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20240401_BSIM_Laporan Hasil Pemeringkatan_31621727_lamp1.pdf
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RATING RATIONALE PT BANK SINARMAS Tbk (BSIM) Company rating irA+/Stable Rated Issues Obligasi Subordinasi Berkelanjutan I Bank Sinarmas irA Rating Period March 25, 2024 – April 1, 2025 Rating History March, 2023 irA+/Stable April, 2022 irA+/Stable October, 2021 irA/Stable October, 2020 irA/Stable Kredit Rating Indonesia has affirmed its ‘irA+’ rating for PT Bank Sinarmas Tbk with “stable” outlook. Kredit Rating Indonesia (KRI) affirmed its ‘irA+’ rating for PT Bank Sinarmas Tbk (BSIM) with “stable” outlook. At the same time, KRI has affirmed ‘irA’ rating to Obligasi Subordinasi Berkelanjutan I Bank Sinarmas totaling IDR3 trillion. The rating reflects BSIM’s strong capitalization and improved profitability. However, the level of BSIM’s asset quality is also considered in ratings assigned. BSIM was established on 1989 and acquired by PT Sinar Mas Multiartha Tbk (SMMA/irAA) on 2005 under the name of Bank Shinta. In 9M2023, BSIM contributed of 41.8% to the total assets of SMMA. As of September 2023, BSIM is owned by SMMA with 60.0% share, PT Shinta Utama of 2.4% and public of 37.6%. As of 9M2023, BSIM owned 380 offices and outlets across Indonesia to support their business activities. BSIM has also gradually improved its IT infrastructure and human resource to deliver better quality of services with digitalization. BSIM has small market share, with only 0.24% lending market share and 0.48% third party fund market share in 9M2023. Considering the current business environment, the bank main focuses are maintaining its portfolio and applying more selective lending approach. The Bank has maintained its CASA Ratio above 60% (9M2023:68.9%, FY2022:65.5%). BSIM’s CAR has improved since FY2020 from 17.3% to 29.5% in 2022 due to additional capital from warrant conversion in 2021 and also decreasing loan size during the period. The ratio decreased to 26.7% in 9M2023 but still considered high compare to its peers. BSIM’s ROA has improved to 0.71% in 9M2023 from 0.54% in FY2022 mainly due to declining of loan loss reserve, aligned with decreased NPL during the period. Operating Cost to Income (BOPO) has also improve from 93.3% in FY2022 to 91.9% in 9M2023 BSIM’s asset quality has deteriorated in FY2022, with gross NPL ratio was at an alarming level of 8.0% from 4.6% in 2021. As of 9M2023, the ratio improved at 5.6%, however, the figure was still above the industry average of 2.4%. The non-performing loan was contributed from debtors in wholesale, household, and agriculture industry. KRI is of the view that BSIM needs to continually enhance its lending process and monitoring to improve its asset quality. Downward rating pressures can come from a material decrease of its capitalization and asset quality to weaken further, which eroding the Bank’s ability to generate profitability. PT Bank Sinarmas Tbk 1
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RATING RATIONALE
BSIM Financial Results Highlights
Sep 2023 Dec 2022 Dec 2021 Dec 2020 Dec 2019
As of/For the year ended
(Audited) (Audited) (Audited) (Audited) (Audited)
Total Asset (IDR, Bn) 47,699.4 47,357.4 52,672.0 44,612.0 36,559.6
Total Gross Loans (IDR, Bn) 16,518.1 15,898.6 18,328.2 20,940.4 23,125.3
Total Equity (IDR, Bn) 7,535.3 7,285.0 7,359.4 6,056.8 6,074.5
Total Cust. Deposit (IDR, Bn) 38,812.7 38,714.0 44,468.9 36,756.6 28,219.9
Net Interest Income (IDR, Bn) 1,990.3 2,581.9 2,415.4 2,142.4 2,220.2
Net Income (IDR, Bn) 219.8 221.2 127.8 118.5 6.8
ROA (%) 0.7 0.5 0.3 0.3 0.2
NPL Gross (%) 5.6 8.0 4.6 4.8 7.8
Loan Loss Reserve/NPL (%) 69.9 67.6 74.5 70.7 44.8
CAR (%) 26.7 29.5 29.1 17.3 17.3
LDR (%) 42.6 41.1 41.2 57.0 82.0
Analysts : Gromy Pilipi Pranata Purba (gromy.purba@kreditratingindonesia.com)
Cut Nabila Saraziva (cut.nabila@kreditratingindonesia.com)
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PT Bank Sinarmas Tbk 2
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