Release Date: January 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Quarterly PPOP grew by 9% year-on-year, reaching a new high level of IDR9.5 trillion.
- Savings grew by 11% year-on-year, outperforming the industry growth rate of 6.6%.
- Loan growth was strong at 12%, driven by the Corporate and Consumer segments.
- Asset quality improved with the NPL ratio falling below 2% and the loan-at-risk ratio declining to 10.3%.
- The launch of the Wondr mobile app significantly increased user engagement and transaction frequency, contributing to savings growth.
Negative Points
- Net interest margin (NIM) faced challenges, with a conservative guidance set due to cost of fund pressures.
- The exchange rate volatility and macroeconomic conditions may limit the Central Bank's ability to ease monetary policy.
- Operating expenses grew by 6.9%, outpacing revenue growth due to investments in digitalization.
- Anomaly in fourth-quarter provision charges, with a significant increase due to conservative provisioning and write-offs.
- The SME segment experienced a decline of 10.8%, driven by a sharp reduction in the KUR portfolio.
Q & A Highlights
Q: Can you elaborate on the key drivers behind the 11% year-on-year savings growth?
A: Paolo Kartadjoemena, Director of Digital and Integrated Transaction Banking, explained that the growth was primarily driven by increased consumer engagement through digital platforms, particularly the Wondr mobile app. The app has gained significant traction since its launch, with 5.3 million registered users and a high active user rate of 65%. This has led to increased transaction frequency and higher average savings balances among users.
Q: What are the strategic initiatives for branch transformation, and how will they impact the bank's growth?
A: Royke Tumilaar, President Director, stated that the branch transformation aims to enhance the bank's funding franchise by focusing on retail and transactional CASA growth. This initiative is expected to diversify asset growth, particularly in the SME and Consumer segments, and support sustainable profitability through low-cost funding.
Q: How is BNI addressing the challenges in the current global environment, particularly regarding asset quality?
A: David Pirzada, Director of Risk Management, highlighted that BNI has improved its asset quality, with the NPL ratio falling below 2% and the loan-at-risk ratio declining to 10.3%. The bank remains prudent and conservative, maintaining a healthy NPL coverage ratio above 200% and a LAR coverage ratio above 40%.
Q: What are the expectations for loan growth and net interest margin (NIM) in 2025?
A: Royke Tumilaar, President Director, indicated that BNI aims for loan growth of 8% to 10%, contingent on system liquidity. The NIM is expected to range between 4% and 4.2%, with potential improvement in the second semester. The bank is focusing on maintaining a low-cost funding structure to support these targets.
Q: How has the launch of the Wondr app impacted customer acquisition and engagement?
A: Paolo Kartadjoemena, Director of Digital and Integrated Transaction Banking, reported that the Wondr app has significantly boosted customer acquisition, with 1.6 million new customers in the second semester of 2024. The app's features and promotions have led to higher transaction frequency and increased savings balances among users, contributing to the bank's overall growth.
Q: What measures are being taken to manage the cost of funds amid a challenging macroeconomic environment?
A: Novita Anggraini, Managing Director of Finance, explained that BNI is focusing on shifting its funding mix towards low-cost deposits and managing special rate current accounts. The bank is also leveraging RRR incentives from the Central Bank to optimize its balance sheet and support loan growth.
Q: Can you provide more details on the financial performance and key metrics for 2024?
A: Novita Anggraini, Managing Director of Finance, noted that BNI achieved a 9% year-on-year growth in PPOP, with a strong performance in net interest income and fee income. The bank's ROE increased to 14.2%, and the dividend payout was doubled to 50%. The focus on digitalization and efficiency has driven these positive results.
Q: How is BNI planning to enhance its digital offerings and customer experience?
A: Paolo Kartadjoemena, Director of Digital and Integrated Transaction Banking, mentioned that BNI is continuously improving the Wondr app with new features such as global payment capabilities, enhanced wealth management functions, and personalized product management. These enhancements aim to increase customer engagement and support the bank's growth strategy.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
