Bank Profits Stagnant, Sale of Non-Performing Assets No Longer Dominant

Several banks are still relying on income from the sale of non-performing assets, or recovery income, to withstand profit pressures in 2025. The performance of the banking industry has appeared to slow in recent times. This strategy is still being pursued, even though industry players see its prospects as increasingly challenging. The economic conditions have not fully recovered, and stocks of non-performing assets are starting to dwindle. Last year, several major banks recorded profit growth supported by an increase in income from asset sales. PT Bank Mandiri Tbk (BMRI) also recorded a 0.92 percent increase in net profit. Recovery income reached Rp 7.28 trillion, up 15 percent from the previous year. Senior Vice President of the Indonesian Banking Development Institute (LPPI) Trioksa Siahaan assesses that the sale of non-performing assets will still be used this year. Its role is no longer the main driver of profits. According to him, the limited stock of assets and economic conditions are the main challenges. “The prospects for selling non-performing assets will slow down and will be offered at a discount,” said Trioksa. From the banking side, EVP of Corporate Communication & Social Responsibility at BCA, Hera F. Haryn, stated that the resolution of non-performing assets is proceeding according to targets and schedules. All sales processes follow applicable regulations. Up to 2025, BCA’s NPL coverage ratio reaches 183.8 percent. This level is considered sufficient to anticipate future risks.