In the first semester of 2019, PT Bank Negara Indonesia (Persero) Tbk (IDX: BBNI) continued to record solid credit growth of 20% year on year (YOY), from Rp 457.81 trillion in Semester I in 2018 to Rp 549.23 trillion in 2019 I. The realization of the credit shows that the intermediation function carried out by BNI is running optimally and in line with government efforts that continue to drive the momentum of economic growth, amid conditions of uncertain global financial markets.
BNI's credit growth was driven by corporate financing which reached 51.9% of BNI's total loan portfolio, with a focus on financing in leading sectors with relatively low risk, particularly in the manufacturing, trade, restaurant and hotel sectors, and business services. This is in line with BNI's strategy, which is to maintain the composition of corporate loans in the range of 50% to 55% of total loans. BNI's corporate loans were channeled to private and state-owned enterprises, each of which grew 27.8% YOY and 24.9% YOY.
The credit disbursed to small business segment also recorded good growth of 21.5% YOY, including distribution of People's Business Credit (KUR) which became the government's main program in improving the community welfare. As for the medium segment credit, moderate growth was maintained at 7.6% YOY.
As for the Consumer Segment, Payroll-based Unsecured Loans are still the main contributor to growth, namely 12.8% YOY. While for mortgages and credit cards still recorded growth of 8.9% and 4% YOY, respectively.
BNI's solid lending is supported by BNI's ability to maintain liquidity amid tight financial market conditions, where Third Party Funds (DPK) grew 13% YOY, from Rp 526.48 trillion in Semester I of 2018 to Rp 595.07 trillion in Semester I of 2019. BNI was also able to maintain the ratio of low-cost funds as indicated by the composition of CASA which reached 64.6% of total DPK.
In an effort to raise these low-cost funds, BNI continues to develop digital banking services, increase synergies with various State-Owned Enterprises (SOEs), and develop services for government agencies. The success in this effort can be proven by the increased number of accounts around 7.5 million from 39 million accounts in Semester I of 2018 to 46.5 million accounts in Semester I of 2019. In addition, BNI also continues to increase the number of branchless banking from 94 thousand to 124 thousand Agen46 accompanied by promotional agency partnership activities.
Profitability
Another achievement of BNI which is also very good is the growth of Non-Interest Income or fee-based income, where in Semester I grew 11.6% YOY. 96.5% of BNI's Non-Interest Income was supported by recurring fees which recorded a growth of 16.6% YOY, to Rp 5.2 trillion. This growth contributed 21.6% to BNI's total operating income in Semester I of 2019.
The increase in Non-Interest Income in the first semester of 2019 was driven by fee contributions from the business banking segment, including fees from trade finance which grew 15.8%, syndicated fees which grew 76.5% and bank guarantee fees which grew 1.3%, while the rest of the Consumer & Retail business growth included debit card management fees with a 65.3% growth, and card business fees which grew 12.9%.
In addition to Non-Interest Income, BNI also recorded the grow of Net Interest Income of 1% YOY, namely from Rp 17.45 trillion in Semester I of 2018 to Rp 17.61 trillion in Semester I of 2019. From the overall growth of Net Interest Income, Non-Interest Income, and maintained operating costs that grew 7%, BNI recorded a net profit of Rp 7.63 trillion in 2019 Semester I which grew by 2.7% YOY, from Rp. 7.44 trillion in Semester I of 2018.
In terms of asset quality, BNI Gross NPL recorded an increase to 1.8% in Semester I of 2019 from the same period in the previous year 2.1%. Credit cost also showed an improvement with a decrease of 1.7% in Semester I of 2018 to 1.4% in Semester I of 2019, while coverage ratio continued to increase from 150.2% in Semester I of 2018 to 156.5% at the end of Semester I of 2019.
For more information, please contact:
Corporate Secretary BNI
Phone: 021-5728387, Email: bni@bni.co.id