Company Coverage
Bank Rakyat Indonesia (BBRI IJ): 2Q26: Pegadaian Cushions Mix Shift; Reinvestment Returns Key
HOLD (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rp3,240
Rp3,690
+13.9%
Rp4,250
Analyst
Highlights
Results in line, supported by stronger operating performances. 1H26 net profit rose 17.5% yoy to Rp31.2t, meeting expectations, as solid PPOP growth and a lower 3.08% credit cost offset continued to pressure bank-only loan yields.
Pegadaian cushioned pressure from the changing bank-only loan mix. Consolidated NIM remained resilient at 7.7%, around 130bp above bank-only NIM of 6.4%, reflecting the contribution from Pegadaian and PNM. Pegadaian more than offset the contraction in bank-only micro. However, corporate and commercial lending accounted for around 69% of incremental loans.
Maintain HOLD with a lower target price of Rp3,690. Funding remains a key watchpoint as deposits lag asset growth amid tighter liquidity, while the lower DPR to 70% range in 2026 then to 50-60% trades off near-term dividend support for capital preservation.
Analysis
2Q26 net profit was flat qoq, but jumped 21.6% yoy. Bank Rakyat Indonesia (BBRI) booked 2Q26 net profit of Rp15.5t, relatively flat qoq but surging 21.6% yoy, bringing 1H26 profit to Rp31.2t (+17.5% yoy). 1H26 net profit is in line with our and market expectations, accounting for 52% and 52% of our and market 2026 forecasts respectively. Pre-provision operating profit (PPOP) rose 18.1% yoy in 2Q26, supported by an 8.6% net interest income (NII) growth and an 8.7% decline in opex. 1H26 provision expenses rose 9.7% yoy, with credit cost improving to 3.08% in 1H26 from 3.35% in 1H25.
Resilient NIM, standing at 7.7%, subsidiaries provide a meaningful lift. Consolidated NIM stood at 7.7% in 1H26, vs 6.4% at bank-only, implying an approximately 130bp uplift from subsidiaries, particularly higher-yielding businesses (Pegadaian and PNM). At the bank-only level, lower cost of funds of 2.4% from 2.9% in 2025, cushioned the decline in loan yield. NIM resilience therefore reflects both lower funding and the growing subsidiary mix; the underlying bank-only portfolio remains pressured by the shift towards lower yielding corporate loans and the contraction in Kupedes.
Highlights
Results in line, supported by stronger operating performances. 1H26 net profit rose 17.5% yoy to Rp31.2t, meeting expectations, as solid PPOP growth and a lower 3.08% credit cost offset continued to pressure bank-only loan yields.
Pegadaian cushioned pressure from the changing bank-only loan mix. Consolidated NIM remained resilient at 7.7%, around 130bp above bank-only NIM of 6.4%, reflecting the contribution from Pegadaian and PNM. Pegadaian more than offset the contraction in bank-only micro. However, corporate and commercial lending accounted for around 69% of incremental loans.
Maintain HOLD with a lower target price of Rp3,690. Funding remains a key watchpoint as deposits lag asset growth amid tighter liquidity, while the lower DPR to 70% range in 2026 then to 50-60% trades off near-term dividend support for capital preservation.
Analysis
2Q26 net profit was flat qoq, but jumped 21.6% yoy. Bank Rakyat Indonesia (BBRI) booked 2Q26 net profit of Rp15.5t, relatively flat qoq but surging 21.6% yoy, bringing 1H26 profit to Rp31.2t (+17.5% yoy). 1H26 net profit is in line with our and market expectations, accounting for 52% and 52% of our and market 2026 forecasts respectively. Pre-provision operating profit (PPOP) rose 18.1% yoy in 2Q26, supported by an 8.6% net interest income (NII) growth and an 8.7% decline in opex. 1H26 provision expenses rose 9.7% yoy, with credit cost improving to 3.08% in 1H26 from 3.35% in 1H25.
Resilient NIM, standing at 7.7%, subsidiaries provide a meaningful lift. Consolidated NIM stood at 7.7% in 1H26, vs 6.4% at bank-only, implying an approximately 130bp uplift from subsidiaries, particularly higher-yielding businesses (Pegadaian and PNM). At the bank-only level, lower cost of funds of 2.4% from 2.9% in 2025, cushioned the decline in loan yield. NIM resilience therefore reflects both lower funding and the growing subsidiary mix; the underlying bank-only portfolio remains pressured by the shift towards lower yielding corporate loans and the contraction in Kupedes.
HOLD (Maintained)
Current price:
Target price:
Upside:
Previous TP :
Rp3,240
Rp3,690
+13.9%
Rp4,250
Analyst
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