Corporate Presentation

1H2019

PT Bank Negara Indonesia (Persero) Tbk

July 2019
< BBNI.IJ >
Outline

❑ Macro Economy
❑ Highlighted Results 1H2019
❑ Financial Performance 1H2019
❑ Business & Consumer Banking
❑ Appendices
✓About BNI
✓5 Years Financial Data
 Macro Economy
GDP 1Q2019 was stable at the level of 5.07% from the same period in By 1H2019, trade balance posted a deficit since major exported
the previous year at 5.06% commodities prices have declined (i.e.: CPO & coal)
12,407T 12.589T 3,507T 3,686T 3,836T 14,487T 3,782T GDP IDR Export (US$ Bn) Import (US$ Bn) Balance of Trade (US$ Bn)

5.03 5.07 5.06 5.27 5.17 5.17 5.07 168,8 180,0

GDP % 145,2 135,0
88,0 80,3
57,8% 57,3% Private Cons 44,3 40,5
56,8% 55,4% 55,2% 55,7% 56,8%
Govt. 9,5 11,9 0,3 -1,0 -2,0 -0,2 -1,9
-8,6
9,5% 9,1% 6,3% 8,5% 8,7% 9,0% 6,4% Spending
-44,0 -40,7
33,8% 33,3% 32,1% 31,2% 32,1% 32,3% 32,2% Fix. Cap -89,0 -82,3
-135,7 -137,0
19,1% 20,4% 21,1% 20,4% 22,1% 21,0% 18,5% Export -156,9
-188,6
-18,3% -19,2% -20,8% -20,9% -22,8% -22,1% -18,7% Import
2016 2017 1Q18 1H18 3Q18 2018 1Q19 1H19

2016 2017 1Q18 2Q18 3Q18 2018 1Q19

Adequate Foreign Reserve to finance 7.1 months import Manageable inflation and higher policy rate to stabilize Rupiah

Foreign Reserve (USD Bn) Exchange Rate YoY Inflation (%) 7-D RR Rate (%)
6,00 6,00 6,00
5,75
14.929
5,25
14.404 14.481 4,75 4,75
14.243 14.128 4,25 4,25
13.756
13.548 4,37
13.436
3,28
3,13
3,61
3,40 2,48
116 130 126 120 115 121 124 124 3,02 3,12
2,88
2016 2017 1Q18 1H18 3Q18 2018 1Q19 1H19 2016 2Q17 2017 1Q18 1H18 3Q18 2018 1Q19 1H19

3 Source: Bank Indonesia and BPS

 Banking Sector Highlights
Banking Sector Highlights [Rp Tn] Macro & Banking Assumptions
2019 2019
2017 2018 May 18 May 19 Δ YoY MACRO ECONOMY
BI’s VIEW RAPBN
Assets 7,388 8,068 7,546 8,133 7.8% GDP Growth (%) 5.3 5.3

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

Loans 4,738 5,295 4,879 5,419 11.1%
Currency (IDR/USD) 14.400
Deposits 5,289 5,630 5,337 5,671 6.3%
2019
BANKING SECTOR
Net Profit 131 150 57 63 8.9% BI
NII 358 377 152 158 4.2% Loan Growth (%) 10 – 12

Deposit Growth (%) 8 – 10

NIM 5.3% 5.1% 5.1% 4.9% - 0.2%
❑ Total Loans and Total Deposits grew by 11.1% and 6.3% respectively as of
NPL 2.6% 2.4% 2.8% 2.6% - 0.2% May 2019.

LDR 89.6% 94.0% 91.4% 95.5% 4.1% ❑ Net Profit grew 8.9% YoY supported by Net Interest Income growth 4.2%.
❑ Net Interest Margin as of May 2019 declined to 4.9% from 5.1% a year
CAR 23.2% 23.0% 22.2% 22.4% 0.2% earlier.
❑ NPL ratio improved to 2.6% in May 2019 from 2.8% in May 2018.
BOPO 78.6% 77.9% 79.4% 81.5% 2.1%
❑ LDR increased to 95.5% in May 2019 from 91.4% in the previous year.

Source: Indonesian Banking Statistic & National Statistic Bureau (BPS)

4
 Highlighted Results [Consolidated]
2016 2017 2018 1H18 1H19 Δ YoY
Total Asset (Rp Bn) 603,032 709,330 808,572 734,189 843,214 14.8%
[Cons]
B/S

Loan (Rp Bn) 393,275 441,314 512,778 457,807 549,234 20.0%

Third Party Funds (Rp Bn) 435,545 516,098 578,775 526,482 595,067 13.0%
Net Interest Income (Rp Bn) 29,995 31,938 35,446 17,447 17,613 1.0%
[Cons]

Non Interest Income (Rp Bn) 8,174 9,308 9,615 4,817 5,375 11.6%
P&L

PPOP (Rp Bn) 22,082 24,349 26,952 13,229 13,630 3.0%

Net Profit (Rp Bn) 11,339 13,616 15,015 7,437 7,634 2.7%
CASA (Consolidated) 64.6% 63.1% 64.8% 63.8% 64.6% 0.6%
COF (Third Party Funds) 3.1% 3.0% 2.8% 2.8% 3.2% 0.4%
Profitability &
Efficiency

NIM 6.2% 5.5% 5.3% 5.4% 4.9% - 0.5%

ROE 15.5% 15.6% 16.1% 16.5% 14.4% - 2.1%
ROA 2.7% 2.7% 2.8% 2.7% 2.4% - 0.3%
CIR 44.0% 43.9% 42.5% 42.1% 43.4% 1.3%
BOPO *) 73.6% 71.0% 70.1% 71.2% 72.6% 1.4%
Asset Quality

NPL (Gross) 3.0% 2.3% 1.9% 2.1% 1.8% - 0.3%

NPL (Nett) 0.4% 0.7% 0.8% 0.9% 0.8% - 0.1%
Credit Cost 2.0% 1.6% 1.4% 1.7% 1.4% - 0.3%
Coverage Ratio 146.0% 148.0% 152.9% 150.2% 156.5% 6.3%
Liqui-
dity

LDR 90.4% 85.6% 88.8% 87.3% 92.3% 5.0%

Capital

Tier-1 CAR 18.3% 17.4% 17.4% 16.4% 17.6% 1.2%

Total CAR 19.4% 18.5% 18.5% 17.5% 18.7% 1.2%

All ratios are bank only unless otherwise stated. *) Interest Expense, Operating Expense and Provisioning Charges to Gross Operating Income

5
 What We Have Done…
Profitability
❑ Strong 20.0% of loan growth supported by 13.0% of deposit growth.
❑ Interest Income grew 9.4% driven by 20.0% loan growth in 1H2019.
❑ Fee based income grew by 11,6% YoY mainly contributed by 16.6% of recurring fees growth from main business
transaction accounted for 96.6% of total FBI.
❑ Pre-Provisioning Operating Profit (PPOP) grew 3.0% YoY contributed by operating income growth and manageable
operating expense.
Loan Growth
❑ Loan grew by 20.0% YoY exceed industry loan growth of 11.1%. Business Banking loan was the main contributor for
loan expansion of Rp78,2T or 22.0% YoY, consist of:
✓ Private Corporate and SOE segments loan rose respectively by Rp37,9T (27.8% YoY) and Rp22,1T (24.9% YoY).
✓ Medium and Small segments increased by Rp5,3T (7.6% YoY) and Rp12,9T (21.5% YoY) respectively.
❑ Payroll Loan was still the driver of growth for Consumer Banking segment, grew by 12.8% YoY followed by Mortgage
that grew 8.9% YoY.

Asset Quality

❑ Asset Quality improved as a result of effective Credit Risk Management and selective loan expansion preferably to
top players in each of their industry. NPL recorded at 1.8%, Credit Cost reduced to 1.4% from 1.7% in 1H2018,
Coverage Ratio strengthened to 156.5%.

Funding &
Capital ❑ Third Party Funds increased by Rp68,6T (13.0% YoY) above industry growth at 6.3% YoY, mainly supported by Current
Account growth Rp34,6T (22.4% YoY).
❑ CASA maintained at 64.6% from 64.8% in 2018.
❑ Cost of Fund increased to 3.2% from 2.8% in 2018 due to increasing deposit rate.
❑ Adequate Capital (CAR 18.7%) provided a buffer to support business growth.

6
Financial Performance 1H2019
 Balance Sheet Highlight [Consolidated]
Growth
Balance Sheet [Rp Bn] 2016 2017 2018 1H18 1H19
Amount YoY
Total Assets 603,032 709,330 808,572 734,189 843,214 109,025 14.8%

Placement with other banks & BI 33,662 28,593 39,324 25,898 41,846 15,948 61.6%

Marketable Securities [market value] 23,856 36,359 32,362 32,491 30,799 (1,692) -5.2%

Government Bonds [market value] 63,006 79,849 86,791 84,414 83,708 (706) -0.8%

Loans (gross) 393,275 441,314 512,778 457,807 549,234 91,427 20.0%

Third Party Funds 435,545 516,098 578,775 526,482 595,067 68,586 13.0%

Deposits from other Banks 10,801 12,177 14,233 8,660 22,023 13,363 154.3%

Marketable Securities Issued 7,227 3,482 3,087 2,987 3,087 100 3.3%

Borrowings 32,965 44,722 52,025 51,978 56,220 4,242 8.2%

Shareholders’ Equity 89,254 100,903 110,374 100,356 116,710 16,354 16.3%

8
 Loan Composition [Consolidated]
[Rp Bn]
Growth Compo- Loan by Currency
Segment 2016 2017 2018 1H18 1H19 sition
Amount YoY
Non IDR IDR
Corporate Private *) 116,990 134,392 151,711 136,436 174,297 37,861 27.8% 31.7%
Business Banking

15% 15% 16% 16% 17%

Corporate SOE 78,319 84,366 110,988 88,933 111,042 22,108 24.9% 20.2%

Medium 61,330 70,261 74,731 70,787 76,134 5,347 7.6% 13.9% 85% 85% 84% 84% 83%

Small 50,684 56,479 66,063 60,039 72,937 12,898 21.5% 13.3%

2016 2017 1H18 2018 1H19
SUBTOTAL 307,323 345,498 403,493 356,195 434,410 78,215 22.0% 79.1%

Mortgage 36,396 37,066 40,753 38,783 42,247 3,464 8.9% 7.7% Loan Yield by Segment [IDR] & Blended Loan Yield
[FX & IDR] – Bank Only
Payroll Loan 12,026 17,687 23,744 21,740 24,517 2,777 12.8% 4.5%
Loan Yield (%)
Consumer

Credit Card 10,549 11,635 12,558 12,142 12,632 490 4.0% 2.3% Corporate Medium Small
Consumer Loan Yield
Others 6,097 5,057 2,680 2,820 2,317 (503) -17.8% 0.4% 11,4
11,5 11,4 11,8 11,2 11,4
SUBTOTAL 65,068 71,445 79,735 75,485 81,713 6,229 8.3% 14.9% 11,0 11,0
11,3
11,3
10,5 10,7 10,5
Subsidiaries 20,882 24,369 29,550 26,127 33,111 6,983 26.7% 6.0% 10,8
10,5
9,9
Total 393,273 441,312 512,778 457,807 549,234 91,427 20.0% 100.0% 9,8 9,8 9,6 9,3
9,9 9,7
Working Capital 191,173 226,191 269,258 236,158 287,844 51,687 21.9% 52.4% 9,7
9,4 9,2
Investment Loan 125,281 130,292 149,270 132,425 164,228 31,803 24.0% 29.9%

*) Incl. Overseas Loans 1H18 3Q18 2018 1Q19 1H19

9
 Loan Quality [Bank Only]
Special Mention Loan (SML) by Segment [%, Rp Bn]
❑ SML ratio was stable at the level of 4.2% since 1Q19 or
slightly higher compared to 1H18.
10,931 15,730 17,632 19,006 20,417 21,619 Amount
8,3 ❑ New SML 1H19 in Corporate Segment:
7,4
❖ Palm oil plantation in South Sumatra – Rp 533 Bn –
7,2 Corporate
6,8 lower CPO production due to less supply from its
5,4 suppliers.
4,3 5,5 Medium
4,8 ❖ Plywood manufacture in Borneo – Rp 806 Bn –
5,1 4,9 4,7 Plywood price declines since 2018 – Negotiation
4,2 Small
4,1 4,2 process with strategic investor.
4,2 3,7
3,9 3,8 3,9 Consumer ❖ Coal mining in Borneo – Rp 221 Bn – delay on coal
3,8
2,9 3,5 mining project.
2,5 3,2 3,2 3,3 3,8
Total SML ❖ Beverage manufacture in West Java – Rp 199 Bn –
3,4 High competition since the last two years – Asset
1,6 3,0
selling process to investors.

2016 2017 1H18 2018 1Q19 1H19

Non Performing Loan (NPL) by Segment [%, Rp Bn] ❑ New NPL 1H19 from Medium Segment:
❖ Shrimp farming and trading in Surabaya – Rp 96
10,402 9,415 9,087 9,193 9,247 9,020 Amount Bn – Unable to do repayment due to harvesting
failure – Asset selling and facility downsizing
3,6 3,7 process.
2,7 Corporate ❖ Pipe manufacturing in Batam – Rp 78 Bn –
3,2 3,0 2,7 2,8 2,5 2,6 declining demand for its product
2,8 2,2 2,1 Medium
❖ Staples trading and distribution in Surabaya – Rp
1,9 2,3 2,1 2,7 Small 71 Bn – Declining on sales – facility downsizing
2,7 2,1 2,1
2,8 1,6 process.
2,5 1,9 Consumer
1,9 1,8
1,6 1,7 1,9 Total NPL
1,6
1,1

2016 2017 1H18 2018 1Q19 1H19

10
 Loan at Risk, Write Off, Recovery and Coverage
Write Off & Recovery (Bank Only) Loan at Risk to Loan Ratio (Bank Only)
Write Off (Rp Bn) Recovery (Rp Bn) Recov. to Write Off Ratio
10.000

9.000
8.730 100,0%

80,0%
Years Corporate Medium Small Consumer Total
7.447 35,7% 2016 10.7% 16.9% 12.0% 8.0% 11.4%
8.000
49,7% 24,5% 60,0%

7.000
25,4% 30,0% 40,0%

6.000
20,0% 2017 8.1% 16.2% 11.1% 8.2% 9.9%
5.000

3.012 4.278 3.761

4.000
2.657
0,0%

2018 6.3% 14.4% 8.6% 6.5% 7.9%

3.000 2.220 -20,0%

2.000 1.497 1.047 1.130 -40,0%

1H18 7.0% 15.6% 11.2% 7.7% 9.1%
1.000 -60,0%

- -80,0% 1H19 6.5% 16.8% 10.1% 6.7% 8.6%

2016 2017 1H18 2018 1H19

Write Off (Rp Bn) Recovery (Rp Bn) Coverage Ratio (Bank Only)
Year
Corp Medium Small Cons TOTAL Corp Medium Small Cons TOTAL
2016 382 659 696 1.274 3.012 258 418 501 319 1.497 NPL (Rp Bn) Provision (Rp Bn) Coverage Ratio 156,5%
2017 2.991 2.271 1.915 1.553 8.730 651 635 565 368 2.220
152,9%
2018 1.833 1.826 2.150 1.638 7.447 791 483 886 497 2.657
150,2%
1H18 1.830 786 983 679 4.278 280 200 350 216 1.047
1H19 1.743 608 766 644 3.761 169 217 457 286 1.130 148,0%

❑ Loan at Risk improved from 9.1% in 1H18 to 8.6% in 1H19. Assignment of dedicated 146,0%
officers to LaR debtors is one of strategy to lower LaR.
❑ Total write-off until 1H19 were recorded Rp3.76T that was lower than 1H18 (Rp.4.27T).
Strict procedure in write-off based on stipulated requirements has been implemented,
16.122 13.935 13.647 14.060 14.117
including minimum of 100% provision requirement.
❑ Legal actions have been taken along with collateral execution to increase recovery rate.
❑ Pro-active in both coordination and collaboration between Remedial & Recovery
division and business unit to handle SML
❑ Higher coverage ratio at 156.5% as additional buffer to anticipate the down cycle of 11.042 9.415 9.087 9.193 9.020
macroeconomy environment ahead.
2016 2017 1H18 2018 1H19

11
 Restructured Loan [Consolidated]
Types of Restructured Loan & Ratio (Rp Bn, %) Restructured Loan by Collectability (Rp Bn, %)
31.433 30.426 27.958 29.199 33.387 Total
31.433 30.426 27.958 29.199 33.387 Total

14.747 12.978 12.772 14.095 14.972 Ext.

Maturity, Current
8,0% 6,9% Interest 40,7% 47,0%
6,3% 69,1% 57,6% 50,9%
6,1% Rate,
5,7%
& Other

Ext.
Maturity,
11.401 11.872 11.714 11.583 12.666 Interest Rate 28,5% 37,1% 42,6% 38,7% SML
21,5%

5.285 5.577 3.473 3.521 5.749 Ext. Maturity 13,8% 12,0% 16,6% 14,2% NPL
9,4%

2016 2017 1H18 2018 1H19 2016 2017 1H18 2018 1H19

Restructured Loan to Total Loan

Restructured Loan Profile (Bank Only)
❑ Restructured loan to total loan ratio in 1H19 improved to 6.1% from 6.3% in
1H18. Social
Consumer Consumer 5,2%
❑ Restructured loan in Corporate segment: Services FX 9,4%
Others 5,2% 5,2% Small
❖ Steel manufacture’s latest update: restructuring scheme has been 1,0%
14,4%
Business Investment
approved and provisioned at 15% as of June 2019. Electricity
Service7,0% 31,3%
❖ Electronic distributor in Jakarta – Rp684M – Sales decline 1,7% Mining 7,1%
Medium
❖ Paperboard and medium linier manufacturing in East Java–Rp622M– Construction Agriculture
9,7% 31,9%
estimated to upgrade at the end of 2019. 4,4%
❖ Tin manufacture in Bangka -Rp.457M – suspending administrative matter Transportation, Manufacturing Rupiah
impacts sales performance warehousing, 26,0% 90,6%
❑ Top 3 new restructured loan in Medium segment: and Working Capital
communications 63,5%
❖ Hotel in Central Java – Rp116M 6,1% Trading, Corporate
❖ Sea transportation service in Surabaya – Rp88M restaurants, and 48,5%
❖ Sugar distributor in Surabaya – Rp77M hotels
31,8%
❑ Restructured loan strategies:
❖ Restructuring loan scheme based on debtor’s capacity
❖ Assisting debtors to find strategic investors Sectors Currency Type of Loan Segmentation

12
 Third Party Funds [Consolidated]
435.545 516.098 526.482 578.775 595.067 Total 13.0% YOY CASA Strategy
Time Deposit
10.7% YOY ❑ Enhancing relationship with corporate segment customers and institutional
190.641 190.458 203.445 210.743
154.230 clients as gateway to increase the growth of current account and number
By Type [Rp Bn]

of account respectively.
Saving Account ❑ Current account growth supported by loan related business (corporate,
7.5% YOY medium and small segment) and non-loan related business (government
158.662 182.295 181.793 206.056 195.474 institution, SOEs and private business). Cash management service offered
64,8% 64,6% as integrated financial solution.
64,6%
63,8%
63,1% Current Account Cash Management 2017 2018 1H18 1H19
154.231 169.274 188.848 22.4% YOY
122.652 143.162
# of Customer 37.134 48.161 42.258 53.384
Avg. Bal. Of Current Acc.
2016 2017 1H18 2018 1H19 112 142 130 145
(Rp Tn)
Current Account Saving Time Deposit CASA Ratio # of Transactions (Mn) 78 115 53 68
Value of Transactions (Tn) 2.137 2.864 1.279 1.382
Cost of Fund Number of Account – Bank Only
❑ Optimizing digital banking features to increase customers experience in
transactions
Number of Acc. (Mn) Cost Of Fund (%)
❑ Promoting more agency partnership to both increase branchless banking
number and support saving accounts growth.
3,2
3,1 3,0 2017 2018 1H18 1H19
2,8 2,8 # of Outlets 2.150 2.256 2.169 2.372

22,4 32,8 39,0 44,0 46,5 E-channel – # of ATM 17.966 18.202 18.158 18.405
Branchless Banking – #
69.589 111.836 93.765 124.216
2016 2017 1H18 2018 1H19 of Agent46
# of EDC 167.329 172.151 199.838 200.167
❑ Deposit account increased by 7,5 million (19.2% YOY) in 1H19.

13
 Profit & Loss Highlight [Consolidated]
Growth
Profit & Loss [Rp Bn] 2016 2017 2018 1H18 1H19
Amount YoY
Interest Income 43,766 48,176 54,139 26,151 28,598 2,448 9.4%
Interest Expense (13,771) (16,238) (18,693) (8,704) (10,985) (2,281) 26.2%
Net Interest Income 29,995 31,938 35,446 17,447 17,613 167 1.0%
Premium Income Net 1,342 1,768 1,712 719 894 175 24.3%
Non Interest Income 8,174 9,308 9,615 4,817 5,375 559 11.6%
Recovery 1,378 1,732 1,997 781 1,016 234 30.0%
Operating Income 40,889 44,746 48,771 23,763 24,898 1,135 4.8%
Operating Expense (18,806) (20,396) (21,783) (10,535) (11,268) (733) 7.0%
Pre-Provision Income [PPOP] 22,083 24,349 26,988 13,229 13,630 401 3.0%
Provisioning (7,853) (7,126) (7,388) (3,869) (3,968) (100) 2.6%
Non Operational Inc/(Exp) 74 (57) 221 (45) (31) 14 -32.1%
Net Income before Tax 14,304 17,166 19,821 9,315 9,631 316 3.4%
Net Income 11,339 13,616 15,015 7,437 7,634 197 2.7%
Net Income Per Share (full amount) 610 730 805 399 409 11 2.7%

14
 Non Interest Income [Consolidated]
Breakdown Non Interest Income [Rp Bn] Recurring Fee Growth [Rp Bn]

2016 2017 2018 1H18 1H19 Growth Trade Finance Card Business
Recurring Fee 7,598 8,441 9,379 4,450 5,190 16.6% 792
623 702
Non Recurring 576 867 236 367 185 -49.7% 538
Total 8,174 9,308 9,615 4,817 5,375 11.6%
1H 2018 1H 2019 1H 2018 1H 2019
Jun-18 Jun-19 Growth Jun-18 Jun-19 Growth
Top 10 Fee Based Income Growth Volume (USD Bn)
2016 2017 2018 1H18 1H19 # of Transaction (Th) 17.142 16.997 -0,8%
[Rp Bn] YoY Export 12,9 15,4 18,7%
Sales Volume (IDR Mn) 18.815 19.911 5,8%
Import 9,9 9,9 0,1%
Account Maintenance 1,432 1,584 1,743 829 923 11.3% Total 22,8 25,3 10,6%

Trade Finance fee was driven by growth in

Consumer &

Card Business 1,193 1,323 1,443 702 792 12.9% Boosting fee from growing sales volumes and new
international trade transactions. initiatives on chargeable features
Retail

ATM 1,002 1,029 1,122 514 614 19.5% Bank Guarantee

Debit Card Maintenance
Debit Card Maintenance 216 241 315 130 215 65.3%
241 215
Remittance 144 197 233 104 113 8.7% 238 130
Trade Finance 791 1,019 1,208 538 623 15.8%
Business Banking

1H 2018 1H 2019 1H 2018 1H 2019

Bank Guarantee 422 437 521 238 241 1.3% Jun-18 Jun-19 Jun-18 Jun-19 Growth
Syndicated Loan Fee 263 255 351 107 189 76.5% # of Vol. Transac (Rp Tn) 15,7 16,5 Num of Debit Card
22,6 27,7 22,6%
# of Item Transaction 15.985 14.734 (Mn)
Pension Fund 112 131 150 76 100 31.5%
BG fee supported by oil & gas and infrastructure High growth driven by increasing number of
Custody 45 65 84 42 51 23.2% debit card and fee adjustment
loan growth
Syndicated Loan ATM
189
FBI Growth Driver
514 614
107
❑ Relationship with SOEs leads to significant growth of fee based income
from trade finance and bank guarantee 1H 2018 1H 2019 1H 2018 1H 2019
❑ Enhanced digital banking service drives growth of billpayment & PPOB Jun-18 Jun-19 Growth Jun-18 Jun-19 Growth
# of Transaction
fee Facility Arranged (Rp Bn) 88.252 79.229 -10,2% (Mn)
170 233 37,2%

❑ Productivity of 2,232 outlets and 124.216 branchless banking available Fee growth was driven by an increase of syndicated
Boosting fee from growing number of transactions
across Indonesia loan being arranged since BNI #1 in term of
bookrunner and MLA

15
 Operating Expense [Consolidated]
OPEX Composition [Rp Bn] Cost to Income Ratio – Bank Only [%]
Growth
OPEX 2016 2017 2018 1H18 1H19
YOY
HR Expense 8,834 9,277 9,519 4,869 5,113 5.0% 44,0 43,9
GA Expense 5,129 5,858 6,607 2,899 3,095 6.8%
43,4
42,1 42,5
IT Expense 1,062 1,052 1,153 542 547 1.0%
Regulatory Exp 990 1,179 1,323 681 779 14.4%
Deprec. & Amort. 960 1,043 1,193 553 684 23.5%
Others 1,829 1,986 1,989 991 1,050 6.0% 2016 2017 1H18 2018 1H19
Total 18,806 20,396 21,783 10,535 11,268 7.0%

OPEX GROWTH [Rp Bn] GA Expense Composition

HR Expenses General &
IT Expense Administrative R&D
547 Expense Promotion 15,8% 1,2%
5.113
4.869 2.899 3.095
542
Office Traveling
2,2%

Rent Office
1H18 1H'19 1H18 1H19 1H18 1H19 19,1% Utilities
Growth in IT expense is to Slowing HR expense growth 51,5%
Promotion expense (5,0% YoY)
support various digital due to implementation of to support business was one of Office Equip. & Supplies
banking initiatives and also to HR function strategy to Repair & Maintenance
the main driver on increasing 0,5%
grow numbers of business create efficiency and 9,5%
GA expense.
transactions. optimization in HR cost
structure as well as increase
productivity.

16
 Asset & Liability Management
Liquidity Coverage Ratio Net Stable Funding Ratio
HQLA Cash Outflow ASF (Available Stable Funding)
Cash Inflow LCR RSF (Required Stable Funding) (Rp Tn)
(Rp Tn) Liquidity is also a focal point
NSFR (Net Stable Funding Ratio)
126,77 124,06
that needs to be well managed 555,87 567,81
122,68 122,2
112,86 in the current volatile 524,01
108,67 505,18
102,74 103,67 99,27 475,77
97,42 environment. Currently the
239% liquidity in BNI can cover both 413,94 422,73
211% 213% 386,37
short term obligation as can be 361,78
51,38 192% 195% 343,07
37,47
45,38
45,14 seen from LCR which stands at
41,51
195% and also longer term 140% 134% 134%
139% 136%
obligation as reflected by NSFR
that is at 134% level.
Mar-18 Jun-18 Sep-18 Des-18 Jun-19 Mar-18 Jun-18 Sep-18 Des-18 Jun-19

LDR of IDR & FX IDR FX

94,7%
92,6% 92,3%
91,0% 90,0% 89,8% 89,6%
89,2% 88,0%
87,4%
84,8% 86,6% 88,3%
77,0%

2016 2017 Q1 2018 1H18 Q318 2018 1H19

In the tightening liquidity situation, loan growth higher

than deposit impacted our LDR to 92.3%.

17
Business & Consumer Banking
 Corporate Business
Sectors *) Growth Compo- NPL NPL Business Highlight
2016 2017 2018 1H18 1H19
(Rp Bn) Amount YoY sition 1H18 1H19 ❑ Growth in Corporate segment is in line with our
Manufacture 54,034 55,941 69,350 59,025 72,763 13,737 23.3% 25.5% 6.0% 2.5% guideline and focus on financing priority sectors such
as Manufacture, Trading, Restaurant & Hotel and
Business Services
Trading, Resto & Hotel 9,207 16,490 26,591 21,258 34,921 13,663 64.3% 12.5% 0.2% 1.0%
❑ Top expansion in private came from pulp
Business Services 22,709 27,842 35,106 22,681 33,826 11,146 49.1% 11.8% 0.0% 1.8% manufacturing and business services, while in SOE
Electricity, Gas and contributed by logistic trading.
27,387 25,232 22,328 28,247 35,632 7,385 26.1% 12.5% 0.0% 0.0% ❑ Demand from SOE loan in 2019 expected to be
Water
contributed by infrastructure loan; with biggest
Construction 8,907 16,869 22,200 18,301 26,169 7,868 43.0% 8.8% 0.0% 0.0%
pipeline from toll road & construction and electricity.
Agriculture 35,706 38,840 38,189 35,270 41,767 6,497 18.4% 14.7% 0.0% 0.0% ❑ More loan demand for Private sector mostly comes
Social Services 2,805 5,496 7,623 5,426 7,521 2,095 38.6% 2.6% 0.0% 0.2% from manufacturing sector (palm oil refinery, pulp &
Transport, Warehouse paper), electricity sector (IPP) and selected mining
17,648 17,439 20,479 18,955 19,333 378 2.0% 7.0% 0.0% 1.0%
and Communications sectors (coal related to IPP).
Others 4,434 5,114 5,130 5,111 4,044 -1,067 -20.9% 1.4% 0.0% 0.0%
Mining 12,472 9,496 15,704 11,095 9,362 -1,733 -15.6% 3.3% 0.4% 0.5%
Total Corporate 195,309 218,758 262,699 225,369 285,338 59,969 26.6% 100.0% 1.6% 1.1%
*) including Overseas
Credit Risk Management :
Construction Manufacture Agriculture
41,8 ❑ All Infrastructure projects financing until 1Q19 have
26,2
2,0% 69,0 72,8 been done under syndicated scheme.
22,2 38,8
55,9 59,06,1% 38,1
16,8
18,3 54,0 ❑ Prudent business development focusing on low risk
4,5% 35,7 portfolio; SOEs and top rank private corporates.
35,2
3,5%
8,9 3,0%
2,5% ❑ Strengthen industry specialist implementation on
loan assessment process and portfolio
0,0% 0,0% 0,0% 0,0% 0,2% management.
0,0% 0,0% 0,0% 0,0%
2016 2017 1H18 2018 1H19 2016 2017 1H18 2018 1H19 2016 2017 1H18 2018 1H19
Outstanding (Rp Tn) NPL Outstanding (Rp Tn) NPL Outstanding (Rp Tn) NPL

19
 Corporate Business
6 Sectors of Infrastructure Priority Projects as Toll Road Projects
1 3 BNI Infrastructure Loan [Rp Billion] 5
Financing Opportunity
LENGTH PERIOD
TRANS JAVA TOLL ROAD SECTION
86,291 99,512 110,604 107,962 113,322 (KM) (YEARS)
1 Jasamarga Solo Ngawi Solo-Ngawi 90,10 15
Telco 2 Jasamarga Ngawi Kertosono Kediri Ngawi-Kertosono 87,02 15
11% 11% 11% 12% 11% 3 Transmarga Jateng Semarang-Solo 72,64 12
4 Waskita Bumi Wira Krian-Lgnd-Bndr-Mnyr 63,29 15
17% 15% 16% 16% Transport
19% 5 Jasamarga Jalanlayang Cikampek Jakarta-Cikampek Elevated 61,40 15
6 Pejagan Pemalang Toll Road Pejagan-Pemalang 57,50 12
7 Jasamarga Gempol Pasuruan Gempol-Pasuruan 49,51 15
27% 34% 30% Toll Road & 8 Pemalang Batang Toll Road Pemalang-Batang 39,20 12
30% 34%
Road Transport Electricity Energy Telco Water Cons 9 Jasamarga Pandaan Malang Pandaan-Malang 37,62 15
15 Project 11 Project 6 Project 8 Project 1 Project 5 Project
10 Jasamarga Surabaya Mojokerto Surabaya-Mojokerto 36,27 11
USD34 B USD20 B USD44 B USD86 B USD0.4 B USD0.4 B
14% Oil & Gas 11 Semesta Marga Raya Kanci-Pejagan 35,00 12
13% 12% 6%
Source: Committee for Acceleration of Priority Infrastructure 17% 12 Cibitung Tj Priokport Toll Road JORR 2 34,02 15
Delivery (KPPIP), 2H-2018 13 Cimanggis Cibitung Toll Road JORR 2 26,28 15
33% 14 Jasamarga Kunciran Cengkareng Kunciran-Cengkareng 14,19 15
30% 29% 30%
23% Power 15 Kresna Kusuma Dyandra Marga Bekasi-Cawang-Kmpng Mly 11,47 15
Plant 16 Marga Trans Nusantara Serpong-Kunciran 11,19 15
2 2019 Main Pipeline NON - TRANS JAVA TOLL ROAD
2016 2017 2018 1H18 1H19 1 Hutama Karya Terbanggi Besar-Kya 189,20 15
2 Hutama Karya Bakaheuni-Trbgi Besar 140,94 15
SOE LOAN 4 Agriculture Sector 3 Jasamarga Kualanamu Tol Mdn-Kualanamu-Tbg Tgi 61,70 15
INFRASTRUCTURE 4 Jasamarga Manado Bitung Manado-Bitung 39,90 15
5 Transbumi Serbaraja Serpong - Balaraja 39,30 15
Oil, Gas & Mining SOE Oil & Gas Outstanding (IDR Bn) Coverage of
No Group 6 JTD Jaya Pratama Semanan - Plgb 31,16 15
Electricity Project under 35.000 MW programs 1H18 1H19 YoY Collateral 7 Jasamarga Bali Tol Bali 9,70 15
1 PTPN 6.342 6.555 3,4% 125% All of the toll road projects financing are under syndicated schemes
Toll Road & Trans Java Toll Road & its 2 SLM 3.181 4.480 40,8% 154%
3 BEST 2.871 4.142 44,3% 113% Average daily Traffic
Construction Supporting toll road i.e., Cibitung - 6 No Toll Section IRR Notes
4 GAMA 1.496 2.945 96,9% 117% Target Real %
Cimanggis, Cibitung Tanjung Priok,
5 BWPT 2.891 2.871 -0,7% 166% 1 Pemalang - Batang 17.201 28.327 165% 15,06% Full Operated Dec'18
and Jasa Marga Cikampek Eleveted
6 TLDG 3.095 2.852 -7,9% 146% 2 Semarang - Solo 35.300 47.500 135% 14,52% Full Operated Dec'18
approximately amounted IDR 2,7Tn.
7 KORD 2.756 2.818 2,2% 120% 3 Bakauheni - Terbanggi 12.024 16.200 135% 13,36% Full Operated Mar'19
Telecommunication Fiber Optic Project 8 CBIN - 1.498 100,0% 133% 4 Ngawi - Kertosono 12.489 14.045 112% 15,10% Full Operated Dec'18
NON INFRASTRUCTURE 9 GZCO 1.543 1.466 -5,0% 122% 5 Kanci - Pejagan 23.052 24.450 106% 16,93% Full Operated
Manufacture Cement and Pharmacy 10 PFAS 544 974 79,0% 167% 6 Pejagan - Pemalang 19.215 20.381 106% 15,88% Full Operated Dec'18
7 Solo - Ngawi 16.400 14.955 91% 14,80% Full Operated Dec'18
Trading Logistic supply
Average of Collateral Coverage 138% 8 Mdn-Kualanamu-Teb Tg 13.900 12.131 87% 14,24% Full Operated Mar'19
PRIVATE LOAN 9 Surabaya - Mojokerto 39.815 29.331 74% 15,55% Full Operated
Manufacture Refinery, smelter and Pulp & Tissue ▪ Expansion in Agriculture sector was selective given 10 Gempol-Pasuruan 18.525 12.218 66% 16,00% Full Operated Dec'18
Project to the top players in the sector. 11 Bali 71.518 42.159 59% 14,19% Full Operated
Agriculture Palm oil plantation ▪ For risk mitigation purpose, minimum requirement AVERAGE 14,52%
Electricity IPP & Power Plant of 100% collateral coverage applied.
Real Daily Average Traffic was inline with the assumption used in feasibility study

20
 Medium Business
Sectors Growth Compo- NPL Business Highlight
2016 2017 2018 1H18 1H19
(Rp Bn) Amount YOY sition 1H18 1H19
❑ Medium segment growth was driven by growth on priority
Manufacture 18,655 20,285 19,585 19,242 20,433 1,191 6.2% 26.8% 1.7% 4.1% sectors i.e. manufacturing, social services and business services
Electronic, Automotive, Steel & that focus on local competitive advantage (e.g. in Bali mostly in
Base Metal
6,514 7,764 7,741 7,757 8,146 389 5.0% 10.7% 1.6% 5.6% tourism related industry, and Sumatera in Commodity-based
industry, etc.).
Food & Beverages Industry 2,379 2,852 3,341 3,070 3,779 710 23.1% 5.0% 0.0% 1.0%
❑ Focus in major business cities with 65% of loan portfolio is in
Non metal mining processing Java.
industry
1,139 1,103 1,196 1,168 1,554 386 33.1% 2.0% 0.0% 4.3%
❑ Supply Chain Financing (SCF) is linked to High Quality Corporate
Trading, Restaurant & debtors. Top 5 SCF anchors includes Pertamina, PLN, Karya
19,316 23,220 23,497 22,783 23,158 375 1.6% 30.4% 4.3% 5.1%
Hotel SOE’s, Pembangunan Perumahan, Semen Indonesia Group.
Resto & Hotel 5,918 8,164 7,937 7,847 7,900 52 0.7% 10.4% 3.6% 1.7%
Distribution 6,595 7,260 7,408 7,168 8,024 856 11.9% 10.5% 5.7% 4.6% 13.172
❑ In 1H19, BNI supply 11.963
Retailer 4,177 4,472 4,554 4,600 4,015 -585 -12.7% 5.3% 4.6% 5.5% 8.475 9.641 10.290
chain financing grew
Agriculture 2,238 3,173 3,622 3,508 3,971 463 13.2% 5.2% 1.8% 1.4% 28.0% YOY.
Business Services 4,803 5,870 7,082 6,132 7,028 896 14.6% 9.2% 3.9% 2.4%
2016 2017 2018 1H 20181H1H19
1H18 2019
Others – Real Estate related 2,546 3,431 3,317 3,407 2,463 -945 -27.7% 3.2% 2.9% 0.0%
Rental services – heavy Credit Risk Management
equipment, transportation,
machinery,
2,177 2,370 3,513 2,642 4,443 1,801 68.2% 5.8% 5.3% 3.7% ❑ Focus on asset-based lending reflected in better collateral
building ratio and higher growth in extensive fixed asset sector.
❑ Expanding only to debtors focused on their core business & its
Transport, Warehouse
5,538 6,307 7,940 7,044 7,562 517 7.3% 9.9% 0.6% 2.0% local competitive advantage with sound financial ratio.
and Communications
❑ Improving business process and loan quality with Mckinsey as
Construction 6,095 6,977 7,787 7,358 8,025 667 9.1% 10.5% 2.9% 3.0% consultant.
❑ Applying four eyes principle for credit approval.
Electricity, Gas and Debtor’s Financial Ratio
653 623 456 584 466 -119 -20.3% 0.6% 0.0% 8.3%
Water Rasio Dec-16 Dec-17 Dec-18 Jun-19
Mining 1,680 1,947 2,007 2,009 2,150 141 7.0% 2.8% 0.0% 4.0% EBITDA/Interest (>200%) 78,4% 78,3% 76,05% 83,38%
Collateral (>100%) 97,0% 97,7% 97,53% 97,89%
Social Services 2,352 1,857 2,755 2,127 3,342 1,215 57.1% 4.4% 1.9% 1.1%
Current Ratio (> 1) 90,3% 90,5% 86,43% 92,45%
Total Medium 61,330 70,261 74,731 70,787 76,134 5,347 7.6% 100.0% 2.7% 3.7% DER (<2) 82,1% 86,3% 84,28% 84,29%

21
 Small Business
Sectors Growth Compo- NPL NPL Business Highlight
2016 2017 2018 1H18 1H19
(Rp Bn) sition 1H18 1H19
Amount YOY
❑ KUR and BCM were main contributors on small business’s
Manufacture 4,565 5,388 7,109 5,690 7,853 2,163 38.0% 10.8% 2,7% 1.9% loan growth.
❑ Small segment’s growth is supported by Trading, Resto &
Trading, Resto & Hotel 31,698 34,697 37,897 37,095 41,803 4,708 12.7% 57.3% 2,8% 2.3% Hotel, Agriculture, and Manufacture grew the most in
terms of numbers.
Agriculture 2,880 4,227 6,541 4,950 7,800 2,850 57.6% 10.7% 2,0% 1.1% ❑ Optimizing supply chain financing from corporate
5,380 6,383 1,003 18.6% 8.7% 3,6% 1.6% partners supported loan growth.
Business Services 5,288 5,369 6,131
❑ Expansion in agriculture sector was corporate-driven
using umbrella agreement with prominent corporate as
Transport, Warehouse and 1,620 1,986 366 22.6% 2.7% 3,2% 2.0%
1,459 1,583 1,848 off-taker
Communications

Construction 2,281 2,347 2,670 2,276 2,909 633 27.8% 4.0% 2,3% 3.0%
Credit Risk Management
Electricity, Gas and Water 58 70 100 86 115 29 33.7% 0.2% 0,3% 0.5%

Mining 201 227 313 244 363 119 48.8% 0.5% 2,1% 2.8% ❑ Credit Insurance coverage for small segment
❑ Limiting coverage area of expansion to maximum radius
Social Services 2,255 2,571 3,454 2,698 3,725 1,027 38.1% 5.1% 2,7% 1.8% of 10 km to enhance credit monitoring
❑ Asset-based collateral for BWU & BCM with average
Total Small 50,684 56,479 66,063 60,039 72,937 12,898 21.5% 100% 2,8% 2.1% collateral coverage ratio of 110%
❑ KUR is covered by insurance and subsidized by
Portofolio by Product Number of Outlets government
❑ Increased number of customer base to reduce the ticket
1H18 1H19 Growth size, thus spreading the risk
Product 2016 2018 1H19
(Rp Bn) Outstand NPL Outstand NPL Outstand
1H18 1H19
BCM 35,900 3.5% 42,564 2.6% 18,6% Type ▪ 24 SKCs ▪ 25 SKCs ▪ 25 SKCs
of ▪ 145 ▪ 149 ▪ 149 Outstanding (Rp Bn) 60,039 72,937
BWU 4,000 3.7% 5,898 3.0% 47,5%
outlet Branches Branches Branches Number of Customer 162,444 252,491
KKLK 1,794 2.5% 1,231 0.1% -31.4% ▪ 28 Sub- ▪ 92 Sub- ▪ 115 Sub- Ticket Size (Rp Mn) 369 289
KUR 18,344 1.2% 23,244 0.9% 26,7% Branches Branches Branches
Total 60,039 2.8% 72,937 2.1% 21.5% Total 197 outlets 266 outlets 289 outlets

22
 Consumer Business
Product Growth Compo- NPL NPL Business Highlight
2016 2017 2018 1H18 1H19
(Rp Bn) Amount YoY sition 1H18 1H19 ❑ Strategy on payroll loan growth came from optimizing opportunity
from cross customer database of Corporate segment (government
Mortgage 36,396 37,066 40,753 38,783 42,247 3,464 8.9% 51.7% 3.4% 2.7% institutions and SOE companies).
❑ Enhance digital marketing (BNI DigiLoan)
❑ Captive market related with corporate/institutional clients gives
Payroll Loan 12,026 17,687 23,744 21,740 24,517 2,777 12.8% 30.0% 1.1% 0.8%
more opportunity for credit card business growth
❑ Mortgage expansion strategy 2019:
Credit Card 10,549 11,635 12,558 12,142 12,632 490 4.0% 15.5% 2.7% 2.8%
❖ Focus on fixed income customers from selected institution and
selected developer
Others 6,097 5,057 2,680 2,820 2,317 (503) -17.8% 2.8% 2.3% 0.1% ❖ Expand marketing target to millenial community

Total 65,068 71,445 79,735 75,485 81,713 6,229 8.3% 100.0% 2.6% 2.1%

Payroll Loan Account VS Payroll Loan Debtors Credit Risk Management

Payroll Pipeline [Th] Composition 1H19
234 247
Government ❑ Mortgage expansion was very selectively given to fixed income
210 28,29%
185 Related customers, to property from selected partnering developers and
also focus on top up program for existing debtors and Emerald
SOE 32,57% segmen.
130
Private ❑ Mortgage expansion also focus on existing non-mortgage
76 23,76%
Companies debtors with good track record and performance by providing a
take over program for post fixed-capped rate period loan in
770 1.894 2.302 2.486 2.724 3.016 Universities 3,99%
other banks.
2015 2016 2017 1H18 2018 1H19 Others 11,39% ❑ Payroll loan penetration focuses on employees of government
institutions and SOE that have low turnover rate, and upper-
Pipeline Account middle level employees.

.. Payroll loan as main driver of growth focused on

selected institutions based on the captive market ..

23
 Consumer Business [Bank only]
Fix Income Account Mortgage vs Saving (Th) Digital Banking Ecosystem Enhancement

1
Consumer & Retail
9.697
8.968 Unbanked, Millenials & Gen X
7.902 8.299 Millennials & Gen X Individual
Employees of Individual Member, merchants
6.824
corporate client

138,6 139,5 140,3 144,4 2 Corporate & 3

135,0
Middle Community
Institution Smart City

2016 2017 2018 1H18 1H19 ❑ Optimizing supply chain financing opportunities
eCommerce
❑ Develop B2B platform market place Education
Saving Mortgage ❑ Synergize B2C ecosystem in retail segment
❑ Deepen penetration in online transaction and e-commerce
cooperation

Acquiring Business Credit Card Business Performance Debit & Credit Cards Performance

1.852
12 11 12 1.813
200.167 11
199.838 10 1.782
167.329
172.151 1.738
127.618
1.733 34.970 38.924
32.617 18.815 19.911
15.825 19.008 23.126
11.087 13.358

51.317 64.423 76.034 35.560 40.870 1.733 1.738 1.813 1.782 1.852 13.109 18.488 25.848 22.681 27.764

2016 2017 2018 1H18 1H19 2016 2017 2018 1H18 1H19 2016 2017 2018 1H18 1H19
Credit Card Accts (000) Debit Card Accts (000)
Sales Vol (Rp B) # of EDC # Credit Card (Th) ENR (Rp B) DC Trx Vol (Rp B) CC Trx Vol (Rp B)

24
 E-Banking [Bank only]
2017 2018 1H18 1H19 Growth 2017 2018 1H18 1H19 Growth
#Us er 1.368,8 2.983 2.022 3.785 Th 87,2% #Trx 962 1.289 609 713 Mn 17,0%
Mobile #Trx ATM
32,4 97 35 90 Mn 154,9% IDR 600 668 319 346 Tn 8,5%
Banking IDR 49,8 133 58 117 T 102,5%
2017 2018 1H18 1H19 Growth
2017 2018 1H18 1H19 Growth #Ca rd 2.898 4.545 3.414 5.018 Th 47,0%
#Us er 8.497 9.820 9.079 10.487 Th 15,5% #Trx
Tapcash 23 51 27 29 Mn 6,8%
SMS #Trx 389 504 227 308 Mn 35,3% IDR 363 807 406 526 Bn 29,5%
Banking IDR 40 51 21 47 Tn 119,8%

2017 2018 1H18 1H19 Growth

#Us er 1.781 1.894 1.807 1.946 Th 7,7%
Internet #Trx 25 28 13 14 Mn 7,5%
IDR 94 91 44 44 Tn 1,8%
2017 2018 1H18 1H19 Growth
#Agen 69.589 111.836 93.765 124.216 Agen 32,5%
#Trx 34 79 32 54 Mn 71,5%
IDR 12 95 36 72 Tn 102,6%
AGEN
46 Pandai
4.843 9.175 8.047 9.418 Th 17,0%
Acc.
Pandai
562 636 605 704 Bn 16,4%
Acc. Fund
Agen Fund 593 658 762 1.081 Bn 41,9%
2017 2018 1H18 1H19 Growth
#Trx 56 64 31 32 Mn 4,3%
Acquiring*
IDR 64 76 36 41 Tn 14,9%
* EDC + e-Commerce

25
 International Business
Growth NPL Business Highlight
Sectors *) Compo-
2016 2017 2018 1H18 1H19
(Rp Bn) Amount YoY sition 1H18 1H19 ❑ The biggest portfolio of overseas loan focus on priority
sectors such as manufacture, agriculture, and social
Manufacture 7.067 11.867 17.223 9.183 16.491 7.308 79,6% 37,0% 1,1% 0,6%
services (Government of Indonesia).
Agriculture 861 1.274 1.252 5.605 8.090 2.486 44,4% 18,2% - -
❑ Top expansion came from manufacture, electricity, gas
Social Services 366 823 1.119 3.582 4.551 969 27,0% 10,2% - - and water, and agriculture sector (palm oil industry).
Transport, ❑ International business loan focuses on export oriented
Warehouse and 1.095 1.031 1.124 2.273 3.036 764 33,6% 6,8% - -
Indonesia related companies and its supply chain.
Communications
❑ Overseas Branches as a channel of competitive source
Construction 193 209 238 57 122 66 116,0% 0,3% - -
of funds.
Electricity, Gas and
253 - - 75 2.401 2.327 3.116,2% 5,4% - -
Water
Trading, Resto &
1.106 4.552 4.887 5.327 4.327 -1.000 -18,8% 9,7% 0,8% 1,0%
Hotel
Business Services 576 1.550 1.632 2.153 2.272 119 5,5% 5,1% 2,3% 2,2%
Mining 3.981 4.314 7.314 6.184 3.118 -3.067 -49,6% 7,0% - -
Others 5740 5.113 5.130 111 106 -5 -4,6% 0,2% - -
Total Overseas Loan 21.237 30.734 39.918 34.548 44.514 9.966 28,8% 100,0% 0,5% 0,4%

Fee Income Contribution Funding from International Business (Rp Bn) Risk Management :
BNI excl INT (Rp Tn) INT (Rp Tn) CA from Export IW Saving Acc ❑ Achieve sustainable growth by focusing on top rank
% INT to BNI Japan Desk CASA Indonesian related companies.

17,756 ❑ Focusing on sectors where we have in-depth

21,1%
16,6% 17,2% understanding and strengthens our industry specialist
12,6% 14,0% implementation.
5.408 8,566
8,01 4,599 6,721 5.848 ❑ Prudent loan assessment process and portfolio
7,14 8,00 4.188 3,679 4,077
2,15 1,97 2.352 2,400 3,088
management.
1,03 1,30 1,59 1,514 1,814
2016 2017 2018 1H18 1H19 2018 1H18 1H19
Fee income from International Business Funding from International Business contributed
contributed 21,1% to total fee income in 1H2019 2.1% to total deposit in 1H2019

26
 BNI Multifinance 1.551

Subsidiaries 1.129
1.323

908
Growth
Rp Bn 2016 2017 2018 1H18 1H19
YOY
517 275 316 335 351
Total EAT Subs 481 720 656 252 558 121.4% 268
Total Fee Subs 472 553 609 304 277 -8.8% 7,4 26,9 12,3 32,1 20,1
Total Dividend Subs 31 35 81 14 35 150.0%
2016 2017 1H 2018 2018 1H 2019
EAT + Fee+ Div. Subs 984 1.308 1.346 570 870 52.6%
Subs Contribution 8,63% 9,50% 8,86% 7,64% 11,27% BNI Sekuritas BNI Life
17.710
17.288
• Subsidiaries contribution in 1H 2019 amounted to IDR 870,08B or 1.192 953
16.304 15.766
1.122
increased 52,63% YoY (EAT IDR 558,16B; FBI IDR 276,99B; and dividen 786
935 13.069
IDR 34,94B) or 11,27% from BNI’s profit of IDR 7,72T.
• BNI Multifinance’s Asset 1H 2019 reached IDR 1,55T or 37,34% YoY along 408 396 403 414 428
5.352 5.209 5,210 5.489
with increased financing of IDR 1,37T or 36,85% YoY. EAT 1H 2019 grew 4,823
by 63,65% YoY. 5,1 7,1 6,8 13,7 183,9 374,9 185,0 200,7
20,6
• BNI Sekuritas’ brokerage transaction increased 72,59% YoY from ±IDR -11,7
30,99T for 1H 2018 to±IDR 53,49T for 1H 2019 2016 2017 1H 2018 2018 1H 2019 2016 2017 1H 2018 2018 1H 2019
• BNI Life managed the EAT of IDR 200,75B or increased 874,44% YoY.
BNI Syariah BNI Asset Management
Supported by Gross Written Premium’s growth of BNI Life 1H 2019 as of
11,18% YoY to IDR 2,66T from 1H 2018 of IDR 2,39T. 134 133
41.049 42.494 122
• BNI Syariah business in 1H 2019 shows the positive growth. Supported 37.773 137
34.827
by financing growth of 1H 2019 amounted IDR 31,74T or 26,34% YoY and 93
28.314 108 116
followed by third party funds’ growth to IDR 36,58T or 11,66% YoY. The 97
106
third party funds’ growth was driven by Wadiah Saving Account which 3.812 3.998 4.242
4,559
74
grew by 43,30% YoY. In 1H 2019, BNI Syariah recorded EAT of IDR 2.486
22,4
315,27B or 55,32% YoY. 9,2 11,5
277,4 306,7 202,9 416,1 315,3 7,2 8,3
• During 2019 AUM BNI Asset Management grew IDR 2,7T or 16,79% YtD.
2016 2017 1H 2018 2018 1H 2019 2016 2017 1H 2018 2018 1H 2019

Asset Equity Laba (in Rp Billion)

27
About BNI
 Board of Directors
Achmad Baiquni Herry Sidharta
President Director (CEO) Vice President Director
- Finance Director, BRI (2010 -2015) - MD - Corporate Business, BNI (2015-2017)
- Director of Small, Medium, and Sharia Business, BNI (2008- - Finance Director, Jamkrindo (2011 – 2013)
2010) Education:
Education: - Bachelor’s degree in Financial Management from
- Bachelor’s degree in Economics from Universitas Padjajaran Universitas Pancasila Jakarta
- Master’s degree in Business Management from Asian - Master of Business Administration from Rensselear
Institute of Management Philippines Polytechnic Institute, New York, USA

Anggoro Eko Cahyo Catur Budi Harto

Putrama Wahju Setyawan MD – MSME (Micro, Small, Medium
MD – Finance [CFO]
- MD - Consumer Business, BNI (2015-2018) MD – Corporate Banking Enterprise) & Network
- Human Capital Division Head, BNI (2012-2015) - MD - Middle Business, BNI (2016-2018)
- MD Commercial Funding, Digital Banking &
Education: - Medium Business SEVP, BNI (2016)
Distribution, BTN (2016-2017)
- Bachelor’s degree in Engineering and Industrial Education:
- SEVP, BRI (2015-2016)
Management from Institut Teknologi Indonesia - Bachelor’s degree in Forestry from Gadjah
Education:
- Master’s degree in Agribusiness Management Mada University
- Bachelor’s degree in Agronomi from IPB University
from IPB University - Master’s degree in Management Accounting
- Master’s degree in Management from Sekolah
from Gadjah Mada University
Tinggi Manajemen Prasetya Mulya
Rico Rizal Budidarmo
MD – Treasury & International Banking Bob Tyasika Ananta
Adi Sulistyowati
- MD - Finance & Credit Risk, BNI (2015-2018) MD – Risk Management
- MD Risk Management, BTN (2014-2015) MD – Institutional Relation - MD – Planning & Banking Operation, BNI (2015-
- EVP of Treasury, Risk Management, IT, BRI - Network Management Division Head, 2018)
Education: BNI (2012-2015) - Strategic Planning Division Head, BNI (2011-
- Bachelor’s Degree in Echonomics Management - Jakarta Senayan Regional Head, BNI 2015)
from Gadjah Mada University (2010-2012) Education:
- MBA in Finance and MIS from Stern, New York Education: - Bachelor’s degree in Accounting from Gadjah
University - Bachelor’s degree in Management from Mada University
- Master of Law from Gadjah Mada University Universitas Krisnadwipayana - Master’s Degree in Finance from University of
- Doctorate in Artificial Intelligence/Decision Support Oregon
System from IPB University

Endang Hidayatullah Tambok P. S. Simanjuntak

Dadang Setiabudi MD – Retail Banking
MD – Human Capital & Compliance
MD – IT & Operation - Legal Division Head, BNI (2015-2018) - MD – Finance, PT. Krakatau Steel (2016-2018)
- TI & Digital Banking SEVP, BNI (2016-2018) - Legal Division Deputy Head, BNI (2012-2015) - Digital Banking SEVP, BNI (2016)
- MD - TI, BPJS Kesehatan (2014-2016) Education: Education:
Education: - Bachelor’s degree in Civil Law from - Bachelor’s degree in Soil Science from IPB
- Bachelor’s degree in Accounting from Universitas Universitas Padjajaran University
Padjajaran - Master’s Degree in Marketing from STIE - Master’s degree in Accounting Management
- Master’s degree in Agribusiness from IPB Nusantara from University of Indonesia
University

29
 Board of Commissioners
Ari Kuncoro
President Commissioner/Independent Commissioner Hambra
- Dean of Economics and Business Faculty, University of Indonesia (2013 – Vice President Commissioner*
now) - Commissioner of PT AGN (2018 – now)
- Board of Director, East Asian Economist Association (2013 – now) - Commissioner of PT Semen Indonesia (Persero) (2016 – 2017)
- Members of communication of financial stability research forum, Bank Education:
Indonesia (2007 – now) - Bachelor’s degree of Law from Universitas Pattimura Ambon
Education: - Master’s degree of Business from Gadjah Mada University
- Bachelor’s degree in Economics from University of Indonesia
- Master of Arts, Development Economics from University of Minnesota
- PhD in Economics from Brown University
Pataniari Siahaan
Revrisond Baswir Independent Commissioner
Independent Commissioner - MPR-RI Research Institute Member (2015–2019)
- Lecturer of Economics & Business Faculty, Gadjah Mada University (1983-now) - Socialization Chairman MPR RI Government 1945 Laws (2005–2009)
- Head of Center for Economic Democracy of Gadjah Mada University (2013-now) Education:
- Public Policy Committee Member of the Ministry of SOE (2015-now) - Bachelor’s degree of Civil Engineering from Universitas Trisakti
Education: - Bachelor’s degree of Civil Transportation Engineering from Universitas
- Bachelor’s degree in Accounting from Gajdah Mada University Krisnadwiyana
- Master of Business Administration from Western Michigan University, USA - Master’ of Law from Universitas Trisakti
- Doctorate in Economics from Universitas Airlangga, Surabaya - Doctorate in Law from Universitas Trisakti

Ahmad Fikri Assegaf Sigit Widyawan

Independent Commissioner Independent Commissioner
- Founder and Co-Managing Partner of Assegaf Hamzah & Partners (2001-now) - Independent Commissioner of PT Jasamarga (Persero) Tbk. (2015 – now)
- Vice Chairman of Regional Management Council Rajah Tann Asia (currently) - Director of PT Roda Pembangunan Jaya (2003-2015)
Education: Education:
- Bachelor’s degree in Law from University of Indonesia - Bachelor’s degree in Economic from Universitas Negeri Sebelas Maret
- Master of Law from Cornell Law School - Master’s degree in Accounting from University of Indonesia

Joni Swastanto Marwanto Harjowiryono Ratih Nurdiati

Commissioner Commissioner Commissioner*
- Deputy Commissioner Strategic - Vice secretary to the cabinet (2017 –
- Director General of Treasury, Ministry of
Management IIB, OJK (2015 – 2016) present)
Finance (2013 -now)
- Director of Bank 3 Supervision Department, - Deputy cabinet secretary for maritime
- Director General of Financial Balance ,
BI (2008) (2015 – 2017)
Ministry of Finance (2011– 2013)
Education: Education:
Education:
- Bachelor’s degree in Economics from - Bachelor’s degree of Law from
- Bachelor’s degree in Economics from Gadjah
Gadjah Mada University Universitas Jember
Mada University
- Master’s degree in Economics from - Master of Law from Canterbury
- Master’s degree in Economics from
Colorado State University, USA University
Vanderbilt University
- PhD degree in economics from University of - Doctorate in Economics from Gadjah Mada
Indonesia University

30 *Waiting for approval from OJK

 Network & Distribution
BNI’s multiple touch points for individual and corporate customers

Branchless Middle loan Small loan Small loan Consumer loan

ATM Outlets Employee
Mobile Banking center (SKM) center (SKC) unit (UKC) center (LNC)
1H 2019 (18.405) 1H 2019 (2.372) Q1 2019 (26,798)
banking 1H 2019 (124.216) 1H 2019 (33) 1H 2019 (25) 1H 2019 (44) 1H 2019 (12)
2018 (27,224)
1Q 2019 (18.335) 1Q 2019 (2.247)
Call Center 1Q 2019 (117.415) 1Q 2019 (33) 1Q 2019 (25) 1Q 2019 (44) 1Q 2019 (12)
2018 (18.311) 2018 (2.256) 2017 (27,803)
2018 (111.836) 2018 (33) 2018 (25) 2018 (44) 2018 (12)

BNI has also entered into

key arrangements with
prominent companies for
Overseas offices
Singapore (Nov 1955) payment channeling,
Hong Kong (Apr 1963) financing, loan distribution,
Tokyo (Sep 1969) & Osaka (Dec 2012) and network/outlet
New York (Apr 1983)
London (Apr 1984) development
Yangon (Dec 2015)
Seoul (Feb 2016)

Corporate/SME customer
Individual customer highlights highlights

 46.5 million funding accounts  792,088 corporate deposit accounts

 5,771 corporate loan accounts
 1.9 million credit cards
 2,453 medium loan accounts
 184.152 mortgage customers
 239,343 small loan accounts

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

31
 BNI Shares & Ratings
BBNI shares performance BBNI’s closed price June 28, 2019 (Rp 9,200) was 30.50% higher
than June 29, 2018 (Rp 7,050)

Long Term Foreign Currency BBB-/Stable ❑ Issued shares 18,648,656,458 shares

Long Term Local Currency BBB-/Stable
Short Term Foreign Currency F3 ❑ Price [June 28, 2019] : Rp 9,200 [30.50% YoY] [1.38% YtD]
Fitch Support Rating Floor BBB- ❑ Market Capitalization : Rp 173 trillion [+/- US$ 12.3 billion]
Rating Support Rating 2
Viability Rating bb+
National Long Term Rating AA+/Stable
National Short Term Rating F1+ BBNI Public Ownerships [40.00%]
Senior Unsecured Bond BBB-
Shareholder Shares Ownership
Outlook Stable
Issuer Credit Rating BBB-/Stable/A-3 Foreign Institutions 4,622,478,934 62.0%
SACP bbb-
Standard Domestic Institutions 1,560,801,216 20.9%
Anchor Bb+
& Poor's
Business Position Strong (+1) Private Shareholder/ Investors 204,661,440 2.7%
Capital and Earning Strong (+1) Foreign Brokers 192,645,784 2.6%
Risk Position Moderate (-1) Employee etc. 66,907,877 0.9%
Funding and Liquidity average & Strong (0) Domestic Brokers 38,359,449 0.5%
Corporate stakeholders 35,708,060 0.5%
Outlook Stable Hedge Funds 8,874,600 0.1%
Moody's Bank Deposits Baa2/P-2 Unidentified Holdings 573,467,326 7.7%
Baseline Credit Assessment Baa3 Others 155,557,896 2.1%
Adjusted Baseline Credit Assessment Baa3
Counterparty Risk Assessment Baa2/P-2
Ownerships Dec 17 Jun 18 Sep 18 Dec 18 Mei 19 Jun 19
Government RI 60% 60% 60% 60% 60.0% 60,0%

AAA/Stable Public – 7.1% 10.0% 10.0% 11.2% 9.3% 11,4%

Pefindo Corporate Rating Domestic
Public - Foreign 32.9% 30.0% 30.0% 28.8% 30.7% 28,6%

32
 BBNI vs Peers
BNI & Peers Asset Quality (Bank Only)
Coverage Ratio
201%
BNI & Peers Loan Composition 196%
191% 187%
195%
182% 184%
171% BBNI
148% 153% 148% 153% BMRI
12,4% 16,4%
15,4% 26,2% BBRI
149% 147% 150%
22,0% 143%
13,1% BBCA
13,9% 19,3% 57,1% 34,7% 2017 2018 1Q18 1Q19

Credit Cost
51,7% 45,3% 2,3%
39,7% 2,9%
24,2% 2,4% 2,2% 2,2% BBNI
2,0% 2,1% 1,3%
1,6% BMRI
BBNI BMRI BBRI BBCA 1,7% 1,2%
1,6% 1,4%
0,5% BBRI
Corporate Middle Small/Micro Consumer 0,4% 0,1% 0,6%
BBCA

*BCA merge the composition of medium and SME loans 2017 2018 1Q18 1Q19
Source: Banks Financial Report & Corporate Presentation as of 31 March 2019
NPL Gross
3,5%
3,3%
.. As of 31 March 2019, 51.7% of BNI’s loan composition was from Corporate Segment
2,8% 2,7%
which was the highest compared to peers.. BBNI
2,4% 2,3%
2,3% 2,1% BMRI
2,1%
2,3% BBRI
1,9% 1,9%
BBCA
1,5% 1,4% 1,5% 1,5%
2017 2018 1Q18 1Q19
33
33
 BASEL 3 Capital Requirement & BNI Capital Realization
2013 2014 2015 2016 2017 2018 2019 BBNI Capital Realization
1 8% CAPITAL 1H19
Minimum Capital 2 9% to < 10% I Common Equity Tier I Capital (%)
a based on Bank's Risk Minimum Requirement 4,5
3 10% to < 11%
Profile BNI Realization & Projection 17,68
4 and 5 11% to < 14% II Tier I Capital (%)
Minimum Requirement 6,0
Common Equity Tier 1 BNI Realization & Projection 17,68
a1 4.50% 4.50% 4.50% 4.50% 4.50% 4.50%
Capital Minimum III Total CAR Based on Risk Profile + Add Buffers (%)
1. BNI Risk Profile (Rating 2 Sound) 10%
a2 Tier 1 Capital Minimum 5.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 2. Capital Conservation Buffer 2,5
3. Countercylical Buffer 0% - 2.5%
4. Capital Surcharge for DSIB Bucket 1,5
Capital Conservation Buffer
b 0.625% 1.250% 1.875% 2.500% Minimum Requirement (%) 14,0
(Buku III and IV) *)
CAR BNI Realization & Projection (%) 18,68

Countercyclical Buffer (Applied Risk Weighted Asset (bank only)

c 0% - 2,50% **)
to all bank)
Rp Tn
Capital Surcharge for DSIB (Bank 1H19
d 1% - 2,50% ***)
with systemic risk) RWA - Credit Risk 510,32
RWA - Market Risk 1,84
Minimum Tier 1 Common Equity RWA - Operational Risk 76,23
e a1 + b + c + d
+ Additional Buffers Total RWA 588,39
Total Capital 109,92
Minimum Tier 1 Capital based
CAR 18,68%
f on Risk Profile + Additional a+b+c+d
Buffers
Minimum Tier 1 Capital
*) POJK No. 34/POJK.03/2016, 26 Sep 2016 about Bank’s Minimum CAR Buku I < Rp 1Tn ± up to USD 75Mn
**) The percentage was set by Bank Indonesia based on view of economy situatioan
Buku II Rp 1Tn < Rp 5Tn ± USD 75Mn < USD375Mn
***) Set by OJK
Buku III Rp 5 Tn < Rp 30 Tn ± USD375Mn < USD2,3Bn
Buku IV ≥ Rp 30 Tn ± ≥ USD2,3Bn

34
 BNI Winning Awards & Sustainability Policy

Peringkat 1 Digital Brand Wealth

Management Best e-Commerce 2017
Bank Umum Konvensional

The 2018 Treasury & Cash

Best State Owned Enterprise Best Trade Finance Bank in Management Non-
from Indonesia Institute for Indonesia 2018 from Alpha FI in Indonesia from Global
Corporate Directorship (IICD) Southeast Asia Finance

The Best Government Bank in

Best Remittances Provider in
Service Excellence
Southeast Asia 2018 from Alpha
Southeast Asia
The Most Popular Bank for Mortgage
Product Best Affluent Debit Card
Best Innovative Acquiring
Program from MasterCard
from MasterCard Awards
Awards

Best Service Cash Management The Remittance Product and Service of the Year
from Euromoney 2018 from The Asian Banker International

Most Trusted Company based Best Affinity Debit Card Program from
on CGPI Index MasterCard Awards

35
5 Years Financial Data
 5 Years Financial Data (1)
Balance Sheet - Rp Bn -
2015 2016 2017 2018 1H18 1H19 YoY
Cummulative
Total Assets 508,595 603,032 709,330 808,572 734,189 843,214 14.8%
Placement with other Banks & BI 33,417 33,662 28,593 39,324 25,898 41,846 61.6%
Marketable Securities [market value] 9,964 23,856 36,359 32,362 32,491 30,799 -5.2%
Government Bonds [market value] 47,222 63,006 79,849 86,791 84,414 83,708 -0.8%
Loan [Gross] 326,105 393,275 441,314 512,778 457,807 549,234 20.0%
Third Party Fund 370,421 435,545 516,098 578,775 526,482 595,067 13.0%
Deposit from other Banks 4,698 10,224 12,177 14,233 8,660 22,023 154.3%
Marketable Securities Issued 7,367 7,227 3,482 3,087 2,987 3,087 3.3%
Borrowings 22,524 32,965 44,722 52,025 51,978 56,220 8.2%
Shareholder's Equity 78,438 89,254 100,903 110,374 100,356 116,710 16.3%

Profit & Loss - Rp Bn 2015 2016 2017 2018 1H18 1H19 YoY
Interest Income 36,861 43,766 48,176 54,139 26,151 28,598 9.4%
Interest Expense (11,301) (13,771) (16,238) (18,693) (8,704) (10,985) 26.2%
Net Interest Income 25,560 29,995 31,938 35,446 17,447 17,613 1.0%
Premium Income Net 1,133 1,342 1,768 1,712 719 894 24.3%
Non Interest Income 6,684 8,174 9,308 9,615 4,817 5,375 11.6%
Recovery 1,590 1,378 1,732 1,997 781 1,016 30.0%
Operating Income 34,967 40,889 44,746 48,771 23,763 24,898 4.8%
Operating Expense (16,219) (18,806) (20,396) (21,783) (10,535) (11,268) 7.0%
Pre-Provision Income 18,748 22,083 24,349 26,988 13,229 13,630 3.0%
Provisioning (7,336) (7,853) (7,126) (7,388) (3,869) (3,968) 2.6%
Non Operational Inc/(Exp) 54 74 (57) 221 (45) (31) -32.1%
Net Income Before Tax 11,466 14,304 17,166 19,821 9,315 9,631 3.4%
Net Income 9,067 11,339 13,616 15,015 7,437 7,634 2.7%
Net Income Per Share (full amount) 487 610 730 805 399 409 2.7%
Earnings Per Employee (EPE) Rp Bn 321 380 490 551 268 288 7.7%

37
 5 Years Financial Data (2)
Financial Ratios [%] 2015 2016 2017 2018 1H18 1H19
CAPITAL
Shareholders equity to total asset 15.3 14.8 14.2 13.7 13.7 13.8
Tier I - CAR (include operational risk) 17.0 18.3 17.5 17.4 16.4 17.6
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 17.5 18.7
ASSET QUALITY
Net Non Performing Loan 0.9 0.4 0.7 0.8 0.9 0.8
Gross Non Performing Loan 2.7 3.0 2.3 1.9 2.1 1.8
Allowance for possible loan to gross NPL 140.4 146.0 148.0 152.9 150.2 156.5
RENTABILITY
ROA 2.6 2.7 2.7 2.8 2.7 2.4
ROE 17.2 15.5 15.6 16.1 16.5 14.4
Net Interest Margin 6.4 6.2 5.5 5.3 5.4 4.9
EFFICIENCY
Cost to Income Ratio 44.2 44.0 43.9 42.5 42.1 43.4
Operating Expense to Operating Income (BOPO) 75.5 73.6 71.0 70.1 71.2 72.6
LIQUIDITY
Loan to Deposit Ratio 87.8 90.4 85.6 88.8 87.3 92.3
COMPLIANCE
Statutory Reserve Requirement (Rupiah) 9.2 6.8 6.6 6.6 6.5 6.5
Net Open Position 1.7 3.4 2.5 2.0 4.1 1.6
DIVIDEND
Dividend Payout Ratio [%] 25.0 35.0 35.0 25.0

38
 Notes

39
 Thank you
PT Bank Negara Indonesia (Persero) Tbk
Investor Relations Group
Corporate Secretary & Communications Division,
BNI Building, 24th Floor
Jl Jend Sudirman kav. 1 Jakarta 10220
T: 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 has
been 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 change
without 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 any
part 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 which
might otherwise arise,