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Achieve Excellence Performance, BNI continues to be encouraged to Go International

Achieve Excellence Performance, BNI continues to be encouraged to Go International

Jakarta, 30 January 2022 -- The leap in performance of PT Bank Negara Indonesia (Persero), Tbk. (BNI) 2021 received appreciation from the government as the controlling shareholder. This state-owned company with the mandate of the International Bank from Indonesia continues to be encouraged to strengthen its position in expanding its global business, while helping to restore a sustainable economy after the Covid-19 Pandemic.

As for BNI's performance is to record a net profit in 2021 of Rp 10.89 trillion, growing 232.2% year on year (yoy), or three times the profit in 2020. The achievement of this net profit is generated from Operational Income Before Reserves or Pre-Provisioning Operating Profit (PPOP) which grew strongly 14.8% yoy to reach Rp 31.06 trillion.

Healthy credit growth of 5.3% yoy to Rp 582.44 trillion, which was also supported by a strong Net Interest Margin (NIM) at 4.7%. Commission-based income (FBI) was able to hoist with a growth of 12.8% yoy. BNI believes that there is still room to continue to grow in the future.

The credit growth was supported by Third Party Funds (DPK) which reached Rp 729.17 trillion or grew 15.5% yoy, and brought BNI to a very sufficient liquidity situation and far exceeded last year's credit growth.

The Minister of State-Owned Enterprises, Erick Thohir said that BNI was able to make a very positive performance in the midst of the pandemic which had not yet fully recovered. This proves the reliability of management and BNI Hi-movers in carrying out the transformation in order to continue to look for more dynamic economic growth niches.

"With this achievement, BNI is expected to be a catalyst for national economic recovery both during the pandemic and post-pandemic. We also hope that BNI will become a healthy BUMN that is managed cleanly and transparently as the basis for good corporate governance," he said at the BNI Business Meeting 2022 in Jakarta, Saturday (29 January 2022).

Erick hopes that BNI can continue to increase its focus in encouraging international business expansion. Moreover, this year's global economic growth momentum is projected to be stronger so that there are many new growth opportunities that can be optimized by corporate business actors as well as MSMEs.

Erick believes that the issuer with the BBNI code is considered successful in creating a growth ecosystem between MSMEs and the diaspora, such as in the United Arab Emirates (UAE). In the future, it can become a reliable model that can be duplicated in many BNI global operational areas.

"As we saw in the UAE, we have succeeded in collaborating with the diaspora and MSMEs. This is an effort to continue to create jobs for all Indonesians abroad. Of course this is also a step to support the expansion of our economic performance," he added.

Furthermore, Erick believes that BNI has the potential to optimize the momentum of the G20 Indonesia Presidency 2022. BNI will become a bridge to realize various new sustainable economic projects. The momentum of the G20 can also be used by BNI to showcasing its global services.

"Hopefully with better macroeconomic conditions and a positive performance in 2021 this can be BNI's capital in responding to all stakeholder expectations. BNI must also carry out transformations and innovations to increase capabilities in its performance. Of course also in the core value of AKHLAK," he added.

Alert and Optimistic in one breath

On this occasion, the Minister of Finance of the Republic of Indonesia Sri Mulyani Indrawati appreciated the performance of BNI management which has been able to close the 2021 performance by increasing credit and raising very positive third party funds.

According to her, BNI's performance shows BNI's ability to maintain trust in the government with very good governance in its operations. Efficiency efforts are also carried out very well and carefully so as to increase BNI's competitiveness in supporting a faster economic recovery.

"So if BNI gets impressive results, it's the hard work of all BNI people. This deserves applause. It is the result of the focus and efforts made by management. We also hope that all BNI people have the enthusiasm to continue to make improvements on all fronts. There can be no exceptions. Alert and Optimistic in one breath. Flexible but not losing focus," she said.

Furthermore, Sri Mulyani continued, the government has tried to manage the function of the State Budget to prevent the adverse effects of the pandemic and make the economy move more efficiently. The fiscal deficit is quite reasonable compared to other countries, which can reach around 20% of the GDP of countries such as India and Brazil. Meanwhile, Indonesia can keep its deficit level lower with a faster economic recovery.

"This is the time for all corporations including BNI to come back out and improve economic performance. The state budget is slowly retreating to restore its condition. The government is preparing an exit policy and together and leaving the extraordinary policy for the past 2 years. This exit policy will be one of the important discussions in the G20. That's why we need to build good communication to create a coordinated recovery design," she added while adding that if the government and the business world worked together to restore the economy, it would be in line with the mission of the Indonesian G20 Presidency, namely Recover Stronger, Recover Together.

On this occasion, BNI's President Director Royke Tumilaar said that efforts to improve credit quality were carried out very well. The ratio of non-performing loans was at 3.7% and loan at risk was at 23% at the end of last year and continues to show a downward trend. This is also a momentum for the company to be more active in promoting the national economic recovery.

"The improvement in NPL and LaR shows that there is still room for continued growth," he said.

With a well-planned transformation program, BNI has also been able to strengthen competitiveness and increase margins by reducing many aspects of operating expenses. BNI has also been able to increase its capital last year with the issuance of Alternative Tier I Capital of around Rp. 8.6 trillion, thereby raising the capital adequacy ratio to a position of 19.7%, from the end of 2020 which was recorded at 16.8%.

Royke said BNI is a Bank that has a mandate to become a global Bank to encourage domestic business actors to increase foreign market penetration. BNI is also expected to be able to become an investment consultant for domestic global business players to invest in Indonesia.

"Of course, we are very grateful for the support from the government. From the policies and support. We can achieve this financial performance, of course, it cannot be separated from the support from the Ministry of Finance, the Government and other stakeholders," added Royke. (*)

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