Bank Rakyat Indonesia profit up $2.32b in 2018

Non-interest income surged 25%.

Bank Rakyat Indonesia (BRI) full-year profits rose 12% YoY to $2.32b (RP32.4t) in 2018, according to UOB Kay Hian.

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Net interest income rose 10.5% YoY to represent the first double-digit growth after single-digit expansion in the past six quarters. Interest income also hit a two-year high at 14% for the full-year period.

Loans picked up pace after rising to 14% YoY from 11% in the previous year. The micro segment posted a 15% loan growth to emerge as the largest loan contributor (34%) for the full year period.

Non-interest income also surged 25% in 2018 with fees contributing the lion’s share. In 2019, however, analyst Raphon Prima cautions that this could stabilise to 14% growth.

“In 2019, BBRI could post a higher net profit growth of 15% yoy on an 11% yoy net interest income growth and 14% yoy non-interest income growth,” added Prima.