BNI's Net Profit Reaches Rp15.75 Trillion, Driven by Increased Credit in Q3 2023

PT Bank Negara Indonesia Tbk (BNI) reported net profit attributable to the parent entity of Rp15.75 trillion in the third quarter of 2023.

This net profit grew by 15.05% year-on-year (yoy) compared to Rp13.69 trillion in the same period of the previous year.

In addition, net interest income reached Rp31.13 trillion in the third quarter of 2023. This was a slight increase of 3.10% (yoy) from Rp30.19 trillion previously.

Citing *Katadata*, BNI President Director Royke Tumilaar said that this profit achievement was supported by the performance of credit, which accelerated during the nine months of 2023.

This credit acceleration led BNI to record credit growth of 7.8% (yoy) to Rp671.4 trillion by September 2023. Credit growth was driven by expansion in the low-risk segment, namely blue-chip corporations, both private and SOEs, consumer credit, and subsidiaries.

"As a result of the acceleration of credit in the low-risk segment, asset quality continues to improve, as seen in the decrease in the Non-Performing Loan (NPL) ratio and the Loan at Risk (LAR) ratio," said Royke in a press conference on the third-quarter 2023 performance on Tuesday (31/10).

Thus, the NPL ratio as of September was at 2.3%, an improvement compared to 3% in the same period last year. The LAR was at 14.4%, an improvement compared to 19.3% in September 2022.

Total assets of the issuer with the code BBNI were recorded at Rp1.009 trillion in the third quarter of 2023. This figure actually decreased by almost 2% (yoy) from the previous Rp1.029 trillion.

Nevertheless, Royke stated that the company's asset quality continues to improve, leading the company to reduce the formation of the Allowance for Credit Losses (ACL). This improved the cost of credit from 2% in September 2022 to 1.4% in September of this year.

Furthermore, amid rising global economic risks, BNI is cautious in building liquidity. As of September 2023, Third-Party Funds (TPF) grew by 9.1% year-on-year, reaching Rp747.6 trillion.

"The trend of increasing benchmark interest rates, which affects the cost of funds (COF), is indeed experiencing an upward trend, and this phenomenon is occurring across the banking industry," he said.

However, amidst these conditions, the company's COF is currently around 2%, structurally lower than before the pandemic, which was above 3%.

The Capital Adequacy Ratio (CAR) continues to increase from 18.9% in September 2022 to 21.9% as of September 2023. This figure is well above the minimum capital requirement of 13.8%.