JAKARTA, Indonesia, May 3, 2023 /PRNewswire/ — Despite the global financial turbulence, PT. Bank Rakyat Indonesia (Persero) Tbk. (IDX: BBRI) recorded a profit of IDR 15.56 trillion, reflecting a 27.37% Year-on-Year (YoY) growth in Q1 2023, along with a surge in assets by 10.46% YoY, reaching IDR 1.822.97 trillion.
"The micro segment with a growth of 11.18% was the main contributor to BRI’s performance. This resulted in total credit and financing of IDR 1,180.12 trillion. MSMEs accounted for 83.86% or IDR 989.64 trillion of BRI’s total credit," said Sunarso, BRI’s President Director.
The ability of BRI to provide loans is accompanied by prudent risk management as proven by the bank’s Non-Performing Loan (NPL) coverage at 282.49% in Q1 2023. Furthermore, its third-party funds grew by 11.45% YoY, driven mainly by a 13.01% YoY increase in current account savings account (CASA), resulting in an increased CASA ratio of 64.53%.
Another contributor to BRI’s performance is its fee-based income, which grew by 11.45% YoY, reaching IDR 5.08 trillion. This is in line with the increasing number of BRILink agents (over 650,000 with a total transaction value of IDR 325.65 trillion) and BRImo financial transactions (IDR 884 trillion with over 26.3 million users by the end of Q1 2023).
Catering to the growing demand for digital, BRI has optimized transactions through AgenBRILink, Super Apps BRImo, and BRI API. An integrated digital payment, Qlola, was also developed to provide cash management, trade finance, supply chain management, foreign exchange, investment, and financial dashboard services.
The drive towards efficiency is evident in BRI’s improved Operating Expenses and Income, Cost Efficiency Ratio (CER), and Cost-to-Income Ratio (CIR). Operating Expenses and Income improved from 68.26% to 64.47%, CER improved from 45.68% to 42.69%, and CIR decreased from 42.23% to 41.83%.
BRI’s business growth is complemented by good financial ratios, including Loan-to-Deposit Ratio (LDR) of 84.94%, Capital Adequacy Ratio (CAR) of 24.98%, and risk appetite of 19%.
Sunarso projected a positive outlook for the banking industry in 2023, with BRI’s loan growth projected to be 10-12%. The projection is supported by BRI’s use of the Markov Switching Dynamic Model, indicating that the global economic slowdown in 2023 will only cause a 2% recession in Indonesia.
More information can be accessed at www.bri.co.id.