Effective And Prudential Risk Management, BRI's Credit Quality Is Getting Better With Strong Reserves

JAKARTA - PT Bank Rakyat Indonesia (Persero) Tbk (BRI) continues to show positive performance in maintaining asset quality in the midst of the current global economic dynamics. Until the end of the first quarter of 2025, BRI managed to record an improved ratio of non-performing loans (NPL), as well as strengthen credit risk reserves as part of efforts to maintain financial resilience in a sustainable manner.

This was conveyed at BRI's Press Conference on Financial Performance Quarter I 2025 by BRI Risk Management Director Mucharom in Jakarta (30/04). Rasio NPL BRI recorded an improvement from 3.11% at the end of March 2024 to 2.97% at the end of March 2025. This decline in the NPL ratio was the result of the effective implementation of risk management and prudential principles (prudents) in the loan disbursement process in all BRI business segments," said Mucharom.

In addition, credit quality improvements are also reflected in BRI's Loan at Risk (LAR) ratio which fell significantly, from 12.68% in the first quarter of 2024 to 11.12% in the first quarter of 2025. This improvement indicates that BRI credit portfolio management is getting healthier and more under control, although the business sector is still facing external challenges such as geopolitical uncertainty.

To maintain balance resilience, BRI also continues to increase adequate risk reserves. Until the end of March 2025, BRI's NPL Coverage Ratio was fairly strong with a ratio of 200.60%. This achievement shows BRI's readiness in anticipating potential damage to asset quality which may arise due to uncertainty in the domestic and global economy.

"With this very adequate coverage ratio, BRI is not only able to maintain balance sheet stability in a sustainable manner, but also provides confidence to investors, regulators, and all stakeholders that the company has strong fundamentals in dealing with economic dynamics, especially in the midst of global economic and geopolitical pressure conditions such as tariff wars," said Mucharom.

Meanwhile, in terms of lending, until the end of the first quarter of BRI managed to record credit disbursement of Rp1,373.66 trillion or grew 4.97% yoy. BRI's lending is still dominated by the MSME segment with a portion of 81.97% of BRI's total credit, or with a nominal value of Rp1,126.02 trillion. This positive achievement reinforces BRI's commitment to strengthening the foundations of the people's economy. Through financial support to the productive sector, BRI plays a strategic role in opening new jobs and contributing to reducing the national poverty level, in line with the national development vision listed in the Asta Cita Government of the Republic of Indonesia.

For information, BRI Risk Management Director Mucharom was appointed at the Annual General Meeting of Shareholders (AGMS) on March 24, 2025 and was able to carry out duties and functions in his position after obtaining approval of OJK Assessment and Property Assessment. (ADV)