DEPOK (eNBe Indonesia) - PT Bank Rakyat Indonesia (BRI) Tbk (BBRI) booked a net profit of Rp19.07 trillion in the first nine months (9M) to September of 2021, grew 34.7% year on year (y/y), and grew 15% quarter on quarter (q/q).
Net interest income rose 27.9% y/y to Rp71.69 trillion, while provision expenses rose 56.6% to Rp30.37 trillion. For q/q, net interest income only rose 2.5%, and provision expenses declined 28.4%.
In the previous two quarters (Q1-Q2) of 2021, BBRI booked a net profit of Rp12.54 trillion, grew 22% y/y, but declined 13.5% q/q.
Net interest income rose 34.2% y/y to Rp46.35 trillion, while provision expenses jumped 134% to Rp21.53 trillion. For q/q, net interest income only rose 3.4%, and provision expenses increased 22.2%.
BRI’s CEO Sunarso said the COVID-19 handling in Indonesia had shown positive development, allowing the government to gradually relax the community activity restriction and thus drive the economic activities to increase.
The economy is recovering, as reflected in increasing exports, consumption, and investment activities.
“In line with the economic recovery, BRI was able to manage the second-wave COVID-19 impact and showed solid performance,” Sunarso said in a press statement.
“Top line growth is recovering, supported by loans especially in the micro segment, which has pushed micro loan composition to 40.8%. The recovering top line and cost efficiency have been the main drivers of solid profitability in the third quarter of 2021.”
BRI’s loan grew 9.7% y/y to Rp1,026.42 trillion in the first 9M of 2021. It grew 10.4% q/q. Assets rose 11.9% y/y to Rp1,619.77 trillion. Total deposits rose 0.3% y/y to Rp1,135.3 trillion.
The Bank’s capital adequacy ratio (CAR) stood at 24.54%, and the non-performing loan (NPL) ratio was 0.89%. Net interest margin (NIM) was 6.95%.
On Sept. 13, 2021, BRI completed its first initiative to establish the ultra micro holding company (UMi Holding), integrating BRI, Pegadaian, and PNM.
BRI’s next steps to becoming the champion of financial inclusion will be supported by innovative micro business transformation through business process strengthening, product rejuvenation, and new business model development.
The Bank will also implement the network and digital transformation to achieve more productive and efficient business in the future.***