Bank Negara Indonesia loan growth to slow to 13% in 2019

A moderation in private corporate and SOE loans will hit lending.

Bank Negara Indonesia (BBNI) should brace for slower loan growth of 13% in 2019 from 16% in the previous year, according to a report from UOB Kay Hian.

SOE lending should normalise to around 15% amidst the absence of a one-off 32% increase in SOE loans which boosted last year's lending levels.

The state-owned Indonesian bank should also witness a deceleration in private corporate loans which has been on a consistent downtrend after growing 13% in 2018 from 15% in 2017. "In 2019, we estimate a 13% yoy rise in corporate loans," analyst Raphon Prima said in a report.

The bank's bad loan ratio is also set to decrease following a decline to 1.96% from 2.96% in 2016-18 and provisions held stable at $503.76m-$553.43m (RP7.1-7.8t).

"Going forward, room for NPL ratio decrease is small. We expect NPL ratio to stabilise at 1.9%. Stable NPL ratio amid double-digit loan growth means NPL will increase, resulting in higher provisions. We expect provisions to grow 14% yoy in 2019 (2018: 4% yoy)," said Prima.

Also Read

Cambodia enables QR payments from foreign e-wallets through Alipay+

Hong Kong to rename ‘virtual banks’ to ‘digital banks’

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit