Jakarta, 31 July 2023 - Bank OCBC NISP today announced its financial results for the first half of 2023, reporting a net profit of IDR 2.1 trillion, up 25% year-on-year (YoY). The bank's net profit growth was driven by a 21% YoY increase in net interest income. This strong performance was underpinned by growth in retail and corporate banking, resulting in a 12% YoY increase in loans disbursed. Total assets reached IDR 245 trillion, an increase of 10% YoY.
|Key Financial Performance as of 30 June, in IDR trillion|
|Loans - gross||142,3||127,1||12%|
Parwati Surjaudaja, President Director of Bank OCBC NISP stated “We continue to strive for consistency in our business with a positive performance. Our credit grew 12% YoY to IDR142,3 trillion end of first half 2023. This was driven by the growth of diversified streams in all segments. The bank's prudent management of loans is a positive sign for future prospects.”
The prudent management of the Bank's credit was reflected in the fact that the provision for credit losses (PCL)/gross non-performing loans (NPL) ratio remained above 200%. This meant that the bank has set aside sufficient provisions to cover potential loan losses. In addition, the bank's gross NPL decreased to 2.3% which is below the industry average. This reflected that the bank is managing its risk in an effective manner.
In terms of Deposits, the bank also grew by 4% YoY to IDR 178 trillion, supported by 19% and 9% growth in savings and time deposits respectively. Moreover, the bank's CASA ratio remained stable at 54.8%. The growth in credit and deposits reflects the bank's continued focus on providing comprehensive financial solutions to its customers.
Thus, Loan-to-deposit ratio (LDR) grew to 78.9%. This was in line with increasing demand for financing driven by recovering economic conditions.
Furthermore, Bank OCBC NISP's wealth management business grew 7% YoY in the first half of 2023, contributing 33% of the bank's total fee-based income.
As the bank's net profit grew by 25% YoY, its Return on Equity (ROE) rose to 12.3% up from 10.6% in the same period last year.
Bank OCBC NISP shows a strong capital adequacy as a positive sign for its financial health and is well positioned to continue to grow in the future. Capital adequacy ratio (CAR) was recorded at 23.2%, well above the regulatory minimum.
Digital Banking Continues to Grow
Bank OCBC NISP continues to focus on the development of comprehensive, collaborative, and sustainable technologies, with an emphasis on increasing the use of digital technologies that are relevant to the needs of individual customers through ONe Mobile and for business customers through Velocity@ocbcnisp.
As of June 2023, the number of ONe Mobile transaction has increased by 63% and the transaction value has increased by 67% YoY. Meanwhile, the number of Velocity users has increased by 17% YoY. These results show that the bank's digital transformation is having a positive impact on both customers and the business. The bank is well positioned to continue to grow in the future by leveraging its digital capabilities.
Bank OCBC NISP, the first bank in Indonesia to provide sustainable financing from the International Finance Corporation (IFC) in the form of green and gender bonds, believes that sustainable financing is an essential part of a smart economy that needs to be continuously promoted.
As of 30 June 2023, Bank OCBC NISP has disbursed IDR 30 trillion in sustainable financing. Of this amount, IDR3.1 trillion was channelled to the #TAYTB Women Warriors programme as gender bonds, an increase of 9.8% year-on-year. In addition, the Bank has also recorded the green financing amounted to Rp13 trillion. The green financing has been channelled to energy and renewable energy financing, green building, and others.
"Our positive growth is supported by the government's efforts to keep the conducive economic environment. Going forward, we will continue to accelerate our capabilities in providing banking products and services that are relevant to today's market," Parwati concluded.
Factsheet of financial performance and ratios as of 30 June 2023, attached.
Overview of Bank OCBC NISP
Bank OCBC NISP was established in Bandung in 1941 under the name Nederlandsch Indische Spaar en Deposito Bank. As of 30 June 2023, Bank OCBC NISP serves customers through 199 office networks in 54 cities in Indonesia. Furthermore, customers could conduct transaction through the Bank's 491 ATM, more than 90,000 ATM networks in Indonesia, and connected to more than 600 OCBC Group ATM networks in Singapore and Malaysia. Bank OCBC NISP also serves customers through various digital channels, including mobile banking and internet banking – both for individuals and corporations. Bank OCBC NISP is one of the banks with the highest credit ratings in Indonesia, namely AAA(idn)/stable from PT Fitch Ratings Indonesia.
Brand & Communication Division, Bank OCBC NISP
OCBC NISP Tower, Jl Prof Dr Satrio Kav 25, Jakarta 12940
Tel: 021- 25533888; Fax: 021-57944000
Website : www.ocbcnisp.com
Achievement - 14 Nov 2023