DEPOK (eNBe Indonesia) - Bank Central Asia (BBCA), the largest company on IDX by market capitalization, booked a net profit of Rp11.5 trillion in the first quarter (Q1) of 2023, a 43.0% growth year on year (y/y).
State bank BRI, the largest in terms of total assets, meanwhile, recorded net profit of Rp15.56 trillion in the quarter, expanded by 27.4% from the corresponding period last year.
BCA’s achievement was underpinned by credit expansion, improved loan quality, higher yields from placements in government bonds as one of the sources for financing national development, and growth in fee and commission income in line with the increase in transaction volume.
BBCA posted a 12.0% y/y increase in total loans to Rp713.8 trillion as of March 2023.
Corporate loans increased 11.7% y/y to Rp320.5 trillion in said period. With rising business activities, commercial and SME loans grew 11.8% y/y to Rp211.1 trillion.
BCA’s loan growth was accompanied by an improvement in loan quality, as the Bank’s restructured loans gradually recovered into normal payment term.
The Loan at Risk (LAR) ratio improved to 9.5% in Q1 of 2023, lower than 13.8% in the previous year. Meanwhile, the Non-Performing Loan (NPL) ratio was recorded at 1.8%, lower than 2.3% in the previous year.
On the funding side, CASA increased 5.7% y/y to Rp843.3 trillion in March 2023, contributing 81.2% to total third-party funds.
Third-party funds grew by 4.1% y/y to Rp1,039 trillion, supporting total asset growth of 4.9% y/y to Rp1,322 trillion. BCA posted a positive growth in net interest income for Q1 of 2023, up 28.0% y/y to Rp18.5 trillion.
PT Bank Rakyat Indonesia (BRI) Tbk (BBRI), meanwhile, booked a net profit of Rp15.56 trillion in the first quarter (Q1) of 2023, grew 27.4% year on year (y/y), as profit from operations rose 27.6% y/y to Rp19.55 trillion.
BRI’s provision expenses also declined 25.1% y/y to Rp5.59 trillion. Net interest income increased 7.8% y/y to Rp32.78 trillion, with net interest margin (NIM) was 7.82%.
BRI’s gross loan and financing grew 9.7% y/y to Rp1,180 trillion in Q1 of 2023, and assets increased by 10.5% to Rp1,823.9 trillion. Total deposits rose 11.4% to Rp1,255.4 trillion.
The bank’s capital adequacy ratio (CAR) stood at 24.98%, and the non-performing loan (NPL gross) ratio was 2.86%. For this year, BBRI targets loan growth at 10-11%, NIM at 7.7-7.9%, NPL at 2.6-2.8%.
That said, the high inflation slightly reduces loan growth, both for BRI & the industry. BRI exhibits a better ability to recover to baseline loan growth within 2 quarter compared to the industry, which requires 5-6 quarter.
Indonesia has experienced various inflationary cycles in the past decades, mainly due to rising fuel prices (2005, 2008, 2013, and 2014).
Historically, BRI said it has been able to maintain positive loan growth and relatively manageable loan quality during those inflationary cycles, primarily attributable to the micro loan stable performance.
State-owned mortgage bank PT Bank Tabungan Negara (BTN) Tbk (BBTN) booked net profit of Rp801 billion in Q1 of 2023, grew 3.42% y/y, as operating profit rose 3.08% y/y to Rp1.02 trillion.
While interest income declined 12.68% y/y to Rp3.1 trillion. Net interest margin (NIM) was 3.51%, down from 4.29% in Q1 of 2022.
That said, increase in interest expense by 43.48% y/y is still lower than policy rate hike by around 50% (from 3.75% – 5.75%).
Other operating expense decreased by 5.45% y/y due to the efficiency. And provision charge has decreased by 4.69% y/y to Rp749 billion.
BTN’s credit and financing rose 8.16% y/y to Rp299.75 trillion. Third party funds increased 10% y/y to Rp319.61 trillion.
BTN’s capital adequacy ratio (CAR) improved to 17.50% in 2022, and NPL (net) was 1.46%. BTN is assigned to build 200-300 thousand of homes per year until 2024, so the backlog is expected to decline to 4-4.5 million units by 2030.
BTN will add finance disbursement capacity to 1.32 million units in the next five years, after raising Rp4.13 trillion from rights issue and government’s capital placement or state equity participation (PMN).
Bank Mandiri (BMRI) booked profit after tax of Rp12.56 trillion in the first quarter (Q1) of 2023, grew 25% year on year (y/y), supported by a 12.4% y/y growth in loan (Rp1,205 trillion).
Net interest income grew 12.4% to Rp23 trillion while non interest income rose 12.6% to Rp9.7 trillion.
Net interest margin (NIM) improved to 5.4% from previous 5.31%. Provision expenses also declined 7.75% y/y to Rp3.69 trillion.
BMRI’s CAR improved to 20.3% from 18%, and NPL declined to 1.77% from 2.66%. BMRI’s third party funds grew 9.62% y/y to Rp1,391 trillion.
Bank Negara Indonesia (BBNI) booked profit after tax of Rp5.2 trillion in Q1 of 2023, grew 31.8% y/y, supported by a 7.2% y/y growth in loan (Rp634.3 trillion).
Net interest income grew 12.7% to Rp10.4 trillion while non interest income fell 19.7% to Rp3.2 trillion.
Net interest margin (NIM) improved to 4.67% from previous 4.50%. Provision expenses also declined 40.3% y/y to Rp2.1 trillion.
BBNI’s CAR improved to 21.6% from 19.3%, and NPL gross declined to 2.8% from 3.5%. BMRI’s third party funds grew 7.4% y/y to Rp743.73 trillion.
On credit, loan to private corporate segment grew 21.2% y/y to Rp234 trillion.
Then, the enterprise or large commercial segment rose 13.2% y/y to Rp52.2 trillion. BNI’s loans to the consumer segment grew 11.9% y/y to Rp113.4 trillion in Q1 of 2023.
BBNI also recorded a decrease in credit to debtors affected by the pandemic along with recovery.
The credit restructuring portfolio due to Covid-19 as of the end of March 2023 remained Rp45.8 trillion, or only 7.3% total credit, decreased compared to Q1 of 2022, at 12% of total credit.
The depreciation of the Covid-19 restructuring credit mainly came from the sectors most affected by the pandemic, such as restaurants, hotels, textiles and construction.
Bank Panin (PNBN) booked net profit of Rp659.7 billion in Q1 of 2023, down 1% y/y, as net interest income declined 5.6% y/y to Rp2.35 trillion.
Operating profit was down 0.5% y/y to Rp808 billion. Its assets reached Rp206.6 trillion, of which credit accounted for Rp123.9 trillion.***