Monday, July 21, 2014

BTPN Bank's Credit Growth Achieving 15% and CAR reaches 23.4%

Indonesian macroeconomic dynamics throughout the first half of 2014 still face many challenges. Slowing economic growth, trade deficit continues, liquidity remains tight, although the inflation rate began to slow. This situation is expected to continue until the end of 2014.

"The year 2014 will be a challenging period for BTPN Banking industry. Intermediation function of banks in conditions of slow economic growth is not an easy challenge. In respond, BTPN Bank focused doing things fundamentally conservative and prudent manner, the basic principle of which is usually used as a handle by a bank in a situation like this, "said Director of BTPN Bank, Jerry Ng, in a press conference in Jakarta, Sunday, July 20, 2014 .

According to him, the steps taken by BTPN Bank, among others, is to increase the liquidity reserve, maintain good credit quality, managing interest costs and operating costs carefully.

With this strategy, he added, BTPN Bank's performance can be maintained healthy. This is reflected in BTPN Bank's lending in the first half of 2014 grew a moderate and healthy, with the level of NPL (non-performing loans / NPL) maintained low. As of June 30, 2014, BTPN Bank recorded an annual credit growth of 15% (year-on-year / yoy) of Rp 43,6 trillion on June 30, 2013 to Rp 50 trillion with a gross NPL ratio of 0.9%. When compared to the first quarter of 2014, lending in the second quarter of 2014 grew 6.3% from Rp47 trillion.

Along with the steps the company to be more cautious in lending, BTPN Bank's share of funding with regard to balance adequate liquidity. As of June 30, 2014, Third Party Funds (TPF) BTPN Bank stood at Rp 52.7 trillion, up 10% from the same period last year of Rp 47.7 trillion.

Deposit growth by 10% (yoy) was also higher than the growth in deposits the first quarter 2014 increased by 6% (yoy). "Loan to deposit ratio (LDR) maintained at the level of 95%. When taking into account funding from the bond, our liquidity ratio reaches 85%, it is strong and healthy level, "said Jerry.

Moderate growth in credit and deposits side, pushing BTPN Bank's assets increase by 12% (yoy) of Rp63,9 trillion to Rp71,4 trillion on June 30, 2014, with a capital adequacy ratio (capital adequacy ratio / CAR) of 23.4 %. Meanwhile, net profit after tax (NPAT) in the second quarter increased 1.9% from Rp.493 billion in the first quarter of 2014 to Rp 502 billion. When compared with the first half of 2013, BTPN Bank's net profit in the first half of 2014 10% lower, or from Rp1.1 trillion in the first half of 2013 to Rp 996 billion in the first half of 2014.

"Looking ahead, we expect macroeconomic conditions are still challenging. However, our commitment to focus work on low-income market  doesn’t  abate, "said Jerry.

BTPN Bank has been focusing its efforts to serve and empower low-income segments of society as well as the micro, small, and medium, including pre-prosperous productive society (mass market). The company's strategy is to combine a social mission and business mission to continue to provide training and ongoing assistance to customers under Power Program, is believed to sustain the performance of the company.

"BTPN Bank believes the mass market customers need access not only financially but also training and mentoring to increase the capacity of their businesses," said Jerry. Throughout the first six months of 2014, BTPN Bank has organized 76 659 Power activity, grew by 55% (yoy). While the number of participants reached 977 261 Power customers, an increase of 114% (yoy).

BTPN Bank's strategy to focus on working on the market of low-income communities has received full support from the Sumitomo Mitsui Banking Corporation (SMBC). SMBC is one of the controlling shareholder of BTPN Bank. On March 14, 2014 and, SMBC has completed the purchase of shares of BTPN Bank. Now BTPN Bank has two controlling shareholders are credible and reliable, the SMBC (40%) and TPG Nusantara Sarl (25.88%).

Jerry added, in the second quarter of 2014, BTPN Bank also has completed the acquisition and conversion Bank Sahabat Purba Danarta become Islamic banks, followed by separation (spin off) Islamic Business Unit. The presence of BTPN Bank's Shariah is expected to optimize the participation of BTPN Bank in improving the living standards of low-income people and families pre-prosperous productive. "We are grateful for the issuance of permits conversion and spin off BTPN Bank's Sharia. We believe the business model of BTPN Bank's Shariah able to change the lives of millions of people of Indonesia, "added Jerry.

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