Bank Rakyat Indonesia (BBRI) investor relations material

Executive summary

• Net profit grew 13.8% year-on-year in Q1 2026, driven by resilient core earnings, disciplined cost management, and strong loan growth across micro, consumer, and corporate segments, despite macroeconomic uncertainties.

• Digital transformation and quality-driven growth strategies, including BRIvolution Reignite, improved funding mix, digital engagement, and operational efficiency.

• Asset quality showed early signs of stabilization, with NPL and SML ratios improving year-on-year and quarter-on-quarter, though micro NPLs rose for older vintages.

• Subsidiaries contributed significantly to consolidated net profit, led by Pegadaian's strong loan and gold ecosystem growth.

• Total assets reached Rp2,249.8 trillion as of March 31, 2026, with a strong capital position and CAR above regulatory minimum.

Financial highlights

• Loan growth reached 13.7% year-on-year, with total loans and financing at Rp1,562.5 trillion and total assets up 7.2%.

• Net profit increased 13.8% year-on-year, PPOP rose 7.7%, and net interest income grew 11.9%.

• CASA ratio improved to 68.1%, supporting lower funding costs and robust retail funding momentum.

• NIM stood at 7.9%, above guidance, driven by improved funding structure and stable loan yields.

• Cost-to-income ratio was 40.8%, with operating expenses up 11.1% year-on-year.

Outlook and guidance

• Full-year guidance maintained for loan growth, NIM, and credit cost; cautious stance on micro segment growth amid geopolitical risks.

• NIM expected to remain stable, with cost of funds potentially flat or slightly higher due to external pressures.

• Credit cost guidance for 2026 remains at 2.9%-3.2%, in line with Q1 2026 at 3.20%.

• Dividend payout expected to be at least on par with 2025, with capital reserves targeted around 20%-21%.