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BNI, BCA book double-digit profit growth
Publicly listed lenders Bank Negara Indonesia (BNI) and Bank Central Asia (BCA) managed to maintain healthy net interest margin (NIM) ratios, which eventually led the banks to book double-digit net profit growth throughout the January to September period
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ublicly listed lenders Bank Negara Indonesia (BNI) and Bank Central Asia (BCA) managed to maintain healthy net interest margin (NIM) ratios, which eventually led the banks to book double-digit net profit growth throughout the January to September period.
BNI's latest financial report shows that the state-owned bank posted 6.1 percent NIM in the first nine months of the year, unchanged from that reported a year ago. Meanwhile, its net profit surged 16.4 percent to Rp 7.61 trillion (US$625.65 million) during the same period.
BNI president director Gatot Suwondo said that it was able to reap this result due to adjustments made in both its loans and third-party funds portfolios, especially during the current tight liquidity situation.
'We did not actually see our costs of funds skyrocket because we did not offer too high interest rates for our major time deposit clients. Our average rate for them revolves at around 9.5 percent, which is lower than that offered by other banks some time ago,' he said in a press conference on Thursday.
According to the report, time deposits accounted for 38 percent of BNI's total customer funds. The remainder was made up by savings at 36 percent and demand deposits at 26 percent.
- BCA, BNI's steady NIMs of 6.5%, 6.1% help lift profits
- BNI profits up 16.4% to Rp 7.61t, loans up
- BCA profits up 17.7% to Rp 12.19t, sees loan growth not exceeding 12% by year-end
Gatot said that a large chunk of the time deposits were generated by regular clients, not 'big fish'.
Meanwhile, BNI's outstanding loans grew 14.1 percent year-on-year to Rp 267.94 trillion between January and September. The corporate segment remained the biggest contributor to outstanding loans, followed by the consumer segment and medium-sized business segment.
However, the highest growth was recorded in BNI's international business segment as it rose 41.1 percent, the report reveals.
BNI treasury and financial institutions director Suwoko Singoastro said that its Tokyo branch in Japan had contributed the most to the international business profits. Besides Tokyo, BNI also has a sub-branch in Osaka to support its operations in Japan at the moment.
Gatot said that the bank would try to keep its NIM at around 6 percent until the end of the year.
'We have not made any change to our business plan. Hopefully our annual loans growth will still be
between 14 and 17 percent, and third-party funds growth in the 13 to 15 percent range,' he added.
Separately, private lender BCA managed to boost its NIM by 50 basis points to reach 6.5 percent as of September, shown by its latest financial report.
The higher NIM then drove BCA to post Rp 12.19 trillion in net profits, which were up 17.7 percent from a year before.
Similarly to BNI, BCA did not suffer from excessively high costs from its time deposit portfolio.
According to BCA president director Jahja Setiaatmadja, major clients were no longer interested in keeping their funds in the bank since it slashed its special interest rate back in August.
'We only offered 9.25 percent in July, during which banks saw the peak of the funding competition. A month later, we reduced the rate to 9 percent and then brought it down again to 8.5 percent in September,' he said.
BCA, he added, estimated that its total outstanding loans would only rise by a maximum 12 percent by year-end, bringing the total lending to around Rp 349.86 trillion.
Data on the Indonesia Stock Exchange (IDX) show that BNI's shares ' sold under the 'BBNI' code ' climbed 1.3 percent to Rp 5,800 apiece on Thursday.
Those of BCA, offered as 'BBCA', fell 2.8 percent to Rp 13,000 per share.
