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BTPN records double-digit growth in profits, loans
Publicly listed lender Bank BTPN recorded double-digit growth in net profits and loans in the first quarter of this year, as it weathered the COVID-19 crisis.
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Logo of PT Bank Tabungan Pensiunan Nasional (BTPN) (Courtesy of/Bank BTPN)
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ublicly listed lender bank BTPN recorded double-digit growth in net profits and loans in the first quarter of this year, as it weathered the COVID-19 crisis.
The bank booked Rp 752 billion (US$50.7 million) in net profits in the first three months of this year, up by 48 percent compared with the same period last year, BTPN announced in a statement on Tuesday.
In line with the growth in profits, the bank also recorded a 12 percent year-on-year (yoy) growth in loan disbursement in January to March to Rp 157 trillion, supported by loans to the corporate segment of Rp 92 trillion.
“With the uncertainties of the global economic situation, added to by the current development of the COVID-19 outbreak, we are trying to maintain the positive performance of the bank,” BTPN president director Ongki Wanadjati Dana said in the statement.
In the corporate loan segment, BTPN focused on syndicated loans for various projects such as energy security, food security and infrastructure. The bank also disbursed loans bilaterally to private and state-owned entities, as well as automotive and trading firms.
To support the high loan growth, BTPN also managed to raise Rp 161.2 trillion in funding as of March, higher by 3 percent yoy.
The funding was sourced from third-party funds of Rp 97.1 trillion, while other party loans and subordinated loans contributed Rp 57 trillion and Rp 7.1 trillion, respectively.
Meanwhile, BTPN also managed to maintain its gross non-performing loan (NPL) ratio at 0.97 percent as of March, well below the banking industry figure of 2.77 percent, as it stressed that it remained cautious in disbursing its loans.
Ongki went on to say that the bank still had ample liquidity to get through the current challenging economic conditions as its liquidity coverage ratio (LCR), which indicates the bank’s short-term liquidity ratio, stood at 212 percent.
Meanwhile, its net stable funding ratio (NSFR), which indicates its long-term liquidity, stood at 116 percent, above the minimum requirement of 100 percent.
The bank's capital adequacy ratio (CAR), meanwhile, stood at 22.5 percent. This signaled that the bank still had strong expansion capability, it said in the statement.
“The COVID-19 situation is very challenging, including for us in the banking industry. But we are grateful for the performance at the beginning of this year,” Ongki said.
