Jakarta, 13 April 2010. After the successful issuance of bonds amounting to Rp 750 billion in October 2009, PT Bank Tabungan Pensiunan Nasional Tbk (SMBCI) immediately proceeded with its second bond issuance, for the same amount of Rp 750 billion. "This second issuance is part of the Bank's strategic plan to collect long-term funding to support the funds raised from the public, so that SMBCI will be able to optimize its intermediary function," explained President Director Jerry Ng.

Furthermore, Jerry also disclosed that the plan to issue SMBCI II Bonds was related to the success of SMBCI I issuance last year, that was oversubcribed to Rp 750 billion from the original plan of Rp 500 billion. SMBCI II Bonds to be offered will have the same structure, i.e. consisting of 2 (two) series - Series A with the tenor of 3 (three) years and Series B with the tenor of 5 (five) years. PT CIMB Securities Indonesia, PT Mandiri Securities, and PT Indo Premier Securities will be the underwriters of the issuance.

SMBCI bond issuance has received the national long-term rating of AA-(idn) with the prospect of a stable rating from Fitch Ratings. "In about six months, Fitch Ratings has upgraded the rating of SMBCI Bond from A + (idn) in October 2009 to AA- (idn). The rating upgrade represents the Bank's capability to maintain its asset quality, improve funding structure, and generate strong performance," said Jerry.

The bond issuance will support the Bank's business development, particularly in providing the biggest access to financing for pensioners and MSEs. The entire proceeds generated from the issuance, after deducting issuance costs, will be used to provide financing with the proportion of 50% for the pension loans and another 50% for micro-credit financing. "We hope this bond will be regarded as an attractive investment instrument by the investors who have made profit from SMBCI I bond and at the same time it will be a long-term financing alternative for SMBCI," Jerry concluded.

Excellent Financial Performance and Business

SMBCI's Financial Statements as of 31st December 2009 reflects impressive business growth and capacity expansion that will ensure sustainable performance improvement.

As of 31st December 2009, the Bank had served more than 500,000 pensioners and more than 120,000 MSEs. During 2009, the Bank has also expanded its branch network, such as by opening 493 offices of smbci|mitra usaha rakyat, so the Bank's distribution network reached a total of 1,030 offices - including 539 offices of smbci|mitra usaha rakyat. To support the larger distribution network, the Bank has expanded its workforce by recruiting more than 7,000 employees, bringing the total number of employees to 10,372 people by 31st December 2009.

SMBCI's commitment in developing the businesses that focus on pensioner and MSE markets has also contributed to the significant increase of its performance. As of 31st December 2009, the third-party funds totaled Rp 18.5 trillion or increased by 63% compared to the previous year. Loans (gross) as of 31st December 2009 reached Rp 15.7 trillion or went up by 51% over the previous year. Business development and optimization of lending were always complemented by the application of the prudential principles in risk management, so that gross NPL (Non Performing Loan) ratio went down to 0.51%, lower than the previous 0.59% of 31st December 2008, and as of 31st December 2009, net NPL ratio stood at 0.07%.

The strong trust of the public and the financial industry was translated into the successful Rp 750 billion bond issuance named SMBCI I in October 2009 that gained national long-term rating of A + (idn) from Fitch Ratings, followed by Rupiah denominated loan facilities from the International Finance Corporation (IFC) with the amount equivalent to USD70 million.

The investment in business expansion has also significantly boosted asset growth for SMBCI as the assets grew 63% compared to same period last year, i.e. from Rp 13.7 trillion (31st December 2008) to Rp 22.3 trillion (31st December 2009). Such investment also generated higher operating income which reached Rp 2.34 trillion as of 31st December 2009 or an increase of 50% from Rp 1.56 trillion as of 31st December 2008. The increase in operating income was primarily attributable to the increase of interest income due to the increase of lending.

Although investments had caused an increase in operating expenses, SMBCI still managed to maintain the momentum of the increase in net income so that as of 31st December 2009, net income reached Rp 420.4 billion, an increase of 11% compared to last year. Meanwhile, as of 31st December 2009, SMBCI managed to maintain its capital adequacy ratio (CAR) at the level of 18.5%.

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