BRI Continue Buyback Share Rp3 Trillion As Of August 2023

Illustration (Photo: Doc. Antara)

JAKARTA - PT Bank Rakyat Indonesia Tbk. (BRI) is said to be in the process of buying back shares with a maximum value of IDR 3 trillion.

BRI President Director Sunarso said the buyback shares would be used for the share ownership program for BRILian Personnel.

"On the other hand, BBRI's buyback is projected to increase BRILian personnel' motivation and performance so that it can be more optimal in achieving the target so that it can lead to an increase in the company's performance," he said in a written statement on Monday, August 29.

According to Sunarso, this step is based on the consideration of the company's liquidity conditions when proposing a buyback plan in this year's AGMS and taking place March 1, 2022 - August 31, 2023.

"We ensure that the corporate action will not interfere with the company's finances," he said.

On the same occasion, CSA Research Institute Senior Analyst Reza Priyambada said that the largest bank action in Indonesia was a signal of economic recovery that continued to strengthen.

It's like they (BRI) still have improved performance. This is certainly a support for growth for BRI," he said.

To note, on March 1, 2022, the BRI Annual General Meeting of Shareholders (AGMS) has obtained shareholder approval to implement the share buyback.

In terms of performance, the bank with the stock code BBRI in the first semester of 2022 successfully scored a net profit of IDR 24.8 trillion or grew 98.3 percent year on year (yoy).

Meanwhile, total assets increased 6.3 percent to Rp1,652.8 trillion. In terms of financing, consolidated lending reached Rp1,104.7 trillion or grew 8.7 percent.

Then, BRI's MSME credit portfolio as the company's core business grew 9.8 percent from IDR 837.8 trillion at the end of June 2021 to IDR 920 trillion at the end of June 2022.

This brings the proportion of MSME loans to 83.2 percent of the company's total portfolio of financing distribution.

This achievement was accompanied by good risk management with a consolidated ratio of non-performing loans or NPL maintained at the level of 3.2 percent.

BRI's management has also prepared reserves as an anticipatory measure for potential credit loss with NPL coverage of 266.2 percent.