JAKARTA, Oct. 19, 2018 – PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) has recorded a positive growth performance as it has operated more efficient. The 2018 third quarter net profit has increased, triggered by lending, lower the cost of funds and the operational costs.
Lending until the end of September 2018 has reached Rp 67.8 trillion, or 3% higher than the same period in 2017 (year-on-year/yoy) from Rp 65.8 trillion. While the total funding has grown by 3% from Rp 74.9 trillion to Rp 77.6 trillion in the same period. The balanced credit raise with the funding growth has lowered the interest by 4% to Rp 3.3 trillion. Even though the interest from lending remained the same but the net interest income has increased by 2% into Rp 7.3 trillion.
“This year is a very challenging period. The economic ups and downs due to internal and external factors have also influenced banking business. Besides, since early this year we have focused on the consolidation on the merger with the Bank Sumitomo Mitsui Indonesia (SMBCI). We feel grateful we have gone through that while at the same time still performed positively,” said BTPN CEO Jerry Ng.
Although the funding growth has been synchronized with the intermediation function, BTPN liquidity is maintained well. The loan to funding ratio (LFR) is at 87% and if equity is included the liquidity ratio is at 71%.
The capital adequacy ratio (CAR) is at 25% and the non performing loan (NPL) is at 1.22%.
“Various financial indicators show that we are not just a healthy and strong bank but we will also grow better in the future,” Jerry said.
Meanwhile, the operational cost is lower thanks to the optimizing of the digital platform. Digital technology transformation and innovation which were developed since 2015 has made BTPN more efficient and more competitive. “We don’t only create new digital-based products and services. We also make digitalization in existing business, changing the customer service concept from bank-centric into customer-centric. Now, BTPN is more integrated and focused in fulfilling the customers’ needs quicker, easier and saver,” Jerry said.
The digital transformation and innovation has successfully lowered the business as usual cost by 16% from Rp 3.03 trillion in the first nine months of 2017 into Rp 2.55 trillion in the same period in 2018. The lower cost of funds and lower operational cost have brought a positive impact to the bank’s net operating income which grew by 18% to Rp 4 trillion.
“All of these factors have brought positive impacts to the company’s profitability. BTPN’s net profit after tax (NPAT) in the 2018 third quarter has grown by 19% to Rp 1.62 trillion (yoy),” Jerry concluded.