JAKARTA - PT Bank IBK Indonesia Tbk (AGRS), the bank resulting from the merger between PT Bank Agris Tbk and PT Bank Mitraniaga Tbk, recorded a net profit of IDR 187 billion by the end of 2023. This figure is 80% year-on-year (yoy) higher than the achievement of net profit in 2022 of IDR 103 billion.

This surge was driven by an increase in outstanding loans of up to 16.5% year-on-year (yoy) in 2023 to IDR 9.4 trillion.

Most of the loans were granted as corporate loans, recorded at IDR7.87 trillion, followed by SME loans and consumer loans, amounting to IDR 1.48 trillion and IDR 36 billion, respectively.

Based on Bank IBK Indonesia's Public Expose today (13/2), corporate loans were seen to shoot the furthest, rising by 19.3% yoy.

As a bank under the Industrial Bank of Korea (IBK) group, management admits that the distribution of corporate loans will not only be centered on Korean companies operating in Indonesia.

"We do not differentiate between Korean and Indonesian corporations. Our focus will also be to increase the portion of loan distribution to Indonesian corporations," continued Oh In Taek, President Director of Bank IBK Indonesia, in Korean.

Meanwhile, in line with its strength in the corporate segment, Bank IBK Indonesia will also increase its consumer loans through the acquisition of the office worker target market

"We will add employee customers in a company to be able to use our products," continued Oh.

Speaking of credit targets, AGRS is targeting growth of around 34% yoy, or up to IDR 3 trillion, by the end of 2024. In the long term, the bank is even targeting loan growth of up to IDR 17 trillion by the end of 2025, and IDR 40 trillion by the end of 2030.

Along with that, the bank is also pushing for a massive increase in net profit, targeting IDR 400 billion in 2025 and IDR 1 trillion in 2030.

"We have very strong capital, which will be used to expand on the credit side, thus increasing our profit, especially from increased DIM and interest income," Oh explained.

Bank IBK Indonesia's capital adequacy ratio (CAR) is indeed very large. Until the end of 2022, its CAR is around 46%. (ZH/LM)