Fee-based income and other operational income could grow to IDR42.8 trillion or 16.6% year on year, in which the company posted fee-based income of IDR20.7 trillion or grew 10.3% from the same period last year. The achievement of fee-based income was in line with the growth in fee income for Trade Finance and International Banking services which grew 34.9% in line with the transformation in wholesale banking focusing on strengthening transaction banking and trade finance. On the other hand, BRI was able to maintain operational cost efficiency as seen in year-on-year growth of 3.3%. This efficiency was contributed by the growth in BRI bank only operational costs which were recorded to have only grown by 0.8% or reaching IDR57.0 trillion. This had an impact on the consolidated Cost to Income ratio (CIR) which fell to 41.89%. With this strong business growth and profitability, BRI was able to maintain financial ratios at a good level. The Bank’s Loan to Deposit Ratio (LDR) was at 84.22% on a consolidated basis and 84.73% on a bank only basis, indicating that the Company’s liquidity condition was adequate to support future business growth. BRI’s profitability ratio was recorded as positive and experienced an increase as shown by the Return on Asset (ROA) After Tax and Return on Equity (ROE) Balance Sheet ratios of 3.24% and 19.95% respectively. In terms of asset quality, BRI still had challenges in completing the loan portfolio that was restructured due to Covid-19. BRI’s Non-Performing Loan (NPL) ratio was recorded at 2.95% in December 2023, a slight increase from the same period last year. This was in line with the company’s strategy to accelerate the completion of loans restructured due to Covid-19. However, BRI still had sufficient reserves, this could be seen from the NPL Coverage ratio which was still maintained at 229.09%, and the Loan-Loss Reserve (LLR) ratio was still high at 6.75%, above the pre-pandemic period of 4-5%. However, Loan-at-Risk (LAR) continued its downward trend from 16.54% in 2022 to 12.47% in 2023, driven by a decrease in the portfolio restructured due to Covid-19 from IDR107.2 trillion at the end of 2022 to IDR54.5 trillion at the end of 2023. BRI was also able to maintain capital conditions at a strong level with CAR reaching 27.48% (consolidated) or 25.23% (bank only) above the minimum regulatory requirement of 17.5% (after considering the implementation of Basel 3), and the Company’s risk appetite was 19%. With this very adequate capital adequacy ratio, BRI was able to anticipate all the main risks that occured in bank management, including market risk, credit risk and operational risk, as well as supporting long-term future business growth. Achievement of Company Target In general, BRI on a bank only basis was able to achieve and even exceed the 2023 performance targets that had been set, with the following details: Table of Financial Target and Realization Comparison (bank only, in millions of Rupiah) Description December 2023 Target Realization Achievement Asset 1,784,070 1,835,249 102.87% Interest income 145,906 146,918 100.69% Loan Outstanding 1,148,723 1,146,083 99.77% Third-party funds 1,340,304 1,352,683 100.92% Net profit 52,209 53,153 101.81% Capital Adequacy Ratio (CAR) 24.72% 25.23% 102.04% Cost to Income Ratio (CIR) 40.84% 37.74% 107.05% The Company’s Non-Financial Performance BRI’s financial performance achievements were also supported by transformation in the aspects of Human Capital, Information Technology, Networks, as well as other programs that supported the company’s business sustainability. PT Bank Rakyat Indonesia (Persero) Tbk. 2023 Annual Report 51 Report of The Board of Directors and Board of Commissioners
RkJQdWJsaXNoZXIy NTM2MDQ5