JAKARTA, KOMPAS.com – Large banks were able to carve a classy performance in the first semester of 2021. The net profit recorded increased on an annual basis even though they were still faced with the Covid-19 pandemic.
This performance growth cannot be separated from the efficiency strategy carried out by the bank in the midst of pressure, a decrease in the cost of funds or cost of fund (CoF) and relatively well maintained asset quality.
For example, PT Bank Mandiri Tbk (BMRI) recorded a consolidated net profit growth of up to 21.4 percent on a global basis year on year (YoY). Net interest income and commission-based income (fee based income/FBI) grew 21.5 percent and 17.2 percent, respectively.
Also read: Up 21.45 Percent, Bank Mandiri Net Profit for Semester 1 2021 Reaches Rp 12.5 Trillion
Net interest income or net interest margin (NIM) Bank Mandiri increased to 5.05 percent from 4.93 percent in June 2020 in line with the decline in CoF bank only from 2.5 percent to 1.7 percent. The decrease in the cost of funds was due to the company’s ability to maintain the growth trend of low-cost funds.
PT Bank Syariah Indonesia Tbk (BRIS) is one of the contributors to the growth of Bank Mandiri’s performance. The subsidiary earned a net profit growth of 34.3 percent YoY.
President Director of BSI Hery Gunardi said that profitability was successful because BSI had adapted after studying the pandemic conditions that had lasted more than one and a half years.
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“We carry out cost efficiency and can also run business without meeting customers through digital services. The second factor that drives this profitability is because we made a very large backup last year so the pressure to make a backup this year is not as big as 2020,” he said at a press conference, Friday (30/7/2021).
Bank Mandiri sees that the implementation of Community Activity Restrictions (PPKM) will have an impact on people’s purchasing power. However, Bank Mandiri is still optimistic that it can achieve the bank’s business plan (RBB) that has been set this year.
Bank Mandiri President Director Darmawan Junaidi said this optimism was reflected in the first semester’s achievements. In distributing credit, the company will be selective by entering potential sectors.
BSI also did not revise the RBB this year and is optimistic that it can achieve the net profit target of around Rp 2.9 trillion-Rp 3 trillion.
Meanwhile, Bank CIMB Niaga recorded a net profit growth of 22.2 percent YoY.
CIMB Niaga President Director Tigor M Siahaan said the growth was driven by an 8.7 percent yoy increase in operating income, as well as stable operating costs so that cost to income ratio (CIR) down 45.1 percent.
“Although the performance was encouraging in the first semester, we are optimistic that we will remain cautious in the midst of the re-escalation of the Covid-19 outbreak,” he said.
Read also: Supported by growth in financing and deposits, BSI’s net profit rose 34.29 percent
Meanwhile, PT Bank Danamon Indonesia Tbk recorded a net profit growth of 18 percent, PT Bank Tabungan Negara Tbk (BBTN) recorded an increase of 19.87 percent, BTPN rose 47 percent, and BCA grew 18.1 percent.
Only Bank OCBC recorded a decline in net profit in the first semester of 6 percent on an annual basis. However, the quarterly performance improved, profit in the second quarter grew 86 percent from the first quarter.
BTN’s performance is also inseparable from the decrease in cost of funds and improvement in asset quality. This bank’s cost of funds fell from 5.16 percent in June 2020 to a level of 3.45 percent as of June 2021, while the NPL fell from 4.71 percent to 4.1 percent.
BTN is optimistic that it can pursue its credit growth target of 6 percent-7 percent until the end of 2021 even though PPKM suppresses the company’s credit rate, which has started to run fast in the second quarter. However, the profit target will be revised because the company sees that restructured loans still need time to recover, so the company must prepare reserves.
“BTN tries to increase profits and maintain sustainability at the same time. So the profit target, we want to grow according to loan growth. If you can reach Rp 2 trillion. We are trying,” said Bank BTN President Director Haru Koesmahargyo, Wednesday (28/7/2021).
Currently, BTN has a reserve NPL covariance ratio at the level of 120.72 percent, higher than the first half of 2020 of 107.9 percent.
Haru said, there is a possibility that the reserve will be added in accordance with the development of the company’s credit collectability. BTN will maintain the ratio non performing loan (NPL) is around 3.8 percent-3.9 percent until the end of the year.
Also read: Semester I-2021, BTPN Syariah Net Profit Grows 89 Percent to IDR 770 Billion
Suria Dharma, Head of Research at Samuel Sekuritas, said that banking performance had improved in the second quarter and previously predicted that performance would improve in the second half.
“However, because Covid-19 cases continue to rise and PPKM is tightened, the third quarter is expected to be disrupted.
Suria estimates that the third quarter of banking net profit will be lower than the second quarter of 2021. Even so, it is predicted that on an annual basis it will still grow because the lowest level of banking performance due to the impact of the Covid-19 pandemic occurred in the second semester of 2020.
In terms of banking stocks, Suria still recommends buying shares of five big banks because the valuations are getting more attractive.
“It’s just that all of these shares are IHS laggards because most retail investors are more interested in investing in digital bank shares or small banks,” he said. (Dina Mirayanti Hutauruk)
This article has been published on Kontan.co.id with the title Big banks reap profits in the first semester of 2021