2Q2023 Financial Performance Summary slide image

2Q2023 Financial Performance Summary

Key Takeaways Improving Quarterly Performance, but Challenges Still Remain Net Interest Income in 2Q23 has already grown positively by +3.4% QoQ, driven by the benign growth of Interest Expense at +0.3% QoQ. Boosted by Fee Based Income growth at +6.6% QoQ and Operating Expense efficiency at -9.6% QoQ, Net Income managed to grow by +48.2% QoQ, reaching Rp 543 billion, although not yet reached the average 2022's Quarterly Net Income of Rp 561 billion. As long as there are no significant changes in the benchmark rate, the performance in 2Q23 marks a good start for performance recovery in the following quarters. Quarterly Net Income Rp Billion 593 605 585 462 543 3,490 3,427 Quarterly Interest Income Rp Billion +1.8% QoQ 362 386 1Q23 2Q23 1Q23 2Q23 366 1,728 1,734 1,579 Quarterly 1,428 Interest Expense Rp Billion 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 1Q23 2Q23 bank bjb Quarterly Fee Based Income Rp Billion +6.6% QoQ +0.3% QoQ 1Q23 2Q23 Quarterly Operating Expense Rp Billion -9.6% QoQ One Step Closer for The First BPD's KUB High-Yield Segment Continues to Expand Consumer Loans with a loan yield of 12.2% managed to grow +5.6% YoY, with NPLs close to zero. The growth driver is driven by Multipurpose Loan provided to Civil Servants which grew 4.78% YoY, Pre- Pensioners Loan which grew +3,67% YoY and Pensioners Loan which grew +12.37% YoY. 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. 2023's Guidance Adjusted In current high-interest regime, bank bjb reduces its expansion rate in the low-yield segment while managing cost of fund by optimizing LDR. We adjust the guidance for loan growth to 10%±1% and LDR to <92%. Moreover, considering loan quality is well maintained, we are also adjusting Coverage Ratio to 110%-120%. In June 2023, bank bjb executed a Capital Injection Phase II amounted Rp 149.9 bn. Bank bjb now seeking approval from the OJK for Capital Injection Phase II as well as Fit and Proper Test to become additional Controlling Shareholder. If granted, Bank Bengkulu will officially become a member of bank bjb's KUB. 10
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