Large Banks’ Profits Grind Out Smaller Banks’ Performance
The banking sector saw a sluggish performance in 2019, as only the large banks in the Commercial Bank based in Business Activities (BUKU) IV posted increased profits. According to the Indonesian Banking Statistics (SPI) data released by the Financial Services Authority, BUKU IV's banks booked Rp 108.356 trillion of earnings in 2019, up 9.45 percent on an annual basis (year-on-year/YoY).
On the contrary, the profit of small-sized banks in the BUKU I category reached only Rp 457 billion or a 34.71 percent lower than the 2018 achievement. Banks in the BUKU II category also posted a 1.9 percent decline in profits to Rp 9 trillion YoY. Similarly, BUKU III banks’ profits slumped 10.04 percent (YoY) to Rp 34.478 trillion last year.