BSI Profit Surges 22.83% to $441 million in 2024, Driven by Loan Growth and Fee Income
JAKARTA, Indonesia – Indonesia's largest sharia-based lender, PT Bank Syariah Indonesia Tbk, reported 23% surge in profit for 2024 to $441 million, driven by strong growth in financing and fee-based income, along with successful implementation of a new strategic approach.
The lender, also known as BSI, or BRIS on the Indonesia Stock Exchange (IDX), reported strong financial performance for 2024, with its full-year profit reaching Rp 7 trillion ($441 million), a 22.83% increase compared to Rp 5.70 trillion in 2023.
BSI President Director Hery Gunardi attributed the double-digit profit growth to several factors, primarily the increase in total financing throughout the year. "Financing experienced growth of 15.88% year-on-year to Rp 278 trillion," he said during a virtual press conference on BSI's 2024 performance on Thursday, Feb 6, 2025.
The growth in financing was supported by an 11.46% increase in third-party funds (DPK) to Rp 327 trillion. Low-cost funds, or current account and savings account (CASA), contributed significantly, accounting for 60.24% of DPK, or Rp 197 trillion ($12.4 billion).
Another key driver of BSI's profit growth was a significant increase in fee-based income. "Fee-based income also experienced growth, and the growth was quite fantastic, double-digit at 32.58% year-on-year, to Rp 5.51 trillion," Hery said.
"New Game Changer" Strategy
Hery attributed the bank's strong business growth to the successful implementation of a "new game changer" strategy in 2024. This strategy, he said, is key to sustained growth. "In addition, several strategic initiatives have also yielded results, for example, the digital platform that we have and also other initiatives that have kept our growth quite well maintained," he said.
BSI also successfully maintained a healthy cost of of financing, which decreased from 1.14% in 2023 to 0.83% in 2024. The bank's cash coverage ratio also improved, rising by 66 basis points to 155.01%.
The fee-based income ratio grew by 2.15 percentage points to 17.95% in 2024. Return on assets (ROA) increased by 0.14 percentage points to 2.49%, and return on equity (ROE) also grew by 0.80 percentage points to 17.77%.
"BSI's performance in 2024 grew positively," Hery said. "This growth makes BSI increasingly competitive and among the national commercial banks."
He noted that BSI ranks sixth in the industry in terms of assets, with asset growth of 17.19%. BSI also continues to strengthen its low-cost fund composition, ranking fifth in terms of savings, with Rp 133 trillion, or a growth of 12.74%.
"BSI's financial performance in 2024 was able to grow above the growth of the industry," Hery said. "So the Indonesian banking industry also grew, but BSI's growth was higher than the industry's growth."