Increase The Total Profit Achievement of Priority Unit by Analyzing Determinants of Total Profit Case Study: PT Bank SMS Balikpapan Branch Office

Banks, as providers of financial services, according to their function as public fund collectors, have customers with various characteristics of different financial needs. In providing the best service to customers, banks must be able to classify the types of customers or create customer segmentation so that the services offered are right on target in meeting customers' emotional and transactional needs. In the banking business, one form of segmentation is priority service. Certain customer segments are expected to have a significant contribution to achieving bank profits, although there is a possibility that customer segmentation does not contribute positively to profit. Therefore, banks need to evaluate the profit contribution of customer segmentation to ensure that this segment contributes positively to company profits continuously. This study aims to analyze and examine the factors of the customer portfolio that affect the achievement of priority unit performance profits, including ownership of bank products, CASA, total credit usage (outstanding loan), time deposit, and investments. This study collects the portfolio of 721 customers at the PT Bank SMS Balikpapan Branch Office period 2019 to 2022 from PT Bank SMS internal data. This study uses a quantitative approach, panel data regression, with the help of Stata 17 software, to determine the variables that impact achieving profit. The results show that the total ownership of bank products, CASA, credit usage (outstanding loan), and time deposits positively affect the achievement of priority performance profit. Increasing ownership of bank products, CASA, outstanding loan, and time deposit will increase the profitability of priority unit performance. On the contrary, investment has a non-significant relationship to the achievement of profit. Therefore, the priority unit must have a strategy focusing on these four things to achieve profit targets. Priority units are expected to know the needs of customers and be able to provide solutions to customer needs. This study provides practical implications for the company by creating a collaboration program to achieve profit on priority performance. Priority units need assistance from other units related to knowledge of credit products and establishing customer relationships. For further research, the scope of research can be expanded by adding several independent variables such as cost factors, bank product variables detailed in each product, credit facility differentiated by the type of credit (productive or consumptive loan), credit collectability, and reserve value for non-performing loans.