Research

Slowing Micro Deposit In BBRI, A Sign Of Weakness In Income?

market-avatar

Algo Research Team

Company | Nov 22, 2022 | Views: 118

The content provided here is for informational purpose only. It is not an advise or recommendation. Please do your own research.
content-img

Key Summary:

  • BBRI is the largest bank in Indonesia by asset and a leader in micro segment
  • BBRI micro ecosystem is the largest with +142mn deposit account (50% of population)
  • Deposit growth has continued to slow down (flat as per 9M22)

As the largest bank in Indonesia with more than IDR1,500trn in asset (yes you read that right, it is IDR1.5 quadrillion), BBRI is a household name especially within the micro/mass market segment. From its recent acquisitions of Pegadaian and PNM, it has a total of 34mn borrowers (BBRI: 14mn, Pegadaian: 6.8mn, PNM: 13.2mn) with a combined outstanding micro loan of IDR529trn. Additionally, BRI is also spearheading government's KUR (Kredit Usaha Rakyat) program which has been one of the main policies for growth especially to recover from Covid-19.


BBRI has seen an increase in the number of KUR borrowers from 5.7mn in 2019 to 10.7mn per Sep-22 and >3x growth in loan outstanding from IDR69trn to IDR234trn during the same period. This program is on top of BBRI's own products called Kupedes and Briguna. Unfortunately, the growth for these two products have slowed down -2.4%/-7.5% YoY per 9M22, respectively, as the bank focuses more on KUR program. This is also one of the concerns by investors which is why BBRI's share price has lagged its peers.

How was our research?

DISCLAIMER: Algo is an independent research platform and is not affiliated with any financial institution. We are not a licensed securities dealer, financial advisor, broker, or investment bank. The contents shared across our website, and social media platforms are intended for informational purposes only and reflect our views and opinions. It is not meant to be construed as financial advice and/or a recommendation to buy or sell an asset. Past performance does not guarantee future results. As a research platform, our contents are made to provide data-driven information and research-based articles, and should not be used as a basis for making any investment decisions. We strongly encourage you to conduct your own research and consult with a licensed financial advisor before making any investment decisions. Algo is not regulated by OJK (Otoritas Jasa Keuangan) and does not provide any investment services. We are not responsible for any financial decisions you make based on the information provided. All content is presented with the intent of informing only.