Solid Intermediation Performance, IBK Bank Indonesia’s Profit Grows 17.76 Percent in 2024 to IDR 215.85 Billion

Jakarta – IBK Bank Indonesia posted a spirited performance in 2024, with net profit soaring 17.76 percent year-on-year (YoY) from IDR 183.30 billion in 2023 to IDR 215.85 billion. The profit growth, under the leadership of President Director Oh In Taek, outpaced the national banking industry’s average profit growth of 4.88 percent.

According to the bank’s financial report published on Tuesday, April 8, 2025, the profit increase was driven by an 8.31 percent rise in interest income to IDR 1.37 trillion, while interest expenses remained tightly controlled, growing only 1.41 percent to IDR 787.28 billion. This harmony between income growth and cost efficiency was a key driver of profit, highlighting a positive operational performance for the South Korea-affiliated bank.

Net interest income for the bank, trading under the ticker AGRS, also strengthened by 19.28 percent to IDR 581.24 billion, reflecting its improved ability to manage productive assets effectively. This was further reinforced by a significant improvement in net interest margin (NIM), which rose from 2.41 percent to 3.09 percent. The increase in NIM illustrates the bank’s growing efficiency in optimizing returns on its assets, a crucial achievement in the banking business.

On the efficiency side, IBK Bank Indonesia successfully reduced other operational expenses by 3.02 percent, from IDR 310.69 billion to IDR 301.30 billion. This cost control helped improve the BOPO (operating expense to operating income) ratio from 90.03 percent to 82.48 percent. With leaner operational costs, the bank was able to maximize profit without compromising service quality.

Equally impressive, IBK Bank Indonesia’s credit performance surged by 24.68 percent YoY to IDR 11.71 trillion, more than double the national banking industry’s average credit growth of 10.52 percent. This reflects increasing customer trust and the bank’s strong capability in extending healthy financing. Although gross non-performing loans (NPL) rose to 1.96 percent and net NPL to 1.31 percent, both remained comfortably below the regulator’s safe limit of 5 percent, indicating that the bank’s credit quality remains well-maintained.

Amid industry-wide challenges, IBK Bank Indonesia also delivered an outstanding performance in third-party funds (DPK), which rose by 5.78 percent to IDR 9.41 trillion—higher than the national industry’s growth of 4.48 percent. The composition of low-cost funds (demand and savings deposits) also improved, growing 12.82 percent to IDR 3.62 trillion. The proportion of low-cost funds to total DPK increased from 36.05 percent to 38.45 percent, signalling a more efficient and stable funding structure.

Total assets also grew by 3.53 percent to IDR 20.06 trillion, reflecting healthy and measured expansion. Core capital increased by 3.68 percent to IDR 5.50 trillion, providing a stronger foundation for the bank’s sustainable future growth.

Other key financial ratios showed solid performance as well. Return on assets (ROA) improved from 0.92 percent to 1.40 percent, highlighting more effective asset utilization in generating profits. Although return on equity (ROE) slightly decreased from 4.24 percent to 3.99 percent, it still indicates a reasonable level of capital return amid aggressive credit expansion. Meanwhile, the loan-to-deposit ratio (LDR) rose from 105.58 percent to 124.44 percent, reflecting the bank’s increasingly active role in channelling collected funds into productive sectors.

IBK Bank Indonesia’s performance in 2024 significantly outpaced the industry average in profit, lending, and fund accumulation. With a strong financial foundation and prudent risk management, the bank continues to cement its position as a formidable player in Indonesia’s banking landscape. (*) Ari Nugroho