JAKARTA. Banks’ profitability ratio in this year is predicted to improve in this year. The improvement would be driven by the increase in profit, following the improvement in non-performing loan (NPL) ratio. Head of Commissioner Board of the OJK (Financial Services Authority) Muliaman D. Hadad mentioned that the bank’s profitability ratio, which includes return on asset (ROA) ratio and return on equity (ROE) ratio will improve in this year, following the credit allocation that is predicted to grow by 9%-11%. Let alone, some banks have prepared some strategies to boost non-interest rate revenues in this year. During the recent the years, the banking sector recorded ROA at less than 3%. The high NPL ratio, which had caused economic slowdown, had forced the banks to allocate higher provisions. This had subsequently reduced the banks’ profits.
Banks’ profits to improve
JAKARTA. Banks’ profitability ratio in this year is predicted to improve in this year. The improvement would be driven by the increase in profit, following the improvement in non-performing loan (NPL) ratio. Head of Commissioner Board of the OJK (Financial Services Authority) Muliaman D. Hadad mentioned that the bank’s profitability ratio, which includes return on asset (ROA) ratio and return on equity (ROE) ratio will improve in this year, following the credit allocation that is predicted to grow by 9%-11%. Let alone, some banks have prepared some strategies to boost non-interest rate revenues in this year. During the recent the years, the banking sector recorded ROA at less than 3%. The high NPL ratio, which had caused economic slowdown, had forced the banks to allocate higher provisions. This had subsequently reduced the banks’ profits.