Jakarta. Bank Syariah Indonesia (BSI) recently reported that its profit had grown 21.60 percent year-on-year (yoy) in Q3-2024. 

The growth rate surpassed the national banking industry's average growth rate. BSI also recorded double-digit growth in almost all other financial performance indicators, including its assets, financing, and third-party funds. 

As of Q3-2024, BSI's net profit reached Rp 5.11 trillion (around $324.38 million), up compared to the same period the previous year of Rp 4.20 trillion. BSI attributed the sustainable profit growth to the implementation of the right business strategy. BSI remains focused on healthy and sustainable financing, namely in the consumer and retail segments which hold a composition of 72.17 percent. The low-cost funding (current account savings account or CASA) represents 61.69 percent of the third-party funds. The bank also currently has 21 million customers. 

“We were able to record a double-digit growth as of Q3-2024 amidst the macroeconomic challenges and the high reference rate. But Bank Indonesia has started to lower the benchmark interest rate,” BSI’s President Director Hery Gunardi was quoted as saying in a recent press statement.

BSI’s third-party funds also rose 14.92 percent to Rp 301.22 trillion as of the third quarter. Savings products largely made up the third-party funds, and had grown 13.40 percent yoy to Rp 130.18 trillion. The low-cost fund ratio (CASA) was at 61.69 percent.

The Islamic bank’s savings growth was in line with the growing customer base. Since the merger, it has increased by an average of 2.5 million customers per year. BSI will soon launch SuperApps to better serve its customers in addition to increasing the number of ATMs, EDCs, QRIS services, and BSI Agent access. 

Third-party funds from BSI Business Savings -- which is specifically designed for Indonesian micro, small and medium enterprises -- also rose 34.83 percent yoy as of September. Wadiah Savings also expanded 19.04 percent. Another sharia product BSI Hajj Savings also soared 16.47 percent, and has encompassed 5.39 million accounts.

With a good funding structure, BSI can offer financing to customers with maintained quality. As of the third quarter of 2024, BSI's total financing reached Rp 267.06 trillion, growing by 15.28 percent. This already topped the industry average of 11.30 percent as of August 2024, according to Hery.

BSI reported that its wholesale segment grew by 12.17 percent, while its retail segment also jumped by 17.30 percent. The consumer segment also saw a double-digit growth of 16.27 percent. BSI also posted a gross non-performing financing of 1.97 percent.

BSI’s Gold Installment soared 143.41 percent and has zero non-performing financing ratio. According to Hery, this product is likely to grow bigger in the future as more people invest in gold. Since the merger, the bank’s gold installment financing has increased by five to sixfold as gold prices soared.

Hery said that discipline in business had triggered an increase in the bank’s profit sharing margin income by Rp 18.41 trillion, up by 11.98 percent yoy. The fee-based income also went up 30.14 percent yoy to Rp 3.94 trillion. This brought pre-provisioning operating profit stood to reach Rp 8.52 trillion, up by 7.61 percent yoy. The cost of credit also dropped to 0.97 percent.

As of September, BSI’s assets reached Rp 371 trillion, growing 15.91 percent yoy with a return of equity (ROE) at 17.59 percent.

BSI Digital Transactions

BSI also saw soaring digital transactions. BSI e-channels recorded 607 million transactions, almost 50-fold of the transactions made at tellers. E-channels also represented 97.94 percent of the customer’s total transactions, reaching Rp 709 trillion.

As many as 7.5 million customers have used BSI Mobile. The company reported that BSI Mobile recorded 387.6 million transactions worth Rp 464.8 trillion. According to Hery, the soon-to-be-released SuperApps is a development of the BSI Mobile. It is expected to be user-friendly, and offers features that can help customers make their financial activities without needing to go to a branch. 

Support for Indonesia's Net Zero Emission Commitment

BSI revealed that it had distributed Rp 62.5 trillion worth of sustainable financing. About Rp 34.1 trillion went to small and medium enterprises, while Rp 15.1 trillion was in the micro-segment. The funding for sustainable natural resource management reached Rp 6.7 trillion. 

BSI has also distributed over Rp 189.6 billion for socio-economic, education, health, humanitarian, and preaching and advocacy programs. This year, BSI focuses on the construction of permanent or temporary places of worship. Other initiatives include building 20 of the so-called BSI Villages (Bangun Sejahtera Indonesia) and helping 35 MSMEs in the BSI MSME Center program. The bank has also provided scholarships to over 5,195 people. This BSI Scholarship program is in partnership with BSI Maslahat.