SEABANK

INTRODUCTION

PT Bank Seabank Indonesia (SeaBank) is a digital financial institution owned by Sea

Group (NYSE:SE), the parent company of e-commerce site Shopee and online game
publisher Garena. SeaBank is known as PT Bank Kesejahteraan Ekonomi (Bank BKE). The
Economic Welfare Bank was founded on February 27, 1992 by Prof. Dr. was founded by
Soemitro Djjohadikusumo. Its business focus is the financing of Civil Servants (PNS)
through the Civil Service Pratama Cooperative (KPRI) with an executive pattern in providing
solutions to employees, especially in the public sector, as well as strengthening cooperatives.
Since 2015, BKE has a Consumer Credit Center (SKK) which is a kind of credit factory for
products supported by technology infrastructure development by knowing Telkom Indonesia
through electronic cooperatives in terms of PPOB and payments so that members of this
cooperative can carry out transactions such as electricity, telephone, PDAM and ATM and
EDC (Electronic Data Capture), bancassurance for example selling micro insurance. Based
on Notarial Deed No. 37 by Siti Pertiwi Henny Shidki, H.H., Notary in Jakarta. And then it
was established based on document no. 122 dated November 20, 1991 by the same notary
and has been ratified by the Minister of Justice of the Republic of Indonesia (now Ministry of
Law and Human Rights of the Republic of Indonesia) on November 27, 1991 with Decree
No. C27107HT .01.01 . Th.91 and announced in the State Gazette of the Republic of
Indonesia Number 528 No. On February 11, 1992, Bank BKE started its business as a bank
on February 27, 1992. The authorized capital of Bank BKE is currently Rp 5 billion which is
divided into 500 million shares with a par value of Rp. 10,000 per share, with 41.56 shares.
000 issued and paid-up capital of Rp. 2,078,129,490,000 consisting of 207,812,949 shares.
Until the end of 2020, Bank BKE recorded an increase in assets of Rp. 3,469 billion and the
addition of more than 300 employees. Bank BKE currently has 12 service offices consisting
of 8 branch offices and 4 sub-branches spread across several major cities in Indonesia. As for
ATMs, Bank BKE (SeaBank Indonesia) currently has 22 ATMs in each branch and public
area supported by the ATM Bersama network. Bank BKE also supports SMS Banker which
can be used by all customers.
Based on the Decree of the Deputy Commissioner for Banking Supervision of the
Financial Services Authority Number KEP-12/PB.1/2021 dated February 10, 2021. Officially
changed its name to PT. Bank SeaBank Indonesia (SeaBank). The change was approved by
the Ministry of Law and Human Rights (Kemenhunham) based on Decree No. AHU-
0002728.Ah.01.02 of 2021 issued by the Menhunham on January 15, 2021 concerning
Approval of Amendments to the Articles of Association of Limited Liability Company PT
Bank Seabank Indonesia. Furthermore, based on Letter No. S-32/PB.33/2021 issued by the
Head of the Department of Bank Supervision 3 of the Financial Services Authority dated 17
February 2021 regarding Changes to Bank Logos. Launched the first digital banking.
SeaBank's offer is savings and transactions via mobile, anytime and anywhere. SeaBank is a
digital banking application that helps you carry out financial activities, from saving to
transacting, via mobile anytime and anywhere. SeaBank's first product is a Savings account,
which makes it easier to manage daily financial activities & provides savings in one account
with high interest rates.
I. Analyze company performance using financial ratio, DuPont ration and capital
structure ratio and explain the trend
1. Financial Ratio
Financial ratio analysis is an analytical method used to determine the relationship of
certain items in the balance sheet or income statement. By using financial ratio
analysis, we can find out whether or not a good picture of the financial condition of a
company when compared with comparison figures that are used as standards, so that
we can find out where the advantages or disadvantages of the company that are the
object of research are. Some financial ratios are Net Profit Margin (NPM), Return on
Asset (ROA) and Return on Equity (ROE).
a. Net Profit Margin (NPM)
This ratio shows the level of net profit earned by the company from every sale
it makes. Based on BSM's Net Profit Margin (NPM) from 2009 to 2018 and for
2019-2021 it has not been found due to losses, the NPM obtained fluctuates. As
shown in Table

Year Net Income (NI) Operating Income Net Profit

(OI) Margin (NI/OI)
2009 21.323.068.754 30.407.789.234 70,12%
2010 34.718.344.003 47.367.264.772 73,29%
2011 44.104.217.524 59.517.348.469 74,10%
2012 49.175.343.276 66.013.214.833 74,49%
2013 48.878.287.458 66.126.672.934 73,92%
2014 15.091.000.000 19.342.712.041 78,02%
2015 14.302.541.955 21.202.643.927 67,46%
2016 42.072.098.263 58.124.381.185 72,38%
2017 14.317.857.189 20.088.931.971 71,27%
2018 18.093.476.005 23.709.677.112 76,31%
2019 (-136.500.455.971) (-144.964.225.578)
2020 (-598.100.000.000) (-572.600.000.000)
2021 (-303.156.000.000) (-312.119.000.000)
In 2009 the NPM value was 70.12%. This shows that for every sale of 1 (one)
million rupiah. Then in the next period, in 2010 the NPM value of seabanks
increased by 3.17% to become 73.29%. However, in 2011 the NPM obtained by
seabank was 0.81%, so that the NPM value became 74.10%. Seabank's NPM
value in 2012 was 0.39%, bringing the NPM value to 74.49%. The NPM value in
2013 decreased by 0.57%, so that the NPM value decreased by 73.92%. The NPM
value in 2014 increased by 4.1%. So that the NPM value becomes 78.02%. In
2015 the NPM value decreased again by 10.56%, bringing the NPM value to
67.46%. In 2016 the NPM value increased by 4.62%, bringing the NPM value to
72.38%. In 2017 the NPM value decreased from the previous year of 1.11%, so
that the NPM value became 71.27%. In 2018 the NPM value increased by 5.04%,
so the NPM value became 76.31%.
The highest NPM value achieved by seabank is the NPM value in 2014.
Basically, the increase or decrease in the NPM value is due to changes in the
percentage of each component that makes up profits and costs in the financial
statements. Based on the resulting NPM value, the best seabank financial
performance was achieved in 2014 with the highest NPM value. This means that
the profitability of seabank in 2014 was better. While the lowest NPM value was
 obtained in 2015. This shows that the financial performance of Seabank in 2015
was worse than in other years..
In 2019, the Bank recorded a net loss of Rp. 136.50 billion, while at the end of
2018 the bank still achieved a net profit of Rp. 18.09 billion. The loss was due to a
decrease in net interest income of the bank by 25.80% (yoy) to Rp146.22 billion
and the establishment of an allowance for impairment of financial assets (CKPN)
of Rp144.79 billion or an increase of 217.98% (Rp99.25 billion). ) compared to
last year. In 2020, the Bank recorded a net loss of Rp598 billion, higher than the
net loss at the end of 2019 of Rp137 billion. The loss was mainly due to an
increase in the allowance for impairment of financial assets by Rp.257 billion, the
bookkeeping of allowance for impairment in the value of non-financial assets by
Rp.98 billion and an increase in operating expenses by Rp.108 billion. The Bank
recorded a significant growth in net interest income of 134.59% or Rp238.44
billion from Rp177.15 billion in 2020 to Rp415.59 billion in 2021. Operating
expenses increased by 2.80% to Rp778.54 billion in in 2021 from Rp757.35
billion in 2020. The Bank also managed to record a profit starting in December
2021 so that the net loss throughout 2021 which was recorded at Rp313.40 billion
was lower than the net loss in 2020 of Rp598.10 billion. In 2021, the Bank
recorded a net loss of Rp313 billion, lower than the net loss in 2020 of Rp598
billion, driven by high growth in interest income.
b. Return on Asset (ROA)
ROA is a financial ratio that describes the level of the company's ability to benefit
from each use of company assets. The ROA values generated by BSM are shown
in Table respectively

Year Return on Asset (ROA)

2009 2,14%
2010 2,66%
2011 2,59%
2012 2,48%
2013 2,40%
2014 (-0,06%)
2015 0,93%
2016 2,12%
2017 0,55%
2018 0,57%
2019 -3,20%
2020 -14,11%
2021 -5,17%
Based on the ROA value shown in the table above, the 2009 ROA value was
2.14% and increased by 0.52% in the 2010 period so that the ROA value reached
2.66%. This is because in 2004 the net profit was Rp. 34,718,344,003,-. The ROA
value in 2011 was 2.59% and decreased by 0.11% in the 2012 period so that the
ROA value reached 2.48%. The ROA value in 2013 was 2.40% and decreased by
2.34% in the 2014 period so that the ROA value reached -0.06%. The 2015 ROA
value was 0.93% and increased by 1.19% in the 2016 period so that the ROA
value reached 2.12%. The 2017 ROA value decreased from the previous 1.57%, to
0.55% and increased by 0.02% in the 2018 period so that the ROA value reached
0.57%. Meanwhile, in 2019-2021 ROA experienced a very rapid decline.
c. Return on Equity (ROE)
 ROE adalah financial ratios that show the level of the company's ability to
return shareholder capital. This ratio measures how much net profit the company
can generate on its invested capital (equity). During the period 2009 – 2021, the
ROE value shown by seabanks tends to increase compared to the 2011 ROE
value, although the ROE value in the year has decreased, as shown in Table

Year Return on Asset (ROA)

2009 13,94%
2010 19,70%
2011 22,11%
2012 21,42%
2013 18,82%
2014 -5,69%
2015 4,72%
2016 13,19%
2017 4,52%
2018 6,22%
2019 -41,17%
2020 -49,72%
2021 -18,02%

II. Analyze How To Make Financing Decision

As of the end of December 2011 – 2015, Bank Kesejahteraan has no record of the use
of debt or receivables in the company's business activities.
A. Debt in 2016
Debt securities issued by the Bank - net in 2016 was recorded at Rp168.24 billion.
This amount was obtained from Bank BKE's 2016 Subordinated Bonds I issued
on December 22, 2016 amounting to Rp170 billion on the Indonesia Stock
Exchange. This Subordinated Bond has a term of 5 (five) years, which will mature
on December 22, 2021 and bears a fixed interest rate of 11.85% per annum.
Interest on the Subordinated Bonds is paid every 3 (three) months, with the first
payment being made on March 22, 2017 and the last payment being made at the
same time as the principal payment. The Bank's total equity in 2016 was recorded
at Rp363.95 billion, an increase of Rp40.14 billion or 12.40% compared to 2015
of Rp323.81 billion. This increase was due to an increase in unappropriated
retained earnings of Rp42.07 billion in 2016, up from minus Rp4.77 billion in
2015 so that the unappropriated retained earnings as of December 31, 2016 was
recorded at Rp37.31 billion. The increase in retained earnings was a contribution
of Rp42.07 billion in 2016. Based on the Bank's self-assessment, as of December
31, 2016, the Bank's risk profile was rated at level 2 which states that the Bank is
obliged to meet a minimum capital of 9% to 10%. The Bank's Minimum Capital
Adequacy Ratio (KPMM) as of December 31, 2016 was recorded at 22.23%,
exceeding the minimum limit set by Bank Indonesia of 9% to 10%.
1. Capital Adequacy Ratio
As of the end of 2016, the Bank's capital adequacy ratio was recorded at
22.23% compared to 16.13% in the previous year. In accordance with the
regulations stipulated by Bank Indonesia, the minimum capital adequacy ratio
for banks is 9% to 10%. The Bank's capital adequacy ratio of 22.23% indicates
that the Bank's capital structure has the capacity to offset market risk and
 credit risk where the ratio is still higher than the minimum adequacy ratio set
by the regulator through Bank Indonesia. Increase in CAR Ratio in connection
with the issuance of subordinated bonds I 2016 on December 22, 2016
amounting to Rp170 billion and has been listed on the Indonesia Stock
Exchange
2. Non-performing loan ratio
The gross and net NPL ratio in 2016 experienced a positive improvement.
Gross NPL in 2015 was recorded at 2.74%, decreased to 2.07% in 2016.
Meanwhile, net NPL also decreased from 0.84% in 2015 to 0.46% in 2016.
This was due to improvements in the The focus of the Bank's performance is
to take measurable steps in the lending process so that the collectibility level
of some debtors improves.
B. Debt in 2017
Debt securities issued by Bank-net in 2017 were recorded at Rp. 168.51 billion.
This amount was obtained from Bank BKE's 2016 Subordinated Bonds I issued
on December 22, 2016 amounting to Rp170 billion on the Indonesia Stock
Exchange. This Subordinated Bond has a term of 5 years, which will mature on
December 22, 2021 and bears a fixed interest rate of 11.85% per annum. Interest
on the Subordinated Bonds is paid every 3 (three) months, with the first payment
being made on March 22, 2017 and the last payment being made at the same time
as the principal payment. Total Capital as of the end of 2017 reached Rp. The
increase in Equity was due to the formation of reserves from profit for the 2016
financial year of Rp. 18.25 billion. The Bank's ability to fulfill all obligations,
both long-term and short-term can be seen from the calculation of the Solvency
and Collectibility Ratio, Liquidity Ratio and Profitability Ratio as described in the
following table:

 Solvency and Collectibility

1. Capital Adequacy Ratio
As of the end of 2017, the Bank's capital adequacy ratio was recorded at 14.80%
compared to 22.23% in the previous year. In accordance with the regulations
stipulated by Bank Indonesia, the minimum capital adequacy ratio for banks is 9%
to 10%. The Bank's capital adequacy ratio of 14.80% indicates that the Bank's
capital structure has the capacity to offset market risk and credit risk where the
ratio is still higher than the minimum adequacy ratio set by the regulator through
Bank Indonesia.
2. Non-performing loan ratio
The gross and net NPL ratio in 2017 experienced a positive improvement. Gross
NPL in 2016 was recorded at 2.07%, increasing to 3.58% in 2017. Meanwhile net
NPL also increased from 0.46% in 2016 to 1.91% in 2017. This was due to
improvements in the the Bank's performance focus is to take measurable steps in
the process of lending so that the collectibility level of some debtors improves.
C. Debt in 2018
Debt securities issued by Bank-net in 2018 were recorded at Rp. 168.83 billion.
This amount was obtained from Bank BKE's 2016 Subordinated Bonds I issued
on December 22, 2016 amounting to Rp170 billion on the Indonesia Stock
Exchange. This Subordinated Bond has a term of 5 years, which will mature on
December 22, 2021 and bears a fixed interest rate of 11.85% per annum. Interest
on the Subordinated Bonds is paid every 3 (three) months, with the first payment
being made on March 22, 2017 and the last payment being made at the same time
as the principal payment. Total capital until the end of 2018 reached Rp441.04
billion or an increase of 17.75% (Rp66.50 billion) compared to the total capital at
the end of 2017 (yoy) which was recorded at Rp374.57 billion. The increase in
equity came from the paid-in capital from the shareholders of PT Danadipa Artha
Indonesia in the amount of Rp. 63 billion and net profit for the financial year 2018
of Rp. 18.09 billion as well as the unrealized loss on securities in the available-
for-sale group of (Rp. 14.77). ) billion. The Bank's ability to fulfill all obligations,
both long-term and short-term liabilities can be seen from the calculation of the
Solvency and Collectibility Ratio, Liquidity Ratio and Profitability Ratio as
described in the following figure.:

Cap
ital Adequacy Ratio The achievement of the CAR ratio at the end of 2018 was
16.49% or 1.69% higher than the CAR ratio at the end of 2017 which was recorded at
14.80%. The increase in the CAR ratio was related to the additional paid-in capital of
Rp63 billion and the addition of unappropriated retained earnings of Rp18,093 billion.
Meanwhile, compared to the budget, it was 2.30% higher. To maintain a minimum
CAR of 14.50%, the Bank takes the following steps: 1. Issuing subordinated bonds of
Rp. 170 billion at the end of 2016. 2. Underwriting through credit insurance, so that
the credit risk weight becomes 0%. 3. Conducting Repo transactions (Securities sold
with an agreement to repurchase
 D. Debt in 2019
Debt securities issued by the Bank - net in 2019 was recorded at Rp169.18 billion.
This amount represents Bank BKE's 2016 Subordinated Bonds I issued on
December 22, 2016 amounting to Rp170 billion on the Indonesia Stock Exchange.
This Subordinated Bond has a term of 5 years, which will mature on December
22, 2021 and bears a fixed interest rate of 11.85% per annum. Based on the
General Meeting of Bond Holders (RUPO) of Bank BKE 2016 Subordinated
Bonds I which was held on 19 November 2019 and has received OJK approval to
make a buyback in accordance with OJK letter No. S-15/PB.33/2020 dated
February 19, 2020. Payment of interest and repurchase (buyback) was carried out
effectively on March 5, 2020, amounting to Rp. 174.14 billion. Total capital until
the end of 2019 reached Rp318.79 billion or decreased by 27.72% (Rp122.24
billion) compared to the total capital at the end of 2018 (yoy) which was recorded
at Rp441.034 billion. The decrease in capital was mainly influenced by the Bank's
net loss which reached Rp136.50 billion. The cause of the loss in 2019 was related
to the formation of a large allowance for impairment losses (CKPN) due to the
decline in credit quality and preparations for the implementation of PSAK 71.
Ability to Pay Debt is the ratio between total current assets and total current
liabilities. From this comparison, it can be seen that the Bank's ability to meet all
of its liabilities, both in the long term and in the long term. Meanwhile,
collectibility is the rate of return of credit to banks that provide loans. The purpose
of determining the collectibility of receivables is to determine the quality of
receivables so that banks can anticipate credit risk early because credit risk can
affect the continuity of the bank's business. In addition, the determination of the
collectibility of receivables is used to determine the level of reserves for potential
losses due to non-performing loans.

E. Debt for 2020-2021

On March 5, 2020, the Bank effectively repaid the principal and interest of its
subordinated bonds amounting to Rp174 billion. Total equity at the end of 2020
reached Rp1,325 billion, an increase of Rp1,006 billion compared to total equity
at the end of 2019 due to additional capital by shareholders.
III. Dividene Policy Decision
The company's dividend policy must pay attention to the shareholder's perception
of the company's prospects due to asymmetric information. To maintain a positive
perception of shareholders, companies should continue to strive to distribute
dividends on a constant basis. In addition, in the absence of a dividend cut, the
company should continue to maintain its investment activities optimally by
considering funding sources while maintaining a pecking order behavior, namely
prioritizing internal funding through retained earnings, if this is not possible, then
use external funding with long-term debt, and alternatively. the last is through the
issuance of new shares. In deciding external funding sources, it is absolutely
necessary for the company to consider the cost of capital in order to maintain
optimal dividend and investment levels. This is because dividend policies,
investment decisions and funding decisions in imperfect capital markets are
characterized by taxes, transaction costs, and asymmetric information, which
affect the value of the company which is reflected in its share price.
 CONCLUSION
The company's dividend policy must pay attention to the shareholder's perception of
the company's prospects due to asymmetric information. To maintain a positive perception of
shareholders, companies should continue to strive to distribute dividends on a constant basis.
In addition, in the absence of a dividend cut, companies should continue to maintain their
investment activities optimally by considering funding sources while maintaining a pecking
order behavior, namely prioritizing internal funding through retained earnings, if this is not
possible, then use external funding with long-term debt, and alternative the last is through the
issuance of new shares. In deciding external funding sources, it is absolutely necessary for the
company to consider the cost of capital in order to maintain optimal dividend and investment
levels. This is because dividend policies, investment decisions and funding decisions in
imperfect capital markets are characterized by taxes, transaction costs, and asymmetric
information, which affect the value of the company which is reflected in its share price..
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