Until 2028, BNI Aims For A 20 Percent ROE Increase

Rupiah illustration (Photo: dock. Antara)

PT Bank Negara Indonesia (Persero) Tbk (BBNI) targets an increase in Return on Equity (ROE) by 20 percent by 2028.

President Director of BNI Royke Tumilaar said that the increase in ROE will be achieved through consistency in posting quality credit growth from the consumer, corporate, and MSME segments so that the quality of assets will be healthy in the long term.

According to Royke, the company's profitability will also be driven by increased business productivity, operational efficiency and contribution from 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 explained at a press conference, Friday, January 26, 2024.

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 customer engagement," said Royke.

Previously, BNI managed to record a Return on Equity (ROE) of 15.2 percent in 2023, this figure increased by 120 basis points from a position of 14 percent in 2019.

Royke said this achievement was obtained amid increasing capital or equity values, thereby describing the increasing level of company profitability.

"These positive results are obtained from fundamental improvements, including fee-based income contributions, operational efficiency, and asset quality," he said.

Meanwhile, during the 2020-2023 period, BNI was able to record an average credit growth of 7.9 percent per year.

Meanwhile, credit growth comes from the low-risk prospective segment. This segment resulted in a decrease in the risk profile drawn from ATMR (Risk-weighted Asset) for credit risk which fell from 82 percent in 2019 to 73 percent in 2023.

Royke said that improving asset quality was carried out as a strategic step to ensure the company's business remained 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 said.