BBRI - In line FY25 earnings

KBVS Update
Tuesday, 3 March 2026

BBRI – In line FY25 earnings
(Maintain BUY; TP: IDR4,470)

* BBRI FY25 earnings weakened by -5.5% yoy, yet made a meaningful improvement on a quarterly basis (+9.5% qoq). In all, FY25 earnings came in line with our and cons. forecast (98.8%/97.0%).

* Total loan surpassing industry, our ‘25F forecast, and management guidance. Total TPF grew by 7.4% yoy, driven by double-digit CASA growth.

* Yearly NIM was well managed and expanded 30bps qoq to 8.0% 4Q25 vs 7.7% (3Q25), beating ‘25F guidance and our ‘25F NIM for BBRI. The bank expects the ‘26F total loan to hover within the range of 7-9% yoy (KBVS ‘26F: 7.7% yoy prior to BBRI’s FY25 earnings released). Better NIM level is also anticipated at a range of 7.4%-7.8%, with a better CoC (2.9%-3.2%) and manageable CIR (41%-43%).

* AQ structural improvement and better activity in the micro and SME segments are the major keys. Meanwhile, we expect stronger ‘26F loan growth and more materialized softer funding costs as the two vital catalysts for better ‘26F NIM.  We will revisit our BBRI ‘26F model following the audited FY25 released. Maintain BUY BBRI, GGM-based TP of IDR 4,470 (2.0x ’26F P/B), currently at 1.7x ‘26F P/B, or slightly below -1SD.

Regards,
Akhmad Nurcahyadi - KBVS Research team