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Jenius Banking Reinvented
10 September 2021
Bank BTPN Books Healthy and Improving Performance in January-June 2021
JAKARTA, 10 September 2021 – PT Bank BTPN Tbk (“Bank BTPN”) reported good performance and healthy growth during the first half of 2021 amid challenges stemming from the sluggish domestic economy and the worldwide pandemic that remained posing uncertainty.
Ongki Wanadjati Dana, President Director of Bank BTPN, conveyed the message in a live public expose held by the Indonesia Stock Exchange, together with the Indonesian Central Securities Depository (KSEI) and the Indonesian Clearing and Guarantee Corporation (KPEI).
Bank BTPN’s net profit after tax attributable to the parent company picked up to Rp1.64 trillion in the first six months of 2021, up 47% year-on-year (yoy) from Rp1.12 trillion in the same period last year.
Bank BTPN attributed the growth in net interest income partly to interest expense that fell 40% yoy from Rp3.14 trillion to Rp1.88 trillion in the first six months of 2021, and to credit expenses that dropped 43% from Rp696 billion to Rp1,22 trillion.
The bank also posted growth in net interest income and other operating income. Net interest income rose 4% yoy to Rp5.59 trillion in the first six months of 2021, compared with Rp5.37 trillion a year ago. Other operating income increased by 5% yoy to Rp960 billion from Rp931 billion, in part thanks to higher fee-based income. Bank BTPN also managed to maintain efficiency, which in turn resulted in relatively stable operating expenses.
“Bank BTPN’s achievement in net profit in the first half of 2021 is something that we should be grateful for. This is the result of agile and adaptive business strategies that we have designed to always adjust ourselves to challenges during the pandemic, which remains. We also see growing optimism towards economic recovery as more public members are receiving vaccine shots,” said President Director Ongki Wanadjati Dana.
In total, third-party deposits dropped to 5% yoy to Rp96.64 trillion from Rp101.40 trillion. The drop in third-party deposits corresponded to Bank BTPN’s efforts to meet funding needs. With credit demand remaining soft because of the pandemic, Bank BTPN’s outstanding loans totaled Rp135.57 trillion at the end of June 2021, down 10% yoy.
Bank BTPN managed to maintain credit quality in good shape, with gross non-performing loan ratio standing at 1.46%, a relatively low figure when compared with an average of 3.35% recorded for the whole banking industry at May-end 2021.
Bank BTPN reported a 5% yoy fall in assets to Rp175.93 trillion from Rp185.19 trillion, and recorded capital adequacy ratio at 27.4%.
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 22% to more than 3.3 million, while third-party deposits in Jenius surged by 44% yoy to Rp15.4 trillion at the end of June 2021.
In the corporate segment, Bank BTPN—part of the SMBC group—also supports SMBC’s Green X Globe 2030 (GG2030) initiatives through sustainable economic activities. Bank BTPN implements the GG 2030 initiatives through sustainable financing or green financing.
Bank BTPN provides such credit facilities by taking into account environmental, social and governance aspects, for economic activities or projects aimed at reducing greenhouse gas emissions. Several prominent projects that receive green financing from Bank BTPN and SMBC include wind power plant in Sidrap, the first wind farm in Indonesia with capacity of 75 MW, hydropower plant in Asahan, and geothermal power plant in Sarula, as well as floating solar power plant in Cirata, the first high-scale solar power plant in Indonesia.
Green financing that Bank BTPN and parent SMBC has provided for green projects allowed the two to receive three awards from the Asset Triple A Infrastructure Awards 2021: on Renewable Energy Deal of The Year-Wind for financing of the Sidrap wind farm, on Renewable Energy Deal of The Year-Hydro for financing of the Asahan hydropower plant, and on Project Finance House of The Year.
In the future, Bank BTPN is set to expand green financing to other projects outside the renewable energy sector, such as projects that can make their operations energy efficient, to projects that cut pollution levels, to clean transportation projects. “With support from regulators, Bank BTPN is optimistic that more industry players would need and benefit from green financing that we provide,” said Ongki.
In addition, Bank BTPN also received several awards in 2021, including D’FRONT RUNNER AWARDS from Telkomsel in the retail banking category for Bank BTPN’s achievement in supporting and accelerating transformation of digital business. In the corporate social responsibility (CSR) front, Bank BTPN was also granted 4-Star TOP CSR Awards 2021 with “VERY GOOD PERFORMANCE”, based on alignment of CSR-business strategies, implementation of corporate shared values (CSV), and ISO 26000 sustainability report. Ongki also received the Top Leader on CSR Commitment 2021 Award from Top Business magazine for his commitment to implementing governance and CSR programs in workplace.
In the human resources front, Bank BTPN also obtained “The Best Companies to Work for in Asia 2021” in HR Asia Awards.
In addition, Bank BTPN received special award as “Digital Bank Pioneer in Indonesia” in the Investor Awards: Best Bank 2021 event in August from Investor magazine.
In regard to handling of COVID-19, Bank BTPN has implemented a number of steps to support the health and safety of employees. A number of initiatives were rolled out throughout the first half of 2021, including participation in the government’s Gotong Royong Vaccination program to provide shots for employees and their family members, a government vaccination program in cooperation with the Health Ministry and health agencies in regions, the provision of 45 oxygen concentrator units to be distributed to Bank BTPN branches for use by employees and their family members who are in need during their self-quarantine period.
For further information please contact:
PT Bank BTPN Tbk
Andrie Darusman – Communications & Daya 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.