PT Bank Rakyat Indonesia Persero Tbk : Full Year 2021 Financial Update Presentation

FY'2021 - Financial Update Presentation

PT BANK RAKYAT INDONESIA (PERSERO) Tbk.

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OUTLINE

CEO Messages …………………………………………………………………………………………………………………………………………	3
FY 2021 Highlights ….……………………………………………………………………………………………………………………………………	4
Macro Economy & Banking Industry …………………………………………………….…………………………..…….……..……….……....	8
Investment Proposition …………………………………………………………………………………………………………………………….…	13
The Ultra Micro & Micro Business …………………………..……………………………………………………………………………………..…	21
Loan Quality …………………………………………………..……………………………………………………………………………………..…	30
BRI FY 2021 Performance Highlight ………………………………………………………………………………………………………………….…	35

1. Consolidated Performance Highlight …………………….…………………………………………………………………………….. 37
2. Balance Sheet Highlight - Bank Only …………………………………………………………………………………….………………… 38

3. Profitability Highlight - Bank Only ………….…………………………………………………………………………………………...…	39
4. Key Ratios - Bank Only ……………….…………………………………………………………………………………………………….	40
Guidance & Takeaways ..……………………………………………………………………………………………………………….………….…	41
Supporting Material…………………………………………………………………………………………………………..……………………….
BRI FY 2021 Consolidated Performance …………………………………………………………………………………………….……………….	45
BRI FY 2021 Bank Only Performance ………………………………………………………………………………………………….……………….	49
Business Update ….…….……...……………………………………….………………………..………….……………………….……..…………	59
Digital Initiatives ….…….……...……………………………………….………………………..………….……………………….……..…………	63
ESG Initiatives ……………………………………………………………………….……..……............................................................................	71
Board of Management ..……………………………………………………………………………………………………………………………..	79
Others..………………………………………………………………………………………………………………………..…………………………	82

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CEO MESSAGE

Stepping Forward With Optimism, Paving The Way Towards Strong And Sustainable Growth

Despite the Covid-19 second wave in mid-2021, the economy of Indonesia continues to recover. Domestic demand is improving, supported by consumption and investment, while the surge in commodity prices accelerates export performance. The gradual relaxation on mobility restriction gives more traction to the business activity, as the banking industry return to a positive trend.

Consistent with the economic recovery, BRI has reinvigorated its resiliency and recorded a solid full-year performance for 2021. The loan quality remains manageable with adequate provisioning, while the ample liquidity provided room for COF efficiency. The strong NII and PPOP growth led to robust Net Profit recovery despite the higher than guidance OPEX due to provisions build-up to settle our pending, current, and impending obligations.

Throughout 2021, BRI continues its value incrementing through several corporate actions, namely the consolidation of Bank Syariah Indonesia, the BRI Life and FWD partnership, and the recent establishment of the Ultra Micro Holding . The holding establishment is the first step towards creating an integrated journey to unleash the ultra-micro ecosystems' huge potential, serving as the new sources of growth to fuel our formidable micro-business engine.

Sunarso, CEO

To answer future challenges, including serving the ultra-micro segment's unique characteristic. BRI continues to accelerate its digital transformation through digitizing business processes, building digital ecosystems, and creating new digital propositions. In addition, BRI also introduced the role of digital advisors to assist the customers along the continuum of their digital journey.

Albeit the uncertainties from the global condition and the emergence of the Omicron variant, we are stepping forward and welcoming 2022 as a year of optimism. We believe the continuation of Indonesia's economic recovery in 2022 will be mainly driven by MSME business, and BRI Group will play a significant role in supporting them. The role of KUR as the government's program to support the MSME will continue. BRI's KUR quota increased, reaching Rp260 T, and will become one of the drivers for loan growth in 2022. Even with changes in the scheme, the increase in KUR hence micro-loan composition, will support the overall profitability due to its relatively higher yield, not to mention its contribution to the significant growth of the customer base.

Concurrently, 2022 also as our final year to lay down the strong foundation that will determine our business's trajectory, including improving our subsidiaries' contribution and strengthening CASA growth.

BRI strives to deliver value beyond profit, substantiated through empowering the people and nurturing the planet. We have established a dedicated team for ESG as well and formalized an ESG Committee to strengthen our commitment to sustainability. With the structure in place, we will prepare our ESG roadmap towards more aggressive

targets aligned with national and global frameworks and initiatives.

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PERFORMANCE HIGHLIGHTS

Stepping Forward With Optimism, Paving The Way Towards Strong And Sustainable Growth

Optimism for 2022 - Indonesia economy growth supported by MSME recovery

BRI Financial Performance*: 1st wave vs 2nd wave - Manageable performance in the challenging period

(Rp Tn)

Beginning of pandemic 2nd wave of Covid-19

43.9

28.2

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Mar-21

Apr-21

May-21

Jun-21

Jul-21

Aug-21

Sep-21

Oct-21

Nov-21

Dec-21

* Monthly Micro Restructured Loan

On-track portfolio management

Rebalancing Micro Loan Product Growth

Solid profitability supported by yield improvement and COF efficiency

13.1%	12.7%	12.4%	11.0%	11.5%
7.9%	7.4%	7.0%		6.9%
	6.0%
3.3%	3.5%	3.6%	3.2%	2.1%
2017	2018	2019	2020	2021
	COF	Loan Yield		NIM

Ample liquidity to support sustain business growth

18.00%
16.00%
16.80%	16.51%	16.05%	16.23%	16.74%
14.00%
			14.59%

12.00%

13.01%

10.00% 11.80%

10.60%

8.00%

6.00%

Building cushion to mitigate

Covid-19 impact

278.1%

248.0% 254.8% 258.4% 259.7%

223.6% 200.3% 215.0%

166.6%

		3.0%	3.0%	2.9%	3.1%	3.3%	3.3%	3.1%
2.6%	2.8%

2019 1Q'20 1H'20 9M'20 2020 1Q'21 1H'21 9M'21 2021

NPL %

NPL Coverage

Investment Proposition

1. Sound Business Strategy, Focus on Flagship Segments
2. Hybrid Bank Business Model

1. Solid Foundation for Low-Cost Fund
2. Robust Capital Management to Ensure Optimum Return
3. Value beyond profit, commitment to ESG

Note: All numbers are bank only, unless stated as consolidated	4

SOLID BOTTOM LINE PERFORMANCE

Net Profit (bank only)

IDR 32.2 Tr

76% yoy

Net Profit (Consolidated)

Rp 30.8Tr

65% yoy

10% above consensus

FY21 Achievement vs Guidance (Bank Only)

	Guidance	FY'21
Loan Growth (YoY)	6% - 7%	7.2%	●
LDR	±85%	83.67%	●
NIM	±6.7%	6.89%	●
Fee Income Growth (YoY)	±8%	9.0% ●
OPEX Growth (YoY)	8% - 10%	18.1%	●
NPL	3.3% - 3.5%	3.08% ●

Credit Cost

3.5% - 3.7%

3.42% ●