JAKARTA - In order to meet its target of becoming a digital bank, PT Bank Raya Indonesia Tbk (AGRO) must bear losses of up to IDR 3.05 trillion throughout 2021.
According to the company's management, the loss was due to a significant increase in the allowance for impairment losses (CKPN). The CKPN was increased to support the transformation carried out by the company, especially in the transition from the legacy business to a digital bank.
The bank, previously known as PT Bank BRI Agro Tbk, is also currently managing non-current loans from legacy businesses.
"Bank Raya's business transformation from legacy business to digital credit business development has contributed to growth in digital credit distribution through the PINANG (Central Loans) application, which reached Rp488 billion at the end of 2021, an increase of six times compared to the previous period," said Bank Raya management, quoted by Antara, Friday, April 1.
This shows the commitment of Bank Raya to continue to expand access to equitable credit distribution in Indonesia.
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Overall, Bank Raya recorded disbursement of loans of IDR 11.61 trillion, a decrease of 40.45 percent compared to the previous year (year on year / yoy) due to changes in the business portfolio from medium businesses to digital businesses.
In addition, Bank Raya recorded third-party funds (DPK) of IDR 13.50 trillion or decreased by 41.31 percent (yoy), which reflects the policy of lowering deposit interest rates taken by the company due to adjustments in funding needs due to changes in business focus.
In terms of interest costs, the company managed to run its business with more efficient interest costs, so that there was a significant decrease in interest expense at the end of 2021, which was 40.80 percent (yoy) to IDR 773.62 billion.
This decrease was accompanied by operational activities that could be carried out efficiently so that without taking into account CKPN on assets, Bank Raya posted an operating profit before reserves of IDR 582 billion, an increase of 53.18 percent (yoy).
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