Amar Bank Distributes Rp2.8 Trillion Loans Per Quarter II-2024

Rupiah (Photo: Antara)

JAKARTA - PT Bank Amar Indonesia Tbk (AMAR) noted that lending as of June 2024 reached IDR 2.8 trillion, most of which was driven by financing to the MSME sector.

SVP Finance Amar Bank David Wirawan stated that this achievement was in line with the company's efforts to support the government to expand credit access for the small business sector.

Not only channeling financing, but his party also focuses on developing innovative financial solutions that are tailored to meet the needs of MSME actors through the Embeddd Banking service.

"The Embeddd Banking solution is designed to provide financial tools and services that are integrated directly into partner platforms, enabling MSMEs to manage their banking needs more efficiently and safely," he said.

David said that the service can help MSMEs overcome financial barriers and accelerate their business growth by simplifying transactions, providing easier credit access, and integrating banking services into daily business operations.

Not only Embeddd Banking's service innovation for the MSME sector, he said that his party was also focused on developing digital banking innovations.

Thanks to this innovation, the online segment jumped 32.7 percent year-on-year (yoy) to Rp450 billion and contributed 71.1 percent of the company's total revenue.

This also boosted the company's interest income to grow by 30.8 percent yoy to Rp573.07 billion in the second quarter of 2024, although the number of third party funds (DPK) decreased by 6.77 percent due to a decrease in time deposit balances.

The company's net profit also increased by 15.3 percent yoy to Rp97.78 billion from Rp85.03 billion in the second quarter of 2023.

Seeing the positive performance of Amar Bank, the brokerage company and investment partner of FAC Sekuritas Indonesia provided recommendations for the purchase of AMAR shares with a 12-month target at IDR 294.

The price target reflects the potential for an increase of 31 percent compared to AMAR's share price at the close of the market on August 30, 2024, which was IDR 224.

FAC Sekuritas Indonesia considers that with a strong focus on financing MSMEs, Embeddd Banking services, and digital banking innovation, Amar Bank is in the right position to support Indonesia's economic growth goals, as well as offering attractive returns for investors.