Indonesia’s BTPN Syariah sees 21% revenue growth in Q3 2022

Indonesia’s BTPN Syariah, a Shariah-compliant bank that focuses on women entrepreneurs, recorded a 21% year-on-year jump in revenue to hit almost 1.4 trillion rupiah (around US$89.4 million) in the third quarter of this year.

The bank’s return for third parties – equivalent to interest expenses in a conventional bank – also declined by around 10% to US$5.5 million. The decrease led to a 44% uptick in net profit to US$30.3 million for the period.

An increment in loan disbursements, which rose by 11% to US$727 million in the quarter compared to the same period a year ago, also fueled revenue growth.

Founded as a Shariah-compliant business unit of Bank BTPN in 2010, BTPN Syariah was spun off in 2014. It focuses on disbursing loans to women entrepreneurs in rural areas across Indonesia and has a network of more than 10,000 agents reaching over 4.1 million active borrowers.

Earlier this year, it launched its own investment arm called BTPN Syariah Ventura with around US$21 million in capital to be disbursed. Hadi Wibowo, the bank’s executive director, said that the corporate VC arm aims to invest in at least one startup every year.

See also: As digibanks rise, will Indonesia’s online lenders become obsolete?

Currency converted from Indonesian rupiah to US dollar: US$1 = 15,537 rupiah.