Bank BTPN E-Banking & Banking Reinvented
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Jenius Banking Reinvented
17 July 2018
BTPN Is More Efficient, Profit Grows 17%
Jakarta, 17 July 2018 – PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) has recorded an impressive growth performance due to efficiency. Its cost of fund and operational cost became lower compared to previous periods and it affected to the net profit increase.
“Although we are more efficient, it doesn’t mean our service quality is decreasing. Our efficiency is due to the transformation and innovation of digital technology which we have developed since 2015. By optimizing technology platform and continuing our innovation, we are optimistic that we will be more competitive in this industry,” said Jerry Ng, BTPN President Director.
Jerry added that the bank’s innovations in the form of digital-based new products and the investment to develop the BTPN Wow! and Jenius platform have shown results. By the end of June 2018, BTPN Wow! has owned 5.24 million customers served by more than 213,000 agents while the Jenius users have reached more than 700,000 customers.
The transformation process is conducted by changing the concept of customer service from bank-centric to customer-centric. The change is reflected in the use of digitalization platform in existing business which consists of developing alternative channels, integrating branches, automatization process, transformation of IT infrastructure and retraining employees.
“Through the digital transformation, our customer service network has been expanded with maintained quality, although the number of branches is reduced and the organization has been slimmed down,” Jerry said.
Transformation and digital innovation has lowered the operational cost by 12% (year on year/yoy) from Rp 2.73 trillion in June 2017 to Rp 2.4 trillion in June 2018. This also affects the cost to income ratio (CIR) from 63% to 54% in the same period.
The decreasing operational cost has positively affected the company’s profitability. BTPN’s net profit after tax (NPAT) has increased by 17% from Rp 935 billion in the first half of 2017 to Rp 1.09 trillion in the first half of 2018 although in the same period the credit channeling only grows 2% from Rp 66.3 trillion to Rp 67.8 trillion. The asset value has grown by 3% into Rp 99.9 trillion.
The bank’s non-performing loan (NPL) was at 1.13% due to the prudent banking principle whereas the capital adequacy ratio (CAR) was at 24.1%.
To continue with the innovation and transformation agenda, despite the decreasing operational cost, BTPN will still invest in digital development. During the first half of 2018, BTPN has allocated Rp 306 billion for new investments for Jenius and BTPN Wow!. It shows that improvement in cost structuring does not lessen BTPN’s commitment as a national bank which is ready to adapt and contribute in the digital economy era.
BTPN also keeps its commitment in empowering and improving the customers’ capacity through the Daya Program, which is a continuous and measurable training and accompaniment program. To create a wider and more effective accompaniment program, BTPN implements digital Daya Program.
In terms of liquidity, the total funding has increased by 2% from Rp 78.5 trillion by the end of June 2017 to Rp 80.3 trillion by the end of June 2018. From that amount, the composition of third party fund has increased by 4% from Rp 69.4 trillion to Rp 72 trillion while the third party’s loan decreased by 7% from Rp 9.03 trillion to Rp 8.35 trillion. The loan to funding ratio (LFR) is at a save level at 84%.
In the second quarter (Q2) of 2018, BTPN has marked a new milestone by bringing its subsidiary BTPN Syariah to become public listed company. BTPN Syariah has offered its 10 percent shares through the initial public offering (IPO) at the Indonesia Stock Exchange (BEI) in May 2018.
“The IPO is a strategic move by the company to run the business openly. Besides, through the IPO, the management has given the general public to get involved in empowering mass market, especially the productive poor people,” Jerry said.
For further information please contact:
PT Bank BTPN Tbk
Andrie Darusman – Communications & Daya Head
Email: [email protected] or [email protected]
PT Bank BTPN Tbk (Bank BTPN) is a foreign exchange bank and is a merger between PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) and PT Bank Sumitomo Mitsui Indonesia (SMBCI) in February 2019. Bank BTPN serves various segments in the banking industry, from retail to corporate customers, including retirees, micro-, small- and medium-sized enterprises (MSME) and productive, pre-prosperous communities; the consuming class segment; and the corporate segment. Bank BTPN provides the services through business units, such as BTPN Sinaya—a business unit for wealth management, BTPN Purna Bakti—a business serving retirees, BTPN Micro Business—a business unit serving micro businesses, BTPN SME—a business serving small- and medium-sized enterprises, Jenius—a digital banking platform serving the consuming class segment, and the corporate business unit, which serves national, multinational, and Japanese companies. Bank BTPN also has a subsidiary, namely PT Bank BTPN Syariah Tbk, which focuses on serving customers from the mass market. Bank BTPN also regularly provides training sessions and information for customers through the Daya Program—a sustainable and measurable empowerment program—to improve customers’ capacity so they can grow and have a chance to live better.