26 August 2020

Bank BTPN Books Healthy 5% Loan Growth in H1-2020 amid Pandemic

JAKARTA, 26 August 2020 – PT Bank BTPN Tbk (Bank BTPN) managed to keep its loans growing in the first half of 2020 from a year ago, amid the novel coronavirus pandemic.

The Bank disbursed about Rp 150.5 trillion of loans as of the end of June, 5% higher from Rp 143.4 trillion booked in the same period last year.

Bank BTPN’s credit growth was much higher than 1.49% growth booked at June-end for the entire banking industry.

Bank BTPN remained prudent and selective in disbursing loans to ensure it yielded quality growth and its fundamentals stayed in good shape, while at the same time it catered to customers’ needs during this time of hardship.

The corporate segment--which provides long-term financing for, among others, energy security, food security and infrastructure projects-- was the main driver to the Bank’s credit growth during the period and has become Bank BTPN’s commitment to sustainable economic growth in Indonesia.

The Bank also managed to maintain customers’ trust, as shown in its third-party deposits that increased by 4% to Rp 101.4 trillion as of June 30, 2020, from Rp 97.9 trillion in the corresponding period last year, despite lower deposit rates as a result of a downtrend in Bank Indonesia’s policy rate.

With a Capital Adequacy Ratio (CAR) of 23.09% as of the end of June this year, the Bank proved to have a solid capital structure. It was higher than 22.05% recorded for the industry.

“We are grateful because Bank BTPN is able to weather challenges and remain resilient during this hard time by maintaining healthy credit portfolios so that that the impact of the pandemic can be minimized," said Bank BTPN President Director Ongki Wanadjati Dana.

"The relatively good performance in the first half of 2020 made us even more motivated to better serve millions of Indonesians," he said.

In a bid to help customers stay afloat during the pandemic, the Bank restructured Rp 10.2 trillion worth of loans, or around 6.7% of the total portfolios.

The Bank, while also felt the pinch of the pandemic, managed to limit the fall of its net profit.

As of June 30, 2020, Bank BTPN’s net profit dropped 10% year-on-year to Rp 1.12 trillion, largely due to a 63% year-on-year increase in cost of credit.

Gross non-performing loan ratio increased to 1.12%, compared to 0.81% of June last year. This figure, however, was still relatively low compared with 3.11% reported for the banking industry at the end of June this year.

The Bank's liquidity conditions which are reflected in liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) are far above the regulatory provisions (100%). The Bank’s LCR was 221.96% while NSFR was 116.56% by end of June 2020.

With the vision to be the first choice bank in Indonesia that gives significant change in the life of millions of people through digital technology, Bank BTPN consistently develops Jenius as a platform to serve a wider customer segment. By the end of June 2020, Jenius recorded 2.7 million registered users, a 65% increase from a year before.

"The COVID-19 pandemic made us realize that digital banking services have become increasingly important in our daily lives. Going forward, we have become more confident to continuously develop this platform to support the retail banking business of Bank BTPN," said Ongki.

For further information please contact:

PT Bank BTPN Tbk
Andrie Darusman – Daya & Corporate Communications Head
Telp: 021-30026200
Email: andrie.darusman@btpn.com or corporate.communications@btpn.com


Bank BTPN in brief

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). Bank BTPN is focusing to serve the mass market segment comprising of retirees, micro-, small- and medium-enterprises (MSME) and mass market; the consuming class segment; and corporate segment. The business focuses are supported by Bank BTPN business units including BTPN Sinaya– a financing business unit, BTPN Purna Bakti– a business unit focusing to serve retirees, BTPN Mitra Usaha Rakyat– a business unit focusing on micro businesses, BTPN Mitra Bisnis– a business unit focusing on serving small and medium enterprises, BTPN Wow!– a financial inclusiveness focusing on the unbanked segment, Jenius– a digital banking platform serving the consuming class segment, and corporate business unit which focuses on serving national, multinational and Japanese companies. BTPN also has a subsidiary namely theBTPN Syariahwhich focuses on serving customers from the mass market. Through the Daya Program, which is a sustainable and measurable empowerment program for the mass market, Bank BTPN regularly gives training and information to improve the customers’ capacity so they can grow and have a chance to live better.