Continuing Credit Growth Expansion of 23.53%, Bank DKI's Profit Soars to an Increase of 29.11%

Published: 08 February 2023

Jakarta – Bank DKI closed 2022 with excellent financial performance. This can be seen from the increase in credit distribution throughout 2022, growing by 23.53% to IDR 48.37 trillion in December 2022, from IDR 39.16 trillion in the previous year. This credit growth is supported by excellent asset quality, with the improvement in the non-performing loan (NPL) ratio indicator to 1.75% in December 2022 from 2.98% in December 2021.

In a written statement in Jakarta, on Wednesday (8/2/2023), the President Director of Bank DKI, Fidri Arnaldy, explained that the increase in the Bank's performance was achieved through a strong expansion strategy as well as synergy and collaboration with various parties including State-Owned Enterprises (BUMN), Regional-Owned Enterprises (BUMD), and leading private companies. "Along with the momentum of economic growth, Bank DKI is carrying out Transformation 5.0 as a whole by accelerating credit distribution performance and sustainable business expansion, as a commitment to encourage Indonesia's economic recovery even though there are still challenges of global uncertainty," said Fidri.

Furthermore, the increase in Bank DKI credit distribution was driven by the aggressive growth of all credit segments year-on-year (yoy). Micro credit experienced an increase of 54.22% to IDR 2.56 trillion in 2022 from IDR 1.66 trillion in 2021. The retail credit segment experienced an increase of 40.30% to IDR 1.29 trillion in 2022 from IDR 922.44 billion in the previous year's period. Meanwhile, the consumer credit segment grew 13.61% to IDR 19.81 trillion in December 2022 from IDR 17.43 trillion in December 2021. Credit on a larger scale also grew very well, such as syndicated credit grew significantly by 70.29% from IDR 3.71 trillion to IDR 6.31 trillion in December 2022. Commercial credit grew 15.40% to IDR 16.51 trillion in 2022 from IDR 14.30 trillion in the previous year. Meanwhile, medium credit grew 67.28% from IDR 1.13 trillion to IDR 1.89 trillion in December 2022.

Fidri added that Bank DKI continues to expand financial inclusion, one of which is through market digitalization. This is done by implementing the JakOne Abank application as an inclusive banking service, QRIS as a payment system, and other digital facilities in the market ecosystem. As an illustration, Perumda Pasar Jaya currently manages 154 markets in Jakarta, with more than 200 thousand traders and 2 million visitors every day. With these characteristics and business potential, Bank DKI has room to grow significantly through various digital products and services, such as JakOne Mobile, JakOne Pay, JakOne Abank, including online Micro Credit applications through the Digital Lending facility. In 2022, Bank DKI succeeded in distributing 100% of the People's Business Credit (KUR) quota of IDR 1.15 trillion to 6,023 MSME players to increase business empowerment, as a form of Bank DKI's commitment to the MSME sector.

Furthermore, Fidri said that the achievement of this impressive performance contributed to an increase in Bank DKI's net profit in December 2022 to IDR 939.11 billion, which is the Company's highest profit achievement since its founding. Profit grew 29.11% compared to the December 2021 period of IDR 727.36 billion. This is also supported by an increase in total assets of 11.51% to IDR 78.88 trillion in December 2022, from IDR 70.74 trillion in the same period the previous year.

Director of Finance & Strategy at Bank DKI, Romy Wijayanto, detailed that the increase in Bank DKI's net profit was achieved through an increase in interest income to IDR 4.53 trillion in December 2022, an increase of 16.64% (yoy) from IDR 3.88 trillion in the previous year's period. In addition, the increase in transactions on digital platforms played a big role in boosting fee-based income growth by 27.71% to IDR 576.01 billion in December 2022, from IDR 451.03 billion in December 2021. Good control over interest expenses influenced the increase in net interest income by 8.92% to IDR 2.93 trillion in December 2022, from IDR 2.69 trillion in December 2021.

Bank DKI's important financial performance ratio indicators also show consistent improvement. The Return on Equity (ROE) ratio in December 2022 reached 10.10%, higher than the previous 7.96% in December 2021. The Operating Expenses to Operating Income (BOPO) ratio was maintained at 78.19% and the Net Interest Margin (NIM) was at a moderate level of 4.71%. This shows that Bank DKI is able to maintain the level of efficiency and reduce its Cost of Funds (CoF). "Bank DKI also established a conservative loss reserve as a step for the Company to mitigate the level of debtor collectibility and strengthen the business foundation in facing global economic challenges in the future." concluded Romy.

Meanwhile, the performance of Third Party Funds (DPK) grew 12.82% to IDR 65.10 trillion in December 2022 from IDR 57.71 trillion in December 2021. Management's prudent performance succeeded in increasing the Loan to Deposit Ratio (LDR) up significantly to 74.30% from 67.86% in the previous year, with Gross NPL at 1.75% and Net NPL 0.27%.

The performance of Bank DKI's Sharia Business Unit also showed very good growth in 2022. Distribution of sharia financing up to December 2022 amounted to IDR 7.41 trillion, an increase of 15.81% from IDR 6.39 trillion in December 2021. This increase is in line with the increase in DPK collection for the Sharia segment of IDR 6.38 trillion in December 2022, an increase of 11.56% from IDR 5.72 trillion in December 2021.

Building Synergy and Active Collaboration with Various Parties

Bank DKI Corporate Secretary, Arie Rinaldi added that the growth of Bank DKI's financial performance cannot be separated from the synergy and cooperation that is actively built with various parties. "Facing the potential for increased economic and banking risks in Indonesia in 2023, Bank DKI will continue to act as a collaborator on community and regional economic growth, through innovation and optimizing synergies and collaboration with BUMD, DKI Jakarta Provincial Government, and other private parties. Implementation of a business strategy that continues to consider digital transformation will also be carried out to achieve long-term strategies and produce sustainable business growth," explained Arie.

Furthermore, Arie explained that along with business growth, Bank DKI also achieved brilliant achievements with a total of 34 (thirty four) awards throughout 2022, including being named the 20 best banks in Indonesia in 2022 (World's Best Banks) according to Forbes magazine; President Director of Bank DKI Entered the TOP 100 CEOs 2022 according to Infobank magazine; TOP BUMD 2022 as BPD with "Excellent" predicate in the KBMI 2 Bank category with assets of IDR 50 trillion to. IDR 100 Trillion by Infobank Magazine; The Best Performance Bank in Regional Development Bank Category (BPD Assets > IDR 30 Trillion) by Bisnis Indonesia; The Best Bank in Digital Services Category BPD Assets > Rp. 30 T by Tempo Magazine.