JAKARTA – PT Bank of India Indonesia Tbk (BSWD) or BOII has unveiled its 2025 business performance targets, aiming for a 15% year-on-year (yoy) increase in lending.

Based on BOII's Public Expose results, as quoted today (2/1), the bank expects a 15% yoy growth in loans this year, up from the projected 11% yoy increase for 2024.

As of the end of November 2024, BOII recorded loan disbursement of IDR 3.97 trillion, up 6.71% year-to-date (ytd) from IDR 3.72 trillion recorded at the end of December 2023.

In other words, BOII is targeting loan growth to IDR 4.12 trillion by the end of 2024 and further to IDR 4.74 trillion by the end of 2025.

In order to achieve this, BOII plans to introduce a simpler, faster, and more efficient lending system focused on the retail sector.

“In addition, the bank will work with other parties to increase credit access and improve its mobile banking app to attract more customers,” management explained.

However, BOII's cheap funds (current accounts and savings accounts) remain slim, reaching only IDR 577.36 billion by November 2024, while deposits stood at IDR 2.42 trillion.

As a result, the bank's Loan-to-Deposit Ratio (LDR) swelled to 132.14% in November 2024, while the Capital Adequacy Ratio (CAR) decreased to 91.46%.

"For 2025, BOII aims to increase the proportion of cheap funds to 25% of total third-party funds (DPK)," the bank stated. The strategy includes enhancing digital services, such as mobile banking and QRIS.

Despite these challenges, the bank is confident that its growing loan portfolio will significantly boost net profit.

“Despite the issue of VAT increasing to 12%, BOII is optimistic about achieving 100% net profit growth by the end of 2025,” the management stated during the Public Expose.

By November 2024, BOII had already posted a net profit of IDR 70.68 billion, soaring 44.74% ytd from IDR 48.83 billion in December 2023. (ZH)