The Extraordinary General Meeting of Bank Rakyat Indonesia has decided on Wednesday (18/10) to erase the position of deputy president director, dismiss Sunarso who previously had such position and the consumer director Randi Anto. (SP Photo / Ruht Semiono)
As BRI's Profits Grow, It Will Focus on Microloans
BY :TABITA DIELA
OCTOBER 26, 2017
Jakarta. Net profit of state-controlled lender Bank Rakyat Indonesia and its subsidiaries increased by 8.2 percent to Rp 20.5 trillion ($1.5 billion) in the first nine months of the year, triggered by the lender's efforts to boost microfinancing for small and medium enterprises.
"In the remaining three months, we are optimistic that we can achieve the company's targets set in the beginning of the year," BRI president director Suprajarto said in a statement on Thursday (26/10).
BRI's net interest income, or the income from lending money to customers after deducting the costs of paying its depositors, grew by 11.9 percent to Rp 55.1 trillion between January and September, compared with the same period in 2016.
Non-interest income, which consists of transaction fees, commissions and other gains, inched up by 11.8 percent to Rp 13.7 trillion in the same period.
Outstanding loans grew by 10 percent annually to Rp 694.2 trillion at the end of September. The lender noted that 75.8 percent of the amount was distributed to micro, small and medium enterprises.
The bank saw its ratio of gross nonperforming loans against total outstanding loans slightly up to 2.23 percent from 2.22 percent in the corresponding period a year earlier.
"Micro, small and medium enterprises, which are among the main drivers of the national economy, still have a limited access to bank financing," Suprajarto said.
"BRI will continue its efforts to increase the SME financing portfolio to 80 percent of the total credit, indirectly providing the 'multiplier effect' to the national economy," he said.
BRI's third-party funds, which consist of savings, current accounts and deposits, increased by 10.9 percent to Rp 770.6 trillion. Cheap funds, known as Current Account and Savings Account (CASA) deposits, accounted for 55.4 percent of the funds.