bank bjb Financial Performance Review
Key Takeaways
2023's Guidance Is Mostly On Track
Only the loan growth is slightly off track below 2023's guidance (1Q23
+10.3% YoY, Guidance 12% ± 1%) due to being more selective for the
Productive Segment expansion, while the other indicators are still within
the range.
High-Yield Segment Continues to Expand
bank bjb
Consumer Loans with a loan yield of 12.2% managed to grow +5.85% YoY, with
NPLs close to zero. The growth driver is driven by Multipurpose Loan provided to
Civil Servants which grew 4.97% YoY, Pre-Pensioners Loan which grew +3,54% YoY
and Pensioners Loan which grew +13.94% YoY.
Sound Liquidity Position
All liquidity indicators are beyond the regulatory requirement level, with
minimal exposure to foreign currencies. Upward CoF adjustments in
1Q23 were made to secure liquidity earlier, although higher special rate
deposits were offered, which resulted in an increase in interest expense.
Lagging Impact from Loan-Rate Repricing
Based on its common practices, Consumer Segment uses a Fixed Rate, so loan
repricing cannot be done instantly like a Floating Rate. Repricing is driven through
new bookings, which takes time to have a visible impact on financial performance.
The effects expected to be seen at least in 4Q23.
Improving Capital Ratio
CAR increased to 21.1% (+4.0% YoY, before dividend distribution) due to
the implementation of new POJK that changes the Risk-Weighted Asset
calculation for Operational Risk and Credit Risk. In our view, the current
capital condition is sufficient to support credit expansion, so there is no
urgent need to raise capital.
One Step Closer for The First BPD's KUB
Bank bjb has obtained approval from Bank Bengkulu's AGMS to become the joint-
controlling shareholder with the Bengkulu Provincial Government and to make a
phase II capital injection of up to IDR 150 billion. Currently, we are in the process of
submitting to OJK for approval of the phase II capital injection and the KUB status
with Bank Bengkulu to become effective.
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