BRI Bank Profit Slightly Increases To IDR 45.36 Trillion In The Third Quarter Of 2024

BRI bank (Photo: dock. Antara)

JAKARTA - PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) recorded a net profit of IDR 45.36 trillion until the end of the third quarter of 2024 or grew positively compared to the same period in 2023 of IDR 44.21 trillion.

This achievement is considered inseparable from BRI's focus which consistently strengthens performance fundamentals, and carries out strategic responses appropriately in dealing with various market dynamics.

"The year 2024 is actually still a year full of challenges with global and domestic economic dynamics that affect various sectors, including the financial and banking sectors. However, in the midst of these challenges, BRI, thank God, managed to record financial performance with very good growth," said BRI President Director Sunarso quoting Antara.

Looking at the intermediation side, BRI distributed loans worth IDR 1,353.36 trillion or grew 8.21 percent year on year (yoy) until the end of September 2024.

As much as 81.70 percent or around Rp1,105.70 trillion of the total credit distribution is credit to the micro, small and medium enterprises (MSMEs) segment.

The positive-growing lending is said to have made BRI's assets recorded an increase of 5.94 percent yoy to Rp1,961.92 trillion.

In this case, his party is committed to strengthening and empowering MSMEs as an important pillar of national economic growth in order to build a more inclusive and just economy.

As credit disbursement continues to grow, he continued, BRI is also able to manage asset quality well. This Data shows that BRI's Non Performing Loan (NPL) ratio in the third quarter of 2024 was recorded at 2.9 percent or an improvement compared to the same period the previous year, which was 3.07 percent.

The company also managed to record a better Loan at Risk (LAR) ratio, from 13.80 percent at the end of the third quarter of 2023 to 11.66 percent at the end of the third quarter of 2024.

The decline in the NPL and LAR ratios is supported by the implementation of a disciplined risk management strategy in all business lines.

His party is declared to be actively monitoring credit quality and adopting the Early Warning System to detect potential credit problems as early as possible, as well as strengthen the recovery team to manage problematic credit more quickly and efficiently.

In addition to improving credit quality, BRI is still preparing adequate reserves with NPL Coverage of 215.44 percent.

In managing asset quality, BRI has also implemented various risk mitigation measures. Starting from selective growth, growing selectively, proactive credit monitoring, strengthening reserves, to solving problematic loans with a collaborative approach with customers," said Sunarso.

In terms of liabilities, BRI collected Third Party Funds (DPK) amounting to Rp1,362.42 trillion or grew 5.59 percent yoy. The portion of the composition of low-cost funds (Current Account Saving Account/CASA) still dominates BRI's DPK which reached 64.17 percent, an increase compared to CASA in the same period last year, which was 63.64 percent.

One of the main factors in increasing the collection of low-cost funds is the digital transformation carried out by BRI through BRImo super apps as an integrated banking solution and easily accessible to customers anytime and anywhere.

This innovation has proven to encourage an increase in the number of savings customers, especially among millennials and the younger generation who are getting digital-savvy.

By the end of September 2024, BRImo users had recorded 37.14 million users with a transaction volume of IDR 4,034 trillion or grew 35.20 percent yoy.

Through the development of bank hybrid services, he said, BRI has also expanded its banking reach to segments of society that were previously not served.

"It means that people who have not been served optimally, including people in remote areas through Agent BRILink. This is in accordance with BRI's mission to support national financial inclusion and strengthen the people's economy through the concept of sharing economy," said Sunarso.

It is noted that his party has more than 1 million BRILink Agents spread across 62 thousand villages throughout Indonesia until September 2024, Throughout January-September 2024, these agents recorded transactions of IDR 1,170 trillion from 859 million financial transactions.

BRI's positive performance achievement is also supported by adequate liquidity and strong capital conditions, where the Loan-to-Deposit Ratio (LDR) is at the level of 89.18 percent and the Capital Adequacy Ratio (CAR) at the level of 26.76 percent.

"In the future, BRI will continue to manage liquidity prudently to ensure BRI is ready to face global and domestic economic challenges with adequate liquidity and strong capital," he said.

"BRI still has enough room to grow. BRI is optimistic that it can close this year 2024 with positive performance, especially by focusing on strengthening performance fundamentals that form resilience, so BRI is always ready to face various challenges, both globally and domestically," he said.