Jakarta, Aug. 28, 2018 – Since operating more efficiently, PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) has created an impressive performance growth. Operational and funding costs have been lower than the previous periods and if affected the increase of net profit.
“Despite the efficiency, we don’t lower our service quality. We have become more efficient due to our digital transformation and technology innovation that we have expanded since 2015. By optimizing this technology platform and keeping on innovating, we are optimistic we can be more competitive in this industry,” BTPN Director Anika Faisal said.
Anika added that the innovations that were made through new digital-based products and investments to built the BTPN Wow! and Jenius platforms have been fruitful. By the end of June 2018, BTPN Wow! has around 5.24 million customers served by more than 213,000 agents while the number of Jenius customers has reached over 700,000.
The bank also transforms its customer service concept from bank-centric to customer-centric. The transformation is visible in the use of digitalization in the existing business comprising of developing alternative channels, integrating branch offices, automatization process, transformation of IT infrastructure and retraining employees.
“Through this digital transformation, our customer service network has been expanded but the quality is maintained despite the decrease in the number of our branch offices and the slimmer organizational structure,” Anika said.
The transformation and digital innovation has decreased the operational cost by 12% (year-on-year/yoy) from Rp 2.73 billion in June 2017 to Rp 2.40 trillion in June 2018. The cost to income ratio (CIR) also decreased by 63% to 54% in the same period.
The lower operational cost has given a positive impact to the company’s profitability. BTPN’s net profit after tax (NPAT) grows by 17% from Rp 935 billion in the first semester of 2017 to Rp 1.09 trillion in the first semester of 2018 although at the same time lending only grows by 2% from Rp 66.3 trillion to Rp 67.8 trillion. Total asset has grown by 3% to Rp 99.9 trillion.
The bank has been cautious in lending and it is reflected in the non-performing loan (NPL) ratio of 1.13%. The bank’s capital adequacy ratio (CAR) is at 24.1%.
To continue the innovation and transformation agenda, despite the lowering operational cost, BTPN will still invest in digital development. In the first semester of 2018, BTPN has allocated Rp 306 billion of new investment for Jenius and BTPN Wow! It shows improvement in financial structure does not lessen BTPN’s commitment as a national bank that is ready to adapt and contribute to the digital economy era.
Along with the credit growth, BTPN has set a more balanced 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 the amount, the third party fund increases by 4% from Rp 69.4 trillion to Rp 72 trillion, while other party’s lending drops by 7% from Rp 9.03 trillion to Rp 8.35 trillion. The loan to funding ratio (LFR) is at a save level of 84%.
To strengthen the capital and increase the company’s ability in financing real sector in Indonesia, the management of BTPN and Bank Sumitomo Mitsui Indonesia (SMBCI) have agreed to consolidate through joint business scheme. On Aug. 2, both banks’ managements published their merger summary.
BTPN and SMBCI are both owned by Sumitomo Mitsui Banking Corporation (SMBC), which shares in each bank is 40% and 98.48%, respectively.
With the publication, all merger documents have been submitted to the The Financial Services Authority (OJK). After getting the approval from the authority, BTPN will seek approval from the shareholders in an Extraordinary Shareholders Meeting (RUPS LB).
“This publication is our milestone in the official beginning of the merger process between BTPN and SMBCI which we believe will give positive impact not only for the company but also for national economy. The merger will create a new bank which is bigger and stronger that will have a greater role in financing different sectors in Indonesia, both in retails or wholesales,” Anika said.