BRI Signals Strength: Launches Buyback Amidst Stock Price Corrections

Rhea-AI Summary

PT. Bank Rakyat Indonesia (Persero) Tbk (IDX: BBRI) has initiated a share buyback program in response to stock price adjustments post Q1 2024 Financial Report. The buyback allows repurchasing up to IDR 1.5 trillion worth of BBRI shares within 18 months, aiming to signal a stronger company position. Despite short-term corrections, BRI focuses on long-term growth and benefits for shareholders, emphasizing prudent banking principles and MSME empowerment.

Positive

• BRI has achieved positive profit growth by the end of Q1 2024, with consolidated profit reaching IDR 15.98 trillion.

• Loans disbursed by BRI in March 2024 totaled IDR 1,308.65 trillion, showing a 10.89% year-on-year growth, with 83.25% allocated to the MSME segment.

• BRI's total assets increased by 9.11% year-on-year to reach IDR 1,989.07 trillion, reflecting the company's positive performance and sustainable growth outlook.

Negative

• None.

JAKARTA, Indonesia, May 6, 2024 /PRNewswire/ -- PT. Bank Rakyat Indonesia (Persero) Tbk (IDX: BBRI) announced the commencement of a share buyback process for BBRI shares. This strategic move comes in response to significant adjustments in BBRI's share price following the release of the Q1 2024 Financial Report. The buyback program, which was approved at the Annual General Meeting (AGM) on March 13, 2023, allows BRI to repurchase up to IDR 1.5 trillion worth of BBRI shares within 18 months from the date of the AGM approval.

BRI's President Director, Sunarso, emphasized that the buyback is intended to signal the company's stronger position compared to market perceptions. Meanwhile, BRI's Finance Director Viviana Dyah Ayu R.K. underscored that management is focused on ensuring the long-term growth and health of the company, even if it requires minor corrections in the short term. "For long-term shareholders, the enhancements and improvements we're making should yield greater benefits," she added.

In terms of BRI's performance, amidst the dynamic global economic and geopolitical challenges, BRI has managed to achieve positive profit growth. By the end of the first quarter of 2024, BRI's consolidated profit reached IDR 15.98 trillion, as revealed by Sunarso at the Q1 2024 Financial Performance Press Conference held in Jakarta on Thursday (4/25).

As of March 2024, BRI has successfully disbursed loans totaling IDR 1,308.65 trillion, representing a double-digit growth of 10.89% year-on-year. Of these loans, 83.25% amounting to IDR 1,089.41 trillion were allocated to the micro, small and medium enterprise (MSME) segment. "BRI believes that the continuous empowering of the MSME segment can contribute to the national economic resilience, considering that MSMEs account for about 97% of job creation and about 61% of Indonesia's GDP," Sunarso explained. 

The double-digit loan growth has contributed to the company's asset increase, with BRI's total assets reaching IDR 1,989.07 trillion, up 9.11% year-on-year. "With the positive performance in the first three months of 2024, BRI is optimistic about sustainable growth, prioritizing prudent banking principles and effective risk management amid the evolving global economic and geopolitical landscape. BRI will focus on addressing domestic challenges, particularly through MSME empowerment," Sunarso concluded.

For more information on BRI, please visit www.bri.co.id

View original content to download multimedia:https://www.prnewswire.com/news-releases/bri-signals-strength-launches-buyback-amidst-stock-price-corrections-302136719.html

SOURCE PT Bank Rakyat Indonesia Tbk (BRI)

FAQ

What is the purpose of PT. Bank Rakyat Indonesia's share buyback program?

PT. Bank Rakyat Indonesia initiated the buyback to signal a stronger company position amidst stock price corrections post Q1 2024 Financial Report.

How much worth of BBRI shares can BRI repurchase under the buyback program?

BRI can repurchase up to IDR 1.5 trillion worth of BBRI shares within 18 months from the date of AGM approval.

What percentage of loans disbursed by BRI in March 2024 were allocated to the MSME segment?

83.25% of the loans, totaling IDR 1,089.41 trillion, were allocated to the micro, small and medium enterprise (MSME) segment.

What was the year-on-year growth rate of loans disbursed by BRI in March 2024?

BRI achieved a double-digit loan growth rate of 10.89% year-on-year in March 2024.

How much did BRI's total assets increase year-on-year by the end of Q1 2024?

BRI's total assets increased by 9.11% year-on-year, reaching IDR 1,989.07 trillion.

What is PT. Bank Rakyat Indonesia's stock symbol?

The stock symbol for PT. Bank Rakyat Indonesia is BBRI.