Up 14.2 Percent, BNI Successfully Prints Net Profit Of IDR 20.9 Trillion Throughout 2023

Bank BNI (Photo: Doc. Antara)

JAKARTA - PT Bank Negara Indonesia (Persero) Tbk (BBNI) managed to record a positive performance, namely an increase in net profit throughout 2023 to IDR 20.9 trillion, an increase of around 14.2 percent on an annual basis or year on year (yoy).

BNI President Director Royke Tumilaar said that through the transformation program for the last three years, the company has consistently encouraged strengthening the business structure so that it is able to face the dynamics and economic challenges.

"The results are also reflected in the increasing level of company profitability, including the return on Equity (ROE) ratio," he explained at a press conference, Friday, January 26, 2024.

BNI recorded a ROE of 15.2 percent in 2023, an increase of 120 basis points from a position of 14 percent in 2019.

According to Royke, this achievement was obtained amidst the increasing value of capital or equity, which illustrates the increasing level of company profitability.

In addition, these positive results were obtained from fundamental improvements, including fee-based income contributions, operational efficiency, and asset quality. Throughout the 2020-2023 period, BNI was able to record an average credit growth of 7.9 percent per year.

Royke said credit growth mainly came from the low-risk prospective segment.

This segment resulted in a decrease in risk profiles drawn from ATMR (Risk-weighted Assets) for credit risk which fell from 82 percent in 2019 to 73 percent in 2023.

Meanwhile, improving asset quality is carried out as a strategic step to ensure the company's business remains sustainable in the long term amid the changing dynamics of the global economy.

"The transformation of the last three years has been a turning point that strengthens BNI's business foundations. We see this transformation program as more than just an initiative. This is a big step that marks our dedication and commitment to continuing to grow and develop and adapt to changes at the national and global levels," he explained.

Royke further revealed that BNI has aspirations to increase ROE by 20 percent by 2028.

According to Royke, ROE's increase will be achieved through consistency in posting quality credit growth from consumer, corporate, and MSME segments so that asset quality will be healthy in the long term.

The company's profitability will also be driven by increased business productivity, operational efficiency and contribution of subsidiaries.

"To make it happen, improving the capabilities of human resources and optimizing technology are important enablers. The transformation that has been running for three years also provides the foundation for increasing the capability of human resources and IT," he added.

Royke said that in the future the company will expand digitalization in business processes, development of more advanced transaction banking platforms, and branch transformation.

"As well as increasing the subsidiary's business scale, which allows BNI to have superior value proposition and superior customer engagement," concluded Royke.