ajor Indonesian banks expect 2023 to be a challenging year given the global risks of inflation, recession and foreign exchange volatility, yet they look to continued expansion, emboldened by strong third-quarter reports and a resilient domestic economy.
Loan disbursement by the country’s three largest banks – state-owned lenders Mandiri and BNI as well as private lender BCA – increased between 9 and 14 percent annually in the third quarter, in line with the overall industry’s growth of 11 percent year on year (yoy).
Credit issuance across the board, including corporate, commercial and consumer loans, continued to grow significantly, supported by increased demand and an easing of pandemic-related mobility restrictions early this year.
When compared to a year earlier, borrowers in the third quarter were better at keeping up with repayments, as reflected in nonperforming loan (NPL) ratios at the three banks falling by between 0.2 and 0.8 percentage points yoy, while the loans at risk (LAR) ratio was down around 6 percentage points yoy.
In the first nine months of 2022, BCA’s net profit rose 12.6 percent yoy to Rp 28.95 trillion, while Mandiri and BNI recorded even stronger annual gains of 59.4 percent to Rp 30.7 trillion and 76.8 percent to Rp 13.69 trillion, respectively.
“This solid performance in the third quarter will help strengthen our foundation in facing global economic challenges in the future,” BNI CEO Royke Tumilaar said in a statement on Tuesday.
Read also: BCA to keep lending rate unchanged
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