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Quarter III - 2019, BNI Succeeds in Growing Credit at 14.7%

Jakarta, 23 October 2019 --- PT Bank Negara Indonesia (Persero) Tbk (IDX: BBNI) managed to record credit growth of 14.7% in the Third Quarter - 2019 to Rp 558.7 trillion, while marking a stable acceleration in the intermediation function amid challenging economic conditions. The lending is supported by the growth of third-party funds by 5.9% which led BNI to record improvements in net interest income (NII). This lending that is still maintained shows that BNI plays a major role and function as a bank that also carries out its function as an agent of development, as well as an optimization strategy for managing portfolio of assets and liabilities.

BNI's credit growth was driven by financing in the corporate segment which grew 18.1% from the same period in 2018 to Rp 291.7 trillion, which was distributed to the Private Corporate Segment of Rp 181.1 trillion, which grew 24.8% compared to the Third Quarter - 2018, and to SOEs valued at Rp 110.7 trillion, which grew 8.6% compared to Quarter III - 2018. In addition to the Corporate segment, the Small Business segment also contributed 19.2% growth compared to Quarter III - 2018, to Rp 75 trillion.

Loans in the corporate segment are mainly channeled to the manufacturing sector, restaurant and hotel trade, business services, construction and electricity. In order to maintain the quality of credit, BNI implements various policies including lending to high quality corporates, and financing to corporates cash flow generators. This shows BNI's commitment to continue to selectively finance the industrial sectors that have measured risks to maintain asset quality. Credit growth in the Medium segment which was maintained at a moderate level of 3.8% compared to the third quarter of last year, also showed a commitment to improve the quality of the assets in question.

As for the Consumer Segment, BNI recorded Payroll Credit as the main contributor to the growth of the consumer business, with a growth of 13.1% YoY. The expansion of payroll loans is done by BNI by focusing on providing credit to employees of government and state institutions where by September 2019, payroll loans to BUMN and government employees contributed about 64.4% of the total payroll credit.

In addition to payroll loans, BNI also continues to focus on growing Home Ownership Loans (KPR) through various strategic improvements, including improving the mortgage credit process, changing tenor policies to be longer for potential customers, focusing on expanding customers who have not used BNI KPR products, focusing on customers fixed income, and target expansion to millennial generation. In September 2019, BNI recorded a 9.5% growth in mortgages YoY or reached Rp 43.1 trillion.

DPK Support

BNI's solid lending is supported by the growth of Third Party Funds (DPK) of 5.9% YoY, to Rp 581 trillion in Quarter III - 2019. BNI also maintains a low-cost ratio as indicated by the composition of CASA which reached 64.3% of total deposits, mainly due to Giro growth of 13% and savings of 7.5% YoY.

In an effort to raise low-cost funds, BNI continues to develop digital banking services, increase synergies with various State-Owned Enterprises (SOEs), and develop services for government institutions.

The success in raising low-cost funds was also reflected in the addition of individual accounts to 46.5 million. In addition, BNI also continues to increase the number of branchless banking from 111,836 at the end of 2018 to 130,803 Agen46 in Quarter III - 2019. The expansion of Agen46 brings the banking services that are normally provided at BNI outlets, to customers, thus contributing commission-based income.

Profitability

Loans support the growth of Net Interest Income (NII) to Rp 26.9 trillion in Quarter III - 2019. Likewise, the Non-Interest Income or fee-based income (FBI), which in Quarter III - 2019 grew by 13% YoY, to Rp 8.1 trillion. With the support of NII and FBI growth, BNI was able to record a net profit of Rp 12 trillion, growing 4.7% compared to the same period in 2018.

BNI Fee income is supported by the growth of recurring fees by 17.1% YoY to Rp 7.9 trillion. The increase in the FBI in the third quarter of 2019 was driven by fees from the business banking segment, including fees from trade finance which grew 9.4% and syndicated fees which grew 81.6%. Meanwhile, the source of fees from the consumer business, among others, came from debit card management fees which grew 57.5% and transaction fees through ATMs which grew 16.5%.

In terms of asset quality, BNI's NPL was recorded to improve to 1.8% in Quarter III - 2019 from the same period in the previous year of 2%. Credit cost also showed an improvement, which fell from 1.4% in Quarter III - 2018 to 1.3% in Quarter III - 2019, while the coverage ratio continued to increase from 152% in Quarter III - 2018 to 159% in Quarter III - 2019.

For more information, please contact:

Corporate Secretary BNI

Phone: 021-5728387,

Email: bni@bni.co.id

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