Bank BTPN's positive performance during Semester I-2024 was marked by credit distribution growth reaching 19% yoy and an increase in assets of 22% yoy.

Jakarta, July 30, 2024 – PT Bank BTPN Tbk (Bank BTPN) recorded positive performance throughout Semester I-2024 in line with the company's efforts to provide a positive impact on society through inclusive financial services.

"Bank BTPN is committed to creating meaningful growth for all levels of society. We also continue to encourage the development of prospective sectors so that the impact of the company's business sustainability benefits stakeholders widely," said Henoch Munandar, President Director of Bank BTPN.

In the first half of this year, Bank BTPN was able to record significant credit and asset growth as a result of the company's commitment to sustainable economic growth by expanding product and service innovations that are relevant to customer needs.

Bank BTPN's consolidated financial report for the period January-June 2024 has taken into account the financial performance of PT Oto Multiartha and PT Summit Oto Finance, which Bank BTPN acquired at the end of March 2024. Both financing companies are part of the OTO Group, the majority shares of which are now owned by Bank BTPN.

Bank BTPN's acquisition of the OTO Group played a major role in credit and asset growth. Credit distribution through the OTO Group is used to support the mobility of the wider community.

Bank BTPN's assets grew 22% year-on-year (yoy) to Rp235.8 trillion. Meanwhile, Bank BTPN's credit distribution increased by 19% yoy to Rp176.2 trillion at the end of June 2024.

On the other hand, the current account & saving account (CASA) balance was recorded to have increased by 29% yoy to Rp48.1 trillion at the end of June 2024, and deposits increased by 1% yoy to Rp70.9 trillion, so that the CASA ratio also increased to 40.4% at the end of June 2024. Thus, total third-party funds grew by 11% yoy to almost Rp119.0 trillion at the end of June 2024. Bank BTPN continues to optimize the cost of funds.

Bank BTPN also issued Sustainable Bonds V Phase I Year 2024 with a principal amount of Rp355 billion in early July 2024 as an effort to diversify funding sources and maintain a better funding maturity profile.

In the company's efforts to increase credit distribution, especially in potential sectors, Bank BTPN continues to maintain its credit quality. Bank BTPN's gross non-performing loan (NPL) ratio was at 2.21% as of the end of June 2024, lower than the industry average of 2.34% at the end of May 2024.

Bank BTPN also maintains liquidity and funding ratios at a healthy level, with a liquidity coverage ratio (LCR) reaching 234.9% and a net stable funding ratio (NSFR) of 115.6% as of June 30, 2024. The company recorded a strong capital adequacy ratio (CAR) of 28.8%.

Bank BTPN's efforts to generate net interest income have also increased, reflected in the net interest margin (NIM) that rose to 6.41% at the end of June 2024 from 6.33% a year earlier. Bank BTPN's net interest income also rose by 17% yoy to almost Rp7.0 trillion on June 30 amidst still-high interest rates.

The increase in net interest income drove operating income (consolidated) to grow by 18% yoy to Rp8.2 trillion.

Bank BTPN's net profit after tax (consolidated) attributable to owners of the parent entity was recorded at Rp1.2 trillion at the end of June 2024, lower by 15% yoy. This decrease in net profit occurred due to an increase in credit costs of 46% yoy, or Rp540 billion, following the acquisition of OTO Group.

The decrease in net profit also occurred due to a 26%-yoy increase in operating costs to Rp4.6 trillion, in line with the growth in business volume and initiatives that Bank BTPN is working on.

Developing Digital Capabilities Relevant to Current Financial and Lifestyle Trends

Bank BTPN, a pioneer of digital banking in Indonesia through Jenius, consistently develops digital capabilities to ensure easy and secure access to various financial solutions. These efforts are the foundation that makes Jenius a life finance solution for digital-savvy communities.

Since its launch in 2016, Jenius has continued to present customer-centric innovations. The features that Jenius presents through the Jenius Debit Card, Jenius Credit Card, Save It, Jenius Paylater, and Flexi Cash are able to answer the needs of digital-savvy communities in managing their finances and achieving their goals.

Armed with solutions that are relevant to customer behavior, Jenius has succeeded in growing the number of registered users by 21% yoy to 5.8 million as of the end of June 2024, from 4.8 million the previous year. Total credit distribution (Flexi Cash, Digital Micro, Jenius Credit Card, and Jenius Paylater) also increased by 134% yoy to Rp3.1 trillion, from Rp1.3 trillion. Third-party funds managed by Jenius also grew by 10% yoy to Rp27.2 trillion.

Sustainable Initiatives to Create a More Meaningful Life

In order to provide a wider positive impact on society, Bank BTPN continues to strengthen the company's focus on sustainable initiatives through the Daya program. Each program in Daya is designed to be relevant to the needs of the target community groups through four main pillars, namely financial literacy, self-capacity development, business capacity building, and sustainable living.

The Daya program has reached more than 6.3 million total beneficiaries through 4,905 activities from January to June 2024.

"This empowerment program complements the financial and financing solutions that we present to enable more customers and the community to have a more meaningful life," concluded Henoch.

¹ BI-RATE HELD AT 6.25%: STRENGTHENING STABILITY AND MAINTAINING GROWTH FROM IMPACT OF GLOBAL SPILLOVERS

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