Bank Jatim aggressively disbursed loans, Growth Soars 12.61% Above Banking Average
Date: 30 october 2023Categories :
JAKARTA, OCTOBER 30, 2023. Towards the end of 2023, the performance of PT Bank Pembangunan Daerah Jawa Timur Tbk. or bankjatim is getting more solid. This is evidenced by the achievement of bankjatim's performance in the third quarter continues to show positive numbers. Seen from the exposure of analyst meetings that have been carried out by bankjatim in the context of exposure to the performance of the third quarter of 2023 on Monday (30/10). Located at the Alila SCBD Hotel Jakarta, the analyst meeting was attended directly by bankjatim directors, namely President Director Busrul Iman along with Director of Finance, Treasury and Global Services Edi Masrianto and Director of Micro, Retail and Medium R. Arief Wicaksono.
Busrul explained, until the ninth month in 2023, through some implementation of the strategy launched by the company as a whole relatively meet the target. Among others, assets grew by 8.69% (YoY) or IDR 107 trillion with contributions from an increase in productive assets, namely ownership of securities which rose 10.29% (YoY), lending grew 12.61% (YoY) and management of the company's productive assets resulted in interest income which grew 3.8% (YoY) with a net profit in September 2023 of IDR 1.09 trillion.
Busrul continued, in accordance with the company's vision and mission in 2023, which is to become BPD No.1 in Indonesia and become a benchmark for peer groups, then in Quarter 3 2023 bankjatim massively continues to develop business outside the captive market that has been controlled so far by making the captive market as an entry point to enter new market areas. For example, aggressively channeling productive credit, extracting low-cost funds for the upper segment and penetrating foreign exchange services. "We are also developing digitalization for all aspects of both business processes and the provision of digital products and services, foreign exchange services to provide a new banking experience for existing customers and to reach new market areas," he said.
Next, in terms of credit, during the third quarter of 2023, bankjatim managed to record a significant increase in credit growth of 12.61% (YoY). The growth was above the average growth of the banking industry sector as of September at 8.96% (YoY). Bankjatim's highest credit growth occurred in the productive sector (commercial and SME) by 25.44% (YoY) and the consumer sector by 4.74% (YoY).
"We think access to financing for businesses must be opened as wide as possible in order to create new jobs. The growth of lending is a reflection of the running economy and signifies an increase in demand for goods and services from the public," Busrul said.
The credit growth that has been achieved by bankjatim makes the ratio of financing to fund management (LDR) the company is getting better. LDR ratio in the third quarter of 2022 only amounted to 55.40%, then rose to 61.49% in the third quarter of this year. Bankjatim's credit distribution was also followed by an improvement in loan quality. It can be seen from the Gross Non Performing Loan (NPL) ratio bankjatim sloping. Namely at 3.72% in the third quarter of 2022 to 2.74% in the third quarter of 2023. That means bankjatim's credit quality is getting healthier and is a sign of recovery from several economic sectors.
Busrul said, there are several strategies carried out by the company and used to enter the new business. Among others, through the provision of products and services in accordance with the needs of the general public. Then on the transactional side, bankjatim provides services for the segment of society with managed funds above the average which of course requires special treatment, such as Jatim Prioritas Service. This service is provided for customers with managed funds of at least Rp 250 million for a certain period. "There are many advantages, such as competitive deposit interest rates, discount offers from cooperating merchants, and special / privilege services available at several business outlets and branches of the company," he said.
Not only that, bankjatim also continues to develop digital services to facilitate customers and prospective customers in transactions. In collaboration with distribution partners appointed by the government (Ministry of Finance), bankjatim has launched the JConnect Invest application. The goal is to make it easier for customers to invest in State Retail Securities.
In addition, bankjatim also provides online account opening services using JConnect PRO which allows prospective customers not to come to the office. The service was able to make a positive contribution both in increasing outstanding Third Party Funds, utilization of JConnect which is the Company's digital brand, increasing the Company's Numbers of Account (NoA), and increasing fee-based income. "Of all the strategies implemented is our way to play in the new market area and proven to be able to increase the number of NoA from the Company's customers by 10.54%" said Busrul.
Not to forget, bankjatim has also developed digitalization in the Local Government ecosystem through Electronic Local Government Transaction (ETPD) services. In collaboration with every city / regency in East Java and the Provincial Government, ETPD can make it easier for people to deal with local governments related to financial transactions by using bankjatim services from upstream to downstream aspects. "We hope that the community and stakeholders will continue to support bankjatim for business acceleration that not only grows organically, but also non-organically," he concluded.