This is Bank DKI's strategy to maintain credit quality amidst the Covid-19 pandemic

Published: May 25, 2021

Jakarta – In line with the increasing demand for credit as a sign that the economy is starting to recover from the Covid-19 pandemic, Bank DKI in the first quarter of 2021, 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).

In the first quarter of 2021, Bank DKI's Gross NPL Ratio was still under control at the level of 3.19%, a slight increase of 0.10% compared to the first quarter of 2020 of 3.09%. The increase in Bank DKI's NPL ratio is still below the increase in the banking industry's NPL ratio which was recorded at 0.40%, from 2.77% in the first quarter of 2020 to 3.17% in the first quarter of 2021. Meanwhile, Bank DKI's Net NPL in the first quarter of 2021 was recorded at 0.62% and is below the national banking industry's Net NPL ratio 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 for banks 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 certainly provides flexibility for the banking industry in managing credit risk better. Said Harry.

Herry further said that Bank DKI had made a number of efforts to improve the problem credit ratio through intensive credit collection, taking over collateral, auctioning credit collateral, credit restructuring through the National Economic Recovery (PEN) program, and write-offs.

Herry also said that apart from credit growth, other financial performance indicators continued to show positive performance as a sign that the various rapid policies implemented as Bank DKI's response to the Covid-19 pandemic showed positive results from the company's health and business levels.

Bank DKI's Third Party Funds increased by 28.42% (yoy) to IDR 42.98 trillion in the first quarter of 2021. The growth in DPK was mainly driven by demand deposit growth which increased yoy by 74.87%, so that the cheap funds ratio (CASA Ratio) also improved from the previous 43.54% to 47.56%. These various performance growths have driven the growth of Bank DKI's total assets by 20.42%, from IDR 46.23 trillion to IDR 55.68 trillion as of March 2021. Along with business growth, Bank DKI's net profit has also increased, as of March 2021 it was recorded at IDR 191.60 billion, growing 4.16% compared to the same period the previous year.