BRI Sustains Growth: Micro Credit Surges 11.41%, Records IDR 29.56 Trillion Profit
JAKARTA, Indonesia, Sept. 1, 2023 /PRNewswire/ -- Bank Rakyat Indonesia (IDX: BBRI) continues its impressive performance, concluding Q2 2023 with substantial achievements. BRI's strategic prowess is evident as its assets surge by 9.21% YoY, reaching IDR 1,805.15 trillion. Consequently, BRI attains a consolidated profit of IDR 29.56 trillion, reflecting an impressive 18.83% YoY growth.
This was conveyed by BRI's President Director, Sunarso, during the presentation of BRI's Financial Performance for Q2 2023 on Wednesday (30/8). Sunarso revealed that among the key factors supporting BRI's performance are the growth of microcredit and CASA which reached double digits, maintained asset quality, improved efficiency ratio, consistent growth in fee-based income proportion, and the increasingly solid performance of subsidiaries incorporated within the BRI Group.
Micro Segment Amplifies MSME Lending
In the domain of credit distribution, BRI extended loans and financing worth IDR 1,202.13 trillion by Q2 2023, with the micro segment growing exponentially at 11.41% YoY, reaching IDR 577.94 trillion. This amplifies the microcredit's share to 48.08% of the total credit, while MSME credit constitutes a remarkable 84.48% of the overall credit.
By Q2 2023, Ultra Micro Holding (Umi) has integrated 36M loan and 162M micro savings customers. BRI's credit ability aligns with its commitment to loan quality. "BRI's NPL management success is coupled with robust provisioning. By Q2 2023, BRI's NPL Coverage is at 248.54%," Sunarso stated.
Quality Lending Underpins Sustainable Growth
BRI's judicious credit management is evident in its Non-Performing Loan (NPL) ratio, which improved to 2.95% by Q2 2023, accompanied by enhanced provisioning, leading to a lowered Credit Cost of 2.26%. The growth trajectory is further sustained by effective CASA accumulation, growing by 10.13% YoY to IDR 815.42 trillion, and bolstered operational efficiency.
Sustained MSME Empowerment
BRI's robust financial performance accompanies comprehensive ESG initiatives. By Q2 2023, ESG-related BRI credit makes up 67.2% of the portfolio (IDR 732.3 trillion). MSME empowerment is key, with initiatives like Desa Brilian, My Cluster My Life, and State-Owned Enterprises Houses, shared Sunarso.
Desa BRILian engages 2,449 fostered villages nationwide, and My Cluster My Life empowers 17,418 business clusters. "BRI's sustainable banking fosters lasting growth, aligning with the vision to be Southeast Asia's Most Valuable Banking Group and a Champion of Financial Inclusion by 2025," Sunarso concluded.
For comprehensive information about BANK BRI, visit www.bri.co.id
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