OCBC NISP's Credit Engine Slows Down
Jakarta, CNBC Indonesia — PT Bank OCBC NISP Tbk’s (NISP) credit growth slowed sharply in the first quarter of 2026, amid improving liquidity conditions.
According to the company’s financial report, OCBC’s credit stood at Rp170.56 trillion as of March 2026. This figure grew by around 1.3% year-on-year (yoy) compared to Rp168.42 trillion in March 2025.
However, in the previous period, credit growth was still quite robust. OCBC’s credit in March 2025 grew by about 10.8% yoy from Rp152.09 trillion in March 2024. This indicates a significant slowdown in credit expansion over the past year and even a contraction compared to the position in December 2025.
Interestingly, this credit slowdown occurred when low-cost funds or current account savings accounts (CASA) actually increased. Customer demand deposits rose to Rp77.92 trillion in March 2026 from Rp53.16 trillion a year earlier, while savings increased to Rp62.25 trillion from Rp55.35 trillion.
On the other hand, time deposits fell sharply to Rp86.22 trillion from Rp109.19 trillion in the same period.
This condition shows that OCBC’s funding structure has improved as reliance on expensive funds begins to decrease. However, the looser liquidity has not yet been fully translated into aggressive credit expansion.
Nevertheless, the bank’s margins experienced a correction. Net interest margin (NIM) fell by 10 basis points year-on-year to 4%.
The conservative approach is evident from the renewed increase in provisioning for problematic loans. In Q1 2026, OCBC set aside provisions for impairment losses on financial assets amounting to Rp280.43 billion. In contrast, in the same period last year, the bank recorded a reversal of provisions amounting to Rp48.88 billion.
Although credit growth slowed and provisioning costs increased, OCBC’s net profit still rose. The company recorded a net profit of Rp1.36 trillion in Q1 2026, up from Rp1.29 trillion in the same period the previous year.
The profit increase was supported by an improvement in net interest margins following a decline in interest expenses. Interest expenses were recorded at Rp1.59 trillion, down from Rp1.93 trillion previously.
OCBC President Director Parwati Surjaudaja stated that the bank is pursuing cautious growth. “The positive credit growth reflects our commitment to supporting customer needs and the economy, while the increase in CASA demonstrates growing customer confidence in our services,” she said.