JAKARTA (TheInsiderStories) – PT Bank Negara Indonesia Tbk (IDX: BBNI) eyes general insurance, asset management, venture capital and start-up company in this year as part of the bank un-organic plan in 2017. The state-owned bank also plan to issue domestic bond Rp5 trillion and negotiable certificate of deposit with amount Rp3 trillion in second quarter of 2017.
According to Finance Director of BBNI Rico Budidarmo, for that plan the company prepared investment Rp4 trillion (US$300.75 trillion) and around Rp1.5 trillion of the total investment allocated for acquisition plans. Half of the fund, He continued, is allocated to strengthening the subsidiaries capital like PT BNI Securities and PT BNI Life. Otherwise the other unit PT BNI Syariah is considered go public or issue sub-ordinated loan.
“We plan to acquire several companies, raising capital of BNI Securities Rp300 billion to speed up the underwriting business. The acquisition of start-up company is part of our plan to improve our digital banking business,” Rico stated.
Meanwhile, the bank also looking to replace US$2.2 billion. 500 juta di April.
Kita siapkan Rp4 trillion (Rp1.5 trillion untuk akuisisi) asuransi, asset managemen Rp100-150 miliar, bank syariah dan kita juga akan mengkaji modal ventura dan capital investment.
Director of treasury and international Panji Irawan adding, part of the fund from bond issuance and bilateral loan will use to convert the global bond $500 million which will mature in April. Currently, the bank has total debt in foreign exchange $2.2 billion.
Net Profit rose 25.1 percent
Bank Negara Indonesia announced the net profit jumped 25.1 percent from Rp9.07 trillion to Rp11.34 trillion during 2016 drive by enhancement of net interest income (NII) and non-interest income result. According to Vice President Director of Suprajarto, NII of the bank rose 17.4 percent to Rp30.00 trillion in 2016 from a previous year Rp25.56 trillion.
While non-interest income recorded Rp8.59 trillion or up 23.1 percent from 2015 Rp6.98 trillion supported by fee based income from trade finance, account management, debit credit and credit insurance. Total outstanding loan rose 20.6 percent from Rp293.28 trillion to Rp326.11 trillion and total asset of the bank lift to Rp603.03 trillion or rose 18.6 percent compared to previous year Ro508.60 trillion.
Suprajarto optimistic this year the bank’s loan could grow 15 percent, lower on the 2016’s growth cautious to the condition of the world economy. To reached those target, He stressed, the bank will more prudent run the business, more focus on small and medium enterprises (SMEs), expand the overseas’s branches and give more lending to the state-owned company.
“Last year our lending rise because our old customers return home, more prudent in running the business and focus on SMEs. For this year, beside the domestic business we also looking to expand our overseas business. Our overseas branches has great potential not only remittance but also business loans to Indonesian migrant workers and workers who require investment loans and home mortgages,” He said.
Director of planning and operations Bob Ananta added, amid the challenge, He still sees the room for the bank to boost their business. He continued, to expand the BBNI’s market will focus on the digital banking to reach untouched markets.