Bank Rakyat Indonesia (BBRI) Q4 2024 earnings summary

Executive summary

• Net profit for 2024 rose 0.4% year-on-year to Rp60.64 trillion, with stable profitability despite higher credit costs and subdued loan growth at 7% year-on-year, below guidance.

• Asset quality improved, with consolidated NPL ratio down 17bps year-on-year to 2.78%, led by corporate and small segments.

• CASA ratio increased to 67.3%, supporting a stable cost of funds at 3.7%.

• Subsidiaries (Pegadaian, PNM) contributed 14.7% to consolidated net profit and 10% of total loans, with strong loan growth in ultra micro segments.

• Digital initiatives (BRImo, BRILink) drove significant growth in user base and transaction value, supporting fee income and CASA expansion.

Financial highlights

• Net profit reached Rp60.64 trillion (+0.4% YoY); PPOP grew 9.6% YoY to Rp116.8 trillion.

• Total loans grew 7% YoY to Rp1,355 trillion; micro loan growth slowed to 2.7% YoY.

• NIM was 7.74% for 2024; cost-to-income ratio at 41.6% in line with guidance.

• Credit cost at 3.23% (above target), with net credit cost at 1.32% for FY24, supported by strong recoveries.

• CAR stood at 26.63%, among the highest in the sector.

Outlook and guidance

• 2025 guidance: loan growth 7%-9%, NIM 7.3%-7.7%, credit cost 3.0%-3.2%, NPL <3%, CIR 41%-43%.

• Cost of credit for 2025 expected to remain above historical average due to micro portfolio provisions, with front-loaded provisioning in Q1.

• NPL ratio expected to remain below 3% in 2025.

• Macro easing and government policies may support liquidity and savings growth in FY25.

• Cost-to-income ratio projected to rise to 41%-43% in 2025 due to investments in workforce and digitalization.