Loans Grow 31%, TPFs Grow 42%

Jakarta, 28th April 2009. Amidst the slowing of economic growth, PT Bank Tabungan Pensiunan Nasional Tbk (SMBCI) was still able to increase lending by 31%, to reach Rp 11 trillion as of 31st March 2009. The increase was followed by a 42% increase in third party funds to Rp 13.9 trillion.

Running the banking intermediary function in the midst of slow economic growth is certainly a big challenge; however, SMBCI still managed to increase lending by 31% over the position of 31st March 2008, or generating an increase of 6% during the first quarter of 2009. The loan growth was made while applying the prudential banking practices, so that gross NPL ratio remained at a low level and even decreased from 1.11% of the first quarter 2008 to 0.78%, while net NPL stood at 0.02%.

The impressive growth of lending was complemented by considerable increase in the third-party funds (TPF) which went up by 42% as compared to 31st March 2008, or grew 22% during the first quarter of 2009. With such excellent TPF growth, LDR (Loan to Deposit Ratio) reached 79% compared with 92% as of year end 2008 and 86% as of Q1 2008. With capital adequacy ratio maintained at 25.06%, SMBCI is ready to keep lending growth in the positive trend in the upcoming quarters. Along with the growth of lending and the third-party funds, net interest income increased to Rp 343.4 billion, growing by 4.4% over the same period last year or 12.1% in Q1 2009 alone.

"We have great confidence over our economic outlooks in the medium and long terms; therefore, we foresee that the year 2009 is the right time to invest in business expansion, more branch opening, infrastructure improvement, and employee training. This strategic move is crucial to maintain sustainable performance growth for SMBCI. Consequently, such strategic investment has led to higher operational costs that went up 20.5% to Rp 281 billion, resulting in net income of Rp 57.4 billion as of 31st March 2009, or down 47% from the same period last year," said Jerry Ng, SMBCI's President Director.

SMBCI has catered the pension market for more than 51 years. At the end of 2008, the company started to extend its business to the micro & small enterprise market by introducing SMBCI Mitra Usaha Rakyat (SMBCI MUR). As of 31st March 2009, this new division has expanded its network to include a total of 107 outlets, resulting in BPTN's branch network to a total of 540 offices and the addition of 2,200 employees in the last six months.

Recently, SMBCI also won the Banking Efficiency Award from Business Indonesia, with the recognition as the most efficient bank under the category of banks with total assets of Rp 10 trillion to 50 trillion.

Share