Q2 2024, Bank DKI MSME Credit Grows 22.78%, Realizing Sustainable Performance

Jakarta – Bank DKI has once again succeeded in recording positive business performance while showing comprehensive support for sustainable financial actions. By focusing on increasing the MSME portfolio which is also in line with the bank's vision and mission, the Company recorded credit and financing for the MSME segment which grew by 22.78% from IDR 4.41 trillion as of June 2023 to IDR 5.41 trillion as of June 2024. Credit and financing for the MSME segment, namely Micro credit for the June 2024 period, increased 27.99% to IDR 3.81 trillion from the previous IDR 2.98 trillion in June 2023. and Retail credit for the June 2024 period increased by 11.94% to IDR 1.60 trillion from the previous IDR 1.43 trillion in June 2023. This growth in credit and financing for the MSME segment encouraged a cumulative increase in the proportion of MSME credit to 10.11% of Bank DKI's total credit and financing for the June 2024 period which was recorded at IDR 53.56 trillion. This was conveyed by the Main Director of Bank DKI, Agus H. Widodo in his written statement in Jakarta (30/07).

Agus further said that in its credit expansion strategy, the Company prioritizes quality credit distribution and prioritizes the principle of prudence. Loan portfolio management oriented towards the MSME segment, and strict supervision to ensure optimal asset quality. "Facing challenging economic conditions, Bank DKI continues to strive to adapt strategies and look for new opportunities, especially in sectors that are stable and have the potential to increase long-term value for all stakeholders," he stressed.

Apart from that, Consumer credit and financing for the June 2024 period grew 9.05% to Rp. 22.83 trillion from the previous Rp. 20.94 trillion for the June 2023 period. Medium credit and financing grew 12.40% to Rp. 1.89 trillion from the previous Rp. 1.68 trillion in June 2023. Meanwhile, Commercial credit and financing (including term loans) for the June 2024 period grew 1.48% to Rp. 23.41 trillion. from the previous IDR 23.07 trillion in June 2023, in line with the commercial credit distribution strategy which is carried out selectively to bona fide multinational companies and Regional Owned Enterprises (BUMD) which are part of the Bank DKI ecosystem, especially companies operating in the wholesale and retail trade sectors. These conditions encouraged the overall growth of Bank DKI's credit distribution and financing as of June 2024 to reach IDR 53.56 trillion, an increase of 6.88% from the previous period which was recorded at IDR 50.11 trillion, as recorded in the Bank DKI Financial Report for the period June 2024 (unaudited).

Director of Finance & Strategy at Bank DKI, Romy Wijayanto, explained that Bank DKI's interest income until June 2024 grew by 4.95% to IDR 2.77 trillion, from IDR 2.64 trillion in June 2023. However, on the other hand, along with the trend of increasing banking interest rates, Bank DKI's interest expense also increased by 11.53% to IDR 1.43 trillion in June 2024, from IDR 1.29 trillion in June 2023. "The trend of increasing interest rates is 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.

Romy also said that amidst the ongoing period of high interest rates (higher for longer), Bank DKI collected Third Party Funds (DPK) for the June 2024 period reaching IDR 65.18 trillion, consisting of Current Accounts of IDR 12.48 trillion, Savings of IDR 10.99 trillion, and Deposits of IDR 41.70 trillion.

Due to the achieved credit and DPK performance, the Loan to Deposit Ratio (LDR) rose to the level of 82.16% in June 2024, compared to the previous 75.06% in June 2023. Meanwhile, other ratios were maintained, ROE at 6.59%, ROA to 1.11% and Operating Expenses to Operating Income (BOPO) stable at 87.02%.

Despite these various achievements, up to June 2024, Bank DKI's business performance was still on an upward trend, recording an increase in Bank DKI's assets of 0.34% to Rp. 82.29 trillion in June 2024, from Rp. 82.00 trillion in June 2023. Consistency in business prospects through business expansion encouraged the company to record a positive net profit of Rp. 338.53 billion.

Bank DKI's Various Supports for the MSME Sector

Bank DKI Corporate Secretary, Arie Rinaldi, added that Bank DKI always supports the MSME sector as a form of implementing the Company's Vision and Mission, with Bank DKI participating as a People's Business Credit (KUR) Distributing Bank. In addition, Bank DKI provides easy access to a choice of products and services for MSME players to encourage increasing business scale through credit and financing for business premises ownership in markets managed by the Regional Government.

Bank DKI's commitment to supporting the MSME sector is also realized through joint synergy with Perumda Pasar Jaya. Bank DKI has implemented a market digitalization program under the management of Perumda Pasar Jaya, which allows traders and buyers in the market ecosystem to use digital service access via QRIS for payment of buying and selling transactions. Bank DKI also provides access to payment of market fees and levies which can be done via Bank DKI's JakOne Mobile. This synergy has been realized in a number of markets in Jakarta, such as Santa Market, Grass Market, Kedoya Market, Koja Market, Perumnas Klender, Kebayoran Lama Market, Ciracas Market and Kramat Jati Market.

Apart from efforts to develop business scale for MSME players through lending and financing, Bank DKI's support for MSMEs is also realized through a number of CSR programs, including the provision of business support facilities and infrastructure as well as renovations in a number of locations including those under the auspices of the South Jakarta PPKUKM Sub-department, Rusunawa Nagrak, Pujasera Nyi Ageng Serang, and Mampang Prapatan Regional Hospital. The Bank DKI Social Responsibility Program (TJSL) is also distributed to the economic empowerment program for bank DKI retiree families worthy of assistance (PROBAHTERA). So, until June 2024, Bank DKI has distributed CSR programs for MSMEs with a value of IDR 338 million.