CIMB Niaga
PT Bank CIMB Niaga Tbk is an Indonesian commercial bank headquartered in Jakarta and majority-owned by Malaysia's CIMB Group Sdn. Bhd.[1][2]
Originally established on 26 September 1955 as Bank Niaga, it underwent significant restructuring, including a 51% acquisition by CIMB's predecessor in the early 2000s and a merger with Lippo Bank, leading to its rebranding as PT Bank CIMB Niaga Tbk in May 2008.[3][2][4]
The bank provides comprehensive financial services across corporate, business, retail, and Sharia segments, with total assets exceeding IDR 360 trillion as of 2024 and the largest Sharia business unit network in Indonesia.[5][3][6]
Listed on the Indonesia Stock Exchange under the ticker BNGA, it ranks among the country's leading private banks by asset size and emphasizes digital banking innovations alongside traditional operations.[2][3]
History
Founding and Early Years of Predecessor Banks
PT Bank Lippo Tbk traces its origins to Bank Perniagaan Indonesia, established in March 1948 as the first private national bank in Indonesia following the country's declaration of independence.[7] The bank operated modestly in its initial years, focusing on commercial banking services amid the economic challenges of the late 1940s and early 1950s, including hyperinflation and political instability.[8] In the 1980s, Mochtar Riady of the Lippo Group acquired a significant stake, leading to its rebranding as Lippo Bank in 1989 after merging with another small bank he controlled.[9] PT Bank Niaga Tbk was founded in 1955 as a private national commercial bank, receiving its business license on November 11, 1955, via Decree of the Minister of Finance of the Republic of Indonesia.[3] Established by Soedarpo Sastrosatomo, it aimed to provide credit and financial services to support indigenous Indonesian businesses during the post-independence economic decolonization efforts. In its early years, Bank Niaga navigated the turbulent 1950s economy, marked by nationalization of Dutch enterprises and efforts to build local financial institutions, growing steadily as one of the few surviving private banks by the late 1960s.[10] The bank introduced innovations ahead of peers, though major expansions occurred later.[3] These predecessor institutions laid the groundwork for CIMB Niaga through their established networks and resilience, with Bank Niaga emphasizing national private sector financing and Bank Lippo evolving under entrepreneurial acquisition into a major player before their 2008 merger.[4]Impact of Economic Crises and Restructuring
The 1997–1998 Asian financial crisis severely impacted Indonesia's banking sector, including the predecessors of CIMB Niaga, Bank Niaga and Lippo Bank, due to high non-performing loans, currency devaluation, and liquidity shortages. Bank Niaga, established in 1955, faced acute distress as depositor confidence eroded amid the rupiah's collapse, leading to a government assessment of its viability under emerging recapitalization frameworks. Similarly, Lippo Bank encountered substantial losses from exposure to crisis-hit sectors, prompting asset transfers to offset debts as part of early distress mitigation.[3][11][12] In response, the Indonesian government established the Indonesian Bank Restructuring Agency (IBRA) in January 1998 to oversee bank stabilization, closing non-viable institutions and acquiring stakes in others. For Bank Niaga, IBRA assumed majority ownership in 1998 following the transfer of shares from private owners, injecting recapitalization funds and managing operations until 2002 to restore solvency and separate viable assets from bad loans. Lippo Bank underwent partial IBRA control, with the agency acquiring a significant stake—reaching 52% by 2003—and receiving land and other assets from the Lippo Group to reduce outstanding obligations tied to bailout support. These interventions aligned with IMF-guided policies emphasizing burden-sharing between owners, banks, and the state, though implementation faced delays due to legal and political hurdles.[3][11][13] Restructuring efforts for both banks involved comprehensive audits, loan workouts, and governance reforms to comply with the Blanket Guarantee program introduced in January 1998, which protected deposits but escalated fiscal costs estimated at over 50% of GDP for the sector. Bank Niaga's recovery enabled its divestment, with CIMB Group acquiring the majority stake from IBRA in 2002, marking a shift toward private foreign investment. Lippo Bank's process similarly culminated in Khazanah Nasional's acquisition in September 2005, setting the stage for consolidation under Indonesia's Single Presence Policy. These measures, while stabilizing the institutions, highlighted systemic vulnerabilities like insider lending prevalent in pre-crisis Indonesian banks, contributing to prolonged recapitalization needs.[12][13][3]Merger Process and CIMB Group Integration
The merger of PT Bank Lippo Tbk into PT Bank CIMB Niaga Tbk (formerly PT Bank Niaga Tbk) was driven by Bank Indonesia's Single Presence Policy, which mandated that financial conglomerates consolidate ownership into a single banking entity to mitigate systemic risks.[14] CIMB Group, which had acquired majority control of Bank Niaga in 2002 and a stake in Lippo Bank via Khazanah Nasional Berhad in 2005, facilitated the transaction to comply with this regulation while creating Indonesia's sixth-largest bank by assets.[3][14] The process marked the first such consolidation under the policy, with full share ownership of Niaga transferred to CIMB Group in 2007 for operational alignment.[3] Key milestones included signing the merger plan on June 2, 2008, followed by shareholder approvals at extraordinary general meetings on July 18, 2008.[14] Regulatory clearances were obtained from Bapepam-LK on June 30, 2008, and Bank Indonesia via Decree No. 10/66/KEP.GBI/2008 on October 15, 2008, with the legal merger effective on November 1, 2008 (Legal Day 1), as formalized by Deed No. 9 dated October 16, 2008, and endorsed by the Minister of Law and Human Rights on October 22, 2008.[3][14] Pre-merger rebranding of Bank Niaga to CIMB Niaga occurred via Deed No. 38 on May 28, 2008, aligning the entity with CIMB Group's regional branding.[3] Post-merger integration focused on achieving a Single Platform Day 1 (SPD1) for unified operations, targeting completion by Q3 2009 but realized on May 18, 2009—four months ahead of schedule—through a "big bang" migration of systems and processes.[15] This encompassed consolidating 655 branches (with fewer than 5% overlap leading to rationalized closures), 1,261 ATMs, 1.7 million accounts for 1.4 million customers, and over 11,000 employees across 53 applications, retaining Lippo Bank's superior IT infrastructure while harmonizing products, e-channels, and fees.[14][15] Integration involved 34 task force teams, training for 8,000+ staff, and branch renovations in waves, with stabilization achieved within three weeks post-SPD1.[15] CIMB Group's oversight enabled synergies estimated at USD 49.5 million in annual pre-tax profit (60% from revenue, 40% from costs), with Rp 198.2 billion realized by August 2009 toward a Rp 328 billion target, through cross-selling, expense reductions, and enhanced ASEAN connectivity via shared platforms and talent management.[14][15] Merger costs totaled USD 90 million, primarily for IT and operational unification, positioning CIMB Niaga as a key pillar in CIMB's Southeast Asian franchise with consolidated assets of IDR 99.571 trillion as of September 2008 (60.8% from Niaga, 39.2% from Lippo).[14]Expansion and Strategic Developments Post-2008
Following the merger integration completed on May 18, 2009, CIMB Niaga expanded its operational scale, achieving the status of Indonesia's fifth-largest bank by assets and becoming the fifth-largest by branch network and ATM channels through the migration of 404 former Lippo Bank branches onto its platform.[15] This post-merger synergy emphasized efficiency and growth across business units, enabling broader market access and enhanced ASEAN connectivity via the parent CIMB Group.[16] By 2012, the bank's network had grown to 901 offices nationwide.[17] Strategic focus shifted toward digital infrastructure, with launches including BizChannel corporate banking and CIMB Clicks internet banking in 2009, followed by Go Mobile app and phone banking services (14041 and 1-500-800) in 2010.[18] Subsequent innovations encompassed Digital Lounges in 2011 for enhanced customer experience, Rekening Ponsel mobile accounts, Poin Xtra rewards, and net banking for online account openings; first online time deposits via CIMB Clicks in 2012; and a core banking system upgrade (1P scheme) in 2013.[18] By 2017-2018, transformations included Virtual Card Numbers, BizChannel@CIMB Mobile, rebranding Go Mobile to OCTO Mobile, and launches of OCTO Clicks, OCTO Friends referral app, and OCTO Card, alongside 28 Digital Lounges in malls and offices to support retail expansion.[18][19] In 2022, a revamped New OCTO Mobile was introduced to further digital customer onboarding and competitiveness.[18][20] Regulatory and operational advancements included attaining BUKU 4 status—the highest bank classification by Otoritas Jasa Keuangan (OJK)—in 2014, alongside launches of Indie Account savings and BizChannel@CIMB enhancements.[18] Product diversification featured contactless debit cards and Visa Credit Card Pay Wave in 2013-2015, self-service banking with card replacement in 2016, and Waqf QR for Islamic finance in the same year.[18] Strategic partnerships bolstered distribution, such as a 2022 bancassurance extension with Sun Life Indonesia for 15-year insurance solutions across channels.[21] By 2024, the Sharia business unit operated 407 branches, 2,282 ATMs, six multi-denomination machines, and 977 cash recycle machines, positioning CIMB Niaga as Indonesia's second-largest privately owned bank by total assets.[3] Recent initiatives adopted a five-pillar strategy to strengthen foundations amid competition, emphasizing SME expansion via branch networks, investment loans, and digital integration for sustained growth.[22][23] A 2023 non-preemptive rights issue supported capital enhancement, aligning with long-term efficiency and market positioning.[18]Ownership and Governance
Shareholding and Ownership Structure
PT Bank CIMB Niaga Tbk is majority-owned by CIMB Group Sdn Bhd, a Malaysian entity that serves as the direct controlling shareholder.[1] As of 30 September 2025, CIMB Group Sdn Bhd held 22,991,336,581 shares, representing 91.45% of the bank's total issued shares of 25,142,205,843.[24] This ownership stake has remained stable, with CIMB Group Sdn Bhd's holding at 91.44% as of 31 December 2024, underscoring its dominant position in the bank's equity structure.[1] The ultimate parent company is CIMB Group Holdings Berhad, a publicly listed Malaysian financial services conglomerate, which exercises control through its subsidiary CIMB Group Sdn Bhd.[25] No other institutional or individual shareholder holds more than 5% of the shares, ensuring CIMB Group's unchallenged majority influence over strategic decisions, including board appointments and major policies.[1] The remaining approximately 8.55% of shares constitute the public float, distributed among over 50,000 shareholders, including domestic and foreign institutions, mutual funds, and retail investors.[24][1] The bank's shares are publicly traded on the Indonesia Stock Exchange under the ticker BNGA, with the free float enabling minority shareholder participation in general meetings of shareholders (GMS), where those holding at least one-tenth of voting shares can propose agenda items per the articles of association.[1] This structure aligns with Indonesian banking regulations requiring listed banks to maintain a minimum public ownership threshold while allowing foreign majority control, as CIMB Group's stake qualifies under approved foreign investment limits for the sector.[26]| Rank | Shareholder Name | Shares Held | Ownership (%) |
|---|---|---|---|
| 1 | CIMB Group Sdn Bhd | 22,991,336,581 | 91.45 |
| 2 | PT Commerce Kapital | 255,399,748 | 1.02 |
| 3 | Citibank N.Y. S/A Govt of Norway | 226,495,431 | 0.90 |
| 4-20 | Various (institutions & individuals) | <0.30 each | <1.20 total |
Corporate Governance Framework
CIMB Niaga's corporate governance framework adheres to Indonesian Financial Services Authority (OJK) regulations, including Regulation No. 21/POJK.04/2015 and Circular Letter No. 32/SEOJK.04/2015, which outline five key aspects, eight principles, and 25 recommendations implemented on a "comply or explain" basis, with the bank reporting full compliance across all recommendations.[27] This structure emphasizes shareholder rights, equitable treatment, stakeholder roles, transparency, and board responsibilities, supported by mechanisms such as e-voting for general meetings since 2018 and online publication of meeting minutes dating back over a decade.[27] The framework also incorporates the 2021 Indonesian General Guidelines for Corporate Governance (PUGKI), applied via an "apply or explain" approach, focusing on board oversight of ethical conduct, risk management, IT resource allocation, and strategic alignment.[28] Oversight is provided by a Board of Commissioners consisting of seven members, 57% of whom are independent, and a Board of Directors with ten members selected for diversity, expertise, and tenure limits to mitigate conflicts.[27] Specialized committees, including the Audit Committee, Nomination and Remuneration Committee, and Risk Oversight Committee, feature a majority of independent members and conduct regular evaluations, with board performance assessed annually at the collective level and twice yearly for individuals.[28] The Board of Directors maintains charters updated as recently as December 6, 2024, ensuring policies for anti-corruption, whistleblowing, and creditor rights are enforced and publicly disclosed.[28] Core policies underpinning the framework include the Articles of Association, Internal Audit Charter, Code of Ethics and Conduct, Whistleblowing Policy, Conflict Management Policy, and Procurement Policy, all designed to promote transparency and accountability.[29] Disclosure practices extend beyond the website to multiple channels, such as social media and mobile applications, facilitating stakeholder engagement and material information sharing in line with policy No. M.12.[27][28] Self-assessments of GCG implementation occur semi-annually per OJK Regulation No. 17/2023, evaluating 11 factors across structure, process, and outcomes, including board duties, compliance, audit functions, risk management, and transparency.[30] In 2024, CIMB Niaga and its subsidiaries, CIMB Niaga Auto Finance and CIMB Niaga Sekuritas, each received a "Good" rating (score of 2) on the individual and consolidated basis, reflecting robust governance practices.[30] This rating system, derived from questionnaires and internal audits involving boards, directors, and executive officers, underscores ongoing alignment with regulatory expectations.[30]Key Leadership and Board Composition
PT Bank CIMB Niaga Tbk's executive leadership is provided by its Board of Directors, responsible for day-to-day management and strategic implementation. The board is headed by Lani Darmawan as President Director and Chief Executive Officer, a position she has held since her appointment via Extraordinary General Meeting resolution on December 17, 2021, with her current term running from 2025 to 2028.[31] Darmawan, an Indonesian national with over three decades in banking, previously served in senior consumer banking roles at CIMB Niaga and other institutions, including as President Commissioner of PT CIMB Niaga Auto Finance.[31] [32] The Board of Directors comprises nine members as of the latest updates in 2025, with terms generally aligned to 2025–2028 for most, except where noted. Key directors include Lee Kai Kwong (Strategy, Finance & SPAPM Director, term 2025–2028), overseeing financial strategy and risk-adjusted performance metrics; John Simon (Treasury & Capital Markets Director, term 2025–2028), managing liquidity and market operations; and Rico Usthavia Frans (Operations, Technology, Analytics and AI Director, term 2025–2028), focusing on technological infrastructure.[31] Other members handle specialized functions such as compliance (Fransiska Oei, term 2024–2027), risk management (Henky Sulistyo, term 2025–2028), human resources (Joni Raini, term 2025–2028), banking business (Rusly Johannes, term 2025–2028), consumer banking (Noviady Wahyudi, term 2025–2028), and Sharia banking (Pandji P. Djajanegara, term 2024–2027, with resignation approved effective post-Sharia business unit spin-off).[31]| Position | Name | Term of Office |
|---|---|---|
| President Director | Lani Darmawan | 2025–2028 |
| Strategy, Finance & SPAPM Director | Lee Kai Kwong | 2025–2028 |
| Treasury & Capital Markets Director | John Simon | 2025–2028 |
| Compliance, Corporate Affairs & Legal Director | Fransiska Oei | 2024–2027 |
| Sharia Banking Director | Pandji P. Djajanegara | 2024–2027 (resigning post-spin-off) |
| Risk Management Director | Henky Sulistyo | 2025–2028 |
| Human Resources Director | Joni Raini | 2025–2028 |
| Banking Business Director | Rusly Johannes | 2025–2028 |
| Consumer Banking Director | Noviady Wahyudi | 2025–2028 |
| Operations, Technology, Analytics and AI Director | Rico Usthavia Frans | 2025–2028 |
| Position | Name | Independence Status | Term of Office |
|---|---|---|---|
| President Commissioner | Didi Syafruddin Yahya | Affiliated | 2023–2026 |
| Vice President Commissioner (Senior Independent) | Glenn Muhammad Surya Yusuf | Independent | 2024–2027 |
| Independent Commissioner | Sri Widowati | Independent | 2023–2026 |
| Commissioner | Vera Handajani | Affiliated | 2025–2028 |
| Independent Commissioner | Farina J. Situmorang | Independent | 2023–2026 |
| Independent Commissioner | Dody Budi Waluyo | Independent | 2024–2027 |
| Commissioner | Novan Amirudin | Affiliated | 2024–2027 |
Operations and Services
Core Banking Products and Customer Segments
CIMB Niaga serves multiple customer segments, primarily retail (consumer), small and medium enterprises (SME), commercial banking for mid-sized firms, corporate clients, and sharia-compliant banking through its dedicated unit.[36][37] The retail segment targets individual customers with everyday banking needs, while SME and commercial segments focus on businesses requiring working capital and growth financing. Corporate banking caters to large enterprises with complex financial solutions, and the sharia unit addresses demand for Islamic products not available in conventional banking.[38] In 2024, growth emphasized consumer loans like auto and unsecured variants, alongside SME expansion.[39] Retail Banking ProductsRetail offerings include diverse savings accounts such as CIMB Junior for children, OCTO Savers, Xtra Savers, and time deposits, designed for liquidity and interest accrual.[40] Loan products encompass mortgages (KPR Niaga), auto financing, and personal loans, with a focus on secured assets to manage risk.[41] Credit cards, including contactless Visa options launched in prior years, support consumer spending, while giro accounts handle daily transactions.[18] These products prioritize accessibility, with digital integration via OCTO Mobile for over 3.2 million users as of 2023.[42] SME and Commercial Banking Products
For SMEs and mid-sized commercial clients, CIMB Niaga provides short-, medium-, and long-term loans in rupiah or foreign currencies for working capital and expansion.[40] Business giro accounts facilitate operational cash flow, complemented by factoring for receivables financing.[40] Sustainable financing options, such as eco-loans, target environmentally focused SMEs, aligning with group-wide ESG goals.[43] Loan growth in this segment contributed to broader portfolio diversification, reaching notable increases in 2023-2024 amid economic recovery.[39] Corporate Banking Products
Corporate clients access comprehensive solutions including trade finance, cash management, remittances, and value chain financing to optimize liquidity and supply chains.[3] Large-scale loans support infrastructure and project financing, often with sustainability-linked incentives like Sustainability-Linked Loans (SLL) that reward environmental targets.[43] Foreign exchange and trusteeship services mitigate currency risks for multinational operations.[40] This segment emphasizes resilient industries and state-owned enterprises, driving portfolio stability.[44] Sharia Banking Products
The sharia business unit offers compliant alternatives across segments, including mudarabah savings, murabahah financing for assets, and ijarah for leasing, serving customers seeking interest-free options.[38] Products mirror conventional counterparts but adhere to Islamic principles, with the unit maintaining Indonesia's largest network for such services.[3] Integration with core systems ensures seamless delivery, targeting both retail and business clients underserved by standard banking.[38]
Network and Digital Infrastructure
As of December 2024, CIMB Niaga maintained a network of 407 branch offices across Indonesia, encompassing conventional branches, Sharia branches, digital lounges, cash mobile units, and kiosks.[5] This infrastructure supports widespread accessibility, with branches distributed nationwide to serve retail, corporate, and Sharia banking segments. Among these, 37 digital lounges provide specialized self-service facilities focused on technology-enabled transactions, reflecting a hybrid approach to physical and digital access as of March 2024.[45] The bank's automated teller machine (ATM) network comprised 3,265 units as of December 2024, including cash deposit machines (CDM), multi-function deposit machines (MDM), and cash recycling machines (CRM).[5] These ATMs facilitate cash withdrawals, deposits, and transfers, integrated with national interbank networks for broader interoperability. Earlier data indicated expansions, with ATM counts reaching approximately 3,844 units by March 2024, underscoring ongoing enhancements to off-site and on-site deployment strategies.[45] CIMB Niaga's digital infrastructure centers on the OCTO platform, a unified digital banking service accessible via the OCTO Mobile app and OCTO Clicks web portal. OCTO Mobile functions as a super app, enabling comprehensive activities such as account management, fund transfers, bill payments, loan applications, and e-commerce integrations.[46] Recent updates include an upgraded user interface for seamless navigation, NFC-based contactless payments, and QRIS scanning for merchant transactions, with ongoing promotions like 50% cashback on vending machines extending through December 2025.[47] The platform supports affluent customer segments through advanced features like investment tracking and personalized financial insights, contributing to millions of active users amid Indonesia's digital banking growth.[48][49] Technological innovations underpin this infrastructure, including in-house development of a custom digital banking UI/UX to compete with fintech challengers.[20] Backend enhancements involve migrating critical microservices from Java to Rust, improving transaction speed and reliability as of October 2024.[50] Collaborations with e-commerce platforms further embed OCTO into daily commerce, facilitating seamless payments and financing for online trading activities.[48] These efforts align with broader digital transformation strategies, emphasizing user-centric design and scalability to handle rising transaction volumes.[51]Subsidiaries and Affiliated Entities
PT Bank CIMB Niaga Tbk maintains several wholly or majority-owned subsidiaries focused on specialized financial services complementary to its core banking operations. The primary subsidiaries include PT CIMB Niaga Auto Finance, which provides consumer financing, auto loans, and multi-purpose financing products, including digital services via the CNAF Mobile application; it holds total assets of Rp 10.8 trillion as of 2024.[52][39] PT CIMB Niaga Sekuritas engages in securities brokerage, investment banking, underwriting, and financial advisory services, with total assets of Rp 631 billion in 2024.[52][39] Additional subsidiaries encompass PT CIMB Principal Asset Management, which manages investment portfolios with 99.99% ownership by CIMB Niaga, and PT CIMB Securities Indonesia, also at 99.99% ownership, specializing in securities trading and related activities.[39] PT CIMB Sun Life, a joint venture with 50.05% ownership, offers life insurance products.[39] These entities support CIMB Niaga's diversification into non-banking financial services while adhering to regulatory requirements under the Financial Services Authority of Indonesia (OJK). Affiliated entities primarily consist of minority investments in venture capital firms and other financial institutions, such as Bank Muamalat Indonesia (0.13% stake in sharia banking) and various Sarana Ventura companies (e.g., Sarana Aceh Ventura at 1.32%, Sarana Bali Ventura at 3.81%), which focus on regional development funding.[53][39] These holdings represent passive strategic participations rather than operational control.| Subsidiary | Ownership (%) | Principal Business | Total Assets (2024, Rp billion) |
|---|---|---|---|
| PT CIMB Niaga Auto Finance | 83.28 | Auto and consumer financing | 10,800[52][39] |
| PT CIMB Niaga Sekuritas | 97.32 | Securities brokerage and advisory | 631[52][39] |
| PT CIMB Principal Asset Management | 99.99 | Asset management | Not specified[39] |
| PT CIMB Securities Indonesia | 99.99 | Securities trading | Not specified[39] |
| PT CIMB Sun Life | 50.05 | Life insurance | Not specified[39] |
Financial Performance
Historical Financial Trends
PT Bank CIMB Niaga Tbk, formed through the 2008 merger of Bank Niaga and PT Bank Lippo Tbk, has exhibited steady asset expansion and profitability growth, bolstered by integration into the CIMB Group and Indonesia's economic development.[3] Total assets increased from approximately Rp 239 trillion in the mid-2010s to Rp 268.6 trillion by mid-2019, reflecting organic growth and strategic expansions in lending and deposits amid Indonesia's banking sector consolidation.[54][55] This trajectory continued into the 2020s, with assets reaching Rp 280.9 trillion by year-end 2020 despite pandemic disruptions.[5] The COVID-19 crisis in 2020 marked a low point, with net profit declining to Rp 2.01 trillion due to elevated provisions for loan impairments and subdued economic activity, while return on equity (ROE) fell to 5.01%.[5] Post-2020 recovery was robust, driven by loan portfolio diversification into consumer and corporate segments, digital banking enhancements, and favorable interest rate environments. Loans grew from Rp 174.8 trillion in 2020 to Rp 228.0 trillion in 2024 (CAGR of 6.9%), with third-party funds (deposits) expanding from Rp 207.5 trillion to Rp 260.6 trillion (CAGR of 5.9%).[5][39] Net profit surged to Rp 6.90 trillion by 2024, yielding an ROE of 13.54%, supported by non-performing loan (NPL) ratio improvements from 3.62% in 2020 to 1.76% in 2024.[5][39] Capital adequacy remained resilient, with the capital adequacy ratio (CAR) stabilizing between 21.92% and 24.02% from 2020 to 2023 before settling at 23.34% in 2024, exceeding regulatory minimums.[5] Loan-to-deposit ratio (LDR) fluctuated from a low of 74.35% in 2021—reflecting conservative lending amid uncertainty—to 89.30% in 2023, moderating to 86.28% in 2024 as deposit growth outpaced loans in recovery phases.[5] These trends underscore CIMB Niaga's risk-managed expansion, with Sharia business unit financing growing 9.14% year-over-year in 2024.[39]| Year | Total Assets (Rp trillion) | Total Loans (Rp trillion) | Third-Party Funds (Rp trillion) | Net Profit (Rp trillion) | CAR (%) | ROE (%) | LDR (%) |
|---|---|---|---|---|---|---|---|
| 2020 | 280.9 | 174.8 | 207.5 | 2.01 | 21.92 | 5.01 | 82.91 |
| 2021 | 310.8 | 181.6 | 241.3 | 4.21 | 22.68 | 10.21 | 74.35 |
| 2022 | 306.8 | 196.6 | 227.2 | 5.10 | 22.19 | 11.71 | 85.63 |
| 2023 | 334.4 | 213.4 | 235.9 | 6.55 | 24.02 | 14.03 | 89.30 |
| 2024 | 360.2 | 228.0 | 260.6 | 6.90 | 23.34 | 13.54 | 86.28 |
Recent Performance Metrics (2019–2025)
Between 2019 and 2024, PT Bank CIMB Niaga Tbk demonstrated steady asset expansion and profit recovery following the 2020 COVID-19 downturn, with total assets increasing from Rp 274.46 trillion at year-end 2019 to Rp 360.22 trillion by year-end 2024. Wait, no Wiki. Wait, can't cite Wiki. Adjust. No, instructions: Never cite Wikipedia. So, for assets 2019, since not verified directly, avoid specific number or find alt. From trends: The bank's total assets expanded by 28.2% from Rp 280.94 trillion in 2020 to Rp 360.22 trillion in 2024, reflecting robust balance sheet growth amid Indonesia's economic rebound.[5] Net profit fell to Rp 2.01 trillion in 2020 from Rp 3.64 trillion in 2019 due to heightened loan loss provisions during the pandemic, but surged to Rp 6.90 trillion by 2024, driven by higher net interest income and controlled operating expenses.[56][5] Return on assets (ROA) and return on equity (ROE) recovered from lows of 1.06% and 5.01% in 2020 to 2.53% and 13.54% in 2024, respectively, underscoring improved profitability.[5] The net interest margin (NIM) compressed gradually from 4.88% in 2020 to 4.09% in 2024 amid competitive pressures and funding cost rises, while non-performing loan (NPL) ratio declined from 3.62% to 1.76%, indicating enhanced asset quality.[5] Capital adequacy ratio (CAR) remained robust, stabilizing above 21% throughout, reaching 23.34% in 2024.[5] Key metrics are summarized below (in Rp million unless noted):| Metric | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Total Assets | 360,220,510 | 334,369,233 | 306,754,299 | 310,786,960 | 280,943,605 |
| Total Loans | 228,002,995 | 213,369,870 | 196,611,014 | 181,613,420 | 174,754,593 |
| Third-Party Funds | 260,639,027 | 235,861,670 | 227,188,557 | 241,348,510 | 207,529,424 |
| Net Profit | 6,898,934 | 6,551,401 | 5,096,771 | 4,212,861 | 2,011,254 |
| ROA (%) | 2.53 | 2.59 | 2.16 | 1.88 | 1.06 |
| ROE (%) | 13.54 | 14.03 | 11.71 | 10.21 | 5.01 |
| NIM (%) | 4.09 | 4.40 | 4.69 | 4.86 | 4.88 |
| NPL (%) | 1.76 | 1.96 | 2.80 | 3.46 | 3.62 |
| CAR (%) | 23.34 | 24.02 | 22.19 | 22.68 | 21.92 |
Profitability Drivers and Risk Management
CIMB Niaga's profitability in 2024 was primarily driven by a 6.86% year-on-year increase in total loans to Rp228 trillion, concentrated in retail (45.17% of portfolio) and corporate segments, alongside a 10.5% rise in customer deposits to Rp260.6 trillion, which supported higher net interest income of Rp13.27 trillion.[39] Low-cost funding expanded via a CASA ratio of 66.02%, enhancing net interest margins at 4.09%, while non-interest income contributed 29.87% to total operating income through fee-based services like transaction banking and digital channels.[5] [39] Operational efficiency further bolstered returns, with the cost-to-income ratio (CIR) improving to 44.32% from 44.83% in 2023, reflecting disciplined cost management and digital transformation initiatives such as OCTO Mobile enhancements.[39] This yielded a consolidated net profit of approximately Rp6.8 trillion, up from Rp6.55 trillion in 2023, with return on assets (ROA) at 2.53% and return on equity (ROE) around 13.5%.[39] [57] Selective lending in high-growth, low-risk sectors and cross-selling via customer segmentation (e.g., youth and Sharia-focused products) sustained asset quality, minimizing impairment losses at Rp1.81 trillion.[39] Risk management underpins these outcomes through an Enterprise Wide Risk Management (EWRM) framework, aligning risk appetite with a 5-Pillar Strategy emphasizing capital preservation and balanced risk culture, in compliance with Basel III and OJK regulations.[58] [39] A three-lines-of-defense model—business units for risk-taking, oversight functions for monitoring, and internal audit—governs credit, market, liquidity, operational, and other risks, with dedicated committees like the Risk Management Committee (RMC) and Asset-Liability Committee (ALCO) conducting regular reviews (e.g., 12 Risk Oversight Committee meetings in 2024).[58] [39] Credit risk is mitigated via probability of default (PD), loss given default (LGD), and exposure at default (EAD) models, early warning systems, and collateral requirements (e.g., 125% loan-to-collateral ratio), reducing non-performing loans (NPL) to 1.76% gross in 2024 from 1.96% prior, with loan loss coverage exceeding 100%.[39] Market risk employs Value at Risk (VaR) metrics and interest rate swaps for hedging, while liquidity risk benefits from a liquidity coverage ratio (LCR) of 229.18% and net stable funding ratio (NSFR) of 116%, ensuring stable funding amid volatility.[39] Operational risk frameworks include risk and control self-assessments (RCSA), key risk indicators (KRI), and anti-fraud policies, supporting profitability by limiting losses and enabling risk-adjusted performance metrics that tie returns to capital allocation.[58] [39]| Key Metric | 2024 Value | 2023 Value | Contribution to Profitability |
|---|---|---|---|
| Net Interest Margin (NIM) | 4.09% | 4.40% | Stabilizes core earnings via efficient pricing.[5] |
| Cost-to-Income Ratio (CIR) | 44.32% | 44.83% | Enhances net margins through cost discipline.[39] |
| Non-Performing Loans (NPL) | 1.76% | 1.96% | Lowers provisions, preserving profits.[39] |
| Liquidity Coverage Ratio (LCR) | 229.18% | N/A | Ensures funding availability, reducing liquidity costs.[39] |
Technological and Operational Innovations
Digital Transformation Initiatives
CIMB Niaga has prioritized digital transformation as a core strategic pillar, integrating information technology to enhance customer experience, operational efficiency, and risk management through initiatives like microservices architecture, Robotic Process Automation (RPA), and cloud adoption.[39] The bank migrated its on-premise Big Data Platform to Google Cloud Platform's BigQuery, transferring 100 terabytes of data including historical records, alongside 2,100 extract, transform, load (ETL) processes from Oracle to Cloud Data Fusion and Spark jobs from Hive/Impala to BigQuery, enabling improved data processing and scalability.[59] Investments in artificial intelligence (AI), machine learning, and API ecosystems support features such as chatbots, biometric authentication, and personalized services, with research into natural language processing and generative AI models targeted for completion by the second quarter of 2025.[39] Central to these efforts is the OCTO Mobile super app, evolved from the 2019 Go Mobile platform, which in 2024 served 3.4 million users, processed 340 million transactions, and handled Rp 333 trillion in volume.[39] Enhancements include payroll account openings, foreign currency accounts, loan submissions, gold trading, and multi-factor authentication for wealth management, alongside integrations like Sunlife product referrals via OCTO Smart and advanced chatbot services.[39] Complementary platforms such as OCTO Clicks (1.9 million users, 8.7 million transactions, Rp 65 trillion volume in 2024) support internet banking with gold buying/selling and digital debit cards, while BizChannel@CIMB recorded 112 million transactions, a 23.5% year-over-year increase.[39] OCTO Biz, launched in 2024 for non-retail customers, further expands branchless capabilities.[39] These initiatives have driven substantial growth in digital adoption, with transaction contributions via digital channels rising from 35.41% in 2020 to 71.04% in 2024, reflecting a shift toward non-branch networks that accounted for 90% of transactions in 2024.[39]| Year | Digital Channel Transaction Contribution (%) |
|---|---|
| 2020 | 35.41 |
| 2021 | 52.99 |
| 2022 | 66.35 |
| 2023 | 70.19 |
| 2024 | 71.04 |