Growing Positively, Bank Papua Records Credit Distribution Increases 8.26 Percent In 2023

JAKARTA - The Papua Regional Development Bank (BPD) or Bank Papua noted that the performance in 2023 grew positively compared to the 2022 period. This is reflected in the achievement of asset value, lending, realization of third party funds (DPK), and net profit.

"Bank Papua has managed to record positive performance both per BPD group and the national banking industry," said Head of the Bank Papua Strategic Planning Division Wastu Anggoro Wijonarko quoting Antara.

He explained that Bank Papua's assets in 2023 grew 8.26 percent to IDR 32.2 trillion compared to 2022 which only reached IDR 29.8 trillion.

Then, credit disbursement in 2023 reached IDR 19.5 trillion, which was dominated by consumption loans of IDR 10.9 trillion or 55.7 percent of total credit.

"The total credit disbursement grew 7.9 percent compared to 2022 which reached Rp18.1 billion," he said again.

He continued that the total DPK collected during 2023 reached IDR 25.6 trillion or grew 6.15 percent compared to 2022 which reached IDR 24.1 trillion.

In composition, non-bank DPK, namely deposits from customers in 2023, did not experience significant changes compared to 2022, with deposits in the form of gyro still being the largest.

"Judging in terms of the ratio of finance and bank efficiency, it is still quite good," he also said.

In general, he said, the operating income generated during 2023 grew 0.98 percent from the previous year, in line with the increase in net profit and comprehensive profit.

With various steps that have been taken, Bank Papua was able to obtain interest income of IDR 2.3 trillion or grew 0.90 percent from 2022 of IDR 2.3 trillion.

According to him, interest income growth was offset by a significant decrease in expenses, so that Bank Papua managed to achieve a net profit of IDR 427 billion, an increase of 9.82 percent compared to the same period in 2022 of IDR 389 billion.

Return On Asset (ROA) of Bank Papua in 2023 was recorded at 1.62 percent, Ratio Return on Equity (ROE) 14.13 percent, Net Interest Margin (NIM) 6.43 percent, and operating income operating expenses (BOPO) 84.32 percent.

"Bank Papua's net profit in 2023 recorded the highest record in the last five years or since 2019," he said again.

In addition, he said, the ratio of non-performing loans (NPL) is still below the threshold set by regulators with gross NPL achievements in 2023 of 2.41 percent and for net NPL 0.69 percent.

One of the determining factors for the success of bank management is the ratio of minimum capital fulfillment obligations (KPMM) which takes into account market risk, and by the end of 2023 the KPMM of Bank Papua was 25.78 percent higher than in 2022 which reached 23.53 percent.

"Bank Papua also maintains gross NPL at a relatively low level of 2.41 percent and net NPL 0.69 percent," he said.

According to him, Bank Papua continues to accelerate the performance of productive types of credit distribution such as working capital credit, investment credit, and MSME loans in all operational areas.

Education and socialization of products and services to the community continues to be carried out throughout the Bank Papua service network, then followed by a pattern of assistance for prospective debtors who have not been bankable before being given credit.

He explained that the financial statements for the 2023 financial year, the bank's 2024 business plan and the plan to become a foreign exchange bank have received approval at the 2024 general meeting of shareholders (GMS).

He also said that the digitalization expansion strategy was continuously being carried out in supporting the local government and community financial transaction electronicization system.