Jakarta - PT Bank Internasional Indonesia Tbk (“BII” or the “Bank”) today announced a consolidated net profit of Rp669 billion for the full year ended 31 December 2011, a 45% increase from the Rp461 billion in the previous corresponding period ended 31 December 2010. The Bank’s profit before tax reached Rp985 billion, 25% up compared to the previous corresponding period. The improved performance was mainly driven by solid growth across the Bank’s core businesses, improvement of asset quality, as well as from overall operational improvements.
Rahardja Alimhamzah, BII’s Acting President Director, said “The improved performance demonstrates that our efforts in regaining our growth momentum has resulted in stronger bottom line. I am confident that our sustainable growth plan across all business segments will further improve our performance as we continue to capture higher market share while ensuring good asset quality”.
The Bank continued to book strong loan growth throughout 2011. It recorded a 25% consolidated loan growth from Rp53.6 trillion in December 2010 to Rp67.2 trillion in December 2011. Corporate loans contributed the largest growth of 42% from Rp12.2 trillion in December 2010 to Rp17.3 trillion in December 2011, followed by SME & Commercial and Consumer loans which increased by 27% and 15% respectively compared to the same corresponding period in 2010. Consumer loans accounted for 38% of total loans, while SME & Commercial loans and Corporate loans contributed 36% and 26% respectively.
The Bank’s total asset as of 31 December 2011 increased 26% to Rp94.9 trillion from Rp75.2 trillion as of 31 December 2010.
Total deposits from customers increased by 17% to Rp70.3 trillion as of 31 December 2011, up from Rp59.9 trillion recorded on 31 December 2010. The Bank is pleased to report that its Savings accounts and current acccounts recorded higher growth compared to time deposits. Savings accounts grew 28% to Rp17.6 trillion as of 31 December 2011 from Rp13.8 trillion as of 31 December 2010, followed by Current Accounts which grew 21% to Rp12.4 trillion from Rp10.3 trillion a year earlier. Time deposits increased 13% to Rp40.3 trillion from Rp35.8 trillion. This has increased our Current Account and Savings Account (CASA) ratio to improve from 40% as of 31 December 2010 to 43% as of 31 December 2011.
“In addition to continuously introducing innovative programs to further improve funding composition, the Bank also continued to expand its footprints and electronic channels throughout the year to enlarge its market reach. In 2011, the Bank opened 21 new branches, launched mobile banking, and re-launched its internet banking using latest platform. The Bank has also developed infrastructures for mobile branches (“kas keliling”) to introduce branches without borders concept. This mobile branches will be staffed with customer service representatives and with onboard ATMs which are able to serve multiple small communities located at areas where our branch is not present. The Bank’s network expansion, innovative programs, combined with proven service excellence is expected to significantly contribute to further growth in customer deposits”.
“The issuance of a Rp2 trillion senior Bond (“Obligasi Berkelanjutan I Bank BII Tahap I Tahun 2011”) has also contributed to the long term funding composition to support our increasing business growth. The senior Bonds was issued in December 2011 and was rated AAA (idn) by Fitch Ratings Indonesia and (id)AA+ by Pemeringkat Efek Indonesia. The issuance of the senior bond has improved our maturity mismatch as it provides long term funding profile. This will also give us sufficient time to further improve our customer deposits profile.” added Rahardja.
The consolidated loan to deposit ratio (LDR) remained at our expected level of 95.1% as of 31 December 2011. The LDR for Bank only (without subsidiaries) remains at healthy level at 88.9%. The Bank’s modified consolidated LDR which includes senior bond, long term borrowings, and customer deposits is at 81.2% as of 31 December 2011.
The Bank’s growth across its business segments was accompanied by improved asset quality. BII’s gross non performing loans (gross NPL) level dropped significantly to below 3%; reduced to 2.14% as of December 2011 from 3.09% as of December 2010 and net NPL improved to 1.10% from 1.74%. The improvement in asset quality was achieved mainly through the Bank’s prudent and disciplined banking practices as reflected by continuous effort in strengthening its risk management and credit processing as well as closer monitoring of existing borrowers.
Loan loss provision expense as of 31 December 2011 was 4% lower compared to the corresponding period in the previous year to Rp1,187 billion in December 2011 from Rp1,238 billion in December 2010 despite the 25% growth in our loans.
The Bank’s Net Interest Margin (NIM) decreased to 5.22% in December 2011 from 5.86% in the previous corresponding period, in line with the rest of the banking industry. The Bank’s pricing strategy is kept in line with the overall plans of Bank Indonesia to support the economic growth in Indonesia.
Other operating revenues (fee based income) as of 31 December 2011 increased by 12% to Rp2,328 billion compared with Rp2,077 billion in the same period last year, contributing 37% of the Bank’s total operating income. The Bank’s total fee based income was mainly generated by increases in fees from corporate deals, treasury transactions, credit card usage, trade finance, remittances, and other services.
Total overhead costs increased 18% from Rp3,699 billion to Rp4,353 billion reflecting the Bank’s aggressive network expansion as well as investments in both human capital and IT infrastructure throughout the year. As of 31 December 2011, the Bank has 351 offices (including Syariah and overseas branches) and 1,152 ATMS including 65 CDMS. The Bank is fully committed to continual investment in its network and infrastructure in order to build a strong foundation for growth and be able to reap the benefits in 2015 and beyond.
The Capital Adequacy Ratio (CAR) with credit, market, and operational risks was at 11.83% as of December 2011 with Tier 1 Capital of Rp7.2 trillion and Tier 2 Capital of Rp2.2 trillion. Tier 2 capital includes the Rp1.5 trillion Subordinated Bond issued in April 2011. The Bank has also received funds of Rp 500 billion Subordinated Bond in December 2011. This is not taken into Tier 2 capital calculation as of 31 December, however approval from Bank Indonesia to include Rp 500 billion Subordinated Bond into Tier 2 capital has been received by the Bank on 31 January 2012.
Maybank Chairman and President Commissioner of BII, Tan Sri Dato’ Megat Zaharuddin bin Megat Mohd Nor added, “We are pleased with the improving performance and increasing growth in business recorded in the year 2011. The sound fundamentals we have laid combined with strong commitment from Maybank Group will augur well for BII as we seek to capture an even larger slice of the market. In doing this, we will always be in the heart of the communities around our operations, providing them with products and services which are of value and fair prices, as part the Group’s mission to humanizing financial services across Asia.”