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:

      2016     2017
Net Interest Income
  65,472   73,005
Net Income   26,196   28,997
Income before Tax   33,974   37,022
Operating Income   33,963   36,811
Total Assets 1,003,644 1,126,248
Total Liabilities  856,832  958,901
Third Party Funds  754,526  841,660
Non Performing Loan Ratio (gross)
   2.03%    2.10%
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: