Jakarta, 26 April 2021 – Investments in technology carried out by PT Bank Negara Indonesia (Persero) Tbk or BBNI (the Company) have had sweet fruit. The digitization of BNI banking has succeeded in driving performance.
BNI’s IT and Operations, Mr. YB Hariantono said, the Covid-19 pandemic has accelerated changes in people's behavior to divert transactions from conventional branches and channels such as ATMs to digital services. The Company responds to this by accelerating the transformation of digital services that focus on three champion services, namely First, Increasing Mobile Banking Capability on an ongoing basis (in the consumer segment).
Second, continuing to improve the strong Transactional Banking Platform, namely through BNI Direct products and integrated cash management solutions (corporate segment). And third, expanding BNI digital services through collaboration with fintech, e-commerce, and other business ecosystems through BNI's Application Programming Interface / API Digital Service.
First, BNI Mobile Banking, which is prepared as a dominant banking service facility for use by retail customers, where until the first quarter of 2021, the number of users reached 8.56 million or grew 58.4% compared to the first quarter of 2020, which amounted to 5.41 million customers. In terms of transaction value, it was recorded at Rp. 138 trillion in March 2021, or grew 33.2% compared to March 2020, which amounted to Rp. 103 trillion. The number of transactions made through BNI Mobile Banking was 95 million in Q1 2021, an increase of 50.4% compared to Q1 2020, which reached 63 million transactions.
The high interest of BNI Mobile Banking users is due to the new features launched to complement the services therein, such as Biometric Login, digital account opening with facial recognition features, borrowing funds, managing credit card bills, developing e-wallets to developing QR payment. This feature innovation has received appreciation from its users as reflected in the increased rating of BNI Mobile Banking application on the Android Play Store from 3.6 in August 2020 to 4.9 in March 2021.
Second, the digital transactional banking platform or BNI Direct, which offers integrated solutions for Payment Management, Collection Management, Liquidity Management, Value Chain Management, and Open Banking Solution services. Until March 2021, the number of BNI cash management customers reached more than 72 thousand, an increase of 24% compared to the previous year, with transaction volume in the first 3 months of 2021 reaching IDR 968 trillion, an increase of 22.7% compared to the same period in 2020. This reinforces BNI's initiative to continue to improve digital services not only for retail customers, but also for corporate and MSME customers, which account for 83.6% of total loans. Continuous investment in the transactional banking platform will continue to be a priority, considering that almost half of BNI's low-cost funds come from active customers using BNI Direct.
Third, API Digital Service BNI, which was developed in 2018, has now shown encouraging results. Currently, BNI has provided 238 API services, the most among banks in Indonesia, with more than 3,000 users. API Digital Service BNI in the last November 2020 has even received international recognition as the winner of the Best Overall Developer Portal - Community Prize Nominees, eliminating 32 API Portals from global corporations from various countries.
BNI continues a positive performance trend amidst the process of national economic recovery. In the first quarter of 2021, the company recorded that its Third Party Funds (DPK) grew 8.1% year on year (YoY) to reach Rp 639.0 trillion, mainly contributed by an increase in current accounts and savings, which grew 13.1% and 12, respectively. 9% YoY. This reinforces BNI's position as one of the strong DPK franchises in the industry.
In the midst of a downward trend in loan interest rates to boost the national economy, the Company seeks to ensure healthy growth in deposits in order to maintain a Net Interest Margin. In the first quarter of 2021, the Company posted an improved NIM from 4.5% at the end of 2020 to 4.9%. This achievement was also followed by a loan growth of 2.2% YoY, much better than the industry average where up to the first quarter of 2021, the total loan disbursed reached Rp 559.33 trillion.
Meanwhile, amidst the economic conditions that are still hanging in the first three months of 2021, the Company can realize non-interest income or fee-based income of Rp 3.19 trillion. This achievement, among others, was contributed by the recurring fee which reached Rp 2.91 trillion or grew 9.4% from the same position the previous year. Recurring fee income comes from commissions on banking transaction services such as cash management and trade finance services for the business segment, as well as ATM services, mobile banking, and other electronic or e-channel services in the retail segment.
BNI’s Finance Director, Novita Widya Anggraini said, one of the main focuses of the company's management policies at this time is the existence of sustainable business growth. Therefore, various steps have been prepared in order to achieve this sustainable performance, namely setting performance targets based on profitability, and not only emphasizing asset growth alo.
One of the benchmarks is the Pre-Provisioning Operating Profit (PPOP), or the company's profit before provisioning. In the 1st Quarter of 2021, PPOP was recorded at Rp 7.84 trillion or an increase of 5.9% compared to the 1st Quarter of 2020, which was Rp 7.4 trillion. This indicates that the company's ability to generate profits before provisioning continues to increase and is even above the conditions before the pandemic spreads in Indonesia in Q1 2021.
The PPOP provision adds room for the Company to continue to take strategic steps and policies to ensure that the company's financial performance remains healthy and sustainable, including by conservatively forming a reserve (CKPN) that is appropriate to face the risk of deteriorating asset quality and facing future economic challenges. That is why, in the 1st Quarter of 2021, the Company continued to form a high CKPN of Rp 4.81 trillion or an increase of 127.7% over the 1Q2020 CKPN of Rp 2.11 trillion.
With the established CKPN value, the Company reported a net profit for the first quarter of 2021 of Rp 2.39 trillion, with the reserve adequacy ratio set at the level of 200.5%, higher than the position at the end of 2020 which was 182.4%. With increasingly strong fundamentals and ongoing corporate transformation programs, including digital service transformation, we are confident that BNI's performance until the end of 2021 can be better than 2020.
For more information, please contact:
BNI Corporate Secretary