Earning a Profit of IDR 2.1 Trillion, Bank Bjb Strengthens Corporations and SMEs

BANKING - JAKARTA. Bank Bjb recorded a profit of IDR 2.1 trillion in 2023. Meanwhile, for net profit, Bank Bjb achieved IDR 1.78 trillion.

This achievement is in line with a credit growth of 7.5% annually or year on year (yoy).

"With this achievement, Bank BJB successfully recorded a profit of IDR 2.1 trillion in 2023, and showed a strong and efficient financial performance," said the President Director of Bank BJB, Yuddy Renaldi in his statement, Tuesday (5/3).

In 2023, Bank Bjb also developed its business as a group through the Bank Business Group (KUB) scheme. The joining of Bank Bengkulu in the KUB with Bank Bjb Syariah marked an important step, with Bank Bjb becoming the first Regional Development Bank (BPD) in Indonesia to complete the KUB process, becoming a benchmark for the KUB process of all BPDs.

In addition to Bank Bengkulu, Bank Bjb has also established a KUB commitment with Bank Jambi, Bank Maluku Malut, and Bank Sultra, which have signed a Letter of Intent to synergize within the KUB framework on September 29, 2022. Most recently, Bank Bjb signed a Memorandum of Understanding (MoU) with Bank Sultra to further progress within the KUB framework on March 4, 2024.

"With the joining of these four BPDs, we see that Bank Bjb as a group will play a greater role in the National Banking Industry by becoming one of the top 10 banks based on total consolidated assets," said Yuddy.

In addition to focusing on business growth, Bank Bjb also pays attention to social and environmental responsibilities. Through a carbon capture program, this bank has absorbed carbon emissions and actively participated in the Indonesian carbon exchange.

Financially, Bank Bjb recorded several achievements, including credit growth of 7.5% year on year in the fourth quarter of 2023. Although there was a slight slowdown, Bank Bjb remained focused on segments with high yields to maintain a strong and efficient financial performance. With this achievement, Bank Bjb successfully recorded a profit of IDR 2.1 trillion in 2023, showing a strong and efficient financial performance.

Meanwhile, Consumer Loans with a Yield of 12.2% was able to grow 6.3% year on year. Yuddy is optimistic, Consumer Loan as a Captive Market still has good growth opportunities, from the opening of ASN acceptance after a long moratorium period and the conversion of P3K (Government Employees with Work Agreement). Especially in terms of population, the number of P3K workers in West Java and Banten has increased by 18,157 individuals during the second semester of 2023 alone, as well as P3K workers who are Bank Bjb debtors, driving consumer business growth from 5.6% year on year in the second quarter, to 6.3% year on year in the fourth quarter, with a rate of 25 to 50 basis points above for new loans booked.

Bank Bjb is grateful, that the KUB transaction with Bank Bengkulu has finally been approved by OJK after approximately two years since the process began in January 2020, and will consolidate its financial report for March 31, 2024. Bank Bjb became the first BPD to become the parent of other BPDs.

Next for Bank Bjb's KUB, capital allocation for 3 BPDs that have not injected capital is approximately 250 to 500 billion, depending on the results of the study and its valuation. "Business synergy will be accelerated to leverage the business model of Bank Bengkulu," Yuddy emphasized.

Meanwhile, Third Party Funds grew to balance the credit distribution given by maintaining an optimal LDR as of December at 87.5%, as well as other liquidity ratios per existing regulatory provisions, where the total Third Party Funds as of December were recorded at IDR 136.6 trillion, maintaining the impact of interest rate increases through asset and liability rebalancing that is sensitive by ensuring good liquidity conditions.

Meanwhile, referring to the financial ratio, the cost of funds per December tends to be flat where the Cost of Funds is at the level of 4.3%. With the seven-day repo rate being maintained at 6%, we must carry out more optimal asset and liquidity management, responding to the "Higher for Longer" condition. The Non-Performing Loan (NPL) ratio was able to be kept low at the level of 1.35% with Loan Coverage at the level of 113.5% the CAR Ratio at the level of 20.1% and Tier-one ratio at the level of 15.3%.

With these performance notes, efficiency in operational activities continues to be encouraged along with the potentials of fee-based income that continue to be optimized, thus closing 2023 with a recorded profit of IDR 2.1 trillion and after-tax profit of IDR 1.7 trillion. With a solid framework and strong commitment, Bank Bjb is ready to face challenges and expand its business reach to provide added value for all stakeholders. "We are committed to continuously optimizing our business performance while paying attention to sustainable principles and social responsibility," said Yuddy.

Editor: Syamsul Azhar