Exceeding Its Parent Company, BRIsyariah's Net Profit Grew By 229.6 Percent

Illustration. (Photo: BRIsyariah)

JAKARTA - PT Bank BRIsyariah Tbk recorded a net profit growth spike in the second quarter of 2020, amounting to 229.6 percent to Rp117.2 billion, compared to the second quarter of 2019. This growth is above the average growth of the national and sharia banking industry.

BRI Syariah's performance surpasses its parent company, PT Bank Rakyat Indonesia (Persero) Tbk. which recorded a decline in profit of 37 percent year on year (yoy) in the same period.

"This growth indicates that in the midst of the large-scale transition of social restrictions (PSBB), BRIsyariah continues to seek opportunities. We still have to grow to maintain business continuity. However, we certainly do this growth selectively to be able to create quality and sustainable growth," he said. President Director BRIsyariah Ngatari, in a written statement received by VOI, Monday, August 24.

Not only did it record profit growth, the growth in financing and low-cost funds for the issuer coded BRIS also experienced a significant increase. Ngatari conveyed that until the second quarter of 2020 BRIsyariah disbursed financing amounting to Rp37.4 trillion, growing to reach 55.92 percent yoy.

The significant growth in financing was supported by the Retail segment (SME, Micro and Consumer) to provide optimal returns. "The increase in BRIsyariah's net profit in the second quarter of 2020 was supported by the optimization of the intermediary function followed by controlling the cost of funds," explained Ngatari.

In detail, from 2020 to the second quarter, BRIsyariah disbursed financing amounting to Rp. 5.4 trillion for the micro segment, which is the financing segment with the highest growth rate and provides the largest contribution.

Apart from the micro segment, the growth in financing was also supported by the distribution of financing in the consumer segment amounting to IDR 2.5 trillion and the small and medium segment and partnerships of IDR 2.2 trillion.

Ngatari continued, one of the drivers of the growth of BRIsyariah financing, especially micro, is the digitization of the financing process through the i-Kurma application. BRIsyariah optimizes i-Kurma as a digital transformation step in the financing process.

This has proven to be effective in improving the performance of BRIsyariah, considering that it is possible for financing marketers to work effectively and efficiently amid the adaptation of new habits during the COVID-19 pandemic.

Ngatari further explained that the growth of BRIsyariah was also driven by the implementation of the Qanun of Islamic Financial Institutions (LKS) in Aceh. During the second quarter of 2020, BRIsyariah has opened 26 new work units in Aceh Province with a co-location system with BRI.

The opening of the BRIsyariah network in all BRI work units in Aceh accelerates the conversion process of the BRI Business in Aceh which is targeted for completion in the second semester of 2020. The total BRI loans that have been converted by BRIsyariah until June 2020 reached 82.98 percent of the total loans planned to be transferred this year. from BRI.

Meanwhile, the third party funds that have been converted in the context of implementing the Qanun LKS have reached 53.18 percent of the total targeted.

In terms of third party funds, the growth of low-cost funds (current accounts and savings) reached 90.79 percent yoy, thus increasing the ratio of cheap funds to total third party funds (CASA Ratio) to 54.34 percent.

"The increase in third party funds was supported by the growth of low-cost funds (current accounts and savings) in line with the strategy to control the cost of funds. The increase in low-cost funds (CASA ratio) led to a reduction in the cost of funds," explained Ngatari.