Jakarta – Bank Mizuho Indonesia reported positive profit growth in 2024 despite facing operational efficiency pressures. According to its published financial statement on Tuesday, April 8, 2025, the bank posted a net profit of IDR 1.38 trillion, up 1.51 percent year-on-year (YoY) from IDR 1.36 trillion in 2023. This growth lags behind the Indonesian banking industry’s average profit growth of 4.88 percent. Nevertheless, the bank, led by President Director Ken Matsuo, demonstrated resilience amid a dynamic economic landscape.
The Japanese bank’s profit increase was primarily supported by significant growth in interest income. Throughout 2024, interest income rose 18.06 percent YoY to IDR 5.03 trillion. However, this was accompanied by a 21.82 percent increase in interest expenses, reaching IDR 2.65 trillion. Despite the rising costs, Bank Mizuho Indonesia managed to book a 14.16 percent increase in net interest income (NII), growing from IDR 2.08 trillion to IDR 2.39 trillion.
In terms of efficiency, the bank experienced a substantial surge in other operating expenses, which rose 74.46 percent from IDR 338.48 billion to IDR 590.51 billion. This significantly impacted the bank’s efficiency ratio, with its operating expense to operating income ratio (BOPO) increasing from 63.88 percent to 67.09 percent.
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Credit (loan) performance deserves recognition, with outstanding loans growing 8.51 percent YoY—from IDR 57.98 trillion to IDR 62.91 trillion. While this is slightly below the industry average of 10.52 percent, Bank Mizuho Indonesia’s solid credit expansion reflects its ongoing commitment to supporting real sector financing in Indonesia. Furthermore, credit quality remained sound and well within the regulatory threshold of 5 percent, with gross non-performing loans (NPL) at 1.41 percent and net NPL at 0.27 percent.
On the funding side, third party funds (DPK) were virtually flat, recording a marginal 0.00 percent increase and staying around IDR 41.26 trillion. A breakdown shows a 3.29 percent decline in demand deposits, a 2.63 percent increase in savings, and a slight 0.13 percent drop in time deposits. This underwhelming growth stands far below the banking industry’s average third party funds growth of 4.48 percent, highlighting challenges in maintaining liquidity balance and supporting future credit expansion.
Despite the stagnation in third party funds, the bank recorded a healthy 7.31 percent increase in total assets, rising from IDR 82.31 trillion to IDR 88.33 trillion—outpacing the industry’s asset growth average of 5.91 percent. This demonstrates the bank’s solid asset portfolio management and disciplined expansion.
In terms of capital strength, Bank Mizuho Indonesia also saw its core capital grow by 7.33 percent to IDR 17.1 trillion. Its capital adequacy ratio (CAR) remained robust at 34.55 percent, far above the minimum regulatory requirement. Meanwhile, its loan-to-deposit ratio (LDR) stood at a high 147.58%, reflecting aggressive credit disbursement relative to funding.
Some profitability ratios experienced a slight decline. Return on assets (ROA) fell from 2.24 percent to 2.04 percent, and return on equity (ROE) dropped from 8.88 percent to 8.32 percent Net interest margin (NIM) also edged down slightly from 2.96 percent to 2.94 percent, reflecting the impact of increased interest and operating expenses on the bank’s profit margins.
Overall, the Infobank Institute views Bank Mizuho Indonesia’s 2024 performance as relatively stable, particularly in terms of profit, lending, and asset growth. However, the bank still faces challenges, especially in improving operational efficiency and boosting third party funds growth. Nonetheless, its strong capital structure and sound asset quality provide a solid foundation for sustainable growth going forward. (*) Ari Nugroho
