With MSMEs Recovering, BRI Succeeds with a Profit of Rp. 12.22 trillion for Q1 2022

Rhea-AI Summary

Bank BRI reported a Q1 2022 profit of Rp. 12.22 trillion, marking a 78.13% year-on-year increase. The bank's assets rose by 8.99% year-on-year to Rp. 1,650.28 trillion. Lending to micro, small, and medium enterprises (MSMEs) grew by 7.43% to Rp. 1,075.93 trillion, outpacing national banking growth of 6.65%. The non-performing loan (NPL) ratio improved to 3.09%, down from 3.30% a year earlier. BRI's NPL coverage increased to 276.0% from 231.17%. The bank's low-cost funds rose by 15.99%, enhancing its financial stability.

Positive

• Profit for Q1 2022 increased by 78.13% to Rp. 12.22 trillion.
• Assets grew by 8.99% year-on-year to Rp. 1,650.28 trillion.
• Lending to MSMEs rose 7.43% to Rp. 1,075.93 trillion, exceeding national growth.
• NPL ratio improved to 3.09%, down from 3.30% in the previous year.
• NPL coverage ratio increased to 276.0%, up from 231.17%.

Negative

• None.

JAKARTA, Indonesia, April 25, 2022 /PRNewswire/ -- Bank BRI (IDX: BBRI) successfully opens Q1 2022 with a profit of Rp. 12.22 trillion or 78.13% yoy. BRI's assets grew 8.99% year-on-year (yoy) to Rp. 1,650.28 trillion in March 2022 because of sustainable activities from MSMEs.

 "The recovery of MSMEs has pushed BRI's lending to grow by 7.43% yoy to Rp. 1,075.93 trillion, which is higher than the national banking credit distribution of 6.65% in Q1 2022," said Sunarso, President Director of BRI.

BRI's MSMEs loan portfolio grew by 9.24% yoy from Rp. 826.85 trillion in March 2021 to Rp. 903.29 trillion in March 2022. The micro segment lending grew 13.55%, the consumer segment by 4.56% and the small and medium segment by 3.96%.

BRI's successful credit channeling and good risk management were reflected in BRI's NPL ratio of 3.09% in March 2022 decreasing from 3.30% in March 2021.

The improved credit quality was also caused by the restructuring of credit of Rp. 144.27 trillion in Q1 2022, decreasing from Rp. 103.75 trillion in Q1 2021.

BRI provides sufficient reserves to anticipate future risks with NPL Coverage of 276.0%, increasing from the NPL Coverage of 231.17% in March 2021. 

Furthermore, BRI managed to record a 7.39% growth in collecting third-party funds in Q4 2022, with low-cost funds increasing by 15.99% yoy as the main driver of growth.

The proportion of BRI's low-cost funds is recorded at 63.63%, bringing a positive impact to the company's business from 58.91% in Q1 2021.

"As part of the Liability Structure Transformation, BRI continues to encourage low-cost funds for sustainable businesses, namely transaction-based products and services in the wholesale segment and strengthen BRImo's features and transactions," added Sunarso.

The consolidated LDR of banks which was recorded at 86.96%, with a CAR of 24.61%, further support BRI's ability to disburse loan.

BRI was able to record a positive efficiency ratio with BOPO of 69.34% in March 2022, lower than 78.41% in March 2021, by digital transformation, improving non-performing loans ratio, and increasing low-cost funds.

"With BRI's positive performance and a good risk management, BRI is optimistic that in 2022 BRI will be able to exceed its pre-pandemic performance," concluded Sunarso.

Information about Bank BRI can be accessed at www.bri.co.id. 

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SOURCE PT Bank Rakyat Indonesia Tbk (BRI)

FAQ

What was Bank BRI's profit for Q1 2022?

Bank BRI reported a profit of Rp. 12.22 trillion for Q1 2022, a 78.13% increase year-on-year.

How much did Bank BRI's assets grow in Q1 2022?

Bank BRI's assets grew by 8.99% year-on-year to Rp. 1,650.28 trillion.

What is the NPL ratio for Bank BRI as of March 2022?

As of March 2022, Bank BRI's NPL ratio is 3.09%, decreased from 3.30% in March 2021.

What growth did Bank BRI see in its MSME lending?

Bank BRI's MSME lending grew by 7.43% year-on-year, reaching Rp. 1,075.93 trillion.

What is the NPL coverage ratio for Bank BRI?

Bank BRI's NPL coverage ratio increased to 276.0% as of March 2022.