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Jakarta Post

Bank Bukopin eyes 15 percent growth in profits

  • News Desk

    The Jakarta Post

Jakarta   /   Tue, January 30, 2018   /   08:13 pm
Bank Bukopin eyes 15 percent growth in profits A teller serves a customer at a branch of sharia lender Bank Syariah Bukopin, a subsidiary of PT Bank Bukopin, in Jakarta on Feb. 7, 2017. (JP/Dera Menra Sijabat)

Publicly listed lender PT Bank Bukopin is eyeing between 10 and 15 percent growth in profits this year as it expects loans to grow between 5 and 10 percent, said the lender’s president director, Eko Rachmansyah Gindo, on Monday.

He said that apart from relying on traditional clients, the bank would also eye an increase in vehicle loans.

“Our target for 2018 is to disburse between Rp. 1 trillion [US$70 million] and 1.5 trillion in vehicle loans,” said Eko, without referring to the performance in 2017, saying that it was being audited.

Prior to his resignation, then Bank Bukopin president director Glen Glenardi said the company’s loan growth target for 2018 was 8 percent, citing political considerations resulting from the regional elections this year and general and presidential elections in 2019.

As of November 2017, Bank Bukopin had disbursed Rp. 70.17 trillion in loans, a 3.07 percent year-on-year (yoy) increase compared to the figure in 2016. It booked Rp. 723.01 billion in profits, down 30.38 percent from the figure in 2016.

Bank Bukopin has signed a memorandum of understanding (MoU) with its subsidiary PT Bukopin Finance to finance vehicle loans. Bank Bukopin plans to invest Rp. 50 billion in Bukopin Finance.

Eko said 10 multifinance firms that finance vehicle loans controlled 61 percent of the multifinace market.

The Association of Indonesian Automotive Manufacturers (Gaikindo) recorded 1.08 million car sales in 2017. (jlm/bbn)