BBRI Profit Grew 78% - This Time Both Quarters Are Actually Comparable

The First Genuinely Clean Comparison Since the Merger

FY2021's post closed on an open question: Q4 2021's ~74.1% QoQ profit jump was largely a consolidation-timing artifact (Pegadaian and PNM's earnings counted for a full quarter versus Q3's roughly two-and-a-half weeks), and FY2020's own comparative base had just been retroactively rebuilt under pooling-of-interests accounting to include both companies a year before BRI actually owned them. This quarter is the first one in the entire Ultra Micro Holding integration where neither of those complications applies. Q1 2022 is BRI, Pegadaian, and PNM's second full quarter operating together, and Q1 2021 - the quarter it's being compared against - was itself already restated onto the same fully-consolidated basis in last year's own annual filing. Both sides of the YoY comparison this quarter are built the same way, for the first time since the deal closed.

Consolidated net income attributable to owners came to Rp12,167 billion, up 78.2% YoY from Q1 2021's restated Rp6,826 billion (BRI's own presentation headlines the total consolidated figure, including non-controlling interests, at Rp12,220 billion versus Rp6,860 billion - a nearly identical 78.1%). Unlike Q4 2021's jump, there's no consolidation-timing asterisk to attach to this one - both quarters carry a full three months of Pegadaian and PNM's earnings. Net revenue (net interest, Sharia and premium income) grew a more modest 11.2% to Rp30,685 billion, and operating income jumped 51.7% to Rp15,320 billion - the gap between a low-double-digit revenue gain and a much larger operating-income and net-income gain is explained on the cost side: provisioning fell 26.6% YoY (per BRI's own consolidated income statement, Rp7,474 billion versus Rp10,181 billion), doing most of the work that lifted profit growth so far above revenue growth. Full detail on the credit-quality metrics behind that provisioning decline is in Key Operational Metrics below.

The Prescription

BRI should now publish - explicitly, on its own guidance slide - what an organic, subsidiary-adjusted growth rate looks like for at least Loan Growth, Net Revenue, and Credit Cost, now that it has two consecutive genuinely comparable quarters (this one and FY2021) to compute one from. The bank has spent three straight quarterly posts in this series explaining why a given period's YoY or QoQ number carries a consolidation asterisk; it now has the data to remove that asterisk itself instead of leaving readers to reconstruct it, and doing so would also make its own new FY2022 guidance band (see Beyond the Usual) easier to hold it to.

What BRI should stop doing: quietly redefining how it classifies a major loan segment without flagging the change on the same slide where the resulting numbers appear. This quarter's investor presentation notes, almost in passing, that "since 2022, BRI has classified SOE and Corporate non-SOE into Corporate Segment" - collapsing two categories this series has tracked separately since 2015 into one, with the new segment's KPI shifting from loan outstanding to CASA/fee generation (see Beyond the Usual). A change that breaks multi-year comparability for one of six loan segments deserves its own callout, not a single line buried in a supporting-materials appendix.

Key Financial Metrics

Three months ended March 31, 2022 vs. three months ended March 31, 2021 (consolidated, both periods on the same fully-consolidated Ultra Micro Holding basis), unless noted

FX: Rp14,369.00 = USD 1 as of March 31, 2022, per BRI's own filed financial statements' Reuters middle-rate disclosure - a 0.8% Rupiah depreciation from Dec 2021's Rp14,252.50.

Metric	Q1 2022 (IDR)	Q1 2022 (USD)	Q1 2021 (IDR, restated)	YoY
Net Interest, Sharia and Premium Income, net ("Net Revenue" equivalent)	Rp30,685,422M	~$2,136M	Rp27,586,020M	✅ +11.24%
Operating Income (Profit from Operations)	Rp15,319,684M	~$1,066M	Rp10,095,386M	✅ +51.75%
Net Income (attributable to owners)	Rp12,167,224M	~$847M	Rp6,826,171M	✅ +78.24%
Net Income (total consolidated, incl. non-controlling interests)	Rp12,219,621M	~$851M	Rp6,860,082M	✅ +78.13%
EPS (basic, attributable to owners, quarterly)	Rp80	~$0.0056	Rp56	✅ +42.86%

Balance sheet metric	Mar 2022 (IDR)	Mar 2022 (USD)	Dec 2021 (IDR)	QoQ	Mar 2021 (IDR, restated)	YoY
Total Assets	Rp1,650,279B	~$114,853M	Rp1,678,098B	⚠️ -1.66%	Rp1,514,118B	✅ +8.99%
Loans and Financing (gross)	Rp1,075,927B	~$74,878M	Rp1,042,867B	✅ +3.17%	Rp1,001,539B	✅ +7.43%
Total Deposits	Rp1,126,495B	~$78,394M	Rp1,138,743B	⚠️ -1.08%	Rp1,049,022B	✅ +7.39%
Total Equity (incl. non-controlling interest)	Rp275,986B	~$19,208M	Rp291,787B	⚠️ -5.42%	Rp225,424B	✅ +22.42%
Total Cash and Cash Equivalents (per cash flow statement, period-end)	Rp144,483B	~$10,055M	Rp153,925B	⚠️ -6.13%	Rp140,929B	✅ +2.52%

Total Equity's QoQ decline is largely explained by a Rp26,406,603M FY2021 dividend distribution paid out this quarter, per the consolidated cash flow statement's financing activities.

Key Operational Metrics

Bank-only, per BRI's own investor presentation and filed financial-ratio table, unless stated

• CASA^»: 63.75% (Mar 2022) vs 63.30% (Dec 2021) ✅ and 59.48% (Mar 2021) ✅ - extending Q4's jump rather than giving any of it back.
• Loan-to-Deposit Ratio (LDR)^»: 87.14% (Mar 2022) vs 83.67% (Dec 2021) and 86.77% (Mar 2021) - up on both counts, now sitting above management's own prior "±85%" FY2021 guidance level, though a new FY2022 band hasn't been given for LDR specifically.
• Net Interest Margin (NIM)^»: 6.85% (Mar 2022) vs 6.89% (Dec 2021) ⚠️ and 7.00% (Mar 2021) ⚠️ - down slightly on both counts, and already trailing the low end of BRI's newly-issued 7.6%-7.8% FY2022 NIM guidance (see Beyond the Usual) by a wide margin in the very first quarter of that guidance year.
• ROA^» (before tax): 3.56% (Mar 2022) vs 2.72% (Dec 2021) ✅ and 2.65% (Mar 2021) ✅ - improved on both counts.
• ROE^» (Tier 1): 19.11% (Mar 2022) vs 16.87% (Dec 2021) ✅ and 15.47% (Mar 2021) ✅ - also improved on both counts.
• CAR^» (Total, bank-only): 22.39% (Mar 2022) vs FY2021's series-high 25.28% (Dec 2021) ⚠️ and 19.40% (Mar 2021) ✅ - the ratio gave back roughly two-thirds of its post-rights-issue gain over FY2021 in a single quarter, reversing FY2021's finding that the capital base looked durable rather than a one-quarter spike - see Beyond the Usual for why. Tier 1 CAR: 21.39% (Mar 2022) vs 24.27% (Dec 2021) and 18.39% (Mar 2021).
• NPL ratio - gross (bank-only): 3.15% (Mar 2022) vs 3.08% (Dec 2021) ⚠️ and 3.12% (Mar 2021) ⚠️ - a marginal worsening on both counts, and already above the 2.8%-3% ceiling of BRI's own newly-issued FY2022 NPL guidance in the very first quarter of that guidance year (see Beyond the Usual). NPL ratio - net: 0.77% (Mar 2022) vs 0.70% (Dec 2021) ⚠️ and 0.86% (Mar 2021) ✅.
• NPL Coverage Ratio (bank-only): 275.66% (Mar 2022) vs FY2021's series-high 278.14% (Dec 2021) ⚠️ and 254.79% (Mar 2021) ✅ - essentially flat QoQ after five straight quarters of climbing, the first quarter this series has recorded where the ratio didn't set a fresh high.
• Loan at Risk (LAR)^» (bank-only, incl. Covid-19 restructuring): 22.58% of total loans (Mar 2022) vs 24.11% (Dec 2021) and 28.84% (Mar 2021) ✅ - the fifth straight quarterly improvement on both counts. LAR Coverage: 38.50% (Mar 2022) vs 35.56% (Dec 2021) and 27.58% (Mar 2021) ✅.
• Credit Cost (bank-only): 2.96% (Q1 2022, quarterly) vs 3.42% (FY2021, full-year cumulative) and 3.91% (Q1 2021, quarterly) ✅ - comfortably inside BRI's new 2.8%-3% FY2022 guidance band already in its very first quarter.
• BOPO^» (Opex/Opr. Income, bank-only): 64.26% (Q1 2022) vs 74.30% (FY2021) ✅ and 76.83% (Q1 2021) ✅ - improved sharply on both counts.
• Other Operating Expenses (consolidated, absolute): Rp18,365 billion (Q1 2022) vs Rp17,697 billion (Q1 2021), up 3.8% YoY - a genuinely contained increase compared with FY2021's 18.1% Opex-growth overshoot against management's own 8%-10% guidance; this quarter's growth would land inside even BRI's new, unrelated 6%-8% FY2022 overhead-cost guidance band if the two figures were directly comparable (see Beyond the Usual for why they aren't quite the same metric).

Business Lines: Loan Growth and Credit Quality

YoY, bank-only, per BRI's own investor presentation

Micro loans grew 15.4% YoY, again the fastest-growing large segment and the one management's own "Key Takeaways" slide credits for the quarter's loan growth. NPL worsened further to 1.77% from 1.23% at Q1 2021 - the same rapid-growth-driven NPL creep flagged every quarter since Q2 2021, though still the lowest NPL of any large segment.

Consumer grew 4.7% YoY, in line with recent quarters, with NPL worsening to 1.93% from 1.65% - continuing the gradual retail-book deterioration tracked since Q1 2020.

Small Commercial grew 8.3% YoY, its strongest reading in this series in some time, while NPL worsened to 4.39% from 4.10%. Medium grew a modest 2.5% YoY; NPL improved YoY to 3.95% from 4.46% at Q1 2021, but worsened QoQ from FY2021's 3.57% - a second straight quarterly increase on the QoQ basis, extending the reversal first flagged at Q3 2021.

Corporate - now a single combined segment rather than the separate SoE/Non-SoE split this series tracked through FY2021 (see Beyond the Usual) - contracted 0.3% YoY, essentially flat, with NPL improving to 5.89% from a restated 6.93% a year earlier.

Segment Comparison

This quarter's comparison is genuinely constrained by BRI's own mid-quarter segmentation change: Corporate is no longer split into SoE and Non-SoE, so the multi-year pattern this series tracked - Corporate and SoE improving through FY2021 while the growth-driven retail segments (Micro, Consumer, Small, Medium) all crept modestly worse - can't be extended cleanly into this quarter using the same categories. What's still comparable: Micro remains the fastest-growing segment by a wide margin (15.4% YoY) and also the one whose NPL keeps rising fastest in absolute terms, a trade-off this series has now tracked across seven consecutive quarters. Small Commercial's 8.3% YoY growth is its best reading in this series in some time, but it's also the segment (alongside Micro) driving the worst NPL deterioration this quarter. Medium is the one genuine reversal worth watching: its NPL improved YoY but has now worsened for two straight quarters on a QoQ basis, the same early-reversal signal Q3 2021 first flagged before it corrected itself later that year - whether it corrects again or keeps drifting is the open question for Q2. Corporate, now a combined category, shrank marginally while its NPL improved - directionally consistent with what SoE and Non-SoE were both doing separately at FY2021, but no longer separable to confirm.

Beyond the Usual

This quarter's source document is BRI's unaudited interim consolidated financial statements as of March 31, 2022 - a genuinely footnoted document, distinct from the Q1 investor presentation that accompanies it.

BRI Quietly Merged Two Loan Segments This Series Has Tracked Separately Since 2015

BRI's own Q1 2022 investor presentation discloses, in a single footnote line under its loan-quality tables, that "since 2022, BRI has classified SOE and Corporate non-SOE into Corporate Segment," and separately that the classification basis has shifted from ownership (State-Owned Enterprise vs. private/non-SoE) to industry sector (agribusiness, manufacturing and property, infrastructure, transportation). The change also comes with a stated shift in how the unit managing Corporate loans is measured internally - "less focused on loan outstanding, and more weight is given to CASA acquisition, FBI generation, and Value Creation" for other segments. This is a genuine break in comparability for a segment this series has tracked as two separate lines - Corporate Non-SoE and SoE - across every quarter since 2015, and it isn't flagged anywhere on the headline financial-highlights slide, only in a footnote under the loan-quality chart several pages later.

The Bank-Only Capital Ratio Gave Back Roughly Two-Thirds of Its Post-Rights-Issue Gain

[FY2021's post](/analysis/bbri/2021-12/#the-capital-ratio-kept-climbing-after-the-rights-issue-closed-not-just-spiking-on-it) found that bank-only Total CAR kept climbing for a full quarter after September 2021's rights issue closed, reaching a series-high 25.28% by December 2021 - evidence, at the time, that the capital injection wasn't a one-quarter accounting spike. This quarter reverses that reading: Total CAR fell to **22.39%**, giving back 2.89 percentage points of the 5.91-point gain built up between the rights issue and year-end. Tier 1 CAR fell similarly, from 24.27% to 21.39%. The filing doesn't isolate a single cause, but the ratio's denominator (risk-weighted assets) grew alongside this quarter's loan growth while the numerator wasn't replenished by a comparable capital-raising event - meaning at least part of FY2021's "durable, not a spike" read was itself premature, and the ratio bears watching for whether it stabilizes near current levels or keeps reverting toward BRI's pre-rights-issue range (18-21% through most of 2019-2020).

Two of BRI's Own New FY2022 Guidance Lines Were Already Missed in the Guidance Year's First Quarter

BRI's Q1 2022 presentation introduces a fresh set of FY2022 guidance bands: Loan Growth 9%-11%, NIM 7.6%-7.8%, Cost of Credit 2.8%-3%, Overhead Cost Growth 6%-8%, and NPL 2.8%-3%. Two of the five are already outside their own range in this, the very first quarter being measured against them: NIM came in at 6.85%, below even the low end of the 7.6%-7.8% band by a wide margin, and gross NPL (bank-only) came in at 3.15%, above the 2.8%-3% ceiling. Credit Cost (2.96%) and CASA both land comfortably inside their respective targets, so this isn't a guidance slide that's simply too conservative across the board - it's specifically the NIM and NPL lines that open the year already behind, the same "guidance vs. actual" gap [FY2021's Beyond the Usual](/analysis/bbri/2021-12/#credit-cost-finally-cleared-guidance-while-opex-blew-through-it-in-the-other-direction) flagged for Opex growth a quarter ago, just on different metrics this time.

A Foreign Insurer Took a Fresh Stake in BRI Life

A March 2, 2022 shareholder resolution increased BRI Life's issued and paid-up capital from Rp313,645.8 million to Rp339,200.7 million by issuing new shares taken entirely by FWD Management Holdings Limited, a Hong Kong-based insurance group. The transaction diluted BRI's own stake in its insurance subsidiary from 63.83% (December 2021) to 59.02%, with FWD Management Holdings Limited emerging as a new 35.14% shareholder and the BRI Employee Welfare Foundation retaining 5.84%. OJK's insurance regulator (IKNB) approved the ownership change on February 28, 2022. This is the first outside strategic shareholder BRI Life has taken on in this series' history - a bancassurance-style partnership rather than a straight equity sale, since BRI keeps majority control.

The Litigation Provision Flagged Last Quarter Actually Shrank

FY2021's post flagged BRI's allowance for pending lawsuits growing 72.7% YoY to Rp1,972,029 million by December 2021, well ahead of balance-sheet growth. This quarter, that same allowance fell to Rp1,601,487 million - an 18.8% decline in three months. Management's own note repeats the same going-concern-style language as before (these cases, mainly contract-compliance disputes, aren't expected to materially affect operations or financial position), and the provision is still well below 0.1% of total assets either way - but a single-quarter reversal this sharp, after a year of consistent growth, is worth noting as a reason the prior flag doesn't need carrying forward as an open concern.

Three New Multi-Year Technology Contracts Signed in Q1 2022

BRI's "Significant Agreements" note discloses three vendor contracts signed during the quarter that don't appear in the headline financials: a 21-month agreement with PT Deloitte Consulting for a "System Integrator Consultant for the Product Implementation Phase" (contract value Rp348,500 million), a 36-month agreement with PT Bringin Inti Teknologi for data-center switch procurement to support workload servers (Rp131,000 million), and a 29-month agreement with PT Telekomunikasi Seluler (Telkomsel) for 55,000 IoT SIM cards supporting EDC BRILink terminals (Rp157,905 million). Together with FY2021's disclosed SAP/BRIFIRST and CRM-infrastructure contracts (see FY2021's Beyond the Usual), these extend the same multi-year technology-investment pattern into 2022, with this quarter's additions leaning toward system integration and the BRILink agent-banking network's own connectivity infrastructure specifically.

Stock Price

BRI's stock closed at approximately Rp4,660.00 on March 31, 2022, up 13.4% from Dec 2021's Rp4,110.00 close - a normal single-quarter move. Over the trailing two years (April 2020-March 2022), though, the swing is much wider: shares bottomed near Rp2,481.78 in April 2020, during Indonesia's first Covid-19 quarter, then climbed to this quarter's own Rp4,660.00 close - a new two-year high and a ~87.8% trough-to-peak gain, wide enough to warrant its own section rather than folding straight into valuation. Unlike BBCA's own Q1 2022 post, which had to adjust its historical prices for an October 2021 stock split, BRI hasn't split its stock since 2017, so every price referenced above and in the valuation section below is directly comparable to prior quarters' own figures with no conversion needed.

Target Valuation Range

~14.6x P/E, ~2.59x P/B. Bottom line: BRI still trades meaningfully cheaper than BCA on both P/E and P/B, and the gap narrowed slightly this quarter even as BRI's own numbers were genuinely strong on a clean comparison basis - call it fairly-to-undervalued relative to BCA, with the CAR reversal above being the one thing worth confirming doesn't continue before reading this as a clean re-rating opportunity.

Annualizing Q1 2022's basic EPS of Rp80 (×4 = Rp320) against the Rp4,660.00 close gives a P/E^» of approximately 14.6x - down from FY2021's ~17.3x, which used the full year's actual (not annualized) EPS, so part of the apparent compression reflects that methodology difference rather than a pure re-rating; against Q1 2021's own ~17.9x annualized reading, the multiple is meaningfully cheaper on a like-for-like annualized basis even though the share price itself rose 16.5% over the same year.

Book value per share is approximately Rp1,796 (Rp272,274,732 million total equity attributable to owners ÷ 151,559,001,604 shares outstanding, unchanged since Q3 2021).

Market cap → book value	Q1 2022
Share price (period-end)	Rp4,660.00
Shares outstanding	151,559,001,604
Market capitalization	~Rp706,265B (~$49.15B, using this quarter's disclosed Rp14,369.00/USD rate)
Total equity attributable to owners (book value)	Rp272,275B
P/B»	~2.59x

Peer-multiple sanity check	FY2021	Q1 2022	Change
P/E»	~17.3x (full-year)	~14.6x (annualized)	✅ down - partly a methodology difference, partly a genuine cheaper read
P/B»	~2.16x	~2.59x	⚠️ up - share price's 13.4% QoQ gain outran the modest QoQ decline in book value per share

The same-quarter peer read is available directly: BBCA's own Q1 2022 post reported an annualized P/E of ~30.7x and a P/B of ~5.05x, using the same methodology - a gap of roughly 16.1x on P/E and 2.46x on P/B versus BRI's ~14.6x and ~2.59x. That's a narrower P/E gap than FY2021's ~11.3x reading (note: FY2021 used full-year, not annualized, EPS on both sides, so the two gap figures aren't perfectly comparable), but it's still a wide discount for a bank that just posted 78.1% YoY net income growth on a clean comparison basis against BCA's own 14.6% YoY growth this same quarter. Some of that gap is likely the market still pricing in integration-complexity risk from the Ultra Micro Holding merger and this quarter's CAR reversal (see Beyond the Usual) rather than BRI's underlying earnings trend.

A full DCF still isn't included here, for the same reasons every prior post in this series has given - the peer-multiple read above remains the more reliable lens until a longer run of genuinely clean, comparably-consolidated quarters builds up around this one.

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