BNI’s assets grow 12.5% in third quarter

Jakarta (ANTARA) - State lender Bank Negara Indonesia (BNI) announced its assets grew by 12.5 percent year on year (yoy) at the end of September, 2020, fueled by a 21.4-percent rise in third-party fund placement.

Third-party fund placement rose to Rp705.1 trillion in the third quarter of this year from Rp580.9 trillion in the year-ago period, BNI consumer business director Corina Leyla Karnalies said here on Tuesday.

BNI raised third-party fund placement by offering low-cost funds (CASA) on priority to reduce the cost of funds, he said.

BNI’s CASA currently stands at a level of 65.4 percent, with cost of funds at 2.86 percent, or 30 bps higher than last year, when the figure was recorded at 3.24 percent.

Corina said third-party fund placement helped loans channeled by the bank grow 4.2 percent yoy from Rp558.7 trillion in the third quarter of 2019 to Rp582.4 trillion during the same period in 2020.

She said the bank’s management is focusing on improving the quality of assets through comprehensive and intensive assessment to help debtors amidst the challenging economic conditions created by the COVID-19 pandemic.

She further said the bank's net interest income fell 0.8 percent (yoy) in the third quarter of 2020.

However, the drop could be dealt with by significantly lowering the interest burden by 8 percent (yoy), so that the net interest margin (NIM) reached 4.3 percent in the third quarter of 2020, she added.

The bank posted a net profit of Rp4.32 trillion in the third quarter of 2020, down 63.9 percent compared to the year-ago period. (INE)

Source: Antara News

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