PR Newswire
04 Aug 2023, 23:13 GMT+10
JAKARTA, Indonesia, Aug. 5, 2023 /PRNewswire/ -- PT Bank Rakyat Indonesia (BRI) Persero Tbk. (IDX: BBRI) has shown outstanding performance, resulting in a positive uptrend in the company's stock price. On July 25, 2023, BBRI reached its all-time high at IDR 5,650 and closed at IDR 5,700 on July 28, 2023.
Agung Ramadoni, Head of Equity Investment at Berdikari Manajemen Investasi, emp
hasized that "BRI's buyback program is an indicator that the management believes in the company's future performance. Additionally, BRI's fundamental performance is a key factor for the banking sector to achieve profit."
In line with the 2023 Annual General Meeting (AGM) on March 13, 2023, BRI has allocated a buyback fund of up to IDR 1.5 trillion to be completed from March 14, 2023, to September 14, 2024, as part of the Employee and Director Stock Ownership Program (ESOP). Notably, BRI has been consistent in its buyback strategy for the ESOP program for two years, executing transactions amounting to IDR 2.99 trillion or 647.38 million shares from March 1, 2022, to January 26, 2023.
The program aims to engage BRI employees and directors, fostering motivation and a sense of ownership to enhance overall performance. BRI's President Director, Sunarso, stated that "Throughout this buyback, we have been very calculative, ensuring it will not affect our performance or future capital structure but rather strengthen it."
Agung further highlighted, "BRI's ability to improve efficiency is evident in the lower growth of operational costs compared to its revenues." BRI's net interest margin (NIM) rose to 7.8% in Q1 2023 from 7.7% in Q1 2022, and credit costs decreased by 198 basis points in March 2023 compared to the previous year. Additionally, the bank's return on average equity (ROAE) soared to over 20%.
Moreover, certain expenses saw a decline, with promotional expenses at only 8.1% YoY, totaling IDR 298.74 billion, and other expenses at 5.73% YoY, totaling IDR 7.39 trillion. Consequently, the operational cost-to-income ratio (BOPO) decreased from 64.26% in Q1 2022 to 60.7% in Q1 2023.
BRI's micro-credit dominant portfolio may sustain NIM in high-interest-rate conditions. Analysts project BBRI's stocks to potentially reach IDR 6,800 within a year, with an average value of IDR 5,975.
For more information about BRI, visit www.bri.co.id.
Get a daily dose of Malaysia Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Malaysia Sun.
More InformationHANOI, Vietnam: During Chinese President Xi Jinping's visit to Hanoi this week, China and Vietnam agreed to take the first steps toward...
JAKARTA, Indonesia: Indonesia is preparing a high-level visit to Washington with an ambitious offer to avert steep U.S. tariffs on...
BEIJING, China: As tensions with Washington deepen, Chinese President Xi Jinping is turning his focus to Southeast Asia, with a diplomatic...
Lahore [Pakistan], April 20 (ANI): Pakistan Cricket Board (PCB) chairman Mohsin Naqvi has confirmed Pakistan women's team won't travel...
Srinagar (Jammu and Kashmir) [India], April 20 (ANI): Reiterating India's stance on national security, Lieutenant Governor (LG) Manoj...
Bongaigaon (Assam) [India], April 19 (ANI): King of Bhutan Jigme Khesar Namgyal Wangchuk visited the IWT terminal at Jogighopa in Bongaigaon...
TOKYO, Japan: Facing the pressure of new U.S. tariffs, Honda is weighing a shift in its production strategy that could see more of...
BEIJING, China: China will raise battery safety standards for electric and plug-in hybrid vehicles, aiming to tackle fire and explosion...
HANOI, Vietnam: During Chinese President Xi Jinping's visit to Hanoi this week, China and Vietnam agreed to take the first steps toward...
FORT WORTH, Texas: American Airlines will begin offering free high-speed Wi-Fi to passengers in January 2026, joining a growing list...
LONDON, UK: Electric vehicle sales surged globally in March, with strong growth in China and Europe offsetting slower momentum in North...
New York City: New York: Goldman Sachs has signaled a prolonged downturn in oil prices, forecasting a steady decline through the end...