Unloading The Performance Of Bank Jatim, Shares Of Kaesang Jagoan That Have Profits Of IDR 1.1 Trillion

Illustration of Bank Jatim (Photo: Doc. Bank Jatim)

JAKARTA - The newest champion of President Joko Widodo (Jokowi) Kaesang Pangarep's youngest son, namely PT Bank Pembangunan Daerah Jawa Timur Tbk. (Bank Jatim) turned out to have quite an interesting performance over the past year.

"The valuation is cheap, the PE (price to earnings) ratio is only 7.5x with an ROE (return on equity) of 13 percent," he said in a tweet on Twitter as quoted by VOI, Friday, January 15.

Based on the disclosure of information submitted to the Indonesia Stock Exchange (IDX), the bank that is proud of Wong of East Java is known to have reported its latest financial performance in the third quarter of 2020. In that period, Bank Jatim was able to earn a net profit of Rp1.1 trillion. This achievement increased on an annual basis by about 3 percent.

In terms of liquidity accumulation, third party funds (DPK) are said to have grown by 13.9 percent to 69.7 trillion, dominated by low-cost funds consisting of savings, current accounts and time deposits.

As for the banking intermediary function, the issuer coded BJTM shares claims to be able to channel funds of not less than IDR 40 trillion. These results make Bank Jatim credit grow 7 percent compared to the third quarter of 2019.

Loans in the MSME sector contributed to the highest growth, amounting to Rp6.46 trillion, followed by corporate credit growth of Rp.10.01 trillion

A brilliant loan book raised assets to IDR 82 trillion, 13.8 percent jump from the September closing position in the previous period.

Then for several ratios in the financial statements, BJTM's performance is classified as good. For example, return on equity (ROE) of 18.63 percent, net interest margin (NIM) of 5.7 percent, and return on assets (ROA) of 2.57 percent. Meanwhile, Operational Costs compared to Operating Income (BOPO) were still maintained at 70.25 percent.

Although in general, Bank Jatim can be considered outstanding, this financial service institution has difficulty maintaining the quality of distribution of funds. This indication can be seen from the ratio of non-performing loans (NPL) which swelled to 4.49 percent (gross) and 1.85 percent on a net basis.

The book exceeds the provisions of the Security Services Authority (OJK) which stipulates that healthy credit distribution must be accompanied by an NPL figure not exceeding 4 percent.

It seems that the impact of the economic downturn due to the COVID-19 pandemic has also affected the intermediary function of Bank Jatim.