PT Bank Rakyat Indonesia (Persero) Tbk. FY2016 - Financial Update - - PowerPoint PPT Presentation

PT Bank Rakyat Indonesia (Persero) Tbk.

FY’2016 - Financial Update Presentation

Outline

2

Financial Updates (consolidated) Financial Update

• 1. Financial Highlight ………………………………………………………………………………

8

• 2. Balance Sheet ……………………………………………………………………………………

9

• 3. Loan – Mix and Growth …………………………………………………………………………

10

• 4. Loan – Asset Quality …..………………………………………………………………………… 11
• 5. Deposits – Mix and Growth …………………………………………………………………….

12

• 6. Income Statement ……………………………………………………………………………… 13

Business Updates:

• 1. Micro Banking……………………………………………………………….…………………….

15

• 2. Small Commercial and Medium Loans ……………………………………..…………………………………….

20

• 3. Consumer Loans……………………………………………………..…………………………… 22
• 4. SoE and Corporate Loans ………………………………………..…………………………….

24

• 5. Fee Based Income ……………………………………………….……………………………...

26 Key Take Aways ….…….……...……………………………………….……………………..………… 28 Target 2017 …………...…………………………………………………………………………………... 30 Appendixes ………………………………………………………….……..…….................................. 32

3

BRI (Consolidated)

Financial Highlights (Consolidated)

Note: √ Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T √ Tier 1 CAR in Q3 2016 increased due to reclassification of appropriated reserve (Tier 2) to retained earning (Tier 1)

2015 Q1'16 1H'16 9Mo'16 2016 ∆ yoy Asset/Liabilities Total Assets (IDR Billion) 878,426 864,939 907,843 931,693 1,003,644 14.3% Total Loans (Gross) (IDR Billion) 581,095 584,276 615,576 630,902 663,420 14.2% Total Deposits (IDR Billion) 668,995 658,736 683,739 694,843 754,526 12.8% Asset Quality NPL (gross) 2.10% 2.29% 2.39% 2.31% 2.13% Liquidity LDR 86.86% 88.70% 90.03% 90.80% 87.93% CASA 57.82% 55.18% 55.63% 56.13% 59.09% Profitability Net Profit (IDR Billion) 25,411 6,252 12,182 18,975 26,228 3.2% Subsidiaries Profit Contribution 0.81% 1.84% 1.11% 1.86% 1.81% NIM 7.91% 8.02% 8.25% 8.23% 8.10% ROE Tier 1 29.05% 26.73% 23.62% 22.26% 21.80% ROA before tax 3.99% 3.58% 3.51% 3.45% 3.67% Cost Efficiency Ratio (CER) 43.68% 43.22% 44.38% 44.29% 43.68% Operating Expense to Operating Income 67.81% 72.33% 72.65% 73.51% 70.33% Capital Tier1 CAR 16.68% 15.84% 18.21% 20.48% 21.54% Total CAR 20.39% 19.38% 21.65% 21.46% 22.69% 4

5

Balance Sheet (consolidated)

IDR Billion

Note: √ Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T √ Tier 1 CAR in Q3 2016 increased due to reclassification of appropriated reserve (Tier 2) to retained earning (Tier 1)

Description 2012 2013 2014 2015 2016 YoY Total Assets 551,337 626,183 801,984 878,426 1,003,644 14.3%

• Gross Loans

362,007 448,345 510,697 581,095 663,420 14.2%

• Government Bonds (Recap)

4,316 4,511 4,304 3,816 3,318

• 13.0%
• Other Earnings Assets

132,720 115,690 213,094 197,021 237,338 20.5% Total Earning Assets 499,042 568,546 728,094 781,931 904,077 15.6% Earning Assets Provision (14,916) (15,419) (16,163) (17,515) (22,807) 30.2% Total Earning Assets (net) 484,126 553,127 711,931 764,416 881,270 15.3% Total Non Earning Assets 67,211 73,055 90,053 114,010 122,375 7.3% Total Liabilities & S.E 551,337 626,183 801,984 878,426 1,003,644 14.3% Total Customer Deposits 450,166 504,281 622,322 668,995 754,526 12.8%

• Demand Deposits

80,075 79,337 90,052 114,367 142,547 24.6%

• Saving Deposits

184,365 212,997 236,395 272,471 303,270 11.3%

• Time and Certificate Deposits

185,726 211,948 295,875 282,157 308,709 9.4% Other Interest Bearing Liabilities 15,784 20,896 57,435 68,601 70,349 2.5% Non Interest Bearing Liabilities 20,505 21,678 24,522 27,703 31,956 15.4% Tier I Capital 52,325 67,270 83,344 93,437 139,786 49.6% Total Shareholder's Equity 64,882 79,327 97,706 113,127 146,813 29.8%

6

Income Statement (consolidated)

IDR Billion

Description 2012 2013 2014 2015 2016 YoY

Interest Income 49,610 59,461 75,122 85,434 94,788 10.9% Interest Expense (13,127) (15,355) (23,680) (27,154) (27,212) 0.2% Net Interest Income 36,484 44,106 51,442 58,280 67,576 16.0% Net Premium Income 64 Fee & Other Opr. Income 8,390 8,348 9,299 13,855 17,218 24.3% Gross Operating Income 44,873 52,455 60,741 72,135 84,858 17.6% Other Operating Expenses (19,491) (22,381) (26,715) (31,276) (37,101) 18.6% Pre Provision Operating Profit 25,382 30,074 34,026 40,860 47,757 16.9% Provision (2,700) (3,946) (5,719) (8,900) (13,791) 55.0% Non Operating Income (Net) 1,177 1,782 2,497 535 9

• 98.3%

Profit Before Tax n Minor. Int. 23,860 27,910 30,804 32,494 33,977 4.6% Net Profit 18,687 21,354 24,227 25,411 26,228 3.2% EPS 757.5 865.6 982.1 1,030.1 1,063.2 3.2%

7

BRI (Bank Only)

Financial Highlights

8

Note: √ Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T √ Tier 1 CAR in Q3 2016 increased due to reclassification of appropriated reserve (Tier 2) to retained earning (Tier 1) √ NPL (nett) is after provision for impaired loan Note: Numbers stated in this page are bank only

2015 Q1'16 1H'16 9Mo'16 2016 ∆ yoy Asset/Liabilities Total Assets (IDR Billion)

845,998 832,092 872,970 894,360 964,001 13.9%

Total Loans (Gross) (IDR Billion)

558,436 561,098 590,691 603,461 635,291 13.8%

Total Deposits (IDR Billion)

642,774 631,781 656,122 665,529 723,845 12.6%

Asset Quality NPL (gross)

2.02% 2.22% 2.31% 2.22% 2.03%

NPL (nett)

1.22% 1.35% 1.43% 1.18% 1.09%

Liquidity LDR

86.88% 88.81% 90.03% 90.68% 87.77%

CASA

59.21% 56.54% 56.89% 57.61% 60.57%

Profitability Net Profit (IDR Billion)

25,204 6,137 12,047 18,623 25,753 2.2%

NIM

8.13% 8.09% 8.43% 8.41% 8.27%

ROE Tier 1

29.89% 26.55% 25.24% 23.97% 23.08%

ROE B/S

24.39% 21.44% 20.51% 20.00% 19.98%

ROA before tax

4.19% 3.65% 3.68% 3.59% 3.84%

Cost of Fund (CoF)

4.24% 3.98% 3.96% 3.89% 3.83%

Cost Efficiency Ratio (CER)

43.81% 42.06% 43.59% 43.56% 42.77%

Operating Expense to Operating Income

67.96% 71.11% 71.39% 71.56% 68.93%

Capital Tier1 CAR

16.76% 15.84% 18.56% 20.88% 21.91%

Total CAR

20.59% 19.49% 22.10% 21.88% 22.91%

Balance Sheet

9

(IDR Billion)

Note: √ Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T √ Tier 1 CAR in Q3 2016 increased due to reclassification of appropriated reserve (Tier 2) to retained earning (Tier 1) Note: Numbers stated in this page are bank only

Description 2015 Mar'16 Jun'16 Sep'16 2016 g(YoY) g(QoQ) Total Assets 845,998 832,092 872,970 894,360 964,001 13.9% 7.8%

• Gross Loans

558,436 561,098 590,691 603,461 635,291 13.8% 5.3%

• Government Bonds (Recap)

3,816 3,818 3,817 3,818 3,318

• 13.0%
• 13.1%
• Other Earnings Assets

190,735 195,829 180,245 196,168 230,252 20.7% 17.4% Total Earning Assets 752,987 760,744 774,753 803,447 868,862 15.4% 8.1% Earning Assets Provision (17,030) (18,657) (20,567) (22,326) (21,944) 28.9%

• 1.7%

Total Earning Assets (net) 735,957 742,087 754,186 781,121 846,918 15.1% 8.4% Total Non Earning Assets 110,041 90,004 118,784 113,239 117,083 6.4% 3.4% Total Liabilities & S.E 845,998 832,092 872,970 894,360 964,001 13.9% 7.8% Total Customer Deposits 642,774 631,781 656,122 665,529 723,845 12.6% 8.8%

• Demand Deposits

112,989 108,150 109,202 115,204 140,764 24.6% 22.2%

• Savings

267,607 249,037 264,054 268,186 297,649 11.2% 11.0%

• Time Deposits

262,178 274,593 282,866 282,139 285,432 8.9% 1.2% Other Interest Bearing Liabilities 67,712 55,725 61,441 63,646 68,659 1.4% 7.9% Non Interest Bearing Liabilities 23,120 32,673 22,755 25,430 26,038 12.6% 2.4% Tier I Capital 89,992 89,915 110,333 132,066 136,670 51.9% 3.5% Total Shareholder's Equity 112,392 111,913 132,652 139,755 145,458 29.4% 4.1% Book Value per Shares *) 4,555.96 4,536.57 5,377.23 5,665.16 5,896.34 29.4% 4.1%

Loan – Mix and Growth

10

Composition – by business segment (%) Loans Outstanding – by business segment

(IDR Trillion) Micro Consumer Small Commercial Medium Corporate Non-SoE SoE Total Loan

178.9 189.7 202.9 204.8 211.5 88.5 91.2 94.4 96.8 100.2 114.5 106.9 110.3 113.0 125.7 20.2 18.5 19.8 20.5 21.0 75.1 76.4 79.7 77.3 84.1 81.2 78.5 83.5 90.9 92.8 558.4 561.1 590.7 603.5 635.3 2015 Mar-16 Jun-16 Sept-16 2016

32.0 33.8 34.3 33.9 33.3 15.8 16.3 16.0 16.0 15.8 20.5 19.0 18.7 18.7 19.8 3.6 3.3 3.4 3.4 3.3 13.4 13.6 13.5 12.8 13.2 14.5 14.0 14.1 15.1 14.6 2015 Mar-16 Jun-16 Sept-16 2016

Note: Numbers stated in this page are bank only

11

Loan – Asset Quality

Non Performing Loan - gross (%) Special Mention (%) Special Mention Composition – by segment (%)

Restructured Loan by quality (%) Restructured Loan by Segment (%)

Total Restructured loan in FY’16 Rp37.1T

4.81 6.43 6.67 5.73 4.28 2.02 2.22 2.31 2.22 2.03 Dec-15 Mar-16 Jun-16 Sept-16 Dec-16

NPL (%) Gross Special Mention (%)

53.1 30.5 16.3

NPL (%) 2015 Mar-16 Jun-16 Sep-16 2016 Micro 1.13 1.54 1.49 1.34 0.99 Consumer 1.30 1.48 1.53 1.53 1.18

• Sml. Com

2.90 3.78 3.78 3.66 2.70 Medium 5.82 6.68 6.45 6.52 7.13

• Corp. Non-SoE

4.78 3.78 4.67 4.78 5.61 SoE

• Total NPL

2.02 2.22 2.31 2.22 2.03

40.0 37.2 33.3 34.3 34.6 13.2 12.6 9.9 11.2 11.2 26.0 26.1 25.4 28.3 27.9 5.0 5.0 4.4 5.1 3.9 7.9 8.0 7.4 8.4 11.2 7.9 11.1 19.6 12.7 11.1 Des 15 Mar 16 Jun 16 Sep 16 Des 16

Micro Consumer Small Commercial Medium Corporate Non-SoE SoE Micro Consumer Small Commercial r al Medium Corporate Non-SoE SoE 11.3 1.4 31.5 8.7 28.6 18.6

Note: Numbers stated in this page are bank only

12

Deposits – Mix and Growth

Deposits: Trend Deposits Composition, COF & BI Rate

(%)

(IDR Trillion)

113.0 108.2 109.2 115.2 140.8 267.6 249.0 264.1 268.2 297.6 262.2 274.6 282.9 282.1 285.4 642.8 631.8 656.1 665.5 723.8 2015 Mar-16 Jun-16 Sept-16 2016 Time Deposit Saving Demand Deposit TOTAL 59.2% 56.5% 56.9% 57.6% 60.6% 40.8% 43.5% 43.1% 42.4% 39.4% 4.24% 3.98% 3.96% 3.89% 3.83%

• 1.00%

2015 Mar-16 Jun-16 Sept-16 2016 High Cost Low Cost COF

Note: Numbers stated in this page are bank only

13

Income Statement

*) Detail on the Fee & Other Operating Income on page 36

(IDR Billion)

Note: Numbers stated in this page are bank only

Description 2015 2016 g(YoY) Q1'16 Q2'16 Q3'16 Q4'16 g(QoQ)

Interest Income 82,221 90,808 10.4% 21,840 23,169 22,929 22,870

• 0.3%

Interest Expense (25,710) (25,612)

• 0.4%

(6,514) (6,484) (6,361) (6,253)

• 1.7%

Net Interest Income 56,511 65,196 15.4% 15,326 16,685 16,569 16,617 0.3% Fee & Other Opr. Income * 13,670 16,679 22.0% 3,663 4,681 3,588 4,747 32.3% Gross Operating Income 70,181 81,875 16.7% 18,989 21,366 20,157 21,364 6.0% Other Operating Expenses (29,889) (35,129) 17.5% (8,025) (9,720) (8,929) (8,454)

• 5.3%

Pre Provision Operating Profit 40,292 46,746 16.0% 10,963 11,645 11,228 12,910 15.0% Provision (8,581) (13,320) 55.2% (3,589) (3,750) (3,782) (2,198)

• 41.9%

Non Operating Income (Net) 500 15

• 97.0%

220 (110) 87 (182)

• 309.8%

Profit Before Tax n Minor. Int. 32,211 33,442 3.8% 7,595 7,785 7,533 10,530 39.8% Net Profit 25,204 25,753 2.2% 5,785 6,263 6,575 7,131 8.4%

14

Business Updates

15

Micro Banking

16

Micro Banking – Loan

Note: Numbers stated in this page are bank only

Micro Loans

(IDR Trillion)

Micro Borrowers

(Million)

• Total Micro loans increased 18.2% yoy, with number of

borrowers reaching 8.9 million.

• New KUR support the micro loan growth. The outstanding

reached IDR51 trillion and 4.1 million borrowers and NPL at 0.55% as of FY16

NPL – Micro Loans (%)

YoY g = 18.2% YoY g = 13.5%

91.7 111.4 128.8 145.5 155.7 15.1 4.2 15.1 20.8 24.5 5.6 0.6 12.7 51.0 106.8 132.1 153.3 178.9 211.5 2012 2013 2014 2015 2016

3.4 3.9 4.3 4.4 4.0 1.5 0.7 2.2 2.7 3.0 1.1 0.2 0.9 4.1 5.6 6.5 7.3 7.9 8.9 2012 2013 2014 2015 2016

New Micro KUR Micro KUR Kupedes Rakyat Kupedes Micro Loan

1.09 1.04 1.12 1.13 0.99 2012 2013 2014 2015 2016

17

Micro Banking - Deposit

Micro Funding, providing liquidity from stable core funding

Micro Deposits Micro Deposits Composition

(IDR Trillion)

Dec’15 Dec’16

• Micro deposits grew 12.0% yoy, lead by

saving with 11.7% YoY growth

• Savings, with composition of 84.6%, still

dominates micro deposits

Demand Deposit Saving Time Deposit

YoY g = 12.0% 126.6 146.2 166.2 192.1 215.1 2012 2013 2014 2015 2016

1.0% 84.8% 14.2% 0.6% 84.6% 14.7%

Note: Numbers stated in this page are bank only

TerasBRI - Performance

Teras BRI - more accessible, getting closer to customers

Micro Banking – Teras BRI

TerasBRI - Contribution to Micro Loan & Deposit

18

IDR Trillion

Loan Deposit

• TerasBRI continuously shows strong

performance with loan growth of 27.2% and deposit growth of 21.2% yoy.

• Contribution of Teras BRI to Micro

business performance keep increasing, in Dec’16 reached 10.2% and 4.8% of total micro loan and deposit

1.8% 3.5% 3.8% 4.4% 4.8% 2012 2013 2014 2015 2016 Deposit in Teras

5.3 10.0 13.5 16.9 21.5 2.3 5.1 6.3 8.5 10.3 2128 2671 3067 3179 3182 500 1000 1500 2000 2500 3000 3500 5 10 15 20 25 2012 2013 2014 2015 2016

5.0% 7.6% 8.8% 9.8% 10.2% 2012 2013 2014 2015 2016 Loan in Teras

Loan Deposit # of Teras BRI

Note: Numbers stated in this page are bank only

19

BRILink – create business, reach the un-banked

BRILink is utilization of BRI’s e-banking infrastructure by third parties (BRILink Agent) through fee sharing scheme

# of Agent # of Transaction (in Million) Transaction Volume (in Rp Trillion) # of Agent - Distribution # of Transaction - Distribution Transaction Volume - Distribution In Dec’16, Java (53%) dominates the Agent distribution In line with the Agent distribution, Java dominates the total BRILink transaction However, Sumatra with 36%, dominates the transaction volume

68.2% YoY 316.8% YoY 287.5% YoY

50,259 59,318 65,341 69,552 84,550 Dec'15 Mar'16 Jun'16 Sep'16 Dec'16

35.9 21.0 50.8 87.5 139.1 Dec'15 Mar'16 Jun'16 Sep'16 Dec'16

Java 32% Sumatra 36% Mid & Eastern Part 32% Java 53% Sumatra 22% Mid & Eastern Part 24% Java, 44% Sumatra, 30% Mid & Eastern Part, 26%

23.6 15.1 35.2 60.2 98.4 Dec'15 Mar'16 Jun'16 Sep'16 Dec'16

Note: Numbers stated in this page are bank only

20

Small Commercial & Medium Loans

21

Small Commercial & Medium Loans

Small Commercial Medium

(IDR Trillion) (IDR Trillion)

YoY g = 4.0% YoY g = 9.8%

70.2 87.1 97.4 108.5 118.9

5.4 6.9 7.6 3.3 0.9 2.7 5.9

75.6 94.0 105.1 114.5 125.7 3.75% 3.13% 3.21% 2.90% 2.70%

• 3.00%
• 2.00%
• 1.00%

• 30.0

2012 2013 2014 2015 2016

Commercial Non KUR Retail KUR New Retail KUR Total Loan NPL 16.5 20.3 20.2 20.2 21.0 5.09% 4.38% 5.91% 5.82% 7.13%

2012 2013 2014 2015 2016 Total Loan NPL

Note: Numbers stated in this page are bank only

22

Consumer Loans

23

Consumer Loan

Composition Loan Outstanding (IDR Trillion) NPL (%) Dec’16 Dec’15

Increase salary based loan with growth of 12.5% YoY and maintaining NPL level around 0.8% YoY g = 13.8%

Others Vehicle Loans Mortgage Salary Based Loan

49.0 57.5 62.4 69.5 78.2 12.5 16.4 18.2 19.0 21.9 61.5 73.9 80.6 88.5 100.2 2012 2013 2014 2015 2016 Salary Based Loan Other 78.1 % 18.1 % 2.2% 1.6% 1.8% 1.9% 17.8 % 78.6 % 1.60 1.40 1.21 1.30 1.18 2012 2013 2014 2015 2016

Note: Numbers stated in this page are bank only

24

SoE & Corporate Loans

25

SOE & Corporate Loan

Loan Outstanding – Trend (IDR Trillion) NPL – Trend (%) By Business Segment Corporate Loans SOE Loans

Grow the corporate segment in priority sectors to help maintain quality mix….

49.8 62.5 74.1 81.2 92.8 38.0 47.7 57.1 75.1 84.1 87.8 110.2 131.2 156.3 176.8 2012 2013 2014 2015 2016 SOE Corporate Total

YoY g 13.1%

Agribusiness 26.10% Construction 2.71% Industry 14.91% Infrastructure, Utilities 37.72% Mining 1.80% Oil & Gas 0.01% Others 9.59% Transportation 7.17% Agribusiness 43.32% Construction 1.89% Industry 24.31% Infrastructure, Utilities 6.06% Mining 3.89% Oil & Gas 5.44% Others 12.33% Transportation 2.75% 0.47 0.38 0.77 2.30 2.66 2012 2013 2014 2015 2016 NPL - Trend 2012 2013 2014 2015 2016 Corporate 1.00% 0.87% 1.78% 4.78% 5.61% SOE 0.00% 0.00% 0.00% 0.00% 0.00%

Note: Numbers stated in this page are bank only

26

Fee Based Income

27

Fee Based Income - composition

• Fee based income grew at 25.3% (yoy) and currently FBI to Total Income reach 8.6%
• Loan admin fee increased yoy, 127.5%, raising it’s portion from 7% to 13% of the total Fee Based Income.

Dec’15 Dec’16

(Nominal in billion)

Fee Based Income

Deposit Adm Fee Credit Card E-Banking Related Fee Payment Service Loan Adm Fee Others Int'l Business Related Fee Note: Numbers stated in this page are bank only

3,907 53% 1,637 22% 515 7% 595 8% 129 2% 283 4% 286 4% 4,037 44% 2,246 24% 1,171 13% 887 10% 184 2% 306 3% 380 4% 3.9 4.9 6.1 7.4 9.2 2012 2013 2014 2015 2016

FBI (Rp Trillion)

YoY g = 25.3%

28

Key Take Aways

29

Key Take Aways

• Stable loan growth in FY16 of 14.2% yoy was supported by

Micro, Consumer and SOE segments.

• Improving NIM due to lower COF.
• Stable loan quality reflected in NPL of 2.13%.
• Moderate growth of EPS by 3.2% yoy to provide better bank only

NPL coverage ratio of 170.3% in FY16.

30

Target 2017

31

Target 2017

Loan Growth : 12% – 14% LDR : 90% +/- 2% NPL : 2.2% - 2.4% Credit Cost : 2.2% - 2.4% Coverage Ratio : 160%-170% NIM : 8% - 8.2% OPEX Growth : 15% - 18% CER : 43% - 45% Net Profit Growth : 3% - 5%

Note: Numbers stated in this page are bank only

32

Appendixes

33

Financial Ratios

√ Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T √ Tier 1 CAR in Q3 2016 increased due to reclassification of appropriated reserve (Tier 2) to retained earning (Tier 1) Note: Numbers stated in this page are bank only

Description 2015 Q1'16 1H'16 9Mo'16 2016

Cost of Fund (COF) 4.24% 3.98% 3.96% 3.89% 3.83% Loan to Deposit Ratio 86.88% 88.81% 90.03% 90.68% 87.77% Net Interest Margin (NIM) 8.13% 8.09% 8.43% 8.41% 8.27% NPL ratio - Gross 2.02% 2.22% 2.31% 2.22% 2.03% NPL ratio - Nett 1.22% 1.35% 1.43% 1.18% 1.09% Earning Asset Provision 2.37% 2.54% 2.75% 2.89% 2.75%

• Opr. Expense to Opr. Income

67.96% 71.11% 71.39% 71.56% 68.93% Cost Efficiency Ratio (CER) 43.81% 42.06% 43.59% 43.56% 42.63% Tier I CAR 16.76% 15.84% 18.56% 20.88% 21.91% Total CAR 20.59% 19.49% 22.10% 21.88% 22.91% Return on Assets (ROA) - b.t 4.19% 3.65% 3.68% 3.59% 3.84% Return on Assets (ROA) - a.t 3.28% 2.95% 2.88% 2.92% 2.96% Return on Equity (ROE) - Tier I 29.89% 26.55% 25.24% 23.97% 23.08% Return on Equity (ROE) - B/S 24.39% 21.44% 20.51% 20.00% 19.98% Primary Reserve Requirement 9.31% 6.52% 6.54% 6.64% 6.94% Net Open Position 2.33% 5.13% 3.29% 10.56% 6.67% CASA 59.21% 56.54% 56.89% 57.61% 60.57%

34

Sources of Income

IDR Billion IDR Billion IDR Billion

Total Income Interest Income Fee & Other Operating Income

Note: Numbers stated in this page are bank only

Total Income 2015 2016 g(YoY)

Q1'16 Q2'16 Q3'16 Q4'16

g(QoQ) Interest income 82,221 90,808 10.4%

21,840 23,169 22,929 22,870

• 0.3%

Fee & Other Opr.Income 13,670 16,679 22.0%

3,663 4,680 3,588 4,747 32.3%

Non Operating Income (net) 500 15

• 97.0%

220 (110) 87 (182)

• 309.8%

Total Income 96,391 107,502 11.5%

25,724 27,739 26,604 27,435 3.1%

Interest Income 2015 2016 g(YoY)

Q1'16 Q2'16 Q3'16 Q4'16

g(QoQ) Interest from Loans 73,376 80,957 10.3%

19,165 20,631 20,816 20,345

• 2.3%
• Int. from Other Earning Assets

8,845 9,852 11.4%

2,675 2,538 2,113 2,526 19.5%

Total Interest Income 82,221 90,809 10.4%

21,840 23,169 22,929 22,871

• 0.3%

Fee & Other Operating Income 2015 2016 g(YoY)

Q1'16 Q2'16 Q3'16 Q4'16

g(QoQ) Gain Fr Value Increase of Securities and Govt. Recap Bonds 63 374 490.8%

78 133 99 63

• 36.3%

Gain fr unrealized change fair value and Govt. Recap Bonds

3 6 (9)

• 100.0%

Fees and Commissions 7,352 9,210 25.3%

1,967 2,175 2,427 2,641 8.8%

Gain fr Forex 458

• Recovery

3,780 4,461 18.0%

947 1,078 999 1,438 43.9%

Others 2,017 2,634 30.6%

668 1,289 72 605 735.6%

Total Fee & Other Opr. Income 13,670 16,679 22.0% 3,663 4,680 3,588 4,747

32.3%

35

Other Operating Expenses

Note: Numbers stated in this presentation are bank only

IDR Billion

Other Operating Expenses 2015 2016 g(YoY)

Q1'16 Q2'16 Q3'16 Q4'16

g(QoQ) Personnel 15,961 17,648 10.6%

4,264 5,664 4,461 3,259

• 26.9%

General and Administration 9,918 11,325 14.2%

2,416 2,818 2,613 3,478 33.1%

Losses fr decrease of Securities and Govt. Bonds value 7

• 2

(2) -200.0%

Losses from forex transaction

• 272

73 180 201 (182)

• 190.8%

Premium Paid on Govt Guarantees 1,248 1,308 4.8%

320 320 334 334 0.0%

Promotion 858 1,265 47.3%

168 307 224 566 152.7%

Others 1,897 3,312 74.6%

785 430 1,094 1,002

• 8.5%

Total Other Opr. Expenses 29,889 35,129 17.5%

8,025 9,720 8,929 8,454

• 5.3%

36

Others

RO Banda Aceh

• RO. Banjarmasin
• RO. Makassar
• RO. Manado
• RO. Palembang
• RO. Jakarta 1, 2, and 3
• RO. Denpasar
• RO. Bandung
• RO. Semarang
• RO. Surabaya & Malang

RO Medan RO Pekanbaru

• RO. Padang

Regional Office Distribution

• RO. Yogyakarta
• RO. Papua

*Total working units are including 4 overseas offices Regional Offices Branch Offices Sub-Branch Offices BRI Unit Teras BRI

The Most Extensive and Largest Networks

Cash Counter

37

• RO. Lampung

Note: Numbers stated in this presentation are bank only

Outlets 2012 2013 2014 2015 2016 YoY Head Offices 1 1 1 1 1

• Regional Offices

18 18 19 19 19

• Branches

446 453 461 467 467

• Sub Branches

545 565 584 603 609 6 BRI Units 5,000 5,144 5,293 5,360 5,380 20 Cash Offices 914 950 971 983 984 1 Teras BRI 1,778 2,206 2,457 2,543 2,545 2 Teras Mobile 350 465 610 636 638 2 Total 9,052 9,802 10,396 10,612 10,643 31 E-Channel 2012 2013 2014 2015 2016 YoY ATM 14,292 18,292 20,792 22,792 24,292 1,500 EDC 44,715 85,936 131,204 187,758 257,712 69,954 CRM 92 192 392 892 1,392 500 E-Buzz 42 50 55 57 57

• Total

59,141 104,470 152,443 211,499 283,453 71,954

38

Ratings

BRI Rating Country Rating

• Long Term Foreign Currency IDR

BBB-, Stable Outlook

• Short Term Foreign Currency IDR

F3

• Support Rating Floor

BBB-

• Support Rating

2

• Viability Rating

bb+

• National Long-Term Rating

AAA (idn), Stable Outlook

• Rupiah Subordinated Debt

A+ (idn)

• Senior Unsecured Notes

BBB-

• Outlook

Stable

• Long Term Foreign Issuer Credit

BB+

• Long Term Local Issuer Credit

BB+

• Short Term Foreign Issuer Credit

B

• Short Term Local Issuer Credit

B

• Outlook

Stable

• Bank Deposit

Baa3/P-3

• Bank Financial Strength

D+

• Baseline Credit Assessment

Baa3

• Adjusted Baseline Credit Assessment

Baa3

• Senior Unsecured Notes

Baa3

• National Rating

id AAA, Stable Outlook Standard and Poors BB+, Positive Outlook Fitch BBB-, Stable Outlook Moody's Baa3, Stable Outlook Japan Credit Rating Agency BBB-, Stable Outlook Indonesia Sovereign Ratings MOODY'S PEFINDO FITCH STANDARD AND POORS

39

Shareholders & Stock Performance

Shareholders Composition Stock Price: Trend

BBRI Stock is member of:

• JCI Index
• LQ45 Index (Top 45

liquid stocks)

• SRI KEHATI Index (a UN

affiliated biodiversity Index of 25 stocks)

Shareholder 2003 2010 2011 2012 2013 2014 2015 2016 Government

59.50% 56.75% 56.75% 56.75% 56.75% 56.75% 56.75% 56.75%

Public

40.50% 43.25% 43.25% 43.25% 43.25% 43.25% 43.25% 43.25% Foreign 79.06% 85.11% 83.93% 82.84% 78.94% 82.49% 78.12% 80.12% Domestic 20.94% 14.84% 16.07% 17.16% 21.06% 17.51% 21.88% 19.88%

2000 4000 6000 8000 10000 12000 14000 500 1000 1500 2000 2500

Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16

Millions

volume Last price

5 Years Data…

5 Years Data…

Balance Sheet

(IDR Billion)

Note: √ Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T √ Tier 1 CAR in Q3 2016 increased due to reclassification of appropriated reserve (Tier 2) to retained earning (Tier 1)

Description 2012 2013 2014 2015 2016 g(YoY) Total Assets 535,209 606,370 778,046 845,998 964,001 13.9%

• Gross Loans

348,227 430,618 490,403 558,436 635,291 13.8%

• Government Bonds (Recap)

4,316 4,511 4,304 3,816 3,318

• 13.0%
• Other Earnings Assets

131,547 115,168 211,325 190,735 230,252 20.7% Total Earning Assets 484,089 550,297 706,031 752,987 868,862 15.4% Earning Assets Provision (14,584) (15,072) (15,785) (17,030) (21,944) 28.9% Total Earning Assets (net) 469,505 535,225 690,246 735,957 846,918 15.1% Total Non Earning Assets 65,704 71,145 87,800 110,041 117,083 6.4% Total Liabilities & S.E 535,209 606,370 778,046 845,998 964,001 13.9% Total Customer Deposits 436,098 486,366 600,404 642,774 723,845 12.6%

• Demand Deposits

78,753 78,017 89,076 112,989 140,764 24.6%

• Savings

182,643 210,004 232,414 267,607 297,649 11.2%

• Time Deposits

174,702 198,346 278,915 262,178 285,432 8.9% Other Interest Bearing Liabilities 14,466 19,873 56,677 67,712 68,659 1.4% Non Interest Bearing Liabilities 20,008 21,261 23,784 23,120 26,038 12.6% Tier I Capital 51,593 65,964 82,109 89,992 136,670 51.9% Total Shareholder's Equity 64,637 78,870 97,181 112,392 145,458 29.4% Book Value per Shares *) 2,620.17 3,197.11 3,939.37 4,555.96 5,896.34 29.4%

Note: Numbers stated in this page are bank only

41

5 Years Data…

Income Statement

(IDR Billion)

Description 2012 2013 2014 2015 2016 g(YoY)

Interest Income 47,922 57,301 72,466 82,221 90,808 10.4% Interest Expense (12,461) (14,395) (22,346) (25,710) (25,612)

• 0.4%

Net Interest Income 35,461 42,906 50,120 56,511 65,196 15.4% Fee & Other Opr. Income 8,166 8,165 9,178 13,670 16,679 22.0% Gross Operating Income 43,627 51,071 59,298 70,181 81,875 16.7% Other Operating Expenses (18,602) (21,284) (25,458) (29,889) (35,129) 17.5% Pre Provision Operating Profit 25,025 29,788 33,840 40,292 47,746 16.0% Provision (2,555) (3,916) (5,613) (8,581) (13,320) 55.2% Non Operating Income (Net) 1,169 1,776 2,497 500 15

• 97.0%

Profit Before Tax n Minor. Int. 23,639 27,648 30,724 32,211 33,442 3.8% Net Profit 18,521 21,160 24,176 25,204 25,753 2.2% EPS 750.8 857.8 980.0 1,021.7 1,044.0 2.2%

Note: Numbers stated in this page are bank only

42

5 Years Data…

Ratios

Description 2012 2013 2014 2015 2016

Cost of Fund (COF) 3.68% 3.71% 4.38% 4.24% 3.83% Loan to Deposit Ratio 79.85% 88.54% 81.68% 86.88% 87.77% Net Interest Margin (NIM) 8.42% 8.55% 8.51% 8.13% 8.27% NPL ratio - Gross 1.78% 1.55% 1.69% 2.02% 2.03% NPL ratio - Nett* 0.34% 0.31% 0.36% 1.22% 1.09% Earning Asset Provision 3.43% 2.90% 2.40% 2.37% 2.75%

• Opr. Expense to Opr. Income

59.93% 60.58% 65.42% 67.96% 68.93% Cost Efficiency Ratio (CER) 43.11% 42.13% 43.18% 43.81% 42.77% Tier I CAR 15.86% 16.13% 17.54% 16.76% 21.91% Total CAR 16.95% 16.99% 18.31% 20.59% 22.91% Return on Assets (ROA) - b.t 5.15% 5.03% 4.73% 4.19% 3.84% Return on Assets (ROA) - a.t 4.04% 3.85% 3.72% 3.28% 2.96% Return on Equity (ROE) - Tier I 38.66% 34.11% 31.19% 29.89% 23.08% Return on Equity (ROE) - B/S 32.41% 30.10% 27.87% 24.39% 19.98% Primary Reserve Requirement 10.64% 8.02% 8.07% 9.31% 6.94% Net Open Position 3.00% 3.15% 3.86% 2.33% 6.67% CASA 59.94% 59.22% 53.55% 59.21% 60.57%

Note: √ Increase Asset and Capital in 1H2016 due to asset revaluation recognition amounting to Rp.14.3T √ Tier 1 CAR in Q3 2016 increased due to reclassification of appropriated reserve (Tier 2) to retained earning (Tier 1) √ NPL (nett) is after provision for impaired loan (2015 and 2016) Note: Numbers stated in this page are bank only

43

5 Years Data…

Note: Numbers stated in this presentation are bank only

Loan Composition (%) Loan Quality Loan Outstanding (IDR Trillion)

YoY g = 13.8% NPL (%) 2012 2013 2014 2015 2016 Micro 1.09 1.04 1.12 1.13 0.99 Consumer 1.60 1.40 1.21 1.30 1.18

• Sml. Com

3.75 3.13 3.21 2.90 2.70 Medium 5.09 4.38 5.91 5.82 7.13

• Corp. Non-SoE

1.00 0.87 1.78 4.78 5.61 SoE

• Total NPL

1.78 1.55 1.69 2.02 2.03

Micro Consumer Small Commercial Medium Corporate Non-SoE SoE Total Loan

106.8 132.1 153.3 178.9 211.5 61.5 73.9 80.6 88.5 100.2 75.6 94.0 105.1 114.5 125.7 16.5 20.3 20.2 20.2 21.0 38.0 47.7 57.1 75.1 84.1 49.8 62.5 74.1 81.2 92.8 348.2 430.6 490.4 558.4 635.3 2012 2013 2014 2015 2016

30.7 30.7 31.3 32.0 33.3 17.6 17.2 16.4 15.8 15.8 21.7 21.8 21.4 20.5 19.8 4.7 4.7 4.1 3.6 3.3 10.9 11.1 11.6 13.4 13.2 14.3 14.5 15.1 14.5 14.6 2012 2013 2014 2015 2016

44

SML (%) 2012 2013 2014 2015 2016 MICRO 6.81 6.37 7.15 6.00 4.45 CONSUMER 4.59 4.51 4.60 4.02 3.04 SMALL COMMERCIAL 7.38 7.12 6.80 6.09 6.05 MEDIUM 8.80 7.87 7.03 6.67 5.10 CORPORATE 4.52 7.19 9.50 2.82 3.59 SOE 1.26 0.00 3.05 2.60 3.30 Total SML 5.59 5.45 6.30 4.81 4.28

5 Years Data…

Note: Numbers stated in this presentation are bank only

Deposits: Trend Deposits Composition, COF & BI Rate

(%)

(IDR Trillion)

YoY g = 12.6%

59.9% 59.2% 53.5% 59.2% 60.6% 40.1% 40.8% 46.5% 40.8% 39.4% 3.41% 3.71% 4.38% 4.24% 3.83%

• 1.00%

2012 2013 2014 2015 2016 High Cost Low Cost COF 78.8 78.0 89.1 113.0 140.8 182.6 210.0 232.4 267.6 297.6 174.7 198.3 278.9 262.2 285.4 436.1 486.4 600.4 642.8 723.8 2012 2013 2014 2015 2016 Time Deposit Saving Demand Deposit TOTAL

45

Notes

……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………...............

Notes

……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………............... ……………………………………………………………………………………………………………………...............

PT BANK RAKYAT INDONESIA (Persero) Tbk. Investor Relations 20th floor BRI I Building Jl Jendral Sudirman Kav 44-46 Jakarta 10210 Indonesia Phone : 62 21 5752006/09, 5751952/79

• Fax. : 62 21 5752010

Website : www.ir-bri.com E-mail : ir@bri.co.id

Disclaimer: This report has been prepared by PT Bank Rakyat Indonesia (Persero) Tbk (Bank BRI) independently and is circulated for the purpose of general information only. It is not intended to the specific person who may receive this report. The information in this report has been obtained from sources which we deem reliable. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this report constitute our judgment as of this date and are subject to change without prior notice. We disclaim any responsibility or liability without prior notice of Bank BRI and/or their respective employees and/or agents whatsoever arising which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither Bank BRI and/or its affiliated companies and/or their respective employees and/or agents accepts liability for any errors, omissions, negligent or otherwise, in this report and any inaccuracy herein or omission here from which might otherwise arise.