ENP Newswire -
Release date- 24072014 - BII Continues to Record Strong Loan Growth of 25% YoY.
Although Results being Impacted by NIM Compression and Stringent Provisioning
Loans portfolio grew by 25% to
Assets increased by 19.3% to
Customer Deposits increased 16.2% to
Loan to Deposit Ratio (LDR) (Bank Only) reached 90.80%
Total capital reached
Successfully Completed the issuance of
Net interest income (NII) increased from
Profit After Tax and Minority Interest ('PATAMI') reached
The Bank saw healthy loans growth of 25% year-on-year (y-o-y) to
The Bank continued to manage liquidity prudently by prioritizing the maintenance of a healthy liquidity reserve. Customer Deposits increased 16.2% during the first semester 2014 to
Tight liquidity situation experienced by banking industry in the first half 2014 which has led to increasing cost of fund has impacted the Bank's Net Interest Margin (NIM) which declined from 5.34% to 4.75%.
The Loan-to-Deposit ratio (Bank only, excluding subsidiaries) remains at a healthy level, reaching 90.80% as of
To further improve its long term funding composition and strengthen its tier 2 capital, the Bank has successfully completed the issuance of
Provision to the regulatory approval for inclusion of Subordinated Bond as Tier 2 Capital, total net proceeds resulting from the Subordinated Bond will increase the Bank's Capital Adequacy Ratio (Bank only) from 11.93% to 13.30% based on
The Bank also saw positive performance in other areas of its operations. Under Business Banking, the
Following successful pilot implementation of its micro banking, the Bank has officially launched PIJAR (Pilihan Bijak Mitra Usaha) which is the Bank's arm for Micro Banking to reach out to the growing micro business in
Retail Banking also recorded improved performance for the first half 2014. Mortgage loan portfolio grew at 30% accompanied by sound asset quality, while the Unsecured loans increased by 32% with credit card business up by 31.7% Despite the challenging market liquidity , the retail deposits saw 20% growth through increasing payroll services, cross selling and consistent growth in its segmented women and junior accounts. Electronic Banking has also showed robust development as the Bank's Electronic transaction continued to grow especially from mobile banking supporting our customers' needs for simpler and faster services. Currently more than 75% retail transactions use the Bank's electronic channels.
The Bank's Global Banking client focus re-segmentation implemented this year to include greater focus on the Top-Tier Local Corporates and State-Owned Enterprises have shown encouraging development and is expected to be driver for the Bank's cash management and annuity fee business. The recent landmark deal with one of the top state owned enterprises for a
However, in the first semester of 2014, the Bank experienced some asset quality deterioration in a number of its Global Banking borrowers. As a result, provisions increased by 116.8% to
To improve efficiency and productivity, the Bank has embarked on Strategic Cost Management Program (SCMP) since early 2013. This Program has enabled the Bank to manage its operating expenses growth to within 3%.
The Bank's subsidiaries namely
Positive traction also continued at WOM. Continued improvement in asset quality and implementation of prudent risk management practice resulted in a stable net NPL at 1.47% in
Comments by BII President Director, Taswin Zakaria:
'We maintain the view of continued challenging market condition for the rest of 2014, and will continue to prioritize portfolio growth with strict pricing discipline for both loan and liquidity. We will also further emphasize cost management initiatives to optimize the benefits from our investments and improve the overall efficiency in the future.'
'The second half of 2014 will also see the continued roll-out of our transformation initiatives aimed at sharpening our fundamentals in our effort to build better quality and sustainable portfolio. In doing so, we continue to empower our domestic regional businesses and will at all times prioritize high-quality customer services, product innovation, process simplification, and regional connectivity with the Group.
Comments from President Commissioner BII and Chairman of
'I am pleased that BII's strengthening franchise has led to improved performances in our consumer and SME sectors. Our continuing focus to enhance productivities across the company whilst sustaining efforts to manage market risks better should lead to better results in the second half of this year'.
Note to Editor
BII is one of the largest banks in
For futher information contact:
Esti Nugraheni, Corporate Communications Division Head, ph.: +6221 2922-8888 Internet Banking
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