Start the Year 2024, Bank Jatim Prints Ciamik Performance

Date: 29 april 2024

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JAKARTA, April 29, 2024. PT Bank Pembangunan Daerah Jawa Timur Tbk (bankjatim) successfully recorded a positive performance throughout the first quarter of 2024. This can be seen from the results of bankjatim's Public Expose which was held on Monday (29/4). Located at the Alila Hotel Jakarta, the presentation was attended by bankjatim President Director Busrul Iman, bankjatim Micro, Retail and Medium Director R. Arief Wicaksono, bankjatim IT & Digital Director Zulhelfi Abidin, bankjatim Finance, Treasury & Global Services Director Edi Masrianto, bankjatim Risk Management Director Eko Susetyono, and bankjatim Operations Director Arif Suhirman.

Busrul explained, starting the year 2024 in the midst of dynamic conditions and in an effort to win the competition, bankjatim management has conducted a review of several obstacles while also continuing the achievements during 2023 yesterday which is divided into 5 magnitudes. First, the acquisition of a broader business market, namely in the real / productive sector, especially for the credit business in the micro, small & medium segment. Second, strengthening the captive market, namely the consumer segment through retention programs, acquisitions to derivatives in the captive market as a unified ecosystem controlled by BJTM. "Some examples of this ecosystem in addition to the consumer credit business include Regional Government project financing, procurement including transactional services between BUMDs, BLUDs under the control of the Regional Government," he said.

The third is the penetration of digital services which is also an effort to increase BJTM's CASA Ratio. Busrul emphasized that in the near future, JConnect New Generation will be launched, equipped with more complete features ranging from account opening and online deposit placement to customer account portfolios integrated in one service. Fourth, exploring potential income through non-credit services, such as increasing transactions in the treasury business and foreign exchange services. This is also an effort to diversify products. Then finally, focus on unorganic business growth through KUB with several BPD candidates.

According to Busrul, one of the concrete examples of strengthening BJTM's captive market business is through a marketplace called JATIM BEJO (East Java Online Shopping). This is done as a form of full support to increase economic growth, digital economy, and increase the utility of BJTM digital services for both transactional and lending. In addition, bankjatim also provides transactional services and provides credit facilities for Local Government partners / contractors in the procurement of household needs. "Strengthening the BJTM Captive Market in a resilient ecosystem also includes several things such as National Strategic Projects in the East Java region, Infrastructure Development which is the domain of the Regional Government, and Regional Public Service Agencies (BLUD) & State-Owned Legal Entities (Universities) which are also BJTM's goals in 2024," he explained.

Busrul explained that management is committed to always trying to create value creation so that the company can continue to grow as a regional business entity that is oriented on a broader scale. One of them is through unorganic growth. Responding to the discourse of the OJK related to the ownership of BPR owned by the local government, Busrul continued, bankjatim already has a business model for cooperation with BPR in East Java region called APEX BPR Bank Jatim. Cooperation that has been running so far includes the function of pooling of funds, financial assistance such as mismatch funds and linkage programs, as well as technical assistance such as the provision of IT & product development and HR training. "In total, the number of APEX BPR Bank Jatim members amounted to 98 BPR (owned by local government and / or non-local government) with outstanding loans specifically for BPR owned by local government amounted to Rp 22.7 billion. Then the thing that is still ongoing at this time and continues to show progress is KUB with 3 BPD candidates, "he said.

On the other hand, one of the main supporting lines of bankjatim's business is the JCONNECT digital brand service. By carrying the tagline #SEMUABISADIMAJA, the entire utility of using JConnect services has increased quite massively. In the first quarter of 2024, JConnect Mobile already had 677,362 users. This figure increased by 25.77 percent (YoY). Meanwhile, the nominal transaction was recorded at Rp 4.9 trillion or grew 66.6 percent (YoY). "Then, our JConnect QRIS has also reached 151,404 users or an increase of 113.74 percent (YoY) with a nominal transaction of Rp 126.43 billion or an increase of 173.84 percent (YoY)," Busrul said.

Not enough there. To maximize banking services for areas that have great business potential, BJTM also optimizes services through Jatim Agents. Because, in addition to the utility of banking transactions, Agent Jatim also contributes to the growth of lending mainly through the referral method. "The number of Jatim Agents during the first 3 months of this year successfully grew 137.28 percent (YoY) to 8,815 users with nominal transactions of Rp 18.78 billion," added Busrul.

Thanks to the implementation of various strategic plans that have been carried out by bankjatim at the beginning of 2024, the company successfully scored a very positive performance on various fronts. In the first quarter of 2024, BJTM assets grew by 4.37 percent (YoY) or Rp 100.8 billion with a dominant contribution from an increase in productive assets. Namely lending rose 18.76 percent (YoY), DPK management increased 2.34 percent (YoY) with the largest contribution coming from the type of savings which grew 13.06 percent (YoY), and the management of the company's assets generated net interest income which grew 6.44 percent (YoY). "The growth in deposits occurred due to the disbursement of THR which had implications for increasing outstanding savings. Then net profit for 3 months at the beginning of 2024 managed to grow to Rp 310 billion," he explained.

Meanwhile, Arief added, bankjatim in the first quarter of 2024 was able to record excellent credit growth of 18.76 percent (YoY). This figure is above the national average growth of only 12.40 percent (YoY) with the composition of consumptive credit of Rp 31.3 trillion or an increase of 7.40 percent (YoY) and productive credit of Rp 25.6 trillion or an increase of 36.34 percent (YoY). The credit growth results cannot be separated from the transformation strategy that has been implemented since 2023. "We will continue to increase the number of Account Officers to increase credit growth in the productive sector. As for consumptive credit which is a captive market, it will still be maximized through the momentum of receiving ASN and P3K personnel, the moment of the Eid al-Fitr holiday, and increasing credit growth from the property sector to increase consumptive lending," he said.

While the increase in the productive credit sector was supported by high growth, especially from the micro segment which shot up 36.63 percent (YoY), the retail & medium segment which grew by 58.40 percent (YoY), and the corporate segment rose 17.97 percent (YoY). The increase in credit that bankjatim has achieved has made the company's financing to fund management ratio (LDR) even better. The LDR ratio in the first three months of 2024 was at 70 percent. Bankjatim's credit distribution was also followed by an improvement in loan quality. Seen from the Gross Non Performing Loan (NPL) ratio bankjatim sloping. Namely at 3.03 percent in the first quarter of 2023 to 2.82 percent in the first quarter of 2024. That means bankjatim credit quality is getting healthier and a sign of recovery from several economic sectors.

In addition to positive performance, throughout the first quarter of 2024 bankjatim also successfully won many awards from various events. Namely Indonesia Public Relations Awards (IPRA) 2024, National Press Day 2024, Top BUMD Award 2024, Indonesia Corporate Secretary & Communication Awards (ICCA) IX, 13th Infobank - Isentia Digital Brand Recognition 2024, and Digital Technology & Innovation Awards 2024.