Bank Rakyat Indonesia Navigates Growth and Provisioning in 2026
Jakarta, Indonesia – February 26, 2026 – PT Bank Rakyat Indonesia (Persero) Tbk (BBRI.JK) reported a net profit of IDR 15.9 trillion in the fourth quarter of 2025, a 7% year-over-year increase and a 9% quarter-over-quarter increase. This brings the full-year 2025 net profit to IDR 56.7 trillion, a slight decrease of 5% year-over-year, aligning with expectations and achieving 101% of the 2025 consensus estimate.
The improved performance in the fourth quarter was primarily driven by an increase in Net Interest Income, despite a surge in provision expenses. BBRI has provided guidance for lower credit growth in 2026, following strong growth in 2025, and anticipates a decrease in Net Interest Margin (NIM) and Cost of Credit (CoC).
Performance Drivers in 4Q25
Pre-Provision Operating Profit (PPOP) grew by 13% year-over-year in the fourth quarter, accelerating from a slight decrease of 1% year-over-year during the first nine months of 2025. This acceleration was fueled by a 14% year-over-year increase in Net Interest Income (compared to a 3% year-over-year increase in the first nine months of 2025). This was attributed to a decrease in interest expense due to an increase in Current Account Savings Account (CASA) composition (+13% year-over-year as of December 2025) relative to Time Deposit (-3% year-over-year as of December 2025), and credit and financing growth of +12% year-over-year (compared to +6% year-over-year in the first nine months of 2025), including a 48% year-over-year growth in Pegadaian. These factors resulted in a NIM realization above management’s 2025 guidance. Management anticipates a decline in NIM in 2026 due to the impact of cuts in the BI Rate, consistent with guidance from other major Indonesian banks.
Credit growth reached +12% year-over-year as of December 2025, exceeding management’s 2025 guidance. This growth was driven by loans related to the Red and White Village Cooperative program. BBRI’s strategy to increase CASA contribution to total Third Party Funds appears successful, reaching 70% for the first time (compared to 67.3% in 2024).
Proactive Provisioning and Asset Quality
BBRI proactively increased provisioning in the fourth quarter, with the CoC reaching 3.6%, the highest quarterly CoC during 2025. This resulted in a full-year 2025 CoC of 3.3%, slightly higher than previously guided. Despite this, the Non-Performing Loan (NPL) position remained relatively stable at 3.07% as of December 2025 (compared to 3.08% in September 2025), and Special Mention (SML) decreased from 5% in September 2025 to 3.84% in December 2025.
For 2026, BBRI targets a normalization of provisioning, with CoC guidance in the range of 2.9–3.2% (compared to 3.3% in 2025), anticipating improvements in asset quality.
Strategic Outlook for 2026
BBRI will continue to focus on overhauling the micro segment in 2026, with expected growth in this segment at a low-single digit level. The consumer segment is expected to be a new growth driver, particularly in the mortgage (KPR) sector, with projected growth of +11–13% year-over-year.
Management plans to maintain a dividend payout ratio in the range of 85–90% for the financial year 2025 (compared to 86.5% in 2024).