Jakarta, January 23, 2019 (yoy), from Rp 441.31 trillion (US$30.66 billion) at the end of 2017 to Rp 512.78 trillion at the end of 2018. The credit growth could support the increase of BNI’s net profit at 10.3 percent yoy, from Rp 13.62 trillion at the end of 2017 to Rp 15.02 trillion at the end of 2018.year-on-year--- The credit of PT Bank Negara Indonesia (Persero) Tbk (BBNI) throughout 2018 showed a 16.2 percent increase.
BNI credit disbursement was supported by credit in the private segment, recorded at 29.6 percent from total disbursed credit. The credit in the private corporation segment reached Rp 151.71 trillion in 2018, or a 12.9 percent yoy growth. BNI’s credit was also disbursed to state-owned enterprises (BUMN) at 21.6 percent of total credit. The value of credit to BUMNs reached Rp 110.99 trillion in 2018, or a 31.6 percent yoy growth.
For credit disbursed in the medium-business segment, BNI maintained a moderate growth of 6.4 percent yoy, or Rp 74.73 trillion, at the end of 2018. Meanwhile, for credit for the small-business segment, BNI managed to record a growth of 17 percent yoy, or Rp 66.06 trillion at the end of 2018.
Payroll credit became the main contributor of credit disbursement in the consumer segment with a growth of 34.2 percent yoy, or Rp 23.74 trillion at the end of 2018. BNI’s home ownership credit and credit card also showed satisfying growth of 9.9 percent yoy and 7.9 percent yoy, respectively, or Rp 40.75 trillion and Rp 12.56 trillion at the end of 2018.
Credit disbursement was mostly carried out through the Work Capital Credit (KMK) scheme, which reached 52.5 percent of total disbursed credit or Rp 269.26 trillion at the end of 2018. The KMK value grew 19 percent yoy compared to the last position of Rp 226.19 trillion at the end of 2017. Credit disbursement was carried out in the form of investment credit (KI) at 29.1 percent of total credit or Rp 149.27 trillion at the end of 2018. The KI value grew 14.6 percent yoy from the Rp 130.29 trillion recorded in 2017.
Throughout 2018, BNI’s credit was disbursed selectively and focused on the financing of top-seed sectors with controlled or relatively low risk, such as the manufacturing sector, which had 19.1 percent of total disbursed credit. The credit value to manufacturing sector reached Rp 98.03 trillion, or a growth of 32.0 percent yoy compared to Rp 82.74 trillion in 2017.
Other BNI credit was disbursed in the trade, restaurant and hotel sector (17.5 percent of total credit); business services (10.3 percent); construction (6.7 percent); transportation, warehousing and communications (6.1 percent); mining (3.6 percent); and social services (3.1 percent).
Credit in infrastructure development projects was one of BNI priorities to boost loans to the corporate segment. Credit disbursement in infrastructure projects was especially focused on construction and toll-road projects. Credit development for infrastructure projects reached 11.1 percent yoy, from Rp 99.51 trillion in 2017 to Rp 110.60 trillion in 2018.
BNI also focused on supply chain financing to expand the medium-business segment, by disbursing credit among medium-sized debtors that had business relations with BNI’s corporate clients. Medium-segment credit was mostly disbursed to businesses in the trade, restaurant, hotel, industry, transportation, warehousing and communications sector.
For small-business loans, BNI recorded the highest growth in people’s business credit (KUR) at 42.9 percent yoy to Rp 20.3 trillion. The highest small business segment growth was recorded in agriculture, which increased 54.7 percent yoy. BNI’s credit expansion in the small business segment was done by increasing the number of outlets authorized to disburse small credit from 197 outlets in 2017 to 266 outlets in 2018.
The growth of BNI’s credit increase net interest income (NII) by 11 percent yoy from Rp 31.94 trillion at the end of 2017 to Rp 35.45 trillion at the end of 2018. NII became the main growth source of BNI’s net profit, which was also supported by the growth of non-interest rate income at 5.2 percent yoy, from Rp 11.04 trillion at the end of 2017 to Rp 11.61 trillion at the end of 2018. This growth was supported by the increase of fee contributions from trade, finance, account management and card business fees.
BNI’s net profit was also supported by the improvement of asset quality, as shown by a boost in NPL gross, which increased from 2.3 percent at the end of 2017 to 1.9 percent at the end of 2018. As a result, BNI reduced its credit costs from 1.6 percent at the end of 2017 to 1.4 percent at the end of 2018. On the other hand, coverage ratio increased from 148 percent at the end of December 2017 to 152.9 percent at the end of December 2018 to anticipate a challenging global condition in 2019.
BNI also successfully increased the efficiency of its operation in 2018 as seen in its cost-to-income ratio (CIR), which improved to 42.5 percent in December 2018, compared to the 43.9 percent recorded in December 2017. This was also because of BNI’s success in maintaining operational cost (OPEX) at the level of 6.8 percent.
The combination of NII, non-interest rate income, asset quality and OPEX efficiency growth increased BNI’s net profit to 10.3 percent at the end of 2018. With the profitability, BNI recorded a return-on-equity (ROE) growth from 15.6 percent to 16.1 percent yoy.
Supported by Liquidity
The performance of BNI’s credit disbursement was supported by its ability to optimally manage liquidity. Despite very tight liquidity market conditions, BNI was able to maintain the growth of third-party funds (DPK) at 12.1 percent yoy, from Rp 516.10 trillion in December 2017 to Rp 578.78 trillion in December 2018.
The collection of BNI’s third-party funds was followed by a decrease in cost of funds from 3 percent in December 2017 to 2.8 percent in December 2018. This came from an increase in the ratio of cheap funds from current account savings accounts (CASA), from 63.1 percent in December 2017 to 64.8 percent in December 2018. The improvement of this cheap-fund ratio was due to the growth of giro accounts at 18.2 percent yoy and savings at 13 percent yoy, which was higher than BNI’s deposit increase, which was recorded at 6.7 percent yoy.
The success of the collection of third-party funds was due to strategic steps made by BNI throughout 2018, by improving ties with state-owned enterprises (SOE) and the government, providing competitive products and services and developing digital banking services. The success in these efforts could be seen with the addition of 11.2 million accounts, from 32.8 million accounts in December 2017 to 44 million in December 2018. There was also an increase in branchless banking, from 70,000 Agen46 to 112,000 Agen46, accompanied with partnership agent promotional activities.
Agen46 is an extension of BNI in providing banking services to people with limited access to BNI outlets. Agen46 is the success symbol of Program Laku Pandai (Smart Sale Program), which was initiated by the Financial Services Authority (OJK) and has been implemented by BNI.
Assets surpassed Rp 800 trillion
At the end of 2018, BNI successfully recorded for the first time, total assets that surpassed Rp 800 trillion, to be precise Rp 808.57 trillion or a 14.0 percent growth yoy compared to end of 2017, when it was at Rp 709.33 trillion. The growth of BNI’s assets surpassed the 9.1 percent asset growth in the banking industry, as of November 2018.
The performance of BNI’s subsidiaries in 2018 also showed a positive trend and contributed to the company’s net profit. BNI group has five subsidiaries: BNI Syariah, BNI Life, BNI Multifinance, BNI Sekuritas and BNI Asset Management. These five companies contributed 9.24 percent to BNI’s total consolidated profit in 2018