BTPN Commits to Developing Pension and MSE Markets
Assets and TPF Grow 63%, Lending Grows 51%, and NPL 0.07%
Jakarta, February 23, 2010. PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) demonstrates aggressive growth of business, as reflected in its latest financial statements for the year ending 31st December 2009.
"Consistent with our strategy to focus on Pension and Micro & Small Enterprise (MSE) markets, throughout 2009 we maintained the strategy to empower our strength in these markets. We developed various programs, provided opportunities for our stakeholders, especially our pensioners and MSE customers to grow both in financial condition and in capacity," said President Director Jerry Ng.
As of 31st December 2009, the Bank's customers included over 500,000 pensioners and over 120,000 MSEs that enjoyed the service from 1,030 offices throughout Indonesia. In addition to providing financial solutions, the Bank also offers its customers the special services called Pension Health & Wellness Program (Program Pensiun Sehat & Sejahtera - PSS) and Capacity to Grow (C2G).
Operating with the three pillars of Information Center, Consultancy Program, and Business Opportunity, PSS was designed specifically for pensioner customers, with the aim to help them have all elements of healthy and well for better quality of life. During 2009, a total of 15,000 customers under 43 branches had benefited from the program. On the other hand, C2G is a program created by btpn|mitra usaha rakyat for all of its customers to enhance the capability to manage their business with the three pillars comprising information, training, and new business opportunities. In 2009, btpn|mitra usaha rakyat conducted more than 300 simple financial management classes attended by over 3,000 micro & small enterprises.
"In 2009, our optimism on the outlook of Indonesian economy and the commitment to develop micro & small enterprise segment have encouraged us to keep developing and adding the outlets of btpn|mitra usaha rakyat throughout Indonesia, from Aceh to Papua. We also provided employment opportunities for thousands of new graduates from the local communities by employing them in our company. This is our concrete contribution to the development of the regions where we operate," said Jerry. Throughout 2009, the Bank expanded its branch network by opening 493 offices of btpn|mitra usaha rakyat. Such addition expanded BTPN distribution network to 1,030 offices, including 539 offices of btpn|mitra usaha rakyat. To support this expansion, the Bank recruited more than 7,000 new employees, increasing total employees to 10,372 people by 31st December 2009.
Jerry further explained that the Bank 's business expansion is also supported by the investment in infrastructure, primarily in the area of information technology. "Now our distribution network includes more than 1,000 offices operating online, realtime," confirmed Jerry. BTPN's serious efforts in developing the technology to support business achievement have rewarded it with the recognition as one of the companies awarded as "The Best e-Corp" by SWA magazine in January 2010.
"Our commitment to develop the business by focusing on customers' needs has been fruitful with our performance improved significantly," Jerry continued his explanation. We have also gained more trust as seen in the growth of public funds as of 31st December 2009, which reached Rp 18.5 trillion or increased by 63% compared to the previous year. Meanwhile, the realization of the commitment to provide financing access for pensioners and MSEs is reflected in lending (gross) that totaled Rp 15.7 trillion as of 31st December 2009, or an increase of 51% over the previous year. "Although we are pursuing business expansion and lending optimization, we never compromise the compliance with the prudential principles in risk management, so that gross NPL ratio was only 0.51%, lower than the previous 0.59% of 31st December 2008, while net NPL ratio of 31st December 2009 was 0.07%.
The strong trust given by the public and financial industry is also shown in the successful BTPN I bond issuance amounting to Rp 750 billion in October 2009, which was given national long-term rating of A + (idn) by Fitch Ratings, and followed by a Rupiah denominated loan facility from International Finance Corporation (IFC) equivalent to USD70 million. "Our funding activities in 2009 were consistent with our long-term strategy to manifest the Bank 's commitment in providing bigger financing access to pensioners and MSEs," explained Jerry.
The investment in business expansion has significantly increased the Company's assets by 63%, from Rp 13.7 trillion (31st December 2008) to Rp 22.3 trillion (31st December 2009). The investment also generated higher operating income that totaled Rp 2.34 trillion as of 31st December 2009, or a 50% increase from Rp 1.56 trillion as of 31st December 2008. The increase in operating income was primarily attributable to the higher interest income as a result of lending expansion.
On the other hand, although the investment has incurred an increase in operating expenses, BTPN still managed to maintain the momentum of higher net income that reached Rp 420.4 billion as of 31st December 2009, up 11% over last year. Meanwhile, the capital adequacy ratio (CAR) as of 31st December 2009 was maintained at 18.5%.
"We believe that this impressive improvement in performance was achieved because of the strong commitment and support of all stakeholders. This good momentum will be a strong foundation for BTPN to keep expanding its business in pension and MSE markets," Jerry concluded.
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