Indonesia’s Bank Raya posts $8.3m in pre-tax profits for H1 2023

Photo credit: Bank Raya

Indonesia’s Bank Raya, the digital bank from state-owned lender BRI, posted 126 billion rupiah (US$8.3 million) in pre-tax profits for the first half of 2023, its financial disclosures show. The figure represents a 17.8% year-on-year increase.

“We see a positive growth trend in our digital business, which accelerates our on-track business,” said Ida Bagus Ketut Subagia, Bank Raya CEO. “We also continue to strengthen our synergies with the BRI Group ecosystem.”

The development comes despite a 34.5% dip in the digibank’s net interest income, which stood at 233.8 billion rupiah (US$15.4 million) for H1 2023.

Bank Raya’s digital lending disbursements grew 23.7% year on year to 806.5 billion rupiah (US$53.2 million). The company attributed this uptick to stronger partnerships with other parts of the BRI ecosystem. These collaborations include Pinang Flexi, a loan product for corporate employees, as well as an SME productive lending offering.

The amount of deposits for its digital savings segment also increased 135.6% year on year to 729.4 billion rupiah (US$48.1 million).

Gross non-performing loans, an indicator of credit quality, improved to 4.35% compared to 5.96% in the previous year.

BRI, one of Indonesia’s largest lenders, launched Bank Raya in late 2021, which made it the first state-owned bank to set up a digital banking unit. The lender is also active in the tech scene through its VC arm BRI Ventures, which has invested in the likes of Bukalapak, Modalku, and Fazz.

See also: How BRI went from late adopter to frontrunner in Indonesia’s tech scene

A version of this article was originally published by Gilang Kharisma on Tech in Asia Indonesia.

Currency converted from Indonesian rupiah to US dollar: US$1 = 15,169.50 rupiah.