BRI is Implementing a Buyback of Its Shares until August 2023

News provided by

Sep 01, 2022, 03:19 ET

JAKARTA, Indonesia, Sept. 1, 2022 /PRNewswire/ -- PT Bank Rakyat Indonesia (Persero) Tbk. (IDX: BBRI) is implementing a buyback of its shares to a maximum total value of IDR 3 trillion from 1 March 2022 until 31 August 2023. BRI obtained the approval from its shareholders to carry out the buyback through the Annual General Meeting of Shareholders (AGM) on 1 March 2022, in accordance with the Disclosure of Information, where the shares will be used for the BRI employees.

Bank Rakyat Indonesia, Jakarta, Indonesia

BRI President Director Sunarso said that the company already considered the liquidity condition so as not to disrupt the company's finances. "The buyback of BRI shares is projected to increase the motivation of BRI's employees to be more optimal in achieving targets, thus increasing the company's performance."

"In addition, the buyback will be used for the need of treasury stock, which will ultimately be used as long-term performance incentives for high-performing employees. We see that BRI's share price is still undervalued, especially compared to the company's performance achievements. This affirms us to continue to do the buyback," added BRI Finance Director Viviana Dyah Ayu.

CSA Research Institute Senior Analyst, also the Secretary General of the Indonesian Securities Analysts Association (AAEI) Reza Priyambada is optimistic about the corporate action that illustrates BRI's management strategy for economic recovery and projected future performance in Indonesia. The buyback will support the company's growth as employees will be more motivated if they own shares of the company. "This will further support BRI's growth if we believe this economic recovery will continue, and the Indonesians are persistent with their work."

BRI's positive performance was reflected in a recorded net profit of IDR 24.88 trillion or grew 98.38% year-on-year (YoY) in Q1 2022. Meanwhile, total assets increased 6.37% YoY to IDR1,652.84 trillion. On a consolidated basis, lending reached IDR1,104.79 trillion or grew 8.75% YoY.

BRI's MSME loan portfolio grew 9.81% from IDR 837.82 trillion in June 2021 to IDR 920 trillion in June 2022, which increased the proportion of MSME loans to 83.27% of the total financing portfolio.

This achievement was accompanied by sound risk management, with a consolidated non-performing loan (NPL) ratio maintained at 3.26%. BRI's management also has prepared anticipatory measures for potential loan quality deterioration, with an NPL coverage of 266.26%.

For more information, visit www.bri.co.id.

SOURCE PT Bank Rakyat Indonesia Tbk (BRI)