BRI Calls Profit Growth In The First Quarter Of 2023 Driven By Efficiency Efforts

BRI Deputy President Director Catur Budi Harto. (Photo: Doc. Antara)

JAKARTA - PT Bank Rakyat Indonesia Tbk (BRI) said that net profit growth of 27.4 percent to Rp15.5 trillion in the first quarter of 2023 was also supported by the implementation of efficiency carried out by the company.

BRI Deputy President Director Catur Budi Harto revealed that the MSME business segment, especially Micro, is the main contributor to growth.

According to him, BRI's micro segment credit was able to grow double digits by 11.18 percent throughout January 'March 2023.

"Thus, BRI's total credit on a consolidated basis grew to Rp1,180.1 trillion, as much as 47.7 percent of the total loans were distributed to the micro and ultra micro segments. Meanwhile, the portion of the MSME segment has reached 83.8 percent of BRI's total credit or equivalent to Rp989.6 trillion," he said in a written statement on Monday, May 8.

Catur added that the company's ability to distribute credit was also balanced with prudent risk management.

"This is reflected in the NPL ratio at the end of the first quarter of 2023 of 2.8 percent or an improvement when compared to NPL in the same period last year of 3.09 percent. Improved quality of credit makes BRI credit cost improve, so as to encourage BRI's performance," he said.

On the same occasion, Head of Equity Berdikari Investment Management Agung Ramadoni said, these two things encourage a greater profit margin for the issuer codenamed BBRI shares.

"Judging from BRI's performance achievement in the first quarter of this year, not only from credit growth but also from the efficiency carried out by the company," he said.

In more detail, Agung explained, the bank's ability to increase efficiency can be seen from BRI's lower operating cost growth compared to revenue.

It is stated that one of the indicators is in credit costs or bank credit costs which fell 198 basis points (bps) as of March 2023 compared to last year's position.

"The bank's ability to increase efficiency can also be seen from the return on average equity (ROAE) or the average equity return rate which rose significantly to a level above 20 percent," concluded Agung.