Banking - OJK stated that banking industry performance remain stable in May24

Banking - OJK stated that banking industry performance remain stable in May24 The Financial Services Authority (OJK) revealed that the performance of the Indonesian banking industry as of May 2024 showed stable and sustainable performance supported CAR, which was 26.22% in May 2024, up from April 2024, which reached 25.97%. Apart from that, banking profitability is maintained. The return on assets (ROA) is at a level of 2.56% from the previous level of 2.51%, and the net interest margin is 2.56%, stable vs April24. Chief Executive of OJK Banking Supervision, Dian Ediana Rae, said that in terms of intermediation performance in May 2024, credit continue grow double digits by 12.15% yoy, reaching IDR7,376 tn from the previous IDR7,311 tn in May 2024. In line with this, the growth of Third Party Funds (DPK) reached 8.63% yoy, reaching IDR8,699 tn with the largest demand deposit growth, namely 15.53% yoy. Credit quality was also maintained, with gross NPL in May 2024 reaching 2.34% compared to April's 2.33% and net NPL reaching 0.79% from the previous 0.81%. Furthermore, loans at risk decreased by 10.75% in May 2024, from the previous April 2024 level of 11.04% and May 2023 level of 13.38%. Meanwhile, gross NPL for MSMEs in May 2024 was recorded as stable at 4.27% from the previous figure of 4.26%, in line with the decline in LAR for MSMEs, which experienced a decline of 13.83% from April 2024 of 14.29%. (Source : Kontan).