Strong Fundamentals Amid the Crisis, BRI Distributes Dividends of IDR 12.1 Trillion

Rhea-AI Summary

PT Bank Rakyat Indonesia (Persero) Tbk has announced a 65% dividend payment from its 2020 net profit of IDR 18.6 trillion, amounting to IDR 12.1 trillion. This dividend pay-out ratio reflects a 60% increase from 2019, emphasizing the company’s commitment to sustainable growth. BRI aims to maintain a capital adequacy ratio (CAR) above 18% while supporting business expansion. Despite challenges, BRI demonstrated solid financial performance in 2020, with total assets reaching IDR 1,511.8 trillion and a net profit of IDR 18.66 trillion.

Positive

• Dividend payment of IDR 12.1 trillion reflects a 65% payout ratio.
• Increased dividend pay-out ratio by 60% compared to the previous year.
• Total assets reported at IDR 1,511.8 trillion, growing 6.7% YoY.
• Net profit of IDR 18.66 trillion indicates strong performance amid challenges.

Negative

• None.

JAKARTA, Indonesia, April 1, 2021 /PRNewswire/ -- PT. Bank Rakyat Indonesia (Persero) Tbk (IDX: BBRI) announces that it has approved 65% dividend payments of the 2020 consolidated net profit of IDR 18.6 trillion, resulting in high-dividend paying of IDR 12.1 trillion. The remaining 35 percent, or IDR 6.5 trillion, will be used as retained earnings.

The approval has been made by its Board of Directors, during the 2021 Annual General Meeting of Shareholders (AGMS) at the BRI Headquarter, Jakarta, on Thursday (25/03).

The dividend pay-out ratio for the 2020 financial year has increased by 60 percent compared to the dividend pay-out ratio for the 2019 financial year, according to BRI's Deputy President Director, Catur Budi Harto. He stated that the dividend ratio was determined by considering projections of sustainable business growth to maintain a strong capital structure for business expansion and anticipate future risks that may occur in bank management.

"In accordance with the Basel III implementation stages, the Company aims to maintain a level of capital adequacy ratio (CAR) above 18%, therefore, we still have sufficient room to grow, both organically and inorganically," said Catur.

In addition to the distribution of dividends, the AGMS also approved:

• The Company's Annual Report, including the Supervisory Task Report carried out by the Board of Commissioners for the financial year ended 31 December 2020.
• The Annual Report on the Implementation of the Partnership and Community Development Program for the 2020 Fiscal Year.

Meanwhile, it also ratified some notable reports, including:

• The Company's Consolidated Financial Statements for the financial year ended 31 December 2020, which was audited by the Public Accounting Firm Purwantoro, Sungkoro & Surja.
• The Financial Report for the Partnership and Community Development Program for the financial year ending on 31 December 2020, which was audited by the Public Accounting Firm Purwantoro, Sungkoro & Surja.

The AGMS also granted authority to the Dwiwarna Series A Shareholder to determine the amount of bonus for the 2020 Financial Year for the Board of Commissioners' members. The AGMS authorizes the Board of Commissioners by first obtaining written approval from the Dwiwarna Series A Shareholder to decide the bonus amount that includes salaries / honoraria, allowances, facilities, and other incentives for the financial year 2021.

Concluding the meeting, the AGMS appointed Purwantono, Sungkoro & Surja (a member of the Firm of Ernst & Young Global Limited) as a Public Accounting Firm that will audit the Company's Consolidated Financial Statements and Financial Statements for the Partnership Program and Community Development Program for the 2021 Financial Year.

BRI's Performance Throughout 2020

The Company's consolidated financial performance has consistently grown above the national banking industry, which reflected in the Company's Financial Statements for the financial year ended 31 December 2020:

1. Total assets reached IDR1,511.8 trillion or grew by 6.7% year-on-year (yoy).
2. Credit growth reached 3.9% (yoy) or Rp938.4 trillion, with the composition of loans for the MSME segment reaching 82.1%. Meanwhile, BRI's Gross NPL was recorded at 2.99 percent. A maintained NPL is a form of the Company's success in good asset management during a crisis.
3. Third Party Funds managed to grow 9.8% in 2020 to Rp1,121.1 trillion with a CASA ratio of 59.7%.
4. The Company was able to book a Net Profit of IDR 18.66 trillion

Amid the crisis, the Company has further proven its consistency to save MSMEs by "Turning Difficulties into Resilience." The company has also implemented several strategies to succeed, some of which are saving MSMEs through the Credit restructuring program and "Business Follow Stimulus" to grow business and loan demand by becoming a partner of the Government in the PEN program.

The holding company continues to take strategic and innovative steps to create income diversification and integrated financial services, to further complement the financial needs of the wider Indonesian community. Throughout 2020, the company carried out several corporate actions, including:

• A strategic partnership with FWD Financial Services Pte. Ltd to accelerate BRI Life's business growth.
• Additional participation in BRI Finance with the aim of developing consumer financing.
• Merging BRI Syariah together with Bank Syariah Mandiri and BNI Syariah to become Bank Syariah Indonesia (BSI).

As a result, BRI Group currently consists of 7 (seven) Subsidiaries, namely (i) PT Bank Rakyat Indonesia Agroniaga Tbk; (ii) BRI Remittance Co. Ltd. Hong Kong; (iii) PT Asuransi BRI Life; (iv) PT BRI Multifinance Indonesia; (v) PT BRI Danareksa Sekuritas; (vi) PT BRI Ventura Investama; and (vii) PT BRI Asuransi Indonesia.

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SOURCE PT Bank Rakyat Indonesia Tbk (BRI)

FAQ

What is the dividend amount declared by BRI for 2020?

BRI declared a dividend amount of IDR 12.1 trillion for the 2020 financial year.

When will the dividend be paid to BRI shareholders?

The specific payment date for the dividend was not mentioned in the press release.

How does the 2020 dividend payout ratio compare to 2019?

The dividend payout ratio for 2020 increased by 60% compared to 2019.

What was BRI's net profit for the financial year ending 2020?

BRI reported a net profit of IDR 18.66 trillion for the financial year ending 2020.

What are BRI's total assets as reported for 2020?

BRI's total assets reached IDR 1,511.8 trillion, growing 6.7% year-on-year.