Jakarta, 30 April 2015 – Focused and consistent in serving the lower income segments of society, micro, small and medium enterprise (MSME) entrepreneurs, including productive poor communities (mass market), PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) continues to strengthen its role in these segments.
This is reflected by credit disbursement in the first quarter of 2015 which show moderate growth. As of 31 March 2015, BTPN recorded credit of Rp 53.4 trillion, an increase of 13% from the figure in the same period last year of Rp 47 trillion (consolidated). In the MSME sector, lending amounted to Rp 13.7 trillion, up 29% in comparison to March 2014’s position of Rp 10.6 trillion. Loans to pensioners, meanwhile, also enjoyed growth of 11% to Rp 35.2 trillion by the end of March 2015.
“Activities in the MSME segment constitute one of BTPN’s core forms of business. We are grateful to be able to keep enhancing our participation in financing the MSME sector in Indonesia,” said Jerry Ng, President Director of BTPN.
Similarly, lending to productive poor communities through the subsidiary BTPN Syariah showed a positive performance. Credit to this segment soared by 64% (year on year/yoy) from Rp 1.62 trillion to Rp 2.65 trillion.
“The huge expansion of credit to the productive poor segment is a tremendous achievement, given that the average customer loan is less than Rp 2 million per person. It indicates the great need for funding in lower income segments,” Jerry added.
This rise in lending remained offset by the application of prudent banking principles, as reflected by a gross NPL ratio maintained at the 0.8% level this quarter. This ratio was far below the NPL threshold set by regulators.
This performance was an integral part of BTPN’S consistency in empowering the mass market. Through the sustainable and measured training and mentoring packaged in the Daya Program, BTPN continually strives to enhance the capacities of its customers.
During the first quarter of 2015, BTPN organized 21,965 Daya activities. Meanwhile, the number of customers participating in the Daya Program reached 311,795. This data shows the high level of interest that customers have in taking part in empowerment programs.
In the meantime, in order to adjust the pace of credit growth and improve the cost of funds, BTPN continued to balance its funding portion with consideration to liquidity adequacy. As of 31 March 2015, Third Party Funds (TPF) were recorded at Rp 54.4 trillion, a rise of 10% from the total in the same period last year of Rp 49.3 trillion. Meanwhile, funding derived from bilateral loans and bonds amounted to Rp 8.3 trillion, up 28% from the figure in the same period last year of Rp 6.4 trillion. As such, BTPN's total funding grew 12% (yoy) to Rp 62.6 trillion.
By balancing the accumulation of TPF and the disbursement of credit, BTPN recorded a loan to deposit ratio (LDR) of 98%. However, if funding from bonds and bilateral loans is taken into account, BTPN’s liquidity ratio is at the 85% level. In addition, BTPN still has a loan facility from SMBC and IFC of USD 300 million which can be called upon at any time. “This ratio indicates that our liquidity condition remains very robust and healthy,” Jerry continued.
The moderate growth on the credit front drove a rise in BTPN assets of 14% (yoy) from Rp 67.3 trillion to Rp 76.6 trillion as of 31 March 2015. As to the capital adequacy ratio/CAR, this stood at 24.9%, far above the ideal threshold set by regulators.
Furthermore, net profit after tax (NPAT) in the first quarter of 2015 totaled Rp 481 billion, a slight drop of 3% from the figure in the same period last year of Rp 493 billion. “The performance of the first quarter in general demonstrated good momentum. We remain optimistic that going into the future, BTPN will manage even greater growth,” said Jerry.
In the years ahead, BTPN will carry on creating a variety of new innovations aimed at enhancing its role in empowering the mass market segment. Most recently, for example, BTPN has officially become one of the banks implementing the Financial Services Using Virtual Offices in the Framework of Inclusive Finance program (Laku Pandai) with the launch of BTPN Wow! on 30 March 2015.
“Laku Pandai is a revolutionary concept that will alter the behavioral pattern of the Indonesian public in terms of banking, while also changing the competitive landscape of the banking industry in the future. We believe that the greater the number of people coming into the banking system (bankable people), the greater the number of new financing opportunities that will open up. Moreover, banks will also become more efficient in serving customers in all corners of our vast archipelago,” Jerry concluded.