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Jakarta Post

BRI’s profits up in H1 on back of fee-based income growth

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Wed, August 14, 2019   /   03:44 pm
BRI’s profits up in H1 on back of fee-based income growth A man makes a transaction at a Bank Rakyat Indonesia ATM in Jakarta. (tempo.co/Eko Siswono Toyudho )

State-owned lender Bank Rakyat Indonesia (BRI) has reported a more than 8 percent increase in profits during the first half of this year partly thanks to a sharp increase in its fee-based income.

Based on its audited financial statement, the publicly listed bank’s consolidated profit rose by 8.19 percent year-on-year (yoy) during the first six months of this year to Rp 16.16 trillion (US$1.14 billion).

The bank’s president director Suprajarto said on Wednesday that the increase in profit was mainly supported by high growth in its fee-based income, which rose 11.84 percent to Rp 12.11 trillion yoy in the January to June period, this year.

Meanwhile, the bank’s interest income only rose 4.37 percent yoy to Rp 39.92 trillion although its loan disbursement grew higher at 11.84 percent during the first half of this year.

Despite the growth in interest income, the bank’s net interest margin (NIM) slowed to 7.02 percent from 7.64 percent during the same period last year. The decline, Suprajarto said, was mainly caused by interest rate increases last year.

However, he expressed confidence about the prospects for NIM growth as Bank Indonesia (BI) is expected to further cut its interest rate this year. “The rate cuts would give a huge impact to our NIM, as well as our cost of fund in the future,” he said. (hen)