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View all search resultsBNI Syariah sees profit soar in first quarter, plans expansion
BNI Syariah net profit soared 58.1 percent year-on-year (yoy) to Rp 214 billion (US$14.46 million) in the first quarter.
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NI Syariah, the sharia subsidiary of state-owned Bank Negara Indonesia (BNI), reported a jump in its net profit during this year’s first quarter as it eyed opportunities to expand international banking services by banking on its parent company’s overseas branches.
BNI Syariah net profit soared 58.1 percent year-on-year (yoy) to Rp 214 billion (US$14.46 million) in the first quarter of the year as the adverse impacts of the COVID-19 pandemic had yet to hit the bank’s bottom-line as of March, president director Abdullah Firman Wibowo said.
“However, we have anticipated its impacts in the next quarter, both on the business front as well as on the assets quality side. We hope these impacts can be minimized so that we can still make a profit,” he added during a livestreamed press briefing on Thursday.
The coronavirus outbreak is expected to hit the banking industry as it disrupts business activities and forces millions of people out of job, battering loan demand and jeopardizing credit repayments.
Read also: State-owned banks restructure $1.84b in loans to soften COVID-19 impacts
BNI Syariah recorded a 9.8 percent growth in financing disbursement to a total of Rp 32.32 trillion while its non-performing financing (NPF) rose to 3.8 percent from 2.9 percent during the same period last year. Between December 2019 and March 2020 alone, NPF climbed by 47 basis points.
“We will try our best to manage the [NPF] to remain at a level below 4 percent, hopefully even below 3.5 percent,” Firman said.
