Bank tactics to keep profit

The ability of banks to generate profits continues to grow amidst the weakening demand for public credit. The bank's strategy in managing the spread of interest rates on loans and deposit rates is one of the keys to keeping profits high.
Based on data from the Financial Services Authority (OJK), the group of Commercial Banks for Business Activities (BUKU) IV controls around 60% of third party funds (DPK) and lending. Until the first quarter of 2021, it was able to print a net interest margin/NIM difference of 5.10%. This ratio is higher than the position in the first quarter of 2020 of 4.63%. Meanwhile, for the BUKU II and BUKU III groups, the ratio of the difference in net interest decreased to 4.41% and 3.41% respectively compared to the same period 2020. In general, the bank's efforts to maintain profitability are reflected in its strategy of shifting public funds that accumulate to be placed into state securities instruments. Until March 2021, interest income from placements into securities grew by 25.26%. Meanwhile, interest income from loans disbursed experienced a not-so-deep correction at 3.46%. The two components of interest income represent 73.29% of the bank's total interest income, which up to the first quarter of 2021 was IDR 201.76 trillion. Another way for banks to maintain a rhythm of profitability is optimizing digital-based services so as to increase non-interest income or fee-based income, as well as reducing the number of service offices in the context of efficiency.

|•SOURCE•| Image :moneyissues |

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