13 February 2020 (closed)
USD/IDR (13,707) +28.00 +0.20%
EUR/IDR (14,853) -19.58 -0.13%
Jakarta Composite Index (5,871.95) -41.13 -0.70%
Bank Rakyat Indonesia, one of the leading commercial banks in Indonesia and among the largest listed companies in terms of market capitalization on the Indonesia Stock Exchange, posted solid corporate earnings over full-year 2017. The financial institution's net profit and net interest income both climbed by double-digit figures.
Its net profit was recorded at IDR 29.04 trillion (approx. USD $2.2 billion) in full-year 2017, up 10.7 percent (y/y) from IDR 26.23 trillion one year earlier. Meanwhile, Bank Rakyat Indonesia (BRI)'s net interest income reached IDR 73.0 trillion (approx. USD $5.5 billion), up 11.5 percent (y/y).
Haru Koesmahargyo, Finance Director of BRI, said the double-digit growth over 2017 was particularly supported by strong credit growth of 11.4 percent (y/y) to IDR 739.3 trillion (approx. USD $55.6 billion). Meanwhile, the bank's fee based income grew 13.2 percent (y/y) to IDR 10.4 trillion (approx. USD $782 million).
Most of BRI's credit - around 75 percent - was disbursed to the country's micro, small and medium-sized companies (in Indonesian: Usaha Mikro, Kecil dan Menengah, UMKM), hence this segment remained the key engine of BRI's corporate earnings. Micro credit disbursement reached IDR 239.5 trillion, which includes IDR 69.4 trillion of micro business credit (in Indonesian: Kredit Usaha Rakyat, or KUR).
In terms of credit quality, there was a slight increase in BRI's non-performing loans (gross) from 2.13 percent in 2016 to 2.23 percent in 2017.
Although we are still awaiting the latest audited data from Bank Mandiri, BRI is likely to have remained the biggest bank in Indonesia in terms of assets.
Regarding 2018, BRI targets profit growth in the range of 9 - 11 percent (y/y), similar to profit growth realization in 2017. BRI plans to increase its focus on the micro, small and medium-sized companies segment. Therefore, it targets to disburse 80 percent of the bank's total credit in this segment in 2018.
Bank Rakyat Indonesia's Financial Highlights:
|Net Interest Income
|Income before Tax||33,974||37,022|
|Third Party Funds||754,526||841,660|
|Non Performing Loan Ratio (gross)
|Capital Adequacy Ratio (CAR)||22.91%||22.96%|
|Net Interest Margin (NIM)||7.87%||7.78%|
|Loan to Deposit Ratio (LDR)||87.93%||87.84%|
|Earnings per Share¹²||214,30||237,22|
|Cash Dividend per Share¹²||428.61|
in billion IDR, unless otherwise indicated
¹ in IDR rupiah
² adjusted to stock split
Source: Bank Rakyat Indonesia Financial Statement Full Year 2017
BRI allotted IDR 9 trillion for growth in 2018. Besides inorganic growth (through acquisitions), the company will also transfer part of the funds to its subsidiaries. Bank Rakyat Indonesia Agro, a subsidiary of BRI, is planning to acquire two small banks in order to raise its assets.
BRI is also determined to issue bonds worth IDR 12 - 15 trillion (approx. USD $975 million) in a three-year program commencing in the second half of 2018. A total of IDR 5 trillion (of this new program) is planned to be sold in 2018. Additionally, BRI plans to issue IDR 5 trillion in bonds in 2018 from an existing bond program.
Meanwhile, another subsidiary of BRI - Bank Rakyat Indonesia Syariah (which is active in the Islamic banking sector) - is set to conduct an initial public offering (IPO) on the Indonesia Stock Exchange somewhere in 2018. The shariah unit will offer a 30 percent stake to the public through the corporate move.
On Thursday (25/01) shares of Bank Rakyat Indonesia, listed on the Indonesia Stock Exchange, were down 0.78 percent to IDR 3,800 a piece by 15:35 pm local Jakarta time. So far this year, the company's shares have climbed 4 percent.
Stock Quote Bank Rakyat Indonesia - BBRI: