Continue To Expansion Credit Growth 23.53 Percent, Profit Bank DKI JUMPed By 29.11 Percent In 2022

Photo: Doc. Bank DKI

JAKARTA - Bank DKI closed 2022 with excellent financial performance achievements. This can be seen from the increase in lending throughout 2022, growing by 23.53 percent to IDR 48.37 trillion in December 2022, from IDR 39.16 trillion in the previous year.

This credit growth is supported by excellent asset quality, with the improvement in the indicator of the ratio of non-performing loans (NPL) to 1.75 percent in December 2022 from 2.98 percent in December 2021.

Through a written statement in Jakarta, on Tuesday 7 February, Bank DKI President Director Fidri Arnaldy explained that the Bank's performance improvement was achieved through a strong expansion strategy as well as synergy and collaboration with various parties including State-Owned Enterprises (BUMN), Regional Owned Enterprises (BUMD), and leading private companies.

"In conjunction with the momentum of economic growth, Bank DKI carried out a comprehensive transformation of 5.0 by accelerating the performance of lending and business expansion in a sustainable manner, as a commitment to encourage Indonesia's economic recovery despite the challenges of global uncertainty," said Fidri.

Furthermore, the increase in Bank DKI credit disbursement was driven by the growth of all year-on-year (yoy) aggressive credit segments. Micro loans increased 54.22 percent to IDR 2.56 trillion in 2022 from IDR 1.66 trillion in 2021.

The retail credit segment increased 40.30 percent to Rp1.29 trillion in 2022 from Rp922.44 billion in the previous year period. Meanwhile, the consumer credit segment grew 13.61 percent to Rp19.81 trillion in December 2022 from Rp17.43 trillion in December 2021.

Larger-scale loans also grew very well, such as syndicated loans grew significantly by 70.29 percent from IDR 3.71 trillion to IDR 6.31 trillion in December 2022. Commercial loans grew 15.40% to IDR 16.51 trillion in 2022 from IDR 14.30 trillion in the previous year. Meanwhile, medium credit grew 67.28% from IDR 1.13 trillion to IDR 1.89 trillion in December 2022.

Fidri added that Bank DKI continues to expand financial inclusion, one of which is through market digitization. This is done by implementing the JakOne Abank application as an inclusive banking service, QRIS as a payment system, and other digital facilities in the market ecosystem.

As an illustration, Perumda Pasar Jaya currently manages 154 markets in Jakarta, with more than 200 thousand traders and 2 million visitors every day. With these characteristics and business potentials, Bank DKI has room to grow significantly through various digital products and services, such as JakOne Mobile, JakOne Pay, JakOne Abank, including online applications for Micro Credit through Digital Lending facilities.

In 2022, Bank DKI will successfully distribute 100 percent of the People's Business Credit (KUR) quota of IDR 1.15 trillion to 6,023 MSME players to increase business empowerment, as a form of Bank DKI's commitment to the MSME sector.

Furthermore, Fidri said that the achievement of impressive performance helped boost Bank DKI's net profit in December 2022 to IDR 939.11 billion, which is the Company's highest profit achievement since its establishment.

Profit grew 29.1 percent compared to the December 2021 period of IDR 727.36 billion. This is also in line with the support of an increase in total assets of 11.51 percent to IDR 78.88 trillion in December 2022, from IDR 70.74 trillion in the same period the previous year.

Director of Finance & Strategy at Bank DKI, Romy Wijayanto, detailed that Bank DKI's increase in net profit was achieved through an increase in interest income to IDR 4.53 trillion in December 2022, an increase of 16.64 percent (YoY) from IDR 3.88 trillion in the previous year period.

In addition, the increase in transactions on digital platforms played a major role in boosting fee-based income growth by 27.71 percent to IDR 576.01 billion in December 2022, from IDR 451.03 billion in December 2021. Good control of interest expense affected an increase in net interest income by 8.92% to IDR 2.93 trillion in December 2022, from IDR 2.69 trillion in December 2021.

Bank DKI's important financial performance ratio indicator also shows consistent improvement. The Return on Equity (ROE) ratio in December 2022 reached 10.10 percent, higher than the previous 7.96 percent in December 2021. The Operational Fee Ratio to Operating Income (BOPO) was maintained at 78.19 percent and Net Interest Margin (NIM) was at a moderate level of 4.71 percent.

This shows that Bank DKI is able to maintain its level of efficiency and reduce its Cost of Fund (CoF).

"Bank DKI is also forming conservative loss reserves as a step for the Company to mitigate debtor's collectibility levels and strengthen business foundations in facing global economic challenges in the future," concluded Romy.

Meanwhile, the performance of Third Party Funds (DPK) grew 12.82 percent to Rp65.10 trillion in December 2022 from Rp57.71 trillion in December 2021. The prudent performance of management managed to increase Loan to Deposit Ratio (LDR) significantly to 74.30 percent from 67.86% in the previous year, with NPL Gross at 1.75 percent and NPL Net 0.27 percent.

The performance of the Sharia Business Unit of Bank DKI also shows excellent growth in 2022. The distribution of sharia financing until December 2022 is IDR 7.41 trillion, an increase of 15.81 percent from IDR 6.39 trillion in December 2021. This increase is in line with the increase in the collection of DPK in the Sharia segment of IDR 6.38 trillion in December 2022, an increase of 11.56 percent from IDR 5.72 trillion in December 2021.