Throughout 2020, The Bank continued to encourage Indonesians to #GoFar Beyond by providing sustainable financing, digital acceleration through #BankingFromHome Solution, financial literacy and inclusion program, as well as social support for affected communities
Shareholders’ resolution on the meeting agenda
Bank OCBC NISP held the Annual General Meeting of Shareholders (AGMS) on Tuesday, 6 April 2021 and received approval for all of its meeting agenda. The seven meeting agendas were as follows:
- Company’s Annual Report for 2020 fiscal year
- Appropriation of 2020 fiscal year net profit amounting IDR 2.1 T to strengthen the company’s capital position and not to be distributed as dividend with consideration, among others, to support business growth and enable the Company to capture business opportunities, maintain capital ratios in accordance with the regulations and in line with banking industry ratio.
- Buyback of Company’s shares at a maximum of 436,000 shares to provide variable remuneration in accordance with the prevailing Indonesia’s Financial Services Authority Regulation (POJK) as well as the applicable laws.
- Recovery Plan update in accordance with POJK
- Amendment on the Company’s Articles of Association.
- Changes in the Company management’s composition:
- Appointment of Helen Wong as a Commissioner to succeed Samuel Nag Tsien who has ended his term of office, which will take effect after obtaining the OJK approval until end of 2024 AGMS.
- Reappointment of Martin Widjaja as a Director, starting at the end of this AGMS until end of 2024 AGMS.
- The appointment of Public Accountant Firm that will audit the Company's Financial Statements for 2021 fiscal year.
Sustainable performance amidst national economic slowdown
- Amidst the national and global economic slowdown, Bank OCBC NISP managed to maintain a sustainable financial performance throughout 2020, recorded pre-provision operating profit increase of 14% at IDR 5.2 trillion and net income by IDR 2.1 trillion.
- Bank OCBC NISP recorded a total deposits growth of 26% at IDR 159.0 T, of which the low-cost funding or CASA contributes 42%. Bank’s total assets grew 14%, faster than the banking industry’s growth. Other operating income recorded a growth of 18% in 2020.
- The Bank maintained sustainable performance through prudent business operations. This was reflected in net NPL (non-performing loan) ratio, recorded at 0.8% and gross NPL at 1.9%, well below the banking industry’s NPL.
- The Bank also fulfilled its intermediary role through loans disbursement amounted IDR 114.9 T at end of December 2020. Loan to Deposits Ratio (LDR) was recorded at 72.0% at the end of 2020 as the economy slowed down in 2020, and CAR was recorded at 22.0%, above the regulatory minimum requirement.
- The Bank maintained its efficiency ratios, with Cost-to-Income Ratio at 42.3% and Operating Expenses to Operating Income Ratio (BOPO) at 81.1%.
“Amidst the challenges, Bank OCBC NISP navigated through 2020 with a positive performance. The economic slowdown was the driving factor for weak demand for credit. However, Bank OCBC NISP remained consistent in its commitment to meet both individual and business customers’ needs by optimizing the Bank’s digital capabilities with continuous enhancement,” Bank OCBC NISP’s President Director, Parwati Surjaudaja stated.
Commitment to sustainable financing
- Bank OCBC NISP strengthens its commitment to sustainable financing by signing IDR 2.75 T (equivalent to USD200 Mio) agreement with International Finance Corporation (IFC), member of the World Bank Group, for Sustainability Bonds Program, consist of Green Bond and Gender Bond. Funds from Gender Bond are used to increase financing for women entrepreneurs, while the Green Bond for green financing.
- In 2020, sustainable financing disbursement is granted for green manufacturers (particularly for Waste-water Treatment Plants (IPAL) and machinery rejuvenation), new and renewable energy power plants, and green building. In 2020, Bank’s sustainable financing reached IDR 29.9 T.
Pandemic, momentum for digital acceleration at Bank OCBC NISP
- Mobility restriction enabled the Bank to accelerate its digital transformation to provide convenience and flexibility in transaction, saving, and investing via Bank OCBC NISP’s digital channels. These initiatives are welcomed by customers, reflected by the increase in banking transactions, including investment from individual customers through ONe Mobile application. Number of transactions grew by 58%, nominal transaction value by 92% and number of users by 41%.
- For business customers, Bank OCBC NISP also launched the mobile version of Velocity@ocbcnisp in April 2020, which previously is available in internet banking format. The ease and convenience of Velocity@ocbcnisp were also well received by businesses, reflected by the increase in nominal transaction value by 56% and number of users by 14%.
“The Bank’s current digital acceleration goes beyond fulfilling customers’ needs amidst mobility restriction. In the future, customers who are more accustomed to digital channels for transactions will expect the Bank to transform and innovate continuously to deliver digital capabilities to meet their ever-growing needs,” Parwati added.
Accelerate Financial Literacy and Inclusion Program
- Amidst COVID-19 Pandemic, the Bank perceived an increasing customer awareness towards the importance of saving and investing, which should be followed with sufficient financial and digital literacy.
- Therefore, Bank OCBC NISP conducted various educational program for financial literacy and inclusion, to mention a few: #BeraniCuan Campaign and #Save20 to encourage Indonesians, especially young generation, to start good habits of saving and investing starting from an affordable amount. To support this program, Bank OCBC NISP introduces “RACHEL” (Reach Your Life Goals), a chatbot to help customers to discuss about their financial management and mutual funds products that is available for purchase on daily basis.
- 13,400 participants throughout 2020 were beneficiated through Bank’s consistent educational program on financial literacy via social media, webinar and online gameboards.
- The Bank also consistently assists and educates the public to maximize safe and comfortable digital channels utilization for financial transactions through #LawanTipu2Online movement. Through digital educational program, the movement invites general public to be smarter, more cautious and vigilant when doing online transactions to avoid cyber-crime
Collaboration to empower SME Businesses and Start-ups
Strengthening Indonesia’s economic growth by understanding and supporting SME’s strategic roles as a motor of national economic growth, through:
- Establishing PT OCBC NISP Ventura (ONV) that has obtained operational license in early 2020. ONV provides, not only funding, but also incubation program and partnership for tech-based SME and startups. Through ONV, Bank OCBC NISP opens synergy and collaboration with startup companies.
- Assisting customers through challenging period by actively discussing and offering support through relaxation or restructuring their existing credit facilities. At the end of 2020, credit restructuring related to COVID-19 amounted to IDR 16.1 T.
- Providing assistance to Indonesian women entrepreneurs through #TAYTB Women Warriors program with comprehensive solution, namely Manage for financial management, Grow to expand business & Live for self-improvement.
- Providing entrepreneurs empowerment programs through online educational classes entitled ONPreneurship & Wtalks (Women Talks), with topics tailored to suit the SME businesses’ needs and challenges. ONPreneurship and Wtalks were routinely conducted once a month and have already been participated by more than 740 business owners per end of 2020.
Operational and human resources management amidst the COVID-19 pandemic
- Bank OCBC NISP has carried out various initiatives to ensure the sustainability of excellent banking services and operations while prioritizing health and safety of all parties, especially employees, customers and business partners. These initiatives were carried out by ensuring health protocols were in place as per government’s recommendations and implementing split operations, working from home to manage office density level.
- The Bank has been in compliance with the prevailing laws and regulations, and consistently submits periodical reports to regulators. To ensure that the Bank’s COVID-19 handling programs run well, the Bank maintains effective and open communication with employees, customers, and business partners.
- During pandemic, Bank OCBC NISP still actively recruited 756 employees to meet human resources need, whereby almost all the processes were carried out online. As of December 31st, 2020, Bank OCBC NISP total employees were 5,985.
- The Bank continuously strengthens training programs to enhance employees capabilities to match the demands of business development. All classroom training modules have been converted to digital format and accessible through the Bank's internal e-learning platform.
Humanitarian support for affected communities
Bank OCBC NISP distributed assistance to communities and groups in need to move forward and improve quality of life. The programs consisted of:
- Distribution of 11,620 basic food packages for to communities in more than 100 branch offices throughout Indonesia, provided by the Bank’s customers who engage in staple foods industry and the TaniHub application.
- Distribution of 1,851 food packages for the Bank’s support workers in all branch offices provided by the Bank’s customers who engage in staple foods industry.
- Distribution of 1,345 Personal Protective Equipment (PPE) for #PahlawanMedis (re: medical heroes) to 17 hospitals/health centers in 12 cities. The PPE was sourced and distributed directly by the Bank’s partners/customers and Hope Indonesia Foundation.
“Amidst various challenges faced by our nation, Bank OCBC NISP initiates #GoFarBeyond movement to invite Indonesians to keep moving forward, converting challenges into opportunities and continue to transform. In our 80th anniversary, Bank OCBC NISP reaffirms its commitment to support national advancement through responsible banking activities and maintain positive performance to provide a sense of security to customers and other stakeholders, as well as high commitment to bring positive impact on social life and environment,” Parwati ended.
About Bank OCBC NISP
Bank OCBC NISP was established in Bandung in 1941 under the name Nederlandsch Indische Spaar en Bank Deposit. As per December 31st, 2020, Bank OCBC NISP serves its customers through 236 office networks in 57 cities in Indonesia, equipped with 592 Bank OCBC NISP ATM units, accesible in more than 102,000 ATM networks in Indonesia, as well as connected with more than 650 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
Website : www.ocbcnisp.com