Allowance for impairment losses, which increased the provision fee up to 88.2% YoY, pushed down BBNI’s net profit by 41.6% YoY or to IDR 4.5 trillion in the 1H20 period. In the midst of this pressure, BBNI was able to distribute loans worth IDR 576.8 trillion or grew by 5% YoY. The increase in credit was supported by third party funds that rose 11.3%, with a strong growth in current account of 18.4% YoY. This credit growth was amidst the contraction of the domestic economy by 5.23% YoY during the 1H20 period. Meanwhile, BBNI’s interest income recorded at IDR 28.2 trillion, a slight decline of 1.5% YoY due to the large amount of restructuring and relaxation. However, because it succeeded in suppressing the Cost of Fund (CoF), BBNI’s net interest income still grew 1% YoY with PPOP down 1.9% YoY during the 1H20 period. This positive sentiment will boost BBNI’s NIM which currently decline by 40 bps.
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