BRI’s Net profit Plummets 58.34% in January 2025

Published: February 28, 2025

PT Bank Rakyat Indonesia Tbk (BBRI), or BRI, has released its financial statements for January 2025, revealing a important decline in net profit. The bank’s net profit collapsed by 58.34% year-on-year (YoY). Several factors contributed to this downturn,including a decrease in net interest income,depreciation of commission income,adn a significant increase in the burden of provisions.

Key Factors Behind the Profit Decline

A closer look at the financial statements reveals the following critical factors:

• Net Interest income (NII): BRI’s net interest income experienced a deep decrease of 7.63% YoY, amounting to Rp 8.92 trillion. This contrasts with the previous year, where the BBRI consolidation NII managed a growth of 3.38% YoY during 2024.
• Credit Growth Slowdown: While credit disbursement by BRI continues to grow positively, the rate has slowed to 4.61% YoY in January 2025. The total value of BRI credit reached Rp 1,209.51 trillion.
• Interest Income Drop: Despite credit growth, BRI’s interest income decreased by 6.25% YoY, totaling Rp 12.99 trillion.
• Commission Revenue Decline: The bank also saw an 8.17% YoY decline in commission revenue,which fell to Rp 1.60 trillion.
• Soaring Provision Burden (Impairment): The most substantial factor was the massive increase in the value of financial asset impairment. The burden of the reserve recorded by BBRI surged by 188.49% YoY to Rp 5.62 trillion, compared to Rp 1.95 trillion in the previous period.

Detailed Financial Performance

While challenges emerged, BRI managed to reduce its interest expense by 3.08% YoY to Rp 4.07 trillion in January.Additionally, other unspecified income sources provided some relief, jumping positively by 37.40% YoY to reach rp 2.00 trillion.

Though, the significant increase in impairment losses severely impacted overall profitability. As an inevitable result, the company reported an operating profit of Rp 2.62 trillion, which represents a steep decline of 59.58% YoY. Ultimately, this filtered down to a net profit of Rp 2.00 trillion for January 2025, marking the aforementioned 58.34% YoY decrease.

Strategic Implications and Future Outlook

The sharp decline in BRI’s net profit raises concerns about the bank’s performance and future strategies. While the bank demonstrated positive growth in credit disbursement and managed to reduce interest expenses, the adverse effects of declining net interest income, commission revenue, and a significant increase in impairment losses overwhelmed these gains. The 188.49% surge in financial asset impairment costs points to a concerning rise in non-performing assets, which BRI needs to address proactively. As of 2025, Experts recommend that BRI should focus on enhancing asset quality, diversifying income streams, and optimizing operational efficiency to mitigate these challenges.

The bank had Rp 1,209.51 trillion in credit. Credit then produced “Rp 12.99 trillion” in interest income, and the NII (net interest income) amounted to “Rp 8.92 trillion”.As of 2024 “the BBRI consolidation NII could still be hoisted to grow 3.38% yoy.”

Conclusion

BRI’s financial results for January 2025 reveal a sharp decline in net profit, driven by multiple factors affecting revenue and expenses. While the bank seeks to overcome these challenges, stakeholders should monitor BRI’s strategic responses closely, as the bank’s actions will determine its trajectory in the coming months. Stay informed.