DEPOK (eNBe Indonesia) - State-owned Bank Negara Indonesia (BNI) booked a net profit of Rp7.75 trillion in the first nine months (9M) to September of 2021, jumped 79% year on year (y/y) as net interest income rose 17.6% to Rp28.7 trillion, with net interest margin (NIM) of 4.8%. Operating income also increased 17.5% to Rp41.5 trillion.
The recovery contributed Rp1.66 trillion profit, a 66.5% y/y jump. While provisioning increased 1.5%% y/y to Rp13.8 trillion. An increase in provisioning is part of the imperative strategy to build provision buffers to counter the future deterioration of loan books from COVID-19.
In the third (Q3), BNI booked a net profit of Rp2.72 trillion against a loss of Rp137 billion in Q3 of 2020. Compared to Q2 of 2021, BNI’s profit grew 4.6%. Its net interest income declined 2.9% quarter on quarter (q/q) to Rp12.2 trillion.
The recovery contribution rose 19.8% q/q to Rp609 billion, while provisioning declined 18.4% to Rp4 trillion. BNI President Director, Royke Tumilaar, said the profit growth was also supported by a 16.8% y/y growth in the fee-based income.
The Bank’s lending grew 3.7% y/y to Rp570.64 trillion. It grew 0.2% q/q. Credit for business banking increased 2.7% to Rp473.3 trillion, and credit for the consumer segment rose 9.9% to Rp96.1 trillion. Credit to subsidiaries fell 25.3% to Rp1.2 trillion. Third-party funds grew 1.4% to Rp668.6 trillion.
On business banking, credit for private corporations grew 5.2% to Rp175.9 trillion while credit for state-owned enterprises (SoEs) declined 7.1% to Rp104 trillion. Credit for the medium segment declined 0.3% to Rp100.1 trillion, while credit for the small segment increased 2.7% to Rp473.3.
On the consumer segment, credit for mortgages increased 7.2% to Rp48.8 trillion, and payroll loans grew 17.5% to Rp34.1 trillion. Credit cards rose 1.2% to Rp11.7 trillion.
Restructured loans declined 8.6% y/y to Rp127 trillion. Restructured loans relating to the COVID-19 pandemic increased 23.5% y/y to Rp78.79 trillion or 13.8% of the total loan. BNI’s CAR stood at 17.8%, higher than 15.6% in 9M of 2020.
The Bank’s NPL gross was 3.8%, and LDR reached 85.1%. Its assets grew 5.9% to Rp919.45 trillion. This year, BNI aims to grow its lending to 5-7% and NIM at 4.7-4.9%.
BNI is reported to acquire a digital bank under the BUKU 2 category with a core capital of less than Rp3 trillion, as digital banks have good prospects. The Bank has strong capital for acquiring a digital bank this year. With the current CAR, BNI could acquire a bank at the cost of Rp2-3 trillion.
BNI recently issued Additional Tier-1 Capital Bond Year 2021 worth US$600 million, equivalent to Rp8.6 trillion. Said capital bond carries an annual interest rate of 4.3%. The House Representatives (DPR) have agreed on an additional state capital injection proposed by the government for BNI (Rp3.5 trillion).***
