Net Interest Rate of State-Owned Bank Decreases
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Rabu, 28 Januari 2015 16:30 WIB
TEMPO.CO, Jakarta - Bank Rakyat Indonesia (BRI) and Bank Danamon Indonesia recorded a decrease in Net Interest Margin (NIM) due to an increase in Bank Indonesia's benchmark interest rate (BI Rate). BRI secretary Budi Satria, said that the national banking sector liquidity was tighter last year. As a result, the condition affected the fund composition of all three companies once the deposit slightly increased. "Nevertheless, at the end of 2014, liquidity has loosened up," he told Tempo on Tuesday, January 27, 2015.
BRI, which focuses on micro, small and medium enterprises, published their 2014 financial report on Tuesday, January 27, 2015. BRI recorded that their NIM decreased from 8.55 percent in 2013 to 8.51 percent in 2014, which was caused by an increase in their cost of fund, from 3.71 percent in 2013 to 4.38 percent in 2014. BRI's cost-to-income ratio (BOPO) has also increased from 60.58 percent in 2013 to 65.37 percent in 2014.
Budi said that in 2015, BRI expected that the NIM will remain stable. The company will not be aggressive in targeting an increase in NIM because of several factors, including the BI Rate, which could potentially increase in line with the Fed's Interest Rate.
Meanwhile, Bank Danamon recorded a 1.2 percent decrease in NIM, from 9.6 percent in 2013 to 8.4 percent in the third quarter of 2014. Bank Danamon secretary Fransiska Oei, said that the bank’s cost-to-income ratio has increased to 87.6 percent in 2014, compared to 79.7 percent in 2013.
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