PT Bank Negara Indonesia (Persero) Tbk or BNI managed to close the year with strong fundamentals. BNI's net profit rose to IDR 21.5 trillion, higher than the previous year's figure of IDR 20.9 trillion. This growth was driven by digital transformation which managed to increase savings by 11% year-on-year (YoY), from IDR 232 trillion in 2023 to IDR 258 trillion in 2024.
BNI President Director Royke Tumilaar said BNI's ability to maintain savings growth amid liquidity challenges reflects the company's strong competitiveness in facing economic challenges, both domestic and global.
“Our achievements in 2024 are an important momentum to face the future. We are optimistic that by continuing to innovate and focus on customer needs, BNI will achieve sustainable growth,” Royke said in the Financial Performance Presentation 2024 in Jakarta, Wednesday (22/1/2025).
As one of the pillars of national banking, BNI is always committed to supporting Indonesia's economic growth by utilizing existing expansion opportunities. The potential for significant and sustainable business growth is in line with the government's Asta Cita such as infrastructure development, energy and food security, SME empowerment, industrial down streaming, and national housing programs.
BNI's performance achievement in 2024 is also supported by the success of digital transformation through the launch of the latest mobile banking application, namely wondr by BNI for the retail segment and BNIdirect for the business and corporate segments. These two digital innovations are part of the Company's strategic initiatives in encouraging an increase in transactional CASA to total Third-Party Funds (DPK).
Digital Initiatives Drive Savings Growth
BNI Deputy President Director Putrama Wahju Setyawan explained that digital transformation has a positive impact on the company's overall performance, including driving savings growth. BNI's total deposits until the end of December 2024 reached IDR 805.5 trillion, where there was almost double growth in the value of savings in the second semester after the launch of wondr by BNI.
“The focus on digital transformation that we carried out throughout 2024, made a positive contribution to BNI's overall performance. We believe BNI's profitability will be sustainable by focusing on low-cost funding,” Putrama said.
Since its launch on July 5, 2024, the number of wondr by BNI users reached 5.3 million by the end of December 2024, with an active rate more than double that of the previous application, BNI Mobile Banking.
Banking transactions through wondr by BNI in less than six months since its launch reached IDR 191 trillion with 195 million transactions. This increase in transactions also boosted non-interest income by 11.9% YoY to IDR 24.04 trillion.
Furthermore, BNIdirect provided banking services for the wholesale banking industry, which helped the company's performance. BNIdirect's innovative single sign-on functionality enables corporate customers to access a variety of banking services from a single integrated platform.
Until the end of 2024, the value of transactions through BNIdirect increased 23.3% YoY to IDR7,931 trillion, with the number of transactions increasing 36.5% YoY to reach 1.2 billion transactions. Meanwhile, BNIdirect users reached 173 thousand users, up 15% YoY. In line with BNI's goal to increase transactional current accounts to 72% of total current accounts compared to 66% in 2023.
BNI's steps in increasing CASA were also carried out through the transformation of branch office network outlets throughout Indonesia. Until the end of 2024, 247 outlets have implemented a new format to improve digital-based customer experience and outlet productivity.
Solid Financial Performance
BNI Finance Director Novita Widya Anggraini revealed that BNI's intermediation performance grew positively and balanced, in line with the national economic recovery. Loans grew 11.6% YoY to IDR 775.87 trillion from IDR 695.09 trillion in the same period the year prior.
This loan growth was supported by the corporate segment which rose 17.6% and consumer which increased 14.5%. Subsidiaries also recorded significant loan growth of 79.7% YoY with maintained profitability.
Prudent credit expansion was followed by strengthening asset quality, reflected in the Non-Performing Loan (NPL) which fell to 2%, and Loan at Risk (LaR) and Credit Cost fell to 10.3% and 1.1%, respectively.
“Despite our strong asset quality, BNI remains cautious and grows conservatively amid global uncertainty,” Novita said.
With healthy loan growth coupled with operational efficiency, pre-provisioning income (PPOP) was able to show improvement. On a quarterly basis, PPOP for the three-month period in Q4-2024 touched a high of IDR 9.5 trillion, bringing the total PPOP throughout 2024 to IDR 34.83 trillion.
BNI has made adequate provision for CKPN (Loan Loss Provisioning) during 2024, reflected in Loan at Risk Coverage which reached 48.8% and NPL Coverage which was maintained at 255.8%. These solid fundamentals provide the foundation for BNI to grow prudently in 2025.
BNI also received additional liquidity from Bank Indonesia's Macroprudential Liquidity Incentive Policy (KLM) of 2.6% in 2024. “The KLM incentive allows us to continue to record healthy credit growth in 2024 with an LDR ratio of 96%,” said Novita.
With healthy credit growth and supported by strong deposits, especially from retail savings growth, BNI was able to maintain its Net Interest Margin (NIM) ratio in 2024 at 4.2%. In addition, NII also consistently grew quarterly so that BNI managed to record a total NII of IDR 40.48 trillion in 2024.
Strengthening the role of subsidiaries is also increasingly visible through Synergy between BNI Group which is one of the main strategies in supporting sustainable performance. BNI Finance recorded credit growth of 88% YoY, while hibank recorded 76% YoY in 2024.
Joint financing cooperation between BNI and BNI Finance as well as the MSME ecosystem at hibank, is a source of future growth that contributes to the achievement of the company's performance.
Realizing Sustainability Practices
For the record, Director of Risk Management David Pirzada said BNI has implemented strategic steps in various operational and financing aspects to support sustainability practices.
“In risk management, we have implemented the Climate Risk Stress Test (CRST) in accordance with the Climate Risk Management System (CRMS) guidelines from the Financial Services Authority (OJK). By 2024, the implementation of CRST will cover 50% of the credit portfolio in the six main industrial sectors and mortgages, while this year it will increase to 100% of BNI's credit portfolio,” said David.
David also explained that in terms of operations, BNI has started a more responsible waste management program. “In 2024, we started the Solid Waste Management program at the Head Office. The waste management process is now directed towards the Zero Waste to Landfill (ZWTL) principle with a focus on applying the principles of reduce and recycle,” he added.
In the financing aspect, David disclosed, throughout 2024, BNI's sustainable financing portfolio was recorded at IDR190.5 trillion or equivalent to 25% of the company's total credit. Of this amount, IDR73.4 trillion was allocated for green financing, and IDR117 trillion for MSME financing.
“BNI is committed to being a strategic partner for debtors in supporting the green transition. We realize this through an increase in Sustainability Linked Loan (SLL) financing which until December 2024 reaches IDR6 trillion,” said David.
Furthermore, David said, BNI also actively provides education to debtors through the BNI ESG Sustainability & Transition (BEST) Event program and Technical Assistance Workshop for debtors in the energy sector in supporting the implementation of the Indonesian Sustainable Finance Taxonomy (TKBI).
“This effort is BNI's real step to create a sustainable positive impact, both in terms of internal operations and support for business partners,” concluded David.