BBRI’s Market Cap Could Reach Rp1,000 Trillion in the Next Several Years

            The slick performance of PT Bank Rakyat Indonesia Tbk (BBRI) during the pandemic seems to have made the Ministry of State-Owned Enterprises (BUMN) optimistic that Indonesia’s largest bank, in terms of assets, will reach a market capitalization of Rp1,000 trillion in the next few years. Deputy Minister of State-Owned Enterprises, Kartika Wirjoatmodjo in the BRI Microfinance Outlook 2022 Webinar entitled “Boosting Economic Growth Through Ultra Micro Empowerment”, Thursday (10/2/2022) said “Currently this state-owned bank that focuses on the ultra-micro segment still has a market cap in the range of Rp670 trillion. However, it is believed that over time, the economic value of this company will continue to increase. We also believe that from an economic point of view, BRI is a very unique bank. Currently, BRI’s market cap reaches Rp. 670 trillion and we have a target for the next few years. in the future it could approach Rp 1,000 trillion,” said Kartika.

            Kartika’s optimism is not without foundation. During 2021, BRI managed to record a net profit of Rp32.21 trillion as of December 2021 from the previous year of Rp18.35 trillion, or an increase of 75.53%. The increase in the company’s net profit is in line with the increase in interest income to Rp143.52 trillion at the end of 2021 from Rp135.76 trillion in the previous year. Meanwhile, interest expense was recorded at Rp29.43 trillion from the previous year of Rp42.18 trillion. So, on a consolidated basis, the net interest income of the issuer bank codenamed BBRI is Rp114.09 trillion, an increase of 21.91% from the previous Rp93.58 trillion.

            Throughout 2021, the company disbursed loans on a consolidated basis of Rp994.41 trillion, up 5.36% from the same period in the previous year of Rp943.79 trillion. This increase is in line with the increase in the company’s total assets to Rp1,678 trillion as of the end of December 2021 from the previous year’s Rp1,610 trillion. In terms of the ratio of non-performing loans or gross non-performing loans (NPL), the company recorded an increase from the position of December 31, 2021, at the level of 2.98 percent to 3.08%. Meanwhile, net NPL slightly improved from 0.80% to 0.70%. Meanwhile, BBRI’s net interest margin (NIM) grew 6.89% in December 2021 from 6% in the previous year with a loan to deposit ratio (LDR) at the level of 83.67% in December 2021, not much different from the previous year at the level of 83.66%.

Feb 11, 2022, CNBC Indonesia