Bank Rakyat Indonesia (BBRI) Q3 2025 earnings summary

Executive summary

• Indonesia's economy grew moderately in Q2 2025, with household consumption and MSME activity under pressure, but recovery prospects remain positive due to government stimulus and fiscal disbursement expected to boost demand into 2026.

• Liquidity conditions improved in Q3 2025, supported by accommodative monetary policy, stronger money supply, and stable rupiah, creating a favorable environment for banking sector growth.

• Net profit grew 15.5% quarter-on-quarter in 3Q25, driven by resilient core earnings and disciplined cost management.

• CASA ratio increased to 67.6% in 9M25, reflecting strong retail funding momentum and digital channel expansion.

• Subsidiaries, especially Pegadaian and PNM, contributed significantly to loan growth and profitability.

Financial highlights

• Total assets reached Rp2,123.4 trillion as of September 2025, up from Rp1,992.9 trillion at year-end 2024.

• Consolidated net profit for 9M25 was Rp41.2 trillion, down 9.1% year-on-year, but up 15.5% sequentially from 2Q25.

• Loans grew 6.3% year-on-year to Rp1,438.1 trillion, with deposits up 8.2% to Rp1,474.8 trillion, driven by strong 14.1% CASA growth.

• NIM stood at 7.75% in Q3 2025, down 10 bps quarter-on-quarter; cost-to-income ratio was 42.8%-44.6%.

• Net interest and sharia income for the period was Rp110.99 trillion, up from Rp107.86 trillion year-over-year.

Outlook and guidance

• Management expects gradual normalization of micro loan growth, targeting 9-10% in the long run, with 2026 growth likely modest as business process revamps and stricter underwriting continue.

• Cost of credit guidance for 2025 is 2.2%-3.3%, with expectations for 2026 in the 2.9%-3.2% range as legacy cooperative loans are resolved.

• Loan at risk (LAR) is expected to remain within the 10%-11% range through year-end 2025.

• Management anticipates continued improvement in credit quality for newer micro loan vintages.

• Capital adequacy ratio (CAR) targeted to gradually move toward 20% over the medium term, with potential for higher dividend payout or buybacks if growth opportunities are limited.