Jakarta, Monday (24/10/2022) -- PT Bank Negara Indonesia (Persero) Tbk. or BNI (stock code: BBNI) continues to record solid performance until the third quarter of 2022, so as to strengthen the company's foundation in facing the challenges of the global economy to the near future.
As of September 2022, BNI's net profit grew 76.8% Year on Year (YoY) to reach Rp 13.7 trillion. This healthy profit growth can still be achieved even though the company implements a selective intermediation function strategy.
Loan growth reached 9.1% YoY to Rp 622.61 trillion with a focus on low-risk segments, Top Tier debtors in each prospective industry sector, and regional champions in each region. It is expected that these high quality credit exposures will have an impact on improving credit quality in the long run.
As a support for loan growth, BNI relies on funding mainly from Current Account Savings Account (CASA), namely savings and current accounts. BNI's CASA ratio reached 70.9% of total third party funds (DPK). This figure is the highest achievement in recent years.
With this performance, BNI's Net Interest Income grew 5.2% YoY to Rp 30.2 trillion. Non-Interest Income also grew well, reaching 7.8% YoY to Rp 11 trillion, driven by digital transactions and fees from the syndication business, so that BNI scored an operating income before provisioning or Pre-Provisioning Operating Profit (PPOP) of Rp 25.8 trillion or an increase of 9.7% YoY.
"We are very grateful that until the third quarter of 2022, we can consistently record solid performance amid various global and domestic economic challenges," said BNI President Director Royke Tumilaar.
He argued that the external conditions in the third quarter were quite challenging, triggered by the escalation of geopolitical tensions, creating a number of new risks amid the effects of the Covid-19 Pandemic which began to subside.
Geopolitical tensions have disrupted supply chains, causing a spike in global energy and food commodity prices. This has also resulted in an increase in the inflation rate, which was then followed by tightening monetary policy in various countries. This trend has the potential to cause a slowdown in economic growth.
"Of course, we will continue to strive to maintain the company's performance so that it can help the government continue the trend of economic recovery and continue to provide investment returns to shareholders," he said.
Royke continued, the company is confident that it can realize positive performance until the end of 2022, supported by a much healthier credit portfolio and continue to prioritize prudential banking aspects.
Moreover, the trend of Indonesia's economic performance is still growing impressively at 5.4% YoY in the second quarter and until the end of the year is estimated to be in the range of above 5.3% YoY.
"This growth trend is still quite good compared to many other countries in the world. So, we are optimistic that we are still on the right track to meet the 2022 profit forecast in accordance with the corporate plan," he concluded.
Financing Distribution
Meanwhile, BNI Deputy President Director Adi Sulistyowati, explained that credit growth performance in the third quarter of 2022 was driven by private corporate loans which reached Rp 211.9 trillion or grew 20.4% YoY, followed by the large commercial segment recorded at Rp 49.4 trillion, which grew 22.3% YoY.
In the small segment, growth was mainly in People's Business Credit (KUR) which was recorded at Rp 51.3 trillion or up 24.3% YoY, and for the consumer segment it reached Rp 106.9 trillion or up 11.3% YoY with the growth mainly in payroll loan products.
"This growth is in line with management's strategy to grow healthily and sustainably by targeting top tier debtors in prospective industry segments accompanied by prudent risk management policies," she said.
Adi Sulistyowati, who is familiarly called Susi, said that the development of BNI's performance until the Third Quarter of 2022 was also supported by a strong level of capital and adequate liquidity as reflected in the Capital Adequacy Ratio (CAR) which was at the level of 18.9% and Loan to Deposit Ratio (LDR) which was at 91.2%.
"In addition, the Liquidity Coverage Ratio (LCR) is at 193% and the Net Stable Funding Ratio (NSFR) is at 124% which shows that BNI has sufficient liquidity to support business growth," she said.
In terms of asset quality, Susi said that Loan at Risk (LAR) has significantly decreased from 25.2% in September 2021 to 19.3% in September 2022, mainly due to a decrease in the number of restructured loans due to Covid - 19.
"We also continue to strive to maintain LAR Coverage or the provision ratio for LAR debtors at an adequate level of 42.7%. In fact, we see that the ability to pay obligations from LAR debtors is getting better, thus driving improvements in interest income, as well as an indication of better customer business recovery after being affected by the pandemic," she mentioned.
BNI Strategy
Royke Tumilaar admitted that the domestic economic outlook may not be as impressive as in the first semester. However, the company still sees that macroeconomic indicators in Indonesia will be quite healthy compared to other countries. Inflation until September was at the level of 6%, and is still quite reasonable for the size of developing countries and next year is expected to improve by under 4%.
Despite the worrying trend of global economic slowdown, Indonesia's economy is expected to remain relatively stable, supported by an effective fiscal and monetary policy mix to maintain stability. Indicators of the external stability of the Indonesian economy also continue to improve, especially from strong foreign exchange reserves and low levels of foreign debt exposure.
"We certainly need to be aware of the potential increased risks that will be faced by the Indonesian economy and banking sector in the future. For this reason, the company is taking proactive steps to maintain profitability in the long term," he said.
BNI's growth strategy will continue to focus on segments that have attractive returns with good credit quality, such as superior sector corporations and their value chains, payroll loans in the consumer segment, and KUR in the small segment.
With this conservative strategy, Net Interest Margin (NIM) is expected to be at a moderate level, but will be compensated by low Cost of Credit or CKPN costs and optimal fee income from customer transactions.
"We believe this is the right strategy in the midst of global economic turbulence, to provide optimal and sustainable results for our shareholders," Royke added.