Bank BJB Earns IDR 2.1 Trillion Profit In 2023

JAKARTA - The West Java and Banten Regional Development Banks (Bank BJB) recorded a profit of IDR 2.1 trillion in 2023. Meanwhile, credit growth was 7.5 percent year on year (yoy) in the fourth quarter of 2023.

"The bad credit ratio aka Non Performing Loan (NPL) is able to be kept low at the level of 1.35 percent with a Loan Coverage at the level of 113.5 percent with a CAR ratio at the level of 20.1 percent and a Tier-one ratio at the level of 15.3 percent," said Bank BJB President Director Yuddy Renaldi quoting Antara.

With this performance record, efficiency in operational activities continues to be driven simultaneously with potential fee-based income that continues to be optimized, thus closing the year 2023 with a profit of IDR 2.1 trillion and a profit after tax of IDR 1.7 trillion.

The third party funds (DPK) grew to balance the credit disbursement provided by maintaining the optimal LDR as of December by 87.5 percent.

The total DPK as of December was recorded at IDR 136.6 trillion, maintaining the impact of rising interest rates through sensitive asset and liabilities by ensuring liquidity conditions are well maintained.

While referring to the financial ratio, the cost of funds per December tends to be flat where the Cost of Fund is at the level of 4.3 percent.

"With the re-maintainment of BI-Rate to 6 percent, we have to do more optimal asset management and liquidity, responding to the condition of Higher for Longer," he said.

Consumer loan with a yield of 12.2 percent was able to grow 6.3 percent yoy. Yuddy is optimistic that consumer loans as a captive market still have good growth opportunities, from the opening of ASN revenues after a long moratorium period and the transfer of the function of Government Employees with Work Agreements (PPPK).

PPPK personnel in West Java and Banten increased by 18.157 individuals throughout the second semester of 2023, as well as P3K personnel who became BJB Bank debtors, encouraging consumer business growth from 5.6 percent yoy in the second quarter, to 6.3 percent yoy in the fourth quarter, with a rate of 25 to 50 basis points above for new loans (loan) recorded.

Furthermore, for KUB Bank BJB, capital allocation for three BPDs that have not been injected with capital is approximately IDR 250 billion to IDR 500 billion, depending on the results of the study and valuation.

In 2023, Bank BJB will also carry out group business development through the Bank Business Group (KUB) scheme. The joining of Bank Bengkulu in the KUB with Bank BJB sharia marks an important step, with Bank BJB becoming the first BPD in Indonesia to successfully complete the KUB process, becoming a benchmark for the KUB process throughout BPD.

In addition to Bank Bengkulu, Bank BJB has also established KUB commitments with Bank Jambi, Bank Maluku Malut and Bank Sultra.

"We are committed to continuing to optimize our business performance while paying attention to sustainable principles and social responsibility," said Yuddy.