BRI Optimistic To Close 2023 With Positive Performance

Illustration of BRI bank (Photo: dock. Antara)

JAKARTA - President Director of PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) Sunarso said that his party is optimistic about facing the remainder of the year 2023 by recording brilliant financial performance and achieving the set target.

Sunarso added that the transformation that BRI has carried out since 2016 has proven to produce impressive performance both in terms of Profitability and Balance Sheet. This makes the company more optimistic towards the end of 2023 with brilliant performance achievements.

BRI's optimism is inseparable from BRI Group's success in recording positive performance until the third quarter of 2023, where BRI's consolidated assets managed to grow 9.93 percent year on year (yoy) to Rp1,851.97 trillion.

The asset growth was also accompanied by profit in 9 months which reached Rp44.21 trillion or grew 12.47 percent (yoy).

In terms of the intermediation function, Sunarso revealed that the company is targeting credit growth of 10 percent to 12 percent year on year in 2023.

"The realization, until the end of September 2023, BRI Group's lending was able to grow 12.53 percent (yoy) to Rp1,250.72 trillion and all credit segments recorded positive growth. This achievement was above the set target and we project that it will continue until the end of 2023," said Sunarso at the Public Expose Live 2023 in Jakarta 30 November.

"Especially for the distribution of BRI MSME loans, it was also recorded that it grew 11.01 percent from Rp935.86 trillion at the end of the third quarter of 2022 to Rp1,038.90 trillion at the end of the third quarter of 2023. Thus, BRI's MSME loan portion reached 83.06 percent compared to BRI's total credit," he said.

BRI's success in disbursing the credit was also balanced with good risk management. This is illustrated from the quality of BRI's credit or NPL (Non Performing Loan) which was recorded at 3.07 percent or better when compared to NPL in the same period last year of 3.09 percent.

In addition, as part of the soft landing strategy, BRI also continues to provide adequate reserves with NPL Coverage of 228.65 percent.

"In terms of collecting Third Party Funds (DPK), BRI recorded a total DPK of Rp1,290.29 trillion or grew 13.21 percent (yoy). The main support for the BRI DPK is still sourced from low-cost funds (CASA) with a portion of 63.64 percent or Rp821.14 trillion," he said.

BRI's strategy, which continues to focus on increasing the portion of low-cost funds and digitizing its business operations, has an impact on the better ratio of the company's efficiency. This is reflected in the ratio of BOPO (Operational Costs to Operating Income) and CIR (Cost to Income Ratio) which are consistently getting better.

"The BOPO ratio improved from 68.36 percent to 68.07 percent and the CIR improved from 42.55 percent to 41.28 percent," he explained.

BRI's ability to grow sustainably is also supported by adequate liquidity and strong capital. This is reflected in the ratio of Bank LDR (Loan to Deposit Ratio) which is maintained at 87.76 percent and CAR (Capital Adequacy Ratio) at 27.48 percent or far above regulatory provisions.

Sunarso conveyed that BRI's strategy to grow sustainably is two. The first strategy is to classify existing customers with various empowerment and mentoring programs.

Meanwhile, the second strategy is to find new sources of growth, or target the ultra micro segment through Holding Ultra Micro (UMi) together with PNM (National Madani Capital) and Pegadaian.

After two years of formation, Ultra Micro Holding has experienced tremendous growth. By the end of September 2023, Holding UMi has successfully integrated more than 37.3 million borrower customers, or grew by around 17.3 percent (yoy) with outstanding credit and financing reaching Rp614.9 trillion, or grew 9.5 percent (yoy).

Sunarso said that he continues to be committed to implementing sustainable finance. Currently, BRI is increasingly focusing on integrating the Environmental, Social & Governance (ESG) aspects comprehensively in the company's business and operational activities to ensure the sustainability of its main companies through the management of stakeholders expectations and the implementation of best-prectitice and international standards.

Until the end of September 2023, BRI has disbursed loans to the Sustainable Business Activity/KKUB Category amounting to IDR 750.9 trillion, or around 66.1 percent of BRI's total credit disbursement.

This figure has increased by 11.9 percent (yoy). Of this nominal, Rp669.1 trillion was channeled to the MSME sector, and Rp81.8 trillion was channeled to the Environmental-Intentioned Business Credit/KUBL sector or commonly called green loans.

BRI's ESG practices have also had a real impact on the Indonesian people.

"In accordance with its business model, BRI has made a significant contribution in increasing financial inclusion and literacy in Indonesia. Based on internal research, BRI has contributed about 70 percent of the 85.1 percent achievement of Indonesia's financial inclusion index which was surveyed in 2022," said Sunarso.

One clear evidence of BRI's transformation that has a positive impact on public financial inclusion and literacy, namely Super App BRImo. This versatile application has been used by 30.4 million users since its launch in February 2019.

"Currently (up to October 2023) the BRImo Super App has been used by 30.4 million users, this figure has increased rapidly from 2.9 million users at the end of December 2019. In terms of transaction volume, it has reached Rp3,353 trillion or grew by around 60.83 percent (yoy). This is one of the results of BRI's digital transformation, apart from aiming to increase efficiency, this initiative is also continuously being developed to answer market needs," he said.

Sunarso said that through sustainable transformation and execution of good strategies, BRI is optimistic that it will be able to continue to create value, both from an economic and social perspective, and will provide optimal returns to shareholders in the future.