Quarterly Financial Overview
Key Takeaways
Decent QoQ Growth in NII and FBI
Int Income, Int Expense dan NII
1Q2023
3Q202
Fee Based Income (FBI) Breakdown
3Q23 Compared to 2Q23, Bank Only
bank bjb
Increasing Growth Rate in High-Yield Segmen, Driven by PPPK
Number of Civil Servant in
West Java & Banten (by Person)
Growth of PPPK Debtors & Market Share
in West Java & Banten (by Person)
PPPK Debtors ◆ Market Shares
NII
Int Expense
Total: 495.2
3,592
Permanent
Contract/PPPK
22.0
45.0
Int Income
3,490
21.40%
27,835
Total: 375.9
Others
Jun 23
423,716
85,879
111
97.4
44.4
■Deposit Related
Dec 22
431,289
3,427
65,152
17.20%
1,814
103.7
121.4
Treasury & Trade
1,728
1,734
111.5
E-Channel
Market Share
18,408
14,914
11,192
1,778
1,756
209.4
~54,4%
1,699
■Loan Related
105.1
5,343
(Permanent ASN Only, Jun 2023)
1Q23
2Q23
3Q23
3Q22 4Q22 1Q23 2Q23
3Q23
2Q23
3Q23
Consumer Loan Growth Rate (YoY)
3Q22 - 3Q23
5.3%
5.2%
5.8%
5.6%
6.2%
3Q22
4Q22
1Q23 2Q23 3Q23
NII in 3Q23 showed a slight but
positive growth of +1.3% QoQ,
reaching Rp 1.78 Tr. This growth can
be attributed to a +2.9% QoQ
increase in Interest Revenue to Rp 3.6
Tr despite there still being pressure
on Interest Expense, which have
surged by +4.6% QoQ to Rp 1.81 Tr.
FBI 3Q23 reached Rp 495.2 bn (bank
only), reflecting an increase of
+31.8% QoQ, primarily driven by a
robust growth in Loan-Related
activities of +99.2% QoQ to Rp 209.4
bn. Furthermore, E-Channel FBI also
increased by +8.9% QoQ, in line with
Digi Mobile's transaction growth.
The Civil Servant Law (UU ASN) in 2023 has prompted a shift in status for honorary staff to become contract-based Civil
Servants (Pegawai Pemerintah dengan Perjanjian Kerja/PPPK). In general, PPPK has similar rights to the usual Civil Servant.
However, they are bound by a specified contract duration, while civil servants typically work until their retirement age. There
has been a notable increase in the PPPK population in West Java and Banten, growing by 20,727 individuals (+31.8%) from
December 2022 to June 2023, and it is still an ongoing process. This has become a positive catalyst for bank bjb's Consumer
Loans (12.6 Loan Yield). This can be seen in the increasing number of PPPK debtors by 9,427 individuals (+51.2%) in 3Q2023
alone, which saw a market share increase from 17.2% in 4Q22 to 21.4% in 2Q23 and increasing Consumer Loans growth rate
from 5.6% in 2Q23 to 6.2% in 3Q23. With loans being booked at a reprised-up rate (+25 bps up to +50 bps), Consumer
Loans are expected to book a better yield and margin when the benchmark rate starts to decline.
Challenges from The Recent Benchmark Rate Hike and Increasing Provisioning
The recent benchmark rate/7DRR hike (+25 bps to 6%) in October 2023, coupled with a higher for longer outlook, posed challenges for bank bjb to continue optimizing its asset and liability management, especially
those that are sensitive to interest rate movements. Additionally, Loan Loss Provision amounted Rp 168 billion in 3Q23 exceeding the usual quarterly provision (+/- Rp 100 billion). Nevertheless, the guidance for FY
2023 will remain intact, particularly with Cost Of Funds expected to remain between 4.25% and 4.75% (4.3% in 3Q2023) and Cost Of Credit staying within the range of 0.1% to 0.3% (0.2% in 3Q2023).
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