Indonesia Central Bank Hikes Interest Rates, BRI Confident in Maintaining Liquidity Ratio
BRI recorded consolidated net income attributable to owners of Rp 15.98 trillion.
REPUBLIKA.CO.ID, JAKARTA -- Indonesian biggest bank, PT Bank Rakyat Indonesia (Persero) Tbk or BRI was able to collect Third Party Funds (DPK) amounting to Rp 1,416.21 trillion or grow 12.80 percent yoy until the end of March 2024 (ytd). Low-cost funds (CASA or Current Account Savings Account) dominate the deposit portfolio with 7.80 percent growth on a yearly basis.
CASA's growth is inseparable from BRI's ambition to transform its liabilities through strengthening its funding base, with a focus on stable and sustain low-cost funding from CASA. Deputy Managing Director of BRI Catur Budi Harto said, amid the tightening of national banking liquidity as a result of the era of high interest rates, BRI managed to keep the liquidity ratio at an adequate level.
The LDR (Loan to Deposit Ratio) BRI at the end of March 2024 was 83.28 percent. From the capital side, BRI was also able to maintain a strong capital ratio with a CAR (Capital Adequacy Ratio) of 23.97 percent.
“With these adequate liquidity and capital conditions, the company still has room to grow better,” said Catur in the QI/2024 Performance Presentation Press Conference online on Thursday (25/4/2024).
Amid the dynamics of global economic and geopolitical conditions fraught with challenges, BRI posted consolidated net income attributable to owners of Rp 15.98 trillion in first quarter of 2024. This figure grew by 2.69 percent on an annual basis (yoy) compared to the first quarter of 2023, for Rp 15,56 trillion.
Non-interest/fee based income (FBI) which grew 6.92 percent yoy was one of the driving factors for BRI's profit growth. One of the pillars of BRI's Fee Based Income performance is not apart from the contribution of BriMo superapps, where by the end of March 2024, BriMo had 33.5 million users or grew 30.3 percent (yoy).
“In 3 months, BriMo managed to process 969 million financial transactions with transaction volume reaching Rp 1.251 trillion or growing 41.8 percent yoy,” said Catur.
From the operational side, the company is able to continuously improve its operational efficiency. This is reflected by the ever-improving Cost to Income Ratio (CIR). The BRI CIR at the end of March 2024 recorded 37.4 percent percent or better than the CIR at the end of March 2023 which was 41.83 percent.
“The decline in CIR shows that BRI manages costs effectively and efficiently in generating revenue,” he added.
With positive performance in the first three months of 2024, BRI is optimistic that BRI can continue to grow sustainably by promoting the principles of prudential banking and good risk management amid the dynamics of global economic and geopolitical conditions that need to be monitored.
“BRI will focus more on responding to domestic challenges, especially through the empowerment of SMEs,” Catur said.
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