1

BJTM COMPANY PERFORMANCE 7M16

2

Table of Contents

Description Page

Agenda Cover

Table of Contents 2

Overview 3 ndash 5

Company Review 6 - 10

Business Plan 10 - 12

Appendix 13 - 39

- Economic Outlook 14 - 16

- Financial Highlights 17 ndash 22

- Overview amp Investment Highlights 23 ndash 33

- Strength 34 ndash 38

Contact 39

3

OVERVIEW

4

ASSET YoY Growth (318)

FUND

YoY Growth 215bull Current Account 129bull Saving Account 1371bull Time Deposit (595)

7M16 Overview

Improvement

Human Capital

And

IT Management 2016

LOAN

YoY Growth 222bull Commercial (489)bull SME (369)bull Consumer 632

RATIO

CASA 7056COF 283ROA 296ROE 1941

NET PROFIT YoY Growth 1937

5

STRENGTHbull Micro loan at 2 years NPL 082bull Multipurpose loan NPL 039

STOCK

bull (66 Foreign Shareholder)bull High Dividend Yield historybull Dividend Growthbull BJTM Price July 29 2016

IDR 585 sharebull PBV 139bull EPS 7036bull PER 831

7M16 Overview

The 1st Champion of

Indonesia Original

Brands Category

Regional Bank 2016

NPLbull NPL May 2016 479bull NPL June 2016 458bull NPL July 2016 483

6

COMPANY REVIEW

7

LOANIn million Rp

7M15 7M16 YoY

Loan 28654214 29290730 222

- Commercial 6204245 5900919 -489

- SME 4787018 4610501 -369

- Consumer 17662952 18779310 632

Financial Performance

bull Multi-purpose credit still becomes the largest contributor

bull Standby loan credit facilities start running again with collateral regulations adjustmentand more prudential analysis

bull Adjust with single digit rate from OJK PundiKencana (SME) Credit Facility implemented with 10 rate and micro credit from government funding with rate under 10

FUNDIn million Rp

7M15 7M16 YoY

Third Party Fund 41644181 42537452 215

- Current Account 17698264 17926232 129

- Saving Account 10629904 12087219 1371

- Time Deposit 13316012 12524002 -595

bull Current account and Saving account increase low rate cost funding

bull Deposits with high interest rates have been reduced to lower the interest expense

8

InformationIn million Rp

7M15 7M16 YoY

Net Interest Income 1813868 1969020 855

Net Non Interest Operational Income

(Expense)(1119825) (1124772) 044

Net profit 512966 612315 1937

- ROA 274 296

- ROE 1599 1941

- NIM 655 665

Financial Performance

bull Dealer Treasury activityrsquos become thesignificant contributor for interest income the portion up to 20 from interest income

bull Operational profit increased due to higher interest income and lower impairment losses

9

Non Performing Loan

bull Bank Jatim still faces the non performing loan and yet to decrease the rising of the NPL last year was caused by

- Commercial credit npl standby loan and keppres

- Multipurpose npl from death and fired people decrease from insurance claim

- Financial Services Authority policy on lending quality of sharia rural bank based on capital adequate ratio level

bull Bank Jatimrsquos Credit Risk Division and Adhoc team keep attempting to reduce the NPL

bull The current NPL comes from the same debtors similar to last year and we still maintain the debtor to restructuring or rescheduling the credit based on their business Some of the standby loanrsquos debtors are waiting from the appeal completion in court

bull Managementrsquos efforts to reduce NPL are by conducting collection and auction the collateral

bull Strengthening capability assessment for credit officer improvement credit regulation and reconstruction of credit intern law

NPL 1H15 9M15 FY15 1M16 2M16 3M16 4M16 5M16 1H16 7M16

Consumer 075 086 074 077 081 082 085 089 085 091

SME 759 802 1111 1144 1165 1162 1154 1146 1136 1160

Commercial 978 1053 997 1159 1146 1142 1133 1181 1127 1190

NPL GROSS 382 422 429 451 457 459 465 479 458 483

Coverage Ratio 7582 8428 8102 8214 8217 8087 8194 8420 8337 8512

10

BUSINESS PLAN

11

Business Plan 2016

Description 2015 2016 E

Total Asset 1265 536

Loan 846 1207

Third Party Fund 1319 505

Financial Ratio

- CAR 2122 1899

- LDR 8292 8846

- NPL Gross 429 425

- NIM 641 744

- BOPO 7611 8454

- ROE 1611 1838

- ROA 267 321

LOAN STRATEGY

bull Credit for vehicle acquirement

bull Increasing MoU with government institutions for multipurpose also private corporates

bull Intensifying linkage program to rural bank members of Perbamida or Perbarindo

FUNDING STRATEGY

bull Cooperating with competent institutions to distribute school operational fund

bull Expanding funding networks

bull Intensifying new funding products implementation

bull Pricing Strategy for lower interest rate

NPL STRATEGY

bull Collection with credit restructuring

bull Special collection for rest of government payment project terms

bull Insurances claim accelerations and recoveries

bull Collateral auction

GENERAL STRATEGY

bull Revitalization into competence and professional human capital to shape competency based on resource management

bull Development and reorganization of head office and branches for customer centric

12

NETWORK

Network 2009 2010 2011 2012 2013 2014 2015 7M16NETWORK

2016

SHARIA

2016

Head Office 1 1 1 1 1 1 1 1 1

Branch Office 39 41 41 41 41 43 45 46 1 2

Sub Branch

Office26 44 67 81 107 153 165 166 5 10

Cash office 151 154 164 164 176 165 185 185 9 6

Sharia service

office37 37 47 47 47 97 97 97 94

Payment Point 78 88 115 138 155 167 171 173 8 7

Mobile cash 45 49 57 57 59 62 65 78 11 6

Mobile ATM - 4 4 6 6 6 6 6

CDM 1 1 1 1 1 2 2 2

ATM 87 142 262 368 479 595 688 692 13 15

Total network 465 561 759 904 1072 1291 1425 1446

13

APPENDIX

14

ECONOMIC OUTLOOK

550 525 525

575 575 600725 750 750 750 750 775 750

675 650 650

430

590 590

840 838732

670

453

836

335

445345 321

FY12 3M13 1H13 9M13 FY13 3M14 1H14 9M14 FY14 FY15 3M16 1H16 7M16

LOANbillion

FUNDbillion

JIBOR

INFLASI

BI RATE

LOANbillion

FUNDbillion

INFLASI

BI RATE

BI 7-Day Repo Rate

15Source Bank Indonesia

MACRO ECONOMY REVIEW

In billion Rp

3225198 3243136 3374272 3526188 3663968 3618064 3834503 3995803 4114420 4198577 4319749 4464083 4413056 4478409

2725674 2787372 2982436 3170805 3319842 3334011 3494968 3592087 3706501 3713544 3861172 3990464 4092104 4035929

FY12 3M13 1H13 9M13 FY13 3M14 1H14 9M14 FY14 3M15 1H15 9M15 FY15 4M16

NATIONALYoY

EAST JAVAYoY

16Source East Java Gov

East Java amp National BPS

Regional Economic Growth

640562 521 512 500 500 471 470 473 479 492

727

615 640 594 591 590518 525 544 544 534

FY12 FY13 3M14 1H14 9M14 FY14 3M15 1H15 9M15 FY15 3M16

17

FINANCIAL HIGHLIGHTS

18

Balance Sheet

InformationIn million Rp

7M15 7M16 YoY

Total Asset 49222516 50786968 318

Placement BI amp SBI 14108042 11775816 -1653

Loan 28654214 29290730 222

Allowance for Impairment Losses (937449) (1203961) 2843

Third Party Fund 41644181 42537452 215

- Current Account 17698264 17926232 129

- Saving Account 10629904 12087219 1371

- Time Deposit 13316012 12524002 -595

Equity 5922719 6266316 580

18

Balance Sheet

InformationIn million Rp

7M15 7M16 YoY

Total Asset 49222516 50786968 318

Placement BI amp SBI 14108042 11775816 -1653

Loan 28654214 29290730 222

Allowance for Impairment Losses (937449) (1203961) 2843

Third Party Fund 41644181 42537452 215

- Current Account 17698264 17926232 129

- Saving Account 10629904 12087219 1371

- Time Deposit 13316012 12524002 -595

Equity 5922719 6266316 580

19

Profit amp Loss

InformationIn million Rp

7M15 7M16 YoY

Interest Income 2636359 2792540 592

Interest Expense (822491) (823520) 013

Nett Interest Income 1813868 1969020 855

Non Interest Operational Income 274986 257429 -638

Non Interest Operational Expense (1394811) (1058368) -2412

Provision for Impairment Losses (428576) (323833) -2444

Nett Non Interest Operational Income (Expense)

(1119825) (1124772) 044

Operational Profit 694043 844248 2164

Non Operational Profit 41924 4298 -8975

Pre Tax Profit 735967 848546 1530

Taxes (223001) (236231) 593

Net profit 512966 612315 1937

142 157 163 174200

249291

331

380

525 508

46 55 74

101

131

161 186

223

262

287 293

120 132 137 145162

201222

260

303

446425

04 0405 05

09 09

0708

094

118

06106

07 07 07 0708

0908

12

134

082

17 172 21

27 28 2933

41

46

279

TOTAL ASSET (Rp Tril)

INTEREST INCOME (Rp Tril) INTEREST EXPENSE (Rp Tril)

CAGR =

1261

CAGR =

1142

CAGR =

1256

NET PROFIT (Rp Tril)

THIRD PARTY FUND(Rp Tril)

CAGR =

1533

LOAN (Rp Tril)

CAGR =

2153

CAGR =

1524

20

Financial Performance

R

O

A

R

O

E

N

I

M

Financial Ratio

23

261

414 407

355394

375

558

497

334

382352

267

380

318296

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 3M16 1H16 7M16

3054

36903848

308531482859

4057

3365

1896190418981611

23492087

1941

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 3M16 1H16 7M16

910 939 934

728

835766

917

795

648714 690

641683 669 665

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 3M16 1H16 7M16

L

D

R

C

A

R

B

O

P

O

22

Financial Ratio

4545 4513

38754211

5404

6967

8070 80118355 8498 8654

8292

68117264

6886

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 3M16 1H16 7M16

15291817

3845

3339

2536

21321919

1653

26562372

2217 21221946 2065 2047

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 3M16 1H16 7M16

7467 73836943 6820 6742 6604

5958 6002

6869 7028 6963

7611

6532

70567232

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 3M16 1H16 7M16

23

OVERVIEW amp INVESTMENT HIGHLIGHTS

24

Current AccountYoY 129

Saving AccountYoY 1371

Time DepositYoY (595)

Third Party Fund

9662

12083

9969

16563

11649

18292

20116

17698

13494

21037

15345

17926

81747064

9970

8082

10991

9172 9128

10630

12753

1098712379 12087

4374

8269

6048

10834

7630

10509

13437 13316

8016

9482

12578 12524

FY12 1H13 FY13 1H14 FY14 3M15 1H15 7M15 FY15 3M16 1H16 7M16

Current Account

Saving Account

Time Deposit

In Billion Rp

24

Current AccountYoY 129

Saving AccountYoY 1371

Time DepositYoY (595)

Third Party Fund

9662

12083

9969

16563

11649

18292

20116

17698

13494

21037

15345

17926

81747064

9970

8082

10991

9172 9128

10630

12753

1098712379 12087

4374

8269

6048

10834

7630

10509

13437 13316

8016

9482

12578 12524

FY12 1H13 FY13 1H14 FY14 3M15 1H15 7M15 FY15 3M16 1H16 7M16

Current Account

Saving Account

Time Deposit

In Billion Rp

In Billion Rp

Government Current

Acc

YoY (1752)

Private Current Acc

YoY 20528

YoY

SIMPEDA 1091

SIKLUS 4390

Hajj Saving 289

TabunganKu 2476

Barokah Saving 3115

Time Deposit

YoY (595)

25

Detailed Third Party Fund

13821 11959 7220 14710 15803 16204 17985

5718 16715

10411 13365

2742 3491 4429

3582 4313 1494 1596

7776

4322 4933

4561

1H14 9M14 FY14 3M15 1H15 7M15 9M15 FY15 3M16 1H16 7M16

Current Account

Government Private

241 290 657 418 535 560 581 861 674 752 806 179 194 208 218 199 204 215 224 230 208 210

6946 7682

9239 7705 7543

8977 8535

10561 9046

10330 9957

651 687

795

748 762

797 814

994

925

980 994

65 70

93

83 87

92 94

112

112

110 120

1H14 9M14 FY14 3M15 1H15 7M15 9M15 FY15 3M16 1H16 7M16

Saving Account

SIKLUS Hajj Saving SIMPEDA TabunganKu Barokah Saving

10834 11331 7630 10509 13437 13316 13934 8016 9482 12578 12524

1H14 9M14 FY14 3M15 1H15 7M15 9M15 FY15 3M16 1H16 7M16

Time Deposit

26

Third Party Fund Customer

In million Rp

FY12 3M13 1H13 9M13 FY13 3M14 1H14 9M14 FY14 3M15 1H15 9M15 FY15 1H16 7M16

44

13

7

43

63

4

44

25

4

45

33

4

46

85

3

47

01

4

48

35

8

49

41

1

50

13

4

50

92

7

53

65

8

54

36

9

51

36

1

53

33

7

53

49

3

20

45

785

21

00

510

21

44

912

25

11

507

41

26

826

41

61

277

41

99

590

42

55

204

43

33

820

44

03

899

44

62

107

45

43

12

9

46

26

910

48

21

838

48

39

565

23

61

6

24

42

5

24

53

8

25

27

4

26

17

6

25

27

7

27

20

9

28

17

3

29

19

4

30

72

8

30

78

8

32

69

2

34

16

7

35

87

2

36

77

2

Total Customer

Current Account Saving Account Time Deposit

21831

27733 27304 27883

21277 24866

34252 31270

23236

35918 37489 36015

26273 28769

33511

399 322 329 303 242 199 192 210 254 208 205 225 276 257 250

18521 27761

33698 33250

23107

32546

39819 40218

26134

34200

43644 42621

23462

35063 34059

FY12 3M13 1H13 9M13 FY13 3M14 1H14 9M14 FY14 3M15 1H15 9M15 FY15 1H16 7M16

Ticket Size

Current Account Saving Account Time Deposit

27

Competitive Product

CONSUMER

COMMERCIAL

SME

CONSUMER LOAN Julyrsquo15 Julyrsquo16

Multipurpose 5447 5597

Mortgage 481 514

Others 236 301

Total 6164 6411

COMMERCIAL LOAN Julyrsquo15 Julyrsquo16

Standby Loan 374 224

Keppres 370 354

Overdraft 963 986

Syndicate 458 452

Total 2165 2015

Small Medium Ent Julyrsquo15 Julyrsquo16

KUR 241 082

Pundi Kencana 392 428

Jatim Mikro 160 188

Others 879 877

Total 1671 1574

28

Loan Proportion

In Billion Rp

YoY

Consumer

632

Commercial

(489)

SME

(369)

29

Type Of Loan

15599 16224 16711 17064 17575 17663 17939 18186 18427 18875 18779

5019 5624 5180 5054

6024 6204 6586 5697 5334 5789 5901

4203 4239 4304 4450 4689 4787 4710 4528 4507 4612 4611

1H14 9M14 FY14 3M15 1H15 7M15 9M15 FY15 3M16 1H16 7M16

Consumer Commercial SME

In Billion Rp

YoY

Multi

purpose

503

Mortgage

919

Others

3012

30

Type Of Loan

13864 14408

14849 15152 15609 15608 15794 15924 16117

16499 16394

1177 1233 1299 1340 1369 1379 1399 1434 1465 1502 1505

559 583 563 572 597 677 746 827 845 875 880

1H14 9M14 FY14 3M15 1H15 7M15 9M15 FY15 3M16 1H16 7M16

CONSUMER LOAN

Multipurpose Mortgage Others

In Billion Rp

YoY

Standby

Loan

(3877)

Keppres

(235)

Overdraft

462

Syndicate

071

31

Type Of Loan1

0

75

12

86

10

13

81

2

10

23

10

71

12

44

84

7

59

4

65

6

65

6

82

4 11

57

68

7

44

9

97

8

10

60

13

37

74

8

55

9

96

4

10

35

22

17

22

59

23

08

25

75

27

41

27

59

26

92

27

66

28

22

28

67

28

87

90

3

92

2

11

71

12

18

12

81

13

14

13

14

13

36

13

60

13

01

13

23

1H14 9M14 FY14 3M15 1H15 7M15 9M15 FY15 3M16 1H16 7M16

Commercial Loan

Standby Loan Keppres Overdraft Syndicate

In Billion Rp

YoY

KUR

(6532)

Pundi

Kencana

1163

Mikro

2031

Others

200

32

Type Of Loan1218

1128

1058

893

735

689

601

451

347

258

239

693

747

796

950

1108

1123

1157

1178

1223

1273

1254

78

165

264

345

452

457

491

520

530

557

550

2214

2199

2186

2262

2395

2517

2461

2380

2407

2523

2568

1H14 9M14 FY14 3M15 1H15 7M15 9M15 FY15 3M16 1H16 7M16

SME Loan

KUR Pundi Kencana Mikro Others

33

Type Of Loan

26

22

93

26

06

47

25

96

58

26

17

30

26

36

14

26

39

07

25

45

01

25

34

43

25

37

33

25

35

85

85

98

96

44

87

30

71

94

96

70

11

5

82

83

64

64

02

91

60

94

88

45

9

51

43

9

86

42

7

49

43

2

81

45

2

44

44

1

49

41

6

35

41

8

61

42

3

00

42

2

37

1H14 9M14 FY14 3M15 1H15 9M15 FY15 3M16 1H16 7M16

Total Customer

Consumer Commercial SME

5947 6225 6436 652 6667 6797 7146 7271 7439 7406

58231 58311 5933

702662292

56868

68119

83319

63196 62194

9147 9637 10069 1028 10366 10669 10877 10767 10903 10916

1H14 9M14 FY14 3M15 1H15 9M15 FY15 3M16 1H16 7M16

Ticket Size

Consumer Commercial SME

34

STRENGTH

35

Strength Of Funding

517

460 477426

403435

463 480431 407 435

384 385 394 421

246

254 288

362358

241

250284 359

354368

384 363 372284

237 285 235212

239 237287

237 210 239197

232 252 234294

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 7M16

Time deposit Saving deposit Current account

448 453

300 253 302 318 321261

316 354 348268 301

368256 301 284 283

492 500

275239

310 328 331

258326

381 371

267345

395

250277 297 296

3M12 1H12 9M12 FY12 3M13 1H13 9M13 FY13 3M14 1H14 9M14 FY14 3M15 1H15 FY15 3M16 1H16 7M16

Cost of Fund(+) Local Government (-) Local Government

35

Strength Of Funding

517

460 477426

403435

463 480431 407 435

384 385 394 421

246

254 288

362358

241

250284 359

354368

384 363 372284

237 285 235212

239 237287

237 210 239197

232 252 234294

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 7M16

Time deposit Saving deposit Current account

448 453

300 253 302 318 321261

316 354 348268 301

368256 301 284 283

492 500

275239

310 328 331

258326

381 371

267345

395

250277 297 296

3M12 1H12 9M12 FY12 3M13 1H13 9M13 FY13 3M14 1H14 9M14 FY14 3M15 1H15 FY15 3M16 1H16 7M16

Cost of Fund(+) Local Government (-) Local Government

Description Details

Civil Servants (per December 2014) 426545

Multipurpose Customer (Civil Servants) 238965

5602

NPL 039 as of Julyrsquo 2016

36

Strength of Loan (Multipurpose Loan)

567 593 612 619 631 640

666 675 690 686

1H14 9M14 FY14 3M15 1H15 9M15 FY15 3M16 1H16 7M16

Multiguna Ticket Size (million) Rp

13864

14408

14849

15152

1560915794

1592416117

1649916394

1H14 9M14 FY14 3M15 1H15 9M15 FY15 3M16 1H16 7M16

Multiguna Loan Balance

( Billion Rp )

Foreign Institution Investor

7260 from public shares

Foreign Institution Investor

6581 from public shares

Public shares 20

from paid capital Domestic Investor

3419 from public shares

Domestic Investor

2740 from public shares

37

No Country Share

1 INDONESIA 3419402 LUKSEMBURG 161267

3 AMERIKA 1341304 NORWEGIA 1111345 SIPRUS 838626 FINLANDIA 577797 VIRGIN ISLAND 41059

8 INGGRIS 223339 IRLANDIA 17073

10 AUSTRALIA 0964611 JEPANG 0839812 KANADA 05512

No Country Share

14 SWEDIA 0248915 SINGAPURA 0201816 CAYMAN ISLAND 0060317 GREENLAND 0033118 CINA 0019319 SWITSERLAND 0011320 KOREA SELATAN 0007421 FILIPINA 0002222 MALAYSIA 0001523 HONGKONG 0000824 JERMAN 00001

Total 100

STRENGTH OF INSTITUTIONS INVESTOR

38

Awards amp Achievements

The Most Trusted Banking in

Microfinance Services of The

Year 2015

Very Good Predicate for 2014

Financial Performance

Infobank Awards 2015

Bank Jatim Regional Banks with

excellent service of the year

2016

Excellence in Building and

Managing Corporate Image

Corporate Image Award 2015

The 1st Champion of Indonesia

Original Brand 2015

Top BPD HRampIT Management

2016

39

Investor Relations (IR)

Corporate Secretary

(031) 5310090 ext 469

Email irubankjatimcoid

Contact