JAKARTA, NETRALNEWS.COM - State-owned banking company PT Bank Negara Indonesia (Persero) Tbk (IDX:BBNI) has obtained lending growth of 14.7 percent to IDR 558.7 trillion in the third quarter of 2019. In addition, its third party funds also grew by 5.9 percent to IDR 581 trillion.
Ario Bimo, Finance Director of Bank Negara Indonesia, also known as BNI, said the company's credit growth was driven by financing in the corporate segment which rose 18.1 percent (year-on-year/YoY) to IDR 291.7 trillion. Loans to the Private Corporate Segment increased 24.8 percent YoY to IDR 181.1 trillion, while lending to state-owned enterprises (SOE) went up 8.6 percent YoY to IDR 110.7 trillion.
In addition, the Corporate segment and the Small Business segment contributed growth of 19.2 percent YoY to IDR 75 trillion. "Loans in the corporate segment are mainly channeled to the manufacturing, trade, restaurants and hotels, business services, construction, and electricity sectors," Ario said.
He continued that BNI's lending was supported by third party funds growth of 5.9 percent YoY to IDR 581 trillion in the third quarter of 2019. "BNI also maintains a low-cost fund ratio as indicated by the composition of CASA which reaches 64.3 percent of total deposits, mainly due to current accounts growth of 13 percent and savings growth of 7.5 percent (yoy)," he explained.
Ario further revealed that BNI's lending supported the growth of Net Interest Income (NII) to IDR 26.9 trillion in the third quarter of 2019. Meanwhile, Non-Interest Income or fee-based income (FBI) in the third quarter of 2019 increased 13 percent (yoy) to IDR 8.1 trillion.
"With the support of NII and FBI growth, BNI was able to obtain net profit of IDR 12 trillion, or a 4.7 percent growth over the same period in 2018," Ario said.
BNI's Fee-based income is supported by the growth of recurring fees by 17.1 percent (yoy) to IDR7.9 trillion. The increase in the FBI in the third quarter of 2019 was driven by fees from the business banking segment, including fees from trade finance which grew 9.4 percent, and syndicated fees which grew 81.6 percent.
"Sources of fees from the consumer business include, among others, debit card management fees that roser 57.5 percent and transaction fees through ATMs which went up 16.5 percent," Ario added.
In terms of asset quality, BNI's NPL has improved to 1.8 percent in the third quarter of 2019 from two percent in the same period a year ago. Lending costs also showed improvement, which decreased from 1.4 percent in the third quarter of 2018 to 1.3 percent in the third quarter of 2019.
In addition the coverage ratio increased from 152 percent in the third quarter of 2018 to 159 percent in the third quarter of this year.