PT Bank OCBC NISP Tbk Financial Performance First Quarter 2019 · • Intensifying internet and...

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PT Bank OCBC NISP Tbk

Financial Performance – First Quarter 2019(Unaudited)

This report is solely for the use of PT. Bank OCBC NISP Tbk. No part of it may be circulated,

quoted, or reproduced for distribution outside the organization without prior written approval from

PT. Bank OCBC NISP Tbk. This material was used by PT. Bank OCBC NISP Tbk.during an oral

presentation; it is not a complete record of the discussion.

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• First Quarter Performance

• Financial Results

• Corporate Updates

• Appendix

Agenda

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• NPAT reached Rp 765 billion or increased by 15% YoY in first quarter 2019

• Total Assets grew 10% YoY to Rp 178 trillion per end of March 2019

• Loans rose 6% YoY to Rp 117 trillion per end of March 2019

• Deposits increased 8% YoY to Rp 131 trillion per end of March 2019

• LDR ratio was 89.7% while Loan-to-funding ratio was 85.4% per end of March 2019

• Gross NPL stood at 1.8% per end of March 2019, below the industry average

• CAR maintained at 17.7%, with tier 1 capital ratio of 16.7% per end of March 2019

• Corporate Rating is AAA with stable outlook

• Network coverage was 306 Offices and 707 ATMs along with various digital channels

Executive Summary

Bank OCBC NISP Serves Its Clients Across Indonesia

306 branches including sharia offices in 61 cities

Jabotabek, Banten (130)

West Java (57)

Central Java (21)

East Java (31)

Bali, Lombok, Sumatera, Kalimantan, Sulawesi, Others (67)

Branches

Electronic Channel

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Kalimantan

SulawesiPapua

Flores

Sumba

Halmahera

Seram

Bali

A variety of mobile banking services available from our

One Mobile app downloadable from Apple App Store & Google Play

Store

A wide variety of online banking services available from our Internet Banking,

easily accessible from https://online.ocbcnisp.com/

Corporate Internet Banking (Velocity) is a web based

application to support Customer’s business activity

both financial and non financial transaction

https://newvelocity.ocbcnisp.com/

707 ATM OCBC NISP and access to:

more than 190,000 ATM Network in Indonesia

more than 797 ATM OCBC Group Network in Singapore and Malaysia

Hotline Treasury

08001 111 898

Corporate Website -www.ocbcnisp.com

Bali

https://online.ocbcnisp.com/

https://newvelocity.ocbcnisp.com/

http://www.ocbcnisp.com/

Rp. billion 1Q18 4Q18 1Q19 QoQ YoY

Net Interest Income 1,551 1,603 1,541 (4%) (1%)

Non Interest Income 386 440 456 4% 18%

Operating Income 1,937 2,043 1,997 (2%) 3%

Operating Expenses (885) (887) (904) 2% 2%

Pre Provision Operating Profit 1,052 1,156 1,093 (5%) 4%

Provision Expense (175) (356) (96) (73%) (45%)

Non Operating Income - Net - (2) 1 159% NM

Profit Before Tax 877 798 998 25% 14%

Net Profit After Tax 663 605 765 27% 15%

Income Statement Highlights

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Rp. billion 1Q18 4Q18 1Q19 QoQ YoY

Placement in other Bank (net) 1) 2,240 5,264 5,487 48% 145%

Marketable Securities 2) 31,670 32,222 32,796 - 4%

Loans (gross) 3) 110,746 117,835 117,484 - 6%

Impairment Allowance (4,325) (4,344) (4,405) 1% 2%

Total Assets 161,554 173,583 177,529 4% 10%

Current Account 24,441 22,320 26,696 10% 9%

Savings 17,878 23,546 23,470 18% 31%

Time Deposit 78,813 79,694 80,372 5% 2%

Total Customer Deposits 3) 121,132 125,560 130,538 8% 8%

Marketable Securities Issued 4,916 4,373 4,376 - (11%)

Subordinated Debt - 144 142 - -

Total Liabilities 139,161 149,155 152,179 2% 9%

Equity 22,393 24,428 25,350 11% 13%

Note: 1) Including Placement in Bank Indonesia

2) Exclude Securities purchase under resale agreement

3) Including Sharia products

Financial Position Highlights

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% 1Q18 4Q18 1Q19 QoQ YoY

Net Interest Margin 4.2 4.0 3.9 (0.1) (0.3)

Non Int. Income / Operating Income 19.9 21.6 22.8 1.2 2.9

Cost / Income 45.7 43.4 45.3 1.9 (0.4)

ROA 2.2 1.9 2.3 0.4 0.1

ROE 12.3 10.4 12.6 2.2 0.3

Loan / Deposit 91.1 93.5 89.7 (3.8) (1.4)

Loan / Funding 1) 87.6 88.9 85.4 (3.5) (2.2)

CASA / Deposit 34.9 36.5 38.4 1.9 3.5

NPL – Gross 1.7 1.7 1.8 0.1 0.1

NPL – Net 0.7 0.8 0.9 0.1 0.2

Loan Loss Provision (LLP) / NPL 228.0 213.9 203.8 (10.1) (24.2)

NOP 6.4 5.1 10.4 5.3 4.0

CAR 17.0 17.6 17.7 0.1 0.7

Note:

1) Funding includes Customer Deposits, Bonds, Subordinated Debt and Borrowings

Key Ratios

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1,551 1,596 1,628 1,603 1,541

1Q18 2Q18 3Q18 4Q18 1Q19

Foreign Exchange

Gain

2019: 25%

2018: 30%

Net Interest IncomeIDR billion

Non-Interest Income 2019: Rp 456 billion

2018: Rp 386 billion

Non-Interest Income by TypeFirst Quarter

*) Including Mutual Funds, Remittance, e-channel and Other fee

Net Interest

Margin

NIM recorded at 3.9% in 1Q 2019 along with diversified

Non-Interest Income channels

Trade Finance

2019: 9%

2018: 12%

Deposit

Administration

2019: 4%

2018: 5%

Bancassurance

2019: 6%

2018: 8%

Others *)

2019: 11%

2018: 13%

Gain from Sale of

Marketable

Securities

2019: 24%

2018: 10%

Credit Related

2019: 21%

2018: 22%

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4.2% 4.1% 4.3% 4.0%3.9%

1,997 2,0431,937

1,7902,019

885 866 875 887 904

1Q18 2Q18 3Q18 4Q18 1Q19

60% 58% 63% 61% 62%

39% 37% 38% 42% 40%

Operating Expense and Operating IncomeIDR billion

Operating Income Employee Expense General Administration Expenses

Cost to

Income Ratio

▼

Cost-to-Income Ratio at 45.3% in 1Q 2019

45.3%43.4%43.3%

48.4%45.7%

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45% 47% 48% 47% 48%

41%41%40%40%42%

11%12%12%13%13%

1Q18 2Q18 3Q18 4Q18 1Q19

Working Capital Investment Consumer

Services

2019: 17%

2018: 17%

Loans CompositionIDR billion

Note: Consumer loans includes Employee loan

Loans by Sector31 March

Outstanding loans2019: Rp 117,484 billion

2018: Rp 110,746 billion

*) “Others” category Including Consumer loans

119,906117,835 117,484

110,746116,924

Total loans increased by 6% YoY to Rp 117 trillion on the

back of diversified loans growth

Manufacturing

2019: 28%

2018: 27%

Others *)

2019: 13%

2018: 15%

Construction

2019: 4%

2018: 3%

Agricultural

& Mining

2019: 13%

2018: 13%

Trading

2019: 25%

2018: 25%

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Loans by Geography 31 March

Loans by Currency31 March


2018: Rp 110,746 billion


2018: Rp 110,746 billion

Sumatera

2019: 9%

2018: 9%

East Java

2019: 11%

2018: 11%

Central Java

2019: 2%

2018: 2%

West Java

2019: 13%

2018: 12%

Jakarta

2019: 62%

2018: 62%

Sulawesi

& Others

2019: 2%

2018: 2%

Kalimantan

2019: 1%

2018: 2%

The bank loans were spread over regions where most of

economic activities are undertaken

Rupiah

2019: 78%

2018: 74%

Foreign

currencies

2019: 22%

2018: 26%

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166.2153.1 159.1 161.3

61.8

59.4

153.5

61.5 52.650.3

1Q18 2Q18 3Q18 4Q18 1Q19

General Specif ic

96.1% 96.0% 95.8%96.6% 96.6%

2.2%

2.2% 2.4% 1.7% 1.6%1.7%1.8% 1.8% 1.7% 1.8%

1Q18 2Q18 3Q18 4Q18 1Q19

Current Special mention NPL Gross

Loan Collectibility% Outstanding loans

Loan Loss Provision (LLP) / NPL

%

Net NPL

220.6213.9

203.8

228.0

212.5

Gross NPL stood at 1.8%, while Net NPL was at 0.9%

0.7% 0.7% 0.7%0.8% 0.9%

119,906 117,835 117,484110,746

116,924

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Deposit CompositionIDR billion

Deposit and Funding by Currency31 March

Total Deposit2019: Rp 130,538 billion

2018: Rp 121,132 billion

Total Funding2019: Rp 137,036 billion

2018: Rp 126,048 billion

Note: Funding includes Customer Deposits, Bonds, Borrowings and Subordinated Debt

20% 20% 20% 18% 20%

15% 17% 18% 19%18%

65% 63% 62%63%

62%

1Q18 2Q18 3Q18 4Q18 1Q19

Current Account Savings Time Deposits

118,444125,560

130,538121,132 120,509

Rupiah

2019: 72%

2018: 77%

Foreign

currencies

2019: 28%

2018: 23%

Rupiah

2019: 73%

2018: 78%

Foreign

currencies

2019: 27%

2018: 22%

Total CASA represented 38.4% of Third party funds

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87.6%

92.4%96.4%

88.9%85.4%

91.1%

96.7%100.9%

93.5%89.7%

Loan-to-Deposit Ratio

▼

Loans, Third Party Fund and FundingIDR billion

Note:

Funding includes Customer Deposits, Bonds, Subordinated Debt and Borrowings

▲Loan-to-Funding Ratio

LDR was at 89.7%, while Loan-to-Funding ratio was

85.4% at end of 1Q 2019

117,484117,835119,906116,924110,746

130,538125,560

118,444120,509121,132123,939126,105126,048

132,057 137,036

1Q18 2Q18 3Q18 4Q18 1Q19

Loans Deposit Funding

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Daily share price and trading volumeNISP IJ

Source: IDX

Share price (Rupiah)Daily trading volume (Thousand)

Ownership StructureAs of 31 March 2019

Number of

shares

Ownership

OCBC Overseas

Investment Pte. Ltd*)

19,521,391,224 85.1%

Public 3,423,905,748 14.9%

Total 22,945,296,972 100.0%

ValuationIDR

Mar 18 Jun 18 Sep 18 Dec 18 Mar 19

Share Price 938 850 830 855 900

PBV 1.0x 0.9x 0.8x 0.8x 0.8x

EPS Quarterly 29 36 30 30 33

Note: *) OCBC Overseas Investment Pte. Ltd is owned by OCBC Bank, Singapore. OCBC Bank is Singapore’s longest established bank (est. 1912) and one of

Asia’s leading financial services groups, with group assets of SGD468 billion as of 31 December 2018 and employs more than 29,000 staff globally and

has a banking network of more than 570 branches and representative offices in 19 countries and territories.

Share Price

▼

Source: Bloomberg

Share Price and Credit RatingsRating

PEFINDO

Feb 2019

Corporate Rating idAAA / Stable

Continuous Bonds II and III idAAA / Stable

Fitch Ratings

April 2019

National Long-term AAA (idn) / Stable

National Short-term F1+ (idn)

Long-term Foreign Currency

Long-term Local Currency

BBB / Stable

A / Stable

Short-term Foreign Currency F 2

Continuous Bonds II and III

Viability Rating

Support Rating

AAA (idn)

Bb+

2

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• Appendix

Agenda

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Consumer Banking

• Intensifying Tanda 360o plus and Taka campaign to acquire more new customers.

• Intensifying internet and mobile banking campaign, especially One Mobile OCBC NISP - an innovative mobile

banking app, to acquire more new users.

• Bank OCBC NISP partners up with Health Care and Social Security Agency (BPJS Kesehatan) by providing

Supply Chain Financing (SCF) scheme to support positive cash flow among BJPS Kesehatan Health Facility

Partners.

• Bank OCBC NISP introduces an innovative banking service concept in Bali by presenting Premium Guest House.

• Launched mutual funds product; such as Reksa Dana Terproteksi Mandiri Seri 180.

• Expanded the bank’s presence in high traffic areas to support and accelerate digital acquisition through Mobile

Sales Acquisition Program.

Business Initiatives

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Corporate Social Responsibility

Young Entrepreneurship Spirit (YES) Workshop

In February 2019, Bank OCBC NISP together with Karya Salemba

Empat (KSE) held Young Entrepreneurship Spirit (YES) Workshop in

Cirebon, which was attended by 31 Participants. 5 #ONvolunteer from

Bank OCBC NISP participated in this program as mentor and judge,

helping the participants to sharpen their business plan.

Financial Literacy Education Workshop

Bank OCBC NISP held a financial literacy education events using

edugames, Smart Future for total of 285 students from State High

School, Vocational High School and University in Jakarta, Bandung and

Depok from January to March 2019. In addition, the Bank also held the

same program for journalists from 8 media in March 2019. 53

employees participated as #ONvolunteer in the above financial literacy

education events.

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Accolades

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.

2nd Satisfaction Loyalty Engagement Awards 2019

by Infobank Magazine and Marketing Research Indonesia (MRI) in March 2019

Categories:

- Rank III Engagement for Conventional Commercial Bank BUKU 3

- Rank III Net Promoter Score for Conventional Commercial Bank BUKU 3

- Rank I Satisfaction for Conventional Commercial Bank BUKU 3

- Rank I Satisfaction (Teller) for Conventional Commercial Bank BUKU 3

- Rank III Satisfaction (ATM) for Conventional Commercial Bank BUKU 3

- Rank II Loyalty for Conventional Commercial Bank BUKU 3

World’s Best Banks by Consumer Endorsement

by Forbes Magazine and Statista, New York

in March 2019

Category: One of “World’s Best Banks 2019” in the country Indonesia

Human

Capital

Others

• Team-up Senior executive OCBC Bank Singapore in Board of

Commissioners and Board of Directors OCBC NISP.

• Transfer knowledge throughout comprehensive training program,

business event, comparative studies, job attachment and guest

auditors.

• Provide capital support

• Create synergy to better support financing and transaction service

needs for customers

• Collaboration to build new capabilities in offering customer solutions

and services – inside and outside Indonesia

• Enhance Op & IT governance as well as information technology

implementation, while improving operational excellence

• Speedy remittances between Singapore and Indonesia aside from

Link-up ATM in Singapore and Indonesia.

Supports from Controlling Shareholder

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• Appendix

Agenda

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Vision

Mission

To be the Bank of choice with world-class standards, recognized for

its care and trustworthiness.

Bank OCBC NISP will conduct its business and will operate as an

honorable corporate citizen that grows together with the society in a

sustainable manner.

Vision and Mission

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• Fourth oldest bank in Indonesia was incorporated in 1941.

• Listed its shares on Indonesia Stock Exchange in 1994.

• Transformed the entire organization subsequent to adopted a new name PT Bank OCBC

NISP Tbk. by the end 2008.

• The merger with Bank OCBC Indonesia was completed on 7 February 2011 resulting in

one single banking entity and franchise for the group in Indonesia

• For over 78 years, the Bank has survived through any Indonesia economic crisis.

• The Indonesia’s eight largest bank at the end of December 2018.

• Currently employs 6,013 dedicated staff to serve customers in 61 cities across Indonesia

throughout 306 offices and 707 ATMs.

• Focus on serving the segment of SME and Retail.

• Solid financial performance with strong capital support from OCBC Bank Singapore.

Fact of OCBC NISP

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Pramukti Surjaudaja

President Commissioner– President Commissioner, Board of Commissioners, Bank OCBC NISP

since 2008

– President Director Bank OCBC NISP (1997-2008)

– Director of Bank OCBC NISP (1989-1997)

– Commissioner of Bank OCBC Indonesia (1997-2000)

– Council Member, South East Asia Council, INSEAD, France, since

2006

– Non Executive Director at OCBC Bank-Singapore since 2005

Peter Eko Sutioso

Deputy President Commissioner (Independent Commissioner)– Deputy President Commissioner of Bank OCBC NISP since 1998

– Commissioner Bank OCBC NISP (1997-1998)

– Director of Bank NISP (1972-1997)

– Active in Perbanas (Indonesian Banking Association) West Java as

Chairman of Perbanas West Java (1983-1988), and active in BMPD

West Java (1977-1990)

Jusuf Halim

Independent Commissioner– Independent Commissioner of Bank OCBC NISP since 2006

– Chairman of CPA Examination Board, the Indonesian Institute of

Accountants (2003-2007)

– Chairman of Financial Accounting Standards Committee (1994-1998)

– Member of Honorary Board-the Indonesian Institute of Audit

Committee (2010-2016)

Lai Teck Poh

Commissioner– Commissioner of Bank OCBC NISP since 2008

– Non Executive Director in OCBC Bank (Malaysia) Bhd since

2011

– Non Executive Director in OCBC Bank Ltd since 2010

– OCBC Bank Ltd (1988-2010) with latest management

position as Head, Group Audit

– Managing Director, Citicorp Investment Bank (Singapore)

Ltd (1986-1987)

Kwan Chiew Choi

Independent Commissioner– Commissioner Bank OCBC NISP since 2011

– Independent Commissioner of Bank OCBC Indonesia (2008-

2010)

– Senior Vice President & Head Credit Control and Approval,

OCBC Bank Ltd (1987-2007)

– Vice President of Corporate Banking, First National Bank of

Chicago (Singapore) (1984-1987)

– Loans Department Manager of Sumitomo Bank Ltd,

Singapore Branch (1973-1982)

Samuel Nag Tsien

Commissioner– Commissioner of Bank OCBC NISP since 2012

– Director of OCBC Wing Hang Bank, Limited since August 2014

– Director of Mappletree Investments Pte. Ltd. since March 2014.

– Chairman of the Association of Banks in Singapore since June 2013

– Joined OCBC Bank Ltd in 2007 and appointed as Group Chief

Executive Officer since April 2012 and as Director since February 2014

– Director of OCBC Bank (Malaysia) Berhard, OCBC Al-Amin Bank

Berhard, Great Eastern Holdings Ltd, and OCBC Overseas Investments

Pte. Ltd since April 2012

– Chairman of OCBC Bank (China) Ltd. since October 2012

– President and Chief Executive Officer of Bank of Amerika (Asia)

Hongkong, from1995-2006

Board of Commissioners as of 31 March 2019

Hardi Juganda

Independent Commissioner– Independent Commissioner of Bank OCBC NISP since

November 2017

– Commissioner of Bank OCBC NISP (July 2012-March 2017)

– Director Bank OCBC NISP (1997-May 2012)

– Head Positions in various branches and divisions of Bank

OCBC NISP (1985-1997)

Betti Setiastuti Alisjahbana

Independent Commissioner– Independent Commissioner of Bank OCBC NISP since

December 2017

– Independent Commissioner of PT Bhinneka Mentari Dimensi

(December 2015 – September 2017)

– Independent Commissioner PT Anabatic Technologies Tbk.

Since March 2015

– Chairman of Trustee Board of Institut Teknologi Bandung

since May 2014.

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Parwati Surjaudaja

President Director – President Director of Bank OCBC NISP since December 2008

– Deputy President Director Bank NISP (1997-2008)

– Director of Bank NISP (1990-1997)

– Senior Consultant at SGV Utomo/Andersen Consulting (1987-1990)

Emilya Tjahjadi

Managing Director– Director of Bank OCBC NISP since 2011

– Director of Bank OCBC Indonesia (2009-2010)

– SVP and Head Commercial Banking MME at HSBC, Jakarta

(2003-2009)

– American Express Bank Ltd., Jakarta (1996-2002) with last

position as Director of Corporate Banking

– Standard Chartered Group, Jakarta & Singapore (1991-1996)

with last position as Senior Relationship Manager

Hartati

Managing Director (Independent Director)– Director of Bank OCBC NISP since 2011

– Chief Financial Officer of Bank OCBC NISP (2010-2011)

– Assistant Director of Bank OCBC NISP (2008-2010)

– Accounting & Finance Division Head Bank OCBC NISP (2006-2008)

– General Manager Bank OCBC NISP (2005-2006)

– Bank Mandiri (2001-2005) with last position as Accounting Group

Head (Senior Vice President)

– Bank Bali (1984-2001) with last position as Financial Control

Department Head (Vice President)

Andrae Krishnawan W.


– Senior Corporate Executive Bank OCBC NISP (2009-2013)

– Assistant Director of Bank OCBC NISP (2007-2009)

– The Staff Director Bank OCBC NISP (2006-2007)

– Has experience in various positions in Bank International

Indonesia (1991-2006) with last position as Regional Head for

the last 7 years

Board of Directors as of 31 March 2019

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Martin Widjaja


– SVP & Head of International and Large Local Corporation in HSBC

(2010-2012)

– Senior Vice President, Commercial Banking, HSBC (2006-2010)

– Vice President, Commercial Banking (2004-2006) and Corporate &

Institutional Banking (2003-2004), HSBC

– Assistant Vice President Corporate & Institutional Banking, HSBC

(2002-2003)

– Manager Corporate Banking, HSBC Surabaya (2000-2002)

Johannes Husin


– Treasurer Bank OCBC NISP (2011-2013)

– Executive Vice President, Head of Trading & Sales Bank Danamon

(2008-2011)

– Executive Director – JP Morgan Chase Bank (2005-2008)

– Senior Vice President, Head of Trading Bank Danamon (2004-2005)

– Vice President, Senior Interest Rate Trader-Standard Chartered

Bank (2000-2004)

– Currency Forward Trader-ABN Amro Bank (1998-2000)

– Foreign Exchange Trader-Bank Dagang Nasional Indonesia (1997-

1998)

Board of Directors as of 31 March 2019 (Cont’d)

Mirah D. Wiryoatmodjo

Managing Director– Director of Bank OCBC NISP since June 2018

– Compliance Director of PT Bank Permata Tbk (2010-2018)

– Compliance Director of Citibank NA, Indonesia (2005-2010)

– Vice President of PT Bank Danamon Indonesia Tbk. (2004-2005)

– Senior Manager and Vice President of Citigroup Indonesia (1996-2004)

– Senior Manager of EXCO Nusantara Indonesia (1992-1996)

– Various positions at Bakrie Group

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Joseph Chan Fook Onn


– OCBC Group Risk Management (Feb-Mar 2014)

– Head of Internal Audit Division, OCBC Bank Malaysia Bhd (2010-

Jan 2014)

– Head of Internal Audit Division, Bank OCBC NISP – Jakarta

(2006-2010)

– Senior Audit Manager – Consumer Credit Review, OCBC Bank –

Singapore (2004-2006)

– Audit Manager, Standard Chartered Bank – Singapore (2000-

2003)

– Have more than 19 years banking experience especially in

Internal Audit.

Low Seh Kiat (Thomas)


– National Emerging Business Division Head Bank OCBC NISP (2010-

2013)

– Vice President, Business Division Head of Emerging Business OCBC

Bank, Singapore (2005-2010)

– VP, Head of Program Management & Marketing OCBC Bank,

Singapore (2004-2005)

– VP-GE Commercial Financing (S) Ltd, Singapore (2001-2004)

– Has experience in various head positions in Heller Factoring (S) Ltd,

Singapore (1995-1997) and Heller Asia Capital (S) Ltd, Singapore

(1998-2000)

– Sales Manager – D&D International Enterprise Ltd, USA (1992-1994)

Corporate Planning & Development

PT. Bank OCBC NISP Tbk

OCBC NISP Tower, 15th Floor

Jl. Prof. Dr. Satrio Kav. 25, Jakarta 12940

Phone : +62 21 255 33 888

Fax : +62 21 579 44 000

Website : www.ocbcnisp.com

Email : [email protected]

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http://www.ocbcnisp.com/

mailto:[email protected]

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