Three musketeers: Bank Bukopin president director Glen Glenardi (center), retail director Agus Hernawan (right) and financial director Tri Joko Prihanto share a light moment before presenting the bankâs 2013 financial performance in Jakarta on Tuesday
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Publicly-listed lender PT Bank Bukopin booked a net profit of Rp 934.6 billion (US$82.2 million) in 2013, an 11.97 percent increase from Rp 834.7 billion it gained in 2012.
'Due to economic uncertainty last year, many banks experienced difficulties and some did not grow at all. Fortunately, Bukopin saw growth in profit and generally performed well,' Bank Bukopin president director Glen Glenardi said during a press briefing in Jakarta on Tuesday.
According to Glen, the bank's net profit growth was mainly due to the 6.42 percent surge in lending, from Rp 45.53 trillion in 2012 to Rp 48.45 trillion the following year.
As much as 40 percent of Bank Bukopin's total lending was disbursed to small and medium enterprises, 32 percent to commercial, 14 percent for consumer loans, the rest was disbursed as micro credit as well as several others. Glen added that Bukopin's net interest income increased 16.07 percent year-on-year from Rp 5.13 trillion to Rp 5.95 trillion, while fee-based income also increased 18.38 percent from Rp 663.7 billion to Rp 785.7 trillion.
Although its lending grew, Bank Bukopin recorded a lower net interest margin (NIM), from 4.56 percent in 2012 to 3.82 percent in 2013. The lender also saw a 31.57 rise in interest expenses to Rp 3.5 trillion from Rp 2.66 trillion due to high interest rate from Bank Indonesia (BI).
'This year, we would like to keep the loan-to-deposit ratio [LDR] at 85 percent by boosting low-cost funds through current accounts and savings products,' said the bank's financial director Tri Joko Prihanto, adding that in 2013 Bukopin's LDR was at 87 percent.
Tri added that Bukopin's third-party funds in 2013 was Rp 55.8 trillion, a 3.46 increase year-on-year. The bank will try to keep third-party fund growth at 15 percent this year
For 2014, Glen said, the bank would like its NIM to return to 4 percent or higher. Meanwhile, Bukopin targets its net profit to increase by 15 to 20 percent and credit growth by 15 percent by the year-end.
'This year, in accordance with our new investor [Bosowa Corporindo], we are planning to add more branches in eastern areas of the country,' said Glen.
Makassar-based conglomerate PT Bosowa Corporindo currently owns 18.6 percent shares in Bank Bukopin, which it bought early last year, and plans to raise the stakes by 11.4 percent to a total of 30 percent by the year-end.
'Some cities in eastern Indonesia such as Makassar [South Sulawesi] recorded gross domestic product [GDP] growth of more than 8 percent, much higher than the national GDP of 5.78 percent. We see this as a potential for expansion,' said Glen.
Aside from Makassar, Bukopin will expand to Kendari in Southeast Sulawesi and Gorontalo in northern Sulawesi.
According to Tri, Bank Bukopin will inject Rp 100 billion into Bukopin Syariah in the first semester of this year as well as the first semester of 2015 as the subsidiary company performed well in 2013 by booking a 20 percent increase in profit year-on-year. (dwa)
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