Holding New Shares Issuance, Bank BJB Will Get Additional Capital Of Rp924 Billion

JAKARTA - PT Bank Pembangunan Daerah Jawa Barat and Banten Tbk (BJBR) continues to increase its capital. To realize this, the bank known as Bank BJB chose the capital market route.

One of them is through Pre-emptive Rights (HMETD). The company targets funds of up to Rp924.99 billion in this action called the rights issue.

In fact, the President Director of Bank BJB Yuddy Renaldi said, on the first day of the rights issue, the target for obtaining funds from Bank BJB had penetrated 75 percent.

"In the first day of trading, investor interest is very good. Because of the total target set, 75 percent is absorbed by shareholders," he said in a statement quoted by Antara, Friday, March 11.

Yuddy emphasized his optimistic attitude regarding the absorption of the rights issue, considering the trading period until March 16, 2022.

In addition to the rights issue, Bank BJB also plans to reissue subordinated bonds up to a maximum of IDR 1 trillion.

Yuddy Renaldi explained the achievement of BJB's positive business performance during 2021 where consolidated profit before tax reached Rp. 2.6 trillion.

"With interest income growth of 21.6 percent followed by 36.9 percent fee-based income growth sourced from Bank BJB's digital channel which also grew 42.4 percent year on year, with the formation of more solid reserves to strengthen Bank BJB's balance sheet. ," he said.

Total assets of Bank BJB, he continued, also grew positively by 12.4 percent or Rp. 158.4 trillion and became the largest among Regional Development Banks (BPD) in Indonesia or included in the top 14 in the national banking industry.

Bank BJB's Third Party Funds (DPK) also increased by 14.3 percent to Rp121.6 trillion or grew above the banking industry average which was only at the level of 12.2 percent (SPI OJK: December 2021), with a low cost of funds. The more efficient it is reflected in the much lower cost of funds compared to the same period the previous year.

In addition, Bank BJB credit recorded growth of 7.4 percent or Rp. 102.2 trillion, which also grew above the banking industry average which was only at the level of 5.2 percent (SPI OJK: December 2021), credit growth was driven from various segments ranging from from consumers, corporations and commercial, MSMEs, and mortgages.

Likewise, the NPL can be maintained at a level of 1.2 percent below the banking industry average.