IndoNEWSian – Bank Mandiri saw its digital fee income increase by double digits.
Indonesian banks are starting to see returns from their IT investments, as certain banks report twice the growth in digital fees compared to previous periods.
Bank Central Asia For instance, it is overturning the advantages derived from its IT investments. The company currently boasts the banking sector’s lowest cost-to-income ratio and the highest current account and savings account (CASA) ratio, as stated in a report by UOB Kay Hian (UOBKH) analyst Posmarito Pakpahan.
Bank Mandiri, In the meantime, its funding structure has improved, and its CASA ratio stands as the second highest among the Big Four banks. Additionally, its digital fee income saw double-digit growth, as reported by UOBKH.
Individually, Bank Central Asia and Bank Mandiri boast superior asset quality compared to their competitors, attributed to their controlled write-offs and low generation of new non-performing loans (NPLs), according to the report.
Bank Rakyat Indonesia (BRI) and Bank Negara Indonesia (BNI) are both currently working on improving their deposit franchises.
The operational costs for IT continue to be high in the first quarter of 2025 within the banking sector.
