Q3 2023: Bank DKI Credit Distribution Reaches IDR 50 Trillion

Jakarta, 24 October 2023 – Bank DKI again recorded positive performance growth throughout the third quarter of 2023. As of September 2023, Bank DKI's credit distribution grew by 6.90% to IDR 49.96 trillion, from the previous IDR 46.73 trillion in September 2022. Bank DKI's Director of Finance & Strategy, Romy Wijayanto, through an official statement on Tuesday (24/10) said that credit and financing growth was in line with with a consistent business strategy in potential segments, with the main focus on increasing the portfolio in the MSME segment which is in line with the Company's vision and mission.

Credit growth was mainly driven by the retail segment which grew by 68.66% to IDR 1.66 trillion in September 2023, from IDR 986.30 billion in September 2022. Micro credit also showed good performance with growth of 42.86% to IDR 3.27 trillion in September 2023, from IDR 2.29 trillion in September 2022. The growth of the micro and retail segments has driven an increase in Bank DKI's MSME credit ratio. as of September 2023 it became 9.87% from previously recorded at 7.00% in September 2022. In addition, consumer credit recorded positive growth or 13.64% to IDR 21.58 trillion in September 2023, from IDR 18.99 trillion in September 2022.

On the other hand, the larger scale credit distribution strategy was carried out selectively by Bank DKI, such as syndicated credit which grew 10.91% to IDR 6.53 trillion in September 2023, from a position of IDR 5.89 trillion in September 2022. Meanwhile, distribution of the commercial credit segment (including term loans) in September 2023 reached IDR 15.54 trillion, while medium credit reached IDR 1.37 trillion in September 2023. Overall Specifically, financing for the sharia segment also grew 6.22% to IDR 7.70 trillion in September 2023, from the previous IDR 7.24 trillion in September 2022.

In its credit expansion strategy, the Company continues to prioritize effective risk management and strict supervision to ensure optimal asset quality. The Gross Non-Performing Loan (NPL) ratio is maintained at a low level of 1.83% with a Net NPL of 0.64% in September 2023, which indicates Bank DKI's credit quality is healthy. Bank DKI has also established adequate reserves with a Coverage Ratio at a conservative level reaching 219.96% in September 2023. "Efforts to control credit quality are also carried out through collection, restructuring and credit rescue efforts, in accordance with applicable regulations." said Romy.

As an effort to maintain healthy liquidity growth, Bank DKI succeeded in collecting growth in Third Party Funds to IDR 63.66 trillion in September 2023, or growth of 4.45% from the previous IDR 60.94 trillion in September 2022. In line with the growth in Third Party Funds, the Loan to Deposit Ratio (LDR) was also maintained at the level of 78.49% in September 2023. These various business growths encouraged total asset growth of 3.99% from the original amounting to IDR 75.24 trillion as of September 2022, to IDR 78.24 trillion as of September 2023.

Apart from that, until September 2023 Bank DKI was able to record a net profit of IDR 693.27 billion. The net profit achieved was supported by an increase in Bank DKI's interest income for the September 2023 period by 20.02% to IDR 3.97 trillion, from IDR 3.31 trillion in the same period the previous year. However, along with the increase in the Fed interest rate and the BI 7-Day Repo Rate, this also influenced the increase in Bank DKI's interest expense which was recorded at IDR 1.88 trillion in September 2023, from the previous IDR 1.11 trillion in September 2022.

The performance of other important financial performance ratios also showed consistent and maintained improvement, with ROE of 9.44%, ROA of 1.51% and Operating Expenses to Operating Income (BOPO) stable at the level of 79.53%.

"Bank DKI also continues to maintain the Bank's Health Level (TKB) in the Healthy Composite Rating. As per the results of the evaluation and assessment from the Financial Services Authority (OJK), as of June 2023, Bank DKI has obtained Composite Rating Category 2 (Healthy)." explained Romy.

Contribution to the DKI Jakarta Provincial Government

Bank DKI Corporate Secretary, Arie Rinaldi added, as a Regional Development Bank (BPD) belonging to the DKI Jakarta Provincial Government (Pemprov), Bank DKI not only carries out its role as a business entity but also the function of synergy connector between BUMDs, facilitator of growth and equalization of the community's economy. Bank DKI's support for the DKI Provincial Government is realized, including through the electronification of budget management of the DKI Jakarta Provincial Government's Regional Work Units (SKPD), through Cash Management System (CMS) services, distribution and management of DKI Jakarta Provincial Government social assistance accounts, and support for the transformation of DKI Jakarta regional treasury services through the Bank Account Management Information System (siMerak) application which was just launched on (16/10). For its digitalization support for the DKI Jakarta Provincial Government, Bank DKI was named by the Regional Digitalization Acceleration and Expansion Task Force (P2DD Task Force) as the Best Regional Development Bank (BPD) in Supporting the Acceleration and Expansion of Regional Digitalization in 2023.

Not only that, Bank DKI was also awarded by the Ministry of Home Affairs (Kemendagri) as one of the best Regional Development Banks (BPD) for its contribution to improving public services through its products and services, for example JakCard as a prepaid smart card for various integrated modes of public transportation in Jakarta. Apart from that, Bank DKI also facilitates the payment of taxes and levies, payment of electricity, water and telephone bills through features in the JakOne Mobile application, as well as motor vehicle taxes using the Samsat Online Delivery (Si-Ondel) application which is also connected to the JakOne Mobile application.