PT Bank Rakyat Indonesia (BRI) has reported a significant uptick in its financial performance for the first three quarters of 2023. The bank recorded a 9.93% asset growth, a net profit increase of 12.47%, and a credit disbursement surge of 12.53%. This was largely driven by an 11.01% rise in micro, small, and medium enterprises (MSME) loans, which contributed to the expansion of the credit portfolio.
BRI's commitment to Environmental, Social, and Governance (ESG) principles has also paid dividends, with ESG-related loans growing by 11.89%. The bank's effective risk management strategies have led to a reduction in the Loan-to-Risk Ratio to 13.80%, while maintaining Non-Performing Loan Coverage at 228.65%.
Fee-based income saw an increase of 12.19%, propelled by transactions via BRImo Super Apps and AgenBRILink. The Third-Part Fund Collection experienced a year-on-year growth of 13.21%, primarily from Low-Cost Funds via Qlola's value chain optimization.
The initiatives "Desa BRIlian," "Klasterku Hidupku," and Ultra-Micro Holding have been crucial to BRI's strategy, integrating millions of customers and supporting villages and business clusters. The support from state-owned enterprise houses further reinforced the bank's performance.
Today, Sunarso representing BRI reported that the MSME loans surged from IDR 935.86 trillion to IDR 1,038.90 trillion, accounting for 83.06% of the total portfolio. The ESG-related loans reached IDR 750.91 trillion or 66.1% of the credit portfolio.
The bank's digital transformation initiatives have led to a decrease in the Operating Costs to Income ratio and the Cost-to-Income Ratio. BRI maintained a Loan-to-Deposit Ratio at 87.76% and a Capital Adequacy Ratio at 27.48%, demonstrating its strong financial health.
Sunarso underscored BRI's strategies of uplifting existing customers and expanding in the ultra-micro sector through various programs and the support of 54 state-owned enterprise houses. This has resulted in reduced operating costs, and improved efficiency, and has contributed significantly to the bank's robust performance in Q3 2023.
InvestingPro Insights
Drawing upon real-time data from InvestingPro, PT Bank Rakyat Indonesia (BRI) has shown a promising performance. The bank's market capitalization stands at a solid 47546.13M USD. The P/E ratio, a key indicator of investor sentiment, is 13.48, showing a favorable market outlook. The bank has also experienced a robust revenue growth of 15.86% in the last twelve months as of Q3 2023.
Turning to InvestingPro Tips, BRI's financial health is underscored by its consistently increasing earnings per share, a testament to its profitability. Moreover, it is a prominent player in the Banks industry, further solidifying its market position. However, it's worth noting that the bank has been quickly burning through cash, which could be a potential risk factor for investors.
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