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BNI’s 3Q lending up 14.7 percent on the back of high growth in corporate loans
Of the total loans in the third quarter, about Rp 181.1 trillion was disbursed to private companies and another Rp 110.8 trillion to state companies
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An official checks bundles of bills at a Bank Negara Indonesia (BNI) cash center in Jakarta. (JP/Ricky Yudhistira)
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tate lender Bank Negara Indonesia (BNI) recorded a 14.7 percent increase in loan disbursement in the third quarter to Rp 558.7 trillion (US$399.07 million) on the back of a sharp increase in loan disbursement to corporate borrowers.
The bank’s corporate loans rose 18.1 percent to Rp 291.7 trillion in the third quarter, which ended in September. Of the total, about Rp 181.1 trillion was disbursed to private companies, which showed an increase of 24.8 percent year on year (yoy), while Rp 110.8 trillion was disbursed to state-owned companies (SOEs), which recorded an increase of 6.6 percent yoy.
Furthermore, BNI also recorded 19.2 percent growth in micro credit disbursements to Rp 75 trillion yoy.
BNI’s solid lending is also supported by a growth in third-party funds to Rp 581 trillion.
According to BNI’s press release issued on Wednesday, the bank booked a net profit of Rp 12 trillion during the July-Sep period, which grew 4.7 percent yoy. The growth in net profit was supported by an increase in the bank’s net interest income to Rp 26.9 trillion and fee-based income to Rp 8.1 trillion during the three month period.
Furthermore, BNI also maintained a low-cost ratio as indicated by a current account/savings account (CASA) composition of 64.3 percent of total third-party funds.
The volatility of CASA composition has been kept fairly stable by BNI, mainly due to the growth in giro funds (current account) at 13 percent and savings at 7.5 percent yoy.
“In an effort to increase the inflow of low-cost funds, BNI will continue to develop digital banking services, increase synergy with various SOEs and develop financial solutions for government agencies,” BNI president director Herry Sidharta told The Jakarta Post on Wednesday.
BNI has 46.5 million individual account holders. Furthermore, the bank continues to increase its number of branchless banking agents in an attempt to attract more third-party funds. At the end of 2018, BNI had 111,836 agents. The bank aims to employ 130,803 agents by the end of this year.
In terms of asset quality, BNI's non-performing loan improved to 1.8 percent in the third quarter of 2019 from 2 percent in the same period last year. (bry)
