Strong Fundamentals, BRI Optimistic of Sustainable Growth

Jakarta – PT Bank Rakyat Indonesia (Persero) Tbk (BRI) continues to record positive and sustainable performance to support Indonesia’s economic growth. BRI is also optimistic about spurring performance for the rest of this year.

A number of factors are driving this optimism, including the company’s performance fundamentals to better economic conditions.

Related to this, President Director of BRI Sunarso said that BRI projects credit growth will be in the range of 10-12 percent. “This is also our commitment to leverage very adequate capital,” Sunarso said in his official statement quoted on Thursday, September 26, 2023.

According to him, the domestic economic situation will be more dynamic supported by political conditions that are getting warmer ahead of the political year. Sunarso cited a study where one year before the election, economic growth is usually boosted by 0.25 percent.

“The existence of elections can also contribute to boosting economic growth. And this will encourage increased purchasing power and household consumption. And if it is related to credit growth, BRI also has research results, where credit growth or loan demand is influenced by household consumption or people’s purchasing power,” he explained.

For now, BRI has strong capitalization with a high Return on Equity (ROE). BRI’s ROE is at the level of 20.01 percent, then the Capital Adequacy Ratio (CAR) is 26.76 percent. According to him, CAR is something that needs to be responded appropriately because it is one of the challenges of realizing quality growth.

“Very strong capital, usually, the compensation is low return on equity because the capital is too large. But this is equally high. BRI answers this challenge. The capital is very strong, meaning that this bank is very healthy in terms of capital. But that strong capital is also leveraged into good revenue and return. This is shown by BRI’s return on equity level which reached 20.01 percent,” he said.

The ROE grew by around 2.5 percent on an annual basis / year on year (yoy) from 17.48 percent, while CAR grew 1.6 percent yoy from 25.06 percent. Sunarso continued, with a good ability to manage capital, the company’s management is optimistic that it can realize the growth target by the end of 2023.

BRI’s liquidity is also well managed. BRI’s Loan to Deposit Ratio is at the level of 87 percent. This liquidity is very adequate. Nevertheless, the company will optimize the loan to deposit ratio to a level of 90 – 92% percent.

“It still needs to be pushed again to grow credit, until LDR is at an optimal level. We must be able to continue to grow and maintain quality growth,” he concluded. (*)

Editor: Rezkiana Nisaputra