BRI Excels with Robust Capital and Return on Equity

Rhea-AI Summary

BRI maintains strong performance with robust capital and high ROE

Positive

• BRI's ROE for H1 2023 stands at 20.01%, a 2.5% YoY growth
• CAR grows 1.6% YoY to reach 26.76%
• Net profit grows 18.8% YoY to IDR 29.6 trillion

Negative

• NPL rate remains at 2.95%
• LDR at 87% needs further optimization

JAKARTA, Indonesia, Sept. 25, 2023 /PRNewswire/ -- In the first half of 2023, PT Bank Rakyat Indonesia (BRI) Persero Tbk. (IDX: BBRI) maintained its strong performance, boasting robust capital and a healthy return on equity (ROE) ratio. During the BRI Media Gathering at BRILian Stadium in South Jakarta on September 12th, 2023, BRI's President Director, Sunarso, emphasized the bank's vital role as a state-owned institution contributing significantly to Indonesia's economic and social values. BRI's ROE for the first half of 2023 stood at 20.01%, complemented by a solid capital adequacy ratio (CAR) of 26.76%.

Sunarso highlighted the need for a precise response to CAR, as it poses a challenge in achieving quality growth through the conversion of high capital into sustainable productivity. "When the capital is exceptionally strong, the usual compensation is a lower ROE due to the sheer size of the capital. However, in our case, both indicators are high. BRI rises to this challenge with its formidable capital base, signifying the bank's robust capital health. This strong capital is leveraged to generate revenue and an impressive return as proven by a 20.01% ROE."

The ROE has grown approximately 2.5% Year-on-Year (YoY) from 17.48%, while the CAR has seen a 1.6% YoY growth from 25.06%. Consequently, Sunarso confidently asserted that BRI is a bank with an exceptional global standing. With strong investor trust and a listed status, it's essential to underscore BRI's dedication to maintaining this performance." Our commitment lies in leveraging BRI's substantial capital effectively. Hence, it's imperative to demonstrate BRI's capability for growth," he remarked.

Furthermore, BRI has been able to maintain the quality of Non-Performing Loan (NPL) rate at 2.95%. Controlled and well-managed NPLs contribute to the bank's robust balance sheet, resulting in profitability. In the first six months of 2023, BRI's net profit reached IDR 29.6 trillion, representing an 18.8% YoY growth.

"Our liquidity is well-managed, with a Loan to Deposit Ratio (LDR) at 87%. Although our liquidity is secure, there is still room for optimization. The optimal LDR range is between 90% to 92% and therefore we still need to drive it further until it reaches the optimal level of around 90. There are no liquidity issues, and our focus lies on sustaining growth and preserving growth quality," said Sunarso.

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SOURCE PT Bank Rakyat Indonesia Tbk (BRI)