JAKARTA: PT Bank Rakyat Indonesia (Persero) Tbk (BRI) announced the commencement of a share buyback process for its shares, which comes in response to significant adjustments in BRI’s share price following the release of the Q1 2024 financial report.
The buyback programme that was approved at the Annual General Meeting (AGM) on 13 March 2023, allows BRI to repurchase up to Rp1.5 trillion (RM442.2 million) worth of BBRI shares within 18 months from the date of the AGM approval.
In response to significant adjustments in BBRI’s share price following the financial report, BRI has initiated a share buyback process to signal the company’s robust position compared to market perceptions.
BRI President Director, Sunarso, emphasised that the buyback is intended to signal the company’s stronger position compared to market perceptions.
Meanwhile, BRI Finance Director, Viviana Dyah Ayu RK underscored that management is focused on ensuring the long-term growth and health of the company, even if it requires minor corrections in the short term.
“For long-term shareholders, the enhancements and improvements we’re making should yield greater benefits,” she added.
In terms of BRI’s performance, amidst the dynamic global economic and geopolitical challenges, BRI has managed to achieve positive profit growth.
By the end of the first quarter of 2024, BRI’s consolidated profit reached Rp15.98 trillion (RM4.71 billion), as revealed by Sunarso at the Q1 2024 Financial Performance press conference.
As of March 2024, BRI has successfully disbursed loans totaling Rp1,308.65 trillion (RM386.04 billion), representing a double-digit growth of 10.89% year-on-year (YoY).
Of these loans, 83.25% amounting to Rp1,089.41 trillion (RM321.42 billion) were allocated to the micro, small and medium enterprise (MSME) segment.
“BRI believes that the continuous empowering of the MSME segment can contribute to the national economic resilience, considering that MSMEs account for about 97% of job creation and about 61% of Indonesia’s GDP,” Sunarso explained.
The double-digit loan growth has contributed to the company’s asset increase, with BRI’s total assets reaching Rp1,989.07 trillion (RM586.85 billion), up 9.11% YoY.
“With the positive performance in the first three months of 2024, BRI is optimistic about sustainable growth, prioritising prudent banking principles and effective risk management amid the evolving global economic and geopolitical landscape. BRI will focus on addressing domestic challenges, particularly through MSME empowerment,” Sunarso concluded.
