Bank Syariah Indonesia (BRIS IJ) (Buy) - May-26 results in-line

May-26 results in-line

BRIS has released its May-26 results, reporting a headline profit of IDR589bn (-3% m-m; +12% y-y), bringing YTD May-26 profit to IDR3.4tn (+17% y-y) – accounting for ~41% of our FY26F projection, on track to meet or exceed our current FY26F earnings projection. We expect BRIS to continue delivering higher financing growth than the sector average, and stable funding costs, which should ease the pressure on NFM (net financing margin). Return on average equity (ROAE) reached 13.9%, up from 13.3% in May-25, supported by a lower cost of credit of 0.8% (down from 1.1% in May-25), better provisioning efficiency post-PSAK 413 implementation, and strong fee-based income growth, predominantly driven by gold-related products. We believe these will be the key earnings drivers for the bank in the medium term. Meanwhile, we expect the bank’s asset quality to improve further, potentially keeping provision expenses (CoC) at <100bp.

Net financing/margin income (NFI) arrived at IDR1.7tn (flat m-m; +8% y-y), bringing YTD May-26 NFI to IDR8.9tn (+13 y-y) – accounting for ~40% of our FY26 forecast. Headline PPOP reached IDR963bn (+4% m-m; +3% y-y), bringing YTD May-26 PPOP to IDR5.3tn (+7% y-y) – accounting for ~38% of our FY26 forecast, as sharper operating expense growth — likely driven by branch expansion and technology investments — partially offset income gains.

On the balance sheet, BRIS booked financing growth of 15% y-y. We expect loan growth to remain stable in subsequent months, heading towards management guidance of 14-16% in FY26E. On funding, the bank reported financing (deposits) growth of 17% y-y. This implies LFR of 88.8% (+290bp m-m; -150bp y-y) – still relatively ample compared to the broader banking sector in Indonesia.

Valuation and Risks

We derive our TP of IDR3,250 using DuPont analysis, with key parameters including: a risk-free rate of 6.5%, an equity risk premium of 7.8%, growth of 15.0%, beta of 1.2x and a CAR-adjusted ROAE of 17.6%. Our TP implies 2.6x FY26F P/B (vs 1.7x currently) and 17.9 FY26F P/E (vs 13.2x currently). Risks are worsening economic trends, tighter liquidity competition, and/or higher credit cost and opex growth.

Fig. 2: BRIS monthly results

BRIS monthly results	May-25	Dec-25	Apr-26	May-26	M-M	Y-Y	YTD-26	YTD-25	YTD Y-Y%	% of FY26F	FY26F
Monthly NII (IDRmn)	1,589,740	2,093,051	1,707,064	1,712,245	0%	8%	8,947,807	7,897,001	13%	40%	22,591,408
Monthly PPOP (IDRmn)	936,220	1,302,223	928,773	963,289	4%	3%	5,324,587	4,977,569	7%	38%	14,178,965
Monthly net profit (IDRmn)	525,968	858,889	605,013	588,908	-3%	12%	3,394,020	2,907,498	17%	41%	8,342,558
Monthly prov (IDRmn)	256,819	195,125	151,971	206,736	36%	-20%	960,800	1,225,186	-22%	31%	3,141,902
Asset yield (annualised)	7.4%	7.9%	6.7%	6.9%			7.0%	7.3%
Cost of fund (annualised)	2.9%	2.3%	2.3%	2.4%			2.3%	2.9%
NIM (annualised)	5.0%	5.9%	4.7%	4.8%			5.0%	4.9%
Credit cost (annualised)	1.1%	0.8%	0.6%	0.8%			0.7%	1.0%
LLR	3.7%	3.5%	4.6%	4.6%
LDR	90.3%	82.6%	85.9%	88.8%
Loan as % earning asset	76.9%	72.4%	75.8%	78.2%
CASA ratio	61.2%	61.6%	63.5%	63.2%
Monthly CIR	51.6%	52.1%	56.4%	53.7%
B/S ROAE	13.3%	20.0%	14.2%	13.9%
B/S ROAA	1.6%	2.3%	1.6%	1.6%
MoM loan growth	1.6%	3.3%	1.2%	0.7%
YoY loan growth	15.0%	14.4%	15.7%	14.7%
MoM deposit growth	-1.6%	3.5%	1.4%	-2.6%
YoY deposit growth	9.2%	16.2%	17.9%	16.7%
BRIS - IDRbn	May-25	Dec-25	Apr-26	May-26	M-M	Y-Y	YTD-26	YTD-25	3-yr Cagr
Gross financings	288,037	314,354	327,990	330,348	1%	15%	5.1%	4.8%	10.0%
Provisions	10,558	11,039	15,043	15,033	0%	42%	36.2%	2.1%	14.6%
Net loans	277,478	303,315	312,946	315,315	1%	14%	4.0%	4.9%	9.8%
Deposits (inc Wadiah)	318,802	380,488	381,940	372,167	-3%	17%	-2.2%	-2.6%	8.3%
CASA	195,012	234,455	242,469	235,049	-3%	21%	0.3%	-0.9%	9.4%
- CA	58,960	71,828	77,230	69,866	-10%	18%	-2.7%	4.7%	9.6%
- SA	136,052	162,628	165,239	165,183	0%	21%	1.6%	-3.2%	9.3%
- TD	123,789	146,033	139,471	137,118	-2%	11%	-6.1%	-5.2%	6.4%
Total Wadiah	76,460	91,102	89,912	85,770	-5%	12%	-5.9%	2.7%	6.9%
- CA	21,379	27,790	24,759	21,087	-15%	-1%	-24.1%	11.7%	-0.1%
- SA	55,082	63,311	65,153	64,683	-1%	17%	2.2%	-0.4%	9.7%
Wadiah % of total deposits	24.0%	23.9%	23.5%	23.0%	-2%	-4%	-3.7%	5.5%	-1.2%
Equities	47,491	51,953	51,358	50,387	-2%	6%	-3.0%	5.4%	7.1%
Assets	402,713	456,193	451,726	443,967	-2%	10%	-2.7%	-1.4%	8.2%

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 3,250
Closing price 26 June 2026	IDR 1,730

Research Analysts

Erwin Wijaya (erwin.wijaya@verdhana.id)

Tags: BANKS, Bank Syariah Indonesia, BRIS, BRIS JK, BRIS IJ, Erwin Wijaya

Bank Syariah Indonesia (BRIS IJ) (Buy) - May-26 results in-line

May-26 results in-line

Fig. 1: BRIS YTD May-26 y-y performance %

Fig. 2: BRIS monthly results

Fig. 3: BRIS - 12MMA CoC vs 12MMA WO %

Fig. 4: BRIS - 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 Syariah Indonesia (BRIS IJ) (Buy) - May-26 results in-line

Fig. 1: BRIS YTD May-26 y-y performance %

Fig. 2: BRIS monthly results

Fig. 3: BRIS - 12MMA CoC vs 12MMA WO %

Fig. 4: BRIS - LLR vs 12MMA WO %

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