BRIS - BRIS posts solid 1Q26 earnings, backed by financing growth and lower CoF

KBVS Update
Monday, 18 May 2026

BRIS – Posts solid 1Q26 earnings, backed by financing growth and lower CoF
(Maintain BUY; TP: IDR2,430)

* BRIS delivered a robust 1Q26 performance, with PATMI rising +17.1% YoY to IDR2.20 tn, primarily driven by solid financing growth of +14.4% YoY and a significant -56 bps decline in CoF to 2.12% (1Q25: 2.68%).

* Despite ongoing industry-wide margin pressures, the bank successfully expanded its NIM to 5.59%, supported by resilient growth across key segments, including consumer financing (+17.6% YoY), payroll financing (+14.5% YoY), and wholesale financing (+12.6% YoY).

* Meanwhile, its high-yield gold business recorded an exceptional +101.2% YoY increase. On the funding side, growth remained solid, underpinned by a +21.4% YoY increase in low-cost CASA deposits.

* Asset quality also continued to improve, supported by disciplined risk management, as reflected in lower gross NPF of 1.80% (Prev: 1.88%) and a -20 bps decline in CoC to 0.73%.

* Looking ahead, BRIS’s favorable product mix and optimized funding structure should continue to support profitability and enable the bank to achieve its FY26F guidance. We maintain our BUY recommendation with a GGM-based target price of IDR2,430 (2.0x FY26F P/B). The stock is currently trading at an attractive 1.5x FY26F P/B, equivalent to its -1SD valuation level.

Regards,
Akhmad Nurcahyadi - KBVS Research team