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05.11.2025
Turnaround Journey
Towards Profitability
PT Bank KB Indonesia Tbk
Public Expose (Bank Only – 9M/2025)
PT Bank KB Indonesia Tbk berizin dan diawasi oleh Otoritas Jasa Keuangan dan Bank Indonesia, serta merupakan peserta penjaminan Lembaga Penjamin Simpanan.
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Disclaimer This presentation may contain forward-looking statements, including projections, estimates, and assumptions regarding future performance, plans, or objectives of PT Bank KB Indonesia Tbk (“the Company”). Such statements are based on current expectations and are subject to risks, uncertainties, and changes in circumstances that may cause actual results to differ materially from those expressed or implied. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Any reliance on this information is at the viewer’s own discretion.
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Key Transformation Highlights
Past (~ 2021) Present (9M/2025 ~)
• Capital Constraints: Limited capacity for • Stable Capital Base: With continuous support
expansion with a Capital Adequacy Ratio from the parent, CAR remained stable at 16%,
(CAR) of ~12%. ensuring robust capacity for growth.
• Asset Quality Concerns: Elevated Loan at • Improved Asset Quality: Significant reduction
Risk (LAR) levels of ~65%, signaling in Loan at Risk (LAR) ratio to <24%, reflecting
significant credit risk exposure. strengthened credit risk management.
• Liquidity Challenges: Liquidity Coverage • Enhanced Liquidity: Liquidity Coverage Ratio
Ratio (LCR) at ~90%, reflecting insufficient (LCR) increased to ~335%, well above the
buffer to cover short-term obligations. regulatory benchmarks.
• Weak Performance: Net Interest Income • Improved Performance: Net Interest Income
below IDR 400 bn; Net Interest Margin achieved IDR 718 bn; Net Interest Margin (NIM)
(NIM) at a low 0.60%; Negative Bottom-line. improved to 1.33%; Net Profit IDR 265 bn.
• Outdated Systems: Reliance on an old • Advanced Systems: Successfully migrated to
core banking system, hampering the Next Generation Banking System (NGBS) as
operational efficiency. the core banking, leveraging proven technology.
• Inconsistent Risk Management: Non- • Standardized Risk Management: Centralized
standardized loan approval processes loan approval process implemented to ensure
leading to elevated risk profiles. consistent and prudent risk practices.
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Key Developments in 2025: Macro, Banking Sector, and KB Bank
• 6 Jan – Indonesia • 21 May – Bank • 16 Jul – Another 25-bps
formally admitted as a Indonesia cut rate 25- cut (5.25%) from Bank
BRICS member bps to 5.50% Indonesia to support
15 Jan – Bank Indonesia economic growth.
Q4 Oct ~
•
surprise rate cut by 25
bps to 5.75%
Q3 Jul - Sep
Q2 Apr - Jun
Q1 Jan - Mar • 11 Aug – KB Bank
• 6 Oct – KB Bank
appointed Widodo
Suryadi, a high
officially changes name seasoned corporate
• 24 Feb – the Indonesian • 28 May – KB Bank to PT Bank KB banker, as Wholesale
government launch the announces Kunardy Indonesia Tbk and Director following its
Danantara as the Darma Lie, a highly partners with K-Pop EGMS.
sovereign wealth fund seasoned banker, as its Group Hearts2Hearts as
Brand Ambassador • 22 Oct – BI holds rate at
to privatize state assets. new CEO. 4.75%, surprising
• 26 Mar – KB Bank • 30 Jun – KB Bank markets. However,
optimizes asset quality secures capital support consensus still projects
through sukuk from Parent to • Aug-Sep – BI continues one more rate
transaction with PT TBS strengthen long-term its easing with a total reduction by the end of
Energi Utama Tbk growth foundation 50-bps rate cut. 2025. 3
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Vision, Mission, and Key Strategies
Vision:
To be the trusted partner for all stakeholders,
a respected financial institution in Indonesia, and the employer of choice for talent
Mission:
To consistently deliver innovative, impactful, and timely financial solutions,
and create exceptional customer experiences, driven by motivated employees and a collaborative, high-performing culture
5 Pillars of Strategy
Business Stabilization Cost, Risk, Excellent Teamwork Regulators, Branding
and Growth for Governance, and and Synergy Government and as The Trusted
Sustainable Profit Control (Winning Mindset) Investor Relations Partner
1 2 3 4 5
• Minimize New NPL • Improve Vigilant on Credit • Increase Employee • Improve Soundness Level • Become a Respected and
Risk Engagement Trusted Brand for all
• Healthy Business Growth • Keep Good Relation while
Stakeholders
through Large and Middle • Improving Bad Asset • Improve Employee Leverage New Business
Corporate Segment Recovery Productivity • More Visible Branding in
• Increase Shareholders
the Market
• Whitelist Corporate Name • Reduce Cost of Fund & • Improve Organization Value
S,G&A Agility & Decision Making • Need to Solve Legacy NPL
• Achieve Positive PPOP and
/ LAR to Improve Market
Net Profit • Operations Streamline • Talent Retention and
Reputation
through NBGS Compensation
• 5C (Cash, Credit, Cross Sell,
Connectivity, Customer • Reduction Financial Losses
services) & Regulatory Fines
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KB Bank’s Key Figures 9M/2025 (Bank Only)
KEY HIGHLIGHTS (IDR) 9M/25 FY/25 Forecast Progress
‣ The Turnaround Story Total Loans 44.32 tn. 44 tn. – 45 tn. On track
Continued — Net profit of IDR Wholesale 22.32 tn. 22 tn. – 23 tn. On track
265 billion as of Q3 2025
confirms ongoing recovery. SME 6.68 tn. 6 tn. – 7 tn. Exceed
Retail 15.32 tn. 15 tn. – 16 tn. On track
‣ Growth Momentum
Accelerates Across Loan Normal Loans* 34.12 tn. 35 tn. – 36 tn. On track
Segments — Total loans rose Loan at Risks Ratio 23.01% < 21% On track
10.83% year-on-year, driven by
wholesale and retail segments.
Customer Deposits 46.96 tn. 44 tn. – 45 tn. Exceed
‣ CASA Surge Strengthens CASA 14.46 tn. 14 tn. – 15 tn. Exceed
Funding Base — Low-cost
deposits grew 38.02% yoy, CASA Ratio 30.79% > 30% Exceed
lowering cost of funds and
keeping NIM stable.
Net Interest Income 718 bn. 950 bn. – 1 tn. On track
‣ Group Synergy Drives Net Interest Margin 1.37% > 2% On track
Sustainable Transformation —
Profit (Loss) Before Tax 348 bn. 100 bn. – 150 bn. Exceed
With continued support from
KBFG, KB Bank advances its Net Profit (Loss) 265 bn. 200 bn. – 220 bn. Exceed
ecosystem-based growth and
asset quality initiatives for long-
Capital Adequacy Ratio 16.32% 16% – 18% On track
term value creation.
* Normal loans are loans with timely payments and no signs of default. 5
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Maintaining Growth Momentum in Wholesale Business
KEY HIGHLIGHTS 5C STRATEGY GROWTH DRIVERS
To sustain low funding costs through a stable
‣ CASH CASA base by enhancing cash management,
Wholesale Loan Growth
10
Confident Growth,
bundling payroll and operational accounts, and
Controlled COF
± %
promoting CASA loyalty with fee-based incentives.
Driving quality loan growth within the Bank’s risk
‣ CREDIT appetite by refining TMRAC, focusing on selected
Focus on Quality sectors, and expanding business with China-
linked companies.
including a solid
15.35% year-on-year
‣ CROSS-SELL Boosting profitability through cross-selling,
expansion in the focusing on ecosystem-driven relationships, and
Deepen Wholesale
Korean Link Business. rewards for multi-product engagement.
Customer Wallet Share
Positioning as the leading bank for Korean-linked
‣ CONNECTIVITY services through stronger Korea Desk
Build Strong Korea-
engagement, ecosystem focus, and integrated
Indonesia Business Ties
cross-border support.
Providing fast, customized, and relationship-
‣ CUSTOMER SERVICE driven service through standardized procedures,
Service that Understands
regular client feedback, and cross-directorate
Business
business reviews.
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Boost Retail Business with Digital + Korean Culture Appeal
KEY HIGHLIGHTS 5C STRATEGY GROWTH DRIVERS
Strengthening low-cost CASA to sustain margins
‣ CASH and credit growth by leveraging wholesale
Retail Loan Growth
17
Cash Is King,
connectivity, targeting transactional deposits, and
CASA Is Core
± %
rewarding CASA activity and volume.
Driving quality loan growth within risk appetite
‣ CREDIT through tighter credit scoring, real-time portfolio
Lend with Control,
monitoring, and proactive resolution of delayed
Not Just Volume
deals.
leveraging digital and
Korean wave appeal to Maximizing wallet share to boost fee income and
‣ CROSS-SELL loyalty through mandatory multi-product
boost engagement and
1 Client, 3 Products,
loyalty among young, holdings, strategic cross-bundling, and
5 Benefits
tech-savvy Indonesians. performance-based rewards.
Ensuring a seamless client experience across
NEW BRAND ‣ CONNECTIVITY channels through hybrid engagement, positioning
AMBASSADOR Connected Channels,
branches as hubs and digital as the growth engine,
Controlled Growth
supported by segment-based local ecosystems.
Building trust with key segments (e.g. high net-
‣ CUSTOMER SERVICE worth individuals and SMEs) through standardized
Service That’s Fast
service delivery, rapid feedback resolution, and
and Relevant
continuous frontline capability development.
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Thank You 감사합니다
Names mentioned 9 people and organisations named in the text · linked when the evidence is strong
unresolved
org
Bank Indonesia
p.1 ×2
unresolved
org
Bank BRICS
p.4
unresolved
org
PT Bank KB
p.4
unresolved
org
Indonesia Tbk
p.4
unresolved
org
PT TBS
p.4
unresolved
org
Energi Utama Tbk
p.4
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