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FY 07 Result - Analyst Meeting

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FY 07 Result - Analyst Meeting Powered By Docstoc
					PT Bank Niaga Tbk
FY 2007 Results (Audited)

Presentation to Analyst
Jakarta, 21 February 2008




                            A subsidiary of   BANK NIAGA
                                              BANK NIAGA
Disclaimer




This Presentation is not intended to form the basis of any investment decision with respect to PT Bank Niaga Tbk (“Bank
Niaga” or the “Company”). Neither this Presentation nor anything contained herein shall form the basis of, or be relied
upon in connection with, any contract or commitment whatsoever. This Presentation is based solely upon information,
estimates and projections (the “Information”) of the Company. No representation or warranty, express or implied, is or will
be made by the Company in relation to, and no responsibility or liability is or will be accepted by the Company as to the
accuracy or completeness of, the Information or any other written or oral information made available, and any liability
therefore is hereby expressly disclaimed. The Company does not make any representation or warranty with respect to the
accuracy or completeness of the assumptions involved in producing this Presentation. The Company does not assume
any responsibility for the independent verification of the financial and other information contained in the assumptions,
which are subject to business, economic and competitive uncertainties and contingencies. Accordingly, no assurance can
be given that any projections contained in the Information, this Presentation or underlying the assumptions will be
realized. Any variation between such projections and actual results may be material. This Presentation is necessarily
based upon financial, economic, market and other conditions as they exist and can be evaluated on the date hereof. This
Presentation and its contents are strictly confidential and must not be copied, reproduced, distributed, summarized,
disclosed, referred to or passed to others at any time without the prior written consent of the Company.
In addition, organization changes over time often involved changes in the classifications across Niaga’s current business
segments which include consumer/retail, business and corporate.



                                                            1                                                            1
Highlights FY 2007
Financial
   Net Profit up 19% YoY to a record of Rp770 billion, but down 3% QoQ; if
   excluding Rp22 billion net of tax tantiem for the first time, Net Profit is in line
   with the market consensus of Rp791.5 billion
   Profit Before Tax up 10% YoY and 15% QoQ to a record of Rp1.03 trillion
   Net Interest Income up 11% YoY to a record of Rp2.45 trillion
   ROE up 75 bps YoY to 17.68% but ROA down 9 bps to 2.02%
   Loan to Deposit Ratio (LDR) improved by 7.75% YoY to 92.44%
   Loans grew 26% YoY to Rp41.75 trillion, while Net NPL ratio (Bank Only)
   improved 21bps YoY to 2.30%
   Became the 6th largest bank in terms of asset size (Bank Only)
   Total Deposits grew 15% YoY to Rp 45.16 trillion
Corporate Development
   CIMB Group became the new controlling shareholders
   Completed divestment of PT Niaga Aset Manajemen to CIMB Principal
   Synergy realisation with CIMB Group amounted to Rp19.6 billion

                                          2                                          2
Agenda




 •   FY 2007 Financial Performance
 •   Corporate Strategy
 •   Corporate Profile
 •   Macro Economic Outlook




                              3      3
Record High Net Profit & PBT
                                                                                       Consolidated
    Rp Million                          FY '07    FY '06      ∆ YoY 4Q '07        3Q '07     ∆ QoQ
    Net Interest Income                  2,447     2,212     11%          585        617     -5%
    Non Interest Income                    683       692      -1%         246        118    108%
    Operating Income                     3,130     2,904      8%          832        735     14%
    Operating Expenses                  (1,559)    (1,467)    6%         (425)      (382)    11%
    Pre Provision Operating Profit       1,571     1,437      9%          406        353     15%
    Provision Expense                     (578)      (409)   41%           (98)     (154)   -36%
    Operating Profit                       993     1,029      -3%         308        199     55%
    Non Operating Income (Loss)             34        (96)     -           (57)       19       -
    Profit Before Tax                    1,027       932     10%          251        218     15%
    Net Profit                             770       648     19%          180        185     -3%
 NII increased 11% YoY and 7% QoQ to a record of Rp2.45 trillion due to higher average loans and NIM
 Non interest income decreased by 1% YoY due to lower gain in marketable securities offset by fee
 income from forex, but increased 108% QoQ due to year-end audit classification
 Provision expenses increased 41% YoY mainly to cover two irregular accounts
 An increase in non operating income for 2007 is due mainly to the absence of expenses from
 discretionary fund amounting to Rp119 billion in 2006


                                                                                                       4
As Total Assets Grew by 18%, We Are Now the 6th Largest Bank
                                                                                           Consolidated

  Rp Trillion                             Dec '07    Dec '06      ∆ YoY       Sep '07        ∆ QoQ
  Placements & Other MS                      8.40        8.53     -1.5%             6.02     39.5%
  Government Bonds                           2.64        2.70     -2.1%             2.63      0.3%
  Loans                                     41.75       33.15     25.9%            36.56     14.2%
  Total Assets                              54.89       46.54     17.9%            47.32     16.0%
  Low Cost Funds (CASA)                     14.02       11.43     22.7%            13.10      7.0%
  Time Deposits & CD                        31.14       27.71     12.4%            25.12     24.0%
  Total Customer Deposits                   45.16       39.14     15.4%            38.22     18.2%
  Total Liabilities                         49.68       41.75     19.0%            42.29     17.5%
  Equity                                      5.20       4.79     8.7%              5.03      3.4%


  Deposits grew by 15.4% YoY and 18.2% QoQ, TD contributed 57% of the total deposit growth of
  Rp6.02 trillion YoY
  Equity increased by 8.7% YoY and 3.4% QoQ due to accumulated profit, and additional paid up
  capital from ESOP/Warrant exercise amounted to around Rp18.2 billion
  Interim dividend payment of Rp243.4 billion in 2007 vs. Rp70.6 billion in 2006


                                                5                                                    5
Key Ratios
                                                                                           Consolidated

         Key Ratios (% )               Dec '06   Mar '07     Jun '07   Sep '07   Dec '07        YoY
 Cost to Income (BG as NII)             47.59        49.06    48.10     49.33      49.66         2.07
 NIM (include BG)                        5.62         5.99      6.12      5.86      5.32        (0.30)
 CAR (with market risk)*                16.65        18.45    17.77     17.03      15.43        (1.22)
 ROA                                     2.11         2.44      2.46      2.20      2.02        (0.09)
 ROE                                    16.93        18.66    18.83     18.22      17.68         0.75
 Fee Income (excl. loan related fee)    11.51         8.37    11.01     10.29      11.91         0.40
 Net NPL*                                2.51         3.13      3.23      3.24      2.30        (0.21)
 Gross NPL*                              3.47         4.02      4.21      4.74      3.79         0.32
 Loan Loss Coverage                     60.07        60.53    62.64     60.64      67.58         7.51
 Provision to Mandatory Provision*     114.97    114.78      137.14    132.11     113.24        (1.73)
 LDR (excl. loan to bank)               84.69        87.08    95.13     94.86      92.44         7.75
 Basic Earning Per Share (Rp)           54.06        16.57    33.29     48.28      62.87         8.81

 ROE and EPS increased by 75 bps and Rp8.81 due to 19% increase in Net Profit
 NIM declined by 30bps affected by declining lending rate, however, average NIM improved from
 5.71% in 2006 to 5.82% in 2007
                                                                                             * Bank Only


                                                 6                                                      6
NIM Affected by Declining Lending Rate
                                                                                    Consolidated (Rp Billion)

700                                                                                                   7.0%
                                           609          634                617
                                                                                           585
600                     556

       462                                                                                            6.0%
500                                                    6.12%
                                         5.99%
                                                                         5.86%
400                    5.62%
      5.31%                                                                               5.32%       5.0%
300

200
                                                                                                      4.0%
100

  0                                                                                                   3.0%
      Dec '05         Dec '06           Mar '07        Jun '07          Sep '07          Dec '07



         NII (quarterly) incl. blanket guarantee                 NIM (YTD) incl. blanket guarantee




                                                   7                                                         7
Cost to Income Ratio (CIR)
Maintained below 50% in 2007
                                                                                            Consolidated (YTD)
  55%          54.40%

                                                                          CIR (excl. blanket guarantee)



                                                                                  49.33%          49.66%
  50%                                             49.06%
                                         47.59%                 48.10%




  45%
                Dec '05              Dec '06      Mar '07       Jun '07           Sep '07         Dec '07


   YoY Cost to Income Ratio increased by 207 bps due to:
         G&A expenses (include promotion) rose 11% YoY
         Personnel expenses increased by 15% YoY mainly due to better employee benefits and an
         accrual of tantiem amounting to Rp22 billion (net) for the first time in 2007

 CIR = Overhead / (NII + Non int’ Inc)



                                                            8                                               8
Loans (Net) contributed 74% to Total Assets
                                                                                                                   Consolidated


               Dec ‘06                                      Sep ’07                                        Dec ’07


                         69.7%       Loans                               75.1%      Loans                               74.1%

      5.8%             Government Bonds             5.6%               Government Bonds            4.8%


       7.3%            Marketable Sec. incl         4.6%               Marketable Sec. incl         3.7%
                                       SBI                                             SBI
        11.0%                                        8.1%                                             11.5%
                          Interbank incl. BI                              Interbank incl. BI
                                     Plcmt                                           Plcmt
      6.2%                   Other Assets           6.6%                      Other Assets          5.9%

0%       20%     40%       60%       80%       0%      20%      40%     60%      80%          0%       20%      40%     60%         80%

     Total Assets Rp46.54 trillion                  Total Assets Rp47.21 trillion                  Total Assets Rp 54.89 trillion



 Government bonds decreased to 4.8% of total asset



                                                                  9                                                             9
2007 YoY Loans Growth Rate Doubled (26% vs. 13%) While Net NPL declined
                                                                          Consolidated (Rp Trillion)


                                                                                 41.75
 40                                                              36.56                          6%
        5.23%           33.15                       34.18
                                    32.29                       4.74%
      29.31
                                    4.02%           4.21%                        3.79%
                        3.47%                                                                   4%
        4.29%
 20
                                    3.13%           3.23%       3.24%
                        2.51%                                                                   2%
                                                                                 2.30%

  0                                                                                             0%
       Dec '05         Dec '06      Mar '07         Jun '07     Sep '07         Dec '07
                 Loans (Gross)                NPL Net*               NPL Gross*


 Gross loans grew by 26% YoY to Rp41.75 trillion contributed by all business segments
 The biggest percentage growth in 2007 was Syariah Banking Group: 92%
 Gross NPL increased 32 bps to 3.79%, but Net NPL improved YoY by 21 bps to 2.30%

                                                                            * NPL Ratio for Bank Only


                                               10                                                       10
Loan Classification
NPL Coverage Ratio improved by 7.5% from 60.1% to 67.6%
                                                                                      67.6%
                                                                            60.6%
   Gross NPL
   Coverage Ratio           60.1%                  60.5%           62.6%
                                                                            4.7%
  Gross NPL                                       4.0%           4.2%                   3.8%
                               3.5%


                              Dec '06           Mar '07         Jun '07    Sep '07   Dec '07

 Pass (I)                     88.27%            87.58%          88.62%     88.68%    90.71%

 Spc Mentioned (II)           8.25%             8.40%           7.17%      6.58%     5.50%

 Substandard (III)            1.09%             1.27%           1.34%      1.71%     0.51%

 Doubtful (IV)                0.57%             0.47%           0.44%      0.40%     0.66%

 Loss (V)                     1.82%             2.28%           2.43%      2.63%     2.62%

Note : NPL Coverage = Loan loss allowance / Gross NPL


                                                           11                                  11
Loans Exposure by Economic Sector
                                                                                                                                                                                                                                                                                 Bank Only
  %

       %
30




                          5%
     .0
  29




                      .
                   27
                                    %

                                                                                                                 Dec '05                                                  Dec '06                                                                Dec '07
                                  .0
                            %




                                                       2%
                          22
                               22



                                                   .
                                                20
                                                                                   7%
                                                                   %
                                                                               .
                                                                 .0         16                              6%
                                                         %




                                                                                             %
                                                                                                        .
                                                       17
                                                              17




                                                                                           .0
                                                                                      %
                                                                                                     15

                                                                                    16
                                                                                        16                                                                                                                                                                                   8   %
                                                                                                                                                                                                                                                                          6.                              %




                                                                                                                                                                                                                                                             0%
                                                                                                                                                                                                                                                                                                      2
                                                                                                                                                                                                                                                                                                   4.




                                                                                                                                                                                                                                                                                         0%
                                                                                                                                7%                                                                                                              8%




                                                                                                                                                                                                                                                          5.




                                                                                                                                                                                                                                                                                 4%
                                                                                                                     0%
                                                                                                                           2.                           %                                                                                  2.




                                                                                                                                                                                                                                                                                      4.
                                                                                                                                                    9                                   %
                                                                                                             3%




                                                                                                                                                                                                                                                     3%
                                                                                                                                                                                                                            0%
                                                                                                                                                 1.
                                                                                                                  3.
                                                                                                                                                                                    2                          4%
                                                                                                                                                                                 1.




                                                                                                                                                                                                                    2%
                                                                                                                                         0%




                                                                                                                                                                    0%




                                                                                                                                                                                                                         2.
                                                                                                                                                                                                            0.



                                                                                                                                 1%




                                                                                                                                                            1%




                                                                                                                                                                                            1%

                                                                                                                                                                                                    0%
                                                                                                                                      1.




                                                                                                                                                                 1.




                                                                                                                                                                                                 0.
                                Manufacturing




                                                                                                                                                                                                                                                            Agriculture
                                                            & Restaurants




                                                                                                                                                                                                                           Constructions
                                                                                                                 Warehousing
                                                            Trade, Hotels




                                                                                          Business
      Consumer *




                                                                                                                                                                                                                                                                                        Others**
                                                                                                                                        Mining
                                                                                          Services




                                                                                                                                                                                                 Services
                                                                                                                                                                 Gas & Water
                                                                                                                  Transport,




                                                                                                                                                                                                  Social
                                                                                                                                                                  Electricity,
                                                                                                                  & Comm.




 Consumer, Manufacturing, Trade and Business Services are still dominant totaling 80% in 2007
 Portion of Mining, Construction, and Agriculture increased in 2007

* Consumer Loans consist of Mortgage Loan & Car Loan
** Others: Credit Cards, Multipurpose & Other Loans


                                                                                                                                       12                                                                                                                                                                 12
Total Customer Deposits Grew by 15% in 2007 (2006: 14%) and
Position Maintained at Number 6 in the Industry
                                                                                                                Bank Only (Rp Trillion)


35                                                                   36%                      34%                                  31.14   40%
                                   27.71                                                                            31%
30
                  24.62 29%                  30%            25.95                                           25.12
                                                                                                                                           30%
25     28%                                                                            22.94
20
                                                                                                                                           20%
15




                                                                                                                     7.23
                                                                                              6.80




                                                                                                                            6.79
                                                                         6.61




                                                                                                     6.30
                         6.06




                                                     5.75
                                5.37
        5.04




                                             5.12
10
               4.71




                                                                                6.1
                                                                                                                                           10%
 5
 0                                                                                                                                         0%
          Dec '05          Dec '06             Mar '07                      Jun '07             Sep '07                Dec '07
               Demand Deposit              Savings                  Time Deposit & CD                        Low Cost Fund Ratio

     Savings & Demand Deposits grew 26% and 19%, respectively while time deposits grew 12.4%
     New treasury product – market linked deposit ‘Star Choice’- contributed around Rp193 billion
     to Time Deposit and will reduce cost of funds as well as lengthen duration
     Retail Banking contributed 41% of Deposit, while Business and Corporate Banking contributed
     39% and 20% respectively


                                                                    13                                                                       13
CAR still maintained at a comfortable level
                                           18.45%     17.77%
                   16.65%                                            17.03%
                                           4.46%                                        15.43%
                                                      4.32%
                    4.19%                                            4.24%
                                                                                         3.83%



                   12.46%                  13.99%     13.45%         12.79%             11.60%




                   Dec '06                 Mar '07    Jun '07        Sep '07            Dec '07
                                                                                Bank Only (Rp Billion)

 Tier-1              4,133                  4,514         4,484       4,505              4,593
 Tier-2   (1)
                     1,390                   1,440        1,440       1,496               1,517
  RWA     (2)        33,172                32,274         33,344      35,228             39,597

  Paid final dividends 2006 of Rp123.7 billion in June 2007 and interim dividends of Rp243 billion
  in September 2007
(1)   Net of investments in subsidiaries
(2)   Include market risk



                                                     14                                              14
Business Segments:
Loans and Performance




                        15
    Loan by Business Segment & Currency
    By Business Segment*                                                                        Bank Only (Rp. Billion)


                                                                                                          12,410      29%
Corporate                                                              9,377
                                                                                       9,714      27%
(incl. Syariah)
                              27%    9,526    28%
                                                     9,001      28%             27%
                    7,970
                                                                                      11,796      32%     13,771      33%
Business                      34%   10,950    33%   10,108      31%   10,643    31%
                    10,020
Retail                                                                14,182    42%   15,088      41%     15,964
                    11,610    39%   12,955    39%   13,206      41%                                                   38%
(incl. SME)

                    Dec '05         Dec '06         Mar '07           Jun '07         Sep '07              Dec'07
SME                 2,259           2,678           2,648              3,105           3,378               3,643

    By Currency
                    17%              18%             18%               18%             18%                  22%
 Foreign
 Currency
                    83%              82%             82%               82%             82%                  78%
 IDR

                   Dec '05          Dec '06         Mar '07           Jun '07         Sep '07             Dec '07

       Foreign currency proportion increased due to new disbursed USD loans and appreciation of USD
                                                                                                    *include loan to banks


                                                           16                                                            16
Loans Quality By Business Segment*
                                                                                                                                   Bank Only

                       Loan (Rp Billion)                                                            Gross NPL Ratio


                                                                                             2.4%      2.4%     2.4%        2.1%




                                                                      Retail
                                                                                                                                       2.0%
                                                       15,971                      1.6%
                                  14,182    15,088
            12,955     13,206
 11,610

  Dec '05   Dec ' 06   Mar '07    Jun '07   Sep '07    Dec '07                    Dec '05   Dec '06   Mar '07   Jun '07    Sep '07    Dec '07
                                                                                                                 7.1%       7.4%
                                                                                                       6.7%                            6.2%




                                                                      Business
                                                                                             4.6%
                                                                                  3.4%
                                                        13,771
 10,020     10,950      10,108    10,643     11,796



 Dec '05    Dec '06    Mar '07    Jun '07    Sep '07    Dec '07                   Dec '05   Dec '06   Mar '07   Jun '07    Sep '07    Dec '07

                                                                                   12.3%
                                                                      Corporate                                              5.5%
                                                        12,410                                                   3.7%
             9,526                 9,377      9,714                                          3.2%      3.3%                             3.2%
  7,970                 9,001



 Dec '05    Dec '06     Mar '07   Jun '07    Sep '07   Dec '07                    Dec '05   Dec '06   Mar '07   Jun '07     Sep '07    Dec '07

Note: Corporate excluding Syariah. Retail including Credit Card, Preffered Circle and Small Micro                      *include loan to banks



                                                                      17                                                                      17
Retail Loans by Product
Mortgages Represent 22% of Total Loans               Bank Only (Rp Billion)

                                                   15,971
                                         15,088
                               14,182
            12,955    13,206
                                                    23%         SME*
  11,610                                  22%
                                 21%                 5%         Multipurpose
             21%       20%                5%
                                 6%                  6%
    19%                6%                 6%                    Credit Cards
             6%                  6%
             6%        6%                           11%         Car Loan
    10%                          12%      12%
    6%                 13%                                      Mortgage
             13%
    12%


             54%       55%       55%      55%        55%
    53%




  Dec '05   Dec'06    Mar'07   June'07   Sept'07   Dec '07

                                                           *include loan to banks


                                18                                              18
Niaga Mortgage Market Share
Loans grew by 26% in 2007 vs. 14% in 2006
                                                                                         (Rp Trillion)




  11.24%
                   9.87%          9.95%               9.69%           9.63%           9.64%
                                                                                              94.25
                                                                              88.57
                                                              82.47
                                         76.96
                          72.71

        56.034




 6.30              7.18           7.66                7.99             8.53            9.08


   Dec '05           Dec '06         Mar '07            Jun '07          Sep '07         Dec '07

                     Bank Niaga                                        Industry

        Mortgage loans grew 27% (Rp1.9 trillion) in 2007
        Rp3.4 trillion new booking in 2007


                                                 19                                                   19
Credit Cards Grew 53% and Sales up 39% YoY
             Number of Account (thousand)         Quarterly Sales Volume (Rp Billion)

                                                                                         703
                                                                     647
                                                  567

                    455             454
     368
                                                                                         356
                                                                     325
                                                  282
     223            233             244




   Dec '05        Dec '06         Mar '07        Jun '07           Sep '07              Dec '07

  Market share up from 2.8% in 2006 to 3.8% in October 2007
  Number of cards up 53% YoY or 10% QoQ to 356 thousand account in Dec’07
  Sales volume up 39% YoY or 9% QoQ
  Launched Free For Life Card in August ‘07 and Platinum Card in November ‘07

                                            20                                                    20
Affluent and Mass Affluent
Increasing investment portfolio

                             Asset Under Management
                                      Bank Only (Rp Trillion)

                                                                          9,131
                                                                8,700               Total Relationship
                                                8,321
                  7,921        8,056
     7,565
                                                                          13.8
                                                                12.4
                  11.8         12.1             11.8
     11.5

     13%                                                                  35%
                 18%           23%                              33%                   Investment
                                                30%


     87%          82%          77%                                        65%
                                                70%             67%                   Deposit


    Dec '05      Dec '06       Mar '07          Jun '07         Sep '07   Dec '07

      Ranked 2nd in the Indonesian Service Quality Award for category Priority Banking Service
      for All Multinational and Domestic Bank by CCSL in 2007
      Number of relationships grew 15.3% YoY to 9,131


                                                                                                    21
Business Banking*
Loans grew by 26% in 2007 vs. 11% in 2006                                       Bank Only (Rp Trillion)


        Deposit          Loan
                                                                                     17.5

                                                                  14.7
                  13.8                                                                      13.8
                                 12.1               12.3
 11.6                    10.9
                                                                         11.8
         10.0                           10.1               10.6




   Dec '05          Dec '06        Mar '07            Jun '07       Sep '07             Dec '07



   New business model in place
   Business Banking loans grew 26% YoY and 17% QoQ, while deposit grew 27% YoY and 19%
   QoQ



                                               22                                                    22
Corporate Banking
Loans grew by 31% in 2007 vs. 19% in 2006                                   Bank Only (Rp Trillion)

       Deposit          Loan

                                                                                       12.4

                       9.5             9.0               9.4          9.7
                                                                                 8.9
       8.0       7.4             6.8               6.6          6.4
 5.2




   Dec '05        Dec '06         Mar '07           Jun '07       Sep '07         Dec '07

 Second joint syndication by CIMB & Bank Niaga on 5th Nov 2007: USD30 million Syndicated
 Secured Term Loan for PT Mandala Multifinance
 Top 5 industry by sectors are: Manufacturing; Trading, Restaurant & Hotel; Business Services;
 Agriculture; and Others




                                              23                                                 23
Syariah Banking
Loans* increased by 92% in 2007 vs. 63% in 2006                                      Bank Only (Rp Million)


1,100,000                                                              19,982                       25,000

  800,000                                                                                           20,000

                                         11,842                        721,316                      15,000
  500,000                                                                        1,013,949
                                                                                                    10,000
                                                   532,124
  200,000
                 230,411 327,355        375,860                                                     5,000
 (100,000)                                                                                          0
                       2005                   2006                             2007
                           (1,231)
 (400,000)                                                                                          (5,000)
             Loans (LHS)             Total Asset (LHS)                     Net Income (RHS)


      Awarded as the Best Syariah Unit for category asset above Rp500 billion by Investor
      Magazine
      Net income increased 69%
      Total assets increased 91%
                                               * Loans consist of Piutang Mudharabah, Murabahah and Musyarakah


                                              24                                                                 24
 Share Price Performance




   Competition                                            Fed rate
   in mortgage                                             cut by Global crash
                                                           50bps     due to
 During FY ‘07                                                      subprime
     Hi: 1010                               Subprime               post FY 07          Fed rate
(4& 5 Jan & 23 Jul)                         Mortgage                  result          emergency
                                             Crisis
 Lo: 670 (16 Aug)                                                                       cut by
    Close: 900                                                                          75bps
   Avg: 856.69




     BNGA               Dec ‘07   Sep ‘07      Jun ‘07   Mar ’07    Dec ’06      Dec’05
     Share Price (Rp)   900       870          820       740        920          405
     PBV (x)            2.14      2.13         1.97      1.81       2.33         1.22
     PER                14.46     13.53        12.32     11.17      17.02        6.74
                                                                            Source: Stock Watch
                                               25                                                 25
Market Consensus 2007: Net Income Rp791.5 billion




                                              Source: Bloomberg


                          26                                26
Agenda




 •   FY 2007 Financial Performance
 •   Corporate Strategy
 •   Corporate Profile
 •   Macro Economic Outlook




                              27     27
    New Vision: To be Indonesia’s Premier Universal Bank
            VISION                        V2010 Targets
       To Be Indonesia’s                  • Premier Universal Bank in Indonesia    • Overall market share 5%; ROE 20%
     Premier Universal Bank               • National Bank status                   • Integrated regional operating model

                                                           CORE STRATEGY
      1                       Focus & Optimize                        2      Deemphasize           3   New Opportunities
          •Top 5 in                                                       • De-emphasize            • Create / Identify
            -Credit Card                                                    - Mass Consumer &         Opportunities in New
            -Corporate Banking (incl. High End Commercial)                    Lower Middle            Market (Blue Ocean)
            -Treasury (product, manufacturer, FX, bonds, BSM, etc             segments                 - Consumer Durables /
              to Mass Affluent & Affluent segments)                                                      Sub Prime Financing
          •Top 3 in                                                                                      (e.g. through strategic
                                                                                                         JV)
            - Affluent & Mass Affluent (e.g. SP, MF Banca wrappers)
           - Sharia Banking (Investment Banking as entry strategy)
          •Strengthen market position & optimize profitability of:
4          - Mortgage (Top 3)
           - Business Banking
           - Auto Loan
           - UKM Program Lending
                                                         Organizational Enablers

                                                  Infrastructure & Organization
       • Align organization and re-deploy resources                   • Leverage on Group regional brand & capabilities
       • Strengthen overall risk management practices & process       • Enhance HR, network capabilities and footprint
       • Align IT roadmap and strengthen IT governance


                                                                28                                                            28
  New Vision: To be Indonesia’s Premier Universal Bank
                 Revenue Growth                                           Sustainable             Cost Efficiency                         Good Governance,
                                                                         Shareholder's                                                 Risk & Compliance Mgmt
                                   Increase Mkt                          Value Growth
                                  Share by Rev                                                         Manage
 Financial                           Growth &                                                            Cost                            Maintain GCG,
                                                                                                      Effectively                       Bank Soundness
                                  intermediation
Perspective                                                                                                                                 & CSR
                                                               Expand
              Loans                   Increase                 Deposits                              Improve
              Growth                 Fee Based                                                        Asset
                                       Income                                                         Quality


              Improve Brand Awareness & Value Proposition

Customer
                  Fast               Customize               Deepen                  Universal
Perspective     Approval             Solutions              Relationship             Banking
                                                                                                                                           Fast
                                                                                                                                         Collection



                             Increase                                                                                                  Effective Risk
                            Distribution           Cross Selling                                                                       & Compliance
                             Channels
 Internal                                                                                                                               Management

Perspective     Brand                Service                Process                   Group                             Responsive
              Proposition            Quality                Efficiency               Synergy                           & Reliable IT



                                                                                                 High Performance Culture
Learning
                                                                                                                                             Good Work
                    Learning                Competency                                                                  Leadership
& Growth          Effectiveness
                                                                   High Motivation                                                           Environment
                                               Skills                                                                  Development




                                                                                                                                                           29
CIMB – Niaga Synergy

                           Phase I                                                Phase II
   Investment /             Credit Cards                Treasury                   Other Areas
Corporate banking

Strengthen investment   “Free For Life” card      Align to Group level      Align to CIMB Group
banking collaboration   issued.. Leveraging on    management framework      platform.. Management
with CIMB/CIMB-GK..     tri-partite CIMB-Bank     & process.. Transform     framework & processes
Cross border customer   Niaga-Master Card         Treasury function from    for Group Treasury, Risk
insights & referral     alliance                  support to “business      Management and
                                                  engine” of the bank       Finance
                        MasterCard Platinum
                        issued                    Enhance product suite..   Enhance delivery
                                                  IDR interest rate         models.. Operation
                        Target to be top 5 card                             centralisation & hubbing
                                                  derivatives, IDR
                        issuer in Indonesia
                                                  sovereign & corporate
                                                  bonds, IDR fixed income
                                                  origination, FX &
                                                  structured products



                                                  30                                                   30
CIMB – Niaga Synergy Achievement 2007
FY 08 synergy target raised to RM132.3 mn (Rp384 bn)                                                 (RM Million)
- Accounting for 30% of Bank Niaga’s FY 08 Budget                                               132.3



     FY '07            FY '07 Target Synergy PBT                           28.8   27.0
                             18.7
                                                            13.5
                                       8.0           8.4
             5.6
    1.6

    Credit Cards                  Treasury        Corporate Banking     Total Synergy PBT         Target '08


Corporate & Investment Banking                       Credit Card                             Treasury
  12 sizeable prospects in pipeline          MasterCard Platinum.. Launched        Launch of inaugural structured
                                             to the public on 9th November         product, “Star Choice” on 1st
  Further cross selling efforts
                                             2007                                  November 2007
  underway
                                             Total card sales as at December       Stronger corporate FX sales
  First joint syndication by CIMB &
                                             is 356k vs target of 351k             Dynamic Duo Star Market
  Bank Niaga on 5th November
  2007                                                                             Linked Deposit launched on 1st
                                                                                   February 2008
  USD30 million Syndicated
  Secured Term Loan for PT
  Mandala Multifinance


                                                           31                                                       31
Agenda




 1. Highlights
 2. FY 2007 Financial Performance
 3. Corporate Strategy
 4. Corporate Profile
 5. Macro Economic Outlook




                             32     32
Majority Shareholder: CIMB Group

     Vision of CIMB Group: To be South East Asia’s Most Valued Universal Bank




                                              100%




                63.13%                        100%
                                                           Commerce International
                                                              Group Berhad
                                    Universal Bank




            Indonesian             Malaysian Banking            Insurance
              Banking                      &
                                  Investment Banking




                                         33                                         33
   Bank Niaga improved its position from 7 to 6 largest bank

                                                    Top 10 Banks by Asset Size*
                     306.6                                 (31 December 2007, Rp Tn)



                                  218.6
                                                204.0
                                                               184.5
                                                                                                                 Private

                                                                                                                 State Owned
                                                                        86.7
                                                                                 54.7    51.4    50.9     45.0        39.1


                     Mandiri        BCA           BRI           BNI    Danamon   Niaga   Panin    BII    Citibank   Permata
  Share of
Asset Dec ’07*       15.43%       11.01%        10.27%         9.29%    4.36%    2.76%   2.59%   2.56%   2.27%      1.97%
 Dec ‘07 Rank
  by Asset*             1             2             3           4         5       6       7        8       9          10

  Market Cap
Bloomberg - Rp Tn     68.2          87.5          86.3         25.9      36.5    9.40    13.1    16.1       -         6.8
18 Feb ‘08 Closing


* Source: Indonesian Banking Statistics Dec 2007 - Bank Only



                                                                         34                                                    34
 Board of Commissioners and Directors


Board of Commissioners
1.   Dato’ Mohd. Shukri Hussin           :   President Commissioner
2.   Sigid Moerkardjono                  :   Vice President Commissioner (Independent)
3.   Dato’ Mohammed Adnan Shuaib         :   Commissioner (Independent)
4.   Dato’ Halim Muhamat                 :   Commissioner
5.   Sri Hartina Urip                    :   Commissioner (Independent)

Board of Directors
1.   Hashemi Albakri                         :        President Director
2.   Daniel James Rompas                     :        Vice President Director
3.   Tay Un Soo                              :        Director
4.   V. Catherinawati Hadiman                :        Director
5.   Yosef Antonius Boliona Badilangoe       :        Director
6.   Ananda Barata                           :        Director




                                                 35                                      35
      Financial & Network Snapshot
      Added 16 new branches, 72 ATMs, and 31 SSTs (non cash ATM) in 2007
            North Sumatera




                          Riau
                                 Batam                                                           North Sulawesi

                                                                         East Kalimantan

              Palembang                                South Kalimantan
                                                                                                                                       Central Papua

                                 Lampung

                                           Jakarta
                                                                                    South Sulawesi
                                  Banten
                                                        Yogyakarta
                                    West Java
                                           Central Java      East Java    Bali




                                            Dec ‘07              Dec ‘06              As at December 2007
•   Branches/Outlets                     :    256                  240                Total Assets                    : Rp 54.89 trillion
•   Office Channeling Unit Sharia        :    106                   43                Shareholder’s Equity            : Rp 5.20 trillion
•   ATMs                                 :    469                  397                Capital Ratio                   : 16.13% (without market risk charge)
•   ATM Bersama                          : 11,222*              10,500                Capital Ratio                   : 15.64% (with market risk charge)
•   SST                                  :    235                  204                Market Share Loan**             : 4.18% (ranked 6th as at Dec ’07)
•   Total Employees                      : 6,157                 5,241                Market Share Deposit**          : 2.99% (ranked 6th as at Dec ’07)
* As at September 2007                                                                **Source: Indonesia Banking Statistic – Bank Indonesia




                                                                                    36                                                                 36
Major Corporate Social Responsibility 2007 Activities
Mobile Libraries for Aceh and Yogyakarta Earthquake Child Victims
Aceh and Yogyakarta, April 2007 – Bank Niaga, in collaboration with Yayasan Kesejahteraan Anak Indonesia (YKAI), ran a
Mobile Library Program for a period of 2007-2008, with total cost of Rp 175,373,000.

The mobile libraries visited schools in areas affected by earthquakes in Aceh (Lhok Nga, Ajun and Pakanbada) and
Yogyakarta (Bantul). The program’s Mobile Child Service facility provided fiction and non-fiction books, educational tools
and playing toys, as well as post-traumatic counseling sessions to school children.


Bank Niaga, BCHB and CIMB Group Open School in Yogyakarta
Yogyakarta, April 2007 – Bank Niaga, Bumiputra-Commerce Holding Berhad (BCHB) and CIMB Group handed over
renovated Glagah I State Elementary School previously damaged by earthquake to the mayor of Yogyakarta.

The two-story building had a library stocked with over 1,000 books and a 12-PC computer center. A total of Rp
1,909,435,323 was spent on the renovation of the school, which was located in Jl. Prof. Dr. Soepomo, S.H., Janturan,
Umbulharja, Yogyakarta. The 330 students would return to the newly restored school for their learning activities.


Bank Niaga and UNICEF Visit Aceh
Aceh, July 18, 2007 – Bank Niaga went to Aceh in response to UNICEF’s invitation to its ‘Back to School’ program. It was
part of the organiza¬tion’s accountability to corporate donors for its Aceh rehabilitation scheme.

Bank Niaga donated through UNICEF a total of Rp 1 billion for the reconstruction of Muhammadiyah 1 and Muhammadiyah
2 schools in Banda Aceh. The official re-opening of these buildings took place on September 18, 2006…

..and many other CSR activities during 2007


                                                            37                                                               37
Major Accolades 2007
Performance
1.   The Best Bank 2007 by Asset above Rp10 trillion – Rp50 trillion by Investor Magazine
2.   Bank with “Excellent” performance (Sangat Bagus) by InfoBank Magazine
3.   Ranked 1st – Most active participant in BES for Corporate Bonds Transactions in 2006 -
     category Bank
4.   Ranked 2nd – Most active participant for Bond Transactions Reporting in 2006 - category
     Custodian Bank

Good Corporate Governance
1.   Awarded “Very Reliable” (Sangat Terpercaya) in Corporate Governance Perception Index
     2006 Award by The Indonesian Institute for Corporate Governance
2.   Awarded Best Annual Report for 4 consecutive years 2003 – 2006 for Private Listed Financial
     Companies Category

Human Resources
1.   Ranked 1st in the HR Excellence Award 2007 by SWA magazine and LM FEUI (for
     Management Performance and training & development)
2.   Ranked 3rd in the Top 10 Employer of Choice 2007 by SWA magazine and Hay Group


                                              38                                               38
Major Accolades 2007
Service Quality
1.   Ranked 1st – The Best Bank in Service Quality by Institute of Service Management Studies
     (ISMS)
2.   Banking Service Excellence Awards 2007 by MRI and InfoBank Magazine:
      Ranked 1st – Best Phone Banking Machine;
      Ranked 2nd – Best Teller & Ranked 4th – Best Overall Performance
3.   Indonesian Service Quality Award by Marketing magazine and Center for Customer
     Satisfaction & Loyalty (CCSL):
      Ranked 1st – category Regular Banking Service – Domestic Banking
      Ranked 2nd – category Priority Banking Service – All Mutinational and Domestic


Syariah
1.   The Best Syariah Unit 2007 for category asset above Rp500 billion by Investor Magazine
2.   Received Syariah Certificate for Custodian and Trustee Services




                                              39                                              39
Ratings

Rating Agencies     Rating / Outlook

Standard & Poor’s   Corporate Governance                  CGS / 6+ (In 2005)


                    Long-Term National Scale Rating       Aaa.Id
                    Long Term & Short Term Bank Deposit   B1 / Not Prime / Stable
Moody’s             Issuer Rating                         Ba2 / Stable
                    Bank Financial Strength               D / Stable
                    Subordinated Debts                    Ba2 / Stable


                    Long Term Foreign Currency            BB / Stable
                    Bank Individual Rating                D
Fitch
                    Support Rating                        4
                    Subordinated Debts                    B+

Pefindo             Corporate Rating                      idA+ / Stable




                                           40                                       40
Agenda




 1. Highlights
 2. FY 2007 Financial Performance
 3. Corporate Strategy
 4. Corporate Profile
 5. Macro Economic Outlook




                             41     41
  Indonesia Banking: Continuing On Its Growth Trajectory

         Rp. Tn      Indonesian Banks (1) : Outstanding Deposits vs. Outstanding Loans
                                                                                                                           CAGR Growth           CAGR**
    2,000
                                                                                                                          (’02-’07) (’06-’07)   (’07-’10F)
    1,800
                                                                                                                   Funding   13%       17%        16%
    1,600

    1,400

    1,200
                                                                                                                   Loan      22%       26%        18%
    1,000

     800

     600

     400

     200

         0
         1996      1997    1998      1999   2000   2001   2002     2003    2004    2005   2006     2007    2008E

            7.8%          -13.1%            5.4%          4.4%             5.1%           5.5%            6.4%*
% Real
 GDP
growth             4.7%             0.8%           3.8%           4.7%             5.6%            6.3%

Outlook Unchanged : Long Term Growth Expected, Short Term Volatilities Possible
     (1) Exclude rural banks (i.e., BPRs)            Source: Bank Indonesia, BPS   *ADB forecast   **BN forecast



                                                                              42                                                                    42
   Macro Economic Indicators
                                                                                                          15%
 18%
        15.5%                             Inflation (YoY)                                                       12.50%
                                                                                                                                      Interest Rate (SBI 1mo)
                       14.6%                                                                              13%
 14%                                                                                                                      11.25%
                                                                                                          11%
 10%                                                                                                                                              9.00%
                                                                                                          9%                        9.75%                                8.25% 8.00%
                                          6.52% 5.77% 6.95% 6.59%
  6%                         6.6%                                                                                                                           8.50%
                                                                                                          7%                                                                                 7.75%
                                                                                          6.00%
  2%                                                                                                      5%
         Jun '06




                                                       Jun '07
                   Sep '06



                                Dec '06



                                            Mar '07




                                                                    Sep '07



                                                                               Dec '07


                                                                                           Dec '08




                                                                                                                                                  Mar '07
                                                                                                                Jun '06



                                                                                                                          Sep '06



                                                                                                                                        Dec '06




                                                                                                                                                               Jun '07



                                                                                                                                                                         Sep '07



                                                                                                                                                                                   Dec '07


                                                                                                                                                                                             Dec '08
                                                                                           (F-BN)




                                                                                                                                                                                             (F-BN)
9,600                                     Exchange Rate                                                                              GDP YoY Growth (%)
        9,362                                                                 9,393                                                                                       6.3      6.3

                                                                                                            6
9,200              9,148                                         9,145                                                                                                                            6.2
                                          9,125                                                                                                       5.4
                                                                                         9,250
                                                                                                                                       5.5                     5.6
                                                                                                                          5.5
                                                      9,050                                                     5.2
                              9,003
8,800                                                                                                       4
         Jun '06




                                                       Jun '07




                                                                                                                                       FY 06




                                                                                                                                                                                    FY 07


                                                                                                                                                                                              FY 08 (F-
                   Sep '06


                                Dec '06


                                            Mar '07




                                                                    Sep '07


                                                                               Dec '07


                                                                                          Dec '08




                                                                                                                2Q 06



                                                                                                                          3Q 06




                                                                                                                                                  1Q 07



                                                                                                                                                                2Q 07



                                                                                                                                                                          3Q 07
                                                                                          (F-BN)




                                                                                                                                                                                                          BN)
                                                                                                     43                                                                                      43
Thank You


                  prepared by Investor Relations - Corporate Affairs
                    Graha Niaga, Jl. Jend. Sudirman Kav. 58 – 5th fl,
                                           Jakarta 12190, Indonesia
                 T. +62 21 250 5151, 250 5252, 250 5353 ext. 5901
                                                 F. +62 21 252 6749
                                 E. investor.relations@bniaga.co.id

                                  www.bankniaga.com

                             is a subsidiary of


            44                                                     44

				
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