Jakarta – Bank IBK Indonesia, led by President Director Oh In Taek, posted a solid performance through the end of March 2025, recording a net profit of IDR 54.58 billion. This represents an 18.88 percent year-on-year (yoy) increase compared to IDR 45.91 billion in the same period last year.
According to its financial report published on Wednesday, April 30, 2025, this profit growth was achieved despite a significant 32.36 percent drop in interest income, which fell to IDR 350.89 billion. The decline was offset by substantial efficiency in interest expenses, which were slashed by 49.97 percent to IDR 191.68 billion. As a result, net interest income rose by 17.34 percent to IDR 159.21 billion.
The positive performance in net interest income served as the main foundation for Bank IBK Indonesia’s profit growth, while also reflecting the bank’s effectiveness in managing its productive assets. This is further supported by the improvement in its net interest margin (NIM), which increased from 2.93 percent to 3.17 percent.
On the other hand, the bank also recorded a 20.61 percent increase in other operating expenses, rising to IDR 92.69 billion. Nevertheless, this was mitigated by overall improved efficiency, as indicated by the decline in the operating expenses to operating income ratio (BOPO), which dropped from 91.11 percent to 82.80 percent. This decrease signals that Bank IBK Indonesia is becoming more efficient in running its operational activities.
In terms of intermediation, Bank IBK Indonesia delivered strong results, with loan disbursement growing significantly by 37.97 percent yoy, from IDR 9.40 trillion to IDR 12.97 trillion. This outpaced the 4.86 percent growth in third-party funds, which increased to IDR 10.09 trillion. Consequently, the loan to deposit ratio (LDR) surged from 97.69 percent to 128.54 percent, indicating an aggressive lending strategy. However, the high LDR should also be monitored as it may pose short-term liquidity risks.
Credit quality remained within the regulator’s safe limits, with gross non-performing loans (NPL) increasing from 1.42 percent to 1.93 percent, and net NPL rising from 0.90 percent to 1.33 percent. Despite the increase, both ratios remain well below the 5 percent threshold set by authorities, indicating that credit quality remains well managed amidst the bank’s rapid expansion.
On the funding side, third-party funds rose 4.86 percent to IDR 10.09 trillion, consisting of a notable 24.52 percent increase in current accounts (giro) to IDR 1.16 trillion, a 5.31 percent increase in time deposits to IDR 6.01 trillion, and a 2.21 percent decline in savings accounts to IDR 2.91 trillion. Low-cost funds (current and savings accounts) grew moderately by 4.19 percent to IDR 4.08 trillion. This moderate growth suggests that challenges in attracting low-cost funding remain a concern going forward.
In terms of total assets, Bank IBK Indonesia recorded an 11.35 percent yoy increase—from IDR 19.35 trillion to IDR 21.54 trillion—signaling healthy asset expansion in line with growing lending activity.
On the capital side, the bank’s core capital increased by 3.22 percent to IDR 5.52 trillion. However, its capital adequacy ratio (CAR) declined significantly from 45.90 percent to 36.40 percent. Despite the drop, this level remains well above the regulatory minimum, reflecting a strong capital position to support continued growth.
Other financial ratios also showed improvement. Return on assets (ROA) increased from 0.94 percent to 1.26 percent, indicating improved efficiency in asset utilization. Likewise, return on equity (ROE) rose from 3.43 percent to 3.96 percent, highlighting the bank’s growing ability to generate value from its available capital.
Overall, the Infobank Institute views Bank IBK Indonesia’s Q1 2025 performance as solid across profitability, efficiency, and intermediation functions, while maintaining sound asset quality and a robust capital base. The bank successfully delivered healthy net profit growth despite pressure on interest income, thanks to cost efficiencies and prudent credit management. (*) Ari Nugroho
