BRI Announces Solid Growth with a Profit of IDR 19.07 Trillion for Third Quarter 2021

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Oct 28, 2021, 09:20 ET

JAKARTA, Indonesia, Oct. 28, 2021 /PRNewswire/ -- PT Bank Rakyat Indonesia (Persero) Tbk today announced strong financial results for the Q3 2021, with profit growing around 34.74% y-o-y, reaching IDR 19.07 trillion. The growth was mainly a result of growth in financing, well-managed liabilities, and assets.

"BRI's success came from its strategy which emphasized on sustainability and reserve fund during the unstable economic situation," said BRI President Director Sunarso.

BRI Announces Solid Growth with a Profit of IDR 19.07 Trillion for Third Quarter 2021

In financing, BRI disbursed loans amounting to IDR 1,026.42 trillion up until September 2021, recording a growth of 9.74% y-o-y or 2.21% higher than the growth of national banking credit.

The main factor supporting this increase was MSME loans which grew by 12.5% y-o-y, reaching IDR 848.60 trillion in Q3 2021. This raised the bank's MSME loan ratio to 82.67% of its total loan portfolio.

"This significant increase is supported by our Ultra Micro holdings establishment with Pegadaian and PNM, in addition to the recovery of economic conditions due to the increasingly sloping pandemic," said Sunarso.

Among the loans disbursed, BRI's micro credit disbursement stood at IDR 464.66 trillion, while consumer loans stood at IDR 147.16 trillion, small and medium loans at IDR 236.77 trillion, and corporate loans at IDR 177.83 trillion.

At the same time, BRI maintained the quality of lending with a non-performing loans (NPL) ratio of around 3.28% in Q3 2021, with a reserve of NPL Coverage reached 252.94%.

In terms of liabilities, the third-party fund of BRI increased to IDR 1,135.31 trillion in Q3 2021, dominated by IDR 470,16 trillion of savings that grew by 7,12% y-o-y. The proportion of BRI's low-cost funds (CASA) surged to 59.6%, which indicated a growth compared to 59.02% in 2020.

The company's success in increasing the proportion of low-cost funds has resulted in a lower Cost of Fund (COF), from 3.45% last year to 2.14% in Q3 2021.

BRI's assets also recorded growth. As of the end of Q3, the assets reached IDR 1,619.77 trillion or grew 11.87 percent y-o-y.

BRI also noted the high resilience of MSME players during the pandemic, as 80% of MSMEs has consistently maintained their business amid the pandemic. With the pandemic now comes under control and businesses has restarted the activities, the MSME business is predicted to rise significantly, reaching 49,8% to the level of 132.0.

SOURCE PT Bank Rakyat Indonesia Tbk (BRI)