BANK BUKOPIN
Overview as of June 2014
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results, performance or events to differ materially from those in the statements as originally made.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.
TABLE OF CONTENTS
Overview
Business Activity
Competitive Strengths
Financial Summary
Strategic Plan
OVERVIEW
88.25% 77.57%
Koperasi Pegawai
Bulog Seluruh
Indonesia
(KOPELINDO) /
Cooperative of
Bulog Employees
Public
PT Bank Syariah
BukopinPT Bukopin Finance
29.51% 18.57% 11.43% 40.49%
PT Bosowa
Corporindo
Government of
Republic of
Indonesia
SHAREHOLDERS STRUCTURE AS OF 30 JUNE 2014
5
INDUSTRY POSITION
In billion Rp
LoanRank 16th
AssetRank 16th
DepositRank 14th
Asset Loan Deposit
Source: Bank’s Publications as of March 2014, Bank Only
658.926
63.009
66.300
66.948
68.863
72.521
74.206
86.134
94.852
97.170
133.664
136.964
152.512
152.846
167.043
211.412
354.092
492.338
595.741
640.458
Stanchard
Mandiri Syariah
Citibank
BTPN
Bukopin
UOB Indonesia
Bank Jabar
HSBC
OCBC NISP
Tokyo-Mitsubishi
BII
BTN
Panin
Danamon
Permata
CIMB Niaga
BNI
BCA
BRI
Mandiri
35.743
35.974
45.246
45.293
45.383
46.557
50.280
53.749
61.847
76.720
91.341
94.470
102.710
103.482
109.743
148.205
234.908
317.274
415.149
432.441
Citibank
DBS Indonesia
BTPN
Bank Jabar
Bukopin
Mandiri Syariah
HSBC
UOB Indonesia
OCBC NISP
Tokyo-Mitsubishi
BII
BTN
Panin
Danamon
Permata
CIMB Niaga
BNI
BCA
Mandiri
BRI
28.205
37.002
43.439
45.355
49.105
50.121
55.717
55.864
57.931
62.828
102.278
104.090
110.929
115.202
129.166
161.724
265.759
406.852
470.017
476.345
BPD - Jawa Timur
DBS Indonesia
Citibank
Mega
BTPN
HSBC
Bukopin
UOB Indonesia
Bank Jabar
OCBC NISP
BTN
BII
Danamon
Panin
Permata
CIMB Niaga
BNI
BCA
BRI
Mandiri
HISTORY AND KEY MILESTONE
Bank Umum
KoperasiIndonesia (Bukopin)
was formed
- Changed its name into Bank Bukopin
- Issued Bond
Became a limited liability
company,PT Bank Bukopin
Issuance of Series A
Bonds, Series B
Subordinated Bonds and
Sharia Mudharabah
Bonds
- Became a public-listed company via
IPO
- Acquisition of 24.73%
shares of PT. Bank Syariah
Bukopin
- Acquisition of the shares
of PT BukopinFinance
- 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
- Right Issue I
- Spinnedoff Sharia Business
Unit to PT Bank
SyariahBukopinin which
Bank Bukopin
own 65.4%
- Right Issue II
- Increased ownership in PT Bank
SyariahBukopinbecame 77.57%
Issuance of Subordinated
Bond Sustainable I
Bank Bukopin Period I Year
2012
Right Issue III
1970 1989 1993 2003 2006 2008 2011 2012 20132009
7
BUSINESS ACTIVITIES
CORE BUSINESS
Supported by Treasury Business, International Banking and Fee-Based Services
Objective:
To become a top bank through focusing on value
Consumer
“To be a Preferred Partner for
Mass, Mass Affluent Customers and
Business Owners ”
SME
“To be a key player in SME Banking”
Commercial
“Sustain Current Market Position”
MAIN BUSINESS PILLARS
Micro
“To be a market leader in business to business Micro and a prime player for Rural
Micro Banking”
Bank Bukopin’s business activities of lending and funding include four pillars which are
Small and Medium Enterprises (SME), Micro Business, Consumer Business, and
Commercial Business.
9
COMPETITIVE STRENGTHS
POSITIONED FOR GROWTH
Leading Sophisticated
Mid-Sized Bank
Experienced and Competent
in SMEs and Micro Business
Strategic Partnerships
Satisfying and Compatible
Services
Extensive Branch and Electronic Network
Established Control and Risk
Management
Experienced Management
11
STRATEGIC PARTNERS
• National Food Logistic Agency
Bulog
• Community-based cooperative
Swamitra
• State-owned social security company for private sector workers
Jamsostek
• State-owned pension company for civil servants
Taspen
• Indonesia state-owned electricity company
Perusahaan Listrik Negara (PLN)
• Multi finance solutions
Multi Finance
12
• Responsible for the maintenance of rice security, rice distribution and price control.
• Bank Bukopin is one of two banks (20%) in financing Bulog.
• Bank Bukopin has a long-standing partnership with Bulog. Around 19.6% of Bank Bukopin’sCommercial 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.
• Bank Bukopin provides full serviced financing to 4 areas of regional division of Perum Bulog : West Java, DKI Jakarta, Bali and South Kalimantan.
• 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 677 Swamitra with more than 501.000 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
Bulog’s network:
26 Regional Divisions
101 Sub-Regional Divisions
30 Logistic Offices
463 Warehouses
STRATEGIC PARTNERSHIP
13
• Jamsostek manages social security for over 40 million private sector workers, of which over 11 million are active members, with total assets of over Rp154 trillion.
• Bank Bukopin has 38 outlets co-located at Jamsostek’s offices. These outlets enable the deposit of contributions by and payment of Jamsostek claims to its members.
• Jamsostek owns a 4.55% stake in PT Bank Syariah Bukopin, in which Bank Bukopin controls 77.57% (the remaining shareholders are local funds).
• Bank Bukopin is collaborating with Jamsostek to finance housing benefit for Jamsostek’s members and cash management services for Jamsostek.
Social security for private sector workers
Pension scheme for civil servants
• Appointed as one of 15 institutions as pension fund payment agent.
• Bank Bukopin provides personal financing to Taspen pensioners under its micro financing segment.
• Repayments are through deduction from pension payments.
• Outstanding loans under the Taspen program have grown to around Rp2.16 trillion by June 2014.
14
STRATEGIC PARTNERSHIP
State-owned electricity company
• Bank Bukopin currently serves more than 12 million out of 42 million PLN customers who pay their bills through 56 banks.
• Bank Bukopin was the first commercial bank in Indonesia to establish the Payment Point On-line Bukopin (PPOB) over 5 years ago. It now has more than 22.000 PPOBs across Indonesia.
• PPOBs can provide services to PLN customers such as billing payment, new PLN installation and PLN prepaid card for electricity.
• The PLN partnership has provided a boost to Bank Bukopin’s fee-based income, cash management services, CASA accumulation and loan portfolio.
• Multi finance company is non-bank financial Institutions, developed to conduct activities for the finance institutions specifically in the field of financing leasing, factoring, credit card and/or consumer financing.
• Bank Bukopin has collaborated with 27 multifinances, serves around 57.000 customers with
Rp 4.5 trillion of outstanding loan.Multi finance solutions
15
STRATEGIC PARTNERSHIP
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
SATISFYING AND COMPATIBLE SERVICES
16
EXTENSIVE BRANCH AND ELECTRONIC NETWORK
Lampung
Nanggroe Aceh Darussalam
Riau
Jambi
South Sumatera
West Sumatera
West Kalimantan
East Kalimantan
South Kalimantan
Banten
North Sulawesi
South Sulawesi
Bali
West NusaTenggara
East Nusa Tenggara
East Java
West Java
D.I.Yogyakarta
DKI Jakarta
Central Java
North Sumatera
Riau Island
June 2013
June
2014
Growth
2013-2014
Branches 36 40 4
Sub Branches 110 118 8
Cash Offices 145 144 -1
Micro-Service Offices
87 87 0
Payment Point 39 39 0
Pickup Service 8 8 0
Total outlet 425 436 11
ATMs 409 530 121
Mini ATMs 1.345 1.764 419
• Bank Bukopin currently has network in 22 out of 34 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 22.000 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.
17
ESTABLISHED CONTROLS AND RISK MANAGEMENT
• Implementation of risk management in Bank Bukopincovered 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, such as Credit Rating (ICRR), Credit Scoring (E Flow and SIKM), Operational Risk and Control Self Assessment (RCSA), Asset and Liabilities Risk Management Model
• Bank Bukopin also regularly conduct stress testing, to forecast the impact of any external shock to the Bank’s performance, such as credit risk stress testing, interest rate risk stress testing, liquidity risk stress testing
• 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 (Credit Risk Control and Internal Control unit) and an independent unit of compliance, all to establish comprehensive internal control system
Active observation by Boards through
Committee
All transactional execution had to go through checker and approval system.
There is also clear segregation between business and operational units.
Risk management executed by each related unit (risk
taking units) Bank-wide risk management by
Risk Management Division
Internal control process
Bank Bukopin has set and continuously review various internal policies and guidance for
controlling all risks faced.
18
I. Risk Management Process II.Risk Management Implementation
To support Risk Management Implementation
With Three Lines of Internal Control
BOARD OF DIRECTORSGlen Glenardi, President Director28 years of experiencePast experiences include:- Director of Micro and SME (2000-2005)- Director of Cooperatives and Small Enterprises (1999-2000)- Head of Credit for Cooperatives and Small Enterprises Group (1997-1999) - Head of Cirebon Branch (1989-1992)
Tri Joko Prihanto,Finance & Planning Director28 years of experiencePast experiences include:- Director of Operations (2000-2007)- 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, Retail Director28 years of experiencePast experiences include:- Director of Services & Distribution (2007-2013)- Director of Consumer Banking (2000-2007) - Group Business Head (1997-2000)- Head of Bukopin Branches (1989-1997)
Sulistyohadi DS, Services & Operation Director26 years of experiencePast experiences include:- Director of Medium, Small Enterprises and Cooperatives
(2005-2013)- Group Head for Institutional Business (1999-2005)
Adhi Brahmantya,Business Development and Information Technology Director26 years of experiencePast experiences include:- General Manager of Business Development (2011-2013)- Division Head of Distribution Network and BusinessPartnership (2010-2011)
- Project Officer of Public Service (2008-2010)
Mikrowa Kirana, Commercial Director
28 years of experiencePast experiences include:- Group Line Head for Commercial Business (2002-2006)- Group Area Head for Commercial Business in West and Central Java (2001-2002)
- Group Line Business Head (1998-2001) - Head of Kupang and Denpasar Branches (1993-1998)
Irlan Suud,Risk Management, Compliance and Human Resources Development Director23 years of experiencePast experiences include:- SEVP Risk Management & Human Resources Development
(2013-2014) - General Manager of Business Regional I (2012-2014)- Division Head of Credit Commercial IV (2012)- Division Head of Program Fund (2008-2012)- Group Head of Institution Fund and Program (2008)
BOARD OF COMMISSIONERSMulia P. Nasution, President CommissionerChairman of The Supervisory Board of State`s Accounting School (2009-Now)
Muhammad Rachmat Kaimuddin, *)Commissioner
Past experiences include:- Secretary General of Finance Ministry (2006-2011)- Director of General Treasury of Finance Department (2004-2006)- Head of National Financial Accounting Body (2001-2004)- Head of Data Processing and Budget Information (1999-2001)- Director of Government Treasury and Cash (1998-1999)- Director of Budget Development II (1995-1998)
CEO of Bosowa Kapital (Now).Past experiences include : - Vice President/Chief Rep Officer for Indonesia of Baring Private
Equity Asia (2012 – 2014).- Advisor to the Board of PT Toba Bara Sejahtera Tbk (2012)- Group CFO of PT Amstelco Indonesia Tbk (2011–2012)- Principal of Quvat/Principia Management Group (2008–2011)- Managing Director/CFO of PT Cardig Air Services (2009–2011)
20
Deddy S.A. Kodir, Commissioner Chairman of Kopelindo (2008-Now)
Past experiences include :- Director of Human Resources & General Affair of Bulog (2011-2012)- Director of Planning and Business Development of Bulog (2009-2011)- Over 30 years experience at Bulog Institution
Past experiences include :- Head of Public Service Agency Housing (2010-2011)- Finance Centre of State Ministry of Housing
(2010-Feb 2011)- Over 30 years experience at Finance Ministry
Margustienny Oemar Ali, Independent Commissioner
Omar Sjawaldy Anwar, *)Independent Commissioner
Past experiences include : - President Commissioner of PT Suryaindo Investama (2012-
2013)- President Commissioner of PT OVI Energi (2012 – 2013)- President Commissioner of PT Energi Investama (2012-2013) - President Director and CEO of PT Trimegah Securities Tbk (2010
– 2012)
Parikesit Suprapto,Independent Commissioner Special Aid of the Ministry of State Owned Enterprise (2012-Now) Past experiences include :- Deputy of Business Services, Ministry of State Owned Enterprise
(2010-2012)- Deputy of Banking and Financial Services, Ministry of State Owned
Enterprise (2008-2010)- Expert Staff to the Minister of State Owned Enterprise for Small
Enterprises Cooperation (2005-2008)
Eddy Hutarso, *)Independent CommissionerDirector PT Pacific Fiber Indonesia (2007–Now)Past experiences include:- Licensing General Manager of PT Pacific Fiber Indonesia (2006-2007)- SSL Manager of PT Pacific Oil & Gas Indonesia (2004-2006)- SSL Manager of PT Raja Garuda Mas Indonesia (1997-2004)- SSL Manager of PT Riau Andalan Pulp & Paper (1994-1997)
*) Subject to Financial Services Authority or OJK approval
President Director of PT True North Bridge Capital (2012–Now)
FINANCIAL SUMMARIES
KEY FINANCIAL – BALANCE SHEETTotal Assets (Rp. Tn)
Total Assets increased year-on-
year by 2.54% from Rp70.9 Tn
to Rp72.7 Tn due to the
increase of third party deposits.
Total Loans (Rp. Tn)
Period Percentage
% Y o Y 2.54%
% Y to D 4.60%
Period Percentage
% Y o Y 10.17%
% Y to D 4.95%
Loan increased year-on-year by
10.17% from Rp46.2 Tn to
Rp50.9 Tn. This was due to the
increase of retail loans.
22
* Unaudited
June-13 Dec-13 June-14*
22,3
2,9
June-13 Dec-13 June-14*
70.969.5
72.7
46.2
48.5
50.9
OVERVIEW OF LOAN PORTFOLIO
Loan segment Loan size
Retail consists of:
- Micro
- SME
- Consumer
< Rp.500 M
Rp.500 M – Rp.25 Bn
Commercial > Rp.25 Bn
Retail
Bulog
Commercial
6.96 %
*Unaudited
June-13 Des-13 June-14*
6.8 Tn
23.5 Tn
15.9 Tn
Rp. 46.2 Tn
Rp. 50.9 Tn
31.0 Tn
3.9 Tn
16.0 Tn
50.8%
14.72%
34.42%
60.91%
7.66%
31.43%
60.21%
7.80%
31.99%
29.2 Tn
3.8 Tn
15.5 Tn
24.25%6.16%
-44.12%2.63%
-2.52%3,22%
Rp. 48.5 Tn
KEY FINANCIAL – BALANCE SHEET
Deposits increased year-on-year by4.27% from Rp58.5 Tn to Rp61.0 Tn.The increase comes from TimeDeposits and savings.
Period Percentage
% Y o Y 4.27%
% Y to D 9.32%
Savings Current Account Time Deposit
24
Total Third Party Deposits (Rp. Tn)
Loan-to-Deposit Ratio (LDR) (%)
• LDR year-on-year increased by 3.96%
from 78.22% to 82.18%.
• We will maintain our LDR to be in-line
with Bank Indonesia’s range at 78%-
92%.
* Unaudited
June-13 Dec-13 June-14*
13.3
10.1
35.1
14.3
55.858.5
June-13 Dec-13 June-14*
61.0
9.0
13.9
10.2
32.5 36.9
78.22
85.80
82.18
FUNDING COMPOSITIONFunding Composition (by product)
Savings Current Time Deposit 25
* Unaudited
60.00% 58.24% 60,49%
17.26%16.13%
16,72%
22.74%25.63%
22,79%
June-13 Des-13 June-14*
Rp. 58.5 Tn Rp. 61.0 Tn
Rp. 13.3 Tn
Rp. 10.1 Tn
Rp. 35.1 Tn
Rp. 13.9 Tn
Rp. 10.2 Tn
Rp. 36.9 Tn
Rp. 55.8 Tn
Rp. 14.3 Tn
Rp. 9.0 Tn
Rp. 32.5 Tn
7.52% -2.8%
-10.89% 13.33%
-7.40% 13.54%
KEY FINANCIAL – BALANCE SHEET
Total Shareholders’ Equity (Rp. Tn)Period Percentage
% Y o Y 26.92%
% Y to D 6.45%
Equity increased year-on-yearby 26.92% from Rp5.2 Tn toRp6.6 Tn. This improvementcomes from profits growth andRight Issue III.
26
* Unaudited
June-13 Dec-13 June-14*
5.2
6.26.6
CORE & SUPPLEMENTARY CAPITAL
Core Capital
Supplementary Capital
27
• In line with Bank Indonesia’s Regulations, Bank Bukopin is categorized into
BUKU 3 with a core capital of Rp5.4 Tn.
• CAR decreased year-on-year due to the loan expansion in retail
segment, which caused an increase in Risk Weighted Assets (RWA).
* Unaudited
11.81% 11.61% 11,86%
3.90%3.51% 3,20%
June-13 Dec-13 June-14*
15.71% 15.12% 15.10%
11.90%
3.20%
KEY FINANCIAL – EARNING
Earning Before Tax Earning After Tax
Period % EBT % EAT
%Y o Y 1.15% 2.46%
Earning Before and After Tax (Rp. Bn)
• Net profit year-on-year increased by 2.46%
from Rp504.9 Bn to Rp517.3 Bn. The
incremental step derived from an increase in
net interest income and other operating
income.
* Unaudited
June-13 Dec-13 June-14*
652.7
504.9
660.2
517.3
1.193.6
934.6
KEY FINANCIAL – EARNING
Net Interest Margin (NIM) (%)
Net Interest Margin (NIM) year-on-yearincreased by 0.35% from 3.55% to 3.90%.
Period % NIM
% Y o Y 0.35%
Fee Based Income (FBI)
Public Service Credit CardTreasury Others
29
Fee Based Income year-on-yearincreased by 25.56% from Rp356 Bn toRp447 Bn.
Period % FBI
% Y o Y 25.56%
* Unaudited
June-13 Dec-13 June-14* 29,09% 26,98% 21,30%
52,66% 52,92%55,97%
9,19% 9,65% 10,56%
9,06% 10,45% 12,17%
June-13 Dec-13 June-14*
3.92
3.55
3.82
3.90
Rp. 356.0 Rp. 447.0Rp. 785.7
KEY RATIOGross Non-Performing Loan (NPL) (%)
• Our gross NPL is stated at level 2.60% , while net NPL is at 1.87% in June 2014.
*
Net Non-Performing Loan (NPL) (%)
* Unaudited
June-13 Dec-13 June-14*
0.06%
2.542.26
2.60
June-13 Dec-13 June-14*
1.661.51
1.87
Cost-to-Income Ratio (CIR) (%)
June-13 Dec-13 June-14*
66.3066.93
61.95
Operating Expenses to Operating Income (%)
June-13 Dec-13 June-14*
81.0382.73
83.01
KEY RATIO
Return-on-Equity (ROE) (%) Return-on-Assets (ROA) (%)
31
* Unaudited
June-13 Dec-13 June-14* June-13 Dec-13 June-14*
0.08%20.63
19.09
18.19 1.861.75
1.94
32
AWARDS 2014
“SWA Best Wealth Creator 2014”
Awarded for Indonesia Best
Public Companies Based on
Wealth Added Index Method.
“Infobank Titanium Trophy 2014”
Very Good Financial Performance
1999-2013 from InfoBank
Magazine.
1. Financial Category
“Indonesian Bank Loyalty Index (IBLI)”
Awarded for Saving Account Conventional Banking
2014 (Asset < Rp100 T) from InfoBank Magazine
and Markplus Insight.
2. Product Category
33
AWARDS 2014
“Jaringan Prima Awards 2014”
Awarded for The Best
Performance in Complaint
Handling 2014.
“Banking Public Excellence Awards 2014”
6th Best Overall Performance 2014.
“Banking Service Excellence Awards 2014”
The Rising Star Bank in Service Exellence
2014.
3. Service Category
Awards from PT PLN for:
1. First Rank Category for Sheet’s
Amounts of P2APST Transactions 2012
2. First Rank Category for Bank Collection
2012
3. First Rank Category for The Rupiah’s
Amounts of Point of Sales Transactions
2012
4. Fourth Rank Category for The Best Ten
Bank Performance 2012
5. First Rank Category for Rupiah’s
Amounts of P2APST Transactions 2012
6. First Rank Category for The Amount of
Core Banking Transaction 2012
STRATEGIC PLAN
STRATEGIC PLAN
Become a Trusted Bank for Financial
Services
Strengthening the Structure
of Capital
Enlarge the Composition of Retail Business
Focus on Excelling in
Business Segments
Improvements of value chain
and cross selling
Enhances Strategic
Partnership
Improvement of Information
Systems, Technology and
Procedures
Strengthening of Corporate
Culture
Enhance the Role of Risk
Management and Compliance
Aspects
35
Thank You
Q & A
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