NPL Increases 24.58 Percent, BRI Prepares Reserves For Uncertainty In 2023

Illustration of Bank BRI (Photo: Antara)

JAKARTA - PT Bank Rakyat Indonesia (Persero) Tbk is preparing to increase reserves to deal with all eventualities in 2023.

It is known that BRI has prepared sufficient reserves with Non Performing Loan (NPL) Coverage recorded at 305.74 percent, where this figure has increased by 24.57 percent compared to NPL Coverage at the end of 2021 which was 281.16 percent.

"These adequate reserves are an anticipatory step and a risk mitigation effort in facing global economic uncertainty, rising inflation and interest rates, as well as the potential for an economic slowdown," said BRI Main Director Sunarso in a Presentation of BRI's Financial Performance for the Fourth Quarter of 2022, Wednesday, 8 February.

Sunarso added, BRI also recorded a manageable consolidated BRI NPL ratio at the level of 2.67 percent.

"BRI's strategy in maintaining credit quality is by selective growth, or selective in determining the feasibility of a customer's business by taking into account the conditions and potential of the customer's business, as well as implementing a soft landing strategy by preparing sufficient reserves to anticipate the risk of deteriorating credit quality," explained Sunarso.

It is known that in terms of lending, the total credit and financing of the BRI Group was recorded at IDR 1,139.08 trillion at the end of December 2022.

In particular, BRI's Microcredit portfolio grew double digits by 13.9 percent yoy. This makes the proportion of MSME loans to BRI's total loans continue to increase, to 84.74 percent.

He continued, BRI's ability to channel credit and financing was also supported by adequate liquidity and strong capital. This can be seen from the consolidated LDR which is maintained at the level of 87.09 percent with a Capital Adequacy Ratio (CAR) of 25.51 percent.

"Going forward, BRI is optimistic that it can make even better achievements compared to last year. I want to reiterate that BRI is the people's bank. BRI does business with the people and processes it the way the people do," concluded Sunarso.