Soaring 98.38 Percent, BRI Boss (BBRI) Reveals a Profit Trigger of Rp24.88 T in Semester I
bank Rakyat Indonesia (Persero) Tbk was able to record positive performance growth in the midst of world economic conditions that are still full of challenges. Until the end of the second
quarter of 2022, BRI on a consolidated basis (BRI Group) managed to record a net profit of Rp. 24.88 trillion or grew 98.38% year on year (yoy) with total assets increasing 6.37% yoy to Rp. 1,652, 84 trillion. BRI President Director Sunarso at the Press Conference on Financial Performance Presentation for the Second Quarter of 2022 on Wednesday, July 27, 2022, revealed that this achievement cannot be separated from BRI's ability to carry out the right strategic response. “The distribution of credit and the collection of public funds by BRI was able to grow positively. We can maintain the sustainability of this growth by focusing on the liquidity aspect, especially the growth of low-cost funds and also maintaining credit quality, especially the loans that we restructured due to the Covid-19 pandemic. BRI was also able to record better non-interest income growth supported by increased e-channel transactions. In addition, Digital Transformation through Business Process Reengineering is able to increase business productivity while maintaining operational efficiency.” said Sunarso. In terms of financing, BRI Group managed to disburse loans of Rp. 1,104.79 trillion or grew by 8.75% yoy. Loan distribution to all loan segments recorded positive growth, with the main pillars being the micro segment which grew 15.07%, the consumer segment grew 5.27%, the corporate segment grew 3.76% and the small & medium segment grew 2.71%.
"In particular, BRI's MSME loan portfolio grew by 9.81% from Rp. 837.82 trillion at the end of June 2021 to Rp. 920 trillion at the end of June 2022. This makes the proportion of MSME loans compared to BRI's total loans continues to climb, to 83.27%," he added. BRI's ability to channel credit can be balanced with good risk management. This is reflected in BRI's consolidated NPL ratio which is under control at the level of 3.26%. On the other hand, BRI prepares reserves as an anticipatory measure for potential credit deterioration. BRI's NPL Coverage was recorded at 266.26% at the end of the second quarter of 2022, which is an increase compared to the NPL coverage at the end of the second quarter of 2021 which was 252.59%.
BRI's strategy in maintaining NPL is selective growth, focusing on sectors that have strong potential and minimum exposure to the turmoil, such as agriculture, chemical industry, and food and beverage. "Other efforts made by BRI to maintain NPL are being selective in determining the feasibility of restructuring customers by considering the customer's business conditions and potential, as well as implementing a soft landing strategy by preparing sufficient reserves to anticipate the deterioration of the credit quality of restructuring customers," said Sunarso. BRI also managed to record a positive performance in terms of collecting Third Party Funds (DPK). Until the end of the second quarter of 2022, BRI's DPK grew 3.70% to Rp. 1,136.98 trillion. Low-cost funds (CASA) became the main driver of BRI's DPK growth, which year on year increased by 13.38%. In detail, Current Accounts grew 25.63% and Savings Accounts grew 8.32%. In general, currently the proportion of BRI's CASA is recorded at 65.12%, a significant increase compared to CASA in the same period last year which was 59.56%.
"The increase in CASA carried out by the company is in line with the transformation being carried out by BRI, where the strategic initiatives being carried out are focused on accelerating CASA growth," he said.
BRI's ability to disburse loans and financing is also supported by adequate liquidity and strong capital. This can be seen from the consolidated LDR of banks which was maintained at the level of 88.45% with a Capital Adequacy Ratio (CAR) of 25.06%.
