Lending Grows 36%, Public Funds Grow 41%, Net NPL 0.02%, and Assets Grows 39%
Jakarta, 20th October 2009. The Financial Statements of PT Bank Tabungan Pensiunan Nasional Tbk (SMBCI) as of 30 September 2009 indicates excellent growth as well as positive results of the company's business expansion that will ensure sustainable performance growth going forward.
Consistent with the business focus and commitment to provide lending to for Micro & Small Enterprises (MSEs) and pensioners, as of 30th September 2009, total loans (gross) reached Rp 13.8 trillion or grew 36% from the previous Rp 10.1 trillion as of 30th September 2008. Consistent loan growth was safely guarded with the application of the prudential principles in risk management. As of 30th September 2009, gross NPL ratio stood at 0.49%, which was lower than 0.77% of 30th September 2008 and net NPL ratio as of 30th September 2009 was 0.02%. At the same time, total assets reached Rp 19.3 trillion or jumped 39%. "We continue to optimize lending without compromising the prudential principles in our risk management," said Jerry Ng, SMBCI's President Director.
High lending growth was also complemented with significantly higher level of public funds that reached Rp 16.6 trillion as of 30th September 2009 or increased by 41% compared to same period last year. Additionally, in order to support business expansion and for its long-term financing, on 8th October 2009, the Bank successfully issued and listed Rupiah denominated bonds amounting to Rp 750 billion in Indonesia Stock Exchange. The bonds were issued with a three-year and five-year maturity and was given the national long-term rating of A + (idn) by Fitch Ratings. Subsequently, still in early October 2009, International Finance Corporation (IFC) committed to provide financing for SMBCI in the forms of five-year Senior Loan and Convertible Loan. This credit facility is denominated in Rupiah in the amount equivalent to USD70 million. "The availability of funding from higher amount of public funds, bond issuance proceeds and loans from IFC has presented the Bank with the capability to keep expanding and optimize its intermediary function," explained Jerry.
By 30th September 2009, operating income reached Rp 1.57 trillion or increased 27% from Rp 1.24 trillion as of 30th September 2008. The increase of operating income was primarily attributable to the increase of interest income as the result of lending growth.
In line with the business strategy to serve micro & small enterprises, SMBCI consistently expands its operational network by opening branches of smbci|mitra usaha rakyat and expanding its workforce. By 30th September 2009, the Bank has added 345 new offices of smbci|mitra usaha rakyat, bringing the number of offices under SMBCI's distribution network to 857 offices, which include 391 offices of smbci|mitra usaha rakyat that now serves more than 70,000 small traders and traditional markets' kiosk owners. Distribution network expansion was also supported by the expansion of workforce, in which 4,700 new employees were recruited in 2009, bringing the total employees to 8,700 people as of 30th September 2009.
The investment made in 2009 to expand micro & small enterprises market unavoidably increased operating expenses. However, the Bank managed to maintain the trend of consistent increase of net income in every quarter. Net income of Q1 2009 was Rp 57.4 billion, net income of Q2 2009 was Rp 83.2 billion, while net income of Q3 2009 was Rp 125.6 billion (or increased 51% from the previous quarter). As of 30th September 2009, the Bank's net income reached Rp 266.2 billion, down 18% compared to the same period last year.
As of 30th September 2009, SMBCI managed to maintain its capital adequacy ratio of 21% or well above the 8% limit of Bank Indonesia. "In developing our MSE and pensioner markets, we prioritize sustainable optimum growth that is supported by operational infrastructure development, good risk management, branch office expansion, and human resources expansion," Jerry concluded.
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