PT Bank Rakyat Indonesia (Persero) Tbk (BKRKY) Q1 2026 Earnings Call Transcript – Image for illustrative purposes only (Image credits: Unsplash)
Millions of micro-entrepreneurs across Indonesia’s rural heartlands rely on steady credit flows to sustain their operations amid economic headwinds. PT Bank Rakyat Indonesia (Persero) Tbk, known as BRI, delivered reassuring results in its first-quarter 2026 earnings call, posting a 13.7 percent year-on-year increase in consolidated net profit to Rp15.5 trillion.[1][2] This performance, announced on April 30, underscored the bank’s focus on resilient segments like microfinance, which forms nearly half of its loan book and supports everyday livelihoods from street vendors to small farmers.
Robust Balance Sheet Expansion Drives Stability
Total assets climbed 7.2 percent year-on-year to Rp2,250 trillion, reflecting disciplined growth in a volatile global environment marked by rising oil prices and a stronger U.S. dollar.[3] Loans and financing expanded sharply by 13.7 percent to Rp1,562 trillion, outpacing the broader banking sector’s 9.4 percent growth through February.[1] Deposits rose 9.4 percent to Rp1,555 trillion, with low-cost current account and savings accounts (CASA) surging 13.2 percent to Rp1,059 trillion and lifting the CASA ratio to 68 percent.
Group CEO Hery Gunardi highlighted this funding strength during the call: “In terms of funding, BRI’s Third Party Fund reached IDR 1,555 trillion or grew 9.4 percent year-on-year, with the contribution of cheap funds (CASA) which is increasingly solid.”[2] Such improvements lowered the cost of funds to 2.3 percent, a 65 basis-point drop year-on-year, enabling BRI to maintain a competitive edge for its small-business clients who depend on affordable borrowing.
Profitability Metrics Show Steady Gains
Net interest income increased 11.9 percent to Rp40.2 trillion, bolstered by a net interest margin of 7.9 percent – well above the bank’s guidance of 7.4 to 7.8 percent and the sector average of 4.5 percent.[1] Pre-provision operating profit (PPOP) grew 7.7 percent to Rp32.2 trillion, while return on equity rose to 18.4 percent from 17.1 percent a year earlier.[2]
| Key Metric | Q1 2026 | Q1 2025 | YoY Change |
|---|---|---|---|
| Net Profit (Rp Tn) | 15.5 | 13.6 | +13.7% |
| Loans (Rp Tn) | 1,562 | 1,374 | +13.7% |
| Deposits (Rp Tn) | 1,555 | 1,422 | +9.4% |
| CASA Ratio | 68% | 66.7% | +130 bps |
| NIM | 7.9% | N/A | Stable |
Non-interest income edged up 2.4 percent, aided by fee growth and treasury gains, though operating expenses rose 11.1 percent in line with asset expansion. These figures positioned BRI favorably against peers, with a capital adequacy ratio of 22.9 percent providing ample buffer for stakeholders including depositors and shareholders.
Asset Quality Efforts Yield Tangible Improvements
Non-performing loans held steady at around 3.3 percent gross, with coverage at 179.5 percent and loan loss reserves at 5.4 percent of gross loans.[3] The micro segment, comprising 45.2 percent of loans at Rp705 trillion, saw NPLs decline to 4.8 percent from 6.57 percent year-on-year, thanks to enhanced underwriting, added field supervisors, and collections teams scaling to 5,500 officers.[1]
Loan-at-risk ratio improved to 9.7 percent from 11.1 percent, signaling reduced stress for borrowers in trading, hospitality, and agribusiness – sectors hit by geopolitical tensions. Cost of credit remained at 3.2 percent, within guidance, as management prioritized quality over volume in micro lending, which contracted in some products like Kupedes.
Digital Push and Segment Shifts Reshape Strategy
- BRImo app users reached 47.8 million, up 18.6 percent, with monthly active users at 21.9 million and transactions rising 32 percent.
- Consumer loans grew 9.5 percent, led by mortgages (11.1 percent) and auto loans (275.6 percent from low base).
- Corporate and commercial segments drove loan expansion, with subsidiaries like Pegadaian contributing 60.4 percent of subsidiary profits.
- QRIS payment volume surged 78 percent, enhancing ecosystem integration.
Under the BRIvolution Reignite program, the bank integrated digital tools across segments, boosting cross-selling and productivity. CFO Royadi detailed how stable loan yields at 12.2 percent offset funding cost dynamics, while Director of Micro Akhmad Purwakajaya outlined cautious growth in that vital area serving Indonesia’s 64 million MSMEs.
Guidance Points to Cautious Optimism Ahead
Management reaffirmed full-year targets, expecting stable NIM, cost of credit at 2.9 to 3.2 percent, and operating expense to assets at 3 to 4 percent. Loan growth will remain selective, emphasizing corporate, commercial, and consumer areas amid macro uncertainties, with digital enhancements like BRImo mutual funds and cross-border payments accelerating customer acquisition.[1]
For the small business owners and rural families BRI serves, these results offer continuity in credit access, though executives stressed ongoing vigilance on global risks. As Indonesia’s economy holds firm, the bank’s trajectory suggests sustained support for the grassroots economy that powers national growth.
