Bank QNB Indonesia Maintains Positive Performance and Closes 2023 by Posting Profit Growth
1 March 2024 – PT Bank QNB Indonesia Tbk (“Bank”) continued its positive performance in 2023 and succeeded in recording profit for the financial year 2023. Amidst the economic condition that was not yet stable, the Bank managed to book a net profit of IDR69.2 billion.
The Bank’s net profit was supported by the increase in net interest income (NII) among others. Until the end of the year, the Bank’s NII was recorded to increase by 15% year on year (yoy), reaching IDR525.64 billion from IDR456.28 billion the previous year. In line with this, the Bank also recorded a growing net interest margin (NIM) of 3.83% or up by 0.64% yoy.
“The recovery of the Bank’s performance post the Covid-19 pandemic has been seen since the beginning of 2023 and we succeed to maintain this position by implementing several steps and adjusting our strategies to strengthen the Bank’s fundamental condition. As a result, the Bank’s performance is now on track,” said Haryanto Suganda, President Director of PT Bank QNB Indonesia Tbk. “Moving forward, we strive to continue this positive momentum and to achieve a solid growth and sustainable financial performance.”
Entering the global political year, Bank QNB Indonesia was still cautious of the increased credit risk, including the increase in the non-performing loan (NPL). Therefore, the Bank continued to disburse loans very carefully and selectively. Prudent credit management by the Bank further supported a well-maintained NPL ratio of 0.77% in this period.
With a well-maintained NPL ratio, the Bank’s provisioning expenses declined. This resulted in the Bank’s operating expenses to operating income ratio to drop by 40% to 94.53% in 2023 compared to last year, which reached 134.6%.
In line with profit growth, the Bank continued to record a growing return on asset (ROA) to 0.48% and return on equity (ROE) to 1.65%.
On the other side, Bank QNB Indonesia also succeeded to maintain its liquidity remained healthy. One of which was showcased by its liquidity coverage ratio (LCR) that reached 465.3% and net stable funding ratio (NSFR) that reached 190.59% as of December 2023. Both ratios are well above the regulator’s minimum requirement of 100%.
Supported by QNB Group, the largest banking institution in the Middle East and Africa, Bank QNB Indonesia continued to strengthen its capital structure in order to implement its strategies and grow its business in the future.
The Bank’s stronger capital structure further supported the Bank’s capital adequacy ratio (CAR) to stay at a healthy level of 62.23% as of December 2023. This showed that the Bank possessed a strong expansion capability.
“Bank QNB Indonesia’s positive performance in 2023 is achievable with the support of our customers, employees, and stakeholders, especially the Bank’s controlling shareholder, QNB Group. Therefore, on behalf of the Management of Bank QNB Indonesia, we would like to thank you for your trust and support. Moving forward, our commitment remains the same, which is to provide banking services with added value and that focus on customers. We will top this with enhanced corporate governance to ensure better services for our customers,” said Haryanto.
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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.
