An established Indonesia-based financial services group
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Three months ended 31 March 2013 ("Q1-2013") vs Three months ended 31 March 2012 ("Q1- 2012")
Total interest income increased by IDR6.9 billion from IDR26.5 billion in Q1-2012 to IDR33.4 billion in Q1-2013. The increase was mainly attributable to the increase in consumer financing and finance lease income from PT Batavia Prosperindo Finance Tbk ("BPF") which amounted to IDR7.7 billion due to an increase in the number of customer bookings.
The increase was partially offset by a decrease in the margin interest income of IDR0.8 billion by PT Batavia Prosperindo Sekuritas ("BPS") due to a decrease in financing in margin interest income activity.
Total interest expense increased by IDR13.0 billion from IDR24.2 billion in FY2011 to IDR37.2 billion in FY2012 mainly due to an increase in interest expense from BPF of IDR13.6 billion. The increase in interest expense from IDR22.9 billion in FY2011 to IDR36.5 billion in FY2012 was due to an increase in bank borrowings for its consumer financing business in FY2012, in line with the increase in the number of customer bookings.
Net premiums income
Net premiums income was contributed by PT Malacca Trust Wuwungan Insurance ("MTI") and increased by IDR3.4 billion in Q1-2013 as compared to Q1-2012 due to the growth in the average number of customers and transaction volume in Q1-2013 in line with the growth of the insurance business.
Fee and commission income
Fee and commission income increased by IDR3.6 billion or 13.0% from IDR28.1 billion in Q1-2012 to IDR31.7 billion in Q1-2013.
The increase in fee and commission income was due to the increase in management fees attributable to PT Batavia Prosperindo Aset Manajemen ("BPAM") of IDR0.8 billion, income from administration fees and penalties from BPF of IDR2.3 billion and equity brokerage commission and underwriting fee attributable to BPS of IDR0.5 billion.
The increase in management fees attributable to BPAM was due to an increase in Assets Under Management (AUM), while the increase in income from administrative fees and penalties attributable to BPF was mainly due to an increase in administrative fees for new customer loans in BPF. The increase in equity brokerage commission and underwriting fee attributable to BPS was due to an increase in equity trading volume (Q1-2012: IDR3.8 trillion, Q1-2013: IDR5.4 trillion).
Operating expenses increased by IDR2.5 billion or 5.8% from IDR43.1 billion in Q1-2012 to IDR45.6 billion in Q1-2013. The increase was mainly due to an increase in general and administrative expenses of IDR1.3 billion and an increase of professional fees of IDR1.0 billion.
The increase in general and administrative expenses of IDR1.3 billion was mainly due to the expenses incurred for the operation of BPF's new branches and MTI.
The increase in professional fees was mainly attributable to MTI due to increased outsourcing fees incurred, in-line with the increase in the number of outsourced employees.
Allowance for impairment of receivables
The increase in allowance for impairment of receivables of IDR0.2 billion from Q1-2012 to Q1-2013 was mainly due to an increase in the provision made to the trade and other receivables based on management's assessment that the collectability of trade and other receivables will deteriorate.
The decrease in other income of IDR1.6 billion from Q1-2012 to Q1-2013 was mainly due to a decrease in the gain on investment.
The increase in other expenses of IDR0.8 billion from Q1-2012 to Q1-2013 was mainly due to foreign exchange loss.
Review of financial position (Group):
Total assets increased by 26.2% from IDR1,007.4 billion as at 31 December 2012 to IDR1,270.9 billion as at 31 March 2013. The increase was mainly due to an increase in trade and other receivables of IDR304.4 billion as a result of the growth in the consumer financing business by BPF and an increase of customer buying transaction volume by BPS in Q1-2013 during the last three days prior to 31 March 2013.
Total liabilities increased by 44.9% from IDR558.4 billion as at 31 December 2012 to IDR809.3 billion as at 31 March 2013.
Trade and other payables increased by IDR262.7 billion from IDR137.6 billion as at 31 December 2012 to IDR400.3 billion as at 31 March 2013 mainly due to an increase in payables to BPS's client deposit accounts as a result of an increase in customer selling transaction volume during the last three days before 31 March 2013.
Cash flows statements
Q1-2013 vs Q1-2012
Net cash used in operating activities was IDR33.4 billion in Q1-2013. In Q1-2013, the operating cash inflows before working capital changes were IDR7.0 billion. The net cash outflows from changes in working capital were mainly due to an increase in trade and other receivables of IDR306.7 billion, as a result of the increase of customer buying transaction volume by BPS, and partially offset by an increase in trade and other payables of IDR252.8 billion due to an increase in customer selling transaction volume.
Net cash flow used in investing activities was IDR5.7 billion in Q1-2013 mainly due to net additions of financial assets at fair value through profit and loss which amounted to IDR5.7 billion, the net proceeds from the acquisitions of plant and equipment which amounted to IDR1.5 billion and the acquisition of subsidiaries (PT Strait Finance) which amounted to IDR1.1 billion, partially offset by proceeds from the disposal of shares to non-controlling interests of IDR2.6 billion.
Net cash inflow from financing activities amounted to IDR15.6 billion in Q1-2013. This was mainly due to proceeds from restricted time deposit amounting to IDR27.7 billion, which was partially offset by net repayments of bank borrowings amounted to IDR9.1 billion and dividend paid which amounted to IDR2.9 billion.
Cash and cash equivalents of the Group was IDR158.9 billion as at 31 March 2013.
The Central Bank of Indonesia had in February 2013 forecasted better economic growth of about 6.3% to 6.8% for Indonesia. This economic growth is expected to be driven by continuing increase in household consumption, strong investment, and expected increase in exports.
The Group will continue to explore opportunities to collaborate with strategic partners through strategic alliances, joint-ventures, merger and acquisitions, and other investments as and when opportunity arises. Barring any unforeseen circumstances, the Board expects the Group to remain profitable for the financial year ending 31 December 2013.