In 2021, Bank DKI's Profit Grows By 25.27 Percent To Rp.727.36 Billion

Illustration. (Photo: Doc. Bank DKI)

JAKARTA - In the midst of economic conditions that have not yet fully recovered, in 2021 Bank DKI is able to record positive performance growth. As of December 2021, Bank DKI was able to record a net profit of Rp.727.36 billion, growing 25.27 percent from profit as of December 2020 of Rp.580.64 billion.

The net profit was driven by an increase in Operational Income Before Reserves (PPOP) which grew 45.9 percent yoy to reach Rp1.3 trillion in 2021. This was stated by the President Director of Bank DKI, Fidri Arnaldy in his written statement, Wednesday 9 March.

Fidri said, along with the increase in credit and profit growth, the total assets of Bank DKI reached Rp. 70.74 trillion as of December 2021. When compared to the position of total assets of Bank DKI at the end of 2020 which reached Rp. 63.05 trillion, total assets increased by 12. 21 percent of Rp63.05 trillion, better than the growth in national banking assets of 10.18 percent.

Fidri added, in 2021 Bank DKI has started a series of Transformation 5.0 programs which consist of four main pillars, namely: (1) Business & Support for DKI Provincial Government which is divided into Lending, Funding and Ecosystem; (2) Digital & Operations; (3) Human Capital, Organization & Culture; and (4) Governance, Risk Management & Compliance. In addition, Bank DKI has also begun to implement an ecosystem business strategy in collaboration with DKI Jakarta BUMDs and their derivatives.

"The business potential in DKI Jakarta is huge. We hope that by implementing a digital ecosystem strategy, especially with DKI Jakarta BUMDs and corporate customers as well as market and school communities, it will be able to increase Bank DKI's future business," said Fidri.

Meanwhile, the Director of Finance of Bank DKI, Romy Wijayanto added that Third Party Funds in 2021 will reach Rp. The growth of TPF is above the average growth of TPF for the banking industry in 2021 of 12.21 percent.

The growth in deposits is accompanied by improvements in the structure of the funds held so that the Current Account Saving Account (CASA) ratio can increase significantly from 45.49 percent to 51.37 percent in 2021. This linearly affects the improvement in the efficiency level of the cost of funds or Cost of Fund from 4.39 percent in 2020 to 2.96 percent in 2021.

Romy further said that the growth in deposits was mainly supported by the growth of demand deposits of 58.92 percent from Rp11.17 trillion in 2020 to Rp17.76 trillion in 2021, and savings which increased 7.29 percent from Rp11.07 trillion in 2020. to Rp11.88 trillion in 2021.

Deposits increased by 5.22 percent from Rp.26.67 trillion in 2020 to Rp.28.06 trillion in 2021. Meanwhile, lending and financing in 2021 reached Rp.38.70 trillion, growing 8.52 percent from 2020 which was recorded at Rp. IDR 35.67 trillion.

The achievement of credit and financing growth is above the credit growth of the banking industry in 2021 by 5.24 percent.

"This growth was driven by the growth of micro credit which grew by 31.75 percent from the original recorded Rp. 1.47 trillion as of December 2020 to Rp. 1.93 trillion as of December 2021. This is in line with Bank DKI's efforts to encourage lending to the MSME sector, including the Syndicated Loans and Financing to PT Permodalan Nasional Madani amounting to Rp4 trillion," said Romy.

Apart from SMEs. Credit distribution to the consumer segment also grew by 10.97 percent from IDR 13.72 trillion as of December 2020 to IDR 15.23 trillion as of December 2021. Commercial loans also grew 4.60 percent from IDR 14.48 trillion as of December 2020 to IDR 15. 15 trillion as of December 2021, and sharia financing grew 6.9 percent from Rp. 5.95 trillion as of December 2020 to Rp. 6.37 trillion as of December 2021.

Credit and financing disbursement was carried out with due observance of the prudential principle, marked by well-maintained asset quality as reflected in the realization of the Gross NPL and Net NPL ratios, which were maintained at 3.02 percent and 0.38 percent, respectively.

Bank DKI consistently continues to increase the Allowance for Impairment Losses (CKPN) as reflected in the coverage ratio in 2021 to 150.62 percent, an increase of 24.12 percent from the previous 126.50 percent as of December 2020.

Bank DKI's financial ratios are generally maintained within adequate limits, marked by the Capital Adequacy Ratio (CAR) which is recorded at 27.85 percent while the loan to deposit ratio (LDR) is at the level of 67.07 percent.

The ratio of Operating Expenses to Operating Income (BOPO) as of December 2021 was recorded at 79.33 percent, improving from 2020 of 81.99 percent. The Net Interest Margin (NIM) ratio at the end of 2021 was recorded at 5.19 percent.