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Jenius Banking Reinvented
28 April 2021
Bank BTPN Books Net Profit Growth in Q1-2021 on the Back of Lower Cost of Credit
Jakarta, 28 April 2021 – PT Bank BTPN Tbk reported growth in net profit in the first quarter of 2021, compared with that recorded in the same period last year, amid challenging conditions due to the COVID-19 pandemic.
Bank BTPN posted Rp 971 billion in net profit after tax attributable to parent in the first three months of 2021, up 29% year-on-year (yoy) from Rp 752 billion. Lower interest expenses and cost of credit contributed to the increase in net profit. Interest expenses dropped 38% (yoy) to Rp 991 billion from Rp 1.61 trillion, while cost of credit fell 60% to Rp 164 billion from Rp 411 billion.
“We should be grateful that Bank BTPN was still able to post an increase in net profit as (economic) conditions are starting to improve,” said Bank BTPN President Director Ongki Wanadjati Dana.
The drop in interest expenses was in line with a downtrend in Bank Indonesia’s benchmark rate and a rise in Current Account Saving Account (CASA) balance and ratio. This altogether also led to a fall in cost of fund. Meanwhile, Bank BTPN’s cost of credit was lower in the first quarter of 2021 because of adjustments resulting from the implementation of PSAK 71 accounting standard.
Bank BTPN’s net interest income was down 4% (yoy) at Rp 2.79 trillion from Rp 2.91 trillion. The drop was relatively small, thanks to lower interest expenses.
Demand for credit remained low due to the pandemic, bringing total outstanding loans to Rp 132.68 trillion as at the end of March, down 15% (yoy). The pandemic also prompted a number of debtors to repay their loans before the maturity dates, which in turn contributed to lower outstanding loans.
A fall in outstanding loans was also because of a decline in the value of foreign currency-denominated loan facilities, which instead would have seen the drop at 12% (yoy) if the translation effect had been taken out.
Bank BTPN managed to keep credit quality in check, as reflected on its gross NPL ratio of 1.42% on March 31, 2021, relatively much lower than the whole banking industry, which posted a gross NPL ratio of 3.21% at February-end 2021.
“We were being selective and prudent in disbursing loans. That is our strategy. We also restructured a number of credit facilities in adherence to Financial Services Authority norms. These measures helped us maintain our gross NPL ratio at a healthy level,” said Ongki.
Bank BTPN’s third-party deposits increased by 2% (yoy) to Rp 98.93 trillion at March-end 2021, from Rp 97.12 trillion a year before, supported by a rise in low-cost funding source, or CASA, which picked up from Rp 28.03 trillion to Rp 30.56 trillion. The increase in third-party deposits also helped Bank BTPN cut its borrowings in order to maintain net interest income.
The Bank also managed to keep liquidity and funding ratios at healthy levels, with liquidity coverage ratio (LCR) recorded at 199.70% and net stable funding ratio (NSFR) 115.6% at the end of March 2021. Bank BTPN posted a 12% (yoy) decline in assets from Rp 199.67 trillion to Rp 174.72 trillion, with capital adequacy ratio (CAR) clocked at 27.5%.
As one of the pioneers in digital banking services in Indonesia, Bank BTPN is determined to continue enhancing Jenius, a life finance solution application for digital-savvy users, amid challenges in the COVID-19 pandemic. The number of Jenius users rose 23% (yoy) to over 3.18 million, while third-party deposits in Jenius surged by 74% (yoy) to Rp14.34 trillion at the end of the first quarter of 2021.
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.