JAKARTA, August 1, 2023 - PT Bank BTPN Tbk (Bank BTPN) recorded positive growth in the first half of 2023 as interest income, net interest income, and operating income increased.
Interest income grew by 26%, while net interest income was recorded at Rp5.95 trillion, or an increase of 4% year-on-year (yoy), amid an uptrend in interest rates.
On the other hand, Bank BTPN also recorded a 3%-yoy rise in operating income (consolidated), while Pre-Provision Operating Profit (PPOP) stood at Rp3.32 trillion. The bank managed to keep Net Interest Margin (NIM) stable at 6.3%.
Bank BTPN decided to increase credit reserves in the second quarter of 2023 as part of the bank's anticipation efforts regarding restructuring in the corporate segment and mitigation efforts as the government’s COVID-19 stimulus policy has ended.
With the additional provision, Bank BTPN’s cost of credit increased by Rp422 billion and it affected Bank BTPN's net profit after tax (consolidated). Net profit after tax attributable to owners of the parent entity was recorded at the level of Rp1.46 trillion during January-June 2023, or down 13% from a year ago.
“We are grateful for the fact that Indonesia has entered the endemic transition period, which is time for the economy to recover. Bank BTPN continues to support various government policies to boost growth and anticipate credit risk,” said Bank BTPN President Director Henoch Munandar.
“The recovery of the economy also serves a fresh start that people have been waiting for,” he added.
In terms of credit, credit in the Small-and-Medium-Enterprise (SME) and sharia segments rose 18% yoy and 8% yoy, respectively. Total loans disbursed by Bank BTPN dropped 0.4% yoy to Rp148.71 trillion as of the end of June 2023.
Bank BTPN is always committed to maintaining its credit quality. The bank's gross non-performing loan (NPL) ratio was maintained at 1.39%, still lower than the industry average of 2.52% at the end of May 2023.
Bank BTPN's third-party funds increased by 4% yoy to Rp107.35 trillion at the end of June this year, from Rp103.17 trillion in the same period last year.
Bank BTPN managed to maintain liquidity and funding ratios at a healthy level, with Liquidity Coverage Ratio (LCR) reaching 223.3% and Net Stable Funding Ratio (NSFR) at 124.0% as of June 30, 2023. The bank’s capital adequacy ratio (CAR) stood strong at 29.8%.
In line with the vision to become the first choice of bank in Indonesia that gives significant change in the lives of millions of people especially through support from digital technology, Bank BTPN consistently develops the reliability of Jenius, one of the pioneers in digital bank and life finance solutions for digital-savvy customers.
Jenius continued to show strong growth by recording a 19%-yoy increase in registered users to 4.8 million at the end of June 2023, from around 4 million in the same period last year.
Funding balance managed by Jenius also showed an increase of 43% yoy to Rp24.7 trillion from Rp17.3 trillion at the end of June 2022. Furthermore, total loans disbursed by Jenius reached Rp1.3 trillion at the end of June 2023 or increased by more than two times (119% yoy) compared with Rp602.1 billion reported in the same period last year.
Through various innovations to fulfill the financial needs of digital-savvy people, Jenius now comes with a number of loan products, such as Flexi Cash, Digital Micro, Jenius Credit Card, and Jenius Paylater.
The growth of Jenius users cannot be separated from increased awareness of financial literacy, especially among Gen Z and Gen Y customers who are currently dominating investment trends.
As a digital financial service provider that offers financial solutions, Jenius continues to innovate by prioritizing collaboration and co-creation processes so that every Jenius feature serves as a solution that meets users’ financial needs, including investment in mutual funds.
Jenius is also committed to increasing literacy among young investors regarding the right choice of investment products through various educational approaches both on and off the application. This helps investors know their level of tolerance toward investment risk and the suitable composition of the product.
“Bank BTPN always applies the principle of prudence in determining strategic directions and business decisions, to support growth of the company and each business unit,” said Henoch.
“In the second half of 2023, we will focus on our efforts to continue boosting our positive performance by growing the credit according to risk appetite, growing CASA, increasing fee-base and forex income, as well as cross-selling activities, so we can continue contributing to the strengthening of the economy in the post-pandemic era and provide greater benefits for the people of Indonesia,” concluded Henoch.