30 September 2012 Financial Highlights
• Profit Before Tax (“PBT”) increased significantly by 62% to Rp1.3 trillion
• Profit After Tax and Minority Interest (“PATAMI”) grew strongly by 66% to Rp922 billion
• Net interest Income increased by 28%
• Net Interest Margin (NIM) increased to 5.88%
• Assets grew by 16% to Rp105.6 trillion
• Loans grew by 22% to Rp75.9 trillion
• Deposits from customers increased by 20% to Rp79.8 trillion
• Return on equity of 16.20%, up from 10.08%
• Asset quality improved with gross NPL standing at 2.08% and net NPL of 0.87%
• Capital adequacy ratio (CAR) with credit, operational and market risks remains healthy at 12.33%
• Earnings per share up 66% to Rp16.4
PT Bank Internasional Indonesia Tbk (“BII” or the “Bank”) today reported a record net profit after tax and minority interest (PATAMI) for the nine months ended 30 September 2012 of Rp922 billion, up 66%. The Bank’s profit before tax also increased significantly by 62%, reaching a milestone Rp1.3 trillion compared to Rp790 billion in the previous corresponding period.
The improved performance was achieved on the back of solid growth across the Bank’s core businesses, improved asset quality including at the subsidiaries, as well as continuing overall operational improvements.
The Bank booked strong loan growth of 22% during the first nine months 2012 with total loans increasing from Rp62.0 trillion in September 2011 to Rp75.9 trillion in September 2012. Global Wholesale Banking loans which include corporate and commercial loans accounted for 37% of total loans, while SME and Consumer Loans contributed 28% and 35% respectively.
The consolidated loan to deposit ratio (LDR) stood at 94.26%, a marginal increase from 92.64% in the previous corresponding year. The LDR for the Bank only (excluding subsidiaries) remains at a healthy level of 88.47%, while the Bank’s modified consolidated LDR which includes senior bond, long term borrowings and customer deposits stood at 81.96% as of 30 September 2012.
Total deposits from customers increased by 20% to Rp79.8 trillion as of 30 September 2012, against Rp66.7 trillion recorded as at 30 September 2011. Savings accounts grew by 14% to Rp16.8 trillion, Current accounts grew by 20% to Rp13.0 trillion, and Time Deposits increased by 22% to Rp50.0 trillion. This deposit growth contributed to the growth of the bank’s total assets to Rp105.6 trillion, increasing from Rp90.9 trillion a year ago or a 16% increase.
Other key drivers which supported the Bank’s improved performance during the nine months 2012 were as follows:
• Strong improvement in asset quality with BII’s gross non performing loans (gross NPL) level improving to 2.08% as of 30 September 2012 from 2.54% as of 30 September 2011. Net NPL improved to 0.87% from 1.37%. The improvement in asset quality was achieved mainly through the Bank’s prudent and disciplined banking practices as reflected by continuous effort in strengthening risk management and credit processing as well as closer monitoring of existing borrowers.
• A 5% decline in provision expenses to Rp868 billion as of 30 September 2012 compared to Rp912 billion a year earlier, further strengthening the Bank’s asset quality.
• A 28% YoY improvement in the Bank’s net interest income (NII) from Rp3.1 trillion in September 2011 to Rp3.9 trillion in September 2012 arising from improvement in asset quality. Despite the strong competition among banks which put pressure on the Net Interest Margin (NIM) across the industry, BII was able to improve its NIM in September 2012 to 5.88% from 5.53% in the previous year. This was achieved through continuous improvement in the Bank’s cost of funds.
• Maintaining our Fee based income at a stable level of Rp1.6 trillion despite the reduction of loan administration fees related to BII’s subsidiary which consolidated its motorcycle financing with the aim of improving asset quality. Excluding the motorcycle financing business the bank’s fee income grew by 9%. The reduction in fee based income was, however, offset by strong growth in interest income.
• Managing the increase in overhead costs at 16% despite the Bank’s aggressive network expansion as well as investment in both IT infrastructure and human capital. Overhead costs stood at Rp3.6 trillion in September 2012 compared with Rp3.1 trillion in September 2011. During the nine months of 2012, the Bank added 38 new branches and 85 ATMs. The Bank is fully committed to continue investing in its network and infrastructure to serve customers better and strengthen its reach in the country.
Comments by BII’s President Director, Dato’ Khairussaleh Ramli:
“Our outstanding results for the nine months 2012 bear testimony to our commitment towards sustainable business growth, improvement in asset quality, increasing efficiency and overall operational improvement. We are poised for further growth in profitability as we remain focus in growing our core business segments, whilst we simultaneously continue to build capacity and capability, and develop our key assets being our talent. I am confident that our performance will further improve as we continue to strengthen our fundamentals and pursue business growth responsibly.”
“To support our growth plan, we are strengthening our capital base with the issuance of a Rp1 trillion Tier II subordinated debt. This and the issuance of senior bond of Rp2 trillion will also provide the Bank with additional liquidity to our business. We expect the issuance of both the subordinated bond and senior bond to be completed by end of October 2012.
“Going forward, we have also refreshed our strategic intent as our differentiator in serving our stakeholders, whereby we aspire to become the leading relationship bank in Indonesia by truly being in the community, serving through customised products and 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:
“The strong performance over these nine months has been underpinned by our determination to leverage on growth opportunities arising from Indonesia’s rapid economic expansion.
We have set ourselves strong targets, and our intention is to further develop our competitive edge through synergies within the Group as well as sustain the momentum in building a solid brand presence and perception in Indonesia. Supported by efforts in boosting our human capital and risk management practices, we are confident that BII is on track to becoming one of Indonesia’s leading relationship banks.”