CREDIT QUALITY MAINTAINED, INVESTMENT RISES. BTPN POSTS CREDIT GROWTH OF 11% WITH A NPL RATIO OF 0.8%
Jakarta, 19 October 2015 – 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) extended its positive performance while consistently reinforcing its role in empowering all of these segments.
This is reflected in lending which continued to see moderate growth even amidst challenging economic conditions. As of 30 September 2015, BTPN’s total lending stood at Rp 56.9 trillion, up 11% over the same period last year when total credit amounted to Rp 51.1 trillion (year on year/yoy).
Credit growth was driven by an increase in lending to productive poor segments as well as to MSME entrepreneurs. Lending to productive poor communities soared by 46% (yoy) to Rp 3.2 trillion while MSME loans also rose steeply by 31% (yoy) to Rp 15.2 trillion. "This data demonstrates the high demand for funding amongst disadvantaged groups of society, and also shows that MSMEs are remaining admirably resilient despite the current challenging economic environment. We are extremely pleased that in these circumstances we have been able to continue enhancing our financing of MSMEs," said Jerry Ng, President Director of BTPN.
The rise in lending remained offset by the application of prudent banking principles as reflected by a non-performing loan (NPL) ratio which was maintained at 0.8%. This non-performing loan ratio was far better than the banking industry average which has shown an increase over the last three quarters. “We are thankful that BTPN has remained able to carry out its intermediary role in an exemplary fashion in the midst of a demanding economic situation. Robust credit growth of 11% along with a healthy non-performing loan (NPL) ratio of 0.8% demonstrate that we are still committed to expanding without compromising on our precautionary principles," added Jerry.
These achievements are testament to BTPN’s consistency in providing empowerment programs to all of its Customers. Through the Daya Program, a training and guidance program offered on a sustainable and measured basis, BTPN continually strives to enhance the capacities of all its Customers.
By the end of September 2015, BTPN had organized 24,366 Daya activities, while the number of participating customers in the Daya Program reached 347,964. This data illustrates the high level of interest that Customers have in taking part in empowerment programs.
Furthermore, in order to enhance its role in empowering the mass market segment and providing better service to the public, BTPN also continued to come up with a number of innovations. One of its more recent innovations came in the form of the launch of BTPN Wow!.
BTPN Wow! is a BTPN brand formed under the auspices of the branchless banking program (Layanan Keuangan Tanpa Kantor dalam Rangka Keuangan Inklusif, or Laku Pandai) initiated by the Financial Services Authority (FSA). BTPN Wow! is a practical and affordable banking service which harnesses mobile phone technology and is supported by agents that act as an extension of BTPN in enhancing the reach of its services to customers in all corners of Indonesia.
"We are confident that this service will improve public access to the banking system. For BTPN, this mobile phone-based service is very strategic because most of its target market don't yet have a bank account, and live in villages far away from the reach of banking services," said Jerry.
Going forward, BTPN will continue innovating and investing to come up with breakthroughs which extend public access to banking. As of the end of September 2015, BTPN had made Rp 225 billion worth of new investment in the development of infrastructure, networks and technologies. This investment represented a 619% increase over the same period last year. "This new investment has naturally pushed up our operating costs. However, we believe it will have a significant and positive impact on our business in the future," Jerry continued.
In addition to innovating, in order to optimize its intermediary role, BTPN also sought to pay attention to its liquidity adequacy and loan growth rate. As of 30 September 2015, Third Party Funds (TPF) stood at Rp 59 trillion, up 12% from Rp 52.6 trillion in the same period last year. Meanwhile, the bank’s loan to deposit (LDR) ratio was 96%, better than last year’s position of 97%. “However, if funding from bonds and bilateral loans is taken into account, the BTPN liquidity ratio stood at a very healthy and strong 87% level,” said Jerry.
The relatively moderate growth on the credit front encouraged a 12% increase (yoy) in BTPN’s assets, from Rp 71.7 trillion to Rp 80.1 trillion as of 30 September 2015. As to the capital adequacy ratio (CAR), this stood at 23.8%.
"If we disregard all the new investments, our profits actually growing. With this in mind, we are optimistic that BTPN will continue to improve its performance going into the future," Jerry concluded.