Bank Maybank Indonesia Tbk PT : Maybank Indonesia Recorded A Solid 16.3% Increase in PATAMI for First Half 2017

Maybank Indonesia Recorded A Solid 16.3% Increase in PATAMI

for First Half 2017

Consolidated Financial Highlights as of 30 June 2017

Y-o-Y growth

• Profit After Tax and Minority Interest ('PATAMI') increased 16.3% to Rp998.5 billion from Rp858.4 billion
• Net Interest Income (NII) increased by 7.0% to Rp3.8 trillion
• Net Interest Margin (NIM) improved to 5.3%
• Fee Based Income increased by 9.1% to Rp1.5 trillion
• Global Banking loans grew by 18.9% to Rp27.3 trillion
• Cost to Income Ratio (CIR) was maintained at 57.9%
• Loan to Deposits Ratio (LDR) (Bank Only) was at healthy level of 86.7%
• Total Capital Adequacy Ratio (CAR) reached 16.9 % with total capital of Rp22.0 trillion
• Total Sharia Banking Financing grew by 49.8% to Rp16.2 trillion
• Total Sharia customer deposits increased by 41.4% to Rp13.5 trillion
• Sharia Banking Net Profit surged 95.9% to Rp384.9 billion

Jakarta, 27 July 2017

PT Bank Maybank Indonesia Tbk ('Maybank Indonesia' or the 'Bank') today announced that its profit after tax and minority interests (PATAMI) increased 16.3% to Rp998.5 billion for the first semester ended 30 June 2017 from Rp858.4 billion in the previous corresponding period ended 30 June 2016 on the back of overall improvement in its core banking business.

NII rose 7.0% to Rp3.8 trillion in the first semester 2017from Rp3.6 trillion in first semester of 2016. The increase in NII was mainly a result of the Bank's discipline in loan pricing and active funding management. The Bank also reported an increase in its Net Interest Margin (NIM) to 5.3% in June 2017 compared with 5.0% in June 2016.

The Bank's fee based income increased by 9.1% from Rp1.3 trillion in June 2016 to Rp1.5 trillion in June 2017. The increase in fee based income was achieved from bancassurance, loan recovery, remittances,and other services provided by the Bank. Global Banking loans saw strong loans growth of 18.9% to Rp27.3 trillion in June 2017 as a number of key deals were successfully realised, benefiting from the re-aligning and re-profiling of its portfolio. The Bank's Community Financial Services (CFS) Non-Retail loans, which comprises of Micro, Small & Medium Enterprises (SME) and Business Banking grew by 2.0% to Rp50.1 trillion, while CFS Retail banking loans decreased by 6.4% to Rp42.5 trillion in June 2017 due to a slowdown in consumer spending.

The Bank maintained its asset quality with consolidated NPL level remaining at 3.6% (gross) and 2.4% (net) as of June 2017 compared with the previous corresponding period. The Bank was also able to reduce provision expenses by 15.7% to Rp835.8 billion in June 2017 from Rp991.1 billion in June 2016. Nonetheless, the Bank remains cautious over loan quality as businesses are still impacted by the continued slow movement in the economy.

The Bank's LDR (bank only) stood at a healthy 86.7%, while the Loan-to-Funding Ratio (bank only) was at 85.9%. Total customer deposits grew by 5.0% from Rp114.1 trillion in the first semester 2016 to Rp119.8 trillion in the first semester 2017 with the CASA ratio reaching 37.4%. The Bank's continuous focus on transactional banking and electronic channels which includes its internet based mobile banking facility Maybank M2U also contributed greatly to the improved liquidity position.

To further strengthen its funding position, the Bank successfully issued Rupiah-denominated Negotiable Certificate of Deposits (NCD) of Rp330 billion in the second quarter of 2017. Through this NCD issuance, the Bank was able to demonstrate its sale capability as it was the first NCD issuance without the help of third party arranger. The NCD was issued in two series; A series with 365-day tenure and 7.2% discount rate for Rp300 billion, and B series with 18-month tenure and 7.35% discount rate for Rp30 billion.

The Bank had also just completed the issuance of a Sukuk Mudharabah and Senior Bond of Rp1.1 trillion. Within the minimum book building period, and with optimum pricing, the Bank managed a final issuance of Rp1.1 trillion, which was ample to support the Bank's business expansion and liquidity. The issuance includedShelf Registration Sukuk Mudharabah II Maybank Indonesia Tranche I and Shelf Registration Bond II Maybank Indonesia Tranche I.

For the half year under review, the Bank's capital position continued to improve with CAR increasing to 16.9% as of 30 June 2017 from 15.9% as of 30 June 2016 and total capital reaching Rp22.0 trillion.

Sharia Banking continued to demonstrate strong performance in the first six months of 2017. Its net profit rose 95.9% to Rp384.9 billion in June 2017 from Rp196.4 billion in June 2016. Total Sharia financing rose 49.0% reaching Rp16.2 trillion in June 2017 compared with Rp10.8 trillion in June 2016, while its deposits jumped 41.4% to Rp13.5 trillion from Rp9.6 trillion. Sharia Banking's total assets rose 30.5% to Rp22.2 trillion, contributing 13.0% of the Bank's consolidated total assets.

Maybank Finance

Maybank Finance recorded a 21.9% increase in consumer financing (stand alone) to Rp6.7trillion in June 2017from Rp5.5trillion in June 2016. Asset quality remained solid with gross NPL only at 0.4% and net NPL at 0.3%.Maybank Finance's profit before tax increased 20.4% from Rp145.2 billion in June 2016 to Rp174.9 billion in June 2017.

PT Wahana Ottomitra Multiartha Tbk (WOM Finance)

Upon the cancellation of the Conditional Shares Purchase Agreement (CSPA) between the Bank and the prospective buyer, WOM Finance remains a subsidiary of Maybank Indonesia. WOM Finance recorded a 52.6% increase in its profit before tax to Rp74.8 billion in June 2017 compared Rp49.0 billion in June 2016. WOM Finance managed to recorda 5.5% increase in its totalfinancing portfolio(stand alone) to Rp5.5 trillion in June 2017 despite the continued weakening in purchasing power of consumers and the slow-down in motorcycle sales. WOM Finance introduced multipurpose financing in mid 2015 and this has successfully contributed 28.9% of WOM Finance's new financing in term of units financed. WOM Finance also remains focused on the implementation of prudent risk management practices to ensure sound asset quality. WOM's gross NPL was at 2.9% and net NPL was 1.2%.

President Director of Maybank Indonesia, Taswin Zakaria said, 'We continued to show strong improvement at the operating level for the first six months amidst the challenging market condition. Our strong first semester results clearly reflects the steady improvement in our core business performance as strong fundamentals, rigorous risk management practices as well as a disciplined approach towards pricing and growth are well in place. Together with ongoing efforts to boost our capabilities through all-round improvements in system, processes, people and cost-structure, we are confident of seeing sustainable profitable growth for the remaining 2017.'

President Commissioner Maybank Indonesia andGroup President & CEOof Maybank,Datuk Abdul Farid Alias said, 'I am pleased that theBank continues to show encouraging improvement for the first semester despite the challenging macro economicenvironment, by delivering consistent value to our stakeholders and proving that it is built upon solid fundamentals. While we continue to focus on sustainable profitable growth, we remain committed to supporting growth in the country's economic activities as well as community development through our various empowerment programs.

Note for editor

Maybank Indonesia is one of the largest banks in Indonesia with 419 branches including Syariah branches, micro functional offices, and overseas branches. Its electronic network consists of 1,609 ATMs including CDMs (Cash Deposit Machines) across Indonesia. It is also connected with more than 20,000 ATMs under ATM PRIMA, ATM BERSAMA, ALTO, CIRRUS, and Malaysia's MEPS network, and to more than 3,500 Maybank ATMs in Malaysia and Singapore. Maybank Indonesia provides full range of financial services through its branch and ATM network, phone banking, mobile banking and internet banking channels. Maybank Indonesia is listed on the Indonesia Stock Exchange (BNII) and is active in Community Financial Services (Retail and Non-Retail Banking) and Global Banking.

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