4Q17’s Performance Review
BJTM posted the interest income of IDR1.2 trillion at its equal level to 4Q16’s interest income. Nonetheless, the net interest income was weaker by 6% y-y from IDR919 billion into IDR861 billion, and the net profit chipped away 24% from IDR192 billion into IDR145 billion. The downbeat net profit was mainly attributable to the increment in operational cost from IDR560 billion into IDR618 billion.

Massive Restructuring Requiring Another Work
BJTM reaped such success from restructuring process it undergoes as the chipping away NPL from 4.8% in 2016 into 4.6% in 2017. Of note, the takeaway driver for plummeting NPL was the downbeat credit distribution in the non-consumer sector. In 2017, the total credit distribution buoyed only 7.0%, weaker than the industrial buoy of 8.2%.

From the funding outlook, BJTM succeeded to posting the surge of 21.5% in the third party fund into IDR39.8 trillion. Nonetheless, the time deposit surging 68% into IDR12.0 trillion was the potent contributor to the increment in the third party fund. Besides, ratio loan-to-deposit also dramatically plummeted from 90% in 2016 into 80% in 2017. A substantial amount of liquidity yet lack of credit distribution is a setback in the profit growth acceleration.

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