BNI net profit in 9M2016 increases by 28.7% on higher NII, fee-based income

JAKARTA (TheInsiderStories) - PT Bank Negara Indonesia (Persero) Tbk (IDX: BBNI) recorded net profit of Rp 7.72 trillion in the nine months to September period, representing an increase of 28.7 percent from the same period in 2015. The increase was supported by a 15-percent increase in net interest income (NII) as well as 20 percent rise in fee-based income

President Director of BNI Achmad Baiquni said the increase is quite encouraging as the country’s economy is only expected to grow by 5.1 percent this year, while average net profit growth of the banking industry reached 9.8 percent on average.

In the nine months period, BNI posted net interest income NII) rose 15.0 percent from Rp 19.02 trillion in the nine months 2015 to Rp 21.87 trillion in the nine months to September 2016. This shows an improvement of BNI’s credit quality and capability of BNI to maintain net interest margin (NIM) of 6.2 percent.

Non-interest income in the period rose 20 percent from Rp 5.19 trillion in nine months to September 2015 to Rp 6.24 trillion in the same period in 2016, supported by fee based income from trade finance, account management and bancassurance.

(In Rp trillion, except earnings per share)

Credit Growth

Up until end of the third quarter, BNI recorded credit of Rp372.02 trillion, up 21.1 percent from the same period last year, and higher than credit growth up until end August 2016 (7.6 percent).

The loans were provided to infrastructure sector with low risk and other sectors by utilizing the bank’s network and outlets. In addition, the bank also provided loans to certain sectors by optimizing the supply chain potentials of the bank’s corporate borrowers.

As much as 73 percent of the loans were allocated to banking business. Of this, 24.3 percent were allocated to corporate sector, SOEs 19.1 percent, medium-sized companies 16.3 percent and SME market segment 13.3 percent. This banking business segment grew by 23.5 percent from the same period last year.

Loans to Consumer Banking sector contributed 16.9 percent to total loans, in particular home loans, called Kredit Kepemilikan Rumah (BNI Griya), credit card and ‘Fleksi’ product. Consumer Banking sector grew by 14.4 percent in the period, compared to the same period last year.

Assets Quality

BNI’s total assets at end September reached Rp 571.51 trillion or up 25.2 percent from the same period in 2015. Gross NPL was maintained at 3.1 percent as the bank managed to mitigate risks.

(Trillion Rupiah)

Financial Ratios

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