Saturday, 18 Augst 2018 | 07:43 WIB

Bank MNC Posts Net Profit Surge to IDR94.8 Bln in Q1 2018

Bank MNC Posts Net Profit Surge to IDR94.8 Bln in Q1 2018.

JAKARTA, NNC - PT Bank MNC Internasional Tbk (IDX:BABP) posted a net profit of IDR94.8 billion in the first quarter of 2018 or an increase by 294 percent over the same period in 2017. This positive performance is part of the effort to improve the quality of credit, to keep the main business income properly and recovery of non-performing assets in accordance with the strategic plan.

"Of course this momentum will be utilized to continuously improve every potential business and always increase the quality of credit and our operations," said President Director of Bank MNC Benny Purnomo in Jakarta, Tuesday (5/15/2018).

The positive performance of Bank MNC in the first quarter of 2018 compared to the same period in 2017 was supported by a sharp increase from the company's operating profit which reached IDR126.6 billion as of March 31, 2018 or soaring 295 percent (YOY).

From several operational instruments, the recovery of CKPN (impairment loss reserves) became the main contributor amounting to IDR70.204 billion, followed by provision and commission income from non-credit transactions of IDR23.750 billion and other operating income of IDR87.755 billion.

In terms of financial ratios, the bank's success in maintaining credit quality is evident from the decline in Gross NPL ratio from 7.23 percent as of December 31, 2017 to 5.76 percent as of March 31, 2018.

Meanwhile the ratio of non-performing productive assets to the total productive assets also decreased from 5.08 percent as of December 31, 2017 to 4.13 percent as of March 31, 2018. In addition, the bank managed to increase efficiency of operating costs seen from OEOI ratio decline from 121.51 percent per March 31, 2017 to 69.39 percent as of March 31, 2018.

In terms of capital, the Ratio of Minimum Capital Adequacy Ratio (CAR) of 12.58 percent as of December 31, 2017 became 14.59 percent as of March 31, 2018 due to the recovery of assets and capital payments and earnings. The bank's capital process will be strengthened again since the bank is in the process of rights issue with a maximum value of IDR489 billion.

With a strong core capital, the bank will be better able to run the second phase of the transformation of focusing the business more freely. This makes Bank MNC more stable to increase market penetration to consumer and retail segments supported by commercial and corporate segments.

"The strength in the capital side, the return of the bank's positive performance, the strengthening of synergy with all MNC Group business units and the growing middle class population of Indonesia make us believe Bank MNC's business and profitability continue to increase throughout 2018," he concluded.