"The bank successfully turned around its financial condition in 2022, which was very challenging, by achieving positive performance since the beginning of 2023. This underscores the bank's success in implementing various strategies and measures to strengthen the bank's fundamental conditions," said Haryanto Suganda, president director of PT QNB Indonesia Bank.

Several factors have contributed to the profit growth of QNB Indonesia Bank, one of which is the opportunity to optimize its financial position, leading to an increase in net interest margin (NIM). NIM grew by 64 basis points (bps) annually to 3.79 percent in the third quarter of 2023. In addition, net interest income (NII) increased by 18 percent to Rp 401.45 billion from Rp 341.54 billion in the same period last year.

In the third quarter of 2023, the Bank also managed to maintain a non-performing loan (NPL) ratio of 0.95 percent. This figure is below the banking industry's NPL ratio of 2.51 percent as of July 2023. With the improvement in the NPL ratio, the bank has successfully reduced the burden of credit loss provisions (CKPN). This has resulted in a decrease in the ratio of operational expenses to operational income (BOPO) by 4625 bps to 93.09 percent in this quarter from 139.34 percent in the same period last year.

"In the future, the bank will continue to carefully and selectively optimize the lending process and make efforts to control NPL and CKPN ratios to mitigate potential losses due to troubled loans. We believe this can help the bank maintain sustainable profitability," added Haryanto.

In line with the increase in profit, the bank recorded a return on assets (ROA) growth of 0.58 percent and a return on equity (ROE) of 2.09 percent. The ROA and ROE of the bank grew by 338 bps and 1620 bps, respectively, from the previous year.

In addition, QNB Indonesia Bank has also successfully maintained its liquidity. This is reflected, in part, by the liquidity coverage ratio (LCR) of 502.01 percent in the third quarter of 2023 and the net stable funding ratio (NSFR) of 199.46 percent in the same period. Both ratios are above the current regulatory minimum of 100 percent.

The strong performance of QNB Indonesia Bank is not without the full support of the QNB Group, the largest banking institution in the Middle East and Africa. As the controlling shareholder, one part of the support given by QNB Group is strengthening the capital structure of QNB Indonesia Bank.

In this year, QNB Indonesia Bank has completed a rights issue aimed at strengthening the capital structure of the bank. With more working capital, QNB Indonesia Bank will have sufficient funding to execute its future strategies and business development.

Strengthening the capital structure of the bank also maintains its capital adequacy ratio (CAR) at a healthy level, which was 58.40 percent as of September 2023. This demonstrates the bank's strong expansion capability.

"Having served the Indonesian market for more than 110 years, QNB Indonesia Bank is committed to a long-term partnership with its customers. This commitment is realized through our continuous efforts to strengthen the business and the fundamental aspects of the bank to achieve sustainable growth, ensure improved bank governance, and drive product and service innovation to remain relevant in meeting our customers' needs," concluded Haryanto.

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