Bank DBS Indonesia Records Net Profit of Rp1.69 trillion, Return on Equity Reaches 15.94% | Bahasa
Indonesia.27 Mar 2024.0 min read
This increase reflects the Bank's strong financial performance and efficient asset and capital management.
Indonesia, 27 Mar 2024 - PT Bank DBS Indonesia (“Bank”) achieved a record net profit of Rp1.69 trillion and excellent credit growth of 15 percent in the financial report for 2023.
In 2023, Bank DBS Indonesia managed to record an impressive net profit, showing strong growth compared to the previous year. Net profit jumped 87.83 percent or Rp790.17 billion, setting a record of Rp1.69 trillion, compared with Rp899.65 billion in 2022. The return on equity (ROE) also rose significantly to 15.94 percent from 9.94 percent in 2022 and the return on assets (ROA) rose to 2.06 percent from 1.21 percent last year. This increase reflects the Bank's strong financial performance and efficient asset and capital management. This satisfactory increase was driven mainly by increases in net interest income and other operating income.
President Director PT Bank DBS Indonesia Lim Chu Chong explained, ”The year 2023 is a year full of challenges such as geopolitical factors, pre-election periods, and a series of financial policies that affect various economic conditions in Indonesia. Nevertheless, Bank DBS Indonesia has improved its corporate efficiency and overall business volume. This is supported by the Bank’s taking appropriate strategic steps to develop a range of products and services as well as reflecting its strategic investment decisions and responsiveness to market dynamics. Aligning with the momentum of economic growth, Bank DBS Indonesia is committed to maintaining its liquidity health, including monitoring the direction and projections of interest-rate policy.”
In addition, net interest income increased 21.74 percent to Rp5,06 trillion along with a 79 basis point increase in Net Interest Margin (NIM) to 6,02 percent from 5.23 percent last year. This increase in net interest margin is the result of the Bank's efforts to implement its strategic policy in careful liquidity management amid changing market conditions.
Other operating revenues also experienced an increase of 54.79 percent in 2023, reaching Rp1.76 trillion compared to Rp1.14 trillion in the previous year. This increase was driven mainly by the rise in revenues from investment activities of securities and government bonds, which rose to Rp1 trillion in 2023 from Rp278.55 billion in the preceding year.
Furthermore, the Bank’s total assets climbed to Rp112.97 trillion, marking a significant increase of 13.79 percent from Rp99.28 trillion recorded in 2022. This growth was driven mainly by a rise in government bonds that rose 82.15 percent or Rp12.43 trillion to Rp27,56 trillion and loans granted that rose 14.98 percent to Rp63.44 trillion by 2023. Meanwhile, consumer reserves climbed to Rp84.27 trillion, representing a significant increase of 16.64 percent or Rp12.02 trillion from Rp72.25 trillion a year earlier.
In order to maintain business performance and growth, Bank DBS Indonesia continues to strive to increase credit in both corporate and retail sectors. In the corporate sector, credit increases are mainly attributable to Environment, Social, and Governance (ESG) loans. In 2023, the Bank has increased its ESG-based financing facilities for a total of Rp6.10 trillion, up from Rp1.12 trillion in the previous year. This reflects the Bank's commitment to support projects that take account of environmental, social, and good governance factors in responsible banking practices.
For the retail banking segment, the credit unit of the Consumer Banking Group (CBG) has increased by 24 percent from last year. By 2023, CBG contributed 18 percent to the total credit distribution and 47 percent to total bank fundraising by 2023. This achievement is supported by CBG's success in increasing the number of customers, as well as expanding business scale through a variety of initiatives that focus on developing new capacities and capabilities in achieving sustained growth.
Throughout 2023, in the CBG business segment, credit growth in almost all products, ecosystem lending, personal loans, and credit cards, increased by 60 percent, 28 percent, and 13 percent respectively, compared to 2022. Growth in the financing of personal loans and credit card products is supported through both conventional distribution channels and digital channels where there is an increase in the customer base and the number of credit card holders. While ecosystem lending growth is supported by the addition of ecosystem partners.
The digibank by DBS application has 1M+ downloads since it was launched in 2018. Through a series of innovations carried out in the last year, in 2023, digibank by DBS application has served more than 7.6 million transactions, up 7 percent from previous year, with a total transaction value of more than Rp59 trillion, up 14 percent respectively from 2022.
Additionally, the DBS IDEAL and DBS RAPID (Real Time Application Programming Interface/API by DBS) digital platform have managed nearly 100 million transactions by 2023. This digital platform can serve a wide range of transaction needs anywhere and at any time, from corporate customers to SMEs and fintechs. The value of the transaction reached more than Rp600 trillion with the volume growing by 96 percent.
This positive performance also provides healthy organic capital growth where the Capital Adequacy Ratio (CAR) has increased to 25.16 percent from last year, which was 23.58 percent. This achievement far exceeds the minimum requirements according to the Bank's risk profile, namely 10 percent, in addition to the buffer required by the Bank of 2.5 percent. This reflects a strong bank financing to support the business and asset growth of the Bank as well as provide resilience in a dynamic market environment.
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 15 consecutive years from 2009 to 2023. DBS Indonesia is ranked second in the top as World’s Best Bank in Indonesia for three consecutive years from 2020 to 2022.
Established in 1989 as part of the Singapore-based DBS Group, PT Bank DBS Indonesia (Bank DBS Indonesia) is one of the banks with the longest history in Asia. Currently operating 1 Head Office, 13 Branch Offices, 16 Assistant Offices and 4 Functional Offices and 3,011 active employees in 15 Major Cities in Indonesia, Bank DBS Indonesia provides comprehensive banking services in the corporate, SME and consumer banking segments that focuses on the customer experience to 'Live more, Bank less'. We also see a purpose beyond banking and are committed to supporting our customers, employees and the community towards a sustainable future.
PT Bank DBS Indonesia is licensed and supervised by The Indonesian Financial Services Authority (OJK), and an insured member of Indonesia Deposit Insurance Corporation (LPS).
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
In 2023, Bank DBS Indonesia managed to record an impressive net profit, showing strong growth compared to the previous year. Net profit jumped 87.83 percent or Rp790.17 billion, setting a record of Rp1.69 trillion, compared with Rp899.65 billion in 2022. The return on equity (ROE) also rose significantly to 15.94 percent from 9.94 percent in 2022 and the return on assets (ROA) rose to 2.06 percent from 1.21 percent last year. This increase reflects the Bank's strong financial performance and efficient asset and capital management. This satisfactory increase was driven mainly by increases in net interest income and other operating income.
President Director PT Bank DBS Indonesia Lim Chu Chong explained, ”The year 2023 is a year full of challenges such as geopolitical factors, pre-election periods, and a series of financial policies that affect various economic conditions in Indonesia. Nevertheless, Bank DBS Indonesia has improved its corporate efficiency and overall business volume. This is supported by the Bank’s taking appropriate strategic steps to develop a range of products and services as well as reflecting its strategic investment decisions and responsiveness to market dynamics. Aligning with the momentum of economic growth, Bank DBS Indonesia is committed to maintaining its liquidity health, including monitoring the direction and projections of interest-rate policy.”
In addition, net interest income increased 21.74 percent to Rp5,06 trillion along with a 79 basis point increase in Net Interest Margin (NIM) to 6,02 percent from 5.23 percent last year. This increase in net interest margin is the result of the Bank's efforts to implement its strategic policy in careful liquidity management amid changing market conditions.
Other operating revenues also experienced an increase of 54.79 percent in 2023, reaching Rp1.76 trillion compared to Rp1.14 trillion in the previous year. This increase was driven mainly by the rise in revenues from investment activities of securities and government bonds, which rose to Rp1 trillion in 2023 from Rp278.55 billion in the preceding year.
Furthermore, the Bank’s total assets climbed to Rp112.97 trillion, marking a significant increase of 13.79 percent from Rp99.28 trillion recorded in 2022. This growth was driven mainly by a rise in government bonds that rose 82.15 percent or Rp12.43 trillion to Rp27,56 trillion and loans granted that rose 14.98 percent to Rp63.44 trillion by 2023. Meanwhile, consumer reserves climbed to Rp84.27 trillion, representing a significant increase of 16.64 percent or Rp12.02 trillion from Rp72.25 trillion a year earlier.
In order to maintain business performance and growth, Bank DBS Indonesia continues to strive to increase credit in both corporate and retail sectors. In the corporate sector, credit increases are mainly attributable to Environment, Social, and Governance (ESG) loans. In 2023, the Bank has increased its ESG-based financing facilities for a total of Rp6.10 trillion, up from Rp1.12 trillion in the previous year. This reflects the Bank's commitment to support projects that take account of environmental, social, and good governance factors in responsible banking practices.
For the retail banking segment, the credit unit of the Consumer Banking Group (CBG) has increased by 24 percent from last year. By 2023, CBG contributed 18 percent to the total credit distribution and 47 percent to total bank fundraising by 2023. This achievement is supported by CBG's success in increasing the number of customers, as well as expanding business scale through a variety of initiatives that focus on developing new capacities and capabilities in achieving sustained growth.
Throughout 2023, in the CBG business segment, credit growth in almost all products, ecosystem lending, personal loans, and credit cards, increased by 60 percent, 28 percent, and 13 percent respectively, compared to 2022. Growth in the financing of personal loans and credit card products is supported through both conventional distribution channels and digital channels where there is an increase in the customer base and the number of credit card holders. While ecosystem lending growth is supported by the addition of ecosystem partners.
The digibank by DBS application has 1M+ downloads since it was launched in 2018. Through a series of innovations carried out in the last year, in 2023, digibank by DBS application has served more than 7.6 million transactions, up 7 percent from previous year, with a total transaction value of more than Rp59 trillion, up 14 percent respectively from 2022.
Additionally, the DBS IDEAL and DBS RAPID (Real Time Application Programming Interface/API by DBS) digital platform have managed nearly 100 million transactions by 2023. This digital platform can serve a wide range of transaction needs anywhere and at any time, from corporate customers to SMEs and fintechs. The value of the transaction reached more than Rp600 trillion with the volume growing by 96 percent.
This positive performance also provides healthy organic capital growth where the Capital Adequacy Ratio (CAR) has increased to 25.16 percent from last year, which was 23.58 percent. This achievement far exceeds the minimum requirements according to the Bank's risk profile, namely 10 percent, in addition to the buffer required by the Bank of 2.5 percent. This reflects a strong bank financing to support the business and asset growth of the Bank as well as provide resilience in a dynamic market environment.
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 15 consecutive years from 2009 to 2023. DBS Indonesia is ranked second in the top as World’s Best Bank in Indonesia for three consecutive years from 2020 to 2022.
Established in 1989 as part of the Singapore-based DBS Group, PT Bank DBS Indonesia (Bank DBS Indonesia) is one of the banks with the longest history in Asia. Currently operating 1 Head Office, 13 Branch Offices, 16 Assistant Offices and 4 Functional Offices and 3,011 active employees in 15 Major Cities in Indonesia, Bank DBS Indonesia provides comprehensive banking services in the corporate, SME and consumer banking segments that focuses on the customer experience to 'Live more, Bank less'. We also see a purpose beyond banking and are committed to supporting our customers, employees and the community towards a sustainable future.
PT Bank DBS Indonesia is licensed and supervised by The Indonesian Financial Services Authority (OJK), and an insured member of Indonesia Deposit Insurance Corporation (LPS).
DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
