Jakarta, April 25, 2019 – PT Bank BTPN Tbk has booked a positive performance in the first quarter (Q1) of the year 2019. The bank – a merger between PT Bank Tabungan Pensiunan Nasional Tbk and PT Bank Sumitomo Mitsui Indonesia (SMBCI) – has recorded an increase in asset value, has a solid capital and starts to serve a wider segment.
By the end of March 2019, Bank BTPN’s assets reached Rp 192.2 trillion, a 101% increase from the same period last year (year-on-year/yoy) of Rp 95.8 trillion. Meanwhile, credit lending was recorded at Rp 139.84 trillion, or a 114% growth in the same period. The asset value and credit are the combination of the Bank BTPN and SMBCI balance, which merged on February 1, 2019.
Bank BTPN President Director Ongki Wanadjati Dana explained that in the first quarter of the 2019, the new entity only worked effectively for two months in February and March. Despite the short period, the organizational structure of the bank has worked optimally to maintain the growth. It shows that the merger has met the expectation.
“For us, this year is a consolidation year as a continuation of the merger process that finally finished early February. This period is, of course, challenging and we are grateful that we can start the integration phase smoothly and it is reflected in our achievement in the first quarter performance,” Ongki said.
Bank BTPN’s credit growth in Q1 2019 was supported by the corporate segment, small medium enterprises (SME), consumer financing and productive poor financing through its subsidiary of BTPN Syariah. “This achievent shows our commitment in boosting the real sector and participate in growing the national economy. We serve our customers from the smallest segment to large corporations,” Ongki said.
Bank BTPN has served large scale corporations in Indonesia, such as state enterprises (BUMN), multinational companies, Indonesian conglomerations and Japanese companies. The corporate financing is for, among others, infrastructure projects and the supporting industries related to the development programs set by the government of Indonesia.
“Before the merger, the business was fully managed by SMBCI. After the merger, the portfolio is included in the Bank BTPN balance. If we compared with the position last year, corporate financing grew by 12% from Rp 64.3 trillion to Rp 71.9 trillion (yoy),” said Ongki.
Ongki elaborated that the corporate segment still had a room to grow. This optimism is in line with the government’s major agenda in boosting infrastructure to materialize the economic development and equality. “Sumitomo Mitsui Banking Corporation (SMBC), our major shareholder, has a strong belief on the future economy of this country. By having this merger, SMBC wants to have a bigger contribution,” he said.
Meanwhile, credit for SMEs grew by 13% to Rp 13.5 trillion, the productive poor financing grew by 20% to Rp 7.5 trillion and the consumen lending jumped by 106% into Rp 6.11 trillion. Whereas credit for pensioners contracted by 2% into Rp 37.7 trillion. “In the future, we plan to develop commercial segment and strengthen our retail banking. Our products and services will be more comprehensive,” Ongki added.
Apart from new business expansion, Bank BTPN will still consistently creating product innovation and digital-based services through BTPN Wow! and Jenius, as well as going digital in the existing business. This digitalization has made BTPN more integrated and more focused in fulfilling the customers’ needs quicker, easier and saver. “Due to our consistencies, we were named by Forbes magazine as the second best banking in Indonesia. This ranking was based on research on customers’ perception on bank services. We are proud with this achievement, considering our status as the BUKU III bank and is still in the consolidation process,” Ongki said.
From a number of indicators, Bank BTPN has shown a healthy and strong performance. The capital adequacy ratio(CAR) is at 23.1%, the non-performing loan(NPL) is at 0.8% and the loan to funding ratio (LFR) is at 89%. The net profit after tax(NPAT) is at Rp 507 billion yoy, lower by 5%. By excluding the tax, the profit of Rp 801 billion was similar to last year. “This is due to the high cost of fund while the capacity to companesate the increasing fund to our debtors is limited,” Ongki concluded.