Three State-Owned Banks' Profits Grow Over 20 Percent

PT Bank Mandiri Persero Tbk (BMRI) released its third-quarter 2017 financial performance on Tuesday (October 24th). The bank, boasting the largest assets in Indonesia, recorded a net profit of Rp 15.07 trillion from January to September 2017, representing a 25.44 percent year-on-year (YoY) growth. As a result, the three state-owned banks that have released their Q3 2017 financial reports all recorded profit growth exceeding 20 percent.

Previously, PT Bank Negara Indonesia Persero Tbk (BBNI) reported a 31.62 percent YoY increase in net profit to Rp 10.16 trillion during the first nine months of 2017. Similarly, PT Bank Tabungan Negara Persero Tbk (BBTN) achieved a 23.68 percent YoY increase in net profit, reaching Rp 2.01 trillion.

The downward trend in interest rates caused all three state-owned banks to experience a decline in their Net Interest Margin (NIM) in the third quarter of 2017 compared to the same quarter of the previous year (YoY). Bank Mandiri's NIM decreased to 5.86 percent from 6.54 percent. Bank BNI's NIM also shrank to 5.52 percent from 6.22 percent, and Bank BTN's NIM fell to 4.49 percent from 4.59 percent. Meanwhile, the NIM for conventional commercial banks in August 2017 stood at 5.35 percent.