SCBI's Net Profit Reaches Rp 341 Billion in Q1-2018

INDUSTRY.co.id - Jakarta - As the leading international banking group, Standard Chartered Bank Indonesia recorded a net profit of Rp 341 billion in Q1-2018. That number increased by 214 percent over the same period last year.
"Implementation of the strategy since the beginning of this year resulted in significant improvements in the bank's financial performance compared to the first quarter of last year," said Rino Donosepoetro Chief Executive Officer, Standard Chartered Bank Indonesia, in the event of performance exposure (14/5) in Jakarta.
This, he said, is also supported by the strengthening of national economic fundamentals, as well as utilizing the expertise and international network of banks. Seeing the good results, the company is optimistic to achieve this year's target.
Rino said that the net interest income of the bank increased 9 percent, mainly contributed by transaction banking and wealth management business which grew by 32 percent and 16 percent respectively compared to the same period last year.
"Operating expenses dropped by 6 percent, showing the concrete results of the bank's efficiency efforts.It is important for banks to maintain this condition, and continue to preserve the cost efficiency culture in our banks consistently driving smart spending thinking," he said.
Total assets of Standard Chartered Bank Indonesia in the first quarter has increased by 4 percent yoy with better asset quality. This is indicated by lower gross non-performing loans (NPLs), which is 3.9 percent compared to the same period last year of 5.8 percent.
"Although the burden of impairment losses is often the lowest in the first quarter, it shows good progress and remains a constant reminder to continue reducing our gross loan levels throughout 2018 by always applying prudential principles," he added.
Meanwhile, Standard Chartered's profitability ratio in the first quarter showed solid solid performance with Return on Asets (ROA) of 3.16 percent and Return on Equity (ROE) of 16.35 percent. Third Party Funds (DPK) grew by 12 percent, of which 72 percent of Standard Chartered's deposits consist of demand deposits and savings accounts (CASA's low cost ratio.