corporate presentation 1q 2019 - bni...1.7% in 1q2018, coverage ratio strengthened to 153.1%. third...

Corporate Presentation1Q 2019

PT Bank Negara Indonesia (Persero) TbkApril 2019< BBNI.IJ >

Outline

Macro Economy

Highlighted Results 1Q2019

Financial Performance 1Q2019

Business & Consumer Banking

Appendices

About BNI

5 Years Financial Data

3

2018 GDP exceeded 2017 at the level of 5.17% vs 5.07%. This level is the highest GDP in last 4 years.

Source: Bank Indonesia and BPS

Macro Economy

Higher Policy Rate to Curb Weakening Rupiah and Inflation still managable

3.02

4.37

3.61 3.40

3.12 2.88

3.13 3.12 2.58

2.48

4.75 4.75

4.25 4.25

5.25

5.75 6.00 5.25 6.00 6.00

2016 2Q'17 2017 1Q'18 2Q'18 3Q'18 2018 1M'19 2M'19 3M'19

YoY Inflation (%) 7-D RR Rate (%)

Adequate Foreign Reserve (in USD Billion) to finance 6.9 months import

116 129 130 126 120 115 121 120 123 124

13,436

13,492 13,548

13,756

14,404

14,929

14,481

14,072 14,062

14,243

2016 3Q'17 2017 1Q'18 2Q'18 3Q'18 2018 1M'19 2M'19 3M'19

Foreign Reserve Exchange Rate

By 1Q2019, Indonesian trade balance posted a deficit due to higher import realization than export

145.2168.8

44.3

88.0

135.0

180.0

40.5

-135.7-156.9

-44.0

-89.0

-137.0

-188.6

-40.7

9.5 11.9 0.3 -1.0 -2.0 -8.6 -0.2

2016 2017 1Q'18 1H'18 3Q'18 2018 1Q'19

Export (US$ Bio) Import (US$ Bio) Balance of Trade (US$ Bio)

Private Cons

Fix.Cap.Form.

Import

Export

Govt Spent

-20.8% -18.3% -19.2% -20.8% -20.9% -22.8% -22.1%

21.2% 19.1% 20.4% 21.1% 20.4% 22.1% 21.0%

34.1% 33.8% 33.3% 32.1% 31.2% 32.1% 32.3%

9.8% 9.5% 9.1% 6.3% 8.5% 8.7% 9.0%

57.5% 57.8% 57.3% 56.8% 55.4% 55.2% 55.7%

4.88% 5.03% 5.07% 5.06% 5.27% 5.17% 5.17%

2015 2016 2017 1Q'18 2Q'18 3Q'18 2018

14,487T

GDP

GDP (IDR)

11,526T 12,407T 3,507T13,589T 3,686T 3,836T

4

Banking Sector Highlights

Banking Sector Highlights [IDR Trillion] Macro & Banking Assumptions

Total Loans and Total Deposits grew by 12.0% and 6.4%respectively as of January 2019.

Net Profit grew 18.2% YOY supported by Net Interest Incomegrowth 2.6%.

Net Interest Margin as of January 2019 squeezed to 4.9% from5.2% in January 2018.

NPL ratio improved to 2.6% in January 2019 from 2.9% inJanuary 2018.

LDR increased to 94.0% in January 2019 from 89.1% in theprevious year as liquidity tightened

2017 2018 Jan 18 Jan 19 YoY

Total Assets 7,388 8,068 7,306 7,913 8.3%

Total Loans 4,738 5,290 4,632 5,187 12.0%

Total Deposits

5,289 5,630 5,229 5,563 6.4%

Net Profit 131 150 11 13 18.2%

NII 358 377 30.4 31.2 2.6%

FBI 133 144 19 19 -1.6%

NIM 5.3% 5.1% 5.2% 4.9%

NPL 2.9% 2.4% 2.9% 2.6%

LDR 89.0% 94.8% 89.1% 94.0%

CAR 23.2% 23.0% 23.4% 23.2%

BOPO 78.6% 77.8% 81.8% 87.8%

MACRO ECONOMY2019

BI’s VIEW2019APBN

GDP Growth (%) 5.3 5.3

Inflation (%) 3,5 +/- 1 3.5

Currency (IDR/USD) 15.000

BANKING SECTOR2019

BI

Loan Growth (%) 10 – 12

Deposit Growth (%) 8 – 10

5

All ratios are bank only unless otherwise stated.

Highlighted Results [Consolidated]

*) Interest Expense, Operating Expense and Provisioning Charges to Gross Operating Income

2016 2017 2018 1Q2018 1Q2019Growth

Amount YoY

B /

S[C

on

s] Total Asset (IDR Billion) 603,032 709,330 808,572 699,900 800,564 100,664 14.4%

Loan (IDR Billion) 393,275 441,314 512,778 439,460 521,349 81,889 18.6%

Third Party Funds (IDR Billion) 435,545 516,098 578,775 492,903 575,748 82,845 16.8%

P &

L[C

on

s]

Net Interest Income (IDR Billion) 29,995 31,938 35,446 8,496 8,859 363 4.3%

Non Interest Income (IDR Billion) 8,174 9,308 9,615 2,535 2,593 57 2.3%

PPOP (IDR Billion) 22,082 24,349 26,952 6,508 6,893 385 5.9%

Net Profit (IDR Billion) 11,339 13,616 15,015 3,656 4,076 420 11.5%

Pro

fita

bili

ty &

Effi

cien

cy

CASA (Consolidated) 64.6% 63.1% 64.8% 62.4% 60.5%

COF (Third Party Funds) 3.1% 3.0% 2.8% 2.8% 3.2%

NIM 6.2% 5.5% 5.3% 5.4% 5.0%

ROE 15.5% 15.6% 16.1% 16.3% 15.9%

ROA 2.7% 2.7% 2.8% 2.7% 2.7%

CIR 44.0% 43.9% 42.5% 42.6% 42.4%

BOPO *) 73.6% 71.0% 70.1% 70.5% 70.5%

Ass

et Q

ual

ity NPL (Gross) 3.0% 2.3% 1.9% 2.3% 1.9%

NPL (Nett) 0.4% 0.7% 0.8% 0.8% 0.9%

Credit Cost 2.0% 1.6% 1.4% 1.7% 1.3%

Coverage Ratio 146.0% 148.0% 152.9% 148.0% 153.1%

Liq

ui-

dit

y

LDR 90.4% 85.6% 88.8% 90.1% 91.3%

Cap

ital Tier-1 CAR 18.3% 17.4% 17.4% 16.9% 18.1%

Total CAR 19.4% 18.5% 18.5% 17.9% 19.2%

6

Profitability

Loan Growth

Asset Quality

Funding & Capital

What We Have Done…

Net Profit grew 11.5% YoY contributed by operating income growth and manageable operating expense and creditcost.

Interest Income growth improved from 9,6% in 1Q2018 to 12.1% YoY in 1Q2019 as part of upfront loading loangrowth strategy where in 1Q2019 loan grew 18.6% above industry.

Loan grew by 18.6% YoY exceed industry loan growth of 12.0%. Business Banking loan was the main contributor forloan expansion of Rp69,6T or 20.4% YoY, consist of: Private Corporate and SOE segments loan rose respectively by Rp29,4T (22.1% YoY) and Rp23,9T (28.6% YoY). Medium and Small segments increased by Rp5,6T (8.4% YoY) and Rp10.7T (18.5% YoY) respectively.

Payroll Loan was still the driver of growth for Consumer Banking segment, grew by 25.0% YoY. Mortgage grew Rp3,6T(9.4% YoY).

Asset Quality showed improving trends YoY as a result of effective Credit Risk Management and selective loanexpansion preferably to top players in each of their industry. NPL recorded at 1.9%, Credit Cost reduced to 1.3% from1.7% in 1Q2018, Coverage Ratio strengthened to 153.1%.

Third Party Funds increased by Rp82,8T (16.8% YoY) above industry growth at 6.4% YoY. Cost of Fund increased to 3.2% from 2.8% in 2018 caused by increasing of time deposit rate. Adequate Capital (CAR 19.2%) provided a buffer to support business growth.

Financial Performance 1Q 2019

8

Balance Sheet Highlight [Consolidated]

Balance Sheet [Rp Billion] 2016 2017 2018 1Q2018 1Q2019Growth

Amount YoY

Total Assets 603,032 709,330 808,572 699,900 800,564 100,664 14.4%

Placement with other banks & BI 33,662 28,593 39,324 12,410 19,201 6,792 54.7%

Marketable Securities [market value] 23,856 36,359 32,362 38,432 35,712 (2,720) -7.1%

Government Bonds [market value] 63,006 79,849 86,791 90,524 86,720 (3,804) -4.2%

Loans (gross) 393,275 441,314 512,778 439,460 521,349 81,889 18.6%

Third Party Funds 435,545 516,098 578,775 492,903 575,748 82,845 16.8%

Deposits from other Banks 10,801 12,177 14,233 16,058 17,367 1,309 8.2%

Marketable Securities Issued 7,227 3,482 3,087 3,482 3,087 (395) -11.3%

Borrowings 32,338 44,722 52,025 43,945 52,584 8,639 19.7%

Shareholders’ Equity 89,254 100,903 110,374 99,112 115,842 16,730 16.9%

9

Loan Composition [Consolidated]

*) Incl. Overseas Loans

Loan Yield by Segment [IDR] & Blended Loan Yield (%) – Bank Only

Loan by Currency (%)

85% 85% 84% 84% 83%

15% 15% 16% 16% 17%

2016 2017 1Q'18 2018 1Q'19

Non IDR IDR

10.2%

9.6%9.8% 9.8% 9.9% Corporate,

9.6%

11.0% 10.9%

10.5% 10.5% 10.5%Medium, 10.5%

11.7%

11.5% 11.3%

11.3% 12.0%Small, 11.2%

12.1%

11.6% 11.5% 11.4%

11.3%Consumer,

11.0%

10.0%

9.7%

9.9%

9.7% 9.7%Loan Yield,

9.4%

2017 1Q'18 1H'18 3Q'18 2018 1Q'19

Segment 2016 2017 2018 1Q2018 1Q2019Growth Compo-

sitionAmount YoY

Bu

sin

ess

Ban

kin

g

Corporate Private *) 116,990 134,392 151,711 132,674 163,612 30,938 23.3% 31.4%

Corporate SOE 78,319 84,366 110,988 83,414 105,723 22,309 26.7% 20.3%

Medium 61,330 70,261 74,731 67,083 72,721 5,638 8.4% 13.9%

Small 50,684 56,479 66,063 57,727 68,422 10,696 18.5% 13.1%

SUBTOTAL 307,323 345,498 403,493 340,897 410,478 69,581 20.4% 78.7%

Co

nsu

mer

Mortgage 36,396 37,066 40,753 37,894 41,473 3,579 9.4% 8.0%

Payroll Loan 12,026 17,687 23,744 19,074 23,851 4,777 25.0% 4.6%

Credit Card 10,549 11,635 12,558 11,845 12,505 659 5.6% 2.4%

Others 6,097 5,057 2,680 5,037 2,278 (2,759) -54.8% 0.4%

SUBTOTAL 65,068 71,445 79,735 73,850 80,107 6,257 8.5% 15.4%

Subsidiaries 20,882 24,369 29,550 24,712 30,764 6,052 24.5% 5.9%

Total 393,273 441,312 512,778 439,460 521,349 81,889 18.6% 100.0%

Working Capital 191,173 226,191 269,258 224,420 262,102 37,681 16.8% 50.3%

Investment Loan 125,281 130,292 149,270 127,726 164,200 36,474 28.6% 31.5%

[%, Rp Billion]

10

Loan Quality [Bank Only]

In Corporate Segment, NPL ratio improving, one of whichwas driven by upgrade of textile manufacturer – Rp323 Bn

New NPL 1Q2019 from Corporate Segment:

• Hotel in Bali & Surabaya – Rp 104 Bn – financialperformance

• Textile (Garment) manufacturer in West Java – Rp 92Bn – cashflow problem

• Bicycle distributor in Surabaya – Rp 40 Bn – Declining ofsupply caused cashflow problem

SML ratio improved from 4.5% in 1Q2018 to 4.2% in1Q2019. Nevertheless SML ratio in medium segmentincreased dominated by Mining, Trade, Restaurant & Hotelas well as construction.

New SML 1Q19 in Corporate Segment:

• Tin Manufacture and Mining in Bangka – Rp 624 Bn –impending administrative matter impacts salesperformance

Corporate SML improved driven by upgrade of cementproducer Rp 1,6 Tn

Top 3 downgraded debtors to SML in 1Q2019 from MediumSegment:

• Shipyard manufacture and service in West Borneo –Rp146 Bn – delayed payment from its customer

• Marble Mining in South Celebes – Rp111 Bn – delayedpayment from its customer

• Hotel in West Java – Rp102 Bn – Force majeure

11,042 9,415 9,386 9,193 9,247

2.7 1.9

1.7 1.7

Corporate, 1.6

3.2

2.8

3.1

2.6 Medium, 2.7

3.6

2.7 3.0

1.6 Small, 1.9

2.8

2.5

2.5

2.1 Consumer, 2.2

3.0

2.3 2.3

1.9 Total NPL, 1.9

2016 2017 1Q'18 2018 1Q'19

10,913 15,730 18,513 19,006 20,417

1.6

2.5 4.1

3.3

Corporate, 3.0

5.1

6.8

5.1

7.2 Medium, 8.3

4.2

4.9 5.2

3.7

Small, 4.7

3.8 3.9

4.5

3.2 Consumer, 3.8 2.9

3.8 4.5

3.9 Total SML, 4.2

2016 2017 1Q'18 2018 1Q'19

Total Amount

Total Amount

Special Mention by Segment [%, Rp B]

NPL by Segment [%, Rp B]

11

Loan at Risk, Write Off, Recovery and Coverage

% Loan at Risk to Loan Ratio (Bank Only)

11,042

9,415

9,386 9,193

9,247

16,122 13,935 13,895 14,060 14,154

146.0%

148.0%148.0%

152.9% 153.1%

2016 2017 1Q'18 2018 1Q'19

Coverage Ratio (Bank Only)

NPL (Rp B) CKPN (Rp B) Coverage Ratio

3,012

8,730

1,844

7,447

1,511 1,497 2,220

449

2,657

507

49.7%25.4%

24.3% 35.7% 33.5%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2016 2017 1Q'18 2018 1Q'19

Write Off & Recovery (Bank Only)

Write Off (Rp Bn) Recovery (Rp Bn) Recov. to Write Off Ratio

Total Loan at Risk increased from 7.9% in 2018 to 8.3% in 1Q2019 exceptfor Corporate Segment which was improved.

Total write-off until 1Q2019 was Rp 1,5T lower than 1Q2018 (Rp 1,8T). Itwas implemented with strict procedure based on stipulated requirementsin writing-off loan, including minimum of 100% provision requirement.

Legal actions have been taken along with collateral execution to increaserecovery rate.

Increasing in coverage ratio to 153.1% as an additional buffer toanticipate down cycle of macro environment or to fulfil regulatoryrequirement.

Years Corporate Middle Small Consumer Total

2016 10.7% 16.9% 12.0% 8.0% 11.4%

2017 8.1% 16.2% 11.1% 8.2% 9.9%

1Q'18 8.0% 16.4% 11.3% 7.8% 9.8%

2018 6.3% 14.4% 8.6% 6.5% 7.9%

1Q'19 6.1% 16.2% 9.9% 7.1% 8.3%

Corp Middle Small Cons TOTAL Corp Middle Small Cons TOTAL

2016 382 659 696 1,274 3,012 258 418 501 319 1,497

2017 2,991 2,271 1,915 1,553 8,730 651 635 565 368 2,220

1Q2018 590 482 450 322 1,844 95 107 150 98 449

2018 1,833 1,826 2,150 1,638 7,447 791 483 886 497 2,657

1Q2019 314 544 365 289 1,511 75 115 198 118 507

Write Off (Rp Bn)Year

Recovery (Rp Bn)

12

Restructured Loan [Consolidated]

Restructured Loan Profile (Bank Only)

5,285 5,577 3,498 3,525 3,560

11,401 11,872 11,268 11,645 12,321

14,747 12,978 12,769 14,131 14,449

8.0% 6.9% 6.3%5.7% 5.8%

2016 2017 1Q'18 2018 1Q'19

Types of RestructuredLoan & Ratio (Rp Bn, %)

31,433 30,426

Ext. Maturity

Ext. Maturity, Interest Rate

Ext. Maturity, Interest Rate,& Other

Total

27,535

Restructured loan to total loan ratio in 1Q2019 improved to5.8% from 6.3% in 1Q2018 supported by upgraded debtorfrom textile manufacture Rp 323 Bn.

New restructured loan in Corporate segment:• Rubber Plantation in Jambi – Agriculture – Rp 214 Bn

Top 3 new restructured loan in Middle segment:• Hotel in Palembang – Rp109 Bn• Hotel in East Java – Rp69 Bn• Pharmacy Industry in Surabaya – Rp47 Bn

Restructured loan strategies:• Restructuring loan scheme based on debtor’s capacity• Assisting debtors to find strategic investors

29,199

9.4% 13.8% 16.2% 16.6% 15.7%

21.5%28.5% 31.7%

42.6% 42.0%

69.1%57.6% 52.1%

40.7% 42.3%

2016 2017 1Q'18 2018 1Q'19

Restructured Loan by Collectibility(Rp Bn, %)

31,433 30,426

Current

SML

NPL

Total27,535 29,19930,331 30,331

Manufacturing25.7%

Rupiah83.2%

Working Capital59.0% Corporate

46.9%

Trading, restaurants, and hotels

24.6%

Valas16.8%

Investment35.5%

Middle32.9%Business Services

13.0%

Consumptives5.5% Small

14.7%

Mining10.8%

Consumer 5.5%

Agriculture 6.7%

Transportation, warehousing,

and communications

6.2%

Others 5.5%

Construction4.7%

Electricity1.9%

Social Services

1.0%

Sectors Currency Type of Loan Segmentation

Restructured Loan to Total Loan

13

Third Party Funds [Consolidated]

CASA Strategy

Enhancing relationship with corporate segment customers andinstitutional clients as gateway to increase the growth of currentaccount and number of account respectively.

Current account growth supported by loan related business(corporate, medium and small segment) and non-loan relatedbusiness (government institution, SOEs and private business).

Cash management service offered as integrated financial solution.

2017 2018 1Q201

8

1Q201

9

# of Outlets 2,150 2,256 2,153 2,247

E-channel – # of

ATM

17,966 18,202 18,016 18,366

Branchless Banking

– # of Agent4669,589

111,83

682,344

117,41

5

# of EDC 167.329 172.15

1

167,08

3

190.47

7

Optimizing digital banking features to increase customers experiencein transactions

Promoting more agency partnership to both increase branchlessbanking number and support saving accounts growth.

Cash Management 2017 2018 1Q2018 1Q2019

# of Customer 37.134 48.161 39.936 52.076

# of Transactions (Mn) 78.4 115.8 25.4 29.8

Value of Transactions (Tn) 2,137 2,864 613.1 602.9

122,652 143,162 132,819 169,274

164,963

158,662 182,295 174,637

206,056 183,622

154,230 190,641

185,447

203,445 227,162

64.6% 63.1% 62.4% 64.8% 60.5%

2016 2017 1Q'18 2018 1Q'19

Current Account Saving Time Deposit CASA Ratio

By

Typ

e [R

pB

illio

n]

Time Deposit22.5% YoY

SavingAccount5.1% YoY

Current Account24.2% YoY

Total16.8% YoY

435,545

516,098 492,903 578,775 575,748

Cost of Fund Number of Account – Bank Only

Deposit account increased by 7,3 million (19,4% YOY) in 1Q2019.

22.4 32.8 37.6 44.0 44.9

3.13.0

2.8 2.8

3.2

2016 2017 1Q'18 2018 1Q'19

Number of Acc. (Mn) Cost Of Fund (%)

14

Profit & Loss Highlight [Consolidated]

Profit & Loss [Rp Billion] 2016 2017 2018 1Q2018 1Q2019Growth

Amount YoY

Interest Income 43,766 48,176 54,139 12,672 14,200 1,528 12.1%

Interest Expense (13,771) (16,238) (18,693) (4,176) (5,341) (1,165) 27.9%

Net Interest Income 29,995 31,938 35,446 8,496 8,859 362 4.3%

Premium Income Net 1,342 1,768 1,712 353 470 117 33.3%

Non Interest Income 8,174 9,308 9,615 2,535 2,593 57 2.3%

Recovery 1,378 1,732 1,997 401 467 66 16.4%

Operating Income 40,889 44,746 48,771 11,786 12,389 603 5.1%

Operating Expense (18,806) (20,396) (21,783) (5,278) (5,495) (218) 4.1%

Pre-Provision Income [PPOP] 22,083 24,349 26,988 6,508 6,893 385 5.9%

Provisioning (7,853) (7,126) (7,388) (1,909) (1,728) 181 -9.5%

Non Operational Inc/(Exp) 74 (57) 221 (22) (33) (12) -53.4%

Net Income before Tax 14,304 17,166 19,821 4,577 5,132 555 12.1%

Net Income 11,339 13,616 15,015 3,656 4,076 420 11.5%

Net Income Per Share (full amount) 610 730 805 196 219 23 11.5%

15

Non Interest Income [Consolidated]

Recurring Fee Growth [Rp Billion]

116 138

1Q 2018 1Q 2019

Bank Guarantee

BG fee supported by oil & gas and infrastructure loan growth

Mar-18 Mar-19 Growth

# of Item Transaction 7.782,0 7.839,0 0,7%

282 334

1Q 2018 1Q 2019

Trade Finance

Trade Finance fee was driven by growth ininternational trade transactions.


Volume (USD Billion)

Export 6,5 7,5 14,2%

Import 4,8 5,1 5,2%

Total 11,3 12,6 10,4%

Breakdown Non Interest Income [Rp Billion]

FBI Growth Driver

Relationship with Corporates leads to significant growth on fee

based incomes (trade finance, bank guarantee, and syndicated

loan).

Enhancement on digital banking service.

Expanding Branchless Banking across of Indonesia.

Productivity of 2,247 outlets.

41

78

1Q 2018 1Q 2019

Syndicated Loan

Fee growth was driven by an increase of syndicated loan being arranged since BNI #1 in term of

bookrunner and MLA


Facility Arranged (Rp Bn) 5.995 31.393 423,7%

344 401

1Q 2018 1Q 2019

Card Business


# of Transaction

(Thousand)8.384 8.368 -0,2%

Sales Volume (IDR

Mn)9.127 9.685 6,1%

2016 2017 2018 1Q2018 1Q2019 Growth

Recurring Fee 7,598 8,441 9,379 2,303 2,545 10.5%

Non Recurring 576 867 236 232 47 -79.7%

Total 8,174 9,308 9,615 2,535 2,593 2.3%

Top 10 Fee Based IncomeRp Billion

1Q2018 1Q2019Growth

YoY

Co

nsu

mer

&R

etai

l

Account Maintenance 418 442 5.8%

Card Business 344 401 16.8%

ATM 247 307 24.3%

Debit Card Maintenance 64 106 66.2%

Remittance 50 57 13.7%

Bu

sin

ess

Ban

kin

g

Trade Finance 282 334 18.5%

Bank Guarantee 116 138 18.6%

Syndicated Loan 41 78 91.5%

Pension Fund 40 51 28.4%

Custody 20 24 21.6%

Boosting fee from growing sales volumes and new initiatives on chargeable features

64 106

1Q 2018 1Q 2019

Debit Card Maintenance

High growth driven by increasing number of debit card


Num of Debit Card

(Million)20.6 26.9 30.6%

247 307

1Q-2018 1Q 2019

ATM


# of Transaction (Mn) 292 350 19,9%

Boosting fee from growing number of transactions

16

Operating Expense [Consolidated]

Cost to Income Ratio – Bank Only [%]

44.0 43.9

42.6 42.5 42.4

2016 2017 1Q'18 2018 1Q'19

OPEX GROWTH [Rp Billion]

OPEX Composition [Rp Billion]

Growth in IT expense is tosupport various digitalbanking initiatives and alsogrowing numbers of businesstransactions.

247

269

1Q'18 1Q'19

IT Expense

2,544 2,556

1Q'18 1Q'19

HR Expenses

1,410 1,460

1Q'18 1Q'19

General & Administrative Expense

Promotion expense (5,0% YoY)to support business was one ofthe main driver on increasingGA expense.

Office Utilities,

50.4%

Office Equip. & Supplies, 0.6%

Repair & Maintenance, 9.9%

Rent , 20.1%

Office Traveling, 2.4%

Promotion, 15.6%

R & D , 1.0%

OPEX 2016 2017 2018 1Q2018 1Q2019Growth

YOY

HR Expense 8,834 9,277 9,519 2,544 2,556 0.5%

GA Expense 5,129 5,858 6,607 1,410 1,460 3.6%

IT Expense 1,062 1,052 1,153 247 269 8.7%

Regulatory Exp 990 1,180 1,323 319 369 15.7%

Deprec. & Amort. 960 1,043 1,193 269 334 24.1%

Others 1,829 1,986 1,989 490 508 3.6%

Total 18,806 20,396 21,783 5,278 5,495 4.1%

Slowing HR expense growth due toimplementation of HR function strategy tocreate efficiency and optimization in HRcost structure as well as increaseproductivity.

GA Expense Composition

17

Asset & Liability Management

Liquidity is also a focal point that needs to be well managed

in the current volatile environment. Currently the

liquidity in BNI can cover both short term obligation as can be seen from LCR which stands at

185% and also longer term obligation as reflected by NSFR

that is at 133% level.

(Rp Tn)

126.77 122.68 124.06 122.2 111.96

97.42 102.74 103.67 108.67

95.01

37.47

51.38 45.38 45.14

32.89

211%239%

213%192%

180%

Mar-18 Jun-18 Sep-18 Des-18 Mar-19

HQLA Cash Outflow

Cash Inflow LCR

Liquidity Coverage Ratio

475.77 505.18

524.01 555.87

538.75

343.07 361.78

386.37 413.94 404.76

139%140% 136% 134% 133%

Mar-18 Jun-18 Sep-18 Des-18 Mar-19

ASF (Available Stable Funding)

RSF (Required Stable Funding)

NSFR (Net Stable Funding Ratio)

(Rp Tn)

Net Stable Funding Ratio

91.0%

84.8%

89.2% 89.8% 89.6%88.0%

91.6%

87.4%90.0%

94.7%

77.0%

86.6%

92.6%

89.8%

2016 2017 Q1 2018 1H'18 Q3'18 2018 Q1'19

IDR FX

In the tightening liquidity situation, BNI managed to maintain LDR between 89%-91%, still in line with management’s guidance and lower than banking industry.

LDR of IDR & FX

Business & Consumer Banking

19

Corporate BusinessBusiness Highlight

Risk Management :

Growth in Corporate segment is in line with ourguideline and focus on financing priority sectors suchas manufacturing and infrastructure

Top expansion in private came from pulpmanufacturing and business services, while in SOEcontributed by logistic trading.

Demand from SOE loan in 2019 expected to becontributed by infrastructure loan; with biggestpipeline from toll road & construction andmanufacturing.

More loan demand for Private sector mostly comesfrom manufacturing sector (palm oil refinery, pulp &paper), electricity sector (IPP) and selected miningsectors (coal related to IPP).

All Infrastructure projects financing until 1Q2019 havebeen done under syndicated scheme.

Prudent business development focusing on low riskportfolio; SOEs and top rank private corporates.

Strengthen industry specialist implementation on loanassessment process and portfolio management.

*) including Overseas

Sectors *) NPL NPL

(Rp Billion) Amount YoY 1Q2018 1Q2019

Business Services 22,709 27,842 35,235 20,981 33,545 12,564 59.9% 12.5% 0.7% 0.9%

Manufacture 54,034 55,941 69,350 59,104 69,472 10,368 17.5% 25.8% 4.1% 2.9%

Trading, Resto & Hotel 9,207 16,490 26,591 20,955 31,100 10,145 48.4% 11.5% 0.4% 1.3%

Construction 8,907 16,869 22,200 15,749 22,475 6,726 42.7% 8.3% 0.0% 0.0%

Electricity, Gas and

Water 27,387 25,232 22,328 27,574 33,300 5,726 20.8% 12.4% 0.0% 0.0%

Mining 12,472 9,496 15,704 8,210 12,769 4,559 55.5% 4.7% 12.2% 10.1%

Agriculture 35,706 38,840 38,189 34,116 38,147 4,031 11.8% 14.2% 0.0% 0.0%

Social Services 2,805 5,496 7,623 4,795 7,693 2,898 60.4% 2.9% 0.0% 0.0%

Others 4,434 5,114 5,130 3,759 3,550 -209 -5.6% 1.3% 0.0% 0.0%

Transport, Warehouse

and Communications 17,648 17,439 20,479 20,844 17,282 -3,562 -17.1% 6.4% 0.0% 1.2%

Total Corporate &

SOE 195,309 218,758 262,828 216,088 269,333 53,245 24.6% 100.0% 1.7% 1.6%

2016 2017 2018Growth Compo-

sition Q1-2019Q1-2018

27.7%

25.6% 25.9% 26.4%25.8%

3.0% 4.5% 4.1% 3.5%2.9%

2016 2017 1Q2018 2018 1Q2019

Manufacturing

Composition NPL

6.4%

4.3% 4.3%6.0% 4.7%

8.8%10.4%

12.2%

8.3%10.1%

2016 2017 1Q2018 2018 1Q2019

Mining

Composition NPL

4.7%

7.5% 8.3%10.1%

11.5%

1.7% 1.1%0.0%

1.4% 1.3%

2016 2017 Q1'18 2018 Q1'19

Trading, Resto & Hotel

Composition NPL

20

Corporate Business

Power Plant

Oil & Gas

Toll Road & Cons

Telco

Transport

BNI Infrastructure Loan [Rp Billion]6 Sectors of Infrastructure Priority Projects as Financing Opportunity

All of the toll road projects financing are under syndicated schemes

Agriculture Sector

Average of Collateral Coverage 138%

Toll Road Projects

Real Daily Average Traffic was inline with the assumption used in feasibility study

Source: Committee for Acceleration of Priority Infrastructure

Delivery (KPPIP), 2H-2018

Expansion in Agriculture sector was selective given to the top players in the sector.

For risk mitigation purpose, minimum requirement of 100% collateral coverage applied.

2019 Main Pipeline

Road

15 Project

USD34 B

Transport

11 Project

USD20 B

Electricity

6 Project

USD44 B

Energy

8 Project

USD86 B

Telco

1 Project

USD0.4 B

Water

5 Project

USD0.4 B

1Q-2018 1Q-2019 YoY

1 P T P N 6,342 6,555 3% 124.9%

2 S L M 3,181 4,480 41% 153.5%

3 T L G 3,095 2,852 -8% 145.7%

4 B W P T 2,891 2,871 -1% 165.9%

5 B S T 2,871 4,142 44% 113.3%

6 K R N 2,753 2,818 2% 120.0%

7 G M A 2,636 2,945 12% 117.5%

8 G S C 2,409 1,466 -39% 134.5%

9 C B I 1,543 1,498 -3% 133.3%

10 C B R 544 974 79% 166.5%

No GroupOutstanding (IDR Bn) Coverage of

Collateral

30% 29%23%

30%23%

14% 13%17%

11%17%

27% 30% 34% 29% 34%

19% 17% 15% 19% 15%

11% 11% 11% 11% 11%

2016 2017 2018 Q1 2018 Q1 2019

113,92499,512 103,27786,291 110,604

Forecast Real %

1 Pemalang-Batang 15,497 25,698 165.82% 15.06% Full Operated Dec'18

2 Kanci-Pejagan 20,755 23,166 111.62% 16.93% Full Operated

3 Pejagan-Pemalang 18,510 17,320 93.57% 15.88% Full Operated Dec'18

4 Surabaya-Mojokerto 47,953 42,068 87.73% 15.55% Full Operated

5 Semarang-Solo 55,248 46,752 84.62% 14.52% Full Operated Dec'18

6 Bali 60,679 50,294 82.89% 14.19% Full Operated

7 Solo-Ngawi 15,575 12,401 79.62% 14.80% Full Operated Dec'18

8 Ngawi-Kertosono 11,999 8,194 68.29% 15.10% Full Operated Dec'18

9 Bekasi-Cawang-Kpg Mly 34,887 22,033 63.16% 13.36% Partial Operated

11 Gempol-Pasuruan 18,525 10,670 57.60% 16.00% Partial Operated

12 Mdn-Kualanamu-Teb Tg 13,990 8,001 57.19% 14.24% Partial Operated

AVERAGE 14.52%

Average daily TrafficKeteranganIRRToll SectionNo

TRANS JAVA TOLL ROAD

1 Transmarga Jateng Semarang-Solo 72.64 12

2 Jasamarga Surabaya Mojokerto Surabaya-Mojokerto 36.27 11

3 Jasamarga Solo Ngawi Solo-Ngawi 90.10 15

4 Jasamarga Ngawi Kertosono Kediri Ngawi-Kertosono 87.02 15

5 Jasamarga Pandaan Malang Pandaan-Malang 37.62 15

6 Jasamarga Gempol Pasuruan Gempol-Pasuruan 49.51 15

7 Marga Trans Nusantara Serpong-Kunciran 11.19 15

8 Jasamarga Jalanlayang Cikampek Jakarta-Cikampek Elevated 61.40 15

9 Jasamarga Kunciran Cengkareng Kunciran-Cengkareng 14.19

10 Kresna Kusuma Dyandra Marga Bekasi-Cawang-Kmpng Mly 11.47 15

11 Semesta Marga Raya Kanci-Pejagan 35.00 12

12 Pejagan Pemalang Toll Road Pejagan-Pemalang 57.50 12

13 Pemalang Batang Toll Road Pemalang-Batang 39.20 12

14 Cibitung Tj Priokport Toll Road JORR 2 34.02 15

15 Waskita Bumi Wira Krian-Lgnd-Bndr-Mnyr 63.29 15

NON - TRANS JAVA TOLL ROAD

1 Jasamarga Manado Bitung Manado-Bitung 39.90 15

2 Jasamarga Kualanamu Tol Mdn-Kualanamu-Tbg Tgi 61.70 15

3 Jasamarga Bali Tol Bali 9.70 15

4 Hutama Karya Bakaheuni-Trbgi Besar 140.94 15

5 Hutama Karya Terbanggi Besar-Kya 189.20 15

6 JTD Jaya Pratama Semanan - Plgb 31.16 15

7 Transbumi Serbaraja rpong - Balaraja 39.30 15

LENGTH

(KM)

PERIOD

(YEARS)NO DEBTOR SECTION

SOE LOANINFRASTRUCTURE

Oil, Gas & Mining SOE Oil & Gas

Electricity Project under 35.000 MW programs

Toll Road &

Construction

Trans Java Toll Road & its Supporting toll

road i.e., Cibitung - Cimahi, Cibitung

Tanjung Priok, and Jasa Marga Cikampek

Eleveted approximately amounted IDR

2,7Tn.

Telecommunication Fiber Optic Project

NON INFRASTRUCTURE

Manufacture Cement, pharmacy

Social services Logistic Supply

PRIVATE LOANManufacture Pulp Paper & Palm Oil Refenery

Agriculture CPO Plantation

Electricity Power Plant - Independen Power Producer

(IPP)

21

Medium BusinessSectors

(Rp Billion)

Manufacture

Electronic, Automotive, Steel &Base Metal

Food & Beverages Industry

Non metal mining processing industry

Trading, Restaurant & Hotel

Resto & Hotel

Distribution

Retailer

Agriculture

Business Services

Others – Real Estate related

Rental services – heavyequipment, transportation,

machinery, building

Transport, Warehouse and Communications

Construction

Electricity, Gas and Water

Mining

Social Services

Total Medium

Growth Compo-sition

NPL

Amount YOY 1Q2018 1Q2019

1,404 7.6% 27.5% 2.3% 3.5%

771 10.5% 11.1% 2.0% 4.4%

380 13.3% 4.5% 0.0% 0.0%

409 35.9% 2.1% 0.0% 0.0%

615 2.8% 30.8% 4.6% 3.1%

-35 -0.5% 10.5% 4.1% 1.0%

839 12.1% 10.7% 5.9% 2.9%

-105 -2.6% 5.5% 4.6% 5.1%

665 21.3% 5.2% 1.9% 1.4%

563 9.4% 9.0% 4.2% 0.9%

-871 -25.5% 3.5% 2.9% 0.0%

1,386 56.4% 5.3% 6.1% 1.5%

908 14.2% 10.0% 1.1% 1.9%

722 10.9% 10.1% 3.3% 2.6%

-149 -25.2% 0.6% 0.0% 8.7%

287 15.2% 3.0% 4.3% 2.6%

624 29.1% 3.8% 0.0% 0.3%

5,638 8.4% 100.0% 3.1% 2.7%

2016 2017 2018 1Q2018 1Q2019

18,655 20,285 19,585 18,579 19,984

6,514 7,764 7,741 7,325 8,096

2,379 2,852 3,341 2,862 3,242

1,139 1,103 1,196 1,138 1,547

19,316 23,220 23,497 21,792 22,406

5,918 8,164 7,937 7,655 7,619

6,595 7,260 7,408 6,921 7,760

4,177 4,472 4,554 4,082 3,977

2,238 3,173 3,622 3,119 3,784

4,803 5,870 7,082 5,956 6,518

2,546 3,431 3,317 3,415 2,544

2,177 2,370 3,513 2,458 3,844

5,538 6,307 7,940 6,397 7,305

6,095 6,977 7,787 6,614 7,336

653 623 456 592 443

1,680 1,947 2,007 1,887 2,174

2,352 1,857 2,755 2,147 2,771

61,330 70,261 74,731 67,083 72,721

Business Highlight

Medium segment growth was driven by growth on priority sectorsi.e., manufacturing, trading, restaurant & hotel and Agriculturethat focus on local competitive advantage (e.g. in Bali mostly intourism related industry, and Sumatera in Commodity-basedindustry, etc.).

Focus in major business cities & center of economy with 65% ofloan portfolio is in Java.

Supply Chain Financing (SCF) is linked to High Quality Corporatedebtors.Top 5 Corporate debtors act as SCF anchors includes Pertamina,Karya SOE’s, PLN, Sinar Mas Group and Musim Mas.

In 1Q2019, BNI supply chain financing grew 20.9% YOY.

Supply Chain Financing8,475

9,641

11,963

8,880 10,733

2016 2017 2018 1Q 2018 1Q 2019

IDR Billion

Credit Risk Management

Focus on asset-based lending reflected in better collateral ratio andhigher growth in extensive fixed asset sector.

Expanding only to debtors focused on their core business & its localcompetitive advantage with sound financial ratio.

Enhancing loan quality with Mckinsey as consultant Dedicated officer to manage Loan at Risk.

Debtor’s Financial Ratio

Rasio Dec-16 Dec-17 Dec-18 Mar-19

EBITDA/Interest (>200%) 78,4% 78,3% 76,05% 83,38%

Collateral (>100%) 97,0% 97,7% 97,53% 97,89%

Current Ratio (> 1) 90,3% 90,5% 86,43% 92,45%

DER (<2) 82,1% 86,3% 84,28% 84,29%

22

Small Business

Portofolio by Product


Business Highlight

Number of Outlets

KUR and BCM were main contributors onsmall segment’s loan growth.

Agriculture sector had the highest loan growthpercentage, while Trading, Resto & Hotel stillgrew the most in terms of numbers.

Optimized supply chain financing fromcorporate partners supported loan growth.

Expansion in agriculture sector was corporate-driven using umbrella agreement withprominent corporate as off-taker

Credit Insurance coverage for small segment Limiting coverage area of expansion to

maximum radius of 10 km to enhance creditmonitoring

Asset-based collateral for BWU & BCM withaverage collateral coverage ratio of 110%

KUR is covered by insurance and subsidized bygovernment

Increased number of customer base to reducethe ticket size, thus spreading the risk

1Q2018 1Q2019Growth Compo

-sitionNPL

1Q18NPL

1Q19Amount YOY

5,436 7,275 1,839 33.8% 10.6% 2.9% 2.0%

35,846 40,130 4,284 12.0% 58.7% 3,1% 2.1%

4,531 6,809 2,278 50.3% 10.0% 2.2% 1.0%

5,275 5,934 659 12.5% 8.7% 4.0% 1.7%

1,543 1,873 330 21.4% 2.7% 3.7% 1.7%

2,199 2,541 342 15.6% 3.7% 2.8% 2.8%

87 103 16 18.4% 0.2% 0.1% 0.0%

235 346 111 47.2% 0.5% 0.5% 3.5%

2,575 3,411 836 32.5% 5.0% 2.5% 1.3%

57,727 68,422 10,695 18.5% 100% 3.0% 1.9%

Sectors (Rp Billion)

Manufacture

Trading, Resto & Hotel

Agriculture

Business Services


Construction


Mining

Social Services

Total Small

2016 2017 2018

4,565 5,388 7,109

31,698 34,697 37,897

2,880 4,227 6,541

5,288 5,369 6,131

1,459 1,583 1,848

2,281 2,347 2,670

58 70 100

201 227 313

2,255 2,571 3,454

50,684 56,479 66,063

Product(Rp Billion)

1Q 2018 1Q 2019 GrowthOutstandOutstand NPL Outstand NPL

BCM 35,113 3.6% 40,068 2.4% 14.1%

BWU 4,062 3.2% 5,249 3.0% 29.2%

KKLK 1,773 3.9% 1,261 0.1% (28.9%)

KUR 16,779 1.6% 21,844 0.9% 30.2%

Total 57,727 3.0% 68,422 1.9% 18.5%

2016 20172018

& Q1 2019

Type of outlet

58 SKCs 84

Branches

24 SKCs 145

Branches 28 Sub-

Branches

25 SKCs 149

Branches 92 Sub-

Branches

Total 142 outlets 197 outlets 266 outlets

Q1 2018 Q1 2019

Outstanding (Rp Bn) 57,727 68,422

Number of Customer 145,852 239,343

Ticket Size (Rp Mn) 395.8 285.8

23

.. Payroll loan as main driver of growth focused on selected institutions based on the captive market ..

Consumer Business

Business Highlight


Mortgage expansion was very selectively given to fixedincome customers, to property from selectedpartnering developers and also focus on top upprogram for existing debtors and Emerald segmen.

Mortgage expansion also focus on existing non-mortgage debtors with good track record andperformance by providing a take over program for postfixed-capped rate period loan in other banks.

Payroll loan penetration focuses on employees ofgovernment institutions and SOE that have lowturnover rate, and upper-middle level employees.

Payroll Loan Debtors Composition Q1 2019

Government Related

32,48%

SOE 29,22%

Private Companies

26,24%

Universities 4,13%

Others 7,93%

770 1,894 2,302 2,377 2,724 2,800

76

130

185200

234 241

2015 2016 2017 1Q'18 2018 1Q'19

Payroll Loan Account VSPayroll Pipeline [Thousand]

Pipeline Account

Payroll loan was still the driver of growth by optimizingopportunity from cross customer database of Corporatesegment, particularly from government institutions andSOE companies.

Enhance digital marketing (BNI DigiLoan) Captive market related with corporate/institutional

clients gives more opportunity for credit card businessgrowth

Mortgage expansion strategy 2019:• Focus on fixed income customers from selected

institution and selected developer• Expand marketing target to millenial community

Product2016 2017 2018

1Q2018

1Q2019

Growth Compo NPL NPL

(Rp Billion) Amount YoY sition 1Q’18 1Q’19

Mortgage 36,396 37,066 40,753 37,894 41,473 3,579 9.4% 51.8% 3.5% 2.6%

Payroll Loan 12,026 17,687 23,744 19,074 23,851 4,777 25.0% 29.8% 1.1% 0.7%

Credit Card 10,549 11,635 12,558 11,845 12,505 659 5.6% 15.6% 2.6% 2.7%

Others 6,097 5,057 2,680 5,037 2,278 (2,759) -54.8% 2.8% 2.0% 8.2%

65,069 71,445 79,735 73,850 80,107 6,257 8.5% 100.0% 2.6% 2.2%

24

Consumer Business [Bank only]

Credit Card Business Performance

51,317 64,423 76,034 16,673 19,723

127,618

167,329 172,151

167,083

190,477

2016 2017 2018 1Q'18 1Q'19

Acquiring Business

Sales Vol (Rp B) # of EDC

1,733 1,738 1,813 1,749 1,824

1011

12 11 12

2016 2017 2018 1Q'18 1Q'19

# Credit Card (Th) ENR (Rp B)

Digital Banking Ecosystem Enhancement

Optimizing supply chain financing opportunities Develop B2B platform market place Synergize B2C ecosystem in retail segment Deepen penetration in online transaction and e-commerce

cooperation

13,109 18,488 25,848 20,564 26,860

1,733

1,738

1,813

1,749

1,824

15,825 19,008 23,126

5,103 6,098

32,617 34,970 38,924

9,127 9,685

2016 2017 2018 1Q'18 1Q'19

Debit & Credit Cards Performance

Credit Card Accts (000) Debit Card Accts (000)DC Trx Vol (Rp B) CC Trx Vol (Rp B)

6,8247,902

8,9688,131

9,302

135.0 138.6 139.5 140.2 141.6

2016 2017 2018 1Q'18 Q1 '19

Fix Income AccountMortgage vs Saving [Thousand]

Saving Mortgage

Unbanked, Millenials & Gen X

Individual

Consumer & Retail

1

Corporate & Middle

Institution

2

Community

3

Employees of

corporate client

Member, merchants

eCommerce

Smart City

Education

Millennials & Gen X Individual

25

E-BankingE-BankingE-BankingE-Banking [Bank only]

2017 2018 1Q2018 1Q2019 Growth

#User 1,368.8 2,982.5 1,730.6 3,323.5 Th 92.0%

#Trx 32.4 96.9 16.3 43.5 Mn 166.5%

IDR 49.8 133.4 23.7 56.0 T 136.5%

2017 2018 1Q2018 1Q2019 Growth

#User 8,497.0 9,819.5 8,820.2 10,159.2 Th 15.2%

#Trx 389.2 504.0 109.3 139.3 Mn 27.4%

IDR 39.9 51.2 11.0 13.8 Tn 25.5%

2017 2018 1Q2018 1Q2019 Growth

#User 1,781.3 1,893.7 1,806.9 1,919.8 Th 6.2%

#Trx 25.4 27.5 6.4 7.3 Mn 13.8%

IDR 94.1 91.3 21.3 23.4 Tn 10.2%

2017 2018 1Q2018 1Q2019 Growth

#Agen 69,589.0 111,836.0 82,344.0 117,415.0 Agen 42.6%

#Trx 34.4 79.3 11.7 25.8 Mn 120.7%

IDR 11.6 94.5 10.4 34.2 Tn 228.2%

Pandai Acc. 4,843.0 9,175.4 7,977.2 9,211.9 Th 15.5%

Pandai Acc.

Fund561.9 636.3 643.0 734.4 Bn 14.2%

Agen Fund 592.8 658.4 574.6 1,072.8 Bn 86.7%

2017 2018 1Q2018 1Q2019 Growth

#Trx 55.5 63.6 14.8 15.4 Mn 4.2%

IDR 64.4 76.0 16.7 19.7 Tn 18.3%Acquiring*

SMS Banking

Internet

AGEN

Mobile Banking

2017 2018 1Q2018 1Q2019 Growth

#Trx 962,0 1.289,0 292,4 350,3 Mn 19,8%

IDR 600,0 668,0 153,0 165,6 Tn 8,2%

2017 2018 1Q2018 1Q2019 Growth

#Card 2.898,0 4.545,0 3.413,9 5.017,6 Th 47,0%

#Trx 23,2 50,8 12,2 14,0 Mn 15,4%

IDR 363,0 807,0 197,7 231,8 Bn Bn 17,2%

ATM

Tapcash

* EDC + e-Commerce

26 26

183.9 374.9 15.6 185.0 102.5

13.069

16.304 16.421

14.998

17.440

4.9065.352 5.319 5.202 5.415

2016 2017 Q1 2018 2018 Q1 2019

Asset Equity Laba (in Rp Billion)

7.426.8 6.7 32.0 8.6

517

908

1.078

1.322

1.408

276303 310 335 343

2016 2017 Q1 2018 2018 Q1 2019

5.1

-11.7

9.7 6.7 2.4

9351.122

848

786

1.324

406 396 405 414 417

2016 2017 Q1 2018 2018 Q1 2019

277.4 306.6 94.5 416.1 135.4

28.314

34.827

38.54341.048

44.002

2.486 3.8123.901 4.242 4.377

2016 2017 Q1 2018 2018 Q1 2019

7.2

22.4

4.215.3

3.3

93

137137

125 128

74

96 101112 112

2016 2017 Q1 2018 2018 Q1 2019

• Subsidiaries contribution in Q1 2019 amounted to IDR 390,31B or 37,57% YoY(EAT IDR 252,42B dan FBI IDR 137,89B) or 10,03% from BNI’s profit of IDR3,89T.

• BNI Multifinance’s Asset Q1 2019 reached IDR 1,40T or 30,52% YoY alongwith increased financing of IDR 1,24T or 28,17% YoY. EAT Q1 2019 grew by28,81% YoY.

• BNI Sekuritas’ brokerage transaction increased 66,79% YoY from ±IDR19,24T for Q1 2018 to±IDR 32,09T for Q1 2019

• BNI Life managed the EAT of IDR 102,56B or increased 553,81% YoY.Supported by Gross Written Premium’s growth of BNI Life Q1 2019 as of58,40% YoY to IDR 1,70T from Q1 2018 of IDR 1,07T.

• BNI Syariah business in Q1 2019 shows the positive growth. Supported byfinancing growth of Q1 2019 amounted IDR 29,50T or 24,23% YoY andfollowed by third party funds’ growth to IDR 38,47T or 15,04% YoY. The thirdparty funds’ growth was driven by Wadiah Saving Account which grew by47,46% YoY. In Q1 2019, BNI Syariah recorded EAT of IDR 135,35B or 43,26%YoY.

• During 2019 AUM BNI Asset Management grew IDR 1,5T.

*) No dividend distribution from subsidiaries yet

(Rp Billion) 2016 2017 Q1-2018 2018 Q1-2019Growth

YoY

Total EAT Subs 481 720 131 656 252 92,69%

Total Fee Subs 472 553 141 609 138 -2,21%

Total Dividen Subs 31 35 12 81 *) 0 #VALUE!

EAT + Fee+ Div. Subs 984 1.308 284 1.346 390 37,57%

Subs Contribution 8,63% 10,03% 8,08% 9,31% 10,03%

BNI Subsidiaries

About BNI

28

Rico Rizal BudidarmoMD – Treasury & International Banking- MD - Finance & Credit Risk, BNI (2015-2018)- MD Risk Management, BTN (2014-2015)- EVP of Treasury, Risk Management, IT, BRIEducation:- Bachelor’s Degree in Echonomics Management

from Gajah Mada University - MBA in Finance and MIS from Stern, New York

University- Master of Law from Gajah Mada University- Doctorate in Artificial Intelligence/Decision Support

System from Institut Pertanian Bogor

Herry SidhartaVice President Director- MD - Corporate Business, BNI (2015-2017)- Finance Director, Jamkrindo (2011 – 2013)Education:- Bachelor’s degree in Financial Management from

Universitas Pancasila Jakarta- Master of Business Administration from Rensselear

Polytechnic Institute, New York, USA

Anggoro Eko CahyoMD – Finance [CFO]- MD - Consumer Business, BNI (2015-2018)- Human Capital Division Head, BNI (2012-2015)Education:- Bachelor’s degree in Engineering and Industrial

Management from Institut Teknologi Indonesia- Master’s degree in Agribusiness Management

from Institut Pertanian Bogor

Bob Tyasika AnantaMD – Risk Management- MD – Planning & Banking Operation, BNI (2015-

2018) - Strategic Planning Division Head, BNI (2011-

2015)Education:- Bachelor’s degree in Accounting from

Universitas Gajah Mada- Master’s Degree in Finance from University of

Oregon

Achmad BaiquniPresident Director (CEO)- Finance Director, BRI (2010 -2015)- Director of Small, Medium, and Sharia Business, BNI (2008-

2010)Education:- Bachelor’s degree in Economics From Universitas

Padjajaran- Master’s degree in Business Management from Asian

Institute of Management Philippines

Putrama Wahju SetyawanMD – Corporate Banking- MD - Middle Business, BNI (2016-2018)- Medium Business SEVP, BNI (2016)Education:- Bachelor’s degree in Forestry from

Universitas Gajah Mada- Master’s degree in Management Accounting

from Universitas Gajah Mada

Catur Budi HartoMD – Small Business & Network- MD Commercial Funding, Digital Banking &

Distribution, BTN (2016-2017)- SEVP, BRI (2015-2016)Education:- Bachelor’s degree in Agronomi from Institut

Pertanian Bogor- Master’s degree in Management from Sekolah

Tinggi Manajemen Prasetya Mulya

Board of Directors

Dadang SetiabudiMD – IT & Operation- TI & Digital Banking SEVP, BNI (2016-2018)- MD - TI, BPJS Kesehatan (2014-2016)Education:- Bachelor’s degree in Accounting from Universitas

Padjajaran- Master’s degree in Agribusiness from Institut

Pertanian Bogor

Endang HidayatullahMD – Compliance - Legal Division Head, BNI (2015-2018)- Legal Division Deputy Head, BNI (2012-2015)Education:- Bachelor’s degree in Civil Law from

Universitas Padjajaran- Master’s Degree in Marketing from STIE

Nusantara

Tambok P. S. SimanjuntakMD – Retail Banking- MD – Finance, PT. Krakatau Steel (2016-2018) - Digital Banking SEVP, BNI (2016)Education:- Bachelor’s degree in Soil Science from Institut

Pertanian Bogor- Master’s degree in Accounting Management

from Universitas Indonesia

Adi SulistyowatiMD – Institutional Relation- Network Management Division Head,

BNI (2012-2015)- Jakarta Senayan Regional Head, BNI

(2010-2012)Education:- Bachelor’s degree in Management from

Universitas Krisnadwipayana

29

Pataniari SiahaanIndependent Commissioner- MPR-RI Research Institute Member (2015–2019)- Socialization Chairman MPR RI Government 1945 Laws (2005–2009)Education:- Bachelor’s degree of Civil Engineering from Universitas Trisakti- Bachelor’s degree of Civil Transportation Engineering from Universitas

Krisnadwiyana- Master’ of Law from Universitas Trisakti- Doctorate in Law from Universitas Trisakti

Revrisond BaswirIndependent Commissioner- Lecturer of Economics & Business Faculty, Gadjahmada University (1983-now)- Head of Center for Economic Democracy of Gadjahmada University (2013-now)- Public Policy Committee Member of the Ministry of SOE (2015-now)Education:- Bachelor’s degree in Accounting from Universitas Gajah Mada- Master of Business Administration from Western Michigan University, USA- Doctorate in Economics from Universitas Airlangga, Surabaya

Ahmad Fikri AssegafIndependent Commissioner- Founder and Co-Managing Partner of Assegaf Hamzah & Partners (2001-now)- Vice Chairman of Regional Management Council Rajah Tann Asia (currently)Education:- Bachelor’s degree in Law from Universitas Indonesia- Master of Law from Cornell Law School

Board of Commissioners

Joni SwastantoCommissioner- Deputy Commissioner Strategic

Management IIB, OJK (2015 – 2016)- Director of Bank 3 Supervision Department,

BI (2008)Education:- Bachelor’s degree in Economics from

Universitas Gadjah Mada- Master’s degree in Economics from

Colorado State University, USA- PhD degree in economics from Universitas

Indonesia

Bistok SimbolonCommissioner- Deputy secretary to the cabinet (2015 –

present)- Deputy cabinet secretary for political,

legal and Security Affairs (2011 – 2015)Education:- Bachelor’s degree in Law from

Universitas Sumatera Utara- Master of Law from Universitas

Indonesia

Marwanto HarjowiryonoCommissioner- Director General of Treasury, Ministry of

Finance (2013 -now)- Director General of Financial Balance ,

Ministry of Finance (2011– 2013)Education:- Bachelor’s degree in Economics from

Universitas Gadjah Mada- Master’s degree in Economics from

Vanderbilt University- Doctorate in Economics from Universitas

Gadjah Mada

Ari KuncoroPresident Commissioner/Independent Commissioner- Dean of Economics and Business Faculty, Universitas Indonesia (2013 –

now)- Board of Director, East Asian Economist Association (2013 – now)- Members of communication of financial stability research forum, Bank

Indonesia (2007 – now)Education:- Bachelor’s degree in Economics from Universitas Indonesia- Master of Arts, Development Economics from University of Minnesota- PhD in Economics from Brown University

Wahyu KuncoroVice President Commissioner- Business Infrastructure Deputy, Ministry of SOEs (2015 – now)- Agro Industry and Pharmacy Deputy, Ministry of SOEs (2016 –

present)Education:- Bachelor’s degree in Agriculture from Universitas Sebelas Maret- Bachelor’s degree on Economics from YAI University- Master’s degree on Management from Universitas Gadjah Mada

Sigit WidyawanIndependent Commissioner- Independent Commissioner of PT Jasamarga (Persero) Tbk. (2015 – now)- Director of PT Roda Pembangunan Jaya (2003-2015)Education:- Bachelor’s degree in Economic from Universitas Negeri Sebelas Maret- Master’s degree in Accounting from Universitas Indonesia

30

BNI’s multiple touch points for individual and corporate customers

Individual customer highlightsCorporate/SME customer highlights

Mobile banking

Call Center

Platform for efficient and effective cross-selling of products and services

44.9 million funding accounts

1.8 million credit cards

180.481 mortgage customers

792,088 corporate deposit accounts

5,771 corporate borrowers accounts

2,453 medium borrowers accounts

239,343 small lending accounts

Overseas officesSingapore (Nov 1955)Hong Kong (Apr 1963)Tokyo (Sep 1969) & Osaka (Dec 2012)New York (Apr 1983)London (Apr 1984)Yangon (Dec 2015)Seoul (Feb 2016)

Network & Distribution

Middle loan center (SKM)

3Q 2017 (32)

2016 (32)

Small loan center (SKC)

3Q 2017 (24)

2016 (24)

Consumer loan center (LNC)Q1 2019 (12)

2018 (12)

2017 (12)

BNI has also entered into key arrangements with

prominent companies for payment channeling,

financing, loan distribution, and network/outlet

development

ATMQ1 2019 (18.335)

2018 (18.311)

2017 (17,966)

Middle loan center (SKM)

Q1 2019 (33)

2018 (33)

2017 (33)

Small loan center (SKC)Q1 2019 (25)

2018 (25)

2017 (24)

EmployeeQ1 2019 (26,798)

2018 (27,224)

2017 (27,803)

Branchless Banking

Q1 2019 (117.415)

2018 (111.836)

2017 (69,589)

OutletsQ1 2019 (2.247)

2018 (2.256)

2017 (2,150)

31

International BusinessBusiness Highlight

Risk Management :

1.03 1.30 1.59 0.448 0.528

7.14 8.00 8.01

2.15 1.97

12.6% 14.0%16.6% 17.2%

21.1%

2016 2017 2018 1Q'18 1Q'19

BNI excl INT (IDR Tn) INT (IDR Tn)

% INT to BNI

5,4084,601

5,643

4,188 3,921

5,431

2,352 2,4713,072

3,570

4,7854,129

2018 1Q'18 1Q'19

CA from Export IW Saving Acc

Japan Desk CASA (IDR 14.000)

Fee Income Contribution Funding from International Business (IDR Bn)

The biggest portfolio for overseas loan focus onfinancing priority sectors such as manufacture,mining, and trading

Top expansion came from agriculture sector (palm oilindustry), mining, manufacture & social services.

Overseas Branches also helps boosting IndonesianWorker Deposit thru its channels around the world

Opportunity in 2019

International Business Loan is expected to becontributed by Export based Indonesian companies.

More loan demand for SOE and Private sector withthe biggest pipeline comes from manufacturingsector (pulp & paper), agriculture (palm oil industry),trading sector, and selected mining sectors (coalrelated to IPP).

International business is more focusing on IndonesiaRelated Business and it’s value chain.

Achieve sustainable growth by focusing on top rankIndonesian companies and blue chip companies aroundthe world.

Focusing on sectors where we have in-depthunderstanding and strengthens our industry specialistimplementation.

Prudent loan assessment process and portfoliomanagement.

Sectors *)

2016 2017 2018 Q1-2018 Q1-2019

GrowthCompo-

sition

NPL NPL

(Rp Billion) Amount YoY 1Q2018 1Q2019

Manufacture 7.067 11.867 17.223 14.577 18.233 3.656 25,1% 45,9% 0,7% 0,5%

Construction 193 209 238 184 28 -156 -84,6% 0,1% 0,0% 0,0%


253 - - - 1.780 1.780 - 4,5% 0,0% 0,0%

Trading, Resto & Hotel 1.106 4.552 4.887 4.882 5.488 606 12,4% 13,8% 1,0% 0,9%


1.095 1.031 1.124 1.351 1.054 -297 -22,0% 2,7% 0,0% 0,0%

Business Services 576 1.550 1.632 1.512 1.439 -73 -4,8% 3,6% 0,0% 0,0%

Agriculture 861 1.274 1.252 702 945 243 34,6% 2,4% 0,0% 0,0%

Mining 3.981 4.314 7.314 3.906 6.124 2.218 56,8% 15,4% 1,1% 0,7%

Social Services 366 823 1.119 854 1.061 207 24,3% 2,7% 0,0% 0,0%

Others 5740 5.113 5.130 3.759 3.546 -214 -5,7% 8,9% 0,0% 0,0%

Total Overseas Loan 21.237 30.734 39.918 31.727 39.697 7.970 25,1% 100,0% 0,6% 0,5%

Funding from International Business contributed 3.2% to total deposit in 1Q2019

Fee income from International Business contributed 20.3% to total fee income in 1Q2019

32

BBNI shares performance

BBNI Public Ownerships [40.00%]

BBNI’s closed price March 29, 2019 (Rp 9,400) was 8.36% higher than March 29, 2018 (Rp 8,675)

Issued shares 18,648,656,458 shares

Price [March 29, 2019] : Rp 9,400 [8.36% YoY] [6.82% YtD]

Market Capitalization : Rp 175 trillion [+/- US$ 12.34 billion]

BNI Shares

Shareholder Shares Ownership

Foreign Institution 5,503,058,652 73.77%

Mutual Fund 591,803,044 7.93%

Institution - Domestic 541,522,827 7.26%

Insurance 428,879,656 5.75%

Individual Domestic 180,865,560 2.42%

Pension Fund 118,119,591 1.58%

Foundation 89,260,168 1.20%

Foreign Individual 3,325,422 0.04%

Bank 1,761,436 0.02%

Cooperation 860,929 0.01%

Other Institution 5,298 0.00%

Fitch Rating

Long Term Foreign Currency Long Term Local CurrencyShort Term Foreign CurrencySupport Rating FloorSupport RatingViability Rating National Long Term RatingNational Short Term RatingSenior Unsecured Bond

BBB-/StableBBB-/Stable

F3BBB-

2 bb+

AA+/StableF1+

BBB-

Standard

& Poor's

Outlook Stable

Issuer Credit RatingSACPAnchor Risk PositionFunding and Liquidity

BB+Bb+bb

Moderate (-1)Above average & Strong (+1)

Moody's

OutlookBank DepositsBaseline Credit AssessmentAdjusted Baseline Credit AssessmentCounterparty Risk Assessment

StableBaa2/P-2

Baa3Baa3

Baa2/P-2

Pefindo Corporate Rating AAA/Stable

Ownerships Dec 17 (%)

Mar 18 (%)

Jun 18 (%)

Sep 18 (%)

Dec 18 (%)

Mar 19 (%)

Government RI 60% 60% 60% 60% 60% 60%

Public –Domestic

7.1% 8.6% 10.0% 10.0% 11.2% 10.5%

Public - Foreign 32.9% 31.4% 30.0% 30.0% 28.8% 29.5%

3333

BNI vs Peers & Company GuidanceBNI & Peers Asset Quality (Bank Only)

2018 Guidance

2018 Realization

2019

Guidance

Loan Growth 13%-16% 16,2% 13%-15%

LDR 88%-90% 88,8% 88%-90%

NIM 5,4%-5,5% 5,3% 5,3%-5,4%

NPL 2,3%-2,4% 1,9% 1,9%-2%

Coverage Ratio 153%-155% 152,9% 153%-160%

Credit Cost 1,5%-1,6% 1,4% 1,5%-1,7%

Company Guidance

3.0%

2.3%

1.9%

2.1%

2.3%

2.1%

4.0%

3.5%

2.8%

1.5%

1.5%

1.4%

2016

2017

2018

NPL Gross

BBCA

BMRI

BBRI

BBNI

*BCA merge the composition of medium and SME loans

Source: Banks Financial Report & Corporate Presentation as of 31 December 2018

.. As of 31 December 2018, 51.2% of BNI’s loan composition was from Corporate Segmentwhich was the highest compared to peers..

51% 46%25%

40%

15% 20%

2%

13%22%

57% 34%

16%12% 16%

26%

BBNI BMRI BBRI BBCA

BNI & Peers Loan Composition

Consumer

Small/Micro

Middle

Corporate

146.0%

148.0%

152.9%

170.3%

195.5%

200.6%

131.2%

142.8%

146.8%

229.4%

190.7%

178.7%

2016

2017

2018

Coverage Ratio

BBCA

BMRI

BBRI

BBNI

2.0%

1.6%

1.4%

2.1%

2.4%

2.2%

2.0%

2.0%

1.6%

1.0%

0.5%

0.4%

2016

2017

2018

Credit Cost

BBCA

BMRI

BBRI

BBNI

34

BASEL 3 Capital Requirement & BNI Capital Realization

BBNI Capital Realization

*) POJK No. 34/POJK.03/2016, 26 Sep 2016 about Bank’s Minimum CAR**) The percentage was set by Bank Indonesia based on view of economy situatioan***) Set by OJK

Buku I < Rp 1Tn ± up to USD 75Mn

Buku II Rp 1Tn < Rp 5Tn ± USD 75Mn < USD375Mn

Buku III Rp 5 Tn < Rp 30 Tn ± USD375Mn < USD2,3Bn

Buku IV ≥ Rp 30 Tn ± ≥ USD2,3Bn

Minimum Tier 1 Capital

2013 2014 2015 2016 2017 2018 2019

1

2

3

4 and 5

a

8%

9% to < 10%

10% to < 11%

11% to < 14%

Minimum Capital

based on Bank's Risk

Profile

b

4.50% 4.50% 4.50%

5.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0%

Common Equity Tier 1

Capital Minimum

Tier 1 Capital Minimum

4.50% 4.50% 4.50%

a2

0.625% 1.250% 1.875% 2.500%

a + b + c + d

a1

Capital Conservation Buffer

(Buku III and IV) *)

c 0% - 2,50% **)

d 1% - 2,50% ***)

e a1 + b + c + dMinimum Tier 1 Common Equity

+ Additional Buffers

Countercyclical Buffer (Applied

to all bank)

Capital Surcharge for DSIB (Bank

with systemic risk)

f

Minimum Tier 1 Capital based

on Risk Profile + Additional

Buffers

Risk Weighted Asset (bank only)

*) BNI Projection from RBB 2019

35

Peringkat 1 Digital Brand Wealth

Management

Bank Umum Konvensional

Best State Owned Enterprise

from Indonesia Institute for

Corporate Directorship (IICD)

Best Affluent Debit Card

Program from MasterCard

Awards

The Most Popular Bank for Mortgage

Product

The Remittance Product and Service of the Year

2018 from The Asian Banker International

The Best Government Bank in

Service Excellence

Best Service Cash Management

from Euromoney

Best Remittances Provider in

Southeast Asia 2018 from Alpha

Southeast Asia

Most Trusted Company based

on CGPI Index

Best Trade Finance Bank in

Indonesia 2018 from Alpha

Southeast Asia

Best Innovative Acquiring

from MasterCard Awards

BNI Winning Awards

Best Affinity Debit Card Program from

MasterCard Awards

The 2018 Treasury & Cash

Management Non-

FI in Indonesia from Global

Finance

Best e-Commerce 2017

5 Years Financial Data

37

5 Years Financial Data (1)

Balance Sheet - Rp Billion -Cummulative

2015 2016 2017 2018 1Q2018 1Q2019 YoY

Total Assets 508,595 603,032 709,330 808,572 699,900 800,564 14.4%Placement with other Banks & BI 33,417 33,662 28,593 39,324 12,410 19,201 54.7%Marketable Securities [market value] 9,964 23,856 36,359 32,362 38,432 35,712 -7.1%Government Bonds [market value] 47,222 63,006 79,849 86,791 90,524 86,720 -4.2%Loan [Gross] 326,105 393,275 441,314 512,778 439,460 521,349 18.6%Third Party Fund 370,421 435,545 516,098 578,775 492,903 575,748 16.8%Deposit from other Banks 4,698 10,801 12,177 14,233 16,058 17,367 8.2%Marketable Securities Issued 7,367 7,227 3,482 3,087 3,482 3,087 -11.3%Borrowings 22,524 32,338 44,722 52,025 43,945 52,584 19.7%Shareholder's Equity 78,438 89,254 100,903 110,374 99,112 115,842 16.9%

Profit & Loss - Rp Billion 2015 2016 2017 2018 1Q2018 1Q2019 YoYInterest Income 36,861 43,766 48,176 54,139 12,672 14,200 12.1%Interest Expense (11,301) (13,771) (16,238) (18,693) (4,176) (5,341) 27.9%

Net Interest Income 25,560 29,995 31,938 35,446 8,496 8,859 4.3%Premium Income Net 1,133 1,342 1,768 1,712 353 470 33.3%Non Interest Income 6,684 8,174 9,308 9,615 2,535 2,593 2.3%Recovery 1,590 1,378 1,732 1,997 401 467 16.4%

Operating Income 34,967 40,889 44,746 48,771 11,786 12,389 5.1%Operating Expense (16,219) (18,806) (20,396) (21,783) (5,278) (5,495) 4.1%

Pre-Provision Income 18,748 22,083 24,349 26,988 6,508 6,893 5.9%Provisioning (7,336) (7,853) (7,126) (7,388) (1,909) (1,728) -9.5%Non Operational Inc/(Exp) 54 74 (57) 221 (22) (33) -53.4%

Net Income Before Tax 11,466 14,304 17,166 19,821 4,577 5,132 12.1%Net Income 9,067 11,339 13,616 15,015 3,656 4,076 11.5%Net Income Per Share (full amount) 487 610 730 805 196 219 11.5%Earnings Per Employee (EPE) Rp Bn 321 380 490 551 132 152 15.2%

38

5 Years Financial Data (2)

Financial Ratios [%] 2015 2016 2017 2018 1Q2018 1Q2019

CAPITAL

Shareholders equity to total asset 15.3 14.8 14.2 13.7 14.2 14.5

Tier I - CAR (include operational risk) 17.0 18.3 17.4 17.4 16.9 18.1

Tier II - CAR (include operational risk) 2.5 1.1 1.1 1.1 1.1 1.1

Total CAR (credit,market + operational risk) 19.5 19.4 18.5 18.5 17.9 19.2

ASSET QUALITY

Net Non Performing Loan 0.9 0.4 0.7 0.8 0.8 0.9

Gross Non Performing Loan 2.7 3.0 2.3 1.9 2.3 1.9

Allowance for possible loan to gross NPL 140.4 146.0 148.0 152.9 148.0 153.1

RENTABILITY

ROA 2.6 2.7 2.7 2.8 2.7 2.7

ROE 17.2 15.5 15.6 16.1 16.3 15.9

Net Interest Margin 6.4 6.2 5.5 5.3 5.4 5.0

EFFICIENCY

Cost to Income Ratio 44.2 44.0 43.9 42.5 42.6 42.4

Operating Expense to Operating Income (BOPO) 75.5 73.6 71.0 70.1 70.5 70.5

LIQUIDITY

Loan to Deposit Ratio 87.8 90.4 85.6 88.8 90.1 91.3

COMPLIANCE

Statutory Reserve Requirement (Rupiah) 9.2 6.8 6.6 6.6 6.6 6.5

Net Open Position 1.7 3.4 2.5 2.0 2.3 1.6

DIVIDEND

Dividend Payout Ratio [%] 25.0 35.0 35.0

39

Notes

Thank you

PT Bank Negara Indonesia (Persero) TbkInvestor Relations Group

Corporate Secretary & Communications Division, BNI Building, 24th Floor

Jl Jend Sudirman kav. 1 Jakarta 10220T: 62-21-572-8449-8909-9279

F: 62-21-5728053

Disclaimer: This report has been prepared by PT Bank Negara Indonesia (Persero) Tbk (BNI) 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 hasbeen 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 changewithout prior notice. We disclaim any responsibility or liability without prior notice of BNI 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 anypart of the contents of this report and neither BNI and/or its affiliated companies and/or their respective employees and/or agents accepts liability for any errors, omissions, negligence or otherwise, in this report and any inaccuracy herein or omission here from whichmight otherwise arise,

corporate presentation 1q 2019 - bni...1.7% in 1q2018, coverage ratio strengthened to 153.1%. third...

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