Bank Rakyat Indonesia (BBRI) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 rose 1.1% year-on-year to IDR 29.9 trillion, supported by strong PPOP growth, recovery income, and robust capital levels.

• Loan growth reached 11.2% year-on-year, totaling IDR 1,336.8 trillion, with corporate and micro segments both contributing.

• Asset quality management remains a priority, with gross NPL ratio at 3.05% and NPL coverage at 211.6%.

• Capital position remains strong, with CAR at 23.23%-25.13% and Tier 1 CAR at 24.02%.

• Subsidiaries contributed significantly to consolidated net profit, with Pegadaian and PNM showing double-digit growth.

Financial highlights

• Total assets grew to IDR 1,977.37 trillion as of June 30, 2024, with total loans and financing at IDR 1,336.8 trillion, up 11.2% year-on-year.

• Net interest income increased 7% year-on-year, and non-interest income rose nearly 19%.

• Cost-to-income ratio improved to 41%, and CASA ratio was 63.17%.

• Return on assets was 3.01%-3.02%, and return on equity reached 19.22%-19.23%.

• Provision for impairment losses increased to IDR 21.35 trillion year-on-year.

Outlook and guidance

• FY24 loan growth guidance maintained at 10–12%, with H1 2024 actual at 11.2%.

• Net interest margin guidance for 2024 is 7.6–8.0%, with H1 2024 at 7.64%.

• Credit cost expected to remain below 3%, but could exceed if loan growth slows or restructuring targets are missed.

• COVID-restructured loans expected to fall to IDR 20-22 trillion by year-end, with full resolution targeted by mid-2025.

• Management expects modest economic and credit growth, focusing on selective and quality loan growth.