Jakarta. Net income at state-controlled lender Bank Rakyat Indonesia rose 5.5 percent in the first quarter of 2017 from the same period last year, thanks to strong loan growth and a surge in fee-based income.
BRI's consolidated net income increased to Rp 6.47 trillion ($485.8 million) in the January-March period from Rp 6.1 trillion in the corresponding period last year. This figure includes the lender's subsidiaries Bank BRI Syariah, BRI Agroniaga, an agriculture-focused microlender, and BRI Remittance, which focuses on cash transfers.
"The increase in net income was due to a surge in loan disbursements and fee-based income," BRI president director Suprajarto said in a statement received by the Jakarta Globe on Thursday (20/04).
The lender's total outstanding loans stood at Rp 653.1 trillion – 16.4 percent increase from the same period last year – largely attributed to loans by its small- and medium-enterprises business unit.
The lender's fee-based income surged 29.3 percent to Rp 2.5 trillion, largely attributed to e-banking services and deposits.
BRI's third-party funds – consisting of savings, current accounts and term deposits – surged 11 percent to Rp 701.2 trillion.
The bank saw its ratio of gross nonperforming loans against total outstanding loans narrow to 2.16 percent from 2.22 percent in the corresponding period a year earlier. NPLs are loans that have not been serviced for a least 90 days.