Bank BTPN achieved robust financial growth in 2023, demonstrating its sustained commitment to sustainability.

Jakarta, February 26, 2024 - In 2023, PT Bank BTPN Tbk (Bank BTPN) elevated its net interest income by prioritizing the development of comprehensive and innovative financial services, with a strong focus on sustainability.

Bank BTPN's net interest income rose by 3% year-on-year (yoy) to Rp12.04 trillion from Rp11.68 trillion, maintaining a net interest margin (NIM) of 6.45%, higher than the same period last year at 6.32% according to its 2023 financial report.

The rise in net interest income, primarily driven by interest income from loans, propelled Bank BTPN's operating income by 3% yoy. This led to an increase in pre-provision operating profit (PPOP) to Rp6,511 billion from Rp6,498 billion.

"The support of Bank BTPN's customers through our flagship programs, including Daya, is a key factor in our success in 2023, contributing to positive growth that makes a meaningful change for our customers," said Henoch Munandar, President Director of Bank BTPN.

"As we celebrate the 66th anniversary of Bank BTPN with a focus on accelerating growth, our commitment remains strong. We will continue to instill economic optimism through sustainable financial services across all segments. This commitment is reinforced by leveraging advanced digital technology and integrating sustainability values into every facet of our operations," emphasized Henoch.

Founded 66 years ago in Bandung, West Java, with the aim of assisting retiree customers to achieve greater self-sufficiency, Bank BTPN has now evolved into a mature and industry-experienced organization. It has played a pioneering role in the development of digital banking in Indonesia.

In its 2023 performance, Bank BTPN recorded a 7%-yoy surge in total lending, reaching Rp156.56 trillion compared to Rp146.12 trillion at the end of 2022. This growth was primarily driven by lending to corporate customers, small and medium enterprises, and Jenius customers. Demonstrating its commitment to empowering micro, small, and medium enterprises, Bank SMBCI booked an increase in the macro-prudential inclusive financing ratio (RPIM) to 29.14% as of the end of December 2023, up from 24.57% in the same period the previous year.

Bank BTPN also maintained good credit quality. The gross non-performing loan (NPL) ratio decreased to 1.36% at the end of 2023, down from 1.43% in the same period the previous year. This ratio was below the industry average of 2.2% as of the end of December 2023.

Bank BTPN's Current Account & Saving Account (CASA) balance increased by 10% yoy from Rp40.16 trillion to Rp44.19 trillion by the end of 2023. The CASA ratio also had an uptick, moving from 35.0% to 40.8%. In contrast, total deposits dropped by 14% yoy to Rp64.01 trillion, leading to a 6%-yoy decrease in Bank BTPN's total third-party deposits from Rp114.87 trillion at the end of December 2022 to Rp108.20 trillion at the end of December 2023. This decline is attributed to Bank BTPN's efforts to optimize its cost of funds.

Bank BTPN's (consolidated) net profit after tax attributable to owners of the parent entity was Rp2,358 billion at the end of 2023, reflecting a 24%-yoy decrease. This resulted from the bank’s choice to raise loan provisions by Rp1,210 billion in anticipation of the end of POJK’s relaxation on restructured loans on March 31, 2024.

Nevertheless, Bank BTPN successfully maintained liquidity and funding ratios at healthy levels, with its liquidity coverage ratio (LCR) reaching 199.7% and net stable funding ratio (NSFR) at 113.8% as of December 31, 2023. The company recorded a strong capital adequacy ratio (CAR) of 29.9%.

Bank BTPN's commitment to building a socially impactful and sustainable future

One of Bank BTPN's empowerment programs is Daya, aiming to enhance the lives of customers across all segments through four main pillars, namely financial literacy, personal capacity building, business capacity building, and sustainable living. Throughout 2023, over 5.5 million people have benefited from Daya through 11.359 community-centered activities.

Bank BTPN promotes environmental sustainability in fulfilling its corporate responsibility. Committing to achieving a net-zero emission target by 2030, Bank BTPN has implemented various strategies through products such as green financing, ESG Deposits, and social financing.

Bank BTPN's sustainable vision is evident in the evolution of Jenius, now serving as a financial solution to support customers' lifestyles, particularly digital-savvy customers. Since its introduction seven years ago, Jenius has delivered more than 40 innovative features catering to customers across Indonesia.

Closing 2023, Jenius achieved 19% growth in registered users to 5.2 million, compared with 4.4 million in 2022. Total lending, encompassing Flexi Cash, Digital Macro, Jenius Visa Credit Card, and PayLater, demonstrated a remarkable surge of 121%, reaching Rp2 trillion from the previous year. Furthermore, Jenius’s third-party deposits experienced 8% growth, reaching Rp25.5 trillion.

"Bank BTPN's sustainability initiatives mirror its core values in all operations, including integrity, customer focus, proactivity, innovation, speed, quality, and synergy. We believe sustainability is more than financial growth—it's about the tangible impact our sustainable financial solutions can make on people's lives," Henoch concluded.

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