Jakarta, 26 April 2022 -- PT Bank Negara Indonesia (Persero) Tbk or BNI (stock code: BBNI) maintained a solid performance expansion at the beginning of this year in line with strong economic growth. Credit quality continued to improve, thus increasin the company's ability to accelerate revenue printing earlier of the year. The high level of financial transactions has also become a source of growth in Fee Based Income (FBI), which encouraged progressive profit growth.
BNI President Director Royke Tumilaar explained that printing profits were higher in the first quarter of this year reaching Rp 3.96 trillion, growing 63.2% year-on-year (yoy). This net profit achievement was resulted from Operating Income Before Reserves (PPOP) which grew strongly by 7.3% yoy to Rp 8.5 trillion.
This operational income achievement is even the highest BNI has ever generated, higher than operating income before the pandemic. In addition, efforts to improve credit quality through effective monitoring, handling and policies resulted in a sharp decline in credit reserve costs by 26.1% yoy.
The total loan balance disbursed during the first quarter of 2022 grew 5.8% yoy to Rp 591.68 trillion. This position is already higher than pre-pandemic condition, namely Q1 2020. Other positive performance indicators related to asset quality, liquidity, and efficiency are also getting better, thus helping to achieve higher operating income.
"We are grateful that BNI was able to maintain a solid performance at the beginning of this year. This performance is one sign of recovery as well as better economic growth this year," he said.
In the future, Royke said, BNI will continue to improve credit performance with a growth range of 7% to 10% this year. This performance acceleration will be strongly supported by plans for stronger and quality credit disbursement in all segments and positive macroeconomic trends such as more open economic activity and strong commodity prices.
“With the easing of the impact of the spread of the Corona-19 Virus of Omicron variant, this economic activity will continue to encourage the improvement of BNI's asset quality," he said.
Performance of Intermediation Function
Credit in the Business Banking segment is still the motor of BNI's credit business acceleration. This growth was mainly financing to the Private Corporate segment which grew 9.9% yoy to Rp 193.2 trillion; the Large Commercial segment which grew 24.5% yoy to Rp 46.1 trillion; the MSME segment also grew 11.8% yoy with a credit value of Rp 98 trillion.
Overall credit in the Business Banking sector grew 4.8% yoy to Rp 489.3 trillion. The increase in credit expansion in all segments is in line with the condition of the national economy which has also begun to recover.
The targeted sectors in the business banking segment are trade, infrastructure and manufacturing industries. In fact, financing of the green segment continues to show the need for financing with a large ticket size as well as quality. This can be a driving force for syndicated loans, one of the pillars of the Company's corporate loans.
From the consumer side, payroll loans and home ownership loans posted a positive strengthening at the beginning of this year with growth of 18.8% and 8.4% yoy, respectively. Overall, consumer credit grew 11.4% yoy. This is because BNI consumer banking brand is well-formed so that it is able to provide very strong competitiveness in competing with peers to serve the financing needs of the public.
BNI Finance Director Novita Widya Anggraini continued, during the economic recovery period earlier this year, BNI also strengthened its capital and liquidity position. Of course, these liquidity and capital conditions are the foundation for continuing stable performance as well as supporting more positive business growth.
Third party funds grew 8.4% yoy, with the current account and saving account (CASA) ratio still dominating and continuing to increase to 69.2% from 67.9% in the same period last year.
“The growth of these low-cost funds has driven the improvement of the Cost of Fund from 1.74% at the end of the first quarter of 2021 to 1.46% in the first quarter of 2022. The room for expansion is still open. It is shown from the loan to deposit ratio which is at 85.02%. On the capital side, the capital adequacy ratio (CAR) is at 19.3%, up 120 basis points yoy," she said.
Novita said that the improvement in credit risk also provided support for improving performance which was very good at the beginning of this year. BNI's loan at risk in Q1 2022 was recorded at 22.1%, or improved by 4.8% yoy. Likewise, BNI's non-performing loan (NPL) ratio continued to improve 60 basis points yoy to 3.5% from 4.1% in the same period last year.
"Credit restructuring due to the pandemic continues to show increasingly positive improvements in early 2022. Covid-19 restructuring loans were recorded at Rp 69.6 trillion, down from the position in the same period last year of Rp 84.3 trillion. In fact, BNI debtors affected by the pandemic have started making payments, so we are optimistic that the trend of improving credit quality will continue in all segments," she said.
Digital Service Performance
BNI IT and Operations Director Y.B. Hariantono added that BNI's digital banking performance was no less interesting. BNI is proactive in increasing service capacity and capability in encouraging and developing digital solutions for customers.
"The more features and services that customers can take advantage of through the Super App Ecosystem of BNI Mobile Banking, this service has become increasingly of customers’s favorite. BNI Mobile Banking is also ranked 1st in Mobile Banking Application on Google Play Store," he said.
Y.B. Hariantono explained, the Company noted that the number of users of BNI Mobile Banking application had reached 11.47 million customers in Q1 2022, an increase of 34% yoy. The number of transactions increased significantly by 34.7% to reach 128 million transactions with a transaction value of Rp. 175 trillion, growing 26.8% yoy.
"Of course, we will continue to maintain and improve this excellent achievement. BNI continues to strengthen its existence to become the main banking service channel for Indonesian banking customers," he said.
Y.B. Hariantono said that the strengthening of the digital ecosystem would continue at the beginning of this year. So far, BNI has established partnerships with more than 4,000 Application Programming Interface (API) partners, with a total of 443 services. This BNI API Open Banking is one of the product champions for BNI digital services besides BNI Mobile Banking.
The function of banking to provide access to financial services to the public, especially in remote areas, is also continuously improved by making branchless banking services or BNI Agen46 smart agents the spearhead. The number of agents who are extensions of this bank has reached more than 150 thousand agents to help reach segments of society that have not been served by formal financial institutions. Transaction value of Agen46 BNI has reached Rp 18.6 trillion.
"Not to forget, electronic money services through BNI's Tapcash product also support a new transaction discipline that reduces cash transactions. A total of 8.54 million Tapcash cards in circulation are able to support transportation, F&B and minimarket transactions with a transaction volume of Rp 310 billion," he said.