Highlights of 1H12
• Profit After Tax and Minority Interest (PATAMI) grew strongly YoY by 61% to Rp592 billion
• Net interest Income increased by 32%
• Net Interest Margin (NIM) increased to 5.89%
• Assets grew by 21% exceeding Rp100 trillion
• Loans grew by 24% to Rp73.5 trillion
• Deposits from customers increased 16% to Rp76.6 trillion
• Operating income after provision grew by 63% to Rp710 billion
• Return on equity of 15.72%, up from 9.94%
• Assets quality improved with gross NPL stood at 2.11% and net NPL of 0.98%
• Capital adequacy ratio (CAR) with credit, operational and market risks remains healthy at 12.56%
• Earnings per share up 61% to Rp10.51
PT Bank Internasional Indonesia Tbk (“BII” or the “Bank”) today reported a net profit after tax and minority interest (PATAMI) of Rp592 billion for the six months ended 30 June 2012, up 61% from Rp367 billion (1 USD = IDR9,393) as of 30 June 2011. This was the highest ever PATAMI recorded by BII since 1997. The Bank’s profit before tax and minority interest reached Rp824 billion or up 59% compared to the previous corresponding period.
The improved performance was mainly supported by solid growth across the Bank’s core businesses, improved assets quality, and its continuing overall operational improvements.
The Bank continued to book strong loan growth during the semester at 24% from Rp59.5 trillion in June 2011 to Rp73.5 trillion in June 2012. Global Wholesale Banking loans accounted for 38% of total loans, while SME and Consumer Loans contributed 25% and 36% respectively.
The consolidated loan to deposit ratio (LDR) stood at 95.39%, compared with 89.95% in the previous corresponding year. The LDR for the Bank only (without subsidiaries) remains at a healthy level at 89.40%, while the Bank’s modified consolidated LDR which includes senior bond, long term borrowings, and customer deposits stood at 82.40% as of 30 June 2012.
Total deposits from customers increased by 16% to Rp76.6 trillion as of 30 June 2012, up from Rp65.9 trillion recorded on 30 June 2011. Savings accounts grew by 9% to Rp16.0 trillion from Rp14.6 trillion, Current Accounts grew by 12% to Rp13.5 trillion from Rp12.1 trillion a year earlier, and time deposits increased by 20% to Rp47.1 trillion from Rp39.2 trillion. This deposit growth has brought the Bank’s total assets to Rp102.0 trillion from Rp84.3 trillion as of 30 June 2011, up by 21%.
Other key drivers which supported the Bank’s improved performance during the semester were:
• The Bank’s growth across its business segments was accompanied by improved assets quality. BII’s gross non performing loans (gross NPL) level was at 2.11% as of 30 June 2012 from 2.45% as of 30 June 2011 and net NPL improved to 0.98% from 1.22%. The improvement in assets quality was achieved mainly through the Bank’s prudent and disciplined banking practices as reflected by continuous effort in strengthening its risk management and credit processing as well as closer monitoring of existing borrowers.
• Provision expenses as of 30 June 2012 were stable at Rp555 billion despite the 24% growth in loans. The lower provision expenses reflected the Bank’s improved assets quality.
• The Bank’s net interest income (NII) improved by 32% YoY from Rp1.9 trillion in June 2011 to Rp2.6 trillion in June 2012 due to the lower cost of funds that the Bank enjoyed throughout the semester. The strong competition among banks has put pressure on the Net Interest Margin (NIM) across the banking industry; however, in June 2012 BII was able to improve its NIM at 5.89% from 5.43% in the previous year.
• Fee based income declined 8% from the first semester last year mainly due to the reduction of loan administration fees related to BII’s subsidiary which consolidated its motorcycle financing with the prime focus of improving its assets quality. The reduction was, however, offset by strong growth in interest income.
• Despite the Bank’s aggressive network expansion as well as investment in both IT infrastructure and human capital, the Bank has managed the increase in overhead costs at 12% from Rp2.2 trillion in June 2011 to Rp2.4 trillion in June 2012. During the first half of 2012, the Bank added 24 new branches and 66 ATMs. As of 30 June 2012, the Bank had a total of 375 offices (including Syariah and overseas branches) and 1,218 ATMS including 65 Cash Deposit Machines. The Bank is fully committed to continue investing in its network and infrastructure to serve customers better and provide them greater convenience.
Comments by BII’s President Director, Dato’ Khairussaleh Ramli:
“I am pleased to report that BII has passed the Rp100 trillion milestone by recording total assets of Rp102.0 trillion as of June 2012. The Bank has also been able to record annualized double digit ROE of 15.72%, which is the first for the Bank since 1997. The improved performance demonstrates that our long journey and efforts in regaining our growth momentum have now started to bear fruits. I am confident that our sustainable growth plan across all business segments will further improve our performance as we continue to capture higher market share while ensuring good assets quality.”
“In the pursuit of business growth, BII will continuously uphold its high standard in risk management, corporate governance and prudent banking practices to ensure the soundness of the Bank.”
“After 53 years of service and growing together with our customers and communities, we have initiated another turnaround strategy in 2012 to refine our vision. Tailoring financial services and offering business solutions to fulfil customers’ needs and at the same time providing excellent service will enable us to become the Leading Relationship bank in Indonesia by truly being in the community, serving through customized products & solutions and delivering high quality of service.”
Comments from President Commissioner BII and Chairman of Maybank Group, Tan Sri Dato’ Megat Zaharuddin bin Megat Mohd Nor:
"BII's strong performance for the first half of 2012 is testimony to the tremendous efforts made by our entire team to pursue profitable growth across various communities in the Indonesian archipelago. I am confident that with increasing synergies with the rest of the Maybank Group, BII's customers and other stakeholders here will see their relationships with us delighting them further as we humanise financial services.”