BBRI - Inline 1Q26 earnings on softening funding cost

KBVS Update
Tuesday, 5 May 2026

BBRI – Inline 1Q26 earnings on softening funding cost
(Maintain BUY; TP: IDR4,010)

* BBRI capped 1Q26 with a solid result. Robust BBRI’s 1Q26 earnings (+13.8% YoY) benefited by a sharp drop in funding cost and slightly softer provisions, came in line with our and consensus ‘26F expectation (26.2%/26.0%).

* Total TPF saw stronger deposit mix with CASA inflows strengthened significantly (+13.2% YoY) and overall play vital role to softening interest expenses, resulting to a healthy 1Q26 PPoP and *PATMI growth.

* On funding front, the +13.7% YoY growth crushing industry growth achievement (+9.49% YoY), management guidance (7-9% YoY) and our ‘26F forecast (7.2% YoY). NIM stood at 7.9% higher from 7.7% in 1Q25 amid the sector pressure, slightly beating BBRI’s ‘26F upper guidance (7.4-7.8%), while CoC improving (-0.3% YoY) to 3.2%. Gross NPL stood at 3.0%, well managed year-on-year and slightly healthier on quarterly basis.

* Maintain BUY, GGM-based TP of IDR 4,010 (1.8x ’26F P/B), currently traded at 1.4x ‘26F P/B, or slightly below -2SD.

Regards,
Akhmad Nurcahyadi - KBVS Research team