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Jakarta Post

MNC Bank returns to profit after losing Rp 685 billion

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, June 24, 2019   /   12:59 pm
MNC Bank returns to profit after losing Rp 685 billion Customers talk while waiting at an MNC Bank office in Jakarta. (kontan.co.id./Daniel Prabowo)

After changing its business strategy, publicly listed PT Bank MNC International gained a net of profit of Rp 57 billion (US$4.03 million) in 2018 after losing Rp 685 billion in the previous year.

The bank increased interest rates, improved efficiency and were more selective in approving credit, PT Bank MNC director Hermawan said, speaking about the bank's new business strategy at a recent press conference after its annual shareholder meeting.

“As the demand for loans increased last year, we raised our interest rates to 12 to 14 percent per annum,” he said, adding that the credit disbursed to third parties increased to Rp 7.51 trillion in 2018 from Rp 7.11 trillion in 2017.

President director Mahdan Ibrahim said the shareholders agreed that the bank should retain its profit to strengthen its working capital and, therefore, it would not distribute dividends to shareholders.

Hermawan said total assets increased to Rp 10.85 trillion last year from Rp 10.7 trillion in 2017, while its equity grew to Rp 1.43 trillion from Rp 1.25 trillion.

In order to further improve its profitability, the bank was trying to increase loans, particularly for small and medium enterprises (SMEs) and individuals, in the form of consumer loans, he said.

“We wish to increase consumer loans via credit cards, multifinancing and mortgages,” he said, adding that the bank targeted Rp 400 billion in loans for SMEs this year.

To support the target, he said, the bank launched a smart loan program that simplified the disbursement process with more flexible requirements.

He said it would also invite employees of the MNC Group to become customers and stakeholders. (nal/bbn)

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