Bank Rakyat Indonesia (BBRI) investor relations material

Executive summary

• Net profit grew 13.8% year-on-year in Q1 2026, driven by strong loan growth, resilient margins, disciplined cost management, and digital expansion, despite a volatile macro environment.

• Focused on quality-driven growth, disciplined underwriting, and strengthening funding mix through CASA and digital initiatives.

• Asset quality showed early signs of stabilization, especially in the micro segment, with improving NPL and SML ratios, though older vintages still face challenges.

• Transformation initiatives, including BRIvolution Reignite, and digital channel expansion are driving improvements in funding quality, asset quality, and customer engagement.

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

Financial highlights

• Total assets grew to Rp2,249.8 trillion, up 7.2% year-on-year, with total loans and financing reaching Rp1,562.5 trillion (+13.7% YoY).

• Net interest income increased 11.9% year-on-year to Rp40.16 trillion; non-interest income up 2.4% year-on-year, driven by fee and gold-related income.

• NIM reached 7.9%, above guidance, supported by a 65 bps decline in cost of funds.

• Operating expenses rose 11.1% year-on-year, with CIR at 40.8%, within target range.

• Gross NPL ratio was stable at 3.0% (consolidated), with NPL coverage at 179.5%.

Outlook and guidance

• Full-year guidance maintained for loan growth, NIM, and cost of credit; cautious stance on micro segment due to external risks.

• NIM expected to remain stable as lower loan yields are offset by improved funding costs; cost of credit guidance at 2.9%-3.2% for 2026.

• Loan growth to be driven by corporate, commercial, and consumer segments, with continued focus on asset quality.

• Management expects to maintain strong capital and liquidity positions, supporting business growth and risk management.