{"id":15231,"date":"2025-03-01T19:17:17","date_gmt":"2025-03-01T11:17:17","guid":{"rendered":"https:\/\/dewasaham.com\/bank-rakyat-indonesia-bbri-hadapi-tantangan-di-awal-2025-laba-turun-dan-beban-provisi-meningkat\/"},"modified":"2025-06-10T06:44:17","modified_gmt":"2025-06-10T06:44:17","slug":"bank-rakyat-indonesia-bbri-hadapi-tantangan-di-awal-2025-laba-turun-dan-beban-provisi-meningkat","status":"publish","type":"post","link":"https:\/\/search.web.id\/digest\/bank-rakyat-indonesia-bbri-hadapi-tantangan-di-awal-2025-laba-turun-dan-beban-provisi-meningkat\/","title":{"rendered":"Bank Rakyat Indonesia (BBRI) Faces Challenges in Early 2025: Profit Falls and Provisions Expenses Increase"},"content":{"rendered":"<p><strong>Bank Rakyat Indonesia<\/strong> ($BBRI) has just released its financial report which gives many investors goosebumps. In January 2025, BBRI <strong>recorded a net profit<\/strong> (bank only) of <strong>2 trillion rupiah<\/strong>, down drastically by <strong>-58% YoY<\/strong> and <strong>-58% MoM<\/strong>. Why is that? Let&#8217;s peel it off!<\/p>\n<h2>Why is BRI&#8217;s Net Profit in Free Fall?<\/h2>\n<p>According to the report, the two main factors that led to this decline in profits include:<\/p>\n<ul>\n<li><strong>Provision Expenses<\/strong>: Provision expenses jumped to <strong>5.6 trillion rupiah<\/strong>, a significant increase compared to 2 trillion rupiah in January 2024. This reflects the pressure on <strong><em>the increasingly high credit costs<\/em><\/strong>.<\/li>\n<li><strong>Net Interest Margin (NIM):<\/strong> NIM also plunged to the level of <strong>6.15%,<\/strong> lower than the previous year which was at <strong>6.63%.<\/strong><\/li>\n<\/ul>\n<h2>The Bigger Picture<\/h2>\n<p>In this month&#8217;s earnings call, BBRI&#8217;s management hinted at the potential for one-time adjustments that may occur due to <em>modification losses<\/em> and <em>front-loading provisions<\/em> that could affect NIM and <em>credit costs<\/em> throughout the first half of 2025. While expectations of a decline in NIM and a surge in provisioning costs were predictable, the market&#8217;s reaction was quite surprising.<\/p>\n<h3>Market Reaction and Stock Decline<\/h3>\n<p>BBRI shares decreased by <strong>-7.4%<\/strong> in trading that day, Friday (28\/2). It is the market&#8217;s response to perceived poor performance outcomes. In the phone call, the management also mentioned that of the total provision expense of 5.6 trillion rupiah, <strong>around 2 trillion rupiah<\/strong> is a systematic provision, while <strong>3.5 trillion rupiah<\/strong> is an additional from management related to credit restructuring risks, especially for the Kupedes program (credit for the micro sector).<\/p>\n<h2>Future Projections<\/h2>\n<p>According to management, although the provision expense will be reduced in the coming months, <strong>the guidance<\/strong> for <em>credit costs<\/em> in the range of 300-320 bps in FY25F includes the <em>cost of the management overlay<\/em>. Performance projections rely heavily on several key factors such as credit growth and the completion of restructuring.<\/p>\n<h3>BBRI Dividends and Stock Valuation<\/h3>\n<p>In addition to focusing on financial performance, the management team also discussed the potential <strong>dividend payout ratio<\/strong> (DPR) for the 2024 financial year which is estimated at <strong>85%,<\/strong> higher than the previous year at 80%. With 85% of the DPR ready, the final dividend is expected to reach 204 rupiah per share, which means the <strong>dividend yield<\/strong> reaches 6.1% based on the latest closing price of 3,360 rupiah.<\/p>\n<h2>Conclusion<\/h2>\n<p>So, if you&#8217;re an investor, stay vigilant! The recovery of BBRI&#8217;s performance in the next few months is something that needs to be observed. Despite the challenges and risks, BBRI&#8217;s share price is currently trading at its lowest valuation since the Covid-19 pandemic, providing opportunities but also risks. Are you sure you&#8217;re ready to take the next step in this uncertain market?<\/p>\n<div class=\"newspaper-x-tags\"><strong><\/strong><span><a href=\"https:\/\/search.web.id\/digest\/stock\/bbri\/\" rel=\"tag\">BBRI<\/a> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bank Rakyat Indonesia ($BBRI) has just released its financial report which gives many investors goosebumps. In January 2025, BBRI recorded a net profit (bank only) of 2 trillion rupiah, down drastically by -58% YoY and -58% MoM. Why is that? Let&#8217;s peel it off! Why is BRI&#8217;s Net Profit in Free Fall? According to the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[986],"tags":[948],"class_list":["post-15231","post","type-post","status-publish","format-standard","hentry","category-stock","tag-bbri"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/posts\/15231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/comments?post=15231"}],"version-history":[{"count":1,"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/posts\/15231\/revisions"}],"predecessor-version":[{"id":16153,"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/posts\/15231\/revisions\/16153"}],"wp:attachment":[{"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/media?parent=15231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/categories?post=15231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/search.web.id\/digest\/wp-json\/wp\/v2\/tags?post=15231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}