Jakarta, October 31, 2022 – Indonesia’s economy is currently in relatively stable condition, as evidenced by the positive indication in the nation's 5.44% economic growth. The data suggests that Indonesia’s national economy is gradually recovering.
In line with Indonesia’s success in maintaining stability, Bank OCBC NISP continues to record a sustainable, positive performance. Until third quarter of 2022, the Bank’s net profit increased by 25.2% to IDR2.5 trillion compared to the same period in 2021. This growth was driven by 10,0% YoY growth in net interest income to IDR6.3 trillion and a decrease in allowance for impairment losses.
In line with the Bank's strategy to increase the composition of low-cost funding ratio, Bank OCBC NISP's CASA increased by 23.7% compared to the same period in 2021, as such CASA ratio stood at 60.7%. Furthermore, various indicators of the Bank’s financial performance also showed positive growth.
|Key Financial Performance as of September 30, in IDR trillion, unless otherwise stated|
|Total Loans (Gross)||131.5||117.3||12.1%|
|CASA Ratio (%)||60.7||49.2||11.5|
Positive Loan Disbursement in All Segments
According to Bank Indonesia survey, loan disbursement by banking industry is expected to increase as of August 2022. This demonstrates that Indonesian’s economic activity is improving. Per end of September 2022, Bank OCBC NISP recorded loan increased by 12.1% YoY, which was supported by loan growth in all segments, including green financing.
The Bank also continues to disburse loans through #TAYTB Women Warriors program amounting to IDR3.0 trillion or 38.2% YoY increased as of 30 September 2022. This program has a total of 1,248 women entrepreneurs, 22.5% YoY increase.
The Bank recorded improving credit quality at the end of September 2022. Gross NPL was 2.3%, and net NPL was 0.8%. These ratios were lower compared to the same period in the previous year, and below the banking industry.
Increase in Wealth Management
As of September 2022, the overall transaction of wealth management for mutual funds, bancassurance, marketable securities and foreign exchange transactions resulted a 10% YoY growth in income compared to the same period in 2021. The wealth management business contributed 43% of Bank OCBC NISP's fee-based income. The growing interest in wealth management is fuelled by the increasing financial literacy. Furthermore, OCBC NISP Financial Fitness Index 2022 survey results shows that 42% of young Indonesians are confident that their current financial planning will contribute to financial success in the future.
The Growth of Digital Transaction
The number of digital transactions using ONe Mobile (application to grow money) increased by 34% in tandem with people's growing confidence in their financial condition. This demonstrates that customers are becoming more at ease with banking activities.
Bank OCBC NISP also recorded a 17% increase in Velocity users and 21% increase in transaction volume. This growth indicates that more businesses are conducting banking activities through digital channels. The positive trend results Bank OCBC NISP to continue innovating Velocity application as corporate banking digital solution so that customers can perform their business anytime and anywhere.
“Bank OCBC NISP’s sustainable performance growth is inseparable from our prudence principle. We will continue to pursue financial products, innovation and beyond banking services based on customer’s needs. Our hope is that our services will add value to our customers and the Indonesian society,” stated Parwati Surjaudaja, President Director of Bank OCBC NISP.
Parwati added that Bank OCBC NISP will continue to disburse green and gender financing to encourage sustainable business practices, green economy, and equality, all of which are expected to deliver impact on Indonesia's environment, society, and economy.
In addition, the Bank recently opened the first Financial Fitness GYM (FFG) in DKI Jakarta, located at Pantai Indah Kapuk. FFG is a financial fitness center accompanied by Nyala Trainers that aims to assist people in becoming #financiallyfit. FFG is open for the public and operates every day including weekends.
Factsheet of financial performance and ratios as of September 30, 2022, attached.
Overview of Bank OCBC NISP
Bank OCBC NISP was established in Bandung in 1941 under the name Nederlandsch Indische Spaar en Deposito Bank. As of September 30, 2022, Bank OCBC NISP serves customers through 197 office networks in 54 cities in Indonesia. Furthermore, customers could conduct transaction through the Bank's 490 ATM, more than 98,000 ATM networks in Indonesia, and connected to more than 600 OCBC Group ATM networks in Singapore and Malaysia. Bank OCBC NISP also serves customers through various digital channels, including mobile banking and internet banking – both for individuals and corporations. Bank OCBC NISP is one of the banks with the highest credit ratings in Indonesia, namely idAAA (stable) from PEFINDO and AAA(idn)/stable from PT Fitch Ratings Indonesia. Bank OCBC NISP also received Bank of The Year award from The Banker, London for 4 consecutive years, The Best Bank for SMEs In Indonesia award from Asian Banking & Finance for 9 consecutive years, from Alpha Southeast Asia for 5 consecutive years, from GBAF Publication in Global Banking and Finance for 3 consecutive years and Asiamoney for 3 consecutive years.
OCBC NISP Performance - 30 Jan 2023