In-Depth View of Loan Portfolio in Response to the Pandemic
Purposes:
Understanding & Updating the impact of COVID-19 to our loan book
Classifying debtors based on potential credit risk categories (High, Medium & Low Risk) and formulate an appropriate portfolio strategy to manage loan quality.
Triggers for calculating additional Expected Credit Loss (ECL)
Review is conducted periodically every four months
October 2020
February 2021
June 2021
1st Review
2nd Review
3rd Review
2
Review is conducted periodically every four months
We've carried out the assessment three times, first in October 2020, the second was conducted in February 2021, and the latest conducted in June 2021.
From first review until third review, we see that improvement in the customer risk profile is continuing, inline with the gradual recovery of economy.
1st
October 2020
High Risk
60Tn
High Risk
Medium Risk Shadow 24.7T
141Tn NPL
Low Risk
229Tn
2nd
February 2021
High Risk
46Tn
High Risk
Medium Risk Shadow 24.3T
164Tn NPL
Low Risk
317Tn
High Risk
3rd
37Tn
ECL FY21
Medium Risk
High Risk
17.2T
16.3Tn
165Tn
Shadow
June 2021
NPL
Low Risk
323Tn
Management Plan
4th
•In general, from the 3rd asset quality
survey, we found that gradual
improvement in client's risk profile is
continuing.
However, we still intend to have a management overlay to build more loan loss reserve, just to
be conservative to anticipate 2nd Wave Covid
impact
BBNI ECL
inline with 2021
Budget 2021
guidance of
20Tn
3.3-3.6% CoC
3
Methodology: Comprehensive Assessment
Method
Respondent
# accounts
# outstanding
Collectibility Distribution
# accounts
Corporate
85.48%
86.92
2%
23%
3%
Medium
Small > 1 Bn
Small ≤ 1 Bn
[incl. KUR]
Consumer
Survey to >90% loan
account
Survey to debtors
by sampling
Portfolio
Based
Analysis
100.00% 100.00%
56.58% 49.11%
9.81%
9.03%
100.00% 100.00%
Total
43,897
72%
# outstanding
3%
6%
15%
Total
525 Bn
76%
Current (Col 1)
Current Restructured
Special Mention Loan
Current Restruct Covid
4
Methodology: Three pillars assessed in the survey
1
• Potential for growth
Business
• Management Quality &
Outlook
Manpower Issues
• Market Conditions & Debtor's
positioning in Market
2
• Cashflow
Financial
• Profitability
Performance
• Capital Structure
3
• Debt Obligation (principal &
Repayment
interest)
• Suitability of use of fund
Capacity
• Source of repayment
• Compliance with loan agreement
Business Outlook
• Accuracy of financial reports
Each segments have different weighting factors according to business characteristics and determined using the Analytical Hierarchy Process (AHP) method.
Corporate
Small > 1 Bn
Small ≤ 1 Bn
& Medium
[incl. KUR]
15.08%
13.48%
15.24%
29.90%24.73%22.52%
55.02%61.79%62.24%
100.00%
100.00%
100.00%
5
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Disclaimer
BNI - PT Bank Negara Indonesia (Persero) Tbk published this content on 06 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 July 2021 03:49:09 UTC.
PT Bank Negara Indonesia (Persero) Tbk is engaged in the banking sector. Its segments include Wholesale & International Banking, Institutional Banking, Enterprises & Commercial Banking, Retail Banking, and Treasury. Wholesale & International Banking segment includes loans, customer deposits and other transactions belonging to corporate customers, both BUMN and private business entities. Institutional Banking segment includes loans, customer deposits and other transactions belonging to customers of ministries, government institutions, foundations, and universities. Enterprises & Commercial Banking segment includes loans, customer deposits and other transactions belonging to customers of middle/commercial. Retail Banking segment includes loans, customer deposits and other transactions belonging to consumer customers, including credit programs and consumer financing loans. Treasury segment includes foreign exchange transactions, money market, fixed income, and the capital markets.
PT BANK NEGARA INDONESIA (PERSERO) TBK 
