Q2 2023: Bank DKI Records Credit and Financing Growth of 14.82%

Jakarta, 28 July 2023 – Bank DKI continues to record positive performance amidst various challenges to the banking industry in line with increasing interest rates and negative sentiment due to the banking crisis in the United States and Europe from early March 2023 to May 2023. As of June 2023, Bank DKI recorded credit and financing performance growth of 14.82% to IDR 50.11 trillion, from IDR 43.64 trillion in the same period the previous year. The growth of Bank DKI's credit and financing distribution is better than national credit and financing growth based on Indonesian Banking Statistics (SPI) data published by the Financial Services Authority (OJK), up to April 2023 which grew by 8.26%, and better than the average growth in BPD credit and financing which grew by 10.07%.

The President Director of Bank DKI, Fidri Arnaldy, in a written statement on Thursday (27/7) said that this positive performance was driven by the growth in credit distribution year on year (yoy) in all segments, with a focus on the MSME sector. Significant growth occurred in retail credit which grew by 74.46% to IDR 1.43 trillion in June 2023, from IDR 821.54 billion in June 2022. Micro credit also showed impressive performance with growth of 52.50% to IDR 2.98 trillion in June 2023, from IDR 1.95 trillion in June 2022. Apart from that, consumer credit also recorded positive growth of 14.23%. to IDR 20.94 trillion in June 2023, from IDR 18.33 trillion in June 2022. Likewise with larger scale credit, such as medium credit which grew 16.18% to IDR 1.68 trillion in June 2023, from IDR 1.45 trillion in June 2022. Meanwhile, the commercial credit segment grew 2.03% to IDR 16.45 trillion in June 2023, from the position IDR 16.13 trillion in June 2022, in line with Bank DKI's selective commercial credit distribution strategy. Syndicated credit also recorded significant growth, namely growing 33.48% to IDR 6.62 trillion in June 2023, from IDR 4.96 trillion in June 2022. Distribution of financing for the sharia segment also grew 10.19% to IDR 7.82 trillion in June 2023, from the previous position of IDR 7.09 trillion in June 2022. Along with the increase in credit distribution and financing, this also encouraged an increase in assets. Bank DKI by 12.08% to IDR 82.00 trillion in June 2023, from IDR 73.17 trillion in June 2022.

Furthermore, Fidri said that in its credit expansion strategy, the Company prioritizes effective risk management, managing a credit portfolio that is oriented towards the MSME segment and strict supervision to ensure optimal asset quality. The Gross Non-Performing Loan (NPL) ratio has improved to 1.90% in Q2-2023 from the previous 2.26% in Q2-2022, which indicates that Bank DKI's credit quality is getting healthier. Apart from that, Bank DKI also mitigates potential risks in line with credit growth by maintaining a Coverage Ratio of 219.16%.

Fidri also revealed that in line with good performance growth and various business strategy implementations, up to the mid-July 2023 period, Bank DKI had succeeded in winning 53 award categories from independent institutions in various fields, such as human resources (HR), leadership, governance & risk, corporate governance and management, developing growth and value system technology, as well as strengthening and improving digital products and services, including BUMD Very Good Performance by Infobank, Top Bank 2023 in BPD - Capital >4 Trilion Category and Indonesia Top Banking CEO Awards 2023 by The Iconomics and Indonesia Most Prestigious Company 2023 with Outstanding in Accommodating Various Needs of Public Financial Transactions by Warta Ekonomi. "Facing challenging economic conditions, Bank DKI continues to strive to adapt strategies and look for new opportunities, especially in stable and potential sectors and consistently accelerate digitalization, to create long-term value for all stakeholders." Fidri emphasized.

Anticipate Interest Rate Trends and Tightening Liquidity

Director of Finance & Strategy at Bank DKI, Romy Wijayanto, explained that Third Party Funds (DPK) grew by 9.91% to IDR 66.75 trillion in June 2023, from IDR 60.73 trillion in June 2022. The growth in TPF was dominated by low-cost funds (CASA) growth in Q2 2023, with Current Accounts growing 5.03% to IDR 15.20 trillion in June 2023, from the previous IDR 14.47 trillion in June 2022, while savings grew 10.75% to IDR 10.83 trillion, from the previous IDR 9.78 trillion in June 2022.

Due to the achieved credit and deposit growth, the Loan to Deposit Ratio (LDR) rose to the level of 75.06% in June 2023, compared to the previous 71.86% in June 2022. Meanwhile, other ratios continued to grow positively and were well maintained compared to the Q2-2022 period. ROE was maintained at 9.86%, ROA was 1.56% and Operating Expenses to Operating Income (BOPO) was stable at 78.39%.

Meanwhile, Bank DKI's interest income until June 2023 grew by 22.47% to IDR 2.64 trillion, from IDR 2.16 trillion in the same period the previous year. However, on the other hand, along with the trend of increasing banking interest rates, Bank DKI's interest expenses also increased by 76.82% to IDR 1.29 trillion in June 2023, from IDR 728.03 billion in June 2022. "The trend of increasing interest rates and tightening liquidity carried out by the Central Bank, was anticipated by Bank DKI with a liquidity management strategy including maintaining credit quality and yield at a healthy level to offset the cost of funds." explained Romy.

Despite these various achievements, up to June 2023 Bank DKI's business performance was still in a positive growth trend by posting a net profit of IDR 477.88 billion, growing 4.72% compared to the profit in the first quarter (Q1) 2023 of IDR 233.20 billion, while the net profit in the June 2022 period was recorded at IDR 504.89 billion.

Actively Build Collaboration to Accelerate Business

Bank DKI Corporate Secretary, Arie Rinaldi, added that Bank DKI has carried out a series of collaborations with various entities in the chain of economic actors both in DKI Jakarta and on a national scale. These include synergy with BUMD DKI Jakarta Province, collaboration with BPDs from all over Indonesia (BPD-SI) as mandated lead arrangers in the distribution of a number of syndicated loans, collaboration with DPD Perbarindo DKI Jaya in utilizing Bank DKI digital banking services, especially for BPR/BPRS customers, Bank DKI collaboration with Himbara, Perbanas and Indomaret to present features in the JakOne Mobile financial services application to make cardless cash withdrawals via the entire BCA ATM network, BNI, as well as Indomaret outlets spread across Indonesia, in order to improve service to customers. Not to mention the collaboration with BC Card Asia Pacific to implement a retail payment system in the form of an acquiring service system. Until recently, Bank DKI collaborated with PT Kereta Commuter Indonesia (KCI) which enabled the Bank DKI JakCard electronic money card to be used to pay for Jabodetabek Commuter Line tickets. Apart from that, now JakCard users can top up using a cellphone with an NFC feature via the JakOne Mobile application or via the Tokopedia application.

Bank DKI also consistently develops digital applications, such as the JakOne Mobile super apps, JakOne Pay simple apps, and JakOne Abank and other services such as the Cash Management System, as well as online credit and financing application applications via the Multipurpose Credit (KMG) e-form and developing digital lending applications. In terms of non-cash transaction services using cards, Bank DKI continues to expand its acceptance of JakCard which functions as an electronic money card in various DKI Jakarta transportation modes, entrance tickets to a number of museums, and transactions at various merchants. Including the newly launched JakErte feature which makes it easy to handle administration at the Neighborhood Unit (RT) level online and is integrated with the JakOne Mobile Bank DKI application.