26 JULY 2018
Post Rp 98.7 Billion Profit In 2nd Quarter 2018, MNC Bank Continues Positive Performance
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JAKARTA - PT Bank MNC International Tbk managed to improve the positive performance of its 2018's first quarter. Bank's net income in the second quarter or first 6 months of 2018 amounted to Rp 98.7 billion, an increase of 292% over the same period in 2017.
Funding & Lending Business Head of MNC Bank, EVP Ageng Purwanto said the profit growth is driven by rapid increase of bank operating profit that reaches Rp 132 billion or an increase of 259% from the same period in previous year. Of all operational components, the recovery of allowance for impairment losses amounted to Rp 62.9 billion and other operating income of Rp 108.8 billion became the main contributor of profit growth, followed by provision and commission income of Rp 52.3 billion and Allowance for impairment losses reduction of 96.15 %. Allowance for impairment losses recovery is a reflection of the bank's progress in improving credit quality and applying prudential principles in all aspects of the business.
"This positive result is part of the bank's efforts to improve credit quality, keep the main business income well, and the recovery of bad assets in accordance with the Bank's strategic plan," Ageng said in a press statement on Thursday (26/7) in Jakarta.
From the funding structure, the Bank managed to raise low-cost funds of Rp 1.8 trillion with the ratio of low-cost funds to total third party funds recorded at 23.04%, these value increased by 5.9% from the same period last year.
In terms of financial ratios, the Bank's success in maintaining credit quality was reflected in the decrease in NPL Nett ratio to 2.88% in Quarter II / 2018 from 3.87% in the same period of the previous year. In addition, the Bank managed to increase its operational efficiency by decreasing its operational efficiency ratio from 113.67% per June 30, 2017 to 80.65% as of June 30, 2018. Along with the increase in the low cost ratio, the NIM ratio increased to 3.7% from 3.38% over the same period the previous year.
"The continuation of Bank's performance in a positive direction is due to the solid foundation that has been built and hard work of the entire team, in addition to strengthening synergies with all MNC Group business units. It gives us more leeway in conducting the second phase of transformation in focusing the business. This makes MNC Bank more able to increase market penetration to consumer and retail segment supported by commercial and corporate segment, so that business and profitability MNC Bank continue to increase throughout 2018. " closes Ageng Purwanto.