News

78% Increase in Net Profit for the First Quarter 2012

Jakarta, 30 April  2012

PT Bank Internasional Indonesia Tbk (“BII” or the “Bank”) today announced a consolidated net profit after tax and non-controlling interests of Rp267 billion for the first quarter ended 31 March 2012, a 78% increase from the Rp150 billion in the previous corresponding period ended 31 March 2011.  The Bank’s profit before tax reached Rp380 billion, 76% up compared to the previous corresponding period. The improved results were achieved on the back of strong loan growth, better performance of the Bank’s core businesses, and improvement of the overall banking operations. In addition, the decline in provision expenses due to improving asset quality also contributed to the stronger bottom line.

Dato’ Khairussaleh Ramli, BII’s President Director, said “I am pleased with our first quarter 2012 results and this is a good beginning for the year. I am indeed excited with the growth prospects of BII, as it continues to grow together with Indonesia. Our objective is to ensure that our business growth and performance are sustainable across all business segments, and we continue to capture market share profitably while ensuring good asset quality.”

The Bank continued to book strong loan growth in this first quarter.  It recorded a 23% consolidated loan growth from Rp56.7 trillion in March 2011 to Rp69.8 trillion in March 2012, consisting of Rp25.7 trillion or 37% from consumer loans, Rp17.1 trillion or 24% from SME loans, Rp8.4 trillion or 12% from Commercial loans, Rp18.2 trillion or 26% from Corporate loans, and Rp372 billion or 1% from Syariah banking.  The solid loan growth has brought the total asset to Rp96.5 trillion as of 31 March 2012; an increase of 25% from the corresponding period in 2011.

“I am pleased to report that the consolidated annualised return on equity (ROE) has improved significantly from 8.26% in March 2011 to 14.4% in March 2012. In pursuing greater growth, the Bank has identified product initiatives from each business line. Our focus to tailor products to customer needs and the continuous effort in maintaining good relationships with customers has enabled the Bank to serve customers with better suited and more comprehensive financial solutions,” Khairussaleh added.

Total deposits from customers increased by 20% to Rp72.0 trillion as of 31 March 2012, up from Rp60,2 trillion recorded on 31 March 2011. Savings accounts grew by 14% to Rp16.1 trillion as of 31 March 2012 from Rp14.0 trillion as of 31 March 2011, Current Accounts grew by 16% to Rp12.3 trillion from Rp10.6 trillion a year earlier, and time deposits increased by 23% to Rp43.7 trillion from Rp35.6 trillion.

“Our continuous introduction of innovative programs for savings products, and the expansion of our branch and electronic network have been carried out to improve funding composition and to enlarge our market reach. And this, on the back of our proven service excellence,” Khairussaleh said. 

As part of the strategy to be the most connected transaction bank in Indonesia, the Bank offers mobile banking service using the latest platform to provide convenience for our customers in undertaking banking transactions and bill payments. BII Mobile Banking connects with all electronic networks in Indonesia and has online and real time winning features to more than 80 banks under ATM Bersama, PRIMA/BCA and ALTO network. The Bank is also developing infrastructures for mobile branches (“kas keliling”) to introduce branches without borders concept. These mobile branches will be staffed with customer service representatives and with onboard ATMs which are able to serve multiple small communities located at areas where our branch is not present. BII Mobile Banking combined with other BII electronic banking services have brought the Bank much closer to the customers, and thus will support us in increasing our customer base.

The consolidated loan to deposit ratio (LDR) remained at our expected level of 96,30% as of 31 March 2012. The LDR for Bank only (without subsidiaries) remains at healthy level at 90.45%, while the Bank’s modified consolidated LDR which includes senior bond, long term borrowings, and customer deposits stood at 83.40% as of 31 March 2012.

The Bank’s growth across its business segments was accompanied by improved asset quality. BII’s gross non performing loans (gross NPL) level dropped to 2.00% as of 31 March 2012 from 2.57% as of 31 March 2011 and net NPL improved to 1.04% from 1.40%. The improvement in asset 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 31 March 2012 significantly decreased by 37% compared to the corresponding period in the previous year to Rp220 billion from Rp347 billion despite the 23% growth in our loans. This also includes a decrease in the provisions related to the motorcycle business of WOM on the Bank’s books by 33%.  

The Bank’s Net Interest Margin (NIM) decreased to 5.51% as of 31 March 2012 from 5.67% in the previous corresponding period, in line with the rest of the banking industry.  The Bank’s pricing strategy is kept in line with the overall plans of Bank Indonesia to support the economic growth in Indonesia.

Other operating revenues (fee based income) as of 31 March 2012 increased by 7% to Rp628 billion compared with Rp586 billion in the same period last year, contributing 35% of the Bank’s total operating income. The Bank’s total fee based income was mainly generated by increases in fees from corporate deals, treasury transactions, credit card usage, trade finance, remittances, and other services.

“Our ongoing synergy with Maybank Group creates new business initiatives to accelerate our growth momentum. The synergy provides opportunities to tap into regional reach and access for the Bank’s customers,” Khairussaleh said.  He added that the Bank recently launched BII Diamanté Visa Infinite Card, a credit card which provides access across the region for high net-worth individuals.  This card is designed to accord recognition and provide convenience with exclusive benefits for BII’s Platinum Access customers who travel overseas frequently.

Total overhead costs increased by 18% from Rp1.1 trillion to Rp1.2 trillion reflecting the Bank’s aggressive network expansion as well as investments in both human capital and IT infrastructure. During the first quarter 2012, the Bank has added 17 new branches and 38 ATM’s.  As of 31 March 2012, in total the Bank has 368 offices (including Syariah and overseas branches) and 1,190 ATMS including 65 CDMS.  The Bank is fully committed to invest in its network and infrastructure to serve the customers better and provide greater convenience.

Capital Adequacy Ratio (CAR) with credit, market, and operational risks was at 12.71% as of 31 March 2012 with Tier 1 Capital of Rp7.4 trillion and Tier 2 Capital of Rp2.8 trillion. Tier 2 capital includes the Rp1.5 trillion and Rp500 billion Subordinated Bond issued in May 2011 and in December 2011 respectively. Approval from Bank Indonesia to include Rp500 billion Subordinated Bond issued in December 2011 into Tier 2 capital was received by the Bank on 31 January 2012.

Maybank Chairman and President Commissioner of BII, Tan Sri Dato’ Megat Zaharuddin bin Megat Mohd Nor said, "BII's sustained strong growth trajectory further strengthens it as Maybank's franchise in Indonesia, serving widening communities across the archipelago. With increasing organisational capabilities and regional linkages to the Maybank Group, our staff are fully energised to fulfill customer needs, from simple to ever sophisticated products and services in this most dynamic economy of ASEAN".

Note for Editor:

BII is one of the largest banks in Indonesia with an international network that comprises 368 branches including Syariah branches and overseas branches, 1,190 ATMs including 65 CDMs (Cash Deposit Machines) BII across Indonesia, and also connected with more than 20,000 ATMs under ATM PRIMA, ATM BERSAMA, ALTO, CIRRUS, and Malaysia’s MEPS network, and to more than 3,500 Maybank ATMs in Malaysia and Singapore as well as a banking presence in Mauritius, Mumbai and the Cayman Islands. As of 31 March 2012 total customer deposit base of Rp72.0 trillion and Rp96.5 trillion in assets, BII provides full range of financial services through its branch and ATM network, phone banking, mobile banking and internet banking channels. BII is listed on the Indonesia Stock Exchange (BNII) and is active in SME, Consumer and Corporate & Commercial banking.

For further information, please contact:

Esti Nugraheni,

Division Head of Corporate Communication

Ph: +6221 2922-8888

InvestorRelations@bankbii.com