Jakarta, May 3, 2023 – PT Bank BTPN Tbk ("Bank BTPN") reported growth in net profit in line with the strengthening trend of national economic recovery and public optimism about the economy in the lead up towards the COVID-19 endemic status transitory period.
Bank BTPN's net profit after tax (consolidated) attributable to owners of the parent entity in the first quarter of 2023 was recorded at Rp805 billion, increasing by 7% year-on-year (yoy) from Rp752 billion in the same period last year.
The growth in net profit was mainly contributed by operating income that increased by 3% yoy and cost of credit that dropped 4% yoy.
The increase in operating income was supported by a 26%-yoy rise in interest income, in line with an increase in loans in the corporate and sharia financing segments as well as a 4%-yoy increase in other operating income.
“Bank BTPN successfully booked net profit growth in the first quarter of 2023. This early-year achievement will support Bank BTPN's solid performance to continue growing,” said Bank BTPN President Director Henoch Munandar.
Furthermore, Bank BTPN saw continuous growth in demand for credit. Loans in the corporate and small- and medium-sized business segments rose 7% yoy and 14% yoy, respectively, while sharia financing grew by 11% yoy.
Total loans disbursed by Bank BTPN as of the end of March 2023 increased by 5% yoy to Rp149.90 trillion, from Rp142.37 trillion at the end of March last year.
Bank BTPN managed to maintain good credit quality, as reflected in the gross non-performing loan (NPL) ratio of 1.38% at the end of March 2023, down from 1.40% booked in the same period last year and relatively lower than the industry average of 2.6% at the end of February 2023.
“We are proud that the bank's positive performance is also supported by demand for credit that continues to grow. Even so, we are committed to always prioritizing the principle of prudence in every business decision,” said Henoch.
Cost of credit decreased by 4% yoy to Rp416 billion in Q1-2023. Bank BTPN continues to monitor customer credit quality, manage credit restructuring, and maintain a proper level of loan-loss provisions.
Net interest income increased by 3% yoy to Rp2.94 trillion during the first three months of 2023, from Rp2.85 trillion in the same period last year, on the back of loan growth. Meanwhile, interest expenses picked up mainly because foreign currency-denominated deposit rates and foreign currency-denominated interest expenses rose after the US Federal hiked its policy rate.
Bank BTPN matched the needs for third-party funds with credit funding and liquidity needs, bringing third-party funds to Rp116.37 trillion at the end of March 2023, up 9% yoy from Rp106.73 trillion in the same period last year.
The growth in third-party funds was because time-deposit balance rose 10% to Rp76.81 trillion, from Rp69.71 trillion, and current account savings account balance increased by 7% yoy to Rp39.57 trillion, from Rp37.02 trillion. Meanwhile, the CASA ratio fell from 34.7% to 34.0%.
Bank BTPN also reported a 6%-yoy increase in assets to Rp204.00 trillion at the end of Q1-2023, from Rp192.38 trillion.
Bank BTPN maintained the liquidity and funding ratio at a healthy level, with the Liquidity Coverage Ratio (LCR) standing at 240.66% and the Net Stable Funding Ratio (NSFR) at 126.65% as of March 31, 2023. The company recorded a Capital Adequacy Ratio (CAR) of 29.3%.
As one of the pioneers in the development of digital banking in Indonesia, Bank BTPN continues to improve the reliability of Jenius' features—a life finance solution application for digital savvy customers—through co-creation processes and collaboration with co-creators.
Jenius recorded solid growth as reflected in the 21%-yoy growth of registered users to 4.6 million at the end of March 2023, from 3.8 million in the previous year. Third-party funds managed by Jenius also grew 46% yoy to Rp23.6 trillion on March 31, 2023, from Rp16.2 trillion. The amount of loans disbursed by Jenius through Flexi Cash reached Rp945.8 billion, jumping by 103% yoy from Rp465.0 billion in the same period last year. In addition to Flexi Cash, Jenius has also introduced other loan products, namely the Jenius Visa Credit Card, Buy Now Pay Later, and Digital Micro to meet the diverse needs of digital customers.
“In aligment with the company's aspirations, we are confident that we will be able to maintain this robust performance in an effort to provide the best banking services to fulfill the financial needs of our customers across the board, to help them create a more meaningful life,” Henoch concluded.