PT Bank Permata Tbk (“PermataBank” or “Bank”) continues to maintain a solid momentum in improving performance amid the ongoing COVID-19 pandemic overshadowing the domestic and global economic recovery. This achievement is the result of prudent and consistent implementation of a sustainable business strategy as reflected in substantial asset growth, operating income, and net profit. The Bank also maintained asset quality at a safe level with ample liquidity and capital positions to support sustainable business growth.
President Director of PermataBank, Chalit Tayjasanant said, "Even though Indonesia's economy has not returned to its pre-pandemic state, PermataBank’s mid-year performance confirms that our business strategy and the support of our customers have enabled us to achieve satisfactory results. Expanding our business scale as well as focusing on healthy organic and inorganic credit growth, remain the main factors in maintaining PermataBank's current performance. We hope to continue to support Indonesia’s banking ecosystem towards a stronger direction.”
The continuing impact of the pandemic on the recovery of the domestic economy is a significant challenge for the banking industry in achieving its asset growth target. However, the Bank's total assets grew by 34.8% YoY to Rp212.9 trillion, thus making PermataBank as one of Indonesia’s 10-largest commercial banks (by total assets). Loan disbursement grew by 16.6% YoY to Rp120.8 trillion, mainly driven by credit growth in the Wholesale Banking segment by 39.8% YoY, which was contributed by, among other things, the completion of integration with Bangkok Bank Indonesia in December 2020. The Bank's loan growth was also supported by the significant increase in mortgage loans (KPR) of 21.7% YoY in the retail segment.
Operating income was recorded at Rp4.9 trillion or grew by 19.4% YoY, and operating profit before provision grew by 36.6% YoY in line with asset growth. In terms of allowance for impairment losses on loans, the Bank continues to apply the precautionary principle because of the pandemic’s continuing impact, which indirectly causes the potential for an increase in inherent credit risk. It is reflected in the rise in gross and net NPL ratio in June 2021 to 3.3% and 1.2%, compared last December 2020 of 2.9% and 1.0% respectively, although still better than the position in June 2020 of 3.7% and 1.8%, respectively.
The Bank allocates allowance for impairment losses to anticipate potential losses due to a decrease in asset quality of Rp1.5 trillion, increasing 41% over the same period last year. Thus, the NPL coverage ratio is well maintained in a relatively conservative range of 218%, higher than the same period the previous year of 112%. This result is in line with the prudential principle that the Bank always applies in managing credit risk.
In the second quarter of 2021, the Bank managed to record a Net Profit after tax of Rp639 billion, a significant increase of 74.3% compared to the same period last year of Rp366 billion.
The Bank's liquidity position is well maintained, as reflected in the Loan to Deposit Ratio (LDR) ratio of 75% at the end of June 2021, down from last year's position of 81%. This number was contributed, by an increase in customer deposits which grew by 25.0% YoY with a CASA ratio of 52%, strengthening compared to the position in December 2020 of 51%. The Bank will continue to focus on accelerating a healthy credit growth rate, supported by sustainable and efficient growth of third-party funds. Digital banking solutions are the key to the Bank's success in developing the business scale by promoting a simple, fast and reliable customer transaction experience.
The Bank's solid capital ratio with CAR and CET-1 ratios at 35.4% and 26.9%, respectively, much stronger than the banking industry's average CAR ratio of 24%, is a crucial enabler for the Bank to accelerate business growth both organically and inorganically. The Bank is committed to supporting the Government of Indonesia in supporting economic recovery by carrying out intermediary functions effectively and efficiently.
Implementation of Limited Public Offering (PUT) IX for Pre-emptive Rights (HMETD)
PermataBank completed the Limited Public Offering (PUT) IX on July 26, 2021. The total number of class B shares offered to the Bank's shareholders totaling 8,138,620,315 shares, was fully allocated at the request of the shareholders at Rp1,347 per share. The implementation of this PUT IX is a continuation of the Integration process between PermataBank and Bangkok Bank Indonesia, where the Bank converts all Advance Capital Payment of Rp10.8 trillion received in December 2020 to its paid-up capital following the applicable Capital Market OJK regulations.
Making Positive Strides in Digital Banking and Sharia Business
PermataBank continues to invest in digital technologies that build scale, deliver business growth, improve customer experience, productivity and efficiency. During H1 2021 the Bank’s total transaction volume increased by 200% YoY to 937 million; much of the increases came from significant up-take in all digital channels up 351% YoY to 766 million. The Bank’s digital volume increase is a reflection of strong and effective third-party partnership with many key players within the Bank’s ecosystem and the digital economy at large.
To broaden the Bank’s distribution network, PermataBank recently collaborated with Indomaret providing cash withdrawal access free of charge for the Bank’s customers in all 18,700+ Indomaret locations nationwide. The Bank will continue to invest in market leading digital capabilities - PermataAPI, PermataMobile X, PermataNet, Permata-e-Business, PermataQR, in Retail, SME, Wholesale and Sharia – to deliver on the Bank’s brand promise – simple, fast and reliable.
In the first half of 2021, PermataBank Syariah continued to launch innovative products and services. Last May, PermataBank Syariah launched “The First Shariah API Solution” for other Sharia Financial Institutions (Lembaga Keuangan Syariah/LKS), enabling LKS to assist their customers in conducting transfer in & transfer out - to and from other banks online. In addition, PermataBank and OJK support the government's initiative by inaugurating a Micro Waqf Bank at Cipasung Islamic Boarding School, Tasikmalaya to channel Rp16 billion in funds intended for establishment capital, working capital and operations.
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