JAKARTA. Banking net interest margin (NIM) is predicted to rise in the second semester of 2019 following the signal of interest rate movement starting in May.
Bank Indonesia (BI) recorded that the credit interest rate dropped 6 basis points (bps) in May 2019, followed by a saving interest rate drop month on month (mom).
PT Bank Tabungan Negara Tbk (BBTN) or BTN Compliance Director Mahelan Prabantarikso said that as of June 2019 the company's NIM rose to 3.53% from 3.41%. However, it was still lower compared to 4.17% in the second quarter of 2018.
By continuing efficiency on interest expenses, BTN targets its NIM to reach 3.8% by the end of the year.
"We will recompose our high cost deposits as well as increasing the average balance for mass savings," said Mr Prabantarikso as quoted by Kontan.co.id, Friday (12/7).
Meanwhile, Bank Jatim CFO Ferdian Satyagraha said that as of May 2019 the company's NIM rose to 6.56% from 6.45% last year, up from 6.52% in the first quarter of 2019.
"So far our NIM is stable. It can rise with the potential of declining funds and promotions in July and August," said Mr Satyagraha, who added that Bank Jatim only targets NIM above 6.5% by the end of the year. (AM/MS)