• April 12, 2016
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BNI net profit reached Rp 2.97 trillion in first quarter of 2016

Jakarta -- In the first quarter of 2016, PT Bank Negara Indonesia (Persero) Tbk (IDX: BBNI) recorded a profit of Rp 2.97 trillion, 5.5% higher compared to the profit achieved in the same period in 2015. The increase in net profit was supported, among others, by BNI intermediation performance, which remained consistent in financing distribution despite facing challenging global and national economic conditions. BNI also noted better growth of third party funds (DPK) that exceeded expectations.

BNI President Director Achmad Baiquni revealed the significant performance in the first quarter of 2016 was achieved at the time when main sectors within the Indonesian economy has begun to move forward, especially its infrastructure sector. BNI hoped that, until the end of the year, infrastructure projects might continue to encourage other sectors to ensure even distribution of loan portfolio.

At BNI Financial Performance First Quarter 2016 Press Conference Presentation in Jakarta, Tuesday (April 12, 2016), BNI revealed that its net profit consisted of Net Interest Income (NII), which rose 13.3% from Rp 6.09 trillion in the first quarter of 2015 to Rp 6.91 trillion in the first quarter of 2016. This shows an increase in the quality of BNI credit performance, and keeps the net interest margin (NIM) at 6.1%. Profit was also comprised of Non-Interest Income in the first quarter 2016, which rose

16.4% from Rp 1.90 trillion in the first quarter of 2015 to Rp 2.22 trillion in the first quarter of 2016, further supported by higher fee-based income from trade finance, management accounts, business cards, ATM transactions, and other non-interest income sources.

Credit Growth

The first quarter of 2016 placed visible pressure on some economic sectors that area mainstay within BNI segments. The trade sector, for example, suffered declining demands from several export destinations. Nonetheless, BNI credit growth indicated performance remained stable.

BNI loan disbursements also continued to experience double-digit growth—a 21.2% increase from Rp 269.51 trillion in the first quarter of 2015 to Rp 326.74 trillion in the first quarter of 2016. Some sectors from Business Sector Banking and Consumer Business Sector played major roles in sustaining the credit growth, where the largest loan portfolio allocation or 71.7% of total loans was availed for Business Banking Sector to support BNI employment creation.

Business Sector Banking loans increased 22.7% from Rp 190.95 trillion to Rp 234.22 trillion. One sector that precipitated the rise in Sector Business Banking Loans is construction, which grew 127.5% from Rp 2.63 trillion to Rp 5.99 trillion in the first quarter of 2016. BNI loan growth also occurs in manufacturing, agriculture, transport, storage and communication, construction, electricity, gas and water, as well as mining.

Meanwhile, BNI posted 9.8%growth in the Consumer Business sector, from Rp 52.53 trillion to Rp 57.65 trillion. BNI pays serious attention to the penetration of payroll based loans.

Third Party Funds

BNI also noted significant performance in third party funds (TPF) collection. BNI noted 21.8%growth in TPF from Rp 305.15 trillion to Rp 371.56 trillion in the first quarter of 2016. Total TPF composition is still dominated by low-cost funds (current and savings accounts / CASA) with 58.5 % or approximately Rp 217.25 trillion, an increase of 12.9% compared to the same period in 2015.

TPF growth is inseparable from BNI’s efforts to continuously improve quality of service. To achieve this, BNI is supported by 1,862 outlets across Indonesia, not including representative offices abroad. Additionally, BNI operates more than 16,000 ATMs that facilitate electronic banking (e-banking), including in Hong Kong and Singapore, in addition to SMS Banking and Internet Banking.

Increased Assets and Capital

TPF growth and loan growth resulted in growth of high quality asset of 25.0%, from Rp 407.22 trillion to Rp 509.09 trillion in the first quarter of 2016. Efforts to maintain the quality of these assets continued, especially to maintain stable lending interest and rhythm. Credit expansion is evidence that BNI intermediation is effective, as demonstrated by the slight increase from 87.8% to 88.0% of the Loan-to-Deposit ratio (LDR).

Credit growth is supported by strong foundations, where capital adequacy ratio (CAR) is well maintained and showed improvement from 17.8% to 19.9%. Similarly, effective maintenance of allowance provision has increased the level of coverage ratio from 130.5% to 142.4%.

Re-disseminated by The Asian Banker