Jakarta – As the transformation process is increasingly showing convincing results, PT Bank KB Bukopin, Tbk (BBKP) is optimistically looking at the huge potential for credit growth from the Korean Link business segment. Currently, there are more than 2,000 South Korean companies in Indonesia, both small and large scale. 210 of them are customers of KB Kookmin Bank in South Korea.
Korean-based companies that have become Korean Link Business customers include Hyundai, CJ Group, Lotte and so on.
“I am sure that in the future, credit growth in the Korean Link segment will increase rapidly,” said KB Bukopin Vice President Director Robby Mondong.
Meanwhile, the transformation process that has been carried out has shown results, among others, with credit growth in the first quarter of 2023 amounting to 38.3% YoY, improved credit quality with the ratio of non-performing loans or NPL (Gross) at the level of 6.98% better than the position in the first quarter of 2022 which was at the level of 11.76%, and LAR (Loan to Asset Ratio) as an indicator of the risk of loans disbursed which fell from 64.4% in the first quarter of 2022 to 50.3%.
By looking at the progress of the transformation that has shown these results, as well as the strong support from the Korean financial giant, KB Financial Group (KBFG) through KB Kookmin Bank as the controlling shareholder, KB Bukopin’s steps are increasingly steady to return to being a credible flagship national bank.
KB Bukopin to become a healthy and reliable bank must be supported by large funds. So with great trust and commitment from KB Kookmin Bank as the controlling shareholder, KB Bukopin conducted a capital increase through a rights issue. In this case, KB Kookmin Bank as the standby buyer is committed to absorb 100% of the new shares issued,” added Robby Mondong.
Through the rights issue, KB Bukopin will increase its capital by around IDR 12 trillion, which is the largest rights issue in 2023. Previously, since 2021, KBFG through KB Kookmin Bank has injected funds of around IDR 10 trillion into KB Bukopin Bank.
Robby added that the purpose of this rights issue is to strengthen the capital of the subsidiary, and for the purposes of credit expansion in the Korean Link, Wholesale, SME, and Retail segments, as well as including the expansion of KB Bukopin’s IT system which is fully supported by KB Kookmin Bank. “We hope that this rights issue will run as expected and the funds obtained will be used to accelerate KB Bukopin’s credit expansion process to healthy segments so that it can refocus on increasing profitability,” Robby concluded.