Great! Bank Jatim Profit Reaches IDR 1.46 Trillion In 2020

Bank Jatim Building. (Photo: Wikipedia)

JAKARTA - The performance of PT Bank Pembangunan Daerah Jawa Timur Tbk (BJTM) or Bank Jatim is still positive even in the midst of the COVID-19 pandemic. Bank Jatim's profit and income were recorded to have grown in 2020.

Quoted from the press release of Bank Jatim, Friday, April 16, the net profit of the East Java regional development bank grew 8.17 percent to IDR 1.46 trillion years on year (YoY). This profit growth is in line with BJTM's revenue increase of 9 percent to IDR 83.62 trillion throughout 2020.

The management of Bank Jatim admits that 2020 is a tough year for the banking industry. The COVID-19 pandemic that has hit almost all parts of the world has caused the business sector to experience a decline and has an indirect impact on the performance of the banking industry.

However, Bank Jatim is grateful that in the midst of the pandemic and still able to record positive performance growth.

During the 2020 Financial Year, Bank Jatim of Third Party Funds recorded a growth of 13.08 percent YoY of IDR 68.47 trillion. The significant growth in third-party funds shows that public trust in Bank Jatim has increased.

From the financing side, this time Bank Jatim was able to record positive credit growth even though in the midst of a pandemic, which grew 8.16 percent YoY or IDR 41.48 trillion. Credit in the consumption sector was the highest contributor, amounting to IDR 24.35 trillion or grew by 5.42 percent YoY.

Followed by commercial credit amounting to IDR.10.33 trillion or a growth of 11.95 percent and credit in the MSMEs sector amounting to IDR.6.80 trillion. The composition of Bank Jatim's financial ratios for the period December 2020 included Return on Equity of 18.77 percent, Net Interest Margin of 5.55 percent, and Return on Assets of 1.95 percent.

During the pandemic, Bank Jatim also participated in supporting the credit restructuring program launched by the Government. As of March 2021, Bank Jatim has restructured its loans to 3,297 debtors with a total outstanding of IDR 1.82 trillion or around 4.37 percent of the total loan disbursement.