Until Quarter III, BRI Records Saluring Credit Of IDR 1,250.72 Trillion

Illustration. (Photo: Doc. Antara)

JAKARTA - Until the end of September 2023, PT Bank Rakyat Indonesia Tbk (BBRI) was recorded to have disbursed loans amounting to Rp1,250.72 trillion or grew 12.53 percent year on year (yoy).

BRI President Director Sunarso said this achievement was still in line with BRI's projection, where by the end of this year the company targets credit growth to be at the level of 10-12 percent yoy.

"All credit segments recorded positive growth," he said in an online press conference, Wednesday, October 25.

He further added that specifically for the distribution of BRI MSME loans, it was also recorded that it grew 11.01 percent from the original Rp935.86 trillion at the end of the third quarter of 2022 to Rp1,038.90 trillion at the end of the third quarter of 2023. Thus, BRI's MSME loan portion reached 83.06 percent compared to BRI's total credit.

"The double-digit growth credit has a positive impact on interest income, where until the end of September 2023, BRI's interest income had reached Rp138.63 trillion or grew 13.91 percent yoy," added Sunarso.

He further added that BRI's success in channeling the credit was also accompanied by a comprehensive strengthening of the Environmental, Social & Governance (ESG) aspects in the company's business activities. Where until the end of the third quarter of 2023, BRI's ESG-based credit was able to grow 11.89 percent to Rp750.91 trillion, bringing the portion to 66.1 percent of the total credit portfolio.

"This figure further strengthens BRI as the bank with the largest sustainable credit portfolio in Indonesia," he said.

On the other hand, BRI's success in disbursing the credit was also balanced with good risk management. This is illustrated from the quality of BRI's credit or NPL (Non Performing Loan) which was recorded at 3.07 percent or better when compared to NPL in the same period last year of 3.09 percent.

In addition, the Company also managed to reduce Loan at Risk (LAR), where until the end of the third quarter of 2023, LAR BRI was recorded at 13.80 percent. This figure improves or decreases when compared to LAR BRI in September 2022 which amounted to 18.68 percent.

"We are optimistic that next year LAR BRI can return to its pre-pandemic position and condition, which is in the range of 9-11 percent," continued Sunarso.

BRI's efforts to maintain credit quality also have an impact on BRI's improved Credit Cost, from 3.02 percent in the third quarter of 2022 to 2.44 percent in the third quarter of 2023.

As part of the soft landing strategy, the Company also continues to provide qualified reserves, where until the end of the third quarter of 2023, BRI's NPL Coverage reached 228.65 percent.

"The decline in NPL coverage (compared to the position during the pandemic) is not to increase profits, but to erase MSME loans affected by COVID-19," said Sunarso.