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Send to friendOur subsidiary in Indonesia, PT Bank Internasional Indonesia tbk (BII) is one of the top ten largest banks in Indonesia.
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“The steady track of growth BII achieved throughout the year signifies our hard work in fixing basic fundamentals and setting the right foundation for BII. We have now revitalised its growth momentum, though there is still much to accomplish in our quest for greater growth and higher market share.”
Rahardja Alimhamzah |
PT BANK INTERNASIONAL INDONESIA TBK
BII is present in 30 of Indonesia’s 33 provinces, with 334 domestic branches, five Syariah branches and three international branches. Operating 1,017 ATMs and 15 cash deposit machines (CDM) across Indonesia, we are one of the few banks that connect to all networks in Indonesia, namely ATM PRIMA, ATM BERSAMA, ALTO, and CIRRUS, and Malaysia’s MEPS network as well as 2,800 Maybank ATMs in Malaysia and Singapore. We also have two overseas branches in Mauritius and the Cayman Islands, and are in the process of re-activating our branch in Mumbai. We are a prominent provider of a broad range of banking and financial services in Indonesia covering retail/consumer, corporate, Syariah, SME and commercial and treasury.
Our subsidiaries are PT Wahana Ottomitra Multiartha Tbk (WOM Finance), a motorcycle financing company and BII Finance Center, a car financing company.
In FY2011, profit before tax increased by 29% to Rp781 billion. Net interest income rose 22% to Rp4,033 billion on the back of higher interest margin earned through the growth of high-yielding assets (especially loans), combined with optimal composition of funding.
Non-interest income grew by 14% to Rp2,006 billion, driven by income generated from bancaassurance, remittances, treasury transactions and other retail transactions. This was supported by loans growth of 26% which had risen to Rp59,828 billion as at 30 June 2011. Meanwhile, current account & savings account (CASA), which provides lower cost of funding, contributed 41% of total customer deposits.
Aspiring to be the best financial services provider in the markets we serve, we are striving to become the top bank in selected business segments.
With our mission to humanise financial services from the heart of Indonesia, we believe that providing excellent service begins with our relationships and partnerships. Positioning ourselves as offering innovative, relationship banking for business and communities, our goal is to ensure that all our customers can access the financial services they need in ways that deliver real and lasting benefits.
In FY2011, we invested heavily in expanding and upgrading our delivery network. In 2010 we opened 72 new offices and 165 ATMs throughout Indonesia, as well as enhanced our IT infrastructure to improve service delivery to customers. Meanwhile, the successful launch of mobile banking further deepened our engagement with our customers. We also introduced new products to the market, and continued to leverage on synergies with Maybank to deliver mutual benefits, especially in the area of remittances.
In May 2011, we successfully completed the issuance of sub debt, raising an additional Rp1.5 trillion of Tier 2 capital to support working capital needs and future business growth.
Our relentless efforts to grow the business and enhance customer service quality won us an array of awards throughout the year:
Notwithstanding the successes we have achieved so far, global economic uncertainties and a highly competitive market mean that plenty of challenges remain. To ensure that our asset quality remains intact, we have strengthened our risk management and credit controls while speeding up loan restructuring programmes and more closely monitoring existing borrowers.
Despite the global economic weakness following the banking and sub-debt crisis in the US and Europe, which has now turned into sovereign credit weakening, and measures to curb inflation in China, we remain optimistic in our outlook for Indonesia. Solid domestic demand and a relatively accommodating economic policy are supported by a healthy government budget. Economic activity is manageable, inflation is less than 6%, and the currency remains stable and is expected to strengthen on the back of a strong capital flow.
With this positive domestic economic outlook, we are poised for further growth, and hand-in-hand with Maybank, will work hard to realize the Group’s regional aspirations.
