Earns Revenue Of IDR 1.1 Trillion, NPL Ratio Of KB Bukopin Bank Improves

JAKARTA - Bank KB Bukopin (BBKP) recorded an increase in interest income by 23.5 percent yoy to IDR 1.1 trillion in the first quarter of this year.

This interest income growth was driven by new lending of IDR 2 trillion, an increase of 38.3 percent compared to the same period the previous year.

Deputy President Director of PT Bank KB Bukopin Tbk, Robby Mondong revealed, total credit in this period was recorded at IDR 45.8 trillion, down 13.2 percent yoy.

"This decrease in total credit is part of Bukopin's KB strategy to improve asset quality by completing low-quality credit," he told the media, Friday, May 5.

He further explained that currently KB Bukopin, which is in the process of turning the business into a better business with KB Financial Group-Korean, has succeeded in making substantial progress where Gross's total gross or Non-Performing Loan (NPL) problem loans fell 48.6 percent yoy from Rp6.1 trillion in the first quarter of 2022 to Rp3.2 trillion in the first quarter of 2023.

Gross's NPL ratio is at 7 percent or improving compared to the same period the previous year which was at 11.8 percent.

"This asset quality improvement has been achieved through organic methods such as intensive billing, cessie, and non-organic efforts through the sale of portfolios and book removal," explained Robby.

Meanwhile, the increase in the quality of Bukopin's KB assets can also be seen at the loan at risk (LAR) level, which decreased from 64.4 percent in the first quarter of 2022 to 50.3 percent in the first quarter of 2023.

Meanwhile, total savings were recorded at IDR 46.5 trillion, down 5.4 percent yoy. Robby explained that this decrease in deposits was a consequence of Bukopin's strategy to make changes in the composition of managed funds, so that in the future he could focus on increasing the low-cost funds obtained from savings and demand or Current Account Saving Account (CASA) to manage the cost of funds or Cost of Fund.

"From the current CASA ratio position at 20.6 percent, Bank KB Bukopin targets the CASA ratio to increase to close to 25 percent by the end of 2023," continued Robby.

KB Bukopin intends to maintain a credit to deposit ratio (LDR) at the current level, at 98.5 percent, and manage its funds efficiently to avoid excessive unemployed funds.

Meanwhile, net interest margin (NIM) was recorded at 0.8 percent, down from 1.7 percent in the same period the previous year, mainly due to an increasing trend in the benchmark interest rate rate.