JAKARTA. The banks’ net interest margin (NIM) is likely to increase in this year, as the credit interest rate is expected to rise. During the same period, the savings rate is potentially to decrease.
According to Bank Indonesia (the Central Bank), as of January 2017 the banking’s credit interest rate has increased by 1 bps, while the deposits interest rate dropped by 6 bps.
Based on those facts, the Deposits Insurance Agency (LPS) projected that the NIM of banking industry in 2017 is potentially to increase. Head of Economic Risks and Financial System Group at LPS Dody Arifianto said that the banking NIM is still potentially to increase by 7 bps to 5.7% on year on year basis. “The NIM tends to be stable or slightly increase in 2017,” Dody told KONTAN, Monday (20/2).
As comparison, the NIM of banking industry in 2016 had increased by 24 bps to the level of 5.39%.
President Director of PT Bank Central Asia Tbk Jahja Setiaatmadja said that BCA will control the NIM and margin of this year through business diversifying and performance improvement. As of the third quarter of 2016, BCA has recorded a NIM at the level of 6.9%.
Jahja added, the credit interest rate may increase if the infrastructures are running well, as the projects need a significant number of liquidity.
Meanwhile, the largest bank in Indonesia PT Bank Mandiri Tbk recorded an increase in the NIM from 6% to 6.3% in 2016. However, the Director of Financial and Treasury of Bank Mandiri Pahala Nugraha said that the NIM is predicted to slightly decrease in 2017.
Meanwhile, Director Financial and Treasury of PT Bank Tabungan Negara Tbk (BTN) Iman Nugroho Soeko said that the NIM of BTN might decrease by 8 bps from 4.98% to 4.9%. Imana said, BTN will adjust the deposits and credit interest rates.
Nevertheless, Iman said that the credit interest rate is potentially to increase by 25-75 bps in this year. According to Iman, the decrease in deposits interest rate may affect to credit interest rate.
President Director of PT OCBC NISP Tbk Parwati Surjaudaja said that the bank will maintain the NIM at the range of 4%. Last year, the NIM of OCBC NISP stood at the level of 4.6%. The bank can control the NIM by maintaining the net interest rate, which increased by 22% in 2016. Furthermore, OCBC NISP would optimize the composition of cheap funds. (Muhammad Farid/Translator)