Bank QNB Indonesia Shows Positive Performance, Records Higher Profit Compared to Last Year
30 October 2023 – Amidst the recovery of global economy, which was still clouded with challenges and uncertainties, PT Bank QNB Indonesia Tbk (“Bank”) succeeded to once again record a positive performance. The Bank recorded a growth in profit of IDR65.51 billion in Q3/2023. This figure soars 119% compared to the same period last year.
“The Bank succeeded to turnaround the 2022 financial performance, which was very challenging, into a positive performance since early 2023. This further reinforce the Bank’s successful efforts in implementing a number of strategies and steps to strengthen its fundamental condition,” said Haryanto Suganda, President Director PT Bank QNB Indonesia Tbk.
Several factors contributed to Bank QNB Indonesia’s profit growth, one of which was that the Bank had the opportunity to optimise its financial position. This resulted in net interest margin (NIM) improvement. The Bank’s NIM grew 64 basis point (bps) year on year (yoy) to 3.79% in Q3/2023. Moreover, the net interest income (NII) also grew 18% to IDR401.45 billion from IDR341.54 billion in the same period last year.
In Q3/2023, the Bank also succeeded to maintain its non-performing loan (NPL) ratio of 0.95%. This figure was lower than the NPL ratio of the banking industry of 4.95% as of July 20231. With the improving of NPL ratio, the Bank also succeeded to optimise the provisioning expenses. As a result, the Bank’s operating expenses to operating income ratio experienced a decline of 4625 bps to 93.09% in this quarter from 139.34% in the same period last year.
“Moving forward, the Bank will continue to disburse loans carefully and selectively as well as controlling the NPL ratio and provision in order to mitigate credit risk potential in the future. We believe that this will help the Bank in maintaining a sustainable profitability,” added Haryanto.
In line with the profit growth, the Bank also recorded growth in return on asset (ROA) to 0.58% and return on equity (ROE) to 2.09%. ROA and ROE grew 338 bps and 1620 bps from the previous year, respectively.
On the other side, Bank QNB Indonesia also succeeded to maintain its liquidity remained healthy. This was reflected among which through the liquidity coverage ratio (LCR) of 502.01% and net stable funding ratio (NSFR) of 199.46% in Q3/2023. Both ratios were above the regulator’s minimum requirement of 100%.
The positive performance of Bank QNB Indonesia was also due to the full support from QNB Group, the largest banking institution in the Middle East and Africa region. The support from QNB Group as the controlling shareholder were given in various forms, including by strengthening the capital structure of Bank QNB Indonesia.
This year, Bank QNB Indonesia had completed the corporate action of right issue, which aimed to strengthen the Bank’s capital structure. Through bigger working capital, Bank QNB Indonesia will have sufficient funding to carry out its strategy and grow its business in the future.
The Bank’s stronger capital structure further maintained the capital adequacy ratio (CAR) at a healthy level of 58.40% as of September 2023. This showed that the Bank possessed a strong expansion capability.
“Having been serving the Indonesian market for more than 110 year, Bank QNB Indonesia has a long-term commitment to be the partner of customers for the long run. Our commitment is realised through our efforts in strengthening the Bank’s business and fundamental to achieve sustainable growth, ensuring the Bank’s governance is enhanced, and driving innovation on our products and services to stay relevant in responding to customers’ ever-changing needs,” said Haryanto.
About Bank QNB Indonesia
PT Bank QNB Indonesia Tbk was established in Medan in 1913 under the name NV Chunghwa Sangyeh Maatschappij and later in 1965 known as PT Bank Kesawan. In 2011, the Bank strengthened its capital structure through the rights issue that made QNB Group the controlling shareholder and changed its name to PT Bank QNB Kesawan Tbk, and later, in 2014, PT Bank QNB Indonesia Tbk. As part of the QNB Group, QNB Indonesia has become one of Indonesia's leading international banks, offering a wide range of innovative products and services to the corporate and mass affluent retail segment.
About QNB Group
QNB Group is the largest banking institution in the Middle East and Africa (MEA). QNB Group provides a comprehensive range of advanced products and services. The total number of employees is 30,000, operating through 900 locations, with an ATM network of 4,800 machines.