JAKARTA - PT Bank KB Bukopin Tbk (BBKP), a private bank, now under KB Financial Group from South Korea, aims for new credit growth of 15% in 2024, which will be supported by the wholesale segment and Korean business ecosystem.

Shin Seng Hyup, Director of Finance of BBKP, mentioned that until the end of Q3 2023, the bank managed to distribute credit of up to IDR 43.96 trillion. “In general, credit grew 13.6% yoy at the end of Q3 2023,” he stated further.

Out of those disbursed credits, nearly half of them, 46.6% or IDR 20.48 trillion were dominated by the wholesale segment. “This segment shifted 12.9% year-on-year (yoy)," added Shin in Korean.

According to the explanation of the board of directors during 2023 Annual Public Expose of Bank KB Bukopin today (22/12), the bank is said to arrive at the last phase of its business transformation after being acquired by KB Kookmin Bank from South Korea in 2021.

“Out of the credits disbursed since 2021, our NPL is now at 0.50%,” claimed Shin. BBKP indeed still records quite high of an NPL rate, reaching 4.86%.

Some of the strategies have been implemented by BBKP to cut off bad loans through bulk sales, which had been carried out in 2022-2023.

“Our recovery result reaches IDR 10 trillion. The Loan-at-Risk (LAR) also dropped 23% yoy to 43.96%,” continued Shin.

Then, for the third-party funds (DPK), BBKP aims to score 10% jump in 2024. “We also aim for NIM to reach 1.5% next year, thus enabling the positive turnaround of our PPOP,” added Robby Mondong, Vice President Director of BBKP.

In the future, BBKP is reported to rely on wholesale segment and Korean Link Business Ecosystem under KB Financial Group, followed by its MSME and retail segments. (ZH)