Admittedly, 2020 Is Tough, BRI Is Still Able To Generate Net Profit Of IDR 18.66 Trillion

JAKARTA - PT Bank Rakyat Indonesia Tbk (BRI) has successfully booked a net profit of IDR 18.66 trillion throughout 2020. However, this achievement has decreased significantly compared to the 2019 acquisition of IDR 34.41 trillion.

President Director of BRI Sunarso said that the decline in the company's profits was due to the impact of the pandemic that is currently hitting.

"What we are experiencing right now is the heaviest crisis when compared to the previous crises, such as the 1998 crisis and the 2008 financial crisis," he said in a virtual press conference on his 2020 performance presentation, Friday, January 29.

Sunarso added, on a consolidated basis, BRI managed to distribute loans worth Rp938.37 trillion or grew 3.89 percent year on year.

BRI's micro credit recorded with a double digit increase of 14.18 percent, small and medium credit grew 3.88 percent and consumer credit grew 2.26 percent.

This positive performance resulted in an increase in the portion or portfolio of BRI's MSME loans which touched 82.13 percent of the total loans.

“The challenge now is to find new sources of growth. The strategy is that BRI will focus on two areas, first, we will upgrade the existing ones. Second, look for new sources of growth, namely looking for smaller ones than micro, "he said.

BRI Group credit growth was able to be accompanied by improvements in credit quality with an NPL of 2.99 percent with an NPL coverage of 237.73 percent.

Meanwhile, BRI's Third Party Funds (DPK) recorded a growth of 9.78 percent to Rp1,121.10 trillion with the composition of low-cost funds (CASA) reaching 59.67 percent. Capital conditions are claimed to be getting stronger with CAR at the level of 21.17 percent.

"This year, BRI is optimistic that credit will grow better above the national industry average, with the supporting factor, namely LDR which is still maintained at the level of 83.70 percent. This is in line with the improvement in people's purchasing power and household consumption which are the main factors driving demand for credit, 'said Sunarso.