Jakarta, February 24, 2022 - Bank BTPN was able to record good performance in 2021 by prioritizing the principle of prudence amid uncertain situations. Total credit disbursed by Bank BTPN as of the end of December 2021 was recorded at Rp135.60 trillion, in which the corporate, commercial, and sharia segments recorded credit growth of 7%.
Bank BTPN's consolidated net profit after tax attributable to the parent company for 2021 picked up to Rp2.66 trillion, up 52% from Rp1.75 trillion in the previous year. The increase of net profit was supported by interest expenses that fell 38% from Rp5.78 trillion to Rp3.61 trillion, the increase in other operating income by 16% from Rp1.69 trillion to Rp1.96 trillion, as well as a 25% decrease in cost of credit from Rp2.80 trillion to Rp2.11 trillion.
“We are proud of our achievement as this resulted from every strategy that was carefully designed to ensure our customers always received the best banking solutions and services. On top of that, this achievement also reflects stronger fundamentals despite the uncertain conditions caused by the pandemic," explained Ongki Wanadjati Dana as President Director of Bank BTPN in in a virtual media briefing.
The decline of Bank BTPN’s interest expense was in line with the downtrend in Bank Indonesia's benchmark interest rate and the rise of Current Account Savings Account (CASA) balance and ratio, resulting in lower cost of funds, as reflected in the decrease of rupiah funding fee from 5.0% in Quarter IV-2020 to 3.3% in Quarter IV-2021. Credit costs were lower than a year before because of the implementation of PSAK 71 accounting standards. Bank BTPN continues to monitor customer credit quality, manage credit restructuring and maintain adequate credit cost reserves.
Bank BTPN also recorded an increase in other operating income of 16% from Rp1.69 trillion to Rp1.96 trillion, mainly from the increase of fee-based income, including fees from foreign exchange transactions and investment products. Meanwhile, operational costs increased slightly by 1% from last year to Rp6.98 trillion.
On the other hand, Bank BTPN has managed to maintain customer credit quality at a healthy level, as reflected in the gross NPL ratio of 1.68%, lower than the industry average of 3.19% at the end of November 2021.Overall, Bank BTPN's third-party deposits recorded an increase of 9% from Rp100.79 trillion at the end of December 2020 to Rp109.38 trillion at the end of December 2021.
This was caused by the increase in the amount of CASA by 37% from Rp27.69 trillion to Rp37.88 trillion, so the CASA ratio also rose from 27.5% to 34.6%, while time deposits decreased 2% YoY to Rp 71.5 trillion. The efforts to raise third-party deposits were in line with its plan to reduce the cost of funds, as Bank Indonesia's benchmark interest rate was in the downtrend.
Bank BTPN also maintains healthy liquidity and funding ratios that exceeded the minimum requirement throughout 2021, amid economic deceleration due to the COVID-19 pandemic. The liquidity coverage ratio (LCR) was recorded at 187.3% and net stable funding ratio (NSFR) at 126.7% as of December 31, 2021. Bank BTPN recorded an increase in assets by 5%, from Rp183.17 trillion to Rp191.92 trillion, with a capital adequacy ratio (CAR) booked at 26.2%.
"We, as the banking institution, take part in economic recovery efforts through incentives and programs to help customers. We believe we can maintain this good performance and further strengthen fundamentals to create more impacts to and reach out to more people in Indonesia," concluded Ongki.