JAKARTA - Increase in the cost of provision decreased the net profit of PT Bank BTPN Tbk. (BTPN) to IDR 1.75 trillion, or by 32.5%, compared to the previous year.
President Director of BTPN, Ongki Wanadjati, said that the weakening of the economic sector due to Covid-19 had an impact on banking debtors, forcing the company to prepare a credit reserve fee of IDR 2.8 trillion. The company also lowered interest rates and restructured credit for debtors affected by the pandemic. These phenomenon lowered the company's revenues to IDR 10.6 trillion.
According to Wanadjati, BTPN experienced a credit slowdown due to weakened business activities and higher credit repayments compared to the provision of new credit facilities. Consequently, in the fourth quarter of 2020, Bank BTPN's total credit fell 4% (yoy) to IDR 136.2 trillion. Meanwhile, total loans approved for restructuring by the end of December 2020 reached IDR 13.2 trillion, or 9.7% of the total consolidated loan portfolio.
Until the end of 2020, Bank BTPN's gross Net Performing Loan (NPL) was recorded at 3.06%, said Wanadjati in a press release Friday (26/2/2021). (AM/AC)