Private Banks Prioritise Credit Quality Amid Economic Uncertainty
Global economic uncertainty and continued tight liquidity have prompted several private banks to adopt more cautious business strategies for the second half of 2026. In this environment, the banking focus has shifted from pursuing maximum credit growth to maintaining asset quality, tightening credit distribution, and strengthening liquidity and capital.
This pattern is evident in the first-half 2026 performance reports of several private banks. While some have still recorded credit growth, expansion is being conducted more selectively, prioritising portfolio quality and risk management.
PaninBank is one of the banks that has experienced a contraction in credit growth. As of the first half of 2026, the company’s credit was recorded at Rp 139.64 trillion, a decrease of 3.75 per cent compared to the same period last year. This decline aligns with the company’s policy of being more selective in choosing business sectors, debtors, and financing purposes to maintain credit portfolio quality amidst global economic uncertainty.
A similar strategy is being implemented by PT Bank Neo Commerce Tbk (BNC). The company has reduced credit distribution in the commercial and corporate segments but increased consumer and MSME financing by 6.68 per cent to Rp 5.8 trillion. This move was taken to improve portfolio composition while maintaining asset quality.
BNC President Director Eri Budiono stated that the company now prioritises the quality of growth over mere expansion. “The first half of 2026 shows that our strategy to prioritise quality growth, operational efficiency, and more disciplined risk management has yielded positive results. We believe a strong foundation is a primary prerequisite for creating sustainable growth,” Eri said in a written statement on Friday (31/7/2026).
Meanwhile, Permata Bank still recorded credit growth of 5.3 per cent to Rp 171.2 trillion. Despite the growth, expansion remains cautious. This is reflected in the gross non-performing loan (NPL) ratio, which remains maintained at 2.1 per cent, and the loan at risk (LAR) ratio, which improved to 5.9 per cent.
Permata Bank President Director Meliza M. Rusli stated that this performance demonstrates the company’s ability to maintain growth amidst changing economic conditions. “The first-half 2026 performance not only reflects healthy results but also demonstrates customer confidence and our ability to continue adapting amidst rapid changes,” said Meliza.
A similar approach is visible at OCBC. As of June 2026, credit grew by 11 per cent to Rp 185.3 trillion, supported by an 11 per cent growth in third-party funds. Although credit increased, asset quality remained stable with a gross NPL ratio of 1.9 per cent and the LAR ratio falling to 4.8 per cent.
OCBC President Director Parwati Surjaudaja stated that the company will continue to maintain healthy and sustainable growth amidst economic challenges. “The positive performance in the first half of this year further strengthens OCBC’s foundation to continue growing healthily and sustainably while maintaining the principle of prudence,” said Pariente.
Danamon also recorded growth in credit and trade finance of 12 per cent to Rp 230.1 trillion in the first half of 2026. At the same time, asset quality improved, with the LAR ratio falling to 7.8 per cent, an improvement of 263 basis points compared to the same period last year.
Danamon President Director Nobuya Kawasaki stated that the company is optimistic about maintaining growth in the second half of this year by continuing to apply prudent risk management. “We are optimistic about navigating the second half of this year with a strong financial foundation and risk management that emphasises the principle of prudence,” said Nobuya.