Costs Outran Revenue, Not Credit Quality
BRI's Q1 2025 consolidated net income attributable to owners came in at Rp13,673,245 million, down 13.93% YoY from Q1 2024's Rp15,885,516 million - the kind of decline that, in this series, has usually tracked a credit-quality problem. Not this time. Consolidated gross NPL» actually improved 14 basis points YoY to 2.97%, and Credit Cost improved 30 basis points YoY to 3.53% (down from Q1 2024's 3.83%, as flagged at the time) - both moving in BRI's favor, not against it. If credit quality got better and profit still fell double digits, something else did the damage.
That something is cost. Net revenue (Net Interest and Net Premium Income, net) was essentially flat YoY, down 0.38% to Rp36,917,403 million against a restated Q1 2024 comparative (see Beyond the Usual below on that restatement). Total Operating Expense, meanwhile, grew 11.7% YoY to Rp20,544,145 million - Salaries and Employee Benefits up 11.0%, and a smaller "Others" opex line up 44.9% YoY. Profit from Operations fell 12.04% as a result, and that gap - flat revenue against double-digit cost growth - is nearly the entire story of this quarter's profit decline, not a deterioration in the loan book. Operating expenses growing faster than revenue is the actual driver here, and it deserves more scrutiny than the credit metrics that usually carry this section.
The Prescription
BRI should treat this quarter's opex growth as the headline problem to solve, not a footnote to a credit story that didn't actually happen. An 11.7% YoY jump in operating expense against roughly flat net revenue is a cost-discipline issue management can act on directly - unlike credit quality, which depends on the broader economy and the loan mix BRI already wrote years ago. The "Others" operating-expense line growing 44.9% YoY, on a base too small to be commented on in the presentation at all, is exactly the kind of line that should get its own explanation in future guidance rather than being absorbed silently into "Total Operating Expense."
What BRI should stop doing: distributing an ever-rising share of profit as dividends while its own capital ratios visibly wobble as a result. Bank-only Total CAR» fell from 24.41% to 21.55% in a single quarter - a nearly 3-point drop - largely on the FY2024 dividend distribution that pushed the payout ratio to roughly 86% of profit, up from 85% the year before. BRI remains comfortably above its regulatory minimum either way, but a bank that keeps raising its payout ratio while loan growth (5.0% YoY) already sits below its own FY2025 guidance band has less room to fund that growth from retained capital next time it actually needs to.
Key Financial Metrics
Three months ended March 31, 2025 vs. three months ended March 31, 2024, consolidated, as filed
FX: approximately Rp16,560 = USD 1 as of March 31, 2025, derived from BRI's own foreign-currency commitment translations disclosed in its financial statement notes (no single consolidated spot rate is stated elsewhere in the filing).
| Metric | Q1 2025 (IDR) | Q1 2025 (USD) | Q1 2024 (IDR) | YoY |
|---|---|---|---|---|
| Net Interest and Net Premium Income, net ("Net Revenue" equivalent) | Rp36,917,403M | ~$2,230M | Rp37,058,306M* | ⚠️ -0.38% |
| Operating Income (Profit from Operations) | Rp17,621,841M | ~$1,065M | Rp20,033,630M | ⚠️ -12.04% |
| Net Income (attributable to owners) | Rp13,673,245M | ~$826M | Rp15,885,516M | ⚠️ -13.93% |
| Net Income (total consolidated, incl. non-controlling interests) | Rp13,804,029M | ~$834M | Rp15,982,588M | ⚠️ -13.63% |
| EPS (basic, attributable to owners, quarterly) | Rp91 | ~$0.0055 | Rp105 | ⚠️ -13.33% |
| Impairment for financial assets | Rp12,638,574M | ~$763M | Rp12,007,013M | ⚠️ +5.26% (higher is worse) |
| Total Operating Expense | Rp20,544,145M | ~$1,241M | Rp18,400,895M | ⚠️ +11.66% (higher is worse) |
*Restated by BRI's own Note 52 - see Beyond the Usual below.
Balance sheet: March 2025 vs. December 2024 (QoQ) and March 2024 (YoY), consolidated, as filed
| Balance sheet metric | Mar 2025 (IDR) | Mar 2025 (USD) | Dec 2024 (IDR) | QoQ | Mar 2024 (IDR) | YoY |
|---|---|---|---|---|---|---|
| Total Assets | Rp2,098,229B | ~$126,706M | Rp1,992,983B | ✅ +5.28% | Rp1,989,074B | ✅ +5.49% |
| Total Loan & Financing (gross, incl. subsidiaries) | Rp1,373,700B | ~$82,952M | Rp1,354,600B | ✅ +1.41% | Rp1,308,700B | ✅ +4.97% |
| Total Deposits (Third Party Funds) | Rp1,421,600B | ~$85,845M | Rp1,365,450B | ✅ +4.11% | Rp1,416,213B | ⚠️ +0.39% (essentially flat) |
| Total Equity (attributable to owners) | Rp299,611B | ~$18,090M | Rp317,094B | ⚠️ -5.51% | Rp292,997B | ✅ +2.26% |
| Total Cash and Cash Equivalents (per cash flow statement, period-end) | Rp265,314B | ~$16,023M | Rp205,328B | ✅ +29.21% | Rp187,994B | ✅ +41.13% |
Total Equity's QoQ drop is the FY2024 final dividend distribution (see The Prescription above). Total Cash's large jump QoQ and YoY reflects deliberate liquidity frontloading ahead of Ramadan/Eid withdrawals, per management's own commentary (see Key Operational Metrics below). Deposits barely grew YoY at all - the weakest annual deposit growth this series has recorded for BRI.
Key Operational Metrics
Consolidated unless stated; per BRI's own filed financial-ratio notes and investor presentation
- CASA»: 65.8% (Mar 2025) vs Dec 2024's 67.3% ⚠️ but 61.7% (Mar 2024) ✅ - down QoQ on the usual Q1 dividend/pre-Ramadan funding frontload management flagged, still well up YoY.
- Loan-to-Deposit Ratio (LDR)», consolidated (bank entity): 86.0% (1Q25) vs FY2024's 88.85% ✅ - management's own framing is "liquidity frontloading in 1Q25 drove decline in LDR to a healthy 86%," a genuine easing of the funding pressure that dominated recent quarters.
- Net Interest Margin (NIM)», consolidated cumulative guidance basis: 7.68% (1Q25), inside BRI's FY2025 7.3%-7.7% guidance band, but at the very top of it and down from FY2024's 7.74%. Note BRI changed its NIM calculation methodology starting January 2025 (monthly average earning assets excluding non-interest-generating assets), so this isn't strictly comparable to pre-2025 NIM figures on a like-for-like basis.
- Cost of Funds (CoF), consolidated, quarter-alone: approximately 3.5% (1Q25) vs approximately 3.6% (1Q24) ✅ - modestly cheaper funding YoY.
- NPL ratio - gross, consolidated: 2.97% (1Q25) vs Dec 2024's 2.78% ⚠️ but 3.11% (1Q24) ✅ - worse QoQ (seasonal, typical for BRI's Q1), still an improvement YoY and inside the FY2025 "<3%" guidance band, near its ceiling.
- NPL ratio - net, consolidated: 0.84% (1Q25) vs 0.70% (Dec 2024) ⚠️.
- CAR» (Total, bank-only): 21.55% (Mar 2025), down sharply from Dec 2024's 24.41% ⚠️ - see The Prescription above; consolidated Total CAR eased similarly, to 24.03% from FY2024's 26.63%, still comfortably above regulatory minimums.
- Cost to Income Ratio (CIR), consolidated cumulative guidance basis: 40.73% (1Q25), inside and below the FY2025 41%-43% band, improved from FY2024's 41.59% ✅ - notably, this improvement happened in the same quarter operating expense grew 11.7% YoY, because total income (interest plus fee income) also grew enough to keep the ratio itself favorable even as the absolute cost figure worsened the profit line.
- Credit Cost, consolidated cumulative guidance basis: 3.53% (1Q25), above the FY2025 3.0%-3.2% band - the guidance line BRI has now missed on the high side in 5 of the last 6 quarters reported in this series - but down from Q1 2024's 3.83%, a genuine YoY improvement even while missing this year's tighter target range.
- Dividend payout ratio: approximately 86% of FY2024 profit (Rp343/share, including a Rp135/share interim tranche paid Jan 15, 2025 and the balance paid April 23, 2025), up from approximately 85% the year before.
Business Lines: Loan Growth and Credit Quality
Consolidated, Q1 2025 vs. Q1 2024, per BRI's own investor presentation - the same five-way Micro/Consumer/Small/Medium/Corporate scale used since [9M 2023](/analysis/bbri/2023-09/#business-lines-loan-growth-and-credit-quality)
Micro loans grew just 1.5% YoY (Rp622.6 trillion to Rp632.2 trillion), decelerating further from FY2024's already-slow 2.7%. NPL worsened again, to 3.36% from 2.69% a year earlier - a full 67-basis-point deterioration, extending the segment's now multi-quarter pattern of slowest growth paired with worsening credit quality.
Consumer grew 8.8% YoY (Rp194.0 trillion to Rp210.9 trillion), continuing its run as BRI's most consistently well-behaved segment. NPL improved to 2.02% from 2.20% - still the only segment combining solid growth with genuinely improving credit quality this quarter.
Small grew 0.8% YoY (Rp234.6 trillion to Rp236.6 trillion), a modest return to positive territory after FY2024's outright 0.7% contraction. NPL improved meaningfully, to 4.67% from 5.44% a year earlier - a genuine repair, though Small remains BRI's worst-performing segment by NPL level even after the improvement.
Medium grew 21.1% YoY (Rp38.3 trillion to Rp46.3 trillion), still BRI's fastest-growing segment, though decelerating slightly from FY2024's 21.6%. NPL worsened to 2.49% from 2.21% - a modest but notable crack in what had been BRI's best-performing segment by credit quality.
Corporate grew 13.0% YoY (Rp219.2 trillion to Rp247.6 trillion), decelerating from FY2024's 23.6% but still comfortably BRI's second-fastest-growing segment. NPL improved sharply, from 3.33% to 2.36% - the single largest credit-quality improvement of any segment, and per management's own deck, the segment "leading" the consolidated NPL improvement this quarter.
Segment Comparison
Consolidated total loan growth came in at 5.0% YoY, already below BRI's own FY2025 7%-9% guidance band one quarter into the year. Growth stayed highly uneven: Medium (+21.1%) and Corporate (+13.0%) drove nearly all of it, while Micro grew just 1.5% and Small managed only 0.8%. Credit quality moved in a genuinely bifurcated way this quarter, not a uniform improvement or decline: Corporate (-97bps) and Small (-77bps) both improved sharply, while Micro (+67bps) and Medium (+28bps) both worsened. The consolidated NPL improvement management highlighted (14bps YoY, "led by Corporate") is real, but it masks the fact that BRI's two smallest-ticket lending segments - Micro and Medium - are moving the wrong way on credit quality even as the bank's larger-ticket lending gets cleaner. Micro in particular has now worsened on NPL for five straight quarters this series has tracked, while also being the slowest-growing segment in four of those five - the one part of BRI's book showing no sign of turning either way.
Beyond the Usual
This quarter's source documents are BRI's unaudited interim consolidated financial statements for the three months ended March 31, 2025 and its Q1 2025 investor presentation.
A Prior-Year Comparative Was Quietly Reclassified Again
BRI's own Note 52 reclassifies Rp532,466 million from fee/other income into Interest and Sharia income - net for the Q1 2024 comparative period shown in this filing, without a detailed explanation of what specifically moved or why. This is the same kind of unexplained restatement of a prior comparative this series has flagged before (Dec 2023's NPL Coverage Ratio was restated the same way in the FY2024 post) - a reader comparing this quarter's net revenue figure against the originally-reported Q1 2024 number (Rp36,514,230 million, as filed in Q1 2024's own post) would see a materially different YoY growth rate than comparing against this quarter's own restated comparative.
Core Capital Fell Nearly 3 Points in a Single Quarter on the Dividend Payout
Bank-only CET1[»](/glossary/#car) and Tier 1 capital ratios both fell from 23.28% to 20.42% between December 2024 and March 2025, and Total CAR fell from 24.41% to 21.55% - a nearly 3-percentage-point drop in a single quarter, driven by the FY2024 dividend distribution (paid in two tranches, Rp135/share in January and the remaining Rp208/share in April) reducing retained earnings just as risk-weighted assets grew 5.03% QoQ. BRI remains well above its 9%-10% regulatory minimum either way, but this is the sharpest single-quarter capital-ratio move this series has recorded for BRI outside a genuinely new capital-raising event.
Related-Party Asset Concentration Ticked Back Up After Three Years of Decline
Related-party assets stood at 17.33% of total consolidated assets at Q1 2025, up from roughly 17.02% at FY2024 close - reversing a decline this series had tracked for three straight years. The move is modest and not yet a clear trend reversal on one quarter alone, but it's worth watching given how consistently the prior direction had been down.
Third-party notional guarantee and letter-of-credit exposure (excluding undrawn loan facilities) fell to Rp35,588,821 million from Rp37,438,602 million at December 2024 - a 4.9% QoQ decline driven mostly by Rupiah-denominated bank guarantees issued (Rp26,532,582 million to Rp24,012,719 million, -9.5%), even as Rupiah irrevocable import letters of credit grew the other way (Rp1,223,304 million to Rp1,479,678 million, +20.9%) - a modest mix shift within BRI's contingent-liability book rather than an overall change in scale.
BRI's restructured loan book shrank to Rp86,727,240 million from Rp89,423,291 million at December 2024, and its worst ("Macet"/Loss) collectibility tier within that book shrank fastest of all, from Rp9,219,528 million to Rp7,941,078 million (-13.9%) - a genuine improvement in the quality of BRI's own restructured-loan population, not just its size, in the same quarter BBCA's own Q1 2025 post reported the opposite pattern (a restructured book that jumped 17.8% QoQ with its worst tier growing too).
BRI raised its FY2024 dividend payout ratio to approximately 86% of profit, up from roughly 85% the year before - a small but real increase in how much of BRI's earnings are being distributed rather than retained, directly connected to this quarter's sharp capital-ratio decline above.
Stock Price: A Round Trip Through a 45% Swing
BRI's shares closed Q1 2025 at Rp4,050, down just 0.74% QoQ from December 2024's Rp4,080 close - a deceptively quiet-looking number for a quarter that actually saw the stock fall as low as Rp3,360 in February 2025 before partially recovering. Measured from Q1 2024's own two-year peak of Rp6,125, the trough at Rp3,360 represents a 45.1% peak-to-trough decline over the trailing two years - the sharpest drawdown this series has recorded for BRI, and roughly 11 percentage points steeper than FY2024's own year-end read of the same selloff (33.4% peak-to-trough at that point). The stock then rebounded 20.5% from the February low to close the quarter at Rp4,050 - a partial recovery, not a reversal of the broader multi-quarter decline that had already cut roughly a third of the value off BRI's shares by the end of 2024. Year-over-year, the stock is down 33.1% from Q1 2024's Rp6,050 close. None of this quarter's own fundamentals collapsed in a way that would explain a swing this size on its own - the move reads more like a continuation of the broader re-rating of Indonesian bank valuations already underway before this quarter started, rather than a reaction to anything specific in BRI's own Q1 2025 results.
Target Valuation Range
~10.57x P/E, ~2.05x P/B. Bottom line: BRI still looks meaningfully cheaper than BCA on both P/E and P/B, and the gap widened again this quarter - but with loan growth already below FY2025 guidance and profit falling on cost growth rather than credit quality, the discount continues to read as the market pricing in real execution risk rather than a clean value opportunity.
Trailing-twelve-month EPS of approximately Rp383 (FY2024's Rp397, plus Q1 2025's Rp91, minus Q1 2024's Rp105) against the Rp4,050 close gives a P/E» of approximately 10.57x - up modestly from FY2024's ~10.28x, since the share price fell less this quarter (-0.74% QoQ) than trailing EPS did (-3.5%).
Book value per share is approximately Rp1,977 (Rp299,611,337 million total equity attributable to owners ÷ 151,559,001,604 shares outstanding, unchanged since Q3 2021).
| Market cap → book value | Q1 2025 |
|---|---|
| Share price (period-end) | Rp4,050.00 |
| Shares outstanding | 151,559,001,604 |
| Market capitalization | ~Rp613,814B (~$37.07B, using ~Rp16,560/USD) |
| Total equity attributable to owners (book value) | Rp299,611B |
| P/B» | ~2.05x |
| Peer-multiple sanity check | FY2024 | Q1 2025 | Change |
|---|---|---|---|
| P/E» | ~10.28x | ~10.57x | ⚠️ up modestly - share price fell less this quarter (-0.74% QoQ) than trailing EPS did (-3.5%) |
| P/B» | ~1.95x | ~2.05x | ⚠️ up - book value per share fell faster than the share price on the dividend-driven equity decline |
BBCA's own Q1 2025 post reported a trailing P/E of ~18.7x and a P/B of ~4.25x - a gap to BRI's ~10.57x and ~2.05x of roughly 1.8x on P/E and 2.1x on P/B, both gaps modestly narrower than FY2024's ~2.1x and ~2.3x as BCA's own multiples compressed faster than BRI's this quarter. The narrowing isn't a signal that BRI's own risk profile improved - it's mostly BCA's multiple coming down to meet a wide gap that had opened up over 2024.
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.
PT Bank Rakyat Indonesia (Persero) Tbk's unaudited interim consolidated financial statements as of March 31, 2025 and for the three-month period then ended, and its Q1 2025 investor presentation.