In 2020, Bank DKI will focus on maintaining asset quality
Jakarta, April 28 2021Published: April 28, 2021
Jakarta - In the midst of the Covid-19 Pandemic crisis, Bank DKI was still able to record good performance and continue to grow with quite strong resilience. Various rapid policies implemented as a response to the Covid-19 pandemic have shown positive results in terms of the company's health and business levels. This was conveyed by the Main Director of Bank DKI, Zainuddin Mappa in his written statement in Jakarta (28/4).
Bank DKI President Director, Zainuddin Mappa said that the Covid-19 pandemic put quite heavy pressure on banks, especially on the credit risk side. Therefore, Bank DKI implements various initiatives and effective risk management to maintain asset and business quality. Credit and financing distribution in 2020 was also carried out very selectively and paying attention to the principle of prudence. As of December 2020, the Gross NPL ratio was recorded at 2.98% and was below the national banking industry NPL average in 2020 of 3.06%. Apart from that, to maintain business continuity going forward, Bank DKI has also booked sufficient reserves to anticipate a decline in credit quality as a result of the Covid-19 pandemic.
As demand for credit has not yet recovered as a result of the Covid-19 pandemic throughout 2020, this has put pressure on the growth of credit and financing distribution, which contracted by minus 4.71% (yoy) to IDR 35.66 trillion. The decline in credit throughout 2020 was due to Bank DKI reducing the credit exposure given to banks, which previously reached Rp. 3 trillion in 2019 to only Rp. 575 billion in 2020. Meanwhile, credit given to the real sector continued to grow by 1.95% from Rp. 34.40 trillion in 2019 to Rp. 35.08 trillion in 2020. "Bank DKI maintains the quality of credit growth by focusing on increasing credit in the real sector, "with the hope of being able to participate in encouraging economic growth, especially the real sector so that it can continue to grow during the pandemic," said Zainuddin Mappa.
Meanwhile, Bank DKI's total assets recorded quite good growth of IDR 63.04 trillion, growing 13.39% compared to 2019 of IDR 55.60 trillion. The growth in assets was mainly driven by growth in TPF, "Third Party Funds increased by 31.16%, from previously recorded at IDR 37.30 trillion to IDR 48.92 trillion in 2020," said Zainuddin Mappa. Bank DKI's total savings as of December 2020 were recorded at IDR 11.07 trillion, growing 5.04% compared to 2019 of IDR 10.54 trillion. Meanwhile, current accounts as of December 2020 were recorded at IDR 11.17 trillion, growing by 46.84% compared to 2019 of IDR 7.61 trillion, while deposits were recorded at IDR 26.69 trillion, growing 39.30% compared to 2019 of IDR 19.14 trillion.
Based on Financial Ratio data, as of December 2020, Bank DKI's Capital Adequacy Ratio (CAR) was recorded at 28.05%, an increase of 2.27% from the previous 25.78%. In addition, the ratio of Operating Expenses to Operating Income (BOPO) as of December 2020 was recorded at 81.99%, an increase of 5.98% from 2019 of 76.01%. This increase is in line with the increase in the Allowance for Impairment Losses (CKPN) expense in the context of implementing PSAK 71 in 2020. The Net Interest Margin (NIM) ratio at the end of 2020 was recorded at 5.26%, tending to decrease compared to 2019 which was 5.44% due to the slowdown in credit growth that occurred throughout 2020.
In 2020, Bank DKI's net profit experienced a contraction in line with the weakening economic conditions due to the COVID-19 pandemic and quite aggressive provision for reserves. Despite this, Bank DKI still has good resilience in posting a net profit which was still recorded as positive in 2020 amounting to IDR 580.6 billion. "Various initiatives in efforts to handle the Covid-19 pandemic while still prioritizing quality growth are good fundamentals for the company to face future challenges," concluded Zainuddin Mappa.