Bank Rakyat Indonesia (BBRI IJ) (Buy) - Apr-26 results

Apr-26 results

BBRI has released its bank-only Apr-26 results, reporting headline profit of IDR4.0tn (-2% m-m; +3% y-y), bringing YTD Apr-26 earnings to IDR15.9tn (+6% y-y) — equivalent to ~27% of our FY26F projection and broadly in line with our current consolidated earnings forecast. Nevertheless, the primary area of concern remains the NIM trajectory. April NIM declined meaningfully from ~6.2% in 1Q26 to 5.8%, marking a multi-quarter low and suggesting potential downside risk to our FY26F NIM assumption should the trend continue. In addition, BI’s recent rate hike could reintroduce funding cost pressures going forward. Given BBRI’s sizeable floating-rate micro loan portfolio, asset yields may remain vulnerable to near-term compression, particularly if funding costs reprice upward faster than loan yields adjust.

On asset quality, YTD Apr-26’s CoC of 3.2% remains below YTD Apr-25’s 3.5%, suggesting some stabilization in credit costs. However, the monthly CoC uptick to 3.3% in April — despite strong loan growth — indicates that stress within the micro segment, which became evident in 2025, has yet to fully normalize. Meanwhile, government policy continues to represent a key swing factor. Ongoing KUR (subsidized micro-credit) support and rural lending targets should underpin volume growth, although the structurally lower pricing of KUR loans remains an inherent drag on margins.

Net interest income arrived at IDR9.9tn (-4% m-m; +9% y-y), bringing YTD Apr-26 NII to IDR39.4tn (+7 y-y) – accounting for ~24% of our FY26 forecast. The y-y NII growth, however, masks a notable m-m step-down, with April NIM declining to 5.8% from 6.2% in Mar-26 – the sharpest monthly compression observed so far in 2026 – driven by a combination of asset yield erosion following BI's rate cut cycle and a deposit mix shift that has raised the effective cost of funds. Headline PPOP reached IDR8.9tn (+4% m-m; +8% y-y), bringing YTD Apr-26 PPOP to IDR34.6tn (+4% y-y) – accounting for ~27% of our FY26 forecast – supported by continued cost discipline (monthly cost-to-income ratio at 38% in April, flat y-y).

On the balance sheet, the bank booked loan and deposit growth of +11% and +7% y-y, respectively, which brought LDR to 92.0% (+340bp y-y). Loan growth was driven by government-related programs (Agrinas, unlisted) and non-bank SOEs. However, we expect loan growth to continue normalizing in subsequent months towards FY26 growth of 7-9% (according to management guidance). Deposits growth came from current accounts (CA) and savings accounts (SA), which rose +23% and +13% y-y, respectively. These, in our opinion, mostly came from the government and Danantara placements.

Valuation and risks

We derive our TP of IDR4,500 using DuPont analysis, with key parameters as follows: a risk-free rate of 6.5%, an equity risk premium of 7.8%, beta of 0.9x and a CAR-adjusted ROAE of 18.0%. Our TP implies 2.1x 2026F P/B (vs 1.8x currently) and 11.6x 2026F P/E (vs 10.1x currently). Risks are worsening macroeconomic trends, unfavorable regulatory changes, and tighter liquidity competition, which could increase funding costs, worsening credit quality which would raise credit costs, and higher opex. Changes in management could affect the bank’ s write-off policies and thus, credit costs. This would ultimately affect the bank’s near-term earnings, in our view.

Fig. 2: BBRI monthly results

BBRI Bank-only IDR bn	Apr-25	Dec-25	Mar-26	Apr-26	M-M	Y-Y	YTD-26	YTD-25	Y-Y	% FY26F	FY26F
Interest income	13,535	13,767	13,993	13,624	-3%	1%	53,503	53,454	0%	24%	219,424
Interest expenses	4,445	3,592	3,669	3,711	1%	-17%	14,123	16,820	-16%	24%	57,812
Net interest income	9,089	10,175	10,324	9,913	-4%	9%	39,380	36,634	7%	24%	161,613
PPOP	8,224	9,347	8,558	8,892	4%	8%	34,600	33,371	4%	27%	126,134
Provision exp	3,266	3,237	3,299	3,799	15%	16%	14,636	14,353	2%	29%	50,647
Net profit	3,919	4,958	4,125	4,036	-2%	3%	15,897	15,009	6%	27%	58,694
Comprehensive profit	5,037	5,781	3,676	4,216	15%	-16%	14,747	16,339	-10%
MoM loan growth	1.1%	2.8%	0.9%	1.4%
YoY loan growth	4.2%	10.4%	10.7%	11.0%
YTD loan growth	2.0%	10.4%	1.1%	13.2%
MoM deposit growth	-1.1%	0.0%	2.7%	-3.4%
YoY deposit growth	0.5%	7.3%	9.4%	6.8%
YTD deposit growth	3.0%	7.3%	6.1%	10.0%
LDR	88.5%	91.9%	87.6%	91.9%
NIM (annualised)	6.1%	6.7%	6.2%	5.8%			6.2%	6.3%
LLR	5.9%	5.4%	5.5%	5.4%			5.7%	6.5%
CoC (annualised)	3.2%	2.9%	2.9%	3.3%			3.2%	3.5%
Risk-adj NIM %	3.9%	4.6%	4.2%	3.6%			3.9%	3.8%
CASA ratio	65%	71%	68%	71%
CIR (annualised)	38%	44%	42%	38%
B/S ROAE (annualised)	16.7%	19.4%	16.1%	16.3%
B/S ROAA (annualised)	2.5%	3.1%	2.5%	2.4%
Asset yield (annualised)	9.1%	9.1%	8.4%	8.0%
COF (annualised)	3.5%	2.8%	2.7%	2.7%
Leverage ratio x	6.6	6.4	6.5	7.3
Cash ratio %	1.3%	1.7%	1.6%	1.3%
LDR %	88.6	92.0	87.7	92.0
Loan-to-CASA %	136.6%	129.7%	128.4%	129.9%
Monthly personnel exp	1,563	1,533	2,902	2,098	-28%	34%	9,977	9,178	9%
As % of assets	1.0	1.0	1.7	1.2
3 MMA personnel as % of assets	1.5	1.1	1.6	1.5

Source: Company data, Verdhana research

Fig. 3: BBRI monthly results

BBRI Earnings asset IDRbn	Apr-25	Dec-25	Mar-26	Apr-26	M-M	Y-Y	YTD-26	YTD-25
Total	1,759,245	1,822,233	2,125,987	1,966,259	-8%	12%	8%	1%
Placements w BI	108,148	39,577	72,264	104,998	45%	-3%	165%	-12%
Placements with other banks	39,998	53,076	73,253	78,552	7%	96%	48%	-14%
Marketable Securities	322,324	357,542	375,334	292,261	-22%	-9%	-18%	4%
Repo Securities	42,800	29,340	241,542	111,093	-54%	160%	279%	67%
Reverse Repo Securities	5,649	24	5,723	2,999	-48%	-47%	12166%	-66%
Loans and receivables	1,240,325	1,342,674	1,357,871	1,376,355	1%	11%	3%	2%
Breakdown	Apr-25	Dec-25	Mar-26	Apr-26
Total	100.0	100.0	100.0	100.0
Placements w BI	6.1	2.2	3.4	5.3
Placements with other banks	2.3	2.9	3.4	4.0
Marketable Securities	18.3	19.6	17.7	14.9
c. Held to maturity	-	-	-	-
d. Loans and receivables	-	-	-	-
Repo Securities	2.4	1.6	11.4	5.6
Reverse Repo Securities	0.3	0.0	0.3	0.2
Loans and receivables	70.5	73.7	63.9	70.0
BBRI Funding IDRbn	Apr-25	Dec-25	Mar-26	Apr-26	M-M	Y-Y	YTD-26	YTD-25
Total Assets	1,759,245	1,822,233	2,125,987	1,966,259	-8%	12%	8%	1%
Deposits	1,400,495	1,460,089	1,549,000	1,496,301	-3%	7%	2%	3%
Current accounts	371,401	450,129	454,466	455,487	0%	23%	1%	-1%
Savings accounts	536,615	584,893	603,078	603,722	0%	13%	3%	-1%
Time deposits	492,478	425,066	491,456	437,091	-11%	-11%	3%	12%
CASA	908,016	1,035,022	1,057,544	1,059,210	0%	17%	2%	-1%
Loans/Securities	107,148	72,128	79,605	167,061	110%	56%	132%	17%
Equities	284,124	299,496	310,407	283,132	-9%	0%	-5%	-5%

Source: Company data, Verdhana research

INVESTMENT RATINGS
A rating of ‘Buy’, indicates that the analyst expects the stock to outperform the Benchmark over the next 12 months. A rating of ‘Neutral’, indicates that the analyst expects the stock to perform in line with the Benchmark over the next 12 months. A rating of ‘Reduce’, indicates that the analyst expects the stock to underperform the Benchmark over the next 12 months. A rating of ‘Suspended’, indicates that the rating, target price, and estimates have been suspended temporarily to comply with applicable regulations and/or firm policies. Securities and/or companies that are labelled as ‘Not Rated’ or ‘No Rating’ are not in regular research coverage. Benchmark is Indonesia Composite Index (‘IDX Composite’). A ‘Target Price’, if discussed, indicates the analyst’s forecast for the share price with a 12-month time horizon, reflecting in part of the analyst’s estimates for the company’s earnings, and may be impeded by general market and macroeconomic trends, and by other risks related to the company or the market in general.

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Rating Table

Rating Remains	Buy
Target price Remains	IDR 4,500
Closing price 25 May 2026	IDR 3,170

Research Analysts

Erwin Wijaya (erwin.wijaya@verdhana.id)

Tags: BANKS, Bank Rakyat Indonesia, BBRI, BBRI JK, BBRI IJ, Erwin Wijaya

Bank Rakyat Indonesia (BBRI IJ) (Buy) - Apr-26 results

Apr-26 results

Fig. 1: BBRI YTD Apr-26 y-y performance %

Fig. 2: BBRI monthly results

Fig. 3: BBRI monthly results

Fig. 4: BBRI – 12MMA CoC vs 12MMA WO %

Fig. 5: BBRI – LLR vs 12MMA WO %

Rating Table

Research Analysts

yudi Administrator

Bank Central Asia BBCA IJ - Buy - Solid YTD Jul-24 results

Bank Rakyat Indonesia -BBRI IJ- Buy - Towards more commercial micro

Bank Negara Indonesia BBNI IJ - Buy - Operating 1H24 results were below

Bank Rakyat Indonesia -BBRI IJ- Buy - YTD Jul-24 bank only results - steady progress

Bank Rakyat Indonesia -BBRI IJ- Buy - ROAE uptrend on positive micro trends

Bank Central Asia -BBCA IJ- Buy - Steady growth reiterate Buy new TP IDR13200

Bank Rakyat Indonesia (BBRI IJ) (Buy) - Apr-26 results

Fig. 1: BBRI YTD Apr-26 y-y performance %

Fig. 2: BBRI monthly results

Fig. 3: BBRI monthly results

Fig. 4: BBRI – 12MMA CoC vs 12MMA WO %

Fig. 5: BBRI – LLR vs 12MMA WO %

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