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Bank Victoria finishes Q2 of 2022 with positive performance
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espite the prolonged COVID-19 pandemic taking its toll on Indonesia and the world’s overall economic conditions, PT Bank Victoria International Tbk recorded a positive performance in the first semester of 2022.
Until the second quarter of the year, third-party funds amounted to Rp 18.07 trillion (US$120.34 billion), showing stability from the previous Rp 18.07 trillion as of Dec. 31 last year. Likewise, loans increased by 4.97 percent to Rp 15.41 trillion from Rp 14.68 trillion. The bank also maintained its liquidity ratio with its macroprudential inclusive-financing ratio increasing to 84 percent from 81 percent on Dec. 31, 2021.
Bank Victoria’s operational performance affects its financial performance. Net-interest income saw a 126 percent increase to Rp 313.29 billion from Rp 138.59 billion on June 30, 2021, increasing the net-interest-margin ratio to 3.21 percent from 1.61 percent on June 30, 2021. During the second quarter, Bank Victoria recorded a net profit of Rp 71.12 billion, showing a 120-percent growth from the previous period in June 2021 with just Rp 32.34 billion.
Key financial-performance ratios also showed a healthy trend with an increased year-on-year of minimum-capital-adequacy requirement increasing to 19.24 percent on June 30 from the previous year’s 16.33 percent. The level of low-cost funds, as indicated by the current-account-savings-account ratio increased yoy to 29.62 percent on June 30 from 24.12 percent in the previous period.
Credit risk is also well-managed, with gross and net non-performing loans decreasing on a yoy basis from 6.84 percent and 3.79 percent. The absence of violations of the maximum-credit limit also helped maintain the compliance ratio.
In order to meet the minimum core-capital requirement of Rp 3 trillion by the end of 2022, the bank needs to increase its capital organically through profit generation, non-productive asset reduction, additional paid-in capital and synergy with strategic partners. By June 30, Bank Victoria had fulfilled the requirements, recording a net profit of Rp 71.12 billion and receiving prepaid capital of Rp 254.5 billion. As of June 30, the bank's core capital amounted to Rp 2.41 trillion.
In addition, on July 21, the bank fully settled its shelf-registered bonds I, Bank Victoria phase I Year 2017, with a principal amount of Rp 300 billion, as part of its obligation as an issuer. It was also a form of the bank management’s commitment to repay debt securities in a timely and appropriate manner.
With such positive results, Bank Victoria received a rating of idA- (Single A Minus) from credit-rating agency PEFINDO on April 12. This demonstrated Bank Victoria to be a feasible bank for investment, based on its security classification and investment-grade category.
The bank is also at the forefront of digital transformation with its digital-based products and services; improvement of IT-infrastructure capabilities; strengthening of human resources; organizational-culture transformation; digital alliances; and collaborations, by always prioritizing the implementation of good-corporate governance and risk management. To date, the bank has launched internet banking, mobile banking (IBMB) and online timed deposits.
