The profit was fueled by the distribution of credits which rose 14.1 percent to Rp843.6 trillion at the end of 2018, with the gross non-performing loan (NPL) ratio reaching 2.27 percent, BRI President Director Suprajarto said here on Wednesday.
The bank`s profitability was mostly contributed by the distribution of credits to micro small and medium enterprises (MSMEs) which reached Rp645.7 trillion, or 76.5 percent of the total credits channeled by the bank, he said.
The bank has set itself the target of increasing the amount of credits extended to MSMEs to 80 percent of the total credits in 2022.
With the gross NPL standing at 2.27 percent, last year BRI also managed to raise the ratio of reserves to NPLs (NPLs coverage) to 185.9 percent from 183 percent a year earlier.
Last year, the bank also channeled Rp80.2 trillion worth of smallholder business credits (KUR) to 3.9 million MSMEs across Indonesia.
The amount of third party funds placed in the bank last year rose 12.2 percent to Rp944.3 trillion year-on-year.
The other factor increasing the bank`s net profit was efficient business process reflected by the declining ratio of operating expenses to operating income by 0.7 percent to 70 percent at the end of 2018 from 70.7 percent a year earlier, he said.
On a funding side, the bank`s current account/saving account structure rose to 60.1 percent at the end of 2018 from 59 percent the year before.
Reporting by Indra Arief Pribadi, Suharto
Editing by Rahmad Nasution