Banking Industry Performance 2017
By : Arya Mandala And Aldo Bella Putra | Sunday, February 25 2018 - 15:00 IWST
Ilustrasi bank tanah di Jakarta
INDUSTRY.co.id - Jakarta, Confidence began to stretch the banking industry business this year is based on three factors that will be a driver of bank profit growth this year.
First is due to net interest income, non interest income or fee based income and other income.
Even so, the bank's profit growth this year certainly will not reach above 20% as of 2014, because the increase in commodity prices in 2018 has not been as high as 2014.
And this year's bank earnings will be helped more by the improving economy and reinforced by an investment-worthy rating by some foreign rating agencies.
Please note, throughout 2017 and a number of top banks in the release of audited financial statements recorded good performance, including Bank Mandiri, Bank Rakyat Indonesia (BRI) and Bank Negara Indonesia (BNI).
The three state-owned banks have recorded significant net profit growth.
Bank Mandiri reported a net profit of Rp 20.6 trillion by the end of 2017 or grew 49.5 percent year on year (yoy).
"The profit growth is sustained by two main segments, namely corporate and retail, especially micro and consumer loans," said President Director of Bank Mandiri, Kartika Wirjoatmodjo, during the performance exposure at Bank Mandiri Head Office, Jakarta, Tuesday (6/2/2018).
In addition, the achievement was also driven by a 0.6% increase in net interest income to Rp 54.8 trillion and fee based income by 16.4% to Rp 23.3 trillion.
Although Bank Mandiri's growth is not as strong as Bank Mandiri, Bank BRI's profit was Rp 29 trillion or grew 10.7% compared to the previous year's profit.
This achievement is in line with the increasing of BRI's loan which grew 11.4% to Rp 739.3 trillion in 2017.
Director of BRI's Business and Finance Strategy Haru Koesmahargyo said that BRI's credit distribution last year was higher than the average growth of bank credit in Indonesia.
The largest loan portfolio was supported by Micro, Small and Medium Enterprises (MSME) segment of Rp 551.9 trillion, or grew by 13.4 percent.
"The loan portfolio is dominated by MSME loans of 74.6 percent of the total loan," said Haru on the exposure of Bank BRI's performance in 2017 at BRI 1 Building, Jakarta, Wednesday (24/1).
Meanwhile, consumer loan contribution of Rp 114.6 trillion, retail and medium loans of Rp 197.8 trillion.
While the remaining corporate credit Rp 90.3 trillion and SOE Rp 97.1 trillion. BRI also managed to distribute the People's Business Loan (KUR) of Rp 69.4 trillion.
As for BNI net profit Rp13, 62 trillion. This figure grew 20.1% in yoy compared to profit in 2016 amounting to Rp11, 34 trillion.
The increase in BNI's profit is sustained by business expansion in Bussines Banking and Consumer Banking segments, accompanied by improvements in asset quality.
Director of Institutional Relations & Transactional Banking BNI, Adi Sulistyowati said BNI net profit also increased due to net interest income growth in 2017 of 31.94 trillion, up 6.5% compared to last year amounting to Rp30 trillion.
This growth in net interest income is in line with credit expansion that grew by 12.2%.
Sulistyowati further said that net profit was also supported by non-interest income in 2017 which increased 13.9% to Rp9.78 trillion from Rp8.59 trillion previously.