Jakarta, 26 February 2021 – PT Bank BTPN Tbk (“Bank BTPN”) managed to book healthy growth while keeping fundamentals strong in 2020 as the COVID-19 pandemic caused global and domestic economic uncertainties.

Bank BTPN remained focused throughout last year on ensuring the health of customers and employees, as well as helping affected customers survive the pandemic and supporting their business continuity through credit relaxation in compliance with Financial Services Authority (OJK) regulations, and in support of the government’s National Economic Recovery Program.

“We mitigated the impacts and risks by being prudent in giving loans, restructuring and managing cost of credit, proactively keeping NPL (non-performing loan) in check, reducing cost of funds, managing liquidity and funds, and continuously improve effectiveness in operations. We also accelerated our digital banking capabilities in offering banking services that are not only relevant to our customers but answers to their challenges during the pandemic,” said Bank BTPN’s President Director Ongki Wanadjati Dana.

The COVID-19 pandemic caused loan disbursement by banks to fall. The OJK said banks’ loans dropped 2.4% at the end of 2020. Accordingly, the pandemic also hit Bank BTPN’s loan disbursement in the micro, small and medium segment, the commercial segment, the consumer segment, and the sharia segment. The fall in credit disbursement also attributed to slowdown in business activities and higher credit repayment than the disbursement of new loan facilities. In total, Bank BTPN loans fell 4% year-on-year/yoy to Rp 136.2 trillion. The corporate segment, in the meantime, reported 4%-yoy loan growth to Rp 78.7 trillion.

Bank BTPN restructured a number of credit portfolios owned by customers that were hit by the COVID-19 pandemic. Bank BTPN approved Rp 13.2 trillion of loans, or 9.7% of total consolidated credit portfolios, restructured in 2020.

Bank BTPN’s asset quality remained in good shape, as reflected on the bank’s gross NPL ratio that stood at 1.21% at the end of 2020. The figure was relatively lower than 3.06% recorded within the entire banking industry.

The Bank raised Rp 145.5 trillion in total funds as of the end of December 2020 to finance loans. Third-party deposit rose 16% to Rp 100.8 trillion, with current account savings account (CASA) increasing by 14%. Bank BTPN’s third-party deposit grew in line with the Bank’s efforts to cut cost of funds as Bank Indonesia’s benchmark rate went downward. The higher amount of third-party deposit also reflected customers’ trust in the Bank and its strong business foundation.

Liquidity and funding ratios stayed at healthy levels. Liquidity coverage ratio (LCR) was 281.70%, while Net Stable Funding Ratio (NSFR) stood at 115.14% on 31 December 2020. Bank BTPN booked 1% growth in assets to Rp 183.2 trillion from Rp 181.6 trillion. Its capital adequacy ratio (CAR) was 25.6%.

Sluggish economic activities hit by the COVID-19 pandemic and their impacts to Bank BTPN’s customers made the Bank set aside Rp 2.8 trillion in loan-loss provisioning. Credit restructuring and a drop in interest rates caused Bank BTPN to book lower net interest income. Part of the impact was offset by a fall in interest expenses.

Net interest income fell 4% to Rp 10.6 trillion. Operating expenses remained in check, falling 3% yoy. Bank BTPN managed to keep its profit before cost of credit and tax at Rp 5.4 trillion, the same level as that of in 2019. A rise in loan-loss provisioning gave pressure to the bottom line, which fell 32% to Rp 1.75 trillion in 2020.

As one of the pioneers in digital banking services in Indonesia, Bank BTPN was determined to continue enhancing Jenius, a life finance solution application for digital-savvy users, amid challenges in the COVID-19 pandemic. The number of Jenius users rose 27% to 3.1 million, while third-party deposit in Jenius doubled to Rp13.3 trillion at the end of 2020. The number of transactions on Jenius also surged 70%, dominated by online shopping, savings and e-wallet top up transactions.

“We view that the shift in Jenius users’ behavior is in line with the Indonesian government’s call to maintain social distancing and to do more activities at home. Benefitting from our expertise and experience in providing digital banking services, we launched Sinaya Prioritas, a special service that offers digital-based priority banking services to affluent customers. Sinaya Prioritas services have since been integrated into Jenius application, which provides new and special features to meet Sinaya Prioritas customers’ needs. We can assure you that we will continue adding and developing these features,” said Ongki.

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