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BSI achieves impressive performance as profit grows 33% in Q4 2023
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Members of the Bank Syariah Indonesia (BSI) Board of Directors (from left) Director of Information Technology Saladin Effendi, Director of Treasury & International Banking Moh. Adib, Director of Retail Banking Ngatari, Director of Risk Management Grandhis H. Harumansyah, President Director Hery Gunardi, Vice President Director Bob T. Ananta, Director of Finance & Strategy Ade Cahyo Nugroho, Director of Sales & Distribution Anton Sukarna, Director of Wholesale Transaction Banking Zaidan Novari and Director of Compliance & Human Capital Tribuana Tunggadewi address a press conference on the company’s fourth-quarter 2023 performance at The Tower Jakarta on Jan. 2, 2024.
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T Bank Syariah Indonesia, Tbk. (BSI) has successfully maintained an impressive financial performance amid the challenges and uncertainties of the global economy as a result of increasing geopolitical tensions. BSI's success in sustaining positive performance is demonstrated by a profit growth of 33.88 percent year-on-year (yoy) to reach IDR 5.70 trillion in the fourth quarter of 2023.
BSI President Director Hery Gunardi revealed that the main contributors to the company’s positive performance included financing, third-party funds (DPK) and low-cost funds, all of which experienced double-digit growth. This success was attributed to strategic responses, appropriate strategies and a flexible, digital business model.
"Alhamdulillah [Praise be to God], amid the uncertain global economic condition, BSI has once again proven its ability to achieve excellent performance. This is a result of BSI's steps in adopting the correct, adaptive and innovative strategies for businesses with high demand in the market.
“It is also supported by our commitment to continuously optimize Islamic financial literacy across all potential sectors," Hery said.
He added that the company’s flexible and digitally connected business model played a strategic role in driving performance growth. This allowed BSI to access the entire spectrum of society, including individual and retail customers, micro, small and medium enterprises (MSMEs) and corporate clients.
BSI’s presence as “Beyond Sharia Banking” was therefore crucial in offering a more varied range of banking products and services through financial schemes that other Islamic banks did not have.
"Additionally, the government's support for Islamic banking regulations provides significant opportunities for BSI to participate in national projects," said Hery.
In terms of its intermediary functions, BSI’s growth in financing and third-party funds (DPK) has led to optimal contributions relative to its performance in 2022.
For full-year 2023, BSI recorded fund disbursements totaling IDR 240.32 trillion to book 15.70 percent yoy growth, with gross nonperforming financing (NPF) improving to 2.08 percent. The composition of disbursed funds was dominated by the consumer (54.32 percent), wholesale (28.09 percent) and retail (17.58 percent) segments.
The high distribution of funds to sustainable segments also indicates BSI's commitment and consistency. As of December 2023, the company’s sustainable financing reached IDR 57.7 trillion, dominated by the MSME sector with IDR 45.4 trillion, followed by sustainable agriculture with IDR 4.8 trillion, eco-efficient products with IDR 5.8 trillion, renewable energy with IDR 1.1 trillion and eco-green projects with IDR 549.6 billion.
Meanwhile, third-party funds reached IDR 293.77 trillion by December 2023, growing 12.35 percent yoy. Of this amount, savings, considered as low-cost funds, reached IDR 124.73 trillion, or 40 percent of the total DPK.
Furthermore, BSI's positive performance in 2023 was also supported by a12.08 percent yoy growth in fee-based income to IDR 4.20 trillion.
In 2023, the company’s customer base expanded to 19.65 million, including a post-merger growth of 5 million customers, making BSI the world's largest Islamic bank by customers.
Several other financial indicators also point to BSI's strong performance in 2023, as reflected in assets reaching IDR 354 trillion from growth of 15.67 percent, a return on assets (ROA) of 2.35 percent and a return on equity (ROE) of 16.88 percent, supported by a strong reserve ratio of 194.35 percent. This solid performance is also upheld by precise efficiency, evident in maintaining its operating costs-to-operating income (BOPO) at 71.27 percent, an improvement from the previous year.
Online growth
The number of BSI Mobile application users reached 6.3 million, with 86 percent of users opening online onboarding (OOB) accounts.
To enhance BSI’s services across the country, it currently operates over 1,100 branch offices, 2,564 ATMs and 86,200 BSI Smart Agents ready to serve customers nationwide.
"We would like to convey that customer growth is also attributed to the optimization of [electronic] channels, such as the BSI Mobile app, which are easily accessible for various transaction needs, including opening online accounts for savings, deposits and financing," said Hery.
Green commitment
BSI’s commitment to sustainability has been demonstrated through a variety of activities and policies. These include: the implementation of energy efficiency through the construction of environmentally friendly buildings; the optimization of online services through digital branches; the installation of solar panels at branch offices; and the use of electric motorbikes and charging stations at rest areas.
The company has also supported the distribution of reverse vending machines (RVM) across the country, and this program has contributed to a reduction in carbon emissions by 84.4 tonnes of carbon dioxide equivalent (CO2eq) and recycling 22.8 tonnes of plastic waste.
BSI also contributes to the community through a corporate social responsibility (CSR) program that has distributed IDR 255.2 billion to date under four main pillars: socioeconomic (BSI villages and MSMEs), spiritual (mosque and mobile prayer room development), people (scholarships) and charity and environment (assistance for orphans, tree planting and sustainability activities).
