JAKARTA. Nearing the end of the year, a number of banks continue to enhance its performance. Although overshadowed by the pressure of rising risk and the tight liquidity, bankers seek to meet their performance target.
This was reflected on the performance of a number of banks that have reported financial statements in October 2016 to the Financial Services Authority (FSA). For an example, Bank Negara Indonesia (BNI) as of October 2016 recorded a 23.01% profit increase to Rp 8.26 trillion, thanks to a 21.81% credit rise to Rp 354.19 trillion.
BNI has succeeded to book a profit growth higher than the target of 20% in 2016. During the same period, the credit growth has also exceeded the target of 16%.
BNI’s credit allocation was supported by the medium enterprise and corporate credits, which had increased by 23%. Meanwhile, the business of BNI’s consumer credit also grew in a moderate level by 13%, said Director of Financial and Credit Risks of BNI Rizal Budidarmo.
Aside of boosting the credit growth, BNI improved its performance by increasing the allowance for impairment losses. As of October 2016, the allowance of impairment losses of BNI grew by 41.18% to Rp 16.18 trillion.
Despite of the positive performance, Rico said that BNI will remain focus on the initial target, on the grounds that the liquidity will affect to the credit disbursement during the end of the year.
Bank Tabungan Negara (BTN) has also boosted the credit to meet the performance target. As of October 2016, the profit and credit of BTN increased by 32.92% and 15.89%, respectively. As comparison, BTN targeted to increases the profit and credit by 30% and 18, respectively.
Director of BTN Oni Febriarto Rahardjo said that the BTN’s credit was supported by the high demands of construction and house ownership credits. The profits also increased, thanks to the efficiencies in funding cost and operational cost, Oni said.
BTN is also optimistic to meet the year-end target. The bank also increased the allowance of impairment losses by 8.95% to Rp 2.16 trillion to support its performance.
Improving the credit quality has become the main task for the bankers in this year. The banks were also suppressed, since they have to provide sufficient reserves.
The research of BCA Sekuritas, which was released by 24 November mentioned that the provision funds of Bank Mandiri are expected to increase to Rp 22 trillion, or higher than the target of Rp 20 trillion. “The number came from the analysts’ estimation,” said President Director of Bank Mandiri Kartika Wirjoatmodjo.
(Muhammad Farid/Translator)
