Cost Discipline Carried the Quarter, Not Revenue
Over these 12 quarters: share price Rp5,725 to Rp3,140 (-45%); profit before tax 20.7 to 21.0 Rp trillion; profit before tax margin 60.3% to 55.6%. One graph in actual numbers: bars are the quarter's profit before tax, over them the share price at quarter-end (left axis) and the profit before tax margin (right axis); each line is fitted to its own range, so read the timing, not the heights. Prices are adjusted for splits.
BRI's standalone third-quarter net interest and insurance income actually shrank slightly from a year earlier, yet net income attributable to owners still grew 16% - because operating costs fell and loan-loss provisions dropped faster than revenue did. Indonesian press covered the nine-month results as a straightforward beat: approximately Rp48.2 trillion in profit, up 16.8% year-over-year, loan growth running at 14.5%. What that headline skips is where the profit actually came from: net interest and insurance income, this post's net-revenue equivalent for BRI, fell rather than grew, on this quarter's own restated comparator. Pre-provision operating profit still rose, because non-interest income (including gold sales) grew and expenses fell; provision expense fell too.
A second thread runs through this quarter's own materials: bank-only capital adequacy, which fell for three straight quarters and was the subject of last quarter's Prescription, finally rose - not because the bank slowed its risk-weighted growth, but because it simply didn't pay a dividend this quarter.
Net Revenue Fell Even as Pre-Provision Profit and Net Income Rose
Standalone Q3 2026 net interest and insurance income came in at Rp37,814,138 million, down 1.17% from the Rp38,263,481 million this quarter's own filing restates Q3 2025 to. The Rp111,975,160 million Sep-2025 nine-month total behind that figure is itself unchanged from what BRI's original Q3 2025 report showed for the same period; the gap instead comes from the H1 2025 base this subtraction uses, which two later quarters' own comparative columns restated by a net Rp437,107 million - Q1 2025 restated down to Rp36,263,215 million in Q1 2026's post from the Rp36,917,403 million originally filed, and Q2 2025 restated up to Rp37,448,464 million in Q2 2026's post from the Rp36,357,169 million originally filed - none of it restated by this quarter's own filing. The figure printed in Q3 2025's own post, Rp38,700,588 million, used that earlier, unrestated H1 base - a comparative restatement carried over from two earlier quarters, not a new decline on top of an old one. Interest income itself grew a modest 3.95% YoY to Rp54,871,000 million, but interest expense grew faster, 16.4% YoY to Rp17,546,000 million, as the bank funded faster loan growth; net interest income came out 1.04% lower YoY as a result. BRI's own Q3 2024 post recorded a standalone net-revenue decline too, on that quarter's own narrower revenue definition - this quarter's decline isn't unprecedented, though this post hasn't re-checked every covered quarter for the same pattern.
Profit grew anyway. Pre-provision operating profit (PPOP») rose 7.08% YoY to Rp30,401,000 million, because non-interest operating income (which includes gold-trading income) grew 9.95% YoY to Rp14,277,000 million and total operating expenses fell 5.12% YoY to Rp21,690,000 million - personnel costs were roughly flat (-0.35%) and other expenses dropped 50.37%, even as general and administrative costs rose 14.26%. Provision expense fell a further 9.90% YoY to Rp9,302,000 million, consistent with the credit-cost improvement below. Profit before tax rose 15.93% YoY to Rp21,007,053 million, and net income attributable to owners (BRI's own label is PATMI, profit attributable to majority interest) rose 16.01% YoY to Rp16,823,595 million - a derived EPS of approximately Rp111, up from approximately Rp96 a year earlier. None of this quarter's profit growth required the bank's core lending-and-insurance income to actually grow; it required the rest of the P&L to do more with less.
The Capital Ratio That Fell for Three Straight Quarters Just Rose
Bank-only capital adequacy ratio (CAR») rose to 20.62% at September 30, 2026, up from Q2 2026's 19.35% - the first quarterly increase after three straight declines (FY2025's 21.06%, Q1 2026's 20.71%, Q2 2026's 19.35%), though still 239 basis points below a year earlier (23.01%). Consolidated CAR followed the same shape: 23.0% this quarter versus 21.5% in Q2 and 25.4% a year ago. The reason isn't a slowdown in risk-weighted growth - Commercial and Corporate, the two capital-hungriest segments, kept growing fast (see below) - it's that the filed statement shows essentially no additional 2026 dividend was deducted from retained earnings between June and September (cumulative 2026 dividends held at approximately Rp52.1 trillion at both quarter-ends), after Q2's own filing showed roughly Rp31.5 trillion paid out in that single quarter. Total equity attributable to owners rose 5.26% quarter-over-quarter to Rp338,860 billion as a result, reversing Q2's dividend-driven decline. A capital ratio that recovers because a dividend wasn't paid, rather than because growth slowed or earnings were retained at a materially higher rate than usual, is a timing effect worth watching next quarter rather than a resolved trend - see The Prescription.
The Prescription
BRI should keep leaning into Commercial and Corporate growth now that it has the capital headroom back - bank-only CAR's rise to 20.62% means the bank isn't currently capital-constrained the way it looked three months ago, and Corporate's own credit quality kept improving even as it grew 38.3% YoY (NPL down to 1.19% from 1.59%). Pulling back on the segments actually working, just because the capital ratio dipped for a few quarters and has now partly recovered, would be reacting to a number rather than to the underlying risk.
What BRI should stop doing: leaving its own FY2026 loan-growth guidance band sitting unrevised at 8%-10% for a second straight quarter while 9M26 actual growth runs at 14.5% - roughly 45% above the top of that band. Last quarter this post criticized BRI for revising its original 7%-9% band up by only one point at each end after blowing through it; this quarter the bank didn't even revise the already-stale 8%-10% band, despite the gap widening further. A guidance number that management stops updating once it's obviously wrong isn't guidance anymore - it's a historical artifact the bank is choosing not to clean up.
Key Financial Metrics
Rp trillion; margin is profit before tax as a percent of net revenue, per quarter.
Single quarter ended September 30, 2026 vs. single quarter ended September 30, 2025 (both derived by subtracting each year's already-filed H1 cumulative statement from that year's 9M cumulative filed statement, cross-checked against the Sep 2026 presentation's own disclosed 3Q26 and 3Q25 columns), consolidated
FX: approximately Rp17,875.00 = USD 1 as of September 30, 2026, per BRI's own filing footnote (versus Rp16,665.00 = USD 1 a year earlier - the Rupiah weakened roughly 7.26% against the US Dollar over the year, but moved less than 0.1% since Q2 2026's Rp17,880.00 rate).
| Metric | Q3 2026 (IDR) | Q3 2026 (USD) | Q3 2025 (IDR) | YoY |
|---|---|---|---|---|
| Net Interest and Net Insurance Services Income ("Net Revenue" equivalent) | Rp37,814,138M | ~$2,115M | Rp38,263,481M | -1.17% |
| Operating Income (Profit before tax) | Rp21,007,053M | ~$1,175M | Rp18,119,365M | +15.93% |
| Net Income (attributable to owners, PATMI) | Rp16,823,595M | ~$941M | Rp14,502,109M | +16.01% |
| EPS (basic, attributable to owners, derived) | ~Rp111 | ~$0.0062 | ~Rp96 | +16.01% (shares outstanding unchanged since 2021, so EPS growth mirrors net income growth) |
Balance sheet: September 2026 vs. June 2026 (QoQ) and September 2025 (YoY), consolidated, as filed, total equity on an attributable-to-owners basis throughout
| Balance sheet metric | Sep 2026 (IDR) | Sep 2026 (USD) | Jun 2026 (IDR) | QoQ | Sep 2025 (IDR) | YoY |
|---|---|---|---|---|---|---|
| Total Assets | Rp2,337,595B | ~$130,775M | Rp2,352,381B | -0.63% | Rp2,123,447B | +10.09% |
| Total Loan & Financing (incl. subsidiaries, per BRI's own presentation) | Rp1,647,123B | ~$92,145M | Rp1,645,533B | +0.10% | Rp1,438,109B | +14.53% |
| Total Deposits (Third Party Funds) | Rp1,651,317B | ~$92,379M | Rp1,580,682B | +4.47% | Rp1,474,783B | +11.97% |
| Total Equity (attributable to owners) | Rp338,860B | ~$18,958M | Rp321,923B | +5.26% | Rp331,191B | +2.32% |
| Total Cash and Cash Equivalents (per cash flow statement, period-end) | Rp171,435B | ~$9,590M | Rp197,014B | -12.98% | Rp192,333B | -10.86% |
Equity rose QoQ, reversing [Q2 2026's decline](/analysis/bbri/2026-06/#key-financial-metrics): cumulative 2026 dividends deducted from retained earnings held at approximately Rp52.1 trillion at both June and September's close, meaning essentially no new dividend was paid in Q3 - a reversal of Q2's own roughly Rp31.5 trillion single-quarter payout. Total cash fell both QoQ and YoY, continuing the multi-quarter drawdown funding loan growth.
Where Q3 2026's Revenue Went
Net revenue, and how much of it was left as operating profit and net income, in one view. Figures are the same standalone-quarter figures as the metrics table.
Rp trillion, Q3 2026. Operating costs are net revenue less profit before tax; tax & other items are profit before tax less net income.
Key Operational Metrics
Bank-only (individual), cumulative nine months ended September 30, unless noted - per BRI's own filed "Calculation of Financial Ratios" statement. No transcript or press release was filed alongside this quarter's financial statements. Arrow = the way the number moved against the year-earlier period; green = good for the bank, red = bad.
- Capital Adequacy Ratio (CAR)»: 20.62% (9M26), down from 23.01% (9M25) even though it rose from Q2 2026's 19.35% (1H26) - the first quarterly rise after three straight declines (see above), but not yet enough to close the year-on-year gap.
- Gross NPL»: 3.07% (9M26), down from 1H26's 3.15% and from 3.29% (9M25) - a second straight period of improvement.
- Net NPL: 1.00% (9M26) vs 1.04% (9M25).
- Net Interest Margin (NIM)»: 6.16% (9M26), down from 1H26's 6.40% and from 6.53% (9M25) - the multi-quarter NIM compression continued, as loan yield moderated roughly 98 basis points YoY on the shift toward lower-yielding Corporate and Retail loans even as funding costs also fell.
- Operating Expenses to Operating Income (BOPO»): 70.64% (9M26), an improvement from 71.89% (9M25) but a deterioration from 1H26's 69.56%.
- Cost to Income Ratio (CIR»): 38.52% (9M26) vs 1H26's 35.49% and 38.68% (9M25).
- Return on Asset (ROA», pre-tax basis): 3.22% (9M26) vs 3.20% (9M25).
- Return on Equity (ROE», average-equity basis): 18.13% (9M26) vs 1H26's 18.50% and 16.48% (9M25).
- Loan to Deposit Ratio (LDR)»: 88.22% (9M26) vs 1H26's 91.30% and 87.05% (9M25) - eased sequentially from 1H26 as deposits caught up with loan growth somewhat, though still tighter than a year earlier.
- CASA Ratio» (bank-only, period-end): 70.2% (Sep 2026), up from Jun 2026's 67.8% and from 67.9% (Sep 2025).
BRI Group's Own 2026 Guidance Scorecard
Consolidated basis, per BRI's own investor presentation, 9M26 actual vs. 2026 guidance
- Loan Growth: 14.5% actual vs. 8%-10% guidance (the band revised up from 7%-9% last quarter) - Exceed, by roughly 45% above the top of the band. The band itself was not revised again this quarter (see The Prescription).
- NIM: 7.4% actual vs. 7.4%-7.8% guidance - Inline.
- Credit Cost: 2.8% actual vs. 2.9%-3.2% guidance - Exceed.
- CIR: 40.0% actual vs. 41%-43% guidance - Exceed.
Growth Stayed Concentrated in Commercial and Corporate, Again
BRI's five reported loan segments - Micro, Consumer, SME, Commercial, and Corporate - kept the same shape Q2 2026's post and Q1 2026's post both flagged: the segments carrying the consolidated growth beat aren't the segments BRI's own franchise identity is built around, though the concentration eased slightly this quarter.
- Micro (BRI's traditional core franchise, consolidated, on the KUR-Small-reclassified base BRI adopted since January 2026): loan outstanding of Rp707.5 trillion, up 5.7% YoY (Rp38.1 trillion added) - still among the slowest of the five segments - while bank-only Micro NPL ticked up to 3.93% from 3.84% a year earlier. On a bank-only basis (excluding the consolidated subsidiaries that inflate the consolidated growth number), BRI's own presentation states Micro loans grew just 0.3% YoY (Rp1.7 trillion added) - which the bank's own materials describe as a return to positive YoY growth for the first time since December 2024, attributed to recovering disbursements and a quarter-on-quarter acceleration from 0.7% in Q2 to 1.2% in Q3.
- Consumer: Rp242.9 trillion, up 9.0% YoY (Rp20.0 trillion added), with bank-only NPL rising modestly to 2.57% from 2.50% - still one of the cleaner segments by credit quality.
- SME: Rp218.6 trillion, up 6.6% YoY (Rp13.6 trillion added), with bank-only NPL improving to 4.80% from 5.53% a year earlier - a continued bright spot in BRI's historically weakest-credit-quality segment.
- Commercial: Rp80.7 trillion, up 51.1% YoY (Rp27.3 trillion added) - still the fastest-growing segment by rate - while bank-only NPL worsened to 4.04% from 2.30% a year earlier, though this is an improvement from Q2 2026's own 4.4% on a cumulative basis.
- Corporate: Rp397.5 trillion, up 38.3% YoY (Rp110.1 trillion added) - the largest single source of incremental growth in absolute terms - while bank-only NPL improved further to 1.19% from 1.59% a year earlier, continuing to prove growth and improving credit quality aren't mutually exclusive in this one segment.
Consolidated total loan and financing grew 14.5% YoY to Rp1,647.1 trillion (Rp209.0 trillion added), and Commercial plus Corporate combined added Rp137.4 trillion of that - roughly 65.7% of the total increase, a smaller share than Q2 2026's roughly 69% but still the large majority. The composition is easing slightly, not reversing.
Beyond the Usual
This quarter's source documents are BRI's condensed OJK-format published financial report for the nine months ended September 30, 2026 and BRI's own investor presentation - no transcript or press release was filed alongside them. The condensed financial statement itself carries no discursive footnotes to mine this quarter (as in several prior quarters), so the findings below draw on the statement of commitments and contingencies, the related-party disclosure, and the presentation's own risk, subsidiary, and regulatory-update slides.
BRI Has Mapped Rp10.3 Trillion of El Niño-Related Exposure, With Most of It Expected to Stay Out of Non-Performing Territory
BRI's own presentation discloses that it has mapped approximately Rp10.3 trillion of potential exposure to an El Niño weather event and prepared mitigation measures - closer borrower monitoring, early-warning indicators, loan restructuring where needed, collateral liquidation, and insurance claims - while estimating that only around 10% of that exposure may actually migrate into Loan at Risk[»](/glossary/#lar) (LaR), a broader asset-quality gauge than Non-Performing Loan[»](/glossary/#npl) that also counts loans showing early signs of stress. The presentation cites the 2023-24 El Niño episode as precedent, noting it contributed to a 17.5% YoY decline in rice output and 10.33% YoY food-price inflation between January and April 2024. This is a specific, quantified forward-risk disclosure rather than a vague caveat, and it is worth tracking against actual asset-quality readings in the Micro and Agribusiness-exposed segments over the next few quarters, since management's own 10% migration estimate is itself an estimate, not a result.
The Outstanding FX Derivative Position Fell This Quarter, Reversing Two Quarters of Growth
Outstanding sales positions on spot and derivative transactions (a commitment-payable line, not an on-balance-sheet liability) fell to Rp215,162,305 million at quarter-end, down 9.46% from [Q2 2026's Rp237,659,535 million](/analysis/bbri/2026-06/#outstanding-fx-derivative-positions-grew-sharply-on-both-sides-of-the-book), a reversal after rising in each of the last two quarters this post has tracked ([FY2025 to Q1 2026, and Q1 to Q2 2026](/analysis/bbri/2026-06/#outstanding-fx-derivative-positions-grew-sharply-on-both-sides-of-the-book)) - though still up 36.9% from FY2025's Rp157,153,569 million. The offsetting purchase-position line also eased slightly, to Rp111,224,594 million from Q2's Rp114,875,021 million (still nearly double FY2025's Rp57,618,468 million), narrowing the gap between the two sides to Rp103.9 trillion from Q2's Rp122.8 trillion. The filed statement still doesn't disclose the underlying exposure being hedged, so this remains a pattern to watch rather than something whose size can be independently assessed, but the direction this quarter is toward a smaller book on both sides, not a larger one.
Related-Party Non-UMKM Lending Fell a Further 69% Year-Over-Year
Related-party Non-UMKM loans (Rupiah) fell to Rp419,682 million at quarter-end from Rp1,353,352 million a year earlier - a 69.0% YoY decline - continuing the multi-year shrinking-related-party-book trend FY2023's post first flagged. The filed statement doesn't explain whether this reflects specific loans being repaid, reclassified, or simply not renewed, but the direction keeps pointing the same way it has for several years running.
Non-Bank Subsidiaries Contributed 24.4% of Consolidated Net Profit This Quarter
BRI's own presentation states that its subsidiaries - including Pegadaian (99.99%-owned, which the deck describes as the leader in pawn lending with a market share of more than 95%) and PNM (99.99%-owned, described as a national leader in community-based lending) - contributed 24.4% of BRI Group's consolidated net profit this quarter. That is a meaningful share of the group's bottom line coming from non-bank lending arms rather than the bank entity itself, a reminder that "BRI" as a consolidated reporting entity is a materially broader business than the Micro/Consumer/SME/Commercial/Corporate loan book discussed above.
Two Regulatory Changes Landed This Quarter: a Liquidity Incentive Expansion and an Amended Financial-Sector Law
BRI's presentation flags two regulatory developments from the quarter. Bank Indonesia increased its Macroprudential Liquidity Incentive (an incentive that effectively reduces the reserve requirement for banks that lend to priority sectors) from 400 to 500 basis points effective April 2025, and raised the maximum total incentive to 6.0% of third-party funds effective September 1, 2026; separately, the average Rupiah reserve requirement itself is set to step down to 8% in November 2026 and 7% in December 2026. On the legal side, Law No. 4 of 2026 formally enacted amendments to the P2SK financial-sector law, elevating the Deposit Insurance Corporation (LPS) to an independent state institution with its operations directly approved by Indonesia's parliament, expanding the OJK's mandate to supervise commodity and mineral exchanges and broader public-fund management, and adding new tax incentives aimed at MSME credit access. Neither change is specific to BRI, but both touch the funding-cost and regulatory environment this post has tracked across several quarters.
Stock Price
BRI's shares closed Q3 2026 at Rp3,140, up 15.02% QoQ from Q2 2026's Rp2,730 close - a gain after two straight quarterly declines, each to a successive two-year low (Q1 2026's Rp3,330, then Q2 2026's Rp2,730) - but still down 19.49% YoY from Q3 2025's Rp3,900 close. Measured over the trailing two years ending at this quarter (October 2024 through September 2026), the stock ranged from an October 2024 close of Rp4,800 to Q2 2026's own Rp2,730 low - a 43.1% peak-to-trough decline on month-end closes - a smaller swing than Q2 2026's post reported (47.0%), because that quarter's own two-year window still included August 2024's higher Rp5,150 close, which has since rolled out of the window, and because the price has partly recovered off its own low. This quarter's Rp3,140 close sits above April through July 2026's month-end closes (Rp2,990, Rp2,950, Rp2,730 and Rp3,040) but below January through March's (Rp3,810, Rp3,910 and Rp3,330) and August's Rp3,250 - a partial recovery, not a return to the range the stock traded in earlier this year.
Target Valuation Range
Verdict: cheaper than peers BCA and ICICI on both multiples, and in the same range as peer Mandiri. At ~7.49x trailing P/E and ~1.40x P/B, BRI sits below BCA's ~12.6x P/E and ~2.6x P/B and below ICICI's ~16.0x P/E and ~2.63x P/B, but both of BRI's own multiples rose from Q2 2026's ~6.76x and ~1.29x as the share price recovered faster than trailing earnings or book value grew.
Trailing-twelve-month net income attributable to owners of approximately Rp63,562,571 million (standalone Q4 2025's Rp15,873,574M + Q1 2026's Rp15,492,710M + Q2 2026's Rp15,372,692M + Q3 2026's Rp16,823,595M) against the Rp3,140 close and 151,559,001,604 shares outstanding gives a trailing EPS of approximately Rp419.4, and a P/E» of approximately 7.49x - up from Q2 2026's ~6.76x, as the 15.02% QoQ share-price recovery outpaced trailing earnings growth.
Book value per share is approximately Rp2,236 (Rp338,859,579 million total equity attributable to owners ÷ 151,559,001,604 shares outstanding, unchanged since Q3 2021).
| Market cap → book value | Q3 2026 |
|---|---|
| Share price (period-end) | Rp3,140.00 |
| Shares outstanding | 151,559,001,604 |
| Market capitalization | ~Rp475,895B (~$26.62B, using ~Rp17,875.00/USD) |
| Total equity attributable to owners (book value) | Rp338,860B |
| P/B» | ~1.40x |
| Peer-multiple sanity check | Q2 2026 | Q3 2026 | Change |
|---|---|---|---|
| P/E» | ~6.76x | ~7.49x | up - the share-price recovery outpaced trailing-earnings growth |
| P/B» | ~1.29x | ~1.40x | up - same price-driven effect, book value also grew modestly on the quarter's retained profit |
How BRI Compares With the Other Banks We Follow
| Bank | Figures as of | P/B | P/E (basis) | ROE (basis) |
|---|---|---|---|---|
| Bank Rakyat Indonesia (Indonesia) | Sep 2026 | ~1.40x | ~7.49x (TTM) | 18.13% (nine months, average equity, bank-only) |
| Bank Central Asia (Indonesia) | Sep 2026 | ~2.6x | ~12.6x (TTM) | 23.9% (nine months, bank-only) |
| Bank Mandiri (Indonesia) | Sep 2026 | ~1.27x | ~5.84x (TTM) | 23.62% (nine months, bank-only, filed) |
| ICICI Bank (India) | Sep 2026 | ~2.63x | ~16.0x (annualised quarter) | 16.6% (annualised quarter) |
All four rows now cover the same September 2026 quarter. The P/E and ROE bases are labelled and differ (BCA, Mandiri and BRI use trailing-four-quarter figures; ICICI annualises a single quarter), so small gaps between rows should not be read as meaningful.
What it shows: BRI's price-to-book (~1.40x) sits closest to Mandiri's (~1.27x) of the four, well below BCA's (~2.6x) and ICICI's (~2.63x). But BRI's own return on equity (18.13%) is the second-lowest of the four, behind BCA's 23.9% and Mandiri's 23.62% and ahead only of ICICI's 16.6% - so BRI's cheaper multiple isn't simply a mispricing against a comparable return profile; its own profitability also trails its two closest domestic peers on this basis. BRI did narrow its multiple gap to BCA and ICICI this quarter as its own price recovered, but it remains the cheaper of the two Indonesian large-cap banks on both P/E and P/B.
PT Bank Rakyat Indonesia (Persero) Tbk's condensed OJK-format published financial report as of and for the nine months ended September 30, 2026 (with comparative figures for the nine months ended September 30, 2025), and BRI's own investor presentation for the same period.