Annual Report
Serving You with All Our Hearts
Understanding cUstomers’ needs and
prioritizing premiUm services is key to
ensUring long-term growth.
With growing business challenges today, driven by the global and national economic
dynamics, CIMB Niaga addresses the changing environment by increasing synergy
across the organization, improving human capital competency by consistently reinforcing
corporate culture, enhancing business processes through structured strategies, stepping
up risk management and putting greater emphasis on developing leading business lines
through a focused and prudent operating model.
Marking its 60th year on 26 September 2015, CIMB Niaga has evolved into one of the
nation’s leading banks. As one of Indonesia’s top five banking entities, CIMB Niaga serves
the country by contributing to national economic and banking development. It has been
60 years of a journey and the Bank will continue forward with its upstanding values,
extending services from the heart to customers throughout the archipelago.
CIMB Niaga is also continuing to strengthen the Bank’s internal base, implementing
the Transformation Program II and striving to seize growth opportunities by
delivering innovating products and services.
CIMB Niaga is dedicated to providing banking convenience and to positioning customers
as partners in realizing the Bank’s vision of becoming a Leading ASEAN Bank, while
together creating added value for all stakeholders.
our Journey
1955 1973-1983
1987
2009 2010 2012
Established as PT Bank Niaga
First bank to launch ATMs
Merger with:- Bank Agung - 1973 - Bank Tabungan
Bandung - 1978 - Bank Amerta 1983
• Strengthened position as the fifth-largest bank in Indonesia
• Completed the integration of systems and operations
• Recorded Net Profit of Rp 3.2 trillion
• Distributed interim dividend of Rp 200 billion
• Issued Senior Bonds of Rp 1.5 trillion
• Payment over Sub-debt of USD 200 billion
• Posted Net Profit of Rp 4.2 trillion
• Launch of new mobile banking platform – Go Mobile
• Issued Shelf Bonds I Tranche I of Rp 2 trillion
• Launch of Phone Banking service 14041 (re-launch) and Preferred Phone Banking 500 800 with various leading features
200420021989
2013 2014
Launch of Sharia banking
CIMB Group (d/h Commerce Asset-Holding Berhad) takes over 50.99% shares of PT Bank Niaga Tbk from BPPN
Initial Public Offering (IPO)
• Posted Net Profit of Rp 2.3 trillion
• Launch of co-branding Credit Card CIMB Niaga- AirAsia BIG Card
• Launch of the first online TD opening in Indonesia through CIMB Clicks
• Posted Net Profit of Rp 4.3 trillion
• Launch of Digital Lounge• Launch of Rekening Ponsel• Launch of Poin Xtra• Issued Shelf Bonds I Tranche II
of Rp 1.45 trillion• Launch of Net Banking –
online account opening
20062005 2008Issued subordinated debt of USD 200 million
Rights Issue Rp 1.3 trillionIssued subordinated Debt of USD 100 million
- Name changes to PT Bank CIMB Niaga Tbk
- Effective merger between CIMB Niaga & LippoBank
2015•LaunchofVirtualCreditCard–Octopay
•LaunchofMMQHomeFinancing–ShariaHomeFinancingwithfloatingrate
•IssuedNegotiableCertificateDeposit(NCD)ofRp930billion
Serving You with All Our Hearts annual report 2015vi
Performance Highlights.04
Management Discussion and Analysis.102Management Reports.32
Operational Support Review.222Company Profile.58
table of contents
Management Reports
Performance Highlights14 Digital Platform 2015
16CIMB Niaga 2013-2016 Differentiation Strategy
18 Strategic Focus 2015
20 Financial Highlights
22 Stock Highlights
24 Bonds Summary
28 Event Highlights 2015
30 Awards and Certifications
60 Corporate Identity
61 CIMB Niaga at a Glance
64 Core Business
65 CIMB Niaga Products and Services
68 Operations Areas
70 Organizational Structure
73 Vision, Mission and Corporate Culture
75 Core Values
76 Board of Commissioners’ Profiles
80 Directors’ Profiles
85 Shareholders’ Composition
90Two-Year Comparison of Total Employees and Competency Development
94 Subsidiaries and Associates
96 Company Group Structure
98 Share Listing Chronology
99 Listing Chronology of Other Securities
101 Capital Market Supporting Institutions
101 Information Access
34Message from the President Commissioner
38 Board of Commissioners
40 Report from the President Director
48 Directors
50Report from the Syariah Supervisory Board
52Board of Commissioners and Directors Statement of Accountability of Annual Report 2015 PT Bank Cimb Niaga Tbk
54 CIMB Niaga Strategy
i Intro
ii Our Journey
iii Table of Contents
Company Profile
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Corporate Social Responsibility.514 Consolidated Financial Report 2015.576Corporate Governance Report.360
Table of Contents
Management Discussion and Analysis
104 Economic Macro 2015
106 Banking Industry 2015
107 CIMB Niaga Performance
109 Business Segment Review
110 Corporate Banking
116 Treasury and Capital Market
120 Transaction Banking
124 Business Banking
126 Commercial Banking
130 SME Banking
136 Retail Banking
150 Syariah Banking
158 Financial Performance Review
159 Balance Sheet
178 Business Performance
186 Cash Flows
191 Subsidiary Performance
192Capital Goods Investment and Material Commitments for Capital Goods Investment
193Material Commitments for Capital Expenditure
194Targets Set At The Beginning of Year Vs. 2015 Realization and 2016 Projection
195Material Information and Facts Subsequent to Reporting Date
196Important Transactions in Significant Amounts
196 Business Prospects
197Financial Position of Bank Business Plan 2016
197 Marketing
198 Dividend and Dividend Policy
199Employee and/or Management Share Options
200Realization of Proceeds of Public Offering
201 Transactions with Related Parties
203Financial Information That Has Been Reported and Carries Extraordinary and Rare Events
203Material Information on Investment, Expansion, Divestment, Acquisition or Debt/Capital Restructuring
203Regulatory Changes With Significant Impacts on the Bank
213Changes In Accounting Policy Effective in 2015
218 Information on Business Continuity
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Management Discussion and Analysis.102Management Reports.32
Operational Support Review.222Company Profile.58
Table of Contents
Corporate Governance Report
Operational Support Review
224 Risk Management
229 Risk Management Process
230Risk Management Organizational Structure
234 Integrated Risk Management
242 Risk and Mitigation
242 Credit Risk
306 Market Risk
311 Operational Risk
313 Liquidity Risk
326 Legal Risk
327 Strategic Risk
330 Compliance Risk
331 Reputational Risk
334 Human Resources
353 Information Technology & Operations
362 Good Corporate Governance Objectives
363 Corporate Governance Roadmap
364 Corporate Governance Structure
366Corporate Governance Guidelines and Policy
3672015 GCG Implementation and 2016 GCG Plan
367 Corporate Governance Assessment
370 General Meeting of Shareholders
380 Board of Commissioners
386 Independent Commissioner
386 Directors
392Board of Commissioners and Directors Performance Assessment
394Board of Commissioners And Directors Remuneration Stipulation
397Board of Commissioners And Directors Meetings Frequency and Attendance in Meetings and Joint Meetings
404Diversity in the Board of Commissioners and Directors Composition
405 Major and Controlling Shareholders
407Affiliation Between Members of the Board of Commissioners, Directors and Major Shareholder and/or Controlling Shareholder
408Committees Under the Board of Commissioners
408 Audit Committee
413Nomination and Remuneration Committee
418 Risk Monitoring Committee
422Integrated Corporate Governance Committee
429 Executive Committee
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Table of Contents
Corporate Social Responsiblity
Sharia Business Unit Corporate Governance
Corporate Data
438Compliance Management (Complaince Unit)
442 Corporate Secretary
446 Internal Audit Unit (IAU)
451 Public Accountant (External Auditor)
452 Risk Management
454 Internal Control System
456Litigations Involving the Company and Subsidiaries
465 Information Access & Corporate Data
469 Code of Conduct & Corporate Culture
470 Whistleblowing System
504Sharia Business Unit Corporate Governance
516 Introduction
518 Environmental Responsibility
520Occupational Health and Safety Responsibility
522Social & Community Development Responsibility
530 Consumer Responsibility
535 Executives
544List of Head Office and Branch Office Addresses
560FSA Reference-ARA Criteria 2015(d/h) Bapepam LK No. X.K 6
Consolidated Financial Report 2015
576
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Management Discussion and Analysis.102Management Reports.32
Operational Support Review.222Company Profile.58Performance Highlights.04
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Corporate Social Responsibility.514 Consolidated Financial Report 2015.576Corporate Governance Report.360
Performance Highlights
Fun Saving and Experiencing Adventures
with CIMB Junior for Your Young Ones
KimberleySuryaHandokoWinnerFestivalFantasyJunior2016
I started saving with CIMB Junior when I was 15 years old. Being a CIMB Junior customer has been an exciting experience. There are so many benefits I have been able to get, including the Festival Fantasi Junior. It was quite easy; I only had to save as frequently as I could in order to win a Star Wars experience in London.
Also, the more we save, the more our Junior Points increase. We can redeem the points to see awesome movies, such as Cinderella, Ant-Man, Avengers: Age of Ultron, Inside Out, The Good Dinosaur, and Star Wars: The Force Awakens.
I was very happy to win the Star Wars trip to London. This exclusive prize allowed me to visit London for free, visit famous museums, and I got to visit the very studio where Star Wars was filmed. I also had a meet and greet with the Star Wars cast and crew. The prize was for two, so it was so cool!
I am a satisfied CIMB Niaga customer. Hopefully CIMB Junior can continue giving exciting prizes and I can save more with CIMB Junior.
LEARNING FROM THE
START
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Continuing your lifestyle with Go Mobile, a choice of personal
banking transactions through your mobile device within reach
and unlimited access
OsminaChairaniNovian(Dr.Rani)OwnerofDr.RaniDermatologyClinic
I have been a customer of CIMB Niaga for 15 years (since 1991), when the Bank was still called Bank Niaga. I chose CIMB Niaga as my transaction bank because it had a solid and proven reputation. CIMB Niaga has fulfilled my transaction needs, especially after the Bank introduced CIMB Clicks and Go Mobile. These features have made my daily banking transactions even more convenient. I can easily check my record anytime, anywhere, including to check merchant transactions in my clinic.
I hope CIMB Niaga can continue being the bank with the best services for customers and continue developing banking services, especially CIMB Clicks and Go Mobile.
LIVING FROM THE BEST
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Performance Highlights
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Cruising in the Facebook with Your Loved Ones
and settling all your needs with OctoPay
AldionSianturi,M.MktgMarcommExecutive-Faspay
I am a relatively new customer with CIMB Niaga, but I immediately enjoy the convenience of managing my financial needs. The Go Mobile app, for example, makes my daily financial management easy to do that I do not even have to go to the ATM. For me as an executive who needs to be highly mobile on a daily basis, Go Mobile is very user friendly to operate.
Being a CIMB customer also allows me to access other convenient features such as Octopay. This virtual credit card has been incredibly helpful whenever I have to make online transactions. Unlike my regular credit cards, I do not need to worry about exhausting my limit. Since all I have to do is to create an Octopay virtual number when I need it, my finances are more in control. Hopefully CIMB Niaga will continue developing this type of innovative product.
ENJOYING FROM THE
MOMENT
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Performance Highlights
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Management Discussion and Analysis.102Management Reports.32
Operational Support Review.222Company Profile.58Performance Highlights.04
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Performance Highlights
Implementing your business continuity and cash management
with our trusted and comprehensive BizChannel
SandyPermadiChiefFinancialOfficerLAZADA(PTEcartWebportalIndonesia)
CIMB Niaga is one of LAZADA’s (PT Ecart Webportal Indonesia) operational banks. Enabled by CIMB Niaga’s excellent solutions and services, our operational management in the past three years has been absolutely convenient, and has eventually contributed to increasing our company’s value amid intense market competition.
We truly believe that CIMB Niaga’s service excellence can continue to drive and develop LAZADA’s business, establishing us as a leading e-commerce player. Cash Management & Trade Finance solutions from CIMB Niaga are suitable for our various needs, while the BizChannel@CIMB is a user-friendly internet banking facility.
We would like to take this opportunity to thank the CIMB Niaga Transaction Banking team for their services and solutions, and we wish for continued cooperation going forward.
FACILITATING FROM THE
BEGINNING
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Providing your needs with our sustainable scholarships through CIMB Niaga Peduli programs
TeguhAdePutraRecipientofCreativeIndustryTechnologyScholarshipProgram(BUTIK)CIMBNiaga2014
The scholarship and BUTIK CIMB Niaga program provided Indonesian students with the opportunity to gain experiences and to contribute more substantially to the community. I am proud to be a BUTIK recipient and I am thankful for what I have achieved so far. Hopefully, going forward, CIMB Niaga can continue making way for Young Indonesian Entrepreneurs to work and contribute to their communities.
CARING FROM THE HEART
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Performance Highlights
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Management Discussion and Analysis.102Management Reports.32
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digital platform 2015
GO MOBILE POSTED SIGNIFICANT GrOWTH IN 2015. TOTAL USErS GrEW BY 42.0% TO ArOUND 1.2 MILLION FrOM 839,000 USErS IN 2014. AvErAGE MONTHLY TrANSACTIONS STOOD AT rP816 BILLION AND TrANSACTION vOLUME IN 2015 SUrGED BY 43.3% TO rP9.8 TrILLION FrOM rP6.8 TrILLION IN 2014.
CIMB CLICKS USErS rOSE BY 22.3% TO 1.2 MILLION FrOM 1.0 MILLION THE PrEvIOUS YEAr. TOTAL TrANSACTIONS, FINANCIAL AND NON-FINANCIAL, rEACHED 168 MILLION TrANSASCTIONS FrOM 138 MILLION TrANSACTIONS IN 2014. TrANSACTION vOLUME INCrEASED BY 74.0% TO rP66.7 TrILLION FrOM rP384 TrILLION IN THE SAME PErIOD OF 2014.
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Performance Highlights
Digital Platform 2015
86.6%
22
OF THE TOTAL 164 MILLION CUSTOMErS FINANCIAL TrANSACTIONS, ArOUND 142 MILLION Or 86.6% WErE BrANCHLESS BANKING TrANSACTIONS
DIGITAL LOUNGE BrANCHES
TOTAL USErS OF rEKENING PONSEL BY THE END OF 2015 JUMPED 104.5% TO 1.4 MILLION FrOM ArOUND 674.000 USErS AT THE END OF 2014
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Management Discussion and Analysis.102Management Reports.32
Operational Support Review.222Company Profile.58Performance Highlights.04
Digital Banking Creation
2013 2014Product Innovation to Support Digital Era
CIMB Niaga 2013-2016 Differentiation Strategy
CIMB Niaga digital banking services continuously take into account and adopt customer experience as the differentiator and driver of revenue improvement. Customer experience is summarized and represented by four main pillars, namely security, efficiency, image and closeness. These pillars are translated as CIMB Niaga digital banking services that are able to provide secure, convenient, easy, innovative and borderless services for CIMB Niaga customers.
The success of CIMB Niaga’s digital services started with the branchless banking services of CIMB Clicks, Go Mobile, BizChannel, Phone Banking, Digital Lounge, and innovative product rekening Ponsel, which received a warm response from customers and the general public. ‘Innovation from the Heart’ comes from the tradition of listening, understanding, comprehending, and taking the initiative to offer accurate solutions through product, service, and banking process innovations.
Supporting its goal as a Leader in Digital Banking, the focus of CIMB Niaga
in 2014 was to deliver innovative, secure, easy and borderless banking
services to all customers.
CIMBClicks BizChannel
GoMobile
PhoneBanking
DigitalLounge
RekeningPonsel
CustomerExperience
Efficient
Security
Image
Closeness
Benefits
SecureConvenience
Easy
Innovative
Borderless
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Performance Highlights
2015 2016Enhance Customer Experience through 60 Years of Service Excellence and Digitalization
Service Excellence through Digital Innovation
Supporting 60 years of service excellence, CIMB Niaga Customer Experience continuously delivers the best services and focuses on providing a positive experience to customers. This is done through internal programs that emphasize on the customer-centric culture, digital platforms as an option for transaction channels, improvement initiatives to meet customers’ expectations, refinement of customer complaint-handling and internal campaign “Serving you with all our Hearts”. This campaign is complemented by several motivational programs from BMC, Leader’s Quote, WOW Stories and New Branch Experience.
CIMB Niaga enhances overall customer banking experience by investing in advanced digital technology, consistently developing branchless banking channels including optimizing ATMs, CDMs and SSTs; improving platforms for CIMB Clicks (internet banking) and increasing services of Go Mobile (mobile banking), agent banking and tablet banking – including programs to refine turn-around time in order to create better customer experience. The development of branchless banking service features will be continued together with the plan to optimize branch offices’ function and boost branch productivity.
Serving You with All Our Hearts
is CIMB Niaga’s theme of 2015 as the Bank aims
to enhance customer service through ‘customer
experience’
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Growth of Low-Cost Funds
Efficiency Improvement
Strategic Focus 2015
� Enforced the third-party deposits growth, especially in low-cost funds through strategic expansion of branch offices
� Approached corporate customers using Corporate Client Solutions
� Developed the value Chain by adopting the Ecosystem approach to existing customers and through branchless banking
� Cost-efficiency program
� IT transformation program to increase frontliners and back office productivity
� Stepped up productivity and service speed for customers by enabling one branch office to offer various products using retail Credit System (rCS) and Business Credit System (BCS)
� Corporate Loan Management System (CLMS) application introduced to enhance services for corporate and commercial customers
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Performance Highlights
Sales & Service Transformation
� Improved overall customer banking experience
� Developed branchless banking, such as optimizing ATMs, CDMs and SSTs
� Developed a new platform for CIMB Clicks (internet banking)
� Enhanced the services of Go Mobile (mobile banking), agent banking and tablet banking, and carried out a turn-around time program to improve customer experience
� Improved branchless banking service features
� Optimized and increased branch office function and productivity
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financial highlightsConsolidatedFinancialPositionStatements 2011 2012 2013 2014* 2015**
INFORMATIONONFINANCIALPOSITOINS
CONSOLIDATEDBALANCESHEET
TotalAssets 166,801,130 197,412,481 218,866,409 233,162,423 238,849,252
Earning Assets-net 155,217,002 228,736,503 260,417,854 270,979,099 277,429,171
Loans 125,701,743 145,399,129 156,984,105 176,383,449 177,356,829
Loans-Net 122,284,867 141,644,823 152,909,465 170,274,444 169,958,838
Non-Performing Loans 3,285,941 3,286,909 3,497,420 6,881,335 6,633,404
Impaired Loans 4,534,954 3,892,669 5,045,280 8,440,069 8,914,616
Marketable Securities & Government Bonds-Net 14,852,889 14,261,521 20,036,576 22,310,408 26,046,068
Investments-Net 7,867 10,221 12,108 13,048 13,048
TotalLiabilities 148,431,639 174,760,569 192,979,722 204,714,729 210,169,865
CustomerDeposits 131,814,304 151,015,119 163,737,362 174,723,234 178,533,077
Borrowings 4,999,837 6,226,563 8,591,371 8,814,852 6,684,630
Marketable Securities Issued 1,492,853 4,083,575 5,976,470 5,803,195 4,476,921
Subordinated Loans 3,017,116 3,028,393 2,962,569 2,970,355 2,969,774
Non Controlling Interest 66,884 84,139 94,659 734 788
Equity-Net 18,302,607 22,567,773 25,792,028 28,446,960 28,678,599
INFORMATIONONRESULTSOFOPERATIONS
CONSOLIDATEDINCOMESTATEMENTS
Net Interest Income 7,926,830 9,709,219 10,120,691 10,689,495 11,386,360
Other Operating Income 2,472,784 3,230,965 3,443,763 2,565,481 2,348,842
Total Operating Income 10,399,614 12,940,184 13,564,454 13,254,976 13,735,202
Allowance for Impairment of Financial and Non-Financial Assets
(830,391) (1,142,889) (1,203,481) (3,466,274) (5,360,581)
Other Operating Expenses (5,230,507) (6,056,466) (6,495,003) (6,830,462) (7,111,958)
Operating Income 4,338,716 5,740,829 5,865,970 2,958,240 1,262,663
Non Operating Income/(Expenses)-Net 53,066 46,098 (33,953) 3,378 (121,659)
IncomeBeforeTax 4,391,782 5,786,927 5,832,017 2,961,618 1,141,004
Income Tax Expenses (1,214,822) (1,537,066) (1,535,866) (856,329) (284,869)
NetIncome 3,176,960 4,249,861 4,296,151 2,105,289 856,135
Other Comprehensive Income After Tax 66,027 32,810 (1,062,195) 351,252 (196,192)
TotalComprehensiveIncome 3,242,987 4,282,671 3,233,956 2,456,541 659,943
NetIncomeAttributableto:
Equity holders to parent 3,174,145 4,233,111 4,282,417 2,103,880 856,081
Non-controlling interest 2,815 16,750 13,734 1,409 54
TotalComprehensiveIncomeAttributableto: 3,176,960 4,249,861 4,296,151 2,105,289 856,135
Equity holders to parent 3,240,172 4,265,921 3,220,222 2,455,132 659,889
Non-Controlling Interest 2,815 16,750 13,734 1,409 54
3,242,987 4,282,671 3,233,956 2,456,541 659,943
Earningspershare-Basic 126.77 168.44 170.40 83.74 34.07
IncomeBeforeTax(Actual) 4,391,782 5,786,927 5,832,017 3,200,169 570,004
NetIncome(Actual) 3,176,960 4,249,861 4,296,151 2,343,840 427,885
SHAREDATA
Shares issued (thousand) 25,131,607 25,131,607 25,131,607 25,131,607 25,131,607
Dividends per share (full rupiah)
Final on previous year’s net income - - - - -
Interim on current year’s net income 7.95 - - - -
* Excluding earnings from fixed assets selling** Excluding expenses of MSS (Mutual Separation Scheme)
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Performance Highlights
Financial Highlights
PerformanceRatio 2010 2011 2012 2013 2014* 2015**
FINANCIALRATIOS
I.Capital
Capital Adequacy ratio (CAr) * 13.47% 13.16% 15.16% 15.36% 15.58% 16.28%
CAr Tier I 9.65% 10.23% 12.27% 12.91% 13.33% 14.20%
CAr Tier II 3.82% 2.94% 2.89% 2.45% 2.25% 2.08%
Fixed Assets to Capital 18.07% 16.50% 15.82% 16.20% 16.62% 20.26%
II.AssetQuality
Non Performing Earning Assets to Total Earning Assets 2.55% 2.55% 2.23% 2.10% 3.53% 3.35%
Non Performing Loan ratio 2.59% 2.64% 2.29% 2.23% 3.90% 3.74%
Non Performing Loan ratio - Net 1.92% 1.46% 1.11% 1.55% 1.94% 1.59%
Impairment ratio 3.82% 3.61% 2.68% 3.21% 4.79% 5.03%
Loan Loss Coverage 121.95% 103.98% 114.22% 116.50% 88.78% 111.53%
III.Profitability
return on Assets (rOA) 2.75% 2.85% 3.18% 2.76% 1.33% 0.47%
return on Equity (rOE):
Shareholders 20.88% 19.09% 20.88% 17.74% 7.66% 2.99%
Tier I 23.84% 22.20% 23.41% 19.07% 8.10% 3.10%
Debt to Equity 9.43 8.11 7.74 7.48 7.20 7.33
Debt to Assets 0.90 0.89 0.89 0.88 0.88 0.88
Net Interest Margin (NIM) 6.46% 5.63% 5.87% 5.34% 5.36% 5.21%
Other Operating Income to Operating Income 17.87% 23.58% 24.59% 25.17% 20.81% 17.11%
Cost to Income 48.20% 49.65% 46.17% 47.98% 51.52% 52.67%
Operating Expense to Operating Income 76.80% 76.10% 71.70% 73.79% 87.86% 97.38%
return on Assets (rOA) (Actual) 2.75% 2.85% 3.18% 2.76% 1.44% 0.24%
return on Equity (rOE):
Shareholders (Actual) 20.88% 19.09% 20.88% 17.74% 8.52% 1.50%
Tier I (Actual) 23.84% 22.20% 23.41% 19.07% 9.02% 1.55%
Cost to Income (Actual) 48.20% 49.65% 46.17% 47.98% 50.61% 56.83%
IV.Liquidity
Loans to Deposit ratio (LDr) 88.04% 94.41% 95.04% 94.49% 99.46% 97.98%
Lost Cost Fund ratio 43.58% 43.05% 43.47% 43.99% 44.87% 46.81%
V.Compliance
LLL violation - - - - - -
Statutory reserves-rupiah
Primary 8.30% 8.26% 8.77% 8.12% 8.13% 7.74%
Secondary 10.35% 9.78% 6.79% 9.27% 10.12% 8.94%
Statutory reserves – Foreign Currency 1.02% 8.05% 8.05% 8.17% 8.18% 8.18%
Net Open Position 3.54% 1.72% 0.99% 2.32% 0.76% 1.19%
Net Open Position on Balance Sheet -0.41% 0.58% 2.23% -10.72% -12.03% 5.68%
OTHERS
Total Employees 12,276 13,612 14,224 14,342 15,003 13,577
Total Office Network 751 901 974 984 964 826
Total ATMs 1,304 1,749 2,257 2,956 3,272 3,365
* Excluding earnings from fixed assets selling** Excluding expenses of MSS (Mutual Separation Scheme)
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stock highlights
STOCK PRICE MOVEMENT IN THE PAST 5 YEARS
STOCK PRICE CHART 2015
Rp RpThousand
835
7,876
19,489
14,053
34,343
4,240 3,910 2,806
12,828
5,1092,740
3,774 2,817
795
800
685
720675
650
447
540
665
595
595
Jan’15
900 40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
700
500
300
800
600
400
200
100
0May’15 Sep’15Feb’15 Jun’15 Oct’15Mar’15 Jul’15 Nov’15Apr’15 Aug’15 Dec’15
volume (rHS) Price (rp) (LHS)
803,402
143,680185,206
138,460 113,985.1
1,100
920
835
595
1400
1200
1000
800
600
400
200
0
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Rp RpThousandvolume (rHS) Price (LHS)
2011 2012 2013 2014 2015
1,220
Serving You with All Our Heartsannual report 2015 23
Corporate Data.534Sharia Business Unit Corporate Governance.504
Corporate Social Responsibility.514 Consolidated Financial Report 2015.576Corporate Governance Report.360
Performance Highlights
Stock Highlights
QUARTERLY SHARE PRICE IN THE PAST 5 YEARS
YearPrice/Share TradinginRegularMarket
Highest(Rp)
Lowest(Rp)
Closing(Rp)
Volume(unit)
Value(Rp000)
Frequency
2011 2,050 930 1,220 803,402,000 1,375,831,955 75,663
Quarter I 2,050 1,400 1,860 576,418,000 1,015,123,705 51,787
Quarter 2 1,890 1,670 1,720 97,996,500 172,136,980 10,395
Quarter 3 1,750 930 1,120 91,065,000 141,465,195 8,761
Quarter 4 1,420 1,000 1,220 37,922,500 47,106,075 4,720
2012 1,360 1,010 1,100 143,680,000 171,850,985 15,947
Quarter I 1,290 1,110 1,230 54,085,000 64,936475 5,301
Quarter 2 1,360 1,010 1,100 42,958,000 53,242,360 4,048
Quarter 3 1,250 1,080 1,150 15,355,000 17,892,210 2,712
Quarter 4 1,210 1,060 1,100 31,282,000 35,779,940 3,886
2013 1,540 910 920 185,206,000 232,329,985 18,439
Quarter I 1,440 1,100 1,400 68,176,000 91,701,625 6,941
Quarter 2 1,540 1,140 1,150 59,505,500 82,094,500 5,958
Quarter 3 1,190 910 990 26,300,500 27,483,225 3,143
Quarter 4 1,070 910 920 31,224,000 31,050,635 2,397
2014 1,100 800 835 138,460,000 134,225,902,000 36,357
Quarter I 1,090 880 1,035 53,765,400 51,031,794,000 5,781
Quarter 2 1,100 1,000 1,015 14,658,100 15,241,349,000 2,371
Quarter 3 1,070 945 950 45,316,400 45,663,508,000 16,404
Quarter 4 965 800 835 24,720,100 22,289,251,000 11,801
2015 900 426 595 113,985,100 82,274,299,000 27,990
Quarter I 900 770 800 61,708,300 49,652,047,000 13,118
Quarter 2 805 650 675 22,203,400 16,213,774,000 4,780
Quarter 3 700 426 540 20,743,000 10,826,807,500 7,061
Quarter 4 690 500 595 9,330,400 5,581,670,500 3,031
Serving You with All Our Hearts annual report 201524
Performance Highlights.04
Management Discussion and Analysis.102Management Reports.32
Operational Support Review.222Company Profile.58Performance Highlights.04
bonds sUmmary
No BondNameAmountofBond
PrincipalInterestRate
DateofIssuance
MaturityDate
Rating
1 Subordinated Bonds CIMB Niaga 2005
USD100,000,000 7.75% per annum until 2010; subsequent interest rate followed US Treasury rate plus 6.19% per annum
14 July 2005(Paid in full on 14 July 2010)
14 July 2015
Ba1 - Moody’sBB (June 2010) - Fitch
2 Subordinated Bonds CIMB Niaga in 2006 (ex LippoBank)
USD200,000,000 7.38% per annum until 2011; subsequent interest rate followed US Treasury rate plus 4.16% per annum
22 November 2006(Paid in full on 22 November 2011)
22 November 2016
Ba1 - Moody’sBB+ - Fitch
3 Subordinated Bonds I CIMB Niaga of 2010
rp1,380,000,000,000 11.30% per annum 8 July 2010 8 July 2017 AA - Fitch
4 Subordinated Bonds II CIMB Niaga of 2010
rp1,600,000,000,000 10.85% per annum 23 December 2010
23 December 2020
AA - Fitch
5 Bonds I CIMB Niaga of 2011 Series A
rp180,000,000,000 7.375% per annum 23 December 2011
23 December 2014
AAA - Pefindo
6 Bonds I CIMB Niaga of 2011 Series B
rp1,320,000,000,000 8.300% per annum 23 December 2011
23 December 2016
AAA - Pefindo
7 Shelf Bonds I CIMB Niaga Tranche I of 2012 Series A
rp600,000,000,000 7.35% per annum 30 October 2012
30 October 2015
AAA - PefindoAAA - Fitch
8 Shelf Bonds I CIMB Niaga Tranche I of 2012 Series B
rp1,400,000,000,000 7.75% per annum 30 October 2012
30 October 2017
AAA - PefindoAAA - Fitch
9 Shelf Bonds I CIMB Niaga Tranche II of 2013 Series A
rp285,000,000,000 8.75% per annum 20 November 2013
20 November 2015
AAA - PefindoAAA - Fitch
10 Shelf Bonds I CIMB Niaga Tranche II of 2013 Series B
rp315,000,000,000 9.15% per annum 20 November 2013
20 November 2016
AAA - PefindoAAA - Fitch
11 Shelf Bonds I CIMB Niaga Tranche II of 2013 Series C
rp850,000,000,000 9.75% per annum 20 November 2013
20 November 2018
AAA - PefindoAAA - Fitch
Serving You with All Our Heartsannual report 2015 25
Corporate Data.534Sharia Business Unit Corporate Governance.504
Corporate Social Responsibility.514 Consolidated Financial Report 2015.576Corporate Governance Report.360
Performance Highlights
COUPON PAYMENT CHRONOLOGY
SuBOrDINATED BONDS I CIMB NIAGA 2010Description PaymentDate Amount
Payment of Coupon 1 (one) 8 October 2010 rp38,985,000,000
Payment of Coupon 2 (two) 8 January 2011 rp38,985,000,000
Payment of Coupon 3 (three) 8 April 2011 rp38,985,000,000
Payment of Coupon 4 (four) 8 July 2011 rp38,985,000,000
Payment of Coupon 5 (five) 8 October 2011 rp38,985,000,000
Payment of Coupon 6 (six) 8 January 2012 rp38,985,000,000
Payment of Coupon 7 (seven) 8 April 2012 rp38,985,000,000
Payment of Coupon 8 (eight) 8 July 2012 rp38,985,000,000
Payment of Coupon 9 (nine) 8 October 2012 rp38,985,000,000
Payment of Coupon 10 (ten) 8 January 2013 rp38,985,000,000
Payment of Coupon 11 (eleven) 8 April 2013 rp38,985,000,000
Payment of Coupon 12 (twelve) 8 July 2013 rp38,985,000,000
Payment of Coupon 13 (thirteen) 8 October 2013 rp38,985,000,000
Payment of Coupon 14 (fourteen) 8 January 2014 rp38,985,000,000
Payment of Coupon 15 (fifteen) 8 April 2014 rp38,985,000,000
Payment of Coupon 16 (sixteen) 8 July 2014 rp38,985,000,000
Payment of Coupon 17 (seventeen) 8 October 2014 rp38,985,000,000
Payment of Coupon 18 (eighteen) 8 January 2015 rp38,985,000,000
Payment of Coupon 19 (nineteen) 8 April 2015 rp38,985,000,000
Payment of Coupon 20 (twenty) 8 July 2015 rp38,985,000,000
Payment of Coupon 21 (twenty one) 8 October 2015 rp38,985,000,000
Payment of Coupon 22 (twenty two) 8 January 2016 rp38,985,000,000
SuBOrDINATED BONDS II CIMB NIAGA 2010Description PaymentDate Amount
Payment of Coupon 1 (one) 23 March 2011 rp43,400,000,000
Payment of Coupon 2 (two) 23 June 2011 rp43,400,000,000
Payment of Coupon 3 (three) 23 September 2011 rp43,400,000,000
Payment of Coupon 4 (four) 23 December 2011 rp43,400,000,000
Payment of Coupon 5 (five) 23 March 2012 rp43,400,000,000
Payment of Coupon 6 (six) 23 June 2012 rp43,400,000,000
Payment of Coupon 7 (seven) 23 September 2012 rp43,400,000,000
Payment of Coupon 8 (eight) 23 December 2012 rp43,400,000,000
Payment of Coupon 9 (nine) 23 March 2013 rp43,400,000,000
Payment of Coupon 10 (ten) 23 June 2013 rp43,400,000,000
Payment of Coupon 11 (eleven) 23 September 2013 rp43,400,000,000
Payment of Coupon 12 (twelve) 23 December 2013 rp43,400,000,000
Payment of Coupon 13 (thirteen) 23 March 2014 rp43,400,000,000
Payment of Coupon 14 (fourteen) 23 June 2014 rp43,400,000,000
Payment of Coupon 15 (fifteen) 23 September 2014 rp43,400,000,000
Payment of Coupon 16 (sixteen) 23 December 2014 rp43,400,000,000
Payment of Coupon 17 (seventeen) 23 March 2015 rp43,400,000,000
Payment of Coupon 18 (eighteen) 23 June 2015 rp43,400,000,000
Payment of Coupon 19 (nineteen) 23 September 2015 rp43,400,000,000
Payment of Coupon 20 (twenty) 23 December 2015 rp43,400,000,000
Bonds Summary
Serving You with All Our Hearts annual report 201526
Performance Highlights.04
Management Discussion and Analysis.102Management Reports.32
Operational Support Review.222Company Profile.58Performance Highlights.04
Bonds Summary
BONDS I CIMB NIAGA 2011 SErIES ADescription PaymentDate Amount
Payment of Coupon 1 (one) 23 March 2012 rp3,318,750,000
Payment of Coupon 2 (two) 23 June 2012 rp3,318,750,000
Payment of Coupon 3 (three) 23 September 2012 rp3,318,750,000
Payment of Coupon 4 (four) 23 December 2012 rp3,318,750,000
Payment of Coupon 5 (five) 23 March 2013 rp3,318,750,000
Payment of Coupon 6 (six) 23 June 2013 rp3,318,750,000
Payment of Coupon 7 (seven) 23 September 2013 rp3,318,750,000
Payment of Coupon 8 (eight) 23 December 2013 rp3,318,750,000
Payment of Coupon 9 (nine) 23 March 2014 rp3,318,750,000
Payment of Coupon 10 (ten) 23 June 2014 rp3,318,750,000
Payment of Coupon 11 (eleven) 23 September 2014 rp3,318,750,000
Payment of Coupon 12 (twelve) 23 December 2014 rp3,318,750,000
BONDS I CIMB NIAGA 2011 SErIES BDescription PaymentDate Amount
Payment of Coupon 1 (one) 23 March 2012 rp27,390,000,000
Payment of Coupon 2 (two) 23 June 2012 rp27,390,000,000
Payment of Coupon 3 (three) 23 September 2012 rp27,390,000,000
Payment of Coupon 4 (four) 23 December 2012 rp27,390,000,000
Payment of Coupon 5 (five) 23 March 2013 rp27,390,000,000
Payment of Coupon 6 (six) 23 June 2013 rp27,390,000,000
Payment of Coupon 7 (seven) 23 September 2013 rp27,390,000,000
Payment of Coupon 8 (eight) 23 December 2013 rp27,390,000,000
Payment of Coupon 9 (nine) 23 March 2014 rp27,390,000,000
Payment of Coupon 10 (ten) 23 June 2014 rp27,390,000,000
Payment of Coupon 11 (eleven) 23 September 2014 rp27,390,000,000
Payment of Coupon 12 (twelve) 23 December 2014 rp27,390,000,000
Payment of Coupon 13 (thirteen) 23 March 2015 rp27,390,000,000
Payment of Coupon 14 (fourteen) 23 June 2015 rp27,390,000,000
Payment of Coupon 15 (fifteen) 23 September 2015 rp27,390,000,000
Payment of Coupon 16 (sixteen) 23 December 2015 rp27,390,000,000
SHELF BONDS I CIMB NIAGA TrANCHE I 2012 SErIES ADescription PaymentDate Amount
Payment of Coupon 1 (one) 30 January 2013 rp11,025,000,000
Payment of Coupon 2 (two) 30 April 2013 rp11,025,000,000
Payment of Coupon 3 (three) 30 July 2013 rp11,025,000,000
Payment of Coupon 4 (four) 30 October 2013 rp11,025,000,000
Payment of Coupon 5 (five) 30 January 2014 rp11,025,000,000
Payment of Coupon 6 (six) 30 April 2014 rp11,025,000,000
Payment of Coupon 7 (seven) 30 July 2014 rp11,025,000,000
Payment of Coupon 8 (eight) 30 October 2014 rp11,025,000,000
Payment of Coupon 9 (nine) 30 January 2015 rp11,025,000,000
Payment of Coupon 10 (ten) 30 April 2015 rp11,025,000,000
Payment of Coupon 11 (eleven) 30 July 2015 rp11,025,000,000
Payment of Coupon 12 (twelve) 30 October 2015 rp11,025,000,000
Serving You with All Our Heartsannual report 2015 27
Corporate Data.534Sharia Business Unit Corporate Governance.504
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Performance Highlights
Bonds Summary
SHELF BONDS I CIMB NIAGA TrANCHE I 2012 SErIES BDescription PaymentDate Amount
Payment of Coupon 1 (one) 30 January 2013 rp27,125,000,000
Payment of Coupon 2 (two) 30 April 2013 rp27,125,000,000
Payment of Coupon 3 (three) 30 July 2013 rp27,125,000,000
Payment of Coupon 4 (four) 30 October 2013 rp27,125,000,000
Payment of Coupon 5 (five) 30 January 2014 rp27,125,000,000
Payment of Coupon 6 (six) 30 April 2014 rp27,125,000,000
Payment of Coupon 7 (seven) 30 July 2014 rp27,125,000,000
Payment of Coupon 8 (eight) 30 October 2014 rp27,125,000,000
Payment of Coupon 9 (nine) 30 January 2015 rp27,125,000,000
Payment of Coupon 10 (ten) 30 April 2015 rp27,125,000,000
Payment of Coupon 11 (eleven) 30 July 2015 rp27,125,000,000
Payment of Coupon 12 (twelve) 30 October 2015 rp27,125,000,000
Payment of Coupon 13 (thirteen) 30 January 2016 rp27,125,000,000
SHELF BONDS I CIMB NIAGA TrANCHE II 2013 SErIES ADescription PaymentDate Amount
Payment of Coupon 1 (one) 20 February 2014 rp6,234,375,000
Payment of Coupon 2 (two) 20 May 2014 rp6,234,375,000
Payment of Coupon 3 (three) 20 August 2014 rp6,234,375,000
Payment of Coupon 4 (four) 20 November 2014 rp6,234,375,000
Payment of Coupon 5 (five) 20 February 2015 rp6,234,375,000
Payment of Coupon 6 (six) 20 May 2015 rp6,234,375,000
Payment of Coupon 7 (seven) 20 August 2015 rp6,234,375,000
Payment of Coupon 8 (eight) 20 November 2015 rp6,234,375,000
SHELF BONDS I CIMB NIAGA TrANCHE II 2013 SErIES BDescription PaymentDate Amount
Payment of Coupon 1 (one) 20 February 2014 rp7,205,625,000
Payment of Coupon 2 (two) 20 May 2014 rp7,205,625,000
Payment of Coupon 3 (three) 20 August 2014 rp7,205,625,000
Payment of Coupon 4 (four) 20 November 2014 rp7,205,625,000
Payment of Coupon 5 (five) 20 February 2015 rp7,205,625,000
Payment of Coupon 6 (six) 20 May 2015 rp7,205,625,000
Payment of Coupon 7 (seven) 20 August 2015 rp7,205,625,000
Payment of Coupon 8 (eight) 20 November 2015 rp7,205,625,000
Payment of Coupon 9 (nine) 20 February 2016 rp7,205,625,000
SHELF BONDS I CIMB NIAGA TrANCHE II 2013 SErIES CDescription PaymentDate Amount
Payment of Coupon 1 (one) 20 February 2014 rp20,718,750,000
Payment of Coupon 2 (two) 20 May 2014 rp20,718,750,000
Payment of Coupon 3 (three) 20 August 2014 rp20,718,750,000
Payment of Coupon 4 (four) 20 November 2014 rp20,718,750,000
Payment of Coupon 5 (five) 20 February 2015 rp20,718,750,000
Payment of Coupon 6 (six) 20 May 2015 rp20,718,750,000
Payment of Coupon 7 (seven) 20 August 2015 rp20,718,750,000
Payment of Coupon 8 (eight) 20 November 2015 rp20,718,750,000
Payment of Coupon 9 (nine) 20 February 2016 rp20,718,750,000
Serving You with All Our Hearts annual report 201528
Performance Highlights.04
Management Discussion and Analysis.102Management Reports.32
Operational Support Review.222Company Profile.58Performance Highlights.04
event highlights 2015
27February2015Third Alliance Anniversary of CIMB Niaga & Shizuoka Bank
12March2015CIMB Niaga Economic Forum 2015
10April2015
21-27April2015
Annual General Meeting of Shareholders 2015
CIMB Niaga Indonesian
Masters 2015
13-14June2015Sharia People’s Market
4June2015round Table Asia
Money 2015
Serving You with All Our Heartsannual report 2015 29
Corporate Data.534Sharia Business Unit Corporate Governance.504
Corporate Social Responsibility.514 Consolidated Financial Report 2015.576Corporate Governance Report.360
Performance Highlights
Event Highlights 2015
1July2015
15June2015
Signing Cooperation CIMB Niaga and PT KAI (Persero) “Ticket Online
Transaction through CIMB Niaga Card Sites”
Halal Travel Talkshow with CIMB Niaga Gold Card Sharia
28-30September20159September2015iB vaganza 2015Launching of Investor Account iB Xtra
7December2015
1October2015
Annual Public Expose 2015: 9M Performance review 2015
CIMB Niaga 60th Anniversary
Serving You with All Our Hearts annual report 201530
Performance Highlights.04
Management Discussion and Analysis.102Management Reports.32
Operational Support Review.222Company Profile.58Performance Highlights.04
awards and certifications
"IndonesiaGreenAward"Biodiversity Development, June 2015TheLaTofiSchoolofCSR
DigitalBrandofYear2015CIMBNiagaRekeningPonselCategory
rank 1 E-MoneyInfobankMagazine
RetailBankerInternationalAsiaTrailblazerAward2015Excellence in Internet Banking, Cross Border BankWinner:CIMBNiagaRetailBankerInternationalTimetric
RetailBankerInternationalAsia
TrailblazerAward2015Excellence in Mobile Banking
Customization, Highly CommendedCIMBNiaga
RetailBankerInternationalTimetric
GlobalCSRAward2015CategoryExcellence in Provision of Literacy and Education Award (silver)TPGIThePinnacleGroupInternational
IndonesiaWOWBrand2015Category
Time Deposit (Conventional Bank BUKU III) and Installment Savings
(Conventional Bank)
Serving You with All Our Heartsannual report 2015 31
Corporate Data.534Sharia Business Unit Corporate Governance.504
Corporate Social Responsibility.514 Consolidated Financial Report 2015.576Corporate Governance Report.360
Performance Highlights
Top50ASEANPublicListedCompaniesandTop3PublicListed
CompaniesfromIndonesiaASEANCorporateGovernanceAwards2015
Runner-up,BankersPerformanceCompetition
Singing CategoryIndonesiaBanking
Expo2015 SecondRunner-up“HumanCapital”
BOOK III Assets >rp100 Trillion
IndonesiaBankingAward2015
TheBestOverallIndonesianInstituteforCorporateDirectorship
Top50PublicListedCompanies
IndonesianInstituteforCorporateDirectorship
Awards and Certifications
“BestDigitalBankingInitiative(DigitalLounge)”
The Asian Banker Excellence in retail Financial Services Awards 2015
BestCreditCardProduct(AirAsiaCreditCard)
The Asian Banker Excellence in retail Financial Services Awards 2015
"TheInnovativeHomeLoanBank"PropertiIndonesiaMagazine
MarketConductAwardFinancial Service Business Player Conducting Consumer Protection Principles in the Financial Service Sector Based on Self-Assessment
2015OJKAward2015
Management Reports
“Serving You with All Our Hearts”, our chosen theme for this 2015 Annual report, reflects the Bank’s endeavors to rearticulate its strategic direction to overcome challenges whilst sustaining robust growth.
CIMB Niaga successfully achieved a number of important agreements, particularly in the treasury and bonds market segment. In the credit card segment, the Bank remained a leading player, while consumer banking continued to demonstrate strong growth, driven by innovative strategy implementation and solid loan underwriting standards.
“
34Message from the President Commissioner
38 Board of Commissioners
40 Report from the President Director
48 Directors
50Report from the Syariah Supervisory Board
52Board of Commissioners and Directors Statement of Accountability of Annual Report 2015 PT Bank Cimb Niaga Tbk
54 CIMB Niaga Strategy
Serving You with All Our Hearts annual report 201534
Performance Highlights.04
Management Discussion and Analysis.102Management Reports.32
Operational Support Review.222Company Profile.58
message from the president commissioner
I BELIEvE THE BOArD OF DIrECTOrS
TOOk THE rIGHT STrATEGIC STEPS
IN 2015 TO STrENGTHEN THE BANk’S
OPErATIONS IN THE FACE OF DIFFICuLT
OPErATING CONDITIONS. THE STrATEGIC
STEPS THAT INCLuDED COST-EFFICIENCY
PrOGrAMMES THrOuGHOuT THE GrOuP,
MICrO-BuSINESS rECALIBrATION, ASSET
quALITY IMPrOvEMENTS AND BuSINESS
STrEAMLINING wErE THE rIGHT
MEASurES TO SuSTAIN THE BANk’S
POSITION.
DATO’ SrI NAzIr rAzAkPresident Commissioner
Serving You with All Our Heartsannual report 2015 35
Corporate Data.534Sharia Business Unit Corporate Governance.504
Corporate Social Responsibility.514 Consolidated Financial Report 2015.576Corporate Governance Report.360
Management report
Message from the President Commissioner
DearShareholders,
Last year, my rather bearish predictions for 2015 sadly came true. In fact, I may have even underestimated the severity of the downturn for emerging markets and their currencies, commodity prices and global demand. CIMB Niaga’s 2015 performance was not satisfactory, partly as a result of high provisions, mostly in the coal and coal-related portfolio. However, overall, the Bank was able to absorb the losses and remain in good shape for future growth. The 2015 Annual report’s theme - “Serving You with All our Heart” - outlines efforts to recalibrate our strategic direction to endure the turbulence and remain on a healthy growth trajectory.
The global economic situation, especially the continued instability in the European economies and slowdown in Chinese growth, affected all developing markets. In the commodities sector, the prices of coal, rubber, palm oil and copper have all fallen drastically, while crude oil prices have also plummeted.
The Indonesian economy grew by 4.8%. Over the course of 2015, the rupiah declined by 10.8% against the US dollar. Inflation was recorded at 3.4% and Bank Indonesia kept its reference interest rate at 7.5%. These macro conditions, coupled with the Government’s push for infrastructure development, helped Indonesia remain an attractive investment destination.
The banking industry continued to remain resilient with high CAr. However, the slow economic growth did have an effect on banking loans disbursement, increase in NPL ratio and profits before tax, while financial markets were extremely volatile.
2015PERFORMANCE2015 was a tough year for CIMB Niaga. The Bank’s loan growth was flat, while provisions increased significantly by 54.7% to cover asset quality deterioration, primarily
in the coal and coal-related portfolio, leading to an increase in the loan loss coverage ratio to 111.5%.
On the other hand, operating revenue grew by 3.6%, while the CASA ratio increased to 46.81%. Audited net consolidated profits was rp428 billion in 2015, without Mutual Separation Scheme (Mutual Separation Scheme - MSS) cost, the net profit Business As Usual (BAU) was rp856 billion. In terms of NPLs, the Bank’s strategy to sell some of its non-performing assets successfully saw gross NPL decrease to 3.7% from 3.9%. Looking at other indicators, the Bank’s total assets grew moderately by 2.4% to rp238.9 trillion. Its CAr stood strong at 16.01% at the end of 2015.
CIMB Niaga also concluded a number of landmark deals in 2015, particularly in the treasury business and debt capital market. In the credit card business, the Bank remained a dominant player and our overall consumer banking franchise continued to grow from strength to strength, driven by creative strategies and solid loan underwriting standards.
BOARDOFDIRECTORSPERFORMANCEASSESSMENTI believe the Board of Directors took the right strategic steps in 2015 to strengthen CIMB Niaga’s operations in the face of difficult operating conditions. The strategic steps that included cost-efficiency programmes throughout the Group, micro-business recalibration, asset quality improvements and business streamlining were the right measures to sustain the Bank’s position.
A major development is a new core-banking platform to enable CIMB Niaga to understand its customers better and serve them more efficiently. The 1Platform (1P) initiative was completed in 2015 and went live in early 2016. The Bank also increased its focus on innovative digital banking, such as CIMB Clicks, Go Mobile and rekening Ponsel.
In anticipation of the future operating environment, the Board of Commissioners would like to remind Management to maintain their focus on asset quality management, leadership and coordination among
Serving You with All Our Hearts annual report 201536
Performance Highlights.04
Management Discussion and Analysis.102Management Reports.32
Operational Support Review.222Company Profile.58
units. Management should also focus on liquidity and re-visit business models that need to be revamped, while building a stronger corporate culture.
The latter focus is particularly important if we are to realise our vision: “To Become A Leading ASEAN Company”. This would entail an excellent and solid team within CIMB Niaga, not only in terms of job competence, but also integrity, in line with the our core CHESI: Customer Centric, High Performance, Enabling People, Strength in Diversity and Integrity. Last year, the Bank carried out the ABC campaign (“A Better CIMB Niaga”) that underlined three main behaviours expected from employees: to work hard to serve customers, maintain mutual respect among employees, and being open and collaborative. All of these qualities are central to realising the Bank’s tagline of “Innovation from the Heart”.
The Board of Commissioners also noted the efforts of Management in implementing CSr programmes, primarily focused on education, community development and empowerment, the environment and philanthropy. CIMB Niaga also employed a green banking policy, in which it takes into account environmental analysis documents as a pre-requisite for investment credit, working capital credit and other types of credit offered to customers in sectors such as manufacturing, agriculture, mining and plantations. We are proud to report that for its commitment in CSr, the CIMB Niaga received multiple awards in 2015, including the Global CSr Award for Excellence in Provision of Literacy & Education; Commendation for Best Disclosure for CIMB Niaga Care at the Sustainability reporting Awards, and an Indonesia Green Award in the Indonesia Biodiversity Conservation category.
CHANGESTOTHECOMPOSITIONOFTHEBOARDOFCOMMISSIONERSThere were no changes in the Board of Commissioners’ structure in 2015. In this instance, the Board of Commissioners would like to welcome Tigor M. Siahaan as a new President Director subsequent to the 2015 Annual General Meeting of Shareholders (AGMS) held on 10 April 2015 and effective on 1 June 2015. We
are confident that he will make valuable contributions to the Bank and look forward to working alongside him over the coming years. We would also like to convey our appreciation to Arwin rasyid, following the acceptance of his resignation as the President Director, effective as of the closing of the same AGMS.
ROBUSTCOMMITMENTTOCORPORATEGOVERNANCEThe Board of Commissioners is pleased with the structure and implementation of corporate governance at CIMB Niaga. The governance structure in the Bank facilitates effective communication between the Board of Directors and the Board of Commissioners on all aspects of the Bank and allows quick responses to urgent matters faced by the Bank.
We constantly update and improve the quality of our internal procedures to ensure that all employees adhere to the Bank’s Code of Ethics. The Board of Commissioners appreciates the consistent efforts of the organisation to monitor the standards of corporate governance and best practices related to operational policies and processes. These include risk management, in which the Bank always applies the relevant framework and mechanism rigorously. CIMB Niaga also follows the Basel Accords and works consistently to enhance risk culture across all levels, as well as risk methodologies and risk management implementation capabilities.
To measure our GCG performance, CIMB Niaga exercises self-assessment with reference to ASEAN Corporate Governance Scorecard guidelines. We are proud that the Bank was named among the Top 50 Public Listed Companies in ASEAN, marking its compliance to the ASEAN CG Scorecard. In addition, the Bank again received “The Best Corporate Overall” in “The 7th IICD Corporate Governance Conference & Awards. These awards demonstrate the success of the Board of Directors in applying the principles of good corporate governance and the Management’s commitment to transparency and accountability to stakeholders.
Message from the President Commissioner
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Corporate Social Responsibility.514 Consolidated Financial Report 2015.576Corporate Governance Report.360
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ASSESSMENTOFTHECOMMITTEES’PERFORMANCEDURING2015The Board of Commissioners was actively involved in all progress achieved by CIMB Niaga throughout the year. The focus, activities and recommendations of the CIMB Niaga Board of Commissioners and the activities of committees under the Board of Commissioners are reported in the Corporate Governance section of this Annual report, which will also review the activities of the committees throughout 2015.
We would like to thank all the committees, namely the Audit Committee, the risk Monitoring Committee, the Nomination and remuneration Committee and the Integrated Corporate Governance Committee for their professionalism and commitment.
2016PROSPECTSThe operating environment in 2016 may not change significantly from 2015. We note the continued possibility of regional currencies remaining weak on the back of rising US interest rates and low commodity prices. Economic developments in China will have to be closely tracked, not just in terms of demand for commodities, but also the risk of triggering competitive devaluation among emerging currencies. For major ASEAN countries, the key will be structural reforms to adjust for new realities, including reducing debt levels.
CIMB Niaga’s prospects have been enhanced by the launch of the ASEAN Economic Community, given the Group’s stronger presence in the region than other banks, including business in corporate, commercial, SME, export-import and transaction banking. The
Board of Commissioners also looks forward to the full utilisation of the upgraded core banking system in the coming years to enhance customers’ experiences and enable greater digital sales.
The Board of Commissioners expects to see CIMB Niaga absorb tough lessons from its recent asset quality challenges and recalibrate lending strategies as well as processes. At the same time, we must be cost efficient, service excellent and capital prudent.
As a matter of priority, CIMB Niaga needs to enhance the quality of its human capital, as this is the most important ingredient of the franchise. We are pleased with the significant number of senior-level appointments that followed the appointment of the new President Director and believe that operational improvements will follow. The Board of Commissioners is confident of the Bank’s competence and believes that the Bank will be able to deliver better results in 2016.
APPRECIATIONFinally, we thank all shareholders for their strong support for the Bank. We also convey our deepest appreciation to the Board of Directors for its commitment and for taking the necessary steps to ensure that the Bank sustain its position. To all employees, we would like to express our heartfelt gratitude for the hard work and loyalty and, last but not least, we thank our valuable customers, partners, regulators, and stakeholders for their trust in CIMB Niaga.
DATO’ SrI NAzIr rAzAkPresident Commissioner
On Behalf of the Board of Commissioners
Message from the President Commissioner
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DAvID rICHArD THOMASCommissioner
board of commissioners
DATO’ SrI NAzIr rAzAkPresident Commissioner
GLENN M.S. YuSuFVice President Commissioner
AHMAD zuLqArNAIN ONNCommissioner
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Board of Commissioners
PrI NOTOwIDIGDOIndependent Commissioner
rOY EDu TIrTADjIIndependent Commissioner
zuLkIFLI M. ALIIndependent Commissioner
SrI HArTINA urIP SIMEONIndependent Commissioner
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report from the president director
complemented by net interest margin growth of 9.5% year-on-year (yoy)
Bank recorded operational growth of
4,8%
wE OvErCAME THE DIFFICuLT BuSINESS
CONDITIONS BY INCrEASING SYNErGY
ACrOSS ALL CHANNELS, IMPrOvING Hr
COMPETENCY THrOuGH CONSISTENT
PrOMOTION OF COrPOrATE CuLTurE,
IMPrOvING ALL BuSINESS PrOCESSES
THrOuGH A STruCTurED STrATEGY,
rAISING THE quALITY OF rISk
MANAGEMENT AND FOCuSING ON
DEvELOPING COrE BuSINESS THrOuGH A
PruDENT AND FOCuSED OPErATING MODEL.
I STrONGLY BELIEvE THAT THE rESuLTS
ACHIEvED BY CIMB NIAGA DurING 2015 wILL
PAvE THE wAY FOr A BETTEr YEAr AHEAD.
TIGOr M. SIAHAANPresident Director
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Report from the President Director
DearValuedShareholders,
2015 was an important year for CIMB Niaga, as it marked the Bank’s 60th year in Indonesia. This milestone evidenced the Bank’s achievements amid myriad dynamics and challenges. As one of Indonesia’s leading banks, our presence of six decades speaks of our commitment and dedication. Our brand positioning “Innovation from the Heart” is an embodiment of this spirit. We have an extensive history that reflects our continuous innovation endeavor, from being the first Indonesian bank to offer ATM services in 1987, online banking in 1991, to mobile payment and mobile wallet services in 2013.
Our services have been and always will be about our customers. The Bank’s business segments were set up to support the customers’ needs, be it the daily banking transactions of individual customers that we serve through the Consumer Banking segment, or to enable businesses to grow through the Corporate, Commercial and SME segments, which can accommodate a wide range of customer business sizes. By extension, our services are also dedicated to this nation, as we always ensure that we are in line with the government’s policies and regulations.
I have been at the helm of the Bank for less than a year, but I am very excited to turn a new chapter at CIMB Niaga. I believe that there are plenty of opportunities for us to advance not only as a business entity but also as part of Indonesia. “Serving you with all our Hearts” is this report’s theme, and it aptly describes who we are and what we stand for, as we always serve our customers sincerely.
OVERCOMINGACHALLENGINGBUSINESSSITUATIONThe global and national economies continued to be in a challenging state of flux throughout 2015. At the global level, US recovery coupled with speculation of
Fed rate hike strengthened the US dollar against other world currencies, hampering global economic recovery.
Domestically, meanwhile, the continued sluggish growth of several major trade partners hit demand for basic Indonesian commodities, such as palm oil, rubber and coal – the three leading commodities that continued to experience falls in price. Similarly, the Indonesian Crude Price closed at US$50 per barrel, lower than the $60 per barrel of assumption used in the State Budget (APBN), which reflected the severely contracted oil market.
In other economic indicators, Indonesia showed mixed results. The trade balance, for example, reached a record unmatched since 2011, with a surplus of no less than US$7.6 billion, far above US$1.9 billion in 2014. Furthermore, inflation at 3.4% was lower than the APBN projection of 5.0%.
However, we also need to take note of the dynamics behind the numbers. A trade surplus represents an offset relation between exports and imports, and in 2015 the data meant imports dropped by 19.9% and exports, while doing exceedingly well in some areas, dropped by 14.8%. The relatively low inflation also signaled that purchasing power was not strong, as inflation across most commodity groups was higher, especially for prepared food, beverages, cigarettes and tobacco.
The situation was exacerbated by the fluctuation of the rupiah, which closed at rp 13,795 per US dollar, forcing Bank Indonesia (BI) to maintain a tight monetary policy, maintaining the BI rate at 7.5%. The policy was taken in order to maintain foreign currency reserves and the rupiah exchange rate.
These macroeconomic conditions forced the government and BI to repeatedly revise economic growth targets and, from the middle of the year, release a number of economic packages to drive investment
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Report from the President Director
and boost the economy. In spite of this, however, Indonesia’s economic growth fell from 5.0% in 2014 to 4.8% in 2015, making it the lowest level of economic growth since 2010.
This weakening of the domestic economy posed major challenges for the banking industry. Although the capital adequacy ratio (CAr) was at a strong 21.4%, credit growth at 10.4% was lower than 11.6% last year, while funds grew at 7.3% from 12.3% in 2014. Credit quality was also affected, with NPL rising to 2.5% from 2.2% last year.
2015STRATEGY&INITIATIVESThe challenges in 2015 were not unexpected, as we had projected this. Therefore, we were able to develop plans that we believe to be appropriate considering the landscape.
realizing that many industry sectors were affected by the sluggish global economy, we focused on financing quality and the integration of risk appetite into our strategies. This was coupled with internal revamping across all business aspects, especially product development and cross-selling. We increased synergy across all channels, improving Hr competency through consistent promotion of corporate culture, improving all business processes through a structured strategy, raising the quality of risk management and focusing on developing core business through a prudent and focused operating model.
We emphasize quality asset growth and the forming of close bonds with customers by offering innovative banking products and services supported by the latest IT applications, as well as always meeting customers’ service quality expectations. We constantly remind all frontliners that providing a quality service supported
by innovative products are the goal of our key tagline this year “Serving You with all our Hearts”. We also continually strive to raise efficiency at all operational levels. We believe that emphasizing cost efficiency at all levels is a key factor in increasing CIMB Niaga’s competitiveness and contributes to a positive financial performance.
2015PERFORMANCEANDANALYSISIn my first year as President Director, I would like to report that CIMB Niaga has been able to end a year full of challenges by posting modest performance. Our operational indicators did improve albeit slightly and the Bank began to show signs of financial improvement, at the same time as consistently bolstering its internal foundations. This indicator will boost CIMB Niaga’s ability to capture opportunities for future growth. The Bank performance is the result of our consistent implementation of the Transformation 2 program from the previous years, which was part of the long-term business development plan.
As of the end of 2015, in terms of assets, third party funds, and loans, CIMB Niaga was still the fifth largest bank in Indonesia. In financial terms, amid difficult business conditions, the Bank was able to record net consolidated profits of rp428 billion, including a one-off expense of rp571 billion for the Mutual Separation Scheme (MSS) program. This represents an earning per share (EPS) of rp17.02.
The Bank recorded operating revenue growth of 3.6%, backed by net interest revenue growth of 6.5% year-on-year (yoy). At the same time, however, the Bank recorded provision expense growth of 54.7% yoy as a result of the difficult economic and business conditions, leading to an increase in the loan-loss coverage (LLC)
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ratio to 111.5%. On the other hand, the Bank succeeded in selling several non-performing assets, allowing gross NPL to drop to 3.7% from 3.9% at the same period last year.
Further, as experienced by any banks licensed to trade foreign currency, we also recognized loss from transactions in foreign currency due to weak rupiah throughout 2015.
Taking into account the economic condition, we applied a consistent and selective asset growth policy, hence we recorded credit growth of 0.6% to a credit balance of rp177.4 trillion, with total assets growing 2.4% to rp238.8 trillion. The credit growth was supported by fund-raising capabilities that rose 2.2% to rp178.5 trillion, with LDr posted at 98.0% from 99.5%. The growth of current accounts and savings accounts (CASA) was posted at 6.6% yoy, while Time Deposits slightly decreased by 1.4% YoY, resulting the CASA ratio improved to 46.8% from 44.9% in 2014.
The selective asset growth and CIMB Niaga’s success in posting a profit led to the capital adequacy ratio (CAr) remaining at the level of 16.3% as of 31 December 2015.
By business segment, several business lines still showed robust growth, especially Corporate Banking, Sharia, and Consumer Banking, while others such as MSME and Commercial Banking had to focus on supporting the customers overcoming business challenges.
The Corporate Banking recorded credit growth of 2.7% yoy and non-performing loans (NPL) improved by 37.5%. The Corporate Client Solution closed a number of substantial corporate deals involving treasury, syndicated loan, and cross border deals with several
major corporation in Indonesia. Japan Desk CIMB Niaga, the first in Indonesia, grew soundly in lending and funding. Our alliance with Shizuoka Bank in 2011 has grown into alliance with 5 Japanese regional banks and JCB Ultimate Card has garnered positive response from customers since the launched at the end of 2015.
This success was also the result of our capable Transaction Banking, which successfully enhanced the value of Trade Finance and Trade Loan, implementing value Chain that linked our corporate customers, and innovative Cash Management.
In the Commercial Banking segment, loans declined by 5.1%. Similarly, in the Micro segment, loans dipped by 24.0%., while SME loans grew by 5.0% YoY.
Sharia banking in the meantime closed the year with 13.0% financing growth and 12.1% funding growth. CASA also grew 26.7%, signifying the successful development of Dual Banking Leverage Model framework.
The largest growth of loan was in Consumer Banking with 4.0%, mainly driven by 20.8% credit cards growth, followed by 17.7% personal loan growth, while funding rose by 11.9%. This was supported by the Bank’s commitment in service quality and banking products. The increase in credit card outstanding and personal loan also indicated that we executed appropriate marketing strategies for our personal financial products.
The performance of each business line suggested a number of important things: focus on portfolio diversification, enhancing specific competence of key industries, ability to handle and monitor complex
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deals, and continuous improvement of credit process and administration. These are our lessons learned in anticipating the likelihood of volatile time ahead.
With the overall performance recorded amid difficult business conditions, CIMB Niaga is ready to grasp the opportunities for future growth, accompanied by an economy that is expected to improve.
ACHIEVEMENTSANDTARGETSWe have not been able to avoid impacts of the challenging economic situation in 2015. Indeed, some of our financial indicators performed lower than targets, but we also took note of the indicators that exceeded our initial expectations. Some of the better performance, which went beyond our targets, were financial ratios that were important indicators of the Bank’s future growth, e.g. CASA ratio, net interest margin, loan to deposit, and capital adequacy. Non performing loan ratio was still in the range that we have expected despite the challenging year we are facing, meanwhile, our performance in lending, funding, and other indicators including profit before tax somewhat underperformed.
Despite our financial performance, CIMB Niaga was stil able to lead as the fifth largest bank in Indonesia in terms of assets, credit and third party deposit.
BUSINESSPROSPECTS
ExploitingGrowthOpportunitiesinaStrongerEconomyIn order to ensure growth of the Bank’s competitiveness, strengthen the Bank’s financial foundations and exploit opportunities for future growth, CIMB Niaga will continue to prioritize a strategy of selective asset growth and constant asset quality monitoring. We will increase business focus on the consumer and small and medium-sized enterprise segments in order to drive better performance and boost revenue growth.
Our strategic plan for 2016 includes focus on growth of low-cost funds through our Transaction Banking and Consumer Banking segments. To enhance customers’ banking experience, we seek to transform they way we deliver our sales and services, such as through new features of branchless banking. We also want to continue diversifying our revenue portfolio and strengthen our digital platform. In terms of risk management, we will improve our risk platform and build stronger risk culture.For sharia banking, we want to better prepare its financial and infrastructure foundation to make it the best player in the industry. We will also strengthen synergy with subsidiary PT CNAF to maintain a profitable margin.
On the internal and business process, we have in place a plan for human resource development. responding to the ASEAN Economic Community, we wish to give more opportunities for regional exposure to our employees. Meanwhile, in IT, we are to continue the core banking platform improvement, enhance the capability of our data center and disaster recovery center and refine our IT Infrastructure Library. Our overall strategy is laid out in the Bank’s Strategy Map, which is translated into specific strategies for each business unit and key performance indicators to ensure that all strategies work in alignment.
Alongside business focus, we will also continually strive to increase cost-consciousness, develop innovative products in accordance with client needs, constantly improve service quality and prioritize customer-centricity to maintain the Bank’s position within the Indonesian banking industry. The Bank will also continue its strategy of becoming a frontrunner in digital banking, as well as increasing synergy within CIMB Group to reach growth opportunities at the regional level.
Report from the President Director
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Our five pillars of optimizing existing strengths, growing low-cost funds, increasing efficiency through disciplined cost management, capital optimization in line with risk culture, and increasing IT utilization will be implemented toward the realization of our goal.
BecomingTheLeadingDigitalBankWe continue to pursue our aspiration to make CIMB Niaga as the leading bank in digital services by optimizing the use of the latest technology. We also focus on customer experience as a differentiating factor and we developed our digital banking services as one of the most comprehensive services in the industry.
Currently, we concentrate our IT development on core banking system improvement using 1Platform “Kita Satu” scheme. This ongoing process aims to provide better banking experience and services to all stakeholders at any branch offices and CIMB Niaga digital touch points. It will also enable the Bank to launch the latest IT-backed service, Facebook (FB) Banking.
Our 1Platform “Kita Satu” and touchpoint services project, which will contribute in realizing CIMB Niaga as a leading bank in digital services, steadily shows substantial progress.
The number of transactions using eletronic services throughout 2015 – CIMB Clicks, Go Mobile, rekening Ponsel – and ATM, Self Service Terminal (SST), and Cash Deposit Machine (CDM) continued to increase. In total, branchless banking transactions contributed 80-90% of the total transactions in CIMB Niaga.
In 2015, financial transactions via branchless banking services grew by 16.1%. Specifically, CIMB Clicks
grew by 16.9%; Go Mobile by 40.3%; rekening Ponsel rose by 23.0%; ATM and SST grew by 7.1%; CDM by 38.3%; and BizChannel was up by 43.8%.
These gave us the confidence that with quality services and backed by modern IT system capability, CIMB Niaga will be able to deliver innovative, safe, easy, and limitless banking services to all customers.
GROWINGOURHUMANCAPITALThe achievement of CIMB performance was the result of the hard work, commitment, and dedication of our loyal staff members. recognizing that employees are the backbone of a company, we consistently develop our human capital through strategic priorities that include culture building, talent management and development, productive employee relations, and workforce planning.
We have comprehensive training programs that continue from year to year, such as the Complete Banker and Development Program for our business units as well as our support units. To manage our best talents, we have Talent review Council mechanism where we discuss and plan our people’s growth and development plan.
Last year, we recruited 2,070 people, and in total CIMB Niaga recorded 13,577 employees as of 2015. These talents were identified through our recruitment channels such as campus recruitment, job fairs, and scholarships. CIMB Niaga also helped to nurture Indonesian youth through training for fresh graduates in The Complete Banker (TCB) and Development Programs (DP). A comprehensive set of training - in class, on the job training (OJT), and hands on project - build to prepare them to become next future leaders. Besides banking knowledge, they also get professional mentors to give them experience on how to handle a job in a professional way. CIMB Niaga is the best place to build future career for Indonesian youth.
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Aside from honing their banking skills, we also continuously promote our CHESI values (Customer Centric, High Performance, Enabling People, Strength in Diversity, and Integrity) and campaigning the ABC (A Better CIMB Niaga). We believe that having these values understood and embedded in all staff are important to ensure that they constantly reflect the Bank’s integrity.
BEINGPRESENTINTHECOMMUNITYOther than employee relations, our presence in the community also plays a pivotal role in our overall business performance since we cannot thrive without the support and trust of local communities. At CIMB Niaga our commitment to CSr has always gone beyond compliance.
We are proud that the four pillars of CSr, namely education, community development and empowerment, environment, and philanthropy, have enabled us to contribute meaningfully to society.
Numerous CSr activities took place in 2015, among others: support for National Financial Literacy Movement through ‘Ayo Menabung dan Berbagi’ Program that has succeeded in educating more than 13,627 students in Indonesia from 104 Elementary schools and 22 Junior High schools in Indonesia; CIMB Niaga Creative Industry Technology Excellent Scholarship Program (BUTIK) for 40 students in 2015 and provision of CIMB Niaga Teachers Excellent Scholarship Program to 60 teachers in Indonesia. In addition, CIMB Niaga participates in Blood Donor Program held simultaneously in 34 locations in Indonesia and various philantrophy activities in social community, religious, and natural disaster assistance.
In total, we contributed around rp9.9 billion to well-though-out CSr activities. Our commitment was recognized through a number of awards, including the Global CSr Award for Excellence in Provision of Literacy & Education.
CORPORATEGOVERNANCEANDCOMMITTEES’ASSESSMENTWe strongly believe that CIMB Niaga currently implements corporate governance principles to national and regional standards. GCG principles are applied at all organizational levels, supported by institutional consistency and procedural regulations that are regularly tested and improved according to the latest developments. We implement Integrated Corporate Governance approach, which we elaborate further in the GCG chapter of this Annual report. CIMB Niaga is one of the first companies to apply an integrated approach in it subsidiaries and sister companies in Indonesia.
As part of the region’s largest banking group, with a network covering every corner of ASEAN, we are determined to be a pioneer in the application of the best GCG standards in accordance with the ASEAN Governance Scorecard. The result was noteworthy, as we were recognized as one of the first Indonesian companies to win Top 50 ASEAN Corporate Governance Awards in 2015. We believe that improving GCG quality will improve the Bank’s performance in a sustainable way, in accordance with the goals and benefits of good corporate governance.
In terms of risk management, the Bank continuously applies robust risk management framework. We also applied Basel II and Basel III in 2015, which included a number of projects such as the risk-adjusted performance management. We also seek to continually improve our methodology in defining risk appetite and risk limit. The capability and capacity of the Bank’s first line of defense are consistently enhanced, and through comprehensive training we promote and strengthen risk culture across the organization.
With regard to the implementation of all GCG aspects, the Board of Directors recognizes the role taken by committees in the implementation of the Board’s duties. The committees performed well in ensuring that the Bank’s strategies and priorities were realized according to the conceptualized plan.
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TIGOr M. SIAHAANPresident Director
CHANGESINTHEBOARDOFDIRECTORS’COMPOSITIONThere was a change in the composition of the Board of Directors pursuant to the resolution of the Annual General Meeting of Shareholders held on 10 April 2015. The Meeting accepted the resignation of Mr. Arwin rasyid from his position as President Director, effective as of the close of the Meeting. The Meeting then approved my appointment as the new President Director. This appointment was effective after obtaining OJK approval on 1 June 2015.
In 2015 Mr. Lo Nyen Khing and Mr. Harjanto Tanuwidjaja resigned from their positions as vice Preside