Credit growth of 17% in 2015 will be achieved

BI's plan to issue a regulation extending the coverage of Deposit definition, by inserting securities issued by banks in calculation of LDR, will drive credit growth to 17%. Bank Indonesia (BI) is targeting the growth of bank credit in 2015 in the range of 15% -17%. However, based on a survey of BI in the first quarter-2015, survey respondents revise upwards the target of credit growth in 2015 amounted to 17.1%.

Add More ATM and EDC, Bank Mayora Prepare IDR 5,28 Billion

Currently Bank Mayora has had 40 ATMs in major cities. Not too aggressive, PT Bank Mayora only spend around IDR5,28 billion to increase the number of network Automated Teller Machine (ATM) and Electronic Data Capture (EDC) in this year.

President Director Ban k Mayora, Irfanto Oeij said, it is because today it is already connected with ATM Bersama.

"However, the addition of ATMs will still be made to the region in the company Mayora, making it easier for employees to transact," said Irfanto in Jakarta, Tuesday, April 28, 2015.

The Company's own words Irfanto plans to increase its ATM this year up to 50 ATM. The amount is spread over an area 1 ATM in Bandung,  1 ATM in Surabaya and other in Jakarta.

Currently Bank Mayora has had 40 ATMs in major cities. Thus, this year the company only add 10 ATMs and spend IDR 1.03 billion.

"The ATM was 8,000 US dollars, stay multiplied by IDR12.900 per US dollar exchange rate," said Irfanto.

In addition to adding an ATM, the company will add to the merchant EDC Bank Mayora by targeting this year to 2,500 EDC. Noted, EDC Bank Mayora current 1,400 units.

"Investment EDC that one, 300 dollars (thus the company disbursed IDR4,25 billion). Our EDC this year will rise two-fold, "said Irfanto.

Launching Mobile Phone Accounts, Mandiri Partnering with Three Telecom Operators

With the cooperation of the launching mobile phone account, is expected to provide financial access to the entire people of Indonesia. PT Bank Mandiri (Persero) Tbk cooperation with telecom operators three companies, namely PT Telecommunication Cellular, PT Indosat Tbk, and PT XL Tbk to strengthen inclusive finance. Where these synergies to support in improving access to finance and non-cash transactions.

Interest Expense Erodes Mandiri Bank Profitability Level

Interest expenses are too high which is not in line with the company's interest income, causing the Bank's net interest margin decreased. PT Bank Mandiri (Persero) Tbk recorded a decline in net interest margin (NIM) in the first quarter of 2015. According to the report, the NIM Mandiri until March 2015 fell to 5.62% or lower when compared to the same period last year ie 5.92% .

According to Director of Bank Mandiri, Budi Gunadi Sadikin, a decrease in net interest margin is due to higher interest expense of the company, up to 35.3% in the first quarter of 2015. That is, it is not accompanied by interest income rose only 19.6%, so that this condition causes the net interest margin decreased to 5.62%.

"So if we see it, our interest income is actually a good rise, 19.6%. But in 2014, the bank's liquidity was difficult, so we raise flowers. Well it consequently impact on interest costs. So why NIM down, as interest income rose 19.6%, but interest expenses rose 35.3%, "Budi said in Jakarta on Friday, April 24th, 2015.

This makes the achievement of a net profit of state-owned bank, is no maximum on the first quarter of 2015, amounting to IDR5.1 trillion or grew only 4.3% compared to 4.9 trillion profit in quarter one year ago.

Furthermore, he considered, liquidity conditions in 2014 is very difficult, but to date, the Bank's liquidity has been improved, so that in the future, the company is optimistic that these conditions would increase interest income and lower interest expense. By doing so, NIM will undergo repairs.

"Until now, liquidity is improving, that's why in April we are lowering our funds rate, (deposits) gradually aggressive enough, now we expect in the second quarter of 2015, quarter-on-quarter interest expense could've been much better. It all has to do, "added Budi.

First Quarter of 2015, BNI Distributes Credit IDR147 Trilion

Although lending to cooperatives in the first quarter of 2015 slowed, BNI sure in the next quarter will be improved. PT Bank Negara Indonesia (Persero) Tbk (BNI) records in the Business Banking loan portfolio reaching IDR147 trillion in the first quarter 2015, or 43% of the total loan portfolio of banks BNI per March 2015.

"IDR147 trillion is its banking business, of the total of all. The loan was total 200 trillions more. Well its business banking about 43% of it, "said Director of Business Banking I BNI, Herry Sidhartha, in Jakarta, Monday, April 20th, 2015

According to Herrera, Business Banking loan portfolio in the first quarter of 2015 are recorded IDR147 trillion, more to the large corporate enterprise. "Well, that's banking business is divided into two, IDR147 trillion corporate alone, or we say that corporation," he said.

However, credit growth Business Banking in the first quarter of 2015, said Herrera, tend to slowdown when compared with 2014 last year in the same period. But he did not mention how the growth of Business Banking in the first quarter of last year.

"Maybe a little down, slowdown slightly compared to last year, there are plenty of payment. There payment of bills that have come in, "he said.

However Herry hope, in the next quarter, lending in the banking business has improved, along with the reduced incoming bills. "I hope the hell quarter II, III, IV 2015 until it improves," he concluded.

BCA Donates 2 Tourist Buses

Two buses are an endorsement of BCA, the environmental conservation efforts of Bandung. PT Bank Central Asia (BCA) to support an environmental conservation efforts. Continuing support, BCA provides two pieces of tourist buses, known as bandros (Bandung Tour on The Bus) worth 2 billion to the government of the city of Bandung. This step once a BCA support to enhance the tourism potential of the Flower City.

Commonwealth Bank Indonesia Profit Up slightly

Although outstanding loans grew 15.98%, net profit grew Commonwealth Bank Indonesia only 0.9% on last year. PT Bank Commonwealth Indonesia (Indonesian Commonwealth) during 2014 recorded a net profit after tax IDR207,85 billion, or grew only 0.9% over the same period the previous year.

As is known, in 2013 and a subsidiary of Commonwealth Bank of Australia (CBA) the Group recorded a net profit of IDR206 billion.

"In the midst of a transition period the new government, 2014 was a challenging year for almost all companies engaged in financial services in Indonesia. We are grateful that the Commonwealth Bank Indonesia continues able to maintain a positive performance from year to year, "said President Director of Commonwealth Bank Indonesia Tony Costa in a press release in Jakarta, Friday, April 17, 2015.

Profit was driven by an increase in total revenue of 3.55% or Rp50,92 billion. Net Interest Income Commonwealth Indonesia in 2014, reaching 9.52% to IDR1.03 trillion, driven by the strengthening of credit growth.

By the end of 2014, the Company's total outstanding loans reached IDR15,57 trillion, up 15.98% compared to IDR 13.5 trillion in the same period the previous year, with the NPL ratio - at the level of 0.80% gross.

According to Tony, as the Commonwealth Bank Indonesia's commitment in supporting the national economy, the Bank continues to spur productive sector development. The result, at the end of 2014, SME lending grew 20.8% to reach 2.8 trillion and commercial and consumer loans grew 25.5% to IDR 12.8 trillion. With credit growth in the assets of the Commonwealth Bank Indonesia to IDR 22.2 trillion.

"Our achievement in 2014 is a result of the implementation of the four pillars of our strategy which combines good risk management, liquidity management of healthy, strong teamwork within the organization into a synergy and improved quality of care," added Tony.

New Credit Demand are Slowing

Slowing credit sourced from consumer lending and working capital loans. Bank Indonesia (BI) said demand for new loans first quarter of 2015 slowed compared to the previous quarter. Based on a survey of BI banking, impaired Weighted Net Balance (WNB) in the first quarter of 2015 to 13.7% from the previous quarter to 84%.

Director of the Department of Communications Bank, Peter Jacobs said the funding request is still quite low at the beginning of the year as well as new lending policies are more selective to suppress an increased risk of non-performing loans (non-performing loans / NPL) to cause the slowing demand for new loans.

Based on the type of use, slowing credit growth due to lower growth in consumer loans and working capital loans. Consumer credit slowed because multipurpose loans and vehicle loans decreased. The decline in vehicle loans affected by a decline in sales of cars and motorcycles in the first quarter of 2015.

In January and February car sales fell 0.3% from the previous quarter. meanwhile, motorcycle sales fell 11.1% compared to the previous quarter quarter.

"Based on the economic sector, the decline in demand for new loans occurred in 6 sectors of the economy," said Peter.

The largest decrease occurred in the mining and quarrying sector followed by social services sector, social, cultural, entertainment and other individuals. The decline in global demand, the decline in prices of mining products in the international markets as well as government policy regarding the export ban on raw minerals into the main factor that causes the respondent restrict new lending in the mining and quarrying sector.

Banking survey conducted by the Bank of Indonesia involving the sample of 42 commercial banks headquartered in Jakarta, with a share of around 80% credit of the value of total loans of commercial banks nationwide.

Contactless Payment Users are Grow 49%

Indonesia is one of the developing countries are participating in the cash payment system changes into a service-based mobile Point of Sales (MPOS). MasterCard revealed that consumers in Asia Pacific has become accustomed to the use of contactless payments. This is indicated by an increase in the number of users of contactless payments in 2014 was 49%, compared to the year 2013.

BCA Distributes Dividens IDR148 per Share

Dividends distributed by BCA in 2014 reached IDR 148 per share. This amount includes the final interim dividend. PT Bank Central Asia Tbk (BCA) dividends IDR148 per share of net profit fiscal year 2014. Over the past year, BCA menyetak profit IDR16.5 trillion, an increase of 15.7% compared to IDR14.3 triliun in 2013.

From IDR148 per share dividend, including the interim dividend of IDR50 that has been paid by the Company on December 23, 2014. "Rp50 final interim dividend already divided. Plus IDR98, so it be IDR148, so 20% more (from net income). The existing stock of about 24 billion, "said President Director of BCA, BCA John Setiaatmadja after the AGM in Jakarta Thursday, April 9th, 2015.

Through fertilization back the remaining net income as retained earnings, capital of the Bank is currently a IDR77 trillion. While the capital adequacy ratio (Capital Adequacy Ratio / CAR) rose from 17% to 19%.

AGM also approved the Annual Report of the Company, certify financial statements, as well as providing liability release and discharge (acquit et decharge) to members of the Board of Directors and Board of Commissioners for the actions of management and supervision are implemented throughout the fiscal year ending on December 31, 2014.

BOC has been given power and authority by the AGM to appoint Registered Public Accountant who will examine the books of the Company for the financial year ended 31 December 2015. In the process, the Board of Commissioners shall consider the recommendation of the Audit Committee and the legislation in force.

Bank Mandiri Gives Credit IDR1,76 Trillion to Fishermen

The finance portfolio with this partnership is apt to improve fishing access to bank financing. PT Bank of Mandiri (Persero) Tbk, increase funding for the fishermen through credit scheme, Energy and Food Security Credit (EFSC). Where throughout 2014, the Bank has provided loans to fishermen for IDR 1,76 trillion, growing 15% from the previous year.

BNI Targets Maritime Sector Credit Will Grew 50%

In line with an appeal to the regulator, which asked banks to lend more to the maritime sector, BNI targets 50% growth in this sector. PT Bank Negara Indonesia (Persero) Tbk (BNI) targets in the maritime sector credit grew 50% this year. Currently the bank's loan portfolio in the sector around Rp12 trillion new or 5% -6% of total loans.

"Just still more in the shipyard, ship and processing facilities in the fish industry," said Director of BNI Sutanto in Jakarta, Monday, April 6, 2015.

With encouragement from the Financial Services Authority (FSA) to improve maritime credit, the company will begin to boost credit to the retail segment. Currently, the portfolio of loans in the retail segment new maritime Rp1.2 trillion. However, the Company wants to maintain credit quality. Total loans in the maritime sector is currently 0.9% according to him, but for the retail segment is still above 4%.

"Following this government project, yes 50% rise, but we try so NPL Not to much. But the target remains 50%, "he added.

To increase the credit in the maritime sector, the company will develop partnership programs with fishing groups and cooperatives. The Company also combing the northern coastal areas of South Sulawesi, some areas in the Moluccas, Borneo, as well as the east coast of Sumatra.

FSA is to encourage banks to extend credit is greater in the maritime sector, including marine and fisheries. Late last year, outstanding credit to the sector in the industry only Rp85 trillion, or about 2.83% of the total bank credit. The cause of knowledge and understanding of the banking sector is still minimal.

Therefore, the FSA has made a database mapping for six maritime sub-sector. However, for the initial stage, the new FSA will encourage banks BOOK BOOK 3 and 4 to be involved in the maritime sector financing.

Infrastructure Bank can accommodate Syndicated Loans Banking

The existence of the bank, focus on the infrastructure sector is expected to become the motor syndicated loans by cooperating with other banks. Finance Minister Bambang P.S. Brodjonegoro hoped the presence of an infrastructure bank would encourage the involvement of banks in financing infrastructure.

"Not all banks are willing to finance infrastruktrur, because of its risk appetite are not logged in. My shadow is to build an infrastructure bank syndicate of banks, "he said in a Forum with the theme" Infrastructure Bank, Important or Not? "In Jakarta, Thursday, April 2, 2015.

During this time it has been involved in banking lending infrastructure, but the portion of new financing 16.8% of total loans or just IDR 244,8 trillion. The presence of an infrastructure bank is expected to give comfort to the banks, so that would be involved in infrastructure financing syndicate.

"If you go sendir, i risk is great, the bank may also forward-backward for fear. So we hope that the bank is attractive to private and local, "he added.

Director of Bank Mandiri Budi Gunadi Sadikin admit, banks can not give too much on infrastructure financing due to constrained liquidity and capital problems.

"The Bank of high-regulated businesses all set. We can only credit institutions love 20% of the capital. BMRI IDR 100 trillion of capital, if any foreign loans, to borrow a loan can only IDR 20 trillion, can not get more. If you want the other syndicated "he said on the same occasion.