JAKARTA. The increase in operating expenses affected the performance of PT Bank Jatim Tbk (BJTM) during the period of January-October (10M) 2019.
Tjandra Lienandjaja, an analyst from Mandiri Sekuritas, acknowledged that BJTM's net profit in 10M 2019 grew by 5% on a year-on-year basis (YoY) to Rp 1.2 trillion. However, the company's operating expenses rose by 34% YoY. "This is due to an increase in salary and promotion expenses," Lienandjaja said on Thursday (21/11) today.
As a result, BJTM's Net Interest Margin (NIM) in 10M 2019 dropped to 6.6%. Previously, the state-owned company was able to maintain its NIM at the level of 7.3% in 10M 2018. "Most of this was caused by a decrease in asset yields, while the expenses were still quite stable," explained Lienandjaja.
On the other hand, BJTM's provision costs rose sharply by 219% YoY in 10M 2019, to Rp 318 billion. The company's cost of credit (CoC) also rose by 1% in 10M 2019, from 0.4% in 10M 2018. However, the NPL remained at a safe level of 2.95%. (KR/AR)