BRI Targets Double Digit Credit Growth

President Director of BRI Sunarso. (Dok BRI)

JAKARTA - PT Bank Rakyat Indonesia (Persero) Tbk targets credit growth in 2024 to reach double digits, in the range of 10-11 percent year on year.

BRI President Director Sunarso revealed that the company has a strategy to aggressively encourage credit growth in 2024.

"If in 2023 BRI grew its credit 11.2 percent, then BRI wants to continue to grow aggressively in 2024, which is 10-11 percent of the nominal value of thousands of trillions, so it is quite large. The strategy is that BRI will remain focused on MSMEs, we have planned to go smaller, namely entering the ultra micro segment. Therefore, we have also made Holding UMi a new source of growth," Sunarso said in a statement to the media, Saturday, March 2.

BRI's commitment to sustainable growth is considered positive by investors. Research from James Stanley Widjaja, analyst at Buana Capital Sekuritas, which targets the price of BBRI at IDR 6,800 percent of shares. Driven by revenue from credit growth, Kupedes's larger contribution, cost control, and also credit cost normalization.

"Our view. We affirm Buy's recommendation, with a higher price target of IDR 6,800 percent of the shares. We reached 3.0x PBV using GGM assuming ROE 21 percent and growth 7 percent," explained James Stanley.

The consensus of analysts compiled by Bloomberg involving 34 analysts resulted in BBRI's share price target at IDR 6,659.94 per share in the next 12 months. A total of 33 analysts recommend Buying for BBRI shares.

Until the end of 2023, BRI recorded that it had succeeded in encouraging lending to grow 11.2 percent yoy to Rp1,266.4 trillion. This achievement is higher than the national banking industry loan distribution of 10.4 percent yoy throughout 2023.

BRI's credit reached 1,266 trillion. This means that it is able to grow 11.2 percent and what is more interesting and more important for BRI is that we remain focused on MSMEs in BRI's MSME loan portion reaching 84.38 percent. We aspire to reach 85 percent by 2025," he concluded.

Most recently, BRI also held the 2024 Annual General Meeting of Shareholders (AGMS) in Jakarta (01/03). At this AGMS, the company approved to distribute dividends of IDR 48.10 trillion or dividends per share of IDR 319, equivalent to dividend payout ratio of approximately 80.04 percent of the contribution profit.

The dividends distributed by BRI increased by 10.59 percent compared to the nominal paid in 2023 of IDR 43.49 trillion.

The dividends worth IDR 48.10 trillion or IDR 319 per share include the amount of Interim Dividends that have been distributed to Shareholders on January 18, 2024, amounting to IDR 12.67 trillion or IDR 84 per share.

Thus, the remaining amount of cash dividends to be paid to Shareholders is at least Rp35.43 trillion or Rp235 per share. For the dividend part of the Republic of Indonesia for ownership of 53.19 percent of the shares, BRI will deposit approximately Rp25.71 trillion to the State General Cash Account.