Semarang – Bank Jateng’s performance remains shining even though management has made significant operational cost efficiencies. In the midst of downsizing operating costs, which the portion is up by 8.77% to 1.6 trillion rupiahs, PT Bank Pembangunan Daerah (BPD) Jawa Tengah actually soared its net income up by 84.3% to 1.23 trillion rupiahs compared to the same period last year then.
Based on published financial reports for the public to know about Bank Jateng’s financial performance in the third quarter of 2020, the profit increasement is supported, among others, by net interest income of 12.43% year on year (yoy) up to 3 trillion rupiahs.
The value of Bank Jateng’s lending in the third quarter of 2020 is also reported to have increased up by 3.71% to 47.65 trillion rupiahs. As a consequence of credit growth, Wong Jawa Tengah Bank also increased CKPN (Allowance for Impairment Losses) credit up by 82.22% to 1.89 trillion rupiahs. What interesting is that despite the addition of CKPN, on a consolidated basis, the assets continued to grow up 20.21% to 86.38 trillion rupiahs.
Meanwhile, the activities of collecting third party funds of demand deposits, savings and time deposits, based on this audited report, grew respectively 37.13% (current accounts), 6.42% (savings), and 85.04% (deposits). . The current account value in the third quarter of 2020 is 14.59 trillion rupiahs, savings is 21.06 trillion rupiahs, and deposits is 34.91 trillion rupiahs.
The ratio of Bank Jateng’s non-performing loans (NPL) recorded for the third quarter of 2020 is 3.71% (gross) and 0.97% (net). The loan to deposit ratio (LDR) is still very loose at 71.53%, so there is still an opportunity to expand credit, while still prioritizing the prudential banking principle. It should also be noted that the indicator used to measure the ability of bank management to manage its earning assets to the generate interest, namely the Net interest margin (NIM), is at a fair position of 5.82%.
Other indicators such as Bank Jateng’s ratio of BOPO (Operating Costs to Operating Income) in the third quarter of 2020 are in the position of 74.09%, which shows that the company is quite efficient. The financial authorities are quite strict on monitoring the BOPO of Indonesia’s banks, where the tolerable position is up to 80%.
The Sharia Business Unit of PT Bank Jateng is also reported to have posted a net profit in the third quarter year of 2020 worth of 69.08 billion rupiahs with assets of 4.82 trillion rupiahs. The profit is supported by the distribution of funds amounting up to 252.4 billion rupiahs and profit sharing for investment fund owners which amounted up to 102.8 billion rupiahs.
Revenue after profit sharing from UUS Bank Jateng reached up to 149.59 billion rupiahs in the third quarter year of 2020. In the third quarter year of 2020, UUS Bank Jateng distributed financing worth of 1.63 trillion rupiahs, while in the previous period, the financing financing distribution is 1.2 trillion rupiahs. **