Good News for BBRI Micro Credit, Analysts Reveal Evidence
PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI) is showing increasingly clear signals of recovery in asset quality within its micro-segment. This improvement has become a primary focus of BRI’s performance throughout the first half of 2026, amidst relatively limited micro-credit growth.
In its latest research report, Indo Premier Sekuritas assessed that a tangible turnaround in the quality of BRI’s micro-segment assets has occurred. This is reflected in the decline of both non-performing loan ratios and risky credit ratios. BRI’s loan at risk (LAR) ratio fell to 9.2% in the second quarter of 2026, down from 9.7% in the previous quarter. This figure also shows improvement compared to the 10.8% position recorded in the second quarter of 2025.
Meanwhile, the special mention loan (SML) ratio also decreased to 3.7% in the second quarter of 2026, compared to 4.2% in the first quarter of 2026 and 5.2% during the same period the previous year. On the other hand, the provisioning level against LAR remained relatively stable at 57%, compared to 56% in the previous quarter and 53% in the second quarter of 2025.
Indo Premier highlighted several indicators suggesting that the improvement in BRI’s micro-credit quality is becoming stronger. One such indicator is the decline in the average net downgrade of credit from deteriorating quality to NPL. The average net downgrade to NPL was recorded at Rp1.7 trillion in the second quarter of 2026, lower than approximately Rp2 trillion in the first quarter of 2026. This figure has also significantly decreased from its peak of Rp3.5 trillion in January 2025.
Improvements are also evident from credit vintage analysis. The ratio of loans that downgraded to SML after six months of disbursement fell to 2.4% for loans disbursed in the fourth quarter of 2025. By comparison, this ratio was as high as 5% for loans disbursed in the first quarter of 2025.
Nevertheless, BRI’s micro-credit growth has not yet been as robust as other segments. Micro-credit grew by only 6% year-on-year in the second quarter of 2026, while Kupedes disbursements continued to decline by 21% year-on-year. BRI’s overall credit growth was instead supported by the corporate and commercial segments. BRI’s credit grew by 16% year-on-year and 5% quarter-on-quarter in the second quarter of 2026, surpassing the company’s credit growth guidance for this year.
The corporate and commercial segments recorded credit growth of 47% and 58% year-on-year, respectively. Following these results, Indo Premier revised its projection for BRI’s credit growth in 2026 to 8%-10%, up from the previous guidance of 7%-9%.
Meanwhile, JP Morgan assessed that the placement of government funds and BRI’s ability to place such funds at high interest rates set by Bank Indonesia will be important drivers for the net interest margin (NIM) ratio, alongside commercial lending. According to BNI Sekuritas, BRI is the only large state-owned bank that has not revised down its NIM guidance.
In terms of performance, BRI recorded a net profit of Rp30.9 trillion throughout the first half of 2026. This achievement grew by 17% year-on-year and was deemed to have exceeded the expectations of Indo Premier, JP Morgan, BNI Sekuritas, and the market consensus.