Bank OK Net Profit Increases 71.65 Percent In The First Quarter Of 2023

Financial illustration (Photo: Antara)

JAKARTA - PT Bank Oke Indonesia Tbk (DNAR) posted an increase in net profit of 71.65 percent to Rp5.01 billion in the first three months or the first quarter of 2023 compared to Rp2.92 billion in the same period the previous year.

Deputy President Director of OK Bank Hendra Lie detailed that the net profit growth was driven by an increase in net interest income by 41.18 percent to Rp139.73 billion in March 2023 from Rp98.97 billion in March 2022.

"In the future, OK Bank will carry out a series of strategic policies such as focusing on bank savings, consumer financing, financial businesses specializing in credit and capital strengthening in order to encourage business growth amid business climate uncertainty," Hendra said at the GMS in Jakarta, Thursday.

OK Bank was able to optimize the collection of DPK of IDR 5.77 trillion, up 39.98 percent from IDR 3.46 trillion on an annual basis. Credit disbursement also increased by 46.56 percent to IDR 7.96 trillion from IDR 5.43 trillion last year.

"The company maintains a solid capital and liquidity position with a capital adequacy ratio (CAR) of 52.68 percent, relatively the same as the previous year 52.17 percent and a loan to deposit ratio (LDR) of 134.55 percent, improving from the previous year 147.35 percent because it was supported by DPK growth," he said.

In the first quarter of 2023, OK Bank recorded a net NPL of 2.59 percent, a decrease of 2.86 percent on an annual basis.

The bank is also focused on improving restructuring credit assets so that it gradually decreases by 24 percent to Rp1.040 trillion compared to the previous year's Rp1.369 trillion.

"This decline in non-performing loans (NPL) indicates that the quality of bank assets is getting better compared to the previous period. We try to maintain the quality of lending periodically and continuously apply the precautionary principle," he said.

The total Qset OK Bank as of March 31, 2023, amounted to IDR 10.46 trillion, an increase of 47.75 percent from the same period in 2022 of IDR 7.08 trillion.

OK Bank's main profitability indicator, ROE, increased to 0.58 percent from 0.4 percent the previous year. ROA rose to 0.19 percent from 0.16 percent the previous year.

Operating costs of operating income (BOPO) amounted to 97.96 percent until March 31, 2023, relatively the same as the previous year 97.86 percent. On the other hand, the cost to income ratio (CIR) improved to 67.09 percent from 67.88 percent in the previous year.

"The high ratio of BOPO is still due to the fact that banks have conservatively formed reserves for a decrease in value of Rp44.5 billion, an increase of 38.88 percent from the previous year's Rp32 billion," he added.

OK Bank has submitted RBB 2023 to OJK with a net profit target of IDR 41.46 billion, a DPK target of IDR 6.29 trillion, a credit target of IDR 9.35 trillion, CAR 44.42 percent, and NPL net of 1.74 percent.

Hendra added that the OK Bank strategy to achieve performance growth targets during 2023 is to carry out asset stretching, build stable and healthy Rentability accompanied by a precautionary principle and partner with a credit scoring system recorded on the OJK IKD and an internal control system (improve risk).

To date, APRO Financial Co, Ltd, is the controlling shareholder of the company with 93.40 percent ownership of shares, 5.75 percent of society, and 0.85 percent of treasury shares.

In addition to operating a head office in Jakarta, the company has five branch offices in Jakarta, Bali, Central Java, East Java, and most recently in West Java and 11 auxiliary branch offices in Jakarta and Banten.

Referring to the provisions of KBMI, OK Bank is included in KBMI 1 with a core capital below IDR 6 trillion.

Hendra added that the shareholders agreed to appoint Chairudin as Independent Commissioner replacing Idham Aziz, Wang Inhyo as Director of Credit and IT replacing Kim Seongtaek, and VM Djuni Wijaya as Business Director.

"This Independent Commissioner and the two directors were effective after obtaining approval from the OJK and other authorities. The company believes that the shareholder's decision is intended so that OK Bank management has better performance and solidly supports national economic recovery," he said.

Thus, the composition of OK Bank management after the EGMS this Thursday is:

Board of Commissioners: Lim Cheol Jin.USak Komisaris Independent: Sondang Martha Samosir.menurut Komisaris Independent: Chairudin.

President Director Director: Park Young Man. wakil Deputy President Director: Hendra Lie.mencari Director of Credit & IT: Wang Inhyo.men's Business Director: VM Djuni Wijaya.men's Director of Compliance: Efdnal Alamsyah.