan size
Bulog 33.7%
*)
2012 * From SME Loan
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Funding Composition
Funding Composition (by product) Current
Savings
Time Deposit
Rp.47.9 Tn
Rp.54.0 Tn
23.2%
25.4%
16.8%
15.6%
60.0%
59.0%
2011
Funding Composition (by segment)
SME 35.6%
2012
Commercial 31.6%
Consumer 32.8%
2011
SME 36.7%
Commercial 32.5%
Consumer 30.8%
2012
• 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.
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Core & Supplementary Capital Core Capital
Supplementary Capital
4.25% 0.54%
CAR 16.34%
12.16%
2011
CAR 12.71%
12.09%
2012
An increase in CAR in Dec 2012 due to the issuance of subordinated bonds in the first quarter of 2012 and increase of net profit.
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Key Financial – Earning Earning Before and After Tax (Rp. Bn) Earning Before Tax
Earning After Tax 1,059.4
940.4
830.5 738.2
2011
Net profit year-on-year increased by 12.5% from Rp738.2 billion to Rp830.5 billion. This was due to an increase of net interest income and fee based income
2012
Periode
% EBT
% EAT
%Y o Y
12.7%
12.5%
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Key Financial – Balance Sheet Net Interest Income (Rp. Tn)
Net Interest Margin (NIM) (%) 4.56 4.56
4.55 4.55
2.5
2.1
2011
2012
2011 2011
2012 2012
Fee Based Income Treasury
Public Service
Rp. 636.6
Rp. 663.7
13.64%
10.47%
14.11%
8.44%
33.84%
43.22%
38.41%
32.87%
2011 * Unaudited
Credit Card
Others
Period %YoY
Procentage 19.0%
Net Interest Income year-onyear increased by 19.0% from Rp2.1Tn to Rp2.5Tn.
2012
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Key Ratio Loan-to-Deposit Ratio (LDR) (%)
85.01
Cost-to-Income Ratio (CIR) (%)
83.81 60.50 59.94
2011
2012
2011
2012
• LDR year-on-year decreased by 1.2% from 85.01% to 83.81% • 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%.
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Key Ratio Gross Non-Performing Loan (NPL) (%)
Net Non-Performing Loan (NPL) (%) *
2.88 2.66
2.14 1.56
2011
•
2012
2011
2012
Our gross NPL stood at level 2.66% and net NPL at 1.56% in December 2012.
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Key Ratio Return-on-Equity (ROE) (%) 20.10
2011
Return-on-Assets (ROA) (%)
19.47
2012
1.87
1.83
2011
2012
61.59 Capital Adequacy Ratio (CAR) (%)
16.34
12.71
2011
• We target to maintain ROE around 20% by the end of 2012
• We target to maintain CAR above 12%
2012
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Award
“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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Award “1st The Best Bank 2012 in Compliance” Awarded for National Private Bank Category (Asset > 25 - 100 T ) from Business Review Magazine and Perbanas.
“ 2nd The Best Bank 2012 in Corporate Communication” Awarded for National Private Bank Category (Asset > 25 - 100 T ) from Business Review Magazine and Perbanas.
“Certification of ISO 27001:2005” For providing for information security from Bureau Veritas Certification.
“ 3rd The Best Bank 2012 in Corporate Social Responsibilty” Awarded for National Private Bank Category (Asset > 25 - 100 T ) from Business Review Magazine and Perbanas.
“Indonesian Bank Loyalty Index (IBLI)” Awarded for Saving Account Conventional Banking (Asset > 75 T ) from Infobank Magazine and MarkPlus Insight.
“Indonesian Bank Loyalty Index (IBLI)” Awarded for Top 10 Credit Card for Loyalty Program from Infobank Magazine and MarkPlus Insight.
“ 2nd The Best Bank 2012 in Financial Aspect” Awarded for National Private Bank Category (Asset > 25 - 100 T ) from Business Review Magazine and Perbanas.
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Strategic Plan
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Strategic Plan
Enhance the Role of Risk Management and Compliance Aspects
Strenghtening of Corporate Culture
Inprovement of Information Systems, Technology and Procedures
Strenghtening the Structure of Capital
Become a Trusted Bank for Financial Services
Enlarge the Composition of SME`s, Micro and Consumer Business
Focus on Excelling in Business Segments
Improvements of value chain and cross selling Enhances Strategic Partnership
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Thank You
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Q&A
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