Release Date: October 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
PT Bank Negara Indonesia (Persero) Tbk (PTBRY) reported a loan growth of 9.5% year on year, indicating a positive trend in lending activities.
The company’s net interest margin (NIM) improved to 4.4% in the third quarter, surpassing initial expectations.
CASA (current account savings account) grew by 5.5% year on year, with significant growth in savings accounts at 7.4%, reflecting strong deposit growth.
The bank’s digital initiatives, including the launch of the new mobile banking application ‘W by BNI’, have shown promising results in customer acquisition and transaction frequency.
PT Bank Negara Indonesia (Persero) Tbk (PTBRY) has made significant strides in green financing, with IDR71 trillion in green loans, demonstrating its commitment to sustainability.
The SME segment experienced a contraction, particularly in the KUR portfolio, which decreased by 22% year on year.
Operating expenses grew by 7.4% year on year, driven by investments in digital platforms and cybersecurity, which could impact profitability.
The bank’s time deposits contracted by 2.6% year on year, indicating a shift away from more expensive funding sources.
Despite improvements, the loan at risk ratio remains relatively high at 11.8%, suggesting ongoing asset quality challenges.
The write-off of IDR14.2 trillion in loans, a 41% increase year on year, highlights the bank’s efforts to clean up its loan book but also indicates potential credit risk issues.
Q: How does the new administration’s economic policy impact BNI’s business strategy? A: Royke Tumilaar, President Director, explained that the new administration under President Prabowo focuses on economic priorities such as food self-sufficiency, infrastructure, energy security, and MSME empowerment. These priorities align with BNI’s business strategy, offering new business opportunities and improving consumer purchasing power, which is expected to boost loan demand.
Q: What are the key initiatives in BNI’s funding structure transformation? A: Hussein Paolo Kartadjoemena, Digital and Integrated Transaction Banking Director, highlighted two initiatives: branch transformation, shifting branches from transaction-focused to sales-oriented, and the launch of a new mobile banking application, W by BNI, which has shown positive progress in customer acquisition and transaction frequency.