17 MAY 2018
MNC Bank Post Rp 94.8 Billion on Profit in First Quarter 2018
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JAKARTA - PT Bank MNC Internasional Tbk started 2018 with a positive performance. The bank posted a profit of Rp 94.8 billion in the first quarter of 2018 or an increase of 294% over the same period in 2017.
"The positive performance in this first quarter is supported by the hard work of all elements of the Bank, and maintenance of customer trusts. This positive outcome is part of efforts to improve credit quality, keep key business revenues sound, and recovery of non performing assets in line with Bank's strategic plan. Of course this momentum will be utilized to continuously improve every business potential and improve both quality of credit and our operations "said MNC Bank President Director , Benny Purnomo in Jakarta (15/5). The positive performance of MNC Bank 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 Rp 126.6 billion as of March 31, 2018 or increased by 295% (YoY). From several operational instruments, the recovery of allowance for impairment losses became the main contributor of Rp 70.204 billion, followed by provision and commission income from non-credit transactions of Rp 23.750 billion and other operating income of Rp 87.755 billion.
In terms of financial ratios, the Bank's success in maintaining credit quality is evident from the decline in NPL Gross ratio from 7.23% as of December 31, 2017 to 5.76% as of March 31, 2018. While the ratio of productive earning assets to total earning assets also decreased from 5, 08% as of December 31, 2017 to 4.13% as of March 31, 2018. In addition, the Bank managed to increase its operating cost efficiency shown by its BOPO ratio from 121.51% as at 31 March 2017 to 69.39% as of March 31, 2018. In terms of capital, the Capital Adequacy Ratio (KPMM) of 12.58% as of December 31, 2017 in comparison to 14.59% as of March 31, 2018 is a result of assets recovery and capital injection as well as earnings.
The Bank capital will be strengthen again as the Bank is in the process Rights Issue with a maximum value of Rp 489 billion. With a strong core capital, the Bank will be better able to implement its second phase of the transformation of focusing the business. This makes MNC Bank able to increase its market penetration to consumer and retail segments supported by commercial and corporate segments. "The strengthening of capital, the resumption of the Bank's performance in a positive direction, increased synergy with all MNC Group business units and the growing middle class population of Indonesia, makes us believe MNC Bank's business and profitability continues to increase throughout 2018." Benny Purnomo said.