Bank Rakyat Indonesia (BBRI) Q1 2025 earnings summary

Executive summary

• New executive management team with deep experience in retail, micro, and digital banking appointed in 2025, focusing on productivity, funding, and core business transformation.

• Strategy centers on healthier growth, productivity, digitalization, and strengthening micro/ultra-micro segments.

• Consolidated total assets reached Rp2,098.2 trillion as of March 31, 2025, up from Rp1,993.0 trillion at year-end 2024.

• Macro outlook expects 2025 GDP growth at 4.9%, moderate inflation, and continued below pre-pandemic purchasing power for lower segments.

• BRI maintains its position as Indonesia’s leading micro and ultra-micro lender, with subsidiaries Pegadaian and PNM driving group lending and pawn services.

Financial highlights

• Total assets grew 5.5% year-on-year, supported by 5% loan growth and temporary liquidity rise for Ramadan.

• 1Q25 consolidated net profit declined 13.6% year-over-year and 9.7% sequentially to Rp13.8T, mainly due to higher credit costs and portfolio mix shift.

• Net interest margin increased by 16 bps to 7.68% quarter-to-quarter, at the upper end of guidance.

• CASA ratio at 65.8%, up 410bps year-on-year; time deposits rose 9% QoQ.

• Cost to income ratio rose to 40.7% from 37.4% year-on-year, mainly due to holiday pay timing.

Outlook and guidance

• 2025 guidance maintained: loan growth 7–9%, NIM 7.3–7.7%, cost of credit 3–3.2%, NPL below 3%, cost to income ratio 41–43%.

• No change in guidance despite U.S. tariff regime and global uncertainties.

• Management expects liquidity to remain tight in 2Q25, with improvement anticipated in 2H25.

• Loan growth for 2026 estimated to be 1% higher than 2025, but too early for precise forecast.