BII Nine Months Net Profit Surges 19% to Exceed Rp 1 trillion for First Time
Strong Loan and Deposit Growth amidst the Challenging Market
30 September 2013 Consolidated Financial Highlights
Jakarta, 28 October 2013
PT Bank Internasional Indonesia Tbk (“BII” or the “Bank”) today announced a profit after tax and minority interest (PATAMI) of Rp1.1 trillion for the nine months ended 30 September 2013, a 19% increase from the same period a year earlier. This is the first time it has passed the Rp 1 trillion mark for a nine months period. The Bank’s profit before tax increased by 22% to Rp1.6 trillion compared to Rp1.3 trillion in the previous corresponding period.
The improved performance was achieved on the back of solid growth across the Bank’s core businesses, strong deposit growth, significant profitability improvement of the Bank’s subsidiaries, and continuing overall operational improvements.
Customer Deposits saw strong increase of 21% during the first nine months 2013 to Rp96.5 trillion from Rp79.8 trillion in the first nine months 2012 with strongest growth recorded in savings deposits of 35%. Current accounts grew 21% while time deposits increased 16%. The increase in low cost funding was attributable to the enhancement of branch productivity as our sales force optimized cross sell opportunities and leveraged our existing clientele base in addition to acquiring new customers. The Bank’s cash management and pay roll services have also contributed to the growth of low cost funding for the nine months 2013.
Loans grew 21% during as of September 2013 to Rp91.7 trillion from Rp75.9 trillion as of September 2012 despite the challenging market condition. Loans from Business Banking grew the fastest from Rp 24.6 trillion to Rp 32.0 trillion or increased by 30%; SME in particular grew by 33%. Retail loans rose 24% from Rp27.0 trillion to Rp33.8 trillion. Global Banking loans increased 7% from Rp24.3 trillion to Rp 25.9 as the Bank re-adjusted its corporate portfolio in the first semester consistent with its proactive credit risk management activities.
Retail Banking performance has turned around as reflected by the increase of its profit from Rp 48 billion for the nine months 2012 to Rp 121 billion for the nine months 2013. The performance of the Bank’s subsidiaries, PT Wahana Ottomitra Multiartha Tbk (WOM) and BII Finance, which are under Retail Banking management have also significantly improved and contributed to the overall performance of the Bank.
BII Finance’s total four wheel financing (consolidated) rose 49.7% from Rp5.8 trillion in Sept 2012 to Rp8.6 trillion in September 2013. Meanwhile, WOM’s total two wheel financing (consolidated) in the first nine month 2013 stood at Rp8.6 trillion compared to Rp9.3 trillion in the first ninth months 2012 due to the Bank’s decision to rebalance its four wheel and two wheel portfolio in the first half of 2013.
The consolidated loan to deposit ratio (LDR) improved from 94.26% in September 2012 to 93.09% as of end of September 2013. LDR at the Bank (excluding subsidiaries) remained at a healthy level of 86.42%, while the Bank’s modified consolidated LDR which includes senior bond, long term borrowings and customer deposits stood at 80.95% as of 30 September 2013.
BII Shariah Banking has shown encouraging results since the implementation of its revamped business model. Total Shariah financing grew from Rp1.1 trillion to Rp3.0 trillion contributing 3.2% of the Bank’s total loan from only 1.4% in September 2012. Net profit of BII Shariah Banking also grew significantly from Rp 18.4 billion in September 2012 to Rp 157.1 billion in September 2013.
Other key drivers which supported the Bank’s improved performance during the year were as follows:
Comments by BII’s Acting President Director, Thila Nadason:
"Our outstanding results for the first nine months 2013 reflect the continuous improvement that we have made since we began our transformation journey with various work streams and projects including IMPACT transformation program. These projects which commenced in late 2011 have started showing positive results in 2013. Going forward we shall ensure that we stay the course to achieve our aspirations. Our PATAMI has exceeded Rp 1 trillion for the first nine months 2013; this is the highest nine months PATAMI in BII’s history.
“Our approach in growing responsibly and profitably combined with adopting pricing discipline for loan and deposits, the constant monitoring and controls on the quality of loan portfolio as well as implementation of our strategic cost management have helped us sustain profit growth over the nine months. We will continue our efforts to ensure that we optimize the benefits of all our investments and improve the overall efficiency in future”.
Comments from President Commissioner BII and Chairman of Maybank Group, Tan Sri Dato’ Megat Zaharuddin bin Megat Mohd Nor:
"I am pleased that BII's growth momentum remains strong. With the re-opening of our Mumbai branch, we expect new business opportunities leveraging on Maybank Group-wide networks between India and ASEAN.”
“I also envisage our prospects for the remainder of the year to remain bright given our focus on activities in key areas of the Indonesian economy"