Driven by a spirit of collaboration, SMBC Indonesia posted positive results from January to September 2024 to deliver meaningful growth across various customer segments.

Jakarta, October 30, 2024 – PT Bank SMBC Indonesia Tbk (SMBC Indonesia, formerly Bank BTPN) marked its name change with a solid positive performance from January through September 2024, reinforcing its position as a trusted financial partner for all customer segments.

“SMBC Indonesia continues its strong growth trajectory, supported by a solid financial foundation, to create even more meaningful growth,” said Henoch Munandar, President Director of SMBC Indonesia.

“Our solid performance this period stems from SMBC Indonesia’s organic growth, bolstered by our acquisition of the OTO Group, enabling us to provide comprehensive, innovative, and relevant vehicle financing solutions for Indonesians. We believe that growing together yields a more impactful outcome.”

The consolidated financial report of SMBC Indonesia for the January-September 2024 period has factored in the financial performance of PT Oto Multiartha (OTO) and PT Summit Oto Finance (SOF), or the OTO Group, after their acquisition by SMBC Indonesia in March 2024.

Strong Performance from Customer-Oriented Financial Solutions

By expanding its reach with financial solutions focused on the needs of both retail and corporate customers, SMBC Indonesia achieved a 24% year-on-year (yoy) growth in consolidated operating income, amounting to Rp12.97 trillion for January-September 2024.

Consolidated operating income growth was propelled by a 22%-yoy increase in net interest income to Rp10.98 trillion, higher interest income from loans, returns from liquid asset placements like securities, and net interest income from the OTO Group. Income from bancassurance, credit cards, cash management, and trade and guarantees also contributed to operating income growth. SMBC Indonesia’s assets grew by 17% yoy to Rp228.6 trillion at the end of September 2024, demonstrating strong and stable performance in a dynamic market.

SMBC Indonesia also recorded loan growth, reflecting the company’s commitment to providing relevant financial solutions. Loan disbursement rose 16% yoy to Rp175.1 trillion, primarily driven by financing from the OTO Group. Credit disbursement also saw significant increases across segments, including Joint Financing at 676% yoy, as well as micro, small, and medium enterprises (MSMEs) at 12% yoy.

The rise in loan disbursement was matched by stable credit quality, with SMBC Indonesia’s gross non-performing loan (NPL) ratio booked at 2.16% as of the end of September 2024. Despite an increase from 1.47% yoy, partly due to non-performing financing (NPF) from the OTO Group, SMBC Indonesia’s NPL ratio remained below the industry average of 2.26% as of August 2024¹.

SMBC Indonesia maintained solid liquidity and funding ratios, reporting a liquidity coverage ratio (LCR) of 225.7% and a net stable funding ratio (NSFR) of 119.4% as of September 30, 2024. The bank also posted a strong capital adequacy ratio (CAR) of 29.8%.

As the digital banking pioneer in Indonesia with Jenius, SMBC Indonesia remains committed to advancing its digital capabilities, ensuring easy, intelligent, and secure access to financial solutions for tech-savvy users, along with new wealth management features on the Jenius platform.

Jenius recorded a 16%-yoy increase in registered users to 5.9 million by the end of September 2024. Loan disbursement (comprising Flexi Cash, Digital Micro, Jenius Credit Card, and Jenius Paylater) saw impressive growth of 112% yoy, reaching Rp3.3 trillion from Rp 1.3 trillion. Additionally, third-party funds managed by Jenius grew by 11% yoy to Rp27.2 trillion.

Enhancing Stability and Economic Growth for Customer Benefit

SMBC Indonesia’s net interest margin (NIM) climbed to 6.82% as of September 2024, from 6.44% in the same period last year. The balance of current account and savings account (CASA) increased by 8.1% yoy to Rp38.0 trillion, with the CASA ratio rising to 33.6% as of the end of September 2024. Total deposits also saw 2.7%-yoy growth to Rp75.3 trillion, boosting SMBC Indonesia’s total third-party funds by 4.4%-yoy to Rp113.4 trillion.

These achievements inspire SMBC Indonesia to keep optimizing the efficiency of cost of funding, so that it offers maximum benefit to customers across all segments through comprehensive and relevant financial solutions.

For January-September 2024, SMBC Indonesia posted Rp1.994 trillion in consolidated net profit after tax attributable to the parent company, 4.8% lower than a year ago. This decline was attributed to a 45%-yoy increase in cost of credit, or by Rp863 billion, and a 27% rise in operating expenses to Rp7 trillion. These expenses stemmed from business volume growth, SMBC Indonesia's ongoing initiatives, and credit and operational costs from the OTO Group to support business expansion.

Driving Meaningful Growth through Sustainable Initiatives

SMBC Indonesia continues to expand impactful initiatives to reach more segments of society through the Daya program, aimed at fostering more meaningful lives.

This year, SMBC Indonesia partnered with Yayasan Guru Belajar (YGB/Learning Teacher Foundation) in the “Creative and Financially Savvy Teachers” or “Guru Kreatif Cerdas Finansial” program, providing digital training to over 9,000 teachers to help them enhance their skills in the modern era.

During this program held between August and November 2024, participants engaged with diverse teaching content, such as the “independent teacher” concept, design thinking, AI applications in teaching material creation, and financial literacy. By the program’s end, 175 participants will be selected as “Creative and Financially Savvy Teachers” to become financial literacy agents of change in the educational ecosystem.

A total of 7,659 Daya program activities have reached 8.75 million beneficieries from January to September 2024, representing a 2.4-fold increase in beneficiaries compared to the same periode last year.

“With millions experiencing the positive effects across Indonesia, we will continue to grow the Daya program to help even more customers and communities live a more meaningful life,” Henoch concluded

¹ (BI Rate Holds Steady at 6.00%: Sustaining Stability, Strengthening Economic Growth)

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