KONTAN.CO.ID - JAKARTA. PT Bank Raya Indonesia Tbk (AGRO) continues to demonstrate a positive performance in the first quarter of 2024, despite high credit risks. The bank reported a net profit of IDR 9.16 billion in the first three months of this year, a year-on-year surge of 109.5%.

This positive performance was driven by a growth in net interest income, which rose by 8.9% year-on-year to IDR 134.8 billion. Additionally, there was a significant increase in other income from IDR 44 billion to IDR 170.8 billion. This rise was able to offset the rapid increase in provision costs, or asset impairment losses, from IDR 9.3 billion to IDR 147.4 billion.

Provision costs are expenses set aside to anticipate problematic loans. The non-performing loan (NPL) ratio of this bank stood at 4.28% as of March 2024. The total outstanding credit reached IDR 6.75 trillion, down 1.6% year-on-year.

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Although the total outstanding credit decreased, Bank Raya's digital credit increased. The President Director of Bank Raya, Ida Bagus Ketut Subagia, revealed that the outstanding digital credit has reached IDR 1.32 trillion.

For context, in the same period last year, digital credit was only recorded at IDR 756 billion. "On the other hand, Bank Raya's digital deposits were able to grow by 27.48% year-on-year to IDR 905.6 trillion," Subagia disclosed on Friday (26/4).

Subagia stated that Bank Raya is committed to maintaining sustainable growth. To achieve this, this subsidiary of Bank Rakyat Indonesia will continue to strengthen its synergy with the BRI Group ecosystem, one of which is through the Pinang Dana Talangan product.

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In the first quarter, Bank Raya launched various products targeting the micro and small segments, such as the QRIS Merchant released in March 2024. The number of QRIS Merchant users has exceeded 1,000.

In addition to transforming the business model, Subagia said, there is an increasingly efficient operational business, with a digital-based business process. This is reflected in the improved cost-to-income ratio (CIR), which significantly improved to 46.45% from 84.3% in the first quarter of 2023.

The cheap funds ratio also continues to improve to 28.28% "This is the result of the development of saving products that target communities and ecosystems as end users," Subagia explained.

Editor: Syamsul Azhar