Loans Grow 29%, Public Funds Grow 43%, Net NPLs 0.02%, Assets Grow 39%
Jakarta, 29th July 2009. The Financial Statement of PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) as of 30th June 2009 demonstrates positive development and reflects the capacity development activities that will ensure sustainable performance growth going forward.
Consistent with the Company's commitment to channel loans to pension and Micro & Small Enterprises (MSEs) markets, as of 30th June 2009, total loans (gross) reached Rp 12.04 trillion or increased 29% from Rp 9.37 trillion as of 30th June 2008. As the Company provided loans under consistent application of the prudential principles in its risk management, NPL ratio continued to move in positive direction. As of 30th June 2009, gross NPL ratio stood at 0.55%, lower than 0.67% as of 30th June 2008, and net NPL ratio as of 30th June 2009 was 0.02%, showing a decrease compared to 0.03% as of 30th June 2008. Meanwhile, total assets amounted to Rp 18.24 trillion, representing an increase of 39%.
The increase in lending was complemented with significant increase of public funds, which totaled Rp 15.93 trillion as of 30th June 2009, or increased by 43% over the same period last year. "We always maintain a balance between lending growth and the growth of public funds as part of our commitment to optimize our banking intermediary function," said Jerry Ng, President Director of the Bank.
Operating income up to 30th June 2009 reached Rp 898.7 billion or grew by 10% from Rp 816.2 billion for the same period of the previous year. The increase in operating income proved BTPN's capability to boost interest income generated by lending to pension and MSE markets.
In relation to the business strategy of serving Micro & Small Enterprise market, the Bank makes consistent development in its operational network, by developing the infrastructure through the expansion of btpn|mitra usaha rakyat branch network and additional recruitment of human resources. This development, as anticipated, increased operating expenses, leading to a 33% decrease (compared to 30 June 2008) in the Bank's net income to Rp 140.6 billion as of 30th June 2009. However, in comparison to the previous quarter, the quarterly net income in Q2 2009 of Rp 83.2 billion still enjoyed an increase of 45% from Rp 57.4 billion of Q1 2009.
As of 30th June 2009, BTPN had expanded its distribution network by 47% from 467 offices as of the end of 2008 to 688 offices as of 30th June 2009, including 241 offices of Micro & Small Enterprises division known as btpn | mitra usaha rakyat. The expansion in distribution network was supported by the expansion in workforce, as total employees increased by 48% from 5,237 people as of the end 2008 to 7,749 people as of 30th June 2009.
btpn | mitra usaha rakyat offers its package called the Opportunities for Growth, where customers are provided with not only the Capital to Grow, i.e. the financial solutions for growth, but also the Capacity to Grow, whereby they are supplied with the skills and information necessary to grow their business.
Meanwhile, for the pension market, Bank has recently launched a program called Pension Health & Wellness Program (Program Sehat & Sejahtera - PSS) - a care program aimed at assisting pensioners to run a life of better health and welfare. PSS activities are conducted regularly, and include the community center for pensioners, health information, consultation program (interactive dialogue, free health services and sharing success stories), as well as the information of business opportunities.
"We are truly confident that the combination of operational infrastructure development, good risk management, as well as the expansion of MSE branch offices, pension market, and human resources, will improve BTPN's sustainable performance BTPN going forward," explained Jerry.
In addition to such positive development, as of 30th June 2009, BTPN managed to maintain the capital adequacy ratio at 23.0% or well above the 8% limit required by Bank Indonesia.
BTPN is pursuing a plan to issue bonds amounting to Rp 500 billion in the near future, with PT CIMB Securities Indonesia and PT Mandiri Sekuritas as the underwriters of the issuance. At the beginning of this month, the Bank has received the national long-term rating of A + (idn) with positive outlook from Fitch Ratings. "This bond issuance is part of our strategy to secure long-term funding. The combination of the proceeds and the funds we raised from the public will definitely provide us with the funding resources we need to perform our intermediary function optimally," Jerry concluded with a positive note.
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