OCBC NISP's net profit grew by 15% in Q1 2019

02 May 2019 06:51

JAKARTA. In Q1 2019, PT Bank OCBC NISP Tbk (NISP) managed to gain a net profit of Rp. 765 billion, 15% higher on an annual basis (year on year/YoY) from its net profit in the same period in 2018 (Rp. 663 billion).

In line with net profit growth, OCBC NISP's assets also increased by 10% YoY to Rp 117.5 trillion at the end of Q1 2019. Meanwhile, third-party funds (DPK) also grew by 8% from Rp 121.1 trillion to Rp. 130.5 trillion.

On the other hand, new loans grew by 6% YoY to Rp. 117.5 trillion.

OCBC NISP's non-performing loan (NPL) ratio is also relatively stable, at 1.8% on a gross basis. While on net basis, it rose by 20 basis points (bps) from 0.7% to 0.9%.

"In 2019, Bank OCBC NISP believes that the banking industry will continue to record positive growth, in accordance with Bank Indonesia's projections," said President Director of OCBC NISP, Parwati Surjaudaja in an official statement received by Kontan.co.id on Tuesday (30/4). Bank Indonesia predicts banking industry to record credit growth of 10-12% and deposit growth of 8% -10%, with sufficient maintained liquidity.

Meanwhile, in terms of financial ratio, there are some improvement. Cost to income ratio (CIR) improved by 45.3%, return on assets (ROA) also rose 10 basis points to 2.3% in the first quarter of 2019. In terms of liquidity, the loan to funding ratio (LFR) also decreased by 2.2% on an annual basis from 87.6% to 85.4%.

Nevertheless, the level of net interest margin (NIM) was relatively declined by 0.3% to 3.9%. (AM/AR)

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