OCBC NISP Targets 27% Lending Increase
Commercial lender Bank OCBC NISP has set itself a target of 27 percent increased lending this year, on the back of robust loan demand by Indonesia’s consumers and corporations.
“The pace of lending growth will be above the industry average,” Parwati Surjaudaja, president director of OCBC NISP, said on Tuesday.
Parwati, who has been at the helm of the lender since 2008, said that OCBC NISP’s main debtors are its traditional customers including the manufacturing industry and the service and trading sectors.
“Manufacturing includes the consumer goods sector,” she said.
“The three sectors have been our long-time customers,” said Parwati, an alumna of San Francisco State University.
Average lending by the country’s commercial banks is predicted to grow by around 23 percent this year, according to data from Bank Indonesia, the central bank. This is similar to the 23 percent growth rate last year, BI said early this year.
Rising consumer spending in Indonesia coupled with an accelerating economy has pushed many consumers and companies to seek bank loans to finance their business operations including small and medium sized companies.
“Our core business remains in micro financing,” Parwati said.
Total outstanding loans at Bank OCBC NISP rose by Rp 11 trillion ($1.1 billion) to Rp 53 trillion in the first quarter this year from Rp 42 trillion during the same quarter last year, she said.
Net income at OCBC NISP rose to Rp 239.3 billion during the first three months of this year from Rp 197.8 billion last year while its net interest income increased to Rp 709.5 billion this year from Rp 600.6 billion last year, data from the company showed.
OCBC NISP’s lending rival Bank Rakyat Indonesia has been a leading provider of loans to small and medium companies, which account for around 80 percent of BRI’s lending portfolio.
Singapore-based OCBC bank bought control of Bank NISP more than five years ago. Bank OCBC NISP is 85.08 percent controlled by OCBC Overseas Investments.
Other Singaporean banks such as DBS Group and United Overseas Bank also have operations in Indonesia.
Shares of Bank OCBC NISP closed unchanged at Rp 1,300 on the Indonesia Stock Exchange on Wednesday, compared with the 0.7 percent fall in the main stock gauge, which declined to 4,806.66 on Wednesday.