Bank QNB Indonesia’s Profit Rises 26.99 Percent in Q1 2025, Driven by Operational Efficiency and Strong Intermediation

Jakarta – Bank QNB Indonesia posted a strong performance in the first quarter of 2025, recording a net profit of IDR 11.47 billion, an increase of 26.99 percent year-on-year (yoy) from IDR 9.03 billion in the same period last year. The profit growth was supported by improved cost efficiency and controlled operational expenses, despite a decline in net interest income.

According to the published report quoted on Friday, May 9, 2025, interest income grew modestly by 3.56 percent to IDR 193.14 billion from IDR 186.50 billion. However, interest expenses surged by 32.42 percent from IDR 65.65 billion to IDR 86.94 billion, leading to a 12.12 percent drop in net interest income, which fell from IDR 120.84 billion to IDR 106.20 billion in the first quarter of 2025.

Despite the contraction in net interest income, operational efficiency became the key to the improved profit performance of the bank led by President Director Nick Groene. Other operational expenses were successfully reduced by 15.22 percent to IDR 94.80 billion. This was reflected in the bank’s efficiency ratio (BOPO), which improved from 95.91 percent to 94.84 percent, indicating that Bank QNB Indonesia has become more efficient in carrying out its operations.

In terms of intermediation function, Bank QNB Indonesia showed solid growth. Third-party funds (TPF) increased by 4.91 percent to IDR 6.77 trillion, primarily driven by a 9.92 percent increase in time deposits. However, demand deposits and savings experienced declines of 17.12 percent and 2.51 percent respectively.

Loan disbursement grew significantly by 25.65 percent, from IDR 6.50 trillion to IDR 8.17 trillion. Loan quality remained within the safe threshold set by regulators, although there was an increase in non-performing loan (NPL) ratios, both gross and net. Gross NPL rose from 1.29 percent to 2.83 percent, while net NPL increased from 0.23 percent to 0.74 percent, still well below the regulatory limit of 5 percent.

On the balance sheet side, total assets of Bank QNB Indonesia rose by 6.09 percent to IDR 12.20 trillion as of the end of March 2025, indicating healthy expansion supported by strong loan growth and effective fund management. Core capital also increased by 2.82 percent to IDR 4.32 trillion, although the capital adequacy ratio (CAR) slightly declined from 58.61 percent to 57.87 percent, still far above the minimum regulatory requirement.

Key financial ratios also reflected improved performance. Return on Assets (ROA) rose from 0.31 percent to 0.37 percent, indicating the bank’s increasing efficiency in utilizing its assets to generate profit. Return on Equity (ROE) climbed from 0.86 percent to 1.07 percent, showing that the bank was more effective in generating returns from its available capital. Meanwhile, the net interest margin (NIM) edged up from 3.53 percent to 3.58 percent, reflecting better management of productive assets.

The loan to deposit ratio (LDR) increased from 100.79 percent to 120.79 percent, indicating a more aggressive loan disbursement strategy compared to the growth in deposits. Nevertheless, the bank’s strong capital and liquidity positions allow room for continued expansion.

Overall, the Infobank Institute assesses that Bank QNB Indonesia’s performance in the first quarter of 2025 demonstrates its ability to achieve solid profit growth amid rising interest expenses, supported by operational efficiency and healthy loan growth. (*) Ari Nugroho