BNI Prints Net Profit of IDR 5.33 T in the First Quarter of 2024, This is the Support

JAKARTA – PT Bank Negara Indonesia (Persero) Tbk or BNI consistently recorded positive and sustainable financial performance growth in the early period of 2024. BNI succeeded in recording significant performance in developing the Micro, Small and Medium Enterprises (MSMEs) and consumer financing segments through its subsidiary PT Bank Hibank Indonesia (hibank) and BNI Finance as a new growth engine outside of blue chip corporate credit which continues to grow.

This is reflected in the credit growth of the Hibank MSME segment which reached 72% on an annual basis (Year on Year/YoY) and the growth of BNI Finance financing which increased 370% YoY, dominated by consumer financing. The credit performance of the two subsidiary companies contributed to consolidated credit growth. Meanwhile, BNI’s total credit during the first quarter of 2024 was recorded at IDR 695.16 trillion, growing 9.6% YoY compared to the same period last year which reached IDR 634.3 trillion.

With credit growth in the first quarter of 2024, BNI recorded interest income of IDR 15.87 trillion, growing 7.2% YoY from the previous IDR 14.8 trillion, driven by the healthy performance of the intermediation function. This strong growth was also supported by improvements in asset quality with gross Non-Performing Loans (NPL) falling from 2.8% in the first quarter of 2023 to 2.0% in the first quarter of 2024. This was also followed by credit costs which also decreased 40 basis points YoY to 1.0% in the first quarter of 2024.

BNI President Director Royke Tumilaar said that improving asset quality remains the focus, which is expected to encourage sustainable performance of the intermediation function amidst global geopolitical challenges, inflationary pressures and interest rates.

Apart from healthy business growth, the company was also able to increase non-interest income in the form of fee-based income and loan recovery in the first quarter of 2024 to reach IDR 5.1 trillion or grow 15.9% from the previous IDR 4.4 trillion. With this increase, the composition of non-interest income has contributed 35% of BNI’s total income in the first quarter of 2024, mainly coming from securities fee income and fees from the syndication business.

The combination of fundamental improvements, including increased fee-based income, operational efficiency, and continuously improving asset quality pushed BNI to achieve a net profit of IDR 5.33 trillion in the first quarter of 2024, or growth of 2% YoY. Royke also emphasized that the company continues to carry out the company’s transformation which has been running for three years so that it is able to provide a strong and healthy level of profitability in the long term.

“BNI’s fundamentals are getting healthier and stronger thanks to the transformation program which is a big step for us to continue to grow and develop and adapt to challenges at the national and global levels,” said Royke.

Royke said, BNI is on the right track to achieve its return on equity (ROE) profitability aspirations of up to 20% in 2028. This is based on stable and sustainable asset growth from the low-risk prospective segment as well as increasingly healthy asset quality.

“With this transformation program, we consistently increase human resource capabilities and optimize technology as crucial enablers. We believe this will continue to encourage increased business productivity, operational efficiency and the contribution of subsidiary companies,” said Royke.

BNI continues to make structural improvements through transformation that has been carried out since the beginning of 2020. Several things that BNI has done in the last four years include strengthening the capital structure, improving internal business processes, and strengthening the organizational structure which has had a significant impact on BNI’s business growth.