News Column

Performance 2013 BNI: BNI Net Income Grows 28.5%

February 19, 2014



ENP Newswire - 19 February 2014

Release date- 18022014 - Indonesian economy slowed during the year 2013 did not inhibit PT Bank Negara Indonesia (Persero) Tbk, or BNI to achieve excellent performance.

BNI recorded net profit growth of 28.5% to Rp 9.05 trillion by the end of 2013.

'BNI is a brilliant performance that we have achieved amid a number of challenges that arise both from domestic and abroad, such as the increase in fuel prices that trigger high inflation, the exchange rate is under pressure due to the widening current account deficit, until the issue of the reduction of government economic stimulus United States, 'said President Director Gatot M Suwondo BNI in Jakarta, Wednesday (02/19/2014) when the BNI Performance In 2013 Exposure to mass media in a press conference which was also attended by the Directors of BNI.

The main factor contributing net income is operating income ( operating income ), which reached Rp 28.50 trillion, growing 19.2% compared to 2012. Operational rate of BNI is supported by the rapid net interest income ( net interest income ) which reached Rp 19.06 trillion or shot 23.3% higher than in 2012, and contributed by the realization that non-interest income reached Rp 9.44 trillion or grew 11.8%.

Major Financial Indicators (in U.S. $ Trillion)

Indicator

2012

2013

+ / - (%)

Net Interest Income

15.46

19.06

23.3

Non-interest income

8.45

9.44

11.8

Operating Income

23.91

28.50

19.2

Operating Costs

(12.74)

(14.57)

14.4

Profit Before Tax

11.17

13.93

24.7

Net Income

7.05

9.05

28.5

Earnings per Share (Rs)

378

486

28.6

The growth in net interest income contributed by the disbursement of the loan portfolio which grew 24.9% in 2012 compared to Rp 250.64 trillion, of which the largest credit allocation BNI in corporate loans reached Rp 112.23 trillion, or 55.4% than in 2012. The corporate credit includes credit borrowers medium 116 BNI grade corporate loans to the total value reaching USD 10.3 billion due to an increase in business ventures.

'BNI Credit continues to grow in two main areas. For sector Business Banking , loans grew 26.5%, and to bid ang Consumer & Retail Banking which grew 15.5%, 'said Billy.

The growth of the loan portfolio to make the Loan to Deposit Ratio (LDR) increased from 77.5% in 2012 to 85.3% in 2013. This credit enhancement shows BNI function as institutions intermediary is getting better .

Credit quality was improving, characterized by declining net NPLs and gross NPL. Net NPLs fell from 0.8% in 2012 to 0.5% in 2013, while Gross NPLs fell from 2.8% in 2012 to 2.2% in 2013. Accordance with the principles of prudence, BNI also improves the ratio of provisioning ( coverage ratio) of 123.0% in 2012 to 128.5% in 2013.

Financial Ratios (in Percent)

Financial Ratios

2012

2013

Loan to Deposit Ratio

77.5

85.3

Cost of Fund

2.7

2.4

Gross Non-Performing Loans

2.8

2.2

Net Interest Margin

5.9

6.1

Cost to Income Ratio

49.5

46.7

Return on Equity *)

20.0

22.5

Return on Assets *)

2.9

3.4

Tier I Capital

15.2

14.2

Capital Adequacy Ratio

16.7

15.1

*) Based on a formula determined by Bank Indonesia

BNI Credit growth remains dominated by loans denominated in dollars, which is about 84% of the total loan portfolio, as BNI still want to support economic growth in the country.

'With the performance record, BNI and the Indonesian banking industry should be proud, because amid challenging economic conditions, national banks are still recorded a good enough performance. Growth in operating income was the result of efforts of BNI in improving credit expansion with a focus on the 8 seed sector which currently accounts for over 66% of the total portfolio of Business Banking BNI, 'said Billy.

Customer funds

BNI credit expansion that high growth in 2013 was supported by an increase in Third Party Funds (TPF) of 13.3% from Rp 257.66 trillion in 2012 to Rp 291.89 trillion in 2013. The quality was more deposits maintained with the primary focus on a low fund raising Current Account Savings Account (CASA). That effort has resulted in CASA growth of 15.3% or Rp 26.5 trillion. With the addition of the CASA, low-cost funds managed by BNI increased from 67.0% in 2012 to 68.5% in 2013.

Balance

Financial Ratios

2012

2013

%

Total Assets

333.30

386.66

16.0

Loans

200.74

250.64

24.9

Customer Deposits

257.66

291.89

13.3

Borrowings

8.75

18.95

116.6

Shareholders' Equity

43.53

47.65

9.5

Efforts to improve the composition of CASA deposits continue to be made ??by optimizing BNI BNI program as Transactional Bank ( Transactional Banking ), which can increase the revenue-based commissions ( fee-based ) and the growth of low-cost funds. Some of the initiatives include maintaining transaction cycle between human BNI; improve user service cash management; optimize network to improve the services of international trade finance , treasury, business to wealth management .

Some BNI achievement that stands out in an effort to increase fee-based income , among others, is to become the first national bank that provides services Trustee , both for domestic and international transactions. Services Trustee for international transactions initiated at the time of signing BNI TPAA ( Trustee Paying Agent Agreement ) on February 25, 2013 and for domestic on 22 November 2013.

BNI also appointed to be the only bank deposit receipts that serve the state foreign exchange (forex) in the five cities of the world, namely through the service module of State Revenue (MPN). Launch of MPN services in Overseas Branches of foreign currency to Singapore and Hong Kong performed on 5-8 February 2013, while in Tokyo, London, and New York held on 11-15 February 2013.

The international network to optimize, on February 20, 2013, BNI expand the service network by opening Sales Office in Osaka, Japan to strengthen services to the West. In addition, BNI also opened a special office Remittance services in the area of ??Orchard Road, Singapore.

Getting cheaper

The high cost of funds composition CASA BNI can cause decreased from 2.7% in 2012 to 2.4% in 2013. The high CASA also be a sign that the loyalty of both retail and corporate customers to BNI is maintained. It was not independent of the increase in service level BNI who are second best in the national banking industry, jump from the previous year which was ranked fourth. This achievement is obtained through surveys BNI Monitor Best Service Excellence (BSEM) 2013 conducted by Marketing Research Indonesia (MRI).

Service level is supported by a stronger increase in BNI services with the addition of number of outlets and ATMs. BNI outlets by the end of 2013 reached 1,687 or increased compared to the number of outlets by 2012 as many as 1,585. So is the number of ATMs increased from 8227 units by the end of 2012 to 11,163 ATMs by the end of 2013 .

Ratios

In 2013, BNI is able to increase the ratio of return on assets (ROA) of 2.9% in 2012 to 3.4% in 2013. Similarly, the return on equity (ROE) also rose from 20.0% in 2012 to 22.5% in 2013. BNI is also able to record an increase in net interest margin (NIM) of 5.9% in 2012 to 6.1% in 2013.

Operational activities more efficient BNI also characterized by lowering the cost to income ratio (CIR) of 49.5% in 2012 to 46.7% in 2013 and Operating Expenses Operating Income (ROA) of 71.0% in 2012 to 67 , 1% in 2013. The improvement in these ratios is the embodiment of the implementation of the strategic policies of BNI in improving operational efficiency and effectiveness.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: ENP Newswire


Story Tools