Net profit of BTPN Syariah reaches Rp1 trillion in September 2023, a 24% decrease.

PT Bank BTPN Syariah Tbk (BTPS) reported a net profit of Rp1 trillion (approximately US$66 million) by September 2023 (Q3 2023). This represents a 24% year-on-year (yoy) decrease compared to the Rp1.32 trillion (approximately US$87 million) net profit achieved in Q3 2022.

Revenue after profit sharing reached Rp3.94 trillion (approximately US$260 million) in Q3 2023, up from Rp3.70 trillion (approximately US$244 million) in Q3 2022.

According to *Katadata*, Fachmy Achmad, BTPN Syariah's Finance Director, attributed the decline in net profit to an 89% year-on-year increase in provisioning costs.

"The increased provisioning is in line with the still-challenging conditions in the segment we serve (ultra-micro)," Fachmy told the media in Jakarta on Wednesday, October 18, 2023.

By September 2023, BTPN Syariah had disbursed Rp11.93 trillion (approximately US$790 million) in financing, a 5% increase compared to Rp11.34 trillion (approximately US$750 million) in the same period the previous year.

Total assets for BTPN Syariah reached Rp21.96 trillion (approximately US$1.45 billion) by September 2023, a 7% increase from Rp20.57 trillion (approximately US$1.36 billion) in September 2022.

Fachmy added that these challenging conditions impacted asset quality, as evidenced by a rise in the gross Non-Performing Financing (NPF) ratio to 3%, up from 2.4% in the third quarter of the previous year.

Meanwhile, the net NPF ratio increased to 0.7% from 0.1%. However, BTPS maintained a strong capital adequacy ratio at 49.7% by September this year, with a return on assets (RoA) of 7.8%.

"We strive to maintain all ratios strongly above the industry average," he said.