HEALTHY FUNDAMENTALS MAINTAINED, INVESTMENT INCREASES, BTPN RECORDS CREDIT GROWTH OF 13%
Jakarta, 8 March 2016 – Focused and consistent in serving lower-income communities, as well as micro, small & medium enterprise (MSME) entrepreneurs, including productive poor communities (mass market), PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) also managed to record a positive performance over the course of 2015.
This is evidenced by the bank’s moderate growth in lending in the midst of a slowdown in economic growth last year. As of December 31, 2015, BTPN had recorded credit of Rp 58.6 trillion, up 13% from the previous year’s figure of Rp 52 trillion (year-on-year/yoy). This growth figure represents a fine achievement, given that it was above the national average for bank credit growth in 2015, which was in the 10% range.
Credit growth was driven by the distribution of funds to productive poor communities as well as MSME entrepreneurs. Loans to productive poor communities rose by as much as 47% (yoy) to Rp 3.7 trillion, while MSME loans increased by 23% (yoy) to Rp 15.6 trillion. Furthermore, pension loans also grew by 9% to Rp 37.9 trillion.
This rise in lending, however, remained offset by the application of prudent banking principles as reflected by a non-performing Loan (NPL) ratio which was maintained at 0.7%. This NPL ratio was far below the average of the banking industry as a whole, which showed a rising trend over the last three quarters of the year.
“Despite an economic situation that remains challenging, we are happy that BTPN has been able to grow while also properly maintaining its credit quality,” said Jerry Ng, President Director BTPN.
These achievements are the successful result of BTPN’s consistency in providing an effective empowerment program to all its customers. Through the Daya program, a measured and sustainable training and guidance program, BTPN continuously strives to enhance the capacities of all its cherished customers.
As of December 2015, BTPN had organized 101,976 Daya activities. Meanwhile, the number of participating customers in the Daya Program had reached 1,410,368. This data illustrates the high level of interest that customers have in taking part in this unique empowerment program.
Innovation has also been key to BTPN's ability to not only survive, but even thrive in such a challenging situation as the present. As a bank with a vision of improving the lives of millions of people in Indonesia, BTPN consistently seeks to innovate in order to provide the public with better and more convenient banking services.
One such innovation was the launch of BTPN Wow! on March 30, 2015. BTPN Wow! is BTPN’s brand for the branchless banking program known asLaku Pandai (Layanan Keuangan Tanpa Kantor dalam Rangka Keuangan Inklusif/Financial Services Without Branches in the Framework of Financial Inclusion), which was initiated by the Financial Services Authority (OJK). This banking concept is both hugely practical and very affordable, as it utilizes cellular phone technology and is supported by the services of agents who act as an extension of BTPN.
From its launch until the end of December 2015, BTPN Wow! had managed to incorporate the services of more than 21,000 agents and had reached as many as 300,000 customers. “The data from these 9 months shows the high level of interest that everyday people have in saving. For us, this cellular phone-based service is very strategic due to the fact most of our target market does not yet have a bank account, lives in villages and is geographically far away from the reach of banking services,” Jerry explained.
As of the end of December 2015, BTPN had made Rp 380 billion worth of investments. Among other things, these funds were used for innovative breakthroughs to facilitate public access to banking by means of infrastructure, network and technological developments. This amount of investment represented a 478% increase from the same period the year before. “Of course, our operating costs went up. However, we feel very confident that this investment will have a significant impact on our business in the years ahead,” Jerry continued.
Furthermore, in order to optimize its role as a financial intermediary, BTPN continued to pay due regard to liquidity adequacy and the pace of lending growth. As of December 31, 2015, Third Party Funds (TPF) stood at Rp 60.3 trillion, up 13% from Rp 53.3 trillion in the same period the previous year. In the meantime, BTPN recorded a loan to deposit ratio (LDR) of 97%. “However, if funding from bonds and bilateral loans is taken into account, total funding would amount to Rp 65.6 trillion, a rise of 7% (yoy), and the BTPN liquidity ratio would be 89%, which is very robust and healthy,” Jerry added.
The relatively moderate growth on the credit front encouraged an 8% increase (yoy) in BTPN’s assets, from Rp 75 trillion to Rp 81 trillion as of December 31, 2015. As to the capital adequacy ratio (CAR), this stood at 23.8%.
With all these achievements, by the end of December 2015 BTPN had recorded a net profit after tax (NPAT) of Rp 1.7 trillion, down 9% from the Rp 1.87 trillion achieved the previous year. “If we exclude the Rp 380 billion we put into new investments, our actual profit would have shown positive growth. Going forward, BTPN will continue to align its short-term objectives, aimed at ensuring good performance, with its long-term objective of making investments to perpetuate sustained growth,” Jerry concluded.