Bank OCBC NISP, which just celebrated its 68th years of service, once again proofed its capability to survive during the economic turbulence and un-conducive situation by continuously being prudent as reflected not only on its encouraging financial results, but especially on its healthy financial ratios.  Bank OCBC NISP has been able to maintain its asset quality while at the same time able to book IDR 73.2 billion net income for the first quarter 2009. This figure shows a satisfactory increase of 35% compare to the same period in 2008, which amounting IDR 54.3 billion.  The increase was a combination of successful growth of net interest income by 32% from IDR 302.4 billion at the end of March 2008 to IDR 398.8 billion at the end of March 2009 and 35% increase in non interest income from IDR 87.8 billion to IDR 118.9 billion.  The increase in non interest income was mainly driven by the gain  on foreign exchange transactions. 

Amidst the liquidity problem facing by all economic sectors currently, Bank OCBC NISP, in fact, received more trust from its customer in the form of the third party deposit which grew by 32.5% from IDR 20.1 trillion as of 31 March 2008 to IDR 27.5 trillion at the end of March 2009.  The growth was mainly driven by the increase in time deposits by 41.9% to IDR 15.5 trillion as of 31 March 2009.  The growth of time deposit, however, has decreased the portion of low cost funds, which was 47.2% at the end of March 2008 to be 43.44% from total third party deposits at the end of March 2009. President Director Bank OCBC NISP, Parwati Surjaudaja explains, “We thank our customers who put their high trust to the Bank which was reflected on 32.5% increase in third party deposits. This has encouraged us to serve our customers even better."

The effect of global economic crisis has endured the real sector during the first quarter 2009. This condition has also influenced the Bank’s loan disbursement which grew only 3.1%, from IDR 18.9 trillion as of 31 March 2008 to IDR 19.5 trillion as of 31 March 2009.  The prudential banking practice, which has continuously been implemented bank wide, has brought Bank OCBC NISP’s net NPL ratio on the manageable level of 2.21% or far below BI’s requirement 5%.

The relatively significant increase in third party deposits has caused the decrease in Loan to Deposits (LDR) Ratio to 71.02% at the end of March 2009 compare to 91.29% at the end of March 2008. “We consider the current LDR is an ideal level at the moment, as we have to be more cautious and continuously implement the prudential banking under current situation”, Parwati added.

To balance the loan distribution, Bank OCBC NISP continuously monitors its target market industries. Based on business sector, loans were absorbed by manufacturing (24.5 %), trading (23.3%), services (17.8%), consumer (29.6%) and others (4.8%). Meanwhile, based on the usage, loans were disbursed to working capital (43.7%), investment (26.7%), and consumer loans (29.6%).

Some of the Bank’s key financial ratios also show improvement, such as Capital Adequacy Ratio (CAR) 18.58%, Net Interest Margin (NIM) 5.04%, Return On Equity (ROE) 8.18%, and Return On Assets (ROA) 1.17%. Other ratio which shows satisfactory improvement is Cost to Income Ratio which decreases from 77.77% as of 31 March 2008 to 64.62% as of 31 March 2009.

Profile of OCBC NISP

Bank OCBC NISP, previously named Bank NISP, was established in 1941 in Bandung. Currently the Bank has a network of 369 offices and 537 ATMs in 62 cities in Indonesia which are part of network of more than 22,000 ATMs (including ATM Bersama, BCA, OCBC Bank-Singapore and BankCard-Malaysia); it is well supported by 5,487 employees. In maintaining its business, which is focused on the SME and consumer sectors, Bank OCBC NISP has received wide-ranging support from OCBC Bank, its controlling shareholder (74.73%). Another shareholder which also has actively supported the Bank is IFC-World Bank Group, which since 1997 has supported the Bank in different forms, including capital, long term loan, technical assistance, and others.

Bank OCBC NISP is one of the highest rated banks in Indonesia, with AA+(idn) for National Long Term and BB(idn) for Long-Term Foreign and Local Currency from FitchRatings and idAA- for Corporate Rating and idA+ for Subordinated Bond from PEFINDO (affiliated of Standard & Poor’s).

Various acknowledgements from international and local institutions were received by Bank OCBC NISP. Recently, the Bank has been awarded the Retail Bank of The Year – 2009 in Asian Banking & Finance Retail Banking Award held by Asian Banking & Finance Magazine, Singapore.    Mean while,   during  2008  Bank  OCBC  NISP  categorized  as “Trusted Company"(Perusahaan Terpercaya) in the Corporate Governance Perception Index (CGPI) Award, Best FX Prime Booking Services and Best Single-Bank Electronic Trading Platform from Asiamoney Magazine – Hongkong, Annual Report Award (2nd place) Private Listed Financial category, and 2 awards from InfoBank Magazine - Golden Trophy Award 2008 for “Excellence Performance for 5 Consecutive Years (2003-2007) and Banking Service Excellence Award 2008.

Profile of Controlling Shareholder: OCBC Bank Singapore
OCBC Bank is Singapore’s longest established bank with group assets of S$181.4 billion (as of December 31, 2008). Its full spectrum of specialist financial services solutions is delivered through a network of more than 470 branches and representative offices in 15 countries and territories, including Singapore, Malaysia, Indonesia, China, Hong Kong SAR, Brunei, Japan, Australia, UK and USA. Its insurance subsidiary, Great Eastern Holdings, is the largest insurance group in Singapore and Malaysia in terms of assets and market share, and its asset management subsidiary, Lion Capital Investors, is one of the largest asset management companies in Southeast Asia.

OCBC Bank is of one of the highest credit ratings among the banks in Asia, with long-term ratings of Aa1 from Moody’s, AA- from Fitch, and A+ from Standard and Poor’s. During the first quarter 2009, OCBC Bank Singapore has received much recognition, such as Best Retail Bank and Excellence in Customer Advocacy in The Asian Banker Excellence in Retail Financial Service Award 2009 held by The Asian Banker Magazine, Singapore. It also hold the category as one of the 50 safest bank in the world as announced by Global Finance Magazine – New York. Meanwhile, during 2008, OCBC Bank Singapore received “Best Foreign Cash Management Bank"in Asiamoney’s Poll Among Small, Medium & Large Corporate in Malaysia 2008, and Ranked 1 in Top 5 Regional Banks Category: Asia Risk End User Survey 2008, and Best Cash Management Bank Country Awards from Finance Asia Magazine 2008. For additional information please visit www.ocbc.com.

For further information, please contact:
Public Relations Bank OCBC NISP
Email : pr@ocbcnisp.com