Optimistic, BJB Bank Loans Grow in 2023

Armfalcon.com, BANDUNG – Bank BJB is optimistic that it will be able to seize opportunities for credit growth which is estimated to increase in 2023. In 1Q 2023, Bank BJB’s credit and financing growth year on year (yoy) grew 10.8 percent or to IDR 116.45 trillion.

This growth occurred in all credit segments, both consumer and credit business segment. This optimism was conveyed by the Main Director of Bank BJB Yuddy Renaldi in analyst meeting 1Q 2023 in Bandung, Wednesday (3/5).

Yuddy said, the results of a survey conducted by Bank Indonesia showed optimism for credit growth going forward. It is projected that credit growth for the whole of 2023 will be 10.4 percent yoy, growing positively, though not as high as last year’s actual credit growth.

Bank BJB’s optimism, said Yuddy, was driven, among other things, by monetary and economic conditions, as well as relatively well-maintained risks in lending. According to him, the interest rate factor is a challenge for the banking sector, due to the impact of the increase in the benchmark interest rate which has increased by 225 basis points since mid-2022.

Therefore, he continued, the company focuses on driving other revenues through service-based products fee-based incomedigital ecosystems, technology-based service products and wealth management. ”Bank BJB’s business growth in early 2023 focuses on taking more selective steps for quality credit growth while trying to maintain yield adequate,” said Yuddy.

Starting in 2023, Bank BJB’s consumer business contributes a large portion of the portion of lending that continues to grow at a steady rate non-performing loans (NPL) which is maintained very well.

Yuddy explained, in order to offset the policy reference rate which continues to increase, Bank BJB continues to carry out good liquidity management, so that liquidity remains ample with a manageable cost of funds, so that it is more efficient in the cost of funds.

The various financial conditions of Bank BJB, which are getting better, are supported by various improvements in the credit sector. In 1Q 2023, consumer loans grew 5.8 percent yoy to IDR 66.2 trillion, which is the segment with the largest portion, namely 61.1 percent of total loans disbursed.

The mortgage segment continues to grow, especially subsidized mortgages, thus driving growth of 16.3 percent yoy to Rp 9.4 trillion. As for 2023, Bank BJB will obtain a FLPP quota of 8,000 units.

The MSME sector grew 10.3 percent to IDR 6.8 trillion. This sector is driven by micro disbursement which is growing well, namely 20 percent yoy, including KUR distribution, and Bank BJB this year is given a quota of IDR 3 trillion.