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Jenius Banking Reinvented
24 January 2019
BTPN’s assets reach Rp 100 trillions, profits jump 61%
JAKARTA – PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) has been included in the list of banks with assets above Rp 100 trillions. This achievement was made before BTPN begins its operation as a new entity, as a result from the merger process with PT Bank Sumitomo Mitsui Indonesia (SMBCI).
Until the end of December 2018, the BTPN’s assets reached Rp 101.9 trillions, or grew by 7% year-on-year (yoy), compared to the previous year of Rp 95.5 trillions. The total financing was recorded at Rp 68.1 trillion, or grew by 4% while the funding was at Rp 80.5 trillion or grew by 5%.
“We are very grateful for the achievement. This was due to supports from all stakeholders that BTPN managed to grow extraordinary in the past decade and is among banks with assets of over Rp 100 trillions. After the official merger, BTPN will definitely have the opportunity to grow stronger and bigger,” BTPN CEO Jerry Ng said.
Since its Initial Public Offering (IPO) at the Indonesian Stock Exchange in March 2008, BTPN has grown significantly. In the last 10 years, the bank’s assets have tenfolded from Rp 10.6 trillion in December 2007. The credit and third-fund-party at that time was Rp 7.85 trillion and Rp 8.8 trillion, respectively. “BTPN will start a new chapter. We are proud to help the merger process with the bank’s condition which is very health and strong,” said Jerry, who will end his tenure by the end of January.
Apart from reaching a higher level, BTPN has been more efficient and more competitive. This is the result of the transformation program and digital innovation conducted by the management in the past three years.
The innovation has been materialized through new digital-based products such as BTPN Wow! and Jenius. Whereas the transformation is done by changing the service concept from bank-centric to customer-centric. “We did not only create digital-based products and services. We also do digitalization in existing business. Now BTPN is more integrated and more focused in fulfilling the customers’ needs quicker, easier and saver,” Jerry said.
The transformation and digital innovation have slashed operational cost so that the cost to income ratio (CIR) becomes better. The BTPN’s business as usual cost from January – December 2018 was recorded at Rp 3.48 trillion, down by 12% from the same period in 2017 of Rp 3.93 trillion. As a result, the net operating income has increased by 12% to Rp 5.2 trilion although operating income has grown by 2% to Rp 10.2 trillion. The ratio to income also went down by 69% in 2017 to 56% in 2018.
Meanwhile, the capital adequacy ratio (CAR) decreased by 25% and non performing loan (NPL) also decreased by 1.24%. The loan to deposit ratio (LDR) was at 96%.
The lower operational cost and the focus on more quality growth has given a positive result. The net profit after tax (NPAT) in 2018 reached Rp 1.97 trillion, jumped by 61% from the same period of 2017 at Rp 1.22 trillion. “Since early last year, we focused on consolidating to finish the merger process with SMBCI. We are glad that we can go through that while still creating a positive performance,” Jerry said.
Speaking on the merger with SMBCI, Jerry explained that BTPN has received a green light from theFinancial Services Authority (OJK) on December 19, 2018, and also from the Japan Financial Sector Authority (JFSA) on January 18, 2019. There are still some administrative steps to do despite the approvals from both authorities. After those steps are done, the new bank — the result of the merger of BTPN and SMBCI — will operate. “The new BTPN will have an asset of more than Rp 180 trillions. The products will be more comprehensive and the market segments will be more varied,” Jerry concluded.
For further information please contact:
PT Bank BTPN Tbk
Andrie Darusman – Daya & Corporate Communications 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.