JAKARTA (TheInsiderStories) – The small and medium enterprises lender, PT Bank Rakyat Indonesia Tbk (IDX: BBRI) will distribute total dividends of Rp12 trillion (US$833.33 million) or 65 percent of last year’ net profit, the company announced today (03/25). During 2020, the state bank posted a net profit Rp18.65 trillion.
Vice president director of the financial firm, Catur Budi Harto, told the media virtually, the government as the major shareholders of the issuer to receive Rp6.88 trillion of the total dividends. As reported the net profit of the bank dropped by 45.70 percent to Rp18.66 trillion throughout 2020 from a year ago Rp34.37 trillion.
Until the end of December 2020, total outstanding loans recorded Rp938.37 trillion or grew 3.89 percent in annual basis. This year, said the CEO, Sunarso, Bank Rakyat Indonesia targeting the outstanding loans grow 6 – 7 percent.
Recently, PT Mirae Asset Sekuritas Indonesia rated that the performance of the bank will be better than expected. The state lender’ profit is predicted to reach Rp29.88 trillion in this year. The estimation based on its business acceleration that is faster than expected.
However, there are several risks faced by Bank Rakyat Indonesia such as the terminating the government’ stimulus package for the micro segment. Last year, despite deteriorating asset quality, the stimulus package helped the company’ loan growth to be positive by 2.4 percent in annual basis.
As reported, to help the liquidity of the state-owned banks, the government has placed funds Rp30 trillion into the lenders as part of an effort to implement a national economic recovery program based on the Law Number 2 of 2020 concerning on State Financial Policy and Financial System Stability for Handling the COVID-19 and finance ministerial decree Number 70 of 2020 regarding the placement of state money in commercial banks.
So far, the capital injection not gave a big impact to the banking industry and the businesses caused of the low demand amid the pandemic. The national bank has forced their business plans due to the poor condition.
Another risk, said the report is the decline in the success rate of restructured loans and a slower-than-expected recovery in consumer purchasing power.
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