Jakarta – Bank ICBC Indonesia recorded an impressive performance in 2024, with net profit surging 43.22 percent year-on-year (yoy) to Rp439.15 billion, far surpassing the national banking industry’s average growth of 4.88 percent. This strong performance was primarily driven by a significant reduction in interest expenses and the bank’s ability to optimize net interest income despite a decline in total interest income.
According to the bank’s published financial report released on Friday, April 11, 2025, bank led by President Director Chen Yon reported a 10.68 percent decline in interest income to Rp2.76 trillion. However, this was more than offset by a substantial 21.82 percent drop in interest expenses to Rp1.42 trillion, allowing net interest income to grow 5.05 percent to Rp1.35 trillion. This improvement is reflected in the increase in the bank’s net interest margin (NIM), which rose from 2.56 percent to 2.97 percent, signaling greater efficiency in managing its productive assets.
Operational efficiency was also a key contributor to Bank ICBC Indonesia’s strong earnings performance. Other operating expenses fell by 14.29 percent to Rp734.94 billion, reducing the operating expenses to operating income ratio (BOPO) from 87.72 percent to 81.79 percent, approaching the industry average of 81.30 percent. This cost efficiency further strengthens the bank’s ability to withstand market pressures.
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On the intermediation front, Bank ICBC Indonesia posted an aggressive 17.95 percent yoy growth in third-party funds to Rp39.21 trillion, well above the industry average of 4.48 percent. This growth was largely driven by a remarkable 111.34 percent surge in low-cost funds (current and savings accounts), with current accounts increasing 129.63 percent and savings accounts growing 50.23 percent. As a result, the proportion of low-cost funds to total deposits improved significantly from 24.95 percent to 44.71 percent, indicating a healthier and more efficient funding structure.
Meanwhile, the bank’s loan rose 7.35 percent yoy to Rp26.58 trillion—still below the industry’s 10.52 percent growth. The decline in the loan-to-deposit ratio (LDR) from 70.50 percent to 60.69 percent suggests a very strong liquidity position, albeit slightly below the ideal range of 7 –92 percent. This provides ample room for the bank to expand its lending activities in the future without facing significant liquidity pressure.
Furthermore, asset quality remains well-managed, with the gross non performing loan (NPL) ratio stable at 2.52 percent, comfortably below the 5 percent regulatory threshold. Notably, the bank’s net NPL ratio stood at 0.00 percent, reflecting highly prudent and effective credit risk management.
Bank ICBC Indonesia’s total assets grew significantly by 12.35 percent in 2024 to Rp50.71 trillion, more than double the banking industry’s average asset growth of 5.91 percent. This growth highlights the bank’s strong business fundamentals and its aggressive yet measured expansion strategy.
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In terms of capital, the bank reported an 8.02 percent increase in core capital to Rp6.24 trillion, while maintaining a robust capital adequacy ratio (CAR) at 30.37 percent, well above the regulatory minimum. This solid capital base provides a strong foundation for future business growth.
Overall, the Infobank Institute views Bank ICBC Indonesia as having delivered a solid financial performance throughout 2024, marked by rising profitability, improved cost efficiency, a healthier funding structure, and financial ratios that support long-term growth. With return on assets (ROA) increasing from 0.73 percent to 1.23 percent, and return on equity (ROE) rising from 5.41 percent to 7.30 percent, the bank continues to position itself as one of the most competitive players in the evolving Indonesian banking industry. (*) Ari Nugroho
