Keep focus on leveraging the Bank’s strengths, which include an extensive knowledge and understanding of the local market, focus on Indonesian and Japanese corporate customers and independent management in decision making.
We started the year 2012 with optimism that Indonesia’s political and economic conditions would prove resilient amidst the presence of predicaments in some parts of the world.
The global economic downturn that has occurred since 2011 is continuing in 2012, the Eurozone economies are still experiencing negative growth, while the U.S. economy remains quite vulnerable but began to show improvement.
In the midst of the ongoing global economic slowdown, the Indonesian economy grew strongly in 2012 with economic growth of 6.3% in 2012, relatively stable against the previous year of 6.5%. Economic growth was buoyed by strong domestic demand and improved export performance in line with the improving economy in some major trading partners.
With inflation under control at the level of 4.30% which is supported by conducive political conditions throughout the year and the strengthening of consumer confidence level even reached its highest point during the history, the Indonesian economy grew by a solid foundation.
In the middle of growing momentum and optimism from the business entity, we try to capture the resulting positive value by maintaining a sustainable asset growth without compromising the principles of Good Corporate Governance in running the business.
In addition, by focusing to our strength, which includes an extensive knowledge and understanding of the local market, focus on Indonesian and Japanese corporate customers and independent management in decision making, we strive to always be able to provide value added to the stakeholders.
With sincerity and hard work, we managed to achieve those goals, it was reflected through the achievement of the Bank’s total assets that reached Rp 11.97 trillion at the end of December 2012, increase by 16.03%over the previous year which reached Rp 10.32 trillion.
Increase in total assets which supported by growth in third party fund that reaches 10.26% in 2012, was able to generate the encouraging operating performance, we managed to record an operating profit of Rp 367.54 billion in the year 2012, where the figure rose 9.54% compared with the previous year at Rp 335.54 billion.
Total third party fund reach Rp 5.43 trillion in 2012, it was increase by 10.26% compared to last year at Rp 4.93 trillion. In terms of credit performance, the manufacturing sector still dominates the Bank’s loan portfolio at Rp 3.85 trillion or 46.66% of total loans amounted to Rp 8.15 trillion in 2012.
As a result of satisfactory performance of credit and third party fund, net interest income reach Rp 406.95 billion, an increase of 7.68% compared to the previous year, which stood at Rp 377.92 billion.
Meanwhile, the Bank’s commitment to maintaining a sustainable asset growth without compromising the principles of Good Corporate Governance is reflected by declining of Gross Non Performing Assets Ratio (Gross NPL) which stood at 1.76% in 2012, lower than the previous year by 2.26%.
In terms of capital, our capital grew by 12.59% from Rp 1.7 trillion to Rp 1.91 trillion in the year 2012, we believe that sustainable growth should be based on a strong foundation of capital, therefore, through our risk management framework we have been prepare the calculation of capital requirement based on risk profile,
known as the Internal Capital Adequacy Assessment Process (ICAAP) according to Bank Indonesia Circular Letter No. 14/37/DPNP dated December 27, 2012 on Minimum Capital Requirement based on Risk Profile.
The year 2012 was also marked by the addition of the Bank’s board of management in charge of risk management and credit, it was purposed to improve the quality and quantity of the Bank’s asset, we have appointed Mr. Muhammad Akbar as director in charge of risk management and Mr. Masahiro Ishii as director in charge for Marketing and Treasury. Their presence is expected to contribute to the spirit of the Bank in collaborating with the stakeholders in order to accelerate the sustainable growth.
All of our achievements are the result of hard work and sincerity in carrying out the business under the principles of Good Corporate Governance. We always try to put forward such principle in every line of the organization and the day-to-day operations.
On a final note, on behalf of the Board of Directors, allow me to express my deepest gratitude and appreciation to all employees for their hard work and dedication as well to the stakeholders for their trust to the Bank until now. We could not have achieved this commendable performance and ensured our existence without your support, let’s collaborate together to achieve sustainable growth acceleration in the future.