SMBC Indonesia

28 April 2022

Bank BTPN Posts 7.3%-yoy Loan Growth March-end on Economy, Corporate Activities

Jakarta, April 28, 2022 – PT Bank SMBC Indonesia Tbk (“Bank BTPN”) booked solid loan growth at the end of March in line with Indonesia’s economic recovery, corporate growth plans, and public optimism over the economy.

The bank recorded Rp142.37 trillion in outstanding loans as of March 31, up by 7.3 year-on- year (yoy) from Rp132.68 trillion booked a year ago.

Bank BTPN's loan growth in the first quarter of this year was higher than the average loan growth in the banking industry of 6.65% yoy that Bank Indonesia reported for the same period.

“Bank BTPN has been able to book good achievements in loan disbursements in the first quarter of this year aligned with its strategy and optimistic growth momentum,” Kaoru Furuya, Acting President Director of Bank BTPN, said today in Jakarta.

“We hope to see faster economic recovery as the COVID-19 pandemic is easing,” he added.

At the end of March 2022, the bank recorded 10% yoy increase in assets to Rp192.40 trillion, from Rp 174.72 trillion.

The Bank's credit growth is supported by efforts to continuously maintain credit quality. The Bank also constantly monitors the quality of its existing credit portfolio in the face of a very dynamic external situation, including the ongoing impact of COVID-19. In March 2022, the Bank booked an additional cost of credit, this increased the cost of credit in the first quarter of 2022 from Rp164 billion to Rp435 billion (mostly from the corporate segment), thus affecting Bank BTPN's consolidated net profit after tax attributable to owners of the parent entity which decreased by 23 % yoy to Rp752 billion from Rp971 billion.

The gross non-performing loan ratio at the end of March 2022 was 1.40%, slightly lower than the gross NPL ratio reported in the same period last year of 1.42%. For comparison, Bank Indonesia reported a gross non-performing loan ratio of 3.08% at the end of February.

Regarding Third Party Funds, Bank BTPN succeeded in increasing the balance of third party funds to support the bank's loan growth. Third party funds recorded an increase of 8% yoy to Rp106.73 trillion as of March 31, 2022, compared to Rp98.93 trillion booked a year before.

The increase in third-party funds was attributable to both current account savings account (CASA) that rose 21% yoy to Rp37.02 trillion and time deposits that climbed up by 2% yoy to Rp69.71 trillion. CASA ratio increased to 34.7% on March 31 from 30.9% a year before.

Bank BTPN continues its efforts to cut the cost of funds (Rupiah) from 3.8% to 2.9% as Bank Indonesia's benchmark rate remained low.

Net interest income rose by 2% yoy to Rp2.85 trillion in the first quarter of the year, from Rp2.78 trillion, contributed by loan growth and decreased interest expense by 17% yoy to Rp818 billion from Rp991 billion from higher CASA balance as well as lower the time deposit interest rate, but there was a reduction in yields which resulted in the lower NIM from 6.75% in the first quarter of 2021 to 6.40% in the first quarter of 2022.

Healthy liquidity and funding ratios, with liquidity coverage ratio (LCR) standing at 203.5% and net stable funding ratio (NSFR) at 117.9% as of March 31, 2022. The capital adequacy ratio (CAR) remains healthy at 25.6% as of end of March 2022.

In the meantime, Jenius (digital bank of Bank BTPN) reported 3.78 million users as at the end of March, a 19% increase from 3.2 million a year before, and Rp16.2 trillion in third-party deposits, a 13% rise from Rp14.3 trillion.

For further information, please contact:

PT Bank SMBC Indonesia Tbk
Andrie Darusman, Communications & Daya Head
Email: [email protected] or [email protected]

SMBC Indonesia in brief

PT Bank SMBC Indonesia Tbk (SMBC Indonesia)—formerly PT Bank BTPN Tbk (Bank BTPN)—is a foreign exchange bank resulting from the merger of PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) and PT Bank Sumitomo Mitsui Indonesia in February 2019. Driven by the spirit of "Do Good, Be Great," SMBC Indonesia aims to create more meaningful growth for society through innovative and comprehensive financial solutions centred on meeting customers' needs across various segments. SMBC Indonesia provides products and services such as green financing, products and services for retired customers, for micro, small, and medium enterprise customers, for large national, multinational, and Japanese corporations, wealth management services through Sinaya, as well as digital banking services for digital-savvy communities through Jenius. Additionally, SMBC Indonesia has subsidiaries, including PT Bank BTPN Syariah Tbk, serving customers from productive underprivileged communities, and financing companies PT Oto Multiartha (OTO) for four-wheel vehicles and PT Summit Oto Finance (SOF) for two-wheel vehicles. SMBC Indonesia's commitment to positively and sustainably impacting the broader community is also reflected through Daya. This sustainable and measurable empowerment program offers regular training to enhance personal capabilities and capabilities for a more meaningful life.

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