Jakarta, 19 May 2020 – Amidst challenging global conditions due to the Covid-19 pandemic, PT Bank BTPN Tbk managed to record a positive performance in Quarter 1-2020. This was reflected in a loan growth of 12% on an annual basis (year-on-year/yoy), from Rp 139.8 trillion at the end of March 2019 to Rp 157 trillion at the end of March 2020.
Lending was maintained by observing the prudential principles so as to produce quality growth. The ratio of non-performing loans (NPLs) was relatively low, namely 0.97% (gross). "With the uncertainties surrounding global economic situation, coupled with the latest developments of Covid-19 pandemic, we are trying to keep the bank's performance positive. This is our commitment in supporting the Indonesian economy, "said President Director of Bank BTPN, Ongki Wanadjati Dana.
Loan growth was supported by corporate lending amounting to Rp 92 trillion. In serving this customer group, Bank BTPN focuses on channeling financing through a number of syndications for energy and food securities as well as infrastructure projects. Aside from syndications, BTPN Bank also provides bilateral loans to national private companies, state-owned enterprises, automotive industries, to companies engaged in export/import sector.
"Financing the corporate segment demonstrates our long-term commitment as well as controlling shareholder Sumitomo Mitsui Banking Corporation (SMBC) in realizing prosperity and sustainable economic growth in Indonesia," said Ongki. In addition to corporate financing, lending is also supported by the loans channeled to small and medium enterprises (SMEs) and commercial segments, also towards productive poor groups through subsidiary company, BTPN Syariah.
To balance the credit growth pace, Bank BTPN raised funding of Rp 161.2 trillion by the end of March 2020, an increase of 3% from the same period last year. The amount consisted of third party funds worth Rp 97.1 trillion, bilateral loans of Rp 57 trillion, and subordinated loans of Rp 7.1 trillion. From the total of third party funds, Bank BTPN has succeeded in increasing its current account savings account (CASA) portion to 29% in the first quarter of 2020, higher than in the first quarter of 2019 which was 21%.
"CASA growth has positive impact on the cost of funds. In addition to making us more competitive, the increase in CASA also shows increasing public confidence in the savings products we offer, including in the life finance solution service Jenius," said Ongki.
By the end of March 2020, Jenius registered users reached more than 2.5 million customers, growing 85% from the end of March 2019 which was 1.4 million customers. The amount of savings (funding) through Jenius reached Rp 8.3 trillion. This data shows that Bank BTPN's digital innovation has begun to bear fruit. People are also increasingly accustomed to using digital products and services.
"We feel fortunate to carry out digital transformation since long ago. We always believe that Jenius will play an important role in the development of retail business in the future," said Ongki.
According to Ongki, liquidity has become the main challenge facing the banking industry in current condition. Bank BTPN is one of the banks that has very strong liquidity and is sufficient to support the company's target. In addition to relying on third party funds, bonds, and bilateral loans, Bank BTPN also received support from the holding company in the form of standby facility as a source of funding. The total offshore borrowing limit facility provided by SMBC amounting to US $ 2.8 billion (around Rp 46 trillion).
Bank BTPN's liquidity adequacy is also evident in its liquidity coverage ratio (LCR) of 212% and net stable funding ratio (NSFR) of 116%, far above the minimum regulatory requirement of 100%. LCR is an instrument to calculate short-term liquidity ratios, while NSFR is for calculating long-term liquidity ratios.
At the end of the first quarter of 2020, Bank BTPN's assets grew 4% to Rp 199.7 trillion. Net profit after tax (NPAT) was Rp 752 billion, an increase of 48%. With a capital adequacy ratio (CAR) of 22.5%, Bank BTPN still has strong expansion capabilities.
Related to Covid-19 pandemic, Bank BTPN understands well its negative impact on the economy and supports various government efforts in order to ease the burden on Indonesian society. Therefore, the Bank helped provide credit relaxation to debtors whose business activities were really affected by the Covid-19 pandemic.
"The pandemic is certainly very challenging to everyone, including for us in the banking industry. But we are grateful for our performance achievements at the beginning of this year. This will motivate us to serve millions more of Indonesian people, "concluded Ongki.