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BSI marks continual growth as profit soars by 32.41 percent
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T Bank Syariah Indonesia (BSI) has maintained its solid performance to the second quarter of 2023, recording significant growth of 32.41 percent through accelerated business strategies to reach Rp 2.82 trillion in profit.
Among the drivers of this achievement were growth in quality loans and positive movement of third-party funds (DPK). As of June 2023, BSI distributed loans totaling Rp 221.90 trillion (US$14.4 billion), or 16 percent year-on-year (yoy) growth, dominated by the retail segment at Rp 158.38 trillion.
In collected funds in the second quarter of 2023, BSI booked Rp 252.52 trillion in DPK, dominated by savings products that contributed Rp 110.93 trillion. As a result, the bank posted continued improvement in its current account savings account (CASA) ratio, dominated by cheap funds at 59.93 percent.
BSI president director Hery Gunardi attributed strong governance, risk and compliance (GRC) as among the keys to the institution maintaining its positive performance this year to date.
"We believe that by strengthening GRC, BSI can continue to realize sustainable growth. This is because implementing integrated GRC can synergize aspects of governance structure, risk management and compliance, as well as the company's environmental and social aspects,” said Hery.
“BSI also continues to accelerate and mix and match businesses according to sharia and sustainability principles in developing the halal ecosystem in Indonesia," he added.
BSI's loan performance was also in line with maintaining its loan quality, reflected in its gross nonperforming loan (NPL) ratio of 2.31 percent, an improvement from 2.78 percent last year. This also had a positive impact on the cost of credit (CoC), which posted 1.55 percent.
More efficiency
BSI's solid performance was also driven by the company's ability to properly manage its efficiency and cost ratios that influence its business processes and banking operations. It recorded an improved cost-to-income (BOPO) ratio from 74.50 percent to 70.87 percent as of June 2023.
Good efficiency was also supported by its BSI Mobile digital services, with 5.39 million registered users, 188,000 QRIS merchants and total transactions reaching Rp 170.70 million across the country as of June.
Efficiency also had a positive impact on the company's return of assets (ROA) at 2.36 percent and return of equity (ROE) at 17.27 percent.
"With a balanced composition of loans, a strong financing position and good loan quality, BSI is optimistic that [it will post] business growth in the double digits by the end of the year. Likewise, in terms of customer growth, we believe that we will reach 20 million customers by the end of the year," said Hery.
Consistent ESG implementation
As a sharia financial institution, BSI has consistently implemented theenvironment, social and governance (ESG) principles. BSI's sustainable loan portfolio booked 4.99 percent yoy growth to Rp 52.6 trillion, or 23.77 percent of total loans.
In its pursuit of sustainable finance, BSI also encourages sustainable practices across its operations through emissions reduction and environmental conservation programs. These include the green development of the BSI Landmark Building in Aceh and the use of solar panels at its branches in Mayestik and Mataram.
In addition, it is accelerating the adoption of battery-powered electric vehicles (KBLBB) by providing 35 electric motorbikes for its fleet at the BSI mosque at the Cipali KM 166A rest area. It is also encouraging the use of the BSI e-doc system to support paperless documentation.
As of June 2023, BSI had distributed Rp 122.2 billion in zakat, infaq and benevolent funds for various programs, including a socioeconomic program to develop 15 BSI villages across 10 provinces, as well as religious programs such as in mosque management, nurturing da’i (people who invite others to Islam) and vehicles for musholla (prayer rooms).
It also provided other forms of support, such as the BSI Achievement Scholarship and the Charity & Environment program, assistance for 2,222 orphans, a mudik (exodus) program for disabled people, the Idul Adha (Day of Sacrifice) 1444 H program, and through the BSI sustainable movement program that included planting trees, distributing 50 reverse vending machines (RVM) and releasing 200 turtle hatchlings into the sea.
