Indonesia's Big Banks Smash Profit Records Amid Surging Credit Growth

Major banks in Indonesia achieved their highest-ever net profit records in 2023. Bank Rakyat Indonesia (BRI) reported the largest profit at Rp 60.1 trillion, marking a 17.5 percent year-on-year increase, followed by Bank Mandiri with a profit of Rp 55.1 trillion, showing a robust growth of 33.7 percent. Bank Central Asia (BCA) recorded a profit of Rp 48.6 trillion, reflecting a 19.4 percent increase, and Bank Negara Indonesia (BNI) posted a profit of Rp 20.9 trillion, experiencing a 14.2 percent rise.

Positive growth in net interest income fueled this profit surge, driven by a more aggressive credit channeling strategy. The credit channeling of Bank Mandiri grew by 16.3 percent, BCA by 13.9 percent, and BRI by 11.2 percent, while BNI saw a 7.6 percent increase. In comparison, the previous year witnessed growth in credit channeling for Bank Mandiri at 14.48 percent, BCA at 11.7 percent, BRI at 9.2 percent, and BNI at 5.43 percent.

This year, Bank Mandiri targets a lower credit growth rate of around 13-15 percent, and BCA aims for 8-10 percent growth. Meanwhile, BRI anticipates stable growth in the 11-12 percent range, whereas BNI has set a more ambitious target with a growth rate of 9-11 percent. These targets indicate a banking stance aligned with regulatory authorities, displaying cautious optimism towards the economy.