Jakarta, 16 August 2021 -- PT Bank Negara Indonesia (Persero) Tbk continues to strengthen its business fundamentals through BNI Corporate Transformation which is starting to show positive results as capital in facing challenges and competition in the financial industry, in accordance with the results of the financial statements for the position of Semester I 2021 which has been audited by the Public Accounting Firm (Audited). The Company produced Pre-Provisioning Operating Profit (PPOP) which continued to grow in the last 5 quarters, where in Semester I – 2021 it peaked with a growth of 24.4% year on year (YoY) or Rp. 16.1 trillion
The solid PPOP was supported by strong Net Interest Income (NII) growth of 18.2% YoY or reached Rp 19.3 trillion. This is the impact of loan growth of 4.5% YoY, so that BNI's total credit reaches Rp 569.7 trillion in June 2021. PPOP was also supported by Non-Interest Income growth of 19.2% YoY or Rp 6.8 trillion, resulting from strong Fee Based Income, both from: (i) Account Management and Debit Cards, (ii) ATM and service channels electronic, (iii) Trade Finance, and (iv) Marketable Securities.
Net profit increased by 12.8% YoY or Rp 5.0 trillion in Semester I – 2021, following the provision that continued to be strengthened to 215.3% in anticipation of facing potential credit risk in the future. BNI recorded healthy lending, dominated by prospective business sectors with low risk, both in Business Banking and Consumer Banking segments. Loans in Business Banking Segment reached Rp 475.6 trillion or grew 3.5% YoY. The highest growth was in small business segment at 20.6% YoY with debit balance reaching Rp 91 Trillion, followed by Corporate Private at 7.9% YoY with Debit balance reaching Rp 179.1 Trillion.
Meanwhile, credit in Consumer Banking segment recorded a growth of 10.4% YoY or reached Rp 92.8 trillion. Payroll-based Unsecured Loans recorded a growth of 19.6% YoY or Rp 32.7 trillion, and followed by housing loans which grew 6.3% YoY or Rp 47.6 trillion. The growth of consumer credit can also indicate that public consumption is starting to be enthusiastic which supports the growth of National GDP.
In line with the shareholder's mandate to the company to focus on becoming a bank with superior international capabilities, during Semester I – 2021 it is also reflected in the contribution of related businesses to the company's revenue.
Fee Based Income sourced from marketable securities grew 115.4% YoY or reached Rp 1 trillion. Likewise, Fee Based Income sourced from Trade Finance services, grew 20.4% YoY or reached Rp 732 billion.
Highest CASA
The loans that were channeled selectively only to quality debtors were supported by Third Party Funds (DPK) which grew 4.5% YoY or Rp. 646.6 trillion, where the low-cost funds or CASA collected were getting stronger. The CASA ratio in June 2021 was recorded at 69.6% or the highest in the last 10 years, which was Rp. 450.1 trillion or grew 11.5% YoY compared to the same period last year. This growth in deposits has become a buffer for asset growth of 5.0% YoY or reached Rp 875.1 trillion.
The growth of assets, which are dominated by low-cost funds, is one of the achievements of the digital transformation that the Company is actively pursuing and has begun to show results, where 70% of the collected CASA is a contribution from the performance of BNI Direct and BNI Mobile Banking, 2 of the 3 BNI champion products in digitizing banking services.
Digital Transformation
The digital transformation carried out by the Company has a uniqueness that is not owned by most banks that are currently trying to enter the world of digital banking. BNI combines the two worlds of banking services currently exist, namely Conventional Bank and Financial Technology industry. As a conventional bank, BNI now has access to public funding, has loyal customers, has developed financial products and services, each deposit is guaranteed in accordance with the regulations of the Deposit Insurance Corporation (LPS), and has space to continue lowering the cost of funds, which in Q2-2021 will become 1.6%.
On the other hand, BNI also collaborates with Fintech which is agile in adapting to new changes, mastering an online-based ecosystem, able to operate at an efficient and automated cost, and very familiar with the services expected by millennial.
This combination makes BNI a leader in open banking ecosystem services or API, where as of June 2021 it has produced 283 types of services, or the most compared to other banks, and is used by 3,000 clients, including Fintech and E-commerce Companies.
In addition to BNI Open API, BNI has also developed Cash Management Services through BNI Direct, as well as Financial Supply Chain Management which can both be used to serve Corporate, Business, Fintech and e-commerce customers. This superior digital service is widely preferred because it provides complete financial management benefits, ranging from payment management; collection management; liquidity management; to the presentation of account information, and reporting. This variety of benefits has driven the growth in the number of users by 16.4% year on year or as many as 68,229 companies in June 2021, the transaction value increased by 10.8% year on year or worth Rp. 2,030 trillion, and the number of transactions also grew by 175.6% year on year to 214 million transactions.
Another excellent digital product is BNI Mobile Banking, which is growing very rapidly to become the main service of choice for retail customers. The indication can be seen in the number of users which increased by 56.8% YoY or as much as 9.29 million following the pandemic which prompted people to limit their activities outside the home, work from home, and transact online. Likewise, the transaction value increased by 31.8% YoY or Rp 287 trillion. Similarly, the number of transactions increased by 54.2% YoY or as many as 204 million transactions.
Encouraging MSMEs to Go Global
BNI received a mandate from the Ministry of SOEs to become an international bank from Indonesia that can encourage domestic business actors to access global markets through strengthening the role of overseas branch offices. BNI has also prepared an integrated solution for MSME players by establishing Xpora, which can be used as a means for MSMEs to promote the class step by step starting from being productive (Go Productive), then being able to take advantage of digital facilities (Go Digital), until they are ready to penetrate the international market (Go Global).
With this complete development pattern, Xpora is expected to be a solution to the debottlenecking that has been experienced by MSMEs, who are starting a business or who are expanding their market overseas. Xpora is also prepared to provide an integrated, complete, financial solution that will be the first unique breakthrough in Indonesia. Xpora will be the MSME Ecosystem Orchestrator that will bring together domestic MSMEs with potential international buyers. BNI prepares Xpora in 7 cities by maximizing the best locations at BNI branch offices, namely in Jakarta, Solo, Bandung, Denpasar, Surabaya, Medan, and Makassar.
Improvement Signal
The Company captures a signal of strong optimism that fosters business confidence going forward. Therefore, the Company has scheduled a share buyback program for the period from 22 July 2021 to 21 October 2021, which reflects the strengthening of fundamental conditions as a result of the transformation program carried out.
The fundamentals of the Company's business are reflected in: First, Progressive Digital Transformation with the most advanced mobile banking applications, feature-rich open banking services and the most sought after by companies. Second, Healthy efficiency, is shown by the continued decline in cost of funds to become the second lowest in the industry and discipline in managing operating costs. Third, Asset Quality is getting better, as indicated by the consistent improvement in LaR from 28% in June 2020 to 25.8% in June 2021.
For more information, please contact:
BNI Corporate Secretary
Phone: 021-5728387
Email: bni@bni.co.id