Building Growth through Business Strengthening, Bank Jatim Print Positive Performance in 2023Date: 23 january 2024
SURABAYA, January 23, 2024. PT Bank Pembangunan Daerah Jawa Timur Tbk (bankjatim) successfully recorded a positive performance throughout last year. This can be seen from the results of bankjatim Public Exposure Year 2023 which has been held on Tuesday (23/1). Located in the Bromo Room at bankjatim Head Office, the presentation was attended by bankjatim President Director Busrul Iman, bankjatim Director of Finance, Treasury and Global Services Edi Masrianto, bankjatim Micro, Retail and Medium Director R. Arief Wicaksono, and bankjatim Risk Management Director Eko Susetyono.
Busrul explained, throughout 2023, management has done many things to achieve the vision and mission of bankjatim to become BPD No.1 in Indonesia, namely implementing and adopting dynamic banking business processes, increasing captive markets that have become bankjatim's strength, and exploring new business potential but still maintaining the core business as BPD. "We have also transformed the less relevant business processes and organizations so that they can focus more on accelerating and accelerating the business so that bankjatim can be resilient and agile in all circumstances," he explained.
He emphasized, some key financial indicators have shown improvement which indicates that bankjatim is already on the right track to become BPD No.1. However, some external factors are still a challenge for bankjatim such as dynamic macroeconomic conditions and must continue to ensure some of the fundamental transformations launched by management can continue to run. "Therefore, bankjatim management continues to make several adjustments to the achievement of business strategies to produce a stable business ecosystem," continued Busrul.
Because, a stable business ecosystem is the strength of bankjatim in providing value and benefits that continue to grow every year, both for shareholders and stakeholders. bankjatim continues to strive to be a strategic partner in the financial sector for Local Governments in East Java such as electronification transaction services for Local Governments, cash management management for ASN, financing consumption of Government spending, and other government financial services.
Outside the local government ecosystem, in an effort to increase the Bank's business market, in 2023 bankjatim has also implemented a credit segmentation policy, namely micro, small and medium, corporate and syndication. "This is done to be more focused and directed. This has relatively brought good results, namely an exponential increase in lending, especially in the micro and small credit segments," Busrul said.
As a public company, business growth supported by a stable ecosystem and massive but measured exploration of new businesses can provide relatively good results. Bank Jatim consistently strives to provide maximum return as a form of appreciation to shareholders and investors who have given their trust. So that the issuer with the code BJTM is able to become one of the drivers of the regional economy and society in general.
During 2023, bankjatim's successful lending was at Rp 54.7 trillion or grew significantly by 18.54% (YoY). Therefore, bankjatim assets also continued to grow throughout 2023 to Rp 103.85 trillion. Bankjatim's highest credit growth occurred in the productive sector (commercial and SME) by 34.28% (YoY) and the consumer sector by 8.91% (YoY). Through segmentation strategies, business model modernization, target setting and measurable monitoring, as well as shifting patterns of Account Officer personnel have reaped significant results on credit growth, especially productive credit. Meanwhile, consumptive loans, which are the bank's captive market, also still have potential through moments such as the acceptance of new ASNs, periodic ASN salary increases, school admissions, vacations, etc.
The increase in credit that bankjatim has achieved has made the company's financing to fund management (LDR) ratio even better. The LDR ratio in 2022 only amounted to 56.50%, then rose to 70.03% in 2023. Bankjatim's credit distribution was also followed by improvements in loan quality. This can be seen from bankjatim's Gross Non Performing Loan (NPL) ratio which is sloping. Namely at 2.83% in 2022 to 2.49% in 2023. That means bankjatim's credit quality is getting healthier and is a sign of recovery from several economic sectors. "NPLs managed to decline because we have resolved non-performing loans and write-offs and our net profit throughout 2023 was recorded at Rp 1.47 trillion," he said.
Then in terms of savings bankjatim experienced an increase of 9.38%. The company is always trying to continue to increase the savings post as low-cost funds through several steps such as the massive use of JConnect Mobile and promotional periods throughout East Java. According to Busrul, savings have increased along with the growth of JConnect mobile banking application users. The J Connect platform not only functions as a product to facilitate customers in transacting through bankjatim, but also to simplify and accelerate business processes within bankjatim.
Busrul explained, bankjatim's digital banking performance was quite satisfying. Throughout 2023, JConnect Mobile users reached 641,266 users or grew 29% (YoY). Then for the nominal transaction it was at Rp 42 trillion, up 45% (YoY).
Next, JConnect IB Corporate users are at 8,319 or up 31% (YoY) with nominal transactions of Rp 11.7 trillion. Not only that, the number of Jatim Agents throughout 2023 also grew 146 percent (YoY) to 7,158 with a nominal transaction of Rp 92.3 billion.
"In addition, our QRIS merchants have reached 136,274 or grew 133 percent (YoY) with a nominal transaction of Rp 697 billion or grew 262 percent compared to the same period last year (YoY). JConnect Loan also grew positively and has been used to process 35,710 credit approvals from 42,900 credit applications," Busrul explained.
All positive achievements can not be separated from the five pillars of transformation that has been implemented by bankjatim. The five pillars are organizational transformation, human capital transformation, rule making rules transformation, IT and Digital Banking transformation, and corporate action. Well, to continue to support the development and stabilization of IT and digital fields, in 2024 bankjatim has allocated a budget of Rp 273.5 billion with a composition of Rp186 billion for CAPEX and Rp 87 billion for OPEX. This budget increased by 2.14% from the previous year.
Busrul explained, actually many strategies have been prepared by bankjatim to undergo the year 2024. This year, bankjatim has planned to launch New JConnect Mobile. Progress is now still in the licensing process OJK. In the New JConnect Mobile there will be a total of 94 features. The details, 36 new features and 58 existing features.
"In the midst of the development of the digital economy, bankjatim always continues to develop its digital ecosystem to be more efficient in order to meet the needs of customers who have high mobility," said Busrul. So, the more complete services and features provided by bankjatim are expected to be an attraction not only for existing customers, but also can increase the value of transactions and the number of new customers.
In addition, this year bankjatim will also aggressively increase the credit sector through new markets, maximize the captive market, and encourage the implementation of the Bank Business Group (KUB). Until now, bankjatim is in the process of doing KUB with Bank NTB Syariah and Bank Lampung. "All that we do for the realization of business acceleration so that bankjatim can achieve its vision and mission to become BPD Number 1 in Indonesia," said Busrul.
He added, bankjatim also slowly continues to increase the capacity of International Banking and Treasury business as a profit booster. Beyond the business that has been running, bankjatim is currently in the process of applying for a license to become a partner of Bank Indonesia in deepening the money market and active in offering treasury / international products, custodian, sub-partner distribution of state retail securities, especially to customers and / or domestic bank counterparties.
As for the end of 2024, bankjatim targets for total assets to record 2-3% growth. While for lending in 2024 is targeted to be able to increase 16-18% because it is supported by the addition of a massive number of Account Officers (AO).
In addition to positive performance, throughout 2023 bankjatim also successfully won many awards from various events. Namely the 6th Infobank MRI Satisfaction, Loyalty, Engagement and Corporate Reputation Award 2023, Indonesia Best BUMD Awards 2023, Indonesia Public Relations Awards 2023, Obsession Awards 2023, 2021 Sustainable Report Study Results of Public Companies in Indonesia, Digitech Awards 2023, TOP BUMD Awards 2023, 20th Infobank - MRI Banking Service Excellence (BSE) Awards 2023, Launching Tempo-IDN Financials 52 Index, Best Bank Awards 2023, TOP GRC Awards 2023, and The Asia Sustainability Reporting Rating (ASRRAT) 2023.