A Peek at Bank DKI's Performance in the Midst of the Covid-19 Pandemic
Jakarta, May 25 2021Published: May 25, 2021
Jakarta, CNBC Indonesia - In line with the economy gradually recovering from the Covid-19 pandemic, Bank DKI's business performance also recorded positive performance growth in the first quarter of 2021. Bank DKI recorded a net profit of IDR 191.60 billion in the first quarter of 2020, an increase of 4.16% compared to the same period the previous year of IDR 183.95 billion. The growth in net profit was mainly supported by growth in Net Interest Income of 14.43%, from initially recorded at IDR 579.67 billion in the first quarter of 2020 to IDR 663.30 billion in the first quarter of 2021.
The growth in net profit is in line with the gradual recovery of the economy, thus affecting demand for credit. In the first quarter of 2021, Bank DKI posted credit growth of 3.96% YoY to IDR 33.66 trillion as of March 2021 compared to the previous period of IDR 32.37 trillion. However, Bank DKI continues to implement various initiatives and effective risk management to prevent the increase in the risk of non-performing loans. Credit and financing distribution is also carried out very selectively and paying attention to the principle of prudence. This was conveyed by the Corporate Secretary of Bank DKI, Herry Djufraini in Jakarta (25/05).
On the other hand, Bank DKI's Third Party Funds (DPK) also increased by 28.42% to IDR 42.98 trillion in the first quarter of 2021. The growth in DPK was mainly driven by growth in current accounts of IDR 11.34 trillion as of March 2021, an increase of 74.87% compared to the previous period of IDR 6.49 trillion. "The growth in deposits was accompanied by an improvement in the cheap funds ratio (CASA Ratio) from the previous 43.54% to 47.56%."
Gradually, Bank DKI also continues to improve credit quality which is well maintained where in the first quarter of 2021, the gross NPL ratio was still maintained at 3.19%, an increase of 0.10% compared to the same period the previous year. However, the increase in the gross NPL ratio is still below the increase in the banking industry's NPL ratio of 0.40% from 2.77% in the first quarter of 2020 to 3.17% in the first quarter of 2021. Bank DKI's Net NPL ratio in the first quarter of 2021 was recorded at 0.62% and is below the banking industry's Net NPL average of 1.02%. This shows that Bank DKI has anticipated potential risks by making reserves even though there is a restructuring program.
"Credit risk is indeed a challenge in itself for banking considering that we are still overwhelmed by the Covid-19 pandemic. We are very grateful that the OJK has extended the relaxation provisions until 2022. This of course provides flexibility for the banking industry to manage credit risk better. Bank DKI has also made a number of efforts to improve the ratio of non-performing loans through intensive credit collection, taking over collateral, auctioning credit collateral, credit restructuring through the National Economic Recovery (PEN) program, and write-offs," concluded Herry.