Panin Bank (PNBN) reported a flat profit in H1 this year, as net interest income grew along with its operating expenses. The Bank booked profit after tax of Rp1.35 trillion in said period on net interest income of Rp4.44 trillion.
In H1 last year, PNBN recorded net profit of Rp1.39 trillion and net interest income of Rp4.2 trillion. Net interest margin (NIM) was 4.5%. While operating expenses rose 9.9% to Rp3.65 trillion. PNBN’s credit grew 5.7% to Rp148 trillion in H1 this year from previous Rp140 trillion. Its assets declined 2.8% to Rp207.3 trillion. PNBN’s capital adequacy ratio (CAR) stood at 22% while non performing loan (net) was 0.89%. Loan to deposit ratio (LDR) reached 106.75%.
PNBN should focus in its business strategy this year as it focuses in developing retail and commercial sector, the sectors with weak demand for lending. Others wonder about sharia business of Panin (Bank Panin Dubai Syariah/PNBS), whose non performing financing (NPF) jumped significantly last year. We understand that Panin has cut its ownership further to 44.68% last year, while Dubai Islamic Bank’s ownership grew to 38.25%.