JAKARTA - PT Bank Pembangunan Daerah Jawa Timur Tbk (BJTM) or commonly known as Bank Jatim, affirmed its commitment to continue distributing dividends to shareholders even though the company's net profit decreased in 2024.

Bank Jatim recorded a net profit of IDR 1.30 trillion in 2024, down 12% from IDR 1.47 trillion in 2023. This decline was caused by an 88% increase in provisioning or IDR1.27 trillion.

President Director of Bank Jatim, Busrul Iman, stated that the dividend policy is the authority of shareholders, especially the controlling shareholder, the East Java Provincial Government (Pemprov Jatim).

‘This is in accordance with the dividend policy that has been applied, which is 50-55% of net profit,’ said Busrul, in an information disclosure, Friday (21/3).

Despite the decline in profit, Busrul ensured that shareholders' interests remain a priority. He also hinted that the amount of dividends for the 2024 financial year has the potential to increase compared to previous years.

‘If you look at the history, of course the dividend will increase from time to time,’ he added.

As previously reported by IDNFinancials.com, Bank Jatim has consistently paid dividends since its initial public offering (IPO). In fact, the nominal dividend has continued to increase every year since 2013.

With lower profits in 2024, Bank Jatim may need to raise its dividend payout ratio (DPR) above 55%. For comparison, in the previous year, the nominal dividend per share was IDR54.39 with a DPR of 55.55%.

The final decision on dividends will be made at the General Meeting of Shareholders (GMS), which has been scheduled for 24 April 2025.(DK/LM)