BNI has a distinguished pedigree. The bank was established in 1946 as Indonesia’s central bank a few months after the nation won independence, and has been a vital part of the country’s economic development ever since.
Indeed, BNI is integral to the history of Indonesia, and is now at the forefront of the country’s economic resurgence through the delivery of superior products and services with the application of modern technology to its consumer and corporate customers nationwide.
The bank focuses on quality growth across all market segments, and provides a comprehensive offering that incorporates state-of-the-art internet, SMS, ATM and phone banking.
It has completed its transformation from a product-centric to customer-centric bank. It provides integrated financial solutions for business within eight major industries and its consumer and retail operation is geared towards cementing a lifetime relationship with all age groups across the archipelago.
Simply, the objective is to be a leading bank that excels in its service, performance and corporate governance practices, meeting the requirements of its customers, investors and other stakeholders. It has one of the most extensive distribution platform in the country, with more than 1,700 outlets across the archipelago servicing 14 million customers, as well as six overseas offices – in Singapore, Hong Kong, Tokyo, Osaka, London and New York and more than 1,600 correspondent banks in 104 countries.
During the years following independence, BNI was converted into a development bank and had an important strategic role during Indonesia’s early growth phase. In 1950 it was granted a foreign exchange license and five years later it opened its first overseas branch in Singapore.
During the 1960s, BNI’s domestic operations expanded rapidly as part of a national campaign to extend banking services to all sections of Indonesian society. These included the Floating Bank to service remote regions and the Roving Bank, which was a mobile service that aimed to encourage and educate people to save. Its Sarinah Bank was dedicated to the needs of female customers and its Children’s Bank helped develop the saving habit at an early age.
Fifty years after its establishment, BNI was the first state-owned bank to be publicly listed on the Jakarta Stock Exchange and in 2000, BNI was recapitalised in the wake of the Asian crisis. Subsequent equity issuance, notably a US$1.1 billion rights issue in 2010,has reduced state ownership to 60%.
The bank’s market capitalization is now around Rp103 trillion (US$8.7 billion) and its shareholders include major domestic and foreign investors. An investment in BNI shares in 2008 would be worth almost 10 times their purchase value in the span of only 7 years.
Strong financial ratios
BNI is now the fourth largest Indonesian lender by asset size and is the only domestic bank to have consistently increased and maintained a higher return on equity (ROE) since 2008, and its emphasis on quality growth has led to a 400% rise in return on assets (ROA) during the same seven year period.
Meanwhile the bank has reduced its non-performing loans (NPL) by over 55% since 2008, more than any of its peers, and has significantly improved its coverage ratio too.
It also boasts one of the strongest, low-cost funding bases and the lowest loan-to-deposit ratio, while the bank’s return on assets (ROA) and equity (ROE) has maintained a consistently improving trajectory under the stewardship of a focused and committed management team led by president-director and CEO Gatot M. Suwondo.
BNI’s most recent results reinforce this positive trend. In the third quarter, ROE increased to 22.7% year-on-year from 21.8%, the capital adequacy ratio rose to 16.2% compared with 15.7% for the same period in 2013, and gross NPLs fell to 2.2%, a decrease from 4.3% in 2010.
The improvement in key capital ratios and asset quality occurred at the same time as the bank’s profits rose substantially. Net profit before tax surged 18.2% year-on-year, boosted by a rise in both net interest and non-interest income, and despite a significant increase in bad loan provisioning.
The bank is also becoming more efficient. Its cost-to-income ratio declined 12% since 2008 to 42.4% an improvement well ahead of most peers.
Full customer service
Yet, even as a publicly-listed bank, BNI has retained its commitment to helping Indonesia’s economic development by facilitating the growth of the country’s key industries. It focuses on oil, gas and mining, telecommunications, chemicals, agribusiness, food and beverages, wholesale and retail trading, electricity and construction. This concentration is aligned with the bank’s task as an agent for the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI)
In order to enhance efficiency and improve customer access, BNI divides its corporate lending and advisory services into three discrete segments to service small, medium and large businesses.
The bank offers a wide selection of products including Working Capital Loans as well as Investment Loans for capital goods and services needed for new projects and modernization. Government-backed small scale business programmes are available for micro enterprises and other loans are provided to financial institutions which channel them to end-users who also benefit from collateral-backed bank guarantees.
In addition, the bank offers a Facilities and Collateral Agency service to facilitate syndicated loans to complement BNI Sindikasi which arranges loan syndication with other banks.
BNI’s cash management service for corporate clients takes full advantage of cutting-edge digital and web-based technology. BNI Direct is an internet-based transaction platform designed to enhance the ease and convenience of transactions, BNI eTax allows customers to pay taxes online and BNI Custodial Services efficiently processes the settlement of securities’ trades. BNI is also the first national bank in Indonesia to provide a trustee service, which it does through BNI Trust Services.
As the only domestic bank in Indonesia with overseas branches, BNI is able to provide complete trade finance services to its corporate clients, assisting exports, imports and remittances, and also essential treasury services such as foreign exchange transactions and hedging.
The innovation and dynamism evident in the corporate segments is replicated in BNI’s activities in the consumer and retail sector. Indonesia large, growing and increasingly affluent population presents tremendous opportunities for the country’s banks..
BNI aims to cater to all customers in very stage of their life-cycle and become a “Lifetime Banking Partner”. The convenience of e-banking and other specialised services are offered to customers with particular requirements such as ATM cards that function as debit cards, detailed descriptions of account activities recorded on passbooks for business people, foreign currency savings accounts and Hajj pilgrimage services.
BNI has expanded its ATM network at the second highest rate among its peers since 2008 and now has 13,370 ATMs throughout the country. Recently, its ATMs were rated first for customer satisfaction.
Its services range from BNI Taplus Anak for children under 15, BNI Taplus Muda for young adults, BNI Tapenas to help plan future finances and others that provide insurance cover, mortgages and pensions as well as a flagship BNI Credit Card and a Priority Banking
Clearly, the comprehensive and relevant nature of its consumer and corporate offering means that BNI is on its way to becoming the “Bank of Choice” for all Indonesians.
PT Bank Negara Indonesia (Persero) Tbk
Address: Jl. Jenderal Sudirman Kav. 1, Jakarta 10220 - Indonesia
Phone : +6221-5728387
Fax : +6221-5728053
E-mail: [email protected]