In carrying out its operations, BRI continues to improve efficiency and maintain productivity. The efficiency carried out is reflected in the BOPO ratio in November 2023, BRI’s BOPO is at the level of 64.67%, below the BOPO in the banking industry which is at the level of 76.80%. Achieving good performance was able to support BRI’s profit achievement in November 2023 of IDR 39 trillion or growth of 11.90% (CAGR 2019-2023) above industry growth of 11.55% (CAGR 2019-2023). BRI’s better net profit growth compared to the industry is supported by growth in interest income, interest expense efficiency and better growth in non-interest operating income compared to the industry. BRI’s profitability ratio is still better than the national banking industry. This can be seen from BRI’s better Net Interest Margin (NIM) ratio, namely 6.89%, while the Banking Industry NIM is at 4.83%. Apart from that, Return on Assets (ROA) reached 3.10% while in industry it reached 2.72%. The total loans distributed by BRI until November 2023 reached IDR 776.6 trillion. BRI’s credit growth in November 2023 increased by 8.25% (CAGR 2019-2023) which was above industrial credit growth of 5.97% (CAGR 2019-2023). BRI’s NPL in November 2023 was 3.24%, slightly above the industry’s 2.36%, in line with BRI’s strategy to accelerate the resolution of Covid-19 restructured loans by assessing credit risk in accordance with the debtor’s condition and dowgrading loans that cannot be restructuring can be carried out even though according to regulations it is possible to carry out restructuring and recognize the quality of the restructured loans in the current category. In November 2023, BRI’s Third Party Funds reached IDR 1,297 trillion with growth of 8.75% (CAGR 2019-2023), above the banking industry’s TPF growth of 8.41% (CAGR 2019-2023). BRI is selective in TPF growth with a growth focus on CASA in line with BRI’s strategy to strengthen retail banking capabilities in order to reduce the Cost of Funds. BRI’s liquidity is well maintained, as can be seen from BRI’s LDR for November 2023 at the level of 89.56%, higher than the Industrial LDR of 84.78%. Table of BRI Ratio Comparison to the Banking Industry (Bank Only, in %) Performance Ratio BRI (November 2023) Banking Industry (November 2023) Capital Adequacy Ratio (CAR) 26,13 27,86 Non Perfoming Loan (NPL) Gross 3,24 2,36 Net Interest Margin (NIM) 6,89 4,83 Return on Assets (ROA) 3,10 2,72 Operating Expenses and Operating Income (BOPO) 64,67 76,80 Loan to Deposits Ratio (LDR) 89,56 84,78 Source : BRI Financial Report November 2023; Indonesian Banking Statistics (BPS), Otoritas Jasa Keuangan (OJK), November 2023 Performance BRI Banking Industry Operational Expenses Other Than Interest 8,32% 9,47% Operational Profit 11,91% 11,33% Net profit 11,90% 11,55% Source : BRI Financial Report November 2023; Indonesian Banking Statistics (BPS), Otoritas Jasa Keuangan (OJK), November 2023 PT Bank Rakyat Indonesia (Persero) Tbk. 2023 Annual Report 197 Management Discussion and Analysis on Bank Performance
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