Bank Rakyat Indonesia (BBRI) Q2 2025 earnings summary

Executive summary

• Indonesia's economic growth faces challenges with pressured purchasing power, but inflation remains stable at 1.87% YoY in June 2025, within the central bank's target.

• Retail funding and digital channel initiatives drove strong CASA growth, with BRIMO users up 21.2% YoY and transaction value up 25.5% YoY.

• Subsidiaries Pegadaian and PNM contributed significantly to loan and profit growth, offsetting margin and NPL pressures.

• Asset quality challenges persist in the micro segment, but newer vintages show improving trends.

• Strategic transformation focuses on lending, funding, operations, government programs, human capital, digitalization, and risk management.

Financial highlights

• Total assets reached IDR 2,106.4 trillion as of June 30, 2025, up from IDR 1,993.0 trillion at December 31, 2024.

• Net profit for H1 2025 was IDR 26.53 trillion, down 11.2% YoY; PATMI at IDR 26.3 trillion, down 11.5% YoY.

• Total loans grew 6.0% YoY to IDR 1,416.6 trillion; deposits up 6.7% YoY to IDR 1,482.1 trillion, with CASA ratio at 65.5%.

• NIM was 7.76% in H1 2025, with an exit Q2 NIM of 7.84%.

• Pre-provision operating profit grew 2.2% YoY, but net profit declined due to one-off non-loan provision reversals and higher provisions.

Outlook and guidance

• Loan growth guidance for 2025 is 7–9%, but actual growth may end at the lower end or slightly below.

• NIM guidance is 7.3–7.7%, expected to be maintained.

• NPL ratio is guided at around 3% or slightly higher, with cost of credit expected at 3–3.2%, possibly ending at the higher end.

• Focus remains on retail funding, digital expansion, and asset quality improvement, especially in micro and small segments.

• Micro loan growth is expected to be flat in 2025, with potential for 2% growth in 2026 as transformation continues.