Bank Sumut Jaga Profitability And Efficiency Makin Solid Towards An IPO Of IDR 1.49 Trillion

Photo: Doc. Antara

PT Bank Pembangunan Daerah Sumatera Utara Tbk (Bank Sumut) recorded a net interest margin (NIM) or a net interest margin above the average regional banks, state-owned banks, and even national private commercial banks.

Bank Sumut, a candidate for issuers who are ready to take the floor on the stock exchange with the stock trading code BSMT, recorded a net interest margin of 6.84 percent in the third quarter of 2022 (as of September 30, 2022), up from 6.73 percent in the same period in 2021.

Based on the Banking Industry Profile Report released by the Financial Services Authority (OJK), industrially, regional development banks (BPD) recorded a 5.8 percent NIM as of September 2022, an increase compared to September 2021 which reached 5.74 percent.

Meanwhile, the average NIM for state-owned banks and national private commercial banks is 5.52 percent and 4.29 percent, respectively. The net interest margin or NIM is the distribution between bank revenues from interest and interest given to customers. NIM is one of the main measures in the level of banking profitability.

At the same time, Bank Sumut also continues to encourage efficiency in operations, where the level of operational costs for operating income (BOPO) in the third quarter of 2022 was 75.19 percent, better than the same period the previous year of 77.23 percent.

OJK, in Indonesian Banking Statistics, noted that as of August 2022, the BOPO rate of national private commercial banks was 76.69 percent, better than the previous month's 77.34 percent. Meanwhile, the BOPO rate of conventional Regional Development Banks (BPD) was recorded at 75.42 percent, even slightly worsening compared to the previous month's 75.38 percent.

Bank Sumut sendiri mencatatkan pendapatan bunga dan bagi hasil syariah sebesar Rp2,39 triliun per 30 September 2022, naik Rp6,68 miliar atau 0,28 persen dibandingkan dengan periode yang sama tahun sebelumnya. Sebagai informasi, pada tahun 2021, perseroan mendapatkan pendapatan bunga dan bagi hasil syariah total sebesar Rp3,20 triliun.

Meanwhile, the interest expense and distribution of temporarily Syirkah funds as of September 30, 2022, amounted to IDR 566.23 billion, down from the same period the previous year of IDR 743.61 billion.

For this reason, Bank Sumut managed to record an increase in interest income and net sharia income to Rp1.84 trillion as of September 30, 2022, from the same period the previous year of Rp1.65 trillion. Based on the fundraising performance, Bank Sumut pocketed third party funds (DPK) of Rp33.38 trillion until September 2022, up 1.11 percent (yoy) from the previous Rp33.01 trillion.

"Bank Sumut will continue to expand to improve its performance, one of which is by conducting an initial public offering or IPO. The IPO funds will later be used for working capital, one of which is by expanding lending and improving our technology infrastructure. Most importantly, with the IPO, the business process will be better," said Acting President Director of Bank Sumut Hadi Sucipto, in his statement, Sunday, January 22.

According to the prospectus, this regional bank belonging to North Sumatra Province has held an initial offer or bookbuilding of a maximum of 2,934,798,300 shares or representing 23 percent of Bank Sumut's total shares after the IPO) from Thursday, January 5 to Wednesday, January 18.

With a nominal value of IDR 250 per share, Bank Sumut, the first BPD outside Java which will soon be listed on the Indonesia Stock Exchange, has set an offering price in the price range of IDR 350 to IDR 510 per share so that the company has the potential to reap IDR 1.02 trillion to a maximum of IDR 1.49 trillion.

Until September 2022, Bank Sumut managed to record a net profit of IDR 520.57 billion, growing 17.44 percent compared to the same period the previous year of IDR 443.29 billion. On an annual basis, Bank Sumut's net profit is also quite solid, except in 2020 due to the COVID-19 pandemic. In 2019, Bank Sumut's net profit was recorded at IDR 544.75 billion, then decreased to IDR 514 billion in 2020 and rose again to IDR 613.60 billion in 2021.

In terms of profitability, return on equity (ROE) or the level of equity return of Bank Sumut in the third quarter of 2022 was 17.38 percent, higher than the same period the previous year 16.10 percent. Meanwhile, return on assets (ROA) or asset return rate of 2.17 percent, higher than the same period the previous year of 2.06 percent.