Continue to #MelajuJauh, Bank OCBC NISP Maintains Positive Performance Amidst the Economic Slowdown

4 Nov 2020

  • Pre-Provision Operating Profit grew 17% yoy
  • In line with the Bank's strategy, CASA increased by 28% yoy and brought positive impact on Bank OCBC NISP's Total Deposits and Total Assets, which grew 16% and 13% yoy, respectively

Jakarta, November 4th 2020 - Bank OCBC NISP maintained its positive, sustainable performance amidst the global and national economic slowdown. Until September 2020, Bank OCBC NISP recorded PreProvision Operating Profit growth of 17% yoy, which grew to Rp3.96 T from Rp3.39 T in the nine months period of 2019. This growth was supported by operating income that grew 10% yoy while operating expenses grew 1% yoy.

"Bank OCBC NISP's capability to continue growing sustainably is supported by the implementation of prudent principle in carrying out the Bank's strategic focus in increasing low-cost funding (CASA), intensifying digital acceleration and consistent in maintaining credit quality. This positive performance becomes our fundamental pillars to continue providing support to all customers, both individuals and corporations to achieve their financial aspirations, as well as contributes to support Indonesia’s economy during this challenging situation," said Parwati Surjaudaja, President Director of Bank OCBC NISP.

The success in increasing CASA at the end of September 2020 is reflected with growth of 28% yoy. This is supported by digital services that are continuously developed through both the Bank’s Internet Banking and mobile banking application – ONe Mobile and Velocity@OCBCNISP. Besides CASA's consistent growth, time deposits also grew by 9% yoy. Thus, overall, Bank OCBC NISP's Total Deposits grew by 16% yoy to Rp153 T from Rp132 T in the same period of 2019.

Bank OCBC NISP continues to accelerate digitization, which is supported by digital literacy education on safe and convenient use of digital transactions, so it leads to positive impacts. Innovations through internet banking services, as well as ONe Mobile for individual customers and Velocity@OCBCNISP for corporate customers continue to grow. In the past of 9-month period which ended on September 30th, 2020, the number of transactions through ONe Mobile increased by 63% yoy, while the value of transactions and users grew by 114% yoy and 46% yoy, respectively. Not only individual customers, the growth in the number of transactions from corporate customers also reached 55% yoy, while the number of Velocity@OCBCNISP users increased 21% yoy.

The acceleration of digitization has also provided positive impact on the growth of operating expenses which is lower than the growth in operating income. Operating expenses grew 1% yoy to Rp2.8 T, while operating income grew 10% yoy to Rp6.8 T. Furthermore, with business conditions that have not run normally due to the pandemic, the national economy is also under pressure. The pressure on macroeconomic also impacted allowance for impairment losses on financial assets-net, thus the Bank's Net Profit contracted to Rp1.9 T by the end of September 2020.

The Bank will continue various initiatives that have been well executed to maintain sustainable performance. Apart from the initiatives to increase CASA and accelerate digitization, the Bank will also continue to optimize operating expenses to increase productivity and efficiency, as well as prudent loan distribution and management to maintain healthy asset quality.

Bank OCBC NISP's consistency in maintaining credit quality is reflected in the NPL (non-performing loan) Net ratio of 0.9% and NPL-Gross of 1.8%, which is below the average NPL of the banking industry. Amidst the economic slowdown, Bank OCBC NISP continues to carry out its intermediary function based on prudent principle. Until end of September 2020, the amount of credit was recorded at Rp118.9 T.

The Bank also maintained strong liquidity, in line with prudent loan distribution, by recording an LDR of 77.3% and an LFR of 75.5%. The Bank's financial health was well-maintained until the third quarter of 2020, as seen from the capital adequacy ratio (CAR) at 21% and the ratio of availability of funds to fulfill obligations (Liquidity Coverage Ratio) which reached 186%.

Bank's Commitment to Continue #Melajujauh to Contribute to the Economy

Bank OCBC NISP journeys for more than 79 years by striving with the community, overcoming various crises and witnessing the national’s economic growth. and Bank OCBC NISP aspires to build optimism and encourage Indonesians to take more role together and give positive impact to achieve sustainable economic, social and environmental activities through the #MelajuJauh movement.

"Through the #MelajuJauh movement, Bank OCBC NISP reaffirms its commitment to turn challenges into opportunities by maintaining responsible banking performance, and positive performance to provide sense of security to customers and give a positive impact towards social and environment. To impart this spirit, we have launched the #MelajuJauh movement to coincide with the momentum of the Youth Pledge Day, which falls on October 28th. We hope through this movement, more Indonesians will be inspired and rise up to take prominent role as the agents of change, for a better and more advanced Indonesia," Parwati concluded.

The overview of financial reports and financial ratios as of September 30th, 2020, are available in the attached factsheet.

About Bank OCBC NISP

Bank OCBC NISP was established in Bandung in 1941 under the name Nederlandsch Indische Spaar en Bank Deposit. As per September 30th, 2020, Bank OCBC NISP serves its customers through 236 office networks in 57 cities in Indonesia, equipped with 599 Bank OCBC NISP ATM units, accesible in more than 196,000 ATM networks in Indonesia, as well as connected with 740 OCBC Groups ATM networks in Singapore and Malaysia. Bank OCBC NISP also serves its customers through digital channels, including mobile banking and internet banking, both for individual and corporate. Bank OCBC NISP is one of the banks with the highest credit ratings in Indonesia, with idAAA (stable) rating from PT Pemeringkat Efek Indonesia (PEFINDO) and AAA(idn)/stable from PT Fitch Ratings Indonesia.

Bank OCBC NISP

Corporate Communication Division

OCBC NISP Tower, Jl Prof Dr Satrio Kav 25, Jakarta 12940

Tel: 021- 25533888; Fax: 021-57944000

corporate.communication@ocbcnisp.com

Website : www.ocbcnisp.com



Aleta Hanafi
Division Head
aleta.hanafi@ocbcnisp.com,
Mobile: 62-8119860068
Duhita Rahma Mahatmi (Gandis)
Public Relations & CSR
duhita.mahatmi@ocbcnisp.com
Mobile: 62-8111071069
Masniar Hutajulu
Public Relations
masniar.hutajulu@ocbcnisp.com
Mobile: 62- 85218211636

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