Jakarta – Bank of China Jakarta Branch posted an impressive profit performance throughout 2024, with net profit rising sharply by 24.76 percent year-on-year (yoy) to IDR 1.65 trillion. This growth far exceeds the Indonesian banking industry’s average net profit growth of just 4.88 percent.
According to the bank’s published financial report on Wednesday, April 16, 2025, the strong profit growth under the leadership of Country Manager Sun Shangbin was primarily driven by a 25.16 percent increase in interest income, which rose to IDR 3.98 trillion. This was supported by an aggressive credit expansion strategy and optimal management of productive assets. Meanwhile, interest expenses grew by 23.73 percent to IDR 1.06 trillion—slower than the growth in interest income—positively contributing to the bank’s profitability.
This solid performance is also reflected in the 25.69 percent increase in net interest income (NII), which reached IDR 2.92 trillion. The bank’s net interest margin (NIM) rose from 3.94 percent to 4.22 percent, highlighting Bank of China Jakarta Branch’s improved effectiveness in managing its earning assets and boosting efficiency in generating interest income from lending activities.
Operational efficiency further strengthened, as shown by a decline in the operating expense to operating income ratio (BOPO) from 52.90 percent to 49.90 percent, significantly below the industry average of 81.30%. This reflects the bank’s strong cost control despite an increase in business activity.
On the intermediation front, the bank also outperformed the industry. Third-party funds (TPF) rose by 10.24 percent yoy to IDR 51.46 trillion, surpassing the industry average growth of 4.48 percent. TPF was dominated by low-cost funds (demand and savings deposits), which rose 12.28 percent to IDR 44.07 trillion, lifting the low-cost funds ratio from 84.10 percent to 85.65 percent. This provided the bank with a more competitive cost of funds, strengthening its long-term profitability.
Meanwhile, Bank of China Jakarta Branch’s loan disbursement soared by 17.07 percent to IDR 22.44 trillion, well above the industry’s 10.52 percent growth. Although the gross non-performing loan (NPL) ratio rose from 0.90 percent to 3.55 percent, it remained safely below the regulatory threshold of 5 percent, with net NPLs recorded at zero. This indicates the bank maintained reliable credit asset quality even amid aggressive lending.
Overall, total assets grew 6.49 percent to IDR 68.75 trillion, slightly higher than the banking industry’s 5.91% average. This increase reflects healthy business expansion supported by consistent intermediation strategy and operational efficiency.
In terms of other financial ratios, return on assets (ROA) improved from 2.79 percent to 3.04 percent, while return on equity (ROE) rose from 13.24 percent to 14.20 percent, indicating increasingly productive capital utilization. The loan to deposit ratio (LDR) edged up from 41.07 percent to 42.89 percent, showing that there remains ample room for loan growth without compromising liquidity.
According to Infobank Institute, the stellar 2024 performance of Bank of China Jakarta Branch reaffirms its position as one of the most solid and efficient foreign banks in Indonesia, capable of not only competing with but also outperforming the broader domestic banking industry. (*) Ari Nugroho
