More Sloping, BNI's Covid-19 Restructuring Reaches IDR 33 Trillion Until September 2023

JAKARTA - PT Bank Negara Indonesia (Persero) Tbk (BBNI) reported that credit restructuring affected by credit for the Covid-19 pandemic continues to decline.

BNI Risk Management Director David Pirzada added that the company has been able to record an increase in asset quality in the COVID-19 restructuring book. In September 2023, the number of loans restructured in the government's national economic recovery program was recorded at IDR 33.2 trillion or only 5 percent of total credit remained.

"This is in line with our expectations. We are also still conservative in terms of forming reserves, so we are sure that we are better prepared to face the end of the OJK stimulus program next year," he said, quoted on Wednesday, November 1.

The decline in credit restructuring was also followed by a decrease in NPL and LaR ratios. The NPL ratio as of September 2023 was recorded at the level of 2.3 percent or had greatly improved when compared to the same period last year which reached 3 percent.

Meanwhile, the LAR ratio, which includes NPL, credit on collectibility 2, and current smooth collectibility credit, was recorded at 14.4 percent, improving compared to September 2022 which was 19.3 percent.

"Although asset quality indicators show strong improvements, we continue to offset them by providing backups at sufficient levels to anticipate future risks of uncertainty," he said.

The ratio of CKPN's burden on total credit costs until September 2023 was 1.4 percent, a decrease of 60 bps compared to credit costs formed in the same period last year of 2 percent.

The CKPN formed is very adequate to cover the need for additional reserves for debtors who are still in special attention. The adequacy of this reserve is illustrated from the reserve ratio for NPL and LaR at the position in September 2023, which is at the adequate level of 324.5 percent and 51.1 percent, respectively.