BRI Bolsters Credit Resilience with Rp 81.6 Trillion in Provisions Amid Global Uncertainty
Main Takeaways
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JAKARTA, investortrust.id – Bank Rakyat Indonesia, one of the country's largest state-owned lenders, has reinforced its financial position by allocating Rp 81.6 trillion ($5.1 billion) in loan-loss provisions, signaling confidence in its underlying fundamentals despite a drop in profits during the first quarter of 2025. The bank’s move highlights the strength of its risk management and capital adequacy amid ongoing global uncertainties.
PT Bank Rakyat Indonesia Tbk, or BRI, reported that its non-performing loan (NPL) ratio improved to 2.97% from 3.11% a year earlier, while its capital adequacy ratio (CAR) stood at a robust 24.03%. The bank’s total assets grew by 5.49% year-on-year to Rp 2,098.23 trillion ($130.2 billion), driven by quality-focused lending, particularly in the small and medium enterprise (SME) segment, which now makes up 82% of its loan book.
“The global economy remains uncertain, but Indonesia, and particularly BRI, is largely driven by domestic consumption, which insulates us from trade-related shocks,” said BRI President Director Hery Gunardi during the bank’s Q1 performance briefing on Tuesday, April 30.
Credit Quality Improves Despite Slower Profit
In Q1 2025, BRI recorded a consolidated net profit of Rp 13.80 trillion ($857 million), reflecting a decline from the same period last year. However, this was not attributed to deteriorating asset quality. Rather, the increase in cost of credit to 3.5% weighed on profitability. The bank’s Loan at Risk (LAR) ratio improved from 12.68% to 11.12%, and its NPL coverage ratio reached 200.60%.
"With a coverage ratio this high, we provide confidence not only to investors but also to regulators and stakeholders that our fundamentals remain strong," said Risk Management Director Mucharom. He added that the reserve could later be released to bolster earnings if credit quality continues to improve.
Digital Push and Risk Monitoring
BRI is conducting a comprehensive review of its risk management framework, including enhancements in retail and wholesale risk monitoring, IT and digital risk controls, and fraud detection systems. The bank is also revising its credit scoring and rating tools to provide sector-specific and region-specific granularity.
The bank’s flagship programs—such as Desa BRILiaN, Klaster Hidupku, and Rumah BUMN—continue to support SME borrowers with training and financial literacy. Meanwhile, BRImo, its super app, has seen a 20.26% increase in users, reaching 40.28 million by the end of March. BRImo processed 1.2 billion transactions worth Rp 1,599 trillion ($99 billion), a 27.79% year-on-year growth in value.
Mixed Margins, Solid Funding
Net interest margin (NIM) dipped to 6.28% from 6.71%, while net interest income fell slightly to Rp 35.85 trillion from Rp 36.49 trillion a year earlier. Third-party funds rose marginally to Rp 1,421.60 trillion, supported by growth in low-cost CASA funds, which reached Rp 934.9 trillion or 65.8% of total deposits.
Dividend Appeal and Stock Buyback
BRI’s dividend payout remains one of the most attractive among state-owned banks. For the fiscal year 2024, the bank distributed 80% of its net profit—equivalent to Rp 51.73 trillion ($3.2 billion) or Rp 343.40 per share. The dividend was split between an interim payout of Rp 135 per share in January and a final dividend of Rp 208.40 per share.
The bank has also launched a share buyback program worth Rp 3 trillion ($187 million), approved at the Annual General Meeting on Monday, March 24. This move is aimed at supporting long-term employee stock ownership and boosting investor confidence amidst global macroeconomic volatility.
“The share buyback is a strategic step to ensure financial health and align employee incentives with corporate performance,” said Corporate Secretary Agustya Hendy Bernadi, adding that the initiative complies with regulatory standards and governance principles.
Broker Ratings Remain Positive
Both Sucor Sekuritas and Verdhana Sekuritas reaffirmed their “buy” ratings for BBRI shares, citing strong asset quality, sufficient provisioning, and digital transformation progress. Sucor set a target price of Rp 5,525, while Verdhana pegged it at Rp 5,000.