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PUBLIC EXPOSE LIVE 2023
FINANCIAL UPDATE
PRESENTATION – 3Q 2023
PT Bank Rakyat Indonesia (PERSERO) Tbk.
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SHARE PRICE PERFORMANCE & OWNERSHIP
Ownership Composition as of 3Q23 BBRI Share Performance vs JCI since IPO
No Description No. of Investor % No. of Shares %
BBRI JCI Since IPO
I Domestic
1. Government of RI 1 0.00% 80,610,976,876 53.19% BBRI +60.2x
2. Retail 315,600 97.10% 2,773,358,225 1.83%
JCI +10.1x
3. Employee 5,636 1.73% 17,862,092 0.01%
4. Cooperatives 14 0.00% 5,501,933,323 3.63% 6021%
5. Foundation 38 0.01% 252,407,856 0.17%
6. Pension Funds 146 0.04% 1,791,166,667 1.18%
7. Insurance 188 0.06% 2,132,872,356 1.41%
8. Bank 8 0.00% 784,490,487 0.52%
9. Corporations 311 0.10% 178,014,977 0.12%
10. Mutual Funds 327 0.10% 1,937,650,336 1.28%
11. Local Government 1 0.00% 1,590,000 0.00%
Total Domestic 322,270 99.15% 95,982,323,195 63.33%
II Foreign
1. Retail 347 0.11% 38,468,875 0.03% 1007%
2. Institutional 2,417 0.74% 55,538,209,534 36.64%
Total Foreign 2,764 0.85% 55,576,678,409 36.67%
III Total 325,034 100.00% 151,559,001,604 100.00%
Source : Datindo
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TABLE OF CONTENTS
Overview …………..…...…………….………………...…………………………………………………………………………………………………………….……...` 4
Macro Economic Metrics Remain Solid ………………………………………………………………………………………………………………………………. 5
Key Financial Highlights ……………………………………………………………………………………………………………………………………………….. 6
9M23 Strengths and Challenges ...………………………………………………………………………………………………………………………………........ 7
2023 BRI Group Guidance ………………………………….…………………………………………………………………………………………………..……... 8
Latest Regulation ……………………………………………………………………………………………………………………………………………………….. 9
9M23 Financial Performance ……..………………..………………………………………………………………………………………………..…………………… 10
Balance Sheet …………………………………………………………………………………………………………………………………………………….......... 11
Income Statement ………………………...………………………………………………………………………………………………...…………………............. 16
Other Operating Income & Operating Expense ……………………………………..………………………………………………………………………………. 18
Subsidiaries Contribution to BRI Group ……………………………………………………………………………………………………………………………… 21
Loan Quality ……………………………………………………………………………….………………………………………...………………………………………. 22
Ultra Micro & Micro Business ……………………………………………………………………………………………………………………………………………. 28
Appendix:
Digital Initiatives ......................................................................................................................................................................................................................... 33
ESG Initiatives ................………………………………………………………………………………………………………………………………………………….. 40
Investment Proposition ……………………………………………………………………………………………………………………………………………………. 52
9M23 Bank Only Performance …………..………………………………………………………………………………………………………………………............. 58
Others ………………………………………………………………………………………………………………………………………………………………………… 70
9M23 Bank Only Loan Quality …….……………………………………………………………………………………………………………………………………… 78
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OVERVIEW
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MACRO ECONOMIC METRICS REMAIN SOLID
Strong 2Q GDP Supports Stronger Full Year Outlook
Quarterly GDP Growth (% YoY) Foreign Reserves & IDR/USD
5.18 International Foreign Reserves USD/IDR
4.96 5.03 5.01 5.17
18,000
175,000
17,000
15,573
165,000
15,460 16,000
14,390 14,050 14,263
155,000
13,866 15,000
14,000
145,000
144.9
134.9
13,000
135.9 137.2
(2.17)
12,000
129.2
135,000
120.7 11,000
125,000
10,000
115,000 9,000
2018 2019 2020 2021 2022 2Q’23 2018 2019 2020 2021 2022 9M23
Inflation & BI7DRR MSME Business Index
115
Headline Inflation BI Rate
6.00 109.4 109.6
5.75
5.50
110
5.00 105.9
104.6 105.1 104.7
104.1
105
103.2
3.75 5.51
3.50
3.13 100
2.59 100
1.87 Optimistic Level
1.68 2.28
95
90
2021 1Q22 2Q22 3Q22 2022 1Q23 2Q23 3Q23
2018 2019 2020 2021 2022 9M23
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KEY FINANCIAL HIGHLIGHTS
Strong NIM at 8.05% supported by above guidance loan growth
Consolidated
Description
9M23 2022 9M22 g YtD g YoY
Total Loan & Financing (IDR Bn) 1,250,715 1,139,077 1,111,478 9.8% 12.5%
Micro to Total Loans 47.2% 48.4% 47.6% -1.2% -0.4%
NIM 8.05% 7.85% 8.21% 0.2% -0.2%
Total CAR 27.48% 25.51% 26.14% 2.0% 1.3%
CASA % 63.64% 66.70% 65.43% -3.1% -1.8%
Cost to Income Ratio (CIR) 41.28% 44.87% 42.55% -3.6% -1.3%
NPL (Gross) 3.07% 2.67% 3.09% 0.4% 0.0%
Credit Cost 2.44% 2.55% 3.02% -0.1% -0.6%
ROA After Tax 3.21% 3.01% 3.15% 0.2% 0.1%
ROE B/S 19.69% 17.63% 18.16% 2.1% 1.5%
Leverage (x) 5.9 6.1 5.6 -20.4% 33.6%
Net Profit (IDR Bn) 44,214 51,408 39,311 12.5%
PATMI (IDR Bn) 43,993 51,170 39,156 12.4%
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9M23 STRENGTHS AND CHALLENGES
Key Strengths Key Challenges
❑ Strong Loan Growth Pickup ❑ Elevated Asset quality, provisions already realized
• Strong loan growth surpassed our FY23 target of 10-12% and is anticipated • The lingering effect of Covid-19 in micro and small segment after the
to remain within our guidance for 2023. The 12.5% YoY increase in 9M23 end of Pandemic in mid 2022 has led to expeditious resolution of covid
was driven by all segments outside of small business lending. Moreover, restructured loans, pushing SML and NPL higher in these segments.
lending yields continued to move higher on a reported and core basis.
• In 3Q23 our asset quality was impacted by El Nino that has led to
• Ultra Micro (PNM & Pegadaian) portfolio has increased by 14.8% YoY and lower rainfall across Indonesia, impacting farmers and fisheries.
consistently reports higher loan growth than the bank only, now accounting
for 8.9% of total loans ❑ Higher for longer impacting the Cost of Funds
• Regulations and expected elevated rates for longer has maintained
❑ Efficient Cost Management elevated cost of funds
• Well-managed cost control, Bank Only Opex only increased 5.3% YoY in
9M23 leading to the cost to income ratio continuing to be managed below • Our CASA strategy has been able to maintain CASA above pre-covid
guidance at 37.63% (Bank Only). level at above 60%, and cost of funds have been managed at 16%
below historical levels at 2.84%, whereas the 10-year average from
2013-2022 was 3.41%
❑ Strong NIM amid rising interest rates
• BRI’s strategy to rebalance loan portfolio (shift from KUR to Kupedes), strong
growth in consumer loan and subsidiaries (PNM and Pegadaian) has been a ❑ Elevated Capital
success to curb the impact of cost of fund increases. • Current capital levels remain elevated as our Tier 1 CAR stands at
26.3% up 119bps YoY. We have increased our leverage to 5.9x from
• Ultra Micro (PNM & Pegadaian) contribute nearly 18% to consolidated net 5.6x, and plan for this to rise closer to 6.5-7x in the medium term,
interest income despite only 8.9% of loan book. supporting ROE expansion.
• Room for loan repricing by managing the mix of fixed, floating and managed
rates within the portfolio will support our NIM.
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2023 BRI GROUP GUIDANCE
2022 Actual 2023 Guidance 9M23 Actual 2023 New Guidance
Loan Growth
9.2% 10% - 12 % 12.5% 10% - 12%
(YoY)
NIM 7.85% 7.7% - 7.9% 8.05% 7.7% - 7.9%
Credit Cost 2.55% 2.2% - 2.4% 2.44% 2.2% - 2.4%
NPL 2.67% 2.6% - 2.8% 3.07% 2.8% - 3.0%
CIR 41.95% 40.0% - 41.5% 37.63% 40.0% - 41.5%
(Bank Only)
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LATEST REGULATION
KUR Regulation Liquidity Policy Bank Dividend Policy
Ref. Coordinating Ministry of Economy Policy No. 1 Reserve Requirement Incentives Ref. Financial Service Authority Policy POJK No. 17/2023
dated 2023 On January 25th, 2023 BI has stated that they will provide additional Reserve
Requirement Ratio (RRR) incentives for banks that can The Financial Service Authority (FSA) has released new
1. Borrowers must have never had a regulation on banks’ dividend policy :
commercial loan increase to a maximum of 4.0% from a previous maximum
of 2.8%, consisting of: 1. Banks must have dividend policy which will be
2. Restrictions on receiving KUR: communicated to its shareholders
1. Disbursed loans to priority sectors (maximum incentive
a) Priority Sectors (Agribusiness, 2. Dividend policy contains (at minimum) :
increases by 50bps to 2.0% from previously 1.50%),
Livestock, Fishery, and Plantation):
priority sectors include: • Considerations in dividend payment
• KUR terms of max 4x (KUR facility
a) Mineral & coal downstreaming • Amount of dividend payment
is renewable up to 3x); or
b) Non mineral & coal downstreaming (including • Approval mechanism
• Micro/ Small KUR: Max loan ceiling
agriculture, livestock, and fisheries) • Dividend policy update period
accumulation of Rp400 Mn/ Rp500
Mn, respectively c) Housing (including subsidized mortgage) 3. Dividend payment plan is based on
b) Other Sectors: d) Tourism shareholders’ rights fulfillment and included in
2. Disbursed MSME including KUR loan with maximum the business plan
• KUR terms of max 2x (KUR facility
is renewable once); or incentive of 1.0% (same as before) 4. Dividend payment plan should already take
3. Disbursed loan to Ultra Micro Segment (new incentive into account the external and internal aspects
• Micro/ Small KUR: Max loan ceiling
accumulation of Rp200 Mn/ Rp500 maximum 0.5%). 5. Dividend payment plan must be based on
Mn, respectively 4. Disbursed green property financing or vehicle loan with banks’ fair financial performance
3. Lending rate charged to borrowers: maximum incentive of 0.5% from previously 0.3%. 6. FSA increase authority over banks’ dividend
payment policy
a) KUR Super Micro: 3%
Macroprudential Liquidity Buffer
b) KUR Small and Micro: Step-up lending
rate BI has stated to ease liquidity by reducing the
Macroprudential Liquidity Buffer (PLM) ratio :
• Initial financing: 6%
1. Conventional Commercial Banks : from 6% to 5%, with
• 1st refinancing: 7% repo flexibility of 5%;
• 2nd refinancing: 8% 2. Sharia Commercial Banks : from 4.5% to 3.5% for, with
• 3rd refinancing: 9% repo flexibility of 3.5%.
This reduction is aimed at providing flexibility in liquidity
management in lending/financing, effective from 1
December 2023
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9M23
FINANCIAL PERFORMANCE
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BALANCE SHEET
(IDR Bn)
Items 9M23 1H23 9M22 g QoQ g YoY 2022 2021 2020
Cash and Cash Equivalent 116,215 117,456 107,579 -1.1% 8.0% 178,343 82,727 83,806
Total Earning Assets 1,699,744 1,654,691 1,558,926 2.7% 9.0% 1,665,968 1,588,914 1,511,922
- Placement with BI & Other Banks 39,873 65,932 55,155 -39.5% -27.7% 91,890 73,048 80,118
- Receivables (Acceptance & Others) 68,292 47,712 54,722 43.1% 24.8% 47,146 39,949 35,967
- Loans & Financing 1,250,715 1,202,129 1,111,478 4.0% 12.5% 1,139,077 1,042,867 1,020,193
- Gov't Bonds & Marketable Securities 333,937 332,139 330,957 0.5% 0.9% 381,339 426,964 374,124
- Other Earning Assets 6,927 6,779 6,614 2.2% 4.7% 6,515 6,086 1,520
Earning Asset Provision (91,187) (90,872) (98,130) 0.3% -7.1% (94,975) (89,821) (72,747)
- Loans and Financing Provisions (87,871) (88,238) (95,902) -0.4% -8.4% (93,088) (87,829) (70,395)
- Other Provisions (3,316) (2,634) (2,228) 25.9% 48.8% (1,887) (1,991) (2,353)
Fixed & Non-Earning Assets 127,193 123,872 116,230 2.7% 9.4% 116,303 96,278 87,085
Total Assets 1,851,965 1,805,146 1,684,604 2.6% 9.9% 1,865,639 1,678,098 1,610,065
Third Party Funds 1,290,286 1,245,115 1,139,765 3.6% 13.2% 1,307,884 1,138,743 1,120,922
- CASA 821,135 815,424 745,727 0.7% 10.1% 872,404 718,267 668,796
Current Account 314,710 298,310 245,644 5.5% 28.1% 349,756 220,590 192,730
Savings Account 506,426 517,115 500,083 -2.1% 1.3% 522,648 497,677 476,066
- Time Deposits 469,151 429,691 394,038 9.2% 19.1% 435,481 420,476 452,126
Other Interest-Bearing Liabilities 156,973 175,343 158,497 -10.5% -1.0% 162,817 167,005 195,651
Non-Interest-Bearing Liabilities 93,171 86,196 86,007 8.1% 8.3% 91,543 80,563 64,025
Total Liabilities 1,540,431 1,506,655 1,384,269 2.2% 11.3% 1,562,244 1,386,311 1,380,598
Tier 1 Capital 280,082 266,050 270,798 5.3% 3.4% 273,812 266,166 187,205
Total Equity 311,534 298,492 300,336 4.4% 3.7% 303,395 291,787 229,467
Total Liabilities & Equity 1,851,965 1,805,146 1,684,604 2.6% 9.9% 1,865,639 1,678,098 1,610,065
*Financial figures for 2021 is restated to include Pegadaian and PNM in accordance with PSAK 38 11
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LOANS & FINANCING PORTFOLIO
Loan Outstanding – by business segment (IDR Tn) Composition – by business segment (%)
120 .0%
1,40 0.0 1,40 0.0
1,250.7
1,202.1
1,139.1
100 .0%
1,111.5
1,20 0.0 1,20 0.0
1,042.9 211.8 16.1% 16.1% 15.3% 15.5% 15.8% 16.9%
1,020.2 186.6 23.1% 21.2%
173.8 175.6 2.4%
1,00 0.0
31.6 33.7 1,00 0.0
3.3% 2.7% 2.6% 2.3% 2.7%
903.2 168.3 27.8
80. 0%
2.4%
834.7 164.7 25.9 2.2%
227.8 229.8 20.4% 19.2% 18.9% 19.7% 18.4%
33.5 27.8 24.0%
800 .0
191.1 218.6 218.8 800 .0
26.2% 26.8%
192.5 212.5 60. 0%
21.5 244.6 184.6 14.7% 14.8% 14.6%
178.3 14.4% 14.8%
18.3 167.6 161.9
600 .0 600 .0
14.2%
242.3 150.4
218.8 144.8 40. 0%
15.7% 15.6%
400 .0 400 .0
140.5
130.8
551.3 577.9 590.7 46.4% 48.4% 48.1% 47.6% 47.2%
483.9 529.2 20. 0%
42.4%
200 .0
432.5 200 .0
32.9% 34.1%
274.3 307.7
- -
0.0 %
2018 2019 2020 2021 2022 1H23 9M22 9M23 2018 2019 2020 2021 2022 1H23 9M22 9M23
Micro Consumer Small Medium Corporate Total
YoY Growth ( % ) 11.6 14.0 5.0 30.1 20.6 12.5
(IDR Tn) 61.5 22.7 11.0 7.8 36.2 139.2
√ Since 2022, BRI has classified SOE and Corporate non-SOE into Corporate Segment 12
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Deposit Growth Remains Stong
CASA Deposits Increased 10.1% YoY Although CASA Ratio Decreased
Deposit Growth (IDR Tn) Deposit Composition
YoY
1,40 0.0
Total 13.2% 1,307.9 1,290.3
CASA 10.1% 1,245.1
100 %
1,20 0.0
1,120.9 1,138.7 1,139.8 90%
1,021.2 435.5 36.9% 33.3% 34.5% 34.6% 36.4%
469.2
80%
39.9% 42.3% 40.3%
1,00 0.0 944.3 429.7
420.5 394.0 70%
452.1
800 .0
431.9 60%
376.4
50%
600 .0
522.6
517.1 506.4 40%
500.1
497.7 66.7%
476.1 63.1% 65.5% 65.4% 63.6%
400 .0
414.3
30%
60.1% 57.7% 59.7%
387.2
20%
200 .0
349.8 298.3 314.7 10%
220.6 245.6
180.7 174.9 192.7
0%
-
2018 2019 2020 2021 2022 1H23 9M22 9M23 2018 2019 2020 2021 2022 1H23 9M22 9M23
Demand Deposit Savings Time Deposit Total Low-Cost High-Cost
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SOURCE OF CASA GROWTH
CASA vs Cost of Fund Source of CASA Growth
MERCHANT
68. 00% 4.5 0%
66.92%
# Merchant EDC (in thou) Sales Volume/ Merchant (IDR Mn) % Merchant EDC Market Share
65.68% 4.0 0%
66. 00%
3.58% 620.7 636.0 16.2%
3.47%
700 .0
18. 0%
350 .0 330.4 600 .0 16. 0% 13.9% 14.2%
63.81% 471.5 490.8
3.5 0%
3.22% 300 .0
238.1 231.3
500 .0
14. 0%
64. 00%
64.79% 250 .0
12. 0% 9.8%
172.3
400 .0
63.30% 3.0 0%
200 .0
10. 0%
61.84%
300 .0
8.0 %
150 .0
6.0 %
62. 00% 200 .0
61.00% 2.66% 2.74%
100 .0
2.5 0%
4.0 %
2.56%
100 .0
50.0
2.0 %
- -
0.0 %
2.0 0%
60. 00%
2021 2022 9M22 9M23 2021 2022 9M22 9M23 2021 2022 9M22 9M23
2.05%
1.87% 1.5 0%
58. 00%
59.01% BRIMO
1.0 0%
56. 00%
Generated Fee Income (IDR Tn) BRIMO Penetration Rate
0.5 0%
2.0
1.8
54. 00% 0.0 0%
32.4% 34.7% 36.6%
30.4%
1.8 40. 0%
2018 2019 2020 2021 2022 1Q23 1H23 9M23 1.6
35. 0%
27.7%
1.4
1.2 30. 0%
21.9% 24.4%
CASA % COF 1.2
1.0
25. 0%
20. 0%
0.8
15. 0%
0.6
10. 0%
0.4
5.0 %
0.2
0.0 %
-
9M22 9M23 1Q22 1H22 9M22 2022 1Q23 1H23 9M23
BRIMO penetration rate used total customers of ~111 Million as of 9M23
Note: All numbers are bank only, unless stated as consolidated 14
Page 15
WELL CAPITALIZED BALANCE SHEET PROVIDES FLEXIBILITY
Goal is to Optimize Capital for Sustainable Business Growth and Shareholders’ Return
40. 00% 25. 00%
21.18%
20.01% 19.69%
17.34% 17.63% 20. 00%
35. 00%
14.47%
12.23%
15. 00%
30. 00%
10. 00%
27.16% 27.48%
26.65%
1.00% 25.51% 24.98% 1.15%
1.10% 5.0 0%
25. 00%
22.77% 26.16% 1.01% 1.05% 26.33%
25.55%
24.50% 23.93%
1.12%
0.0 0%
20.14%
REGULATORY 20. 00% 21.65%
REQUIREMENT 1.08% -5.00%
19.06% DPO DPO
17.5% 85%
If Basel 3 fully 15. 00%
85% -10.00%
Max 2.5%
implemented DPO Countercyclical Buffer
DPO 65% -15.00%
15.0% 10. 00%
DPO 60% 2.5% Capital
Normal condition 50% Conservation Buffer
-20.00%
2.5% Capital Surcharge
on Systemic Bank
5.0 0% -25.00%
2019 2020 2021 2022 1Q23 1H23 9M23 10% CAR based on
Risk Profile
Leverage (x) 6.8 7.0 5.8 6.1 6.4 6.0 5.9
Tier 1 CAR Tier 2 CAR Total CAR ROE B/S
• As of Jan’23, as part of the implementation of Basel 3, the change on RWA of Operational & Credit Risk adds 329bps to BRI total CAR
• Based on FY’22 performance with Dividend Payout Ratio of 85%, BRI distributed Full Year 2022 dividend of Rp288.22 per share (included interim
dividend of Rp57 per share) paid on 12 April 2023
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INCOME STATEMENT
9M23 PPOP Increased 10.9% YoY; Net Profit Up 12.5%
(IDR Bn)
Items 3Q23 2Q23 3Q22 g QoQ g YoY 9M23 9M22 g YoY
Interest Income 46,302 43,131 38,391 7.4% 20.6% 131,893 115,252 14.4%
Interest Expense (10,646) (10,369) (6,497) 2.7% 63.9% (30,696) (18,744) 63.8%
Net Interest Income 35,656 32,761 31,894 8.8% 11.8% 101,197 96,507 4.9%
Net Premium Income 931 445 (24) 109.3% -3922.7% 1,819 830 119.0%
Gold Sales Revenue - Net 67 79 71 -15.6% -5.7% 226 209 8.0%
Total NII, Premium & Gold Income 36,655 33,286 31,940 10.1% 14.8% 103,241 97,547 5.8%
Other Operating Income (Non-Interest) 10,483 11,186 9,539 -6.3% 9.9% 31,612 26,732 18.3%
Total Operating Expenses (19,016) (18,566) (18,148) 2.4% 4.8% (55,673) (52,876) 5.3%
Personnel Expenses (10,633) (8,176) (8,725) 30.1% 21.9% (29,495) (27,750) 6.3%
G&A Expenses (6,890) (6,963) (6,456) -1.1% 6.7% (20,423) (17,907) 14.1%
Others Expenses (1,492) (3,427) (2,967) -56.4% -49.7% (5,755) (7,219) -20.3%
Pre-Provision Operating Profit 28,122 25,905 23,331 8.6% 20.5% 79,180 71,403 10.9%
Provision Expenses (9,157) (8,222) (5,639) 11.4% 62.4% (22,979) (22,565) 1.8%
Profit From Operations 18,964 17,683 17,692 7.2% 7.2% 56,201 48,838 15.1%
Non-Operating Income (446) (79) 322 -466.6% -238.6% (483) 401 -220.5%
Net Income Before Tax 18,518 17,604 18,014 5.2% 2.8% 55,719 49,238 13.2%
Net Profit 14,652 13,997 14,435 4.7% 1.5% 44,214 39,311 12.5%
Profit After Tax & Minority Interest (PATMI) 14,571 13,920 14,370 4.7% 1.4% 43,993 39,156 12.4%
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NIM INCREASED TO 8.05% DESPITE RISING INTEREST RATE ENVIRONMENT
NIM – Bank Only vs Consolidated Lending Yield, EA Yield, and Cost of Fund
12.64%
14. 00%
12.31% 12.49% 12.52% 12.30% 13.12%
NIM - Consol. NIM - Bank Only
12. 00%
8.5 0%
7.85% 8.05% 8.0 0% 10. 00%
7.45% 7.70%
8.0 0%
10.47% 10.09% 10.01% 10.49%
7.5 0%
6.98% 6.90%
7.5 0%
8.0 0%
9.47% 9.57%
7.0 0% 7.0 0%
6.0 0%
7.22%
6.5 0%
3.54% 3.73% 3.53%
6.89% 6.97% 6.5 0%
2.84%
6.0 0%
6.73% 6.80% 4.0 0%
2.32% 2.06%
5.5 0% 6.0 0%
2.0 0%
6.00%
5.0 0%
5.5 0%
0.0 0%
4.5 0%
4.0 0% 5.0 0%
2018 2019 2020 2021 2022 9M23
40.0
Loan Yield Earning Asset Yield CoF
37.5
35.7
40.0
35.0
Loan & Financing to Total EA and LDR
31.1
35.0
30.0
28.1 100 .0%
88.40% 88.45% 84.77% 88.51% 84.94% 87.26% 87.76%
30.0
90. 0%
78.82%
25.0
80. 0%
25.0
21.1 70. 0%
19.8 60. 0%
20.0
50. 0%
28.7
20.0
26.1 40. 0%
70.8% 72.6% 73.6%
21.9 69.6% 67.5% 65.6% 68.4% 70.0%
15.0
20.2 21.6 30. 0%
19.0
15.0
20. 0%
10. 0%
10.0
10.0
0.0 %
2018 2019 2020 2021 2022 9M23 2018 2019 2020 2021 2022 1Q23 1H23 9M23
Quarter NII - Consol (IDR Tn) Quarter NII - Bank Only (IDR Tn) % Loan & Financing to Total EA LDR - Consol. (Bank Entity)
17
Page 18
OTHER OPERATING INCOME & OPERATING EXPENSES
Positive Other Operating Income Growth with Manageable Operating Expenses
Other Operating Income
(IDR Bn)
Items 3Q23 2Q23 3Q22 g QoQ g YoY 9M23 9M22 g YoY
Fees and Commissions 5,337 5,143 4,503 3.8% 18.5% 15,560 13,870 12.2%
Recovery of Written-Off Assets 4,214 3,736 3,617 12.8% 16.5% 10,912 8,696 25.5%
Gain on Sale of Securities - Net 486 596 355 -18.4% 37.1% 1,466 1,250 17.3%
Gain on Foreign Exchange - Net 56 14 473 286.1% -88.2% 292 1,079 -72.9%
Unrealized Gain on Changes in Fair Value of Securities - 69 113 - 47 -161.5% 47.8% 222 19 1073.1%
Others 459 1,584 638 -71.0% -28.0% 3,160 1,818 73.8%
Total Other Operating Income 10,483 11,186 9,539 -6.3% 9.9% 31,612 26,732 18.3%
Operating Expenses
(IDR Bn)
Items 3Q23 2Q23 3Q22 g QoQ g YoY 9M23 9M22 g YoY
Salaries and Employee Benefits 10,633 8,176 8,725 30.1% 21.9% 29,495 27,750 6.3%
General and Administrative 6,890 6,963 6,456 -1.1% 6.7% 20,423 17,907 14.1%
Others 1,492 3,427 2,967 -56.4% -49.7% 5,755 7,219 -20.3%
Total Other Operating Expense 19,016 18,566 18,148 2.4% 4.8% 55,673 52,876 5.3%
18
Page 19
FEE & OTHER OPERATING INCOME
Trade Finance & Loan Fees Supporting Growth
Consolidated - Other Operating Income (IDR Tn) Bank Only - Fee and Commission – Composition (IDR Bn)
45.0
YoY g = 18.3% 9M22 g YoY = 10.9% 9M23
316
39.1 2% 784 384
3% 768
40.0
1,441 6% 2,016 5% Deposit Admin.
34.7 1,408 11% 13%
7.9 686 1,903 E-Channel
35.0
31.6 10% 812
31.0 5% 13%
5% Loan Admin.
28.4 8.6 Trade Finance & IB
30.0
26.7 5.1
7.5 5,583 3,425 Non E-Channel
23.4 3,560
25.0
6.9 12.5 4.2 41% 25% 5,693 23% Insurance
21.1 38%
5.2 9.0 10.9 Others
20.0
7.3 4.2
7.1 8.7
15.0
6.2
6.7
Bank Only - Fee and Commission YoY Growth
10.0
18.8
16.2 17.1 15.6
14.5 13.9
45. 0%
39.9%
12.0
5.0
10.2 40. 0%
35.1%
35. 0%
30. 0%
-
2018 2019 2020 2021 2022 1H23 9M22 9M23 25. 0%
21.6%
20. 0%
18.3%
Fees and Commissions Recovery of Written-Off Assets Others 15. 0%
10. 0%
3.9%
• Other Operating Income growth driven by Fee Based Income and 5.0 %
2.0%
Recovery Income
0.0 %
-5.0%
Deposit E-Channel Loan Trade Non E- Insurance Others
Admin. Admin. Finance & Channel -2.0%
IB
19
Page 20
OPERATING EXPENSE BREAKDOWN
(IDR Bn)
Items 3Q23 2Q23 3Q22 g QoQ g YoY 9M23 9M22 g YoY
Bank Only - Personnel Expenses 7,648 5,919 6,491 29.2% 17.8% 21,180 20,949 1.1%
Bank Only - G&A Expenses 4,831 5,069 4,840 -4.7% -0.2% 14,841 13,133 13.0%
Bank Only - Others Expenses 1,150 3,414 3,451 -66.3% -66.7% 5,185 7,101 -27.0%
Bank-Only Operating Expense 13,629 14,402 14,781 -5.4% -7.8% 41,207 41,182 0.1%
Subsidiaries - Personnel Expenses 2,985 2,258 2,234 32.2% 33.6% 8,314 6,801 22.2%
Subsidiaries - G&A Expenses 2,059 1,894 1,616 8.7% 27.4% 5,582 4,774 16.9%
Subsidiaries - Others Expenses 342 12 - 484 2651.6% -170.7% 570 118 381.3%
Subsidiaries Operating Expense 5,387 4,164 3,367 29.4% 60.0% 14,466 11,694 23.7%
Consolidated - Personnel Expenses 10,633 8,176 8,725 30.1% 21.9% 29,495 27,750 6.3%
Consolidated - G&A Expenses 6,890 6,963 6,456 -1.1% 6.7% 20,423 17,907 14.1%
Consolidated - Others Expenses 1,492 3,427 2,967 -56.4% -49.7% 5,755 7,219 -20.3%
Consolidated Operating Expense 19,016 18,566 18,148 2.4% 4.8% 55,673 52,876 5.3%
Cost to Income Ratio: Bank Only vs Consolidated Cost to Asset Ratio: Bank Only vs Consolidated
55. 00% 5.0 0%
50.92% 4.52% 4.41%
48.56% 4.19%
50. 00%
47.38% 4.5 0%
3.97% 4.06% 4.01%
4.0 0%
45. 00%
41.15% 41.83% 41.79% 41.28%
40.45% 3.24% 3.17%
45.40% 3.5 0%
40. 00%
43.26% 3.48%
41.95% 3.0 0%
40.38% 40.03% 3.20% 3.26% 3.23% 3.27% 3.18%
3.11% 3.10%
35. 00%
37.37% 37.93% 37.63% 2.5 0%
30. 00% 2.0 0%
2018 2019 2020 2021 2022 1Q23 1H23 9M23 2018 2019 2020 2021 2022 1Q23 1H23 9M23
BRI Consolidated BRI Consolidated
20
Page 21
SUBSIDIARIES CONTRIBUTION TO BRI GROUP
Subsidiaries Contribute 11.8% to Net Profit
Loan & Financing
BRI Subsidiaries BRI Ownership Total Asset 9M23
Assets (IDR Tn) (IDR Tn) Net Profit (IDR Tn)
1.5% YoY 185.4 11.5% YoY 124.1 35.0% YoY
5.2
Market Leader in General Insurance Provider 3.9
Pawn Industry (property, vehicle, etc) 182.7
111.3
99.99% 80.3 Tn 90.00% 6.3 Tn
9M22
1H'22 9M23
1H'23 1H'22
9M22 1H'23
9M23 9M22
1H'22 9M23
1H'23
National Leader in
Community Based
Lending 10.4%
99.99% 50.9 Tn 99.97% 2.7 Tn 6.2% Pegadaian
% to Total 43.3% PNM
Subsidiaries 12.7%
BRILife
Assets Bank Raya
Others
54.77% 23.5 Tn 67.00% 1.2 Tn 27.4%
Digital Bank focused 6.8% 1.1%
in MSME especially
gig economy
7.3% Pegadaian
86.85% 11.5 Tn 65.00% 282 Bn % to Total PNM
Subsidiaries BRILife
Net Profit 23.1%
BRI Insurance
61.7%
Others
99.88% 8.7 Tn 100% 24 Bn
21
Page 22
LOAN QUALITY
22
Page 23
LOAN QUALITY
Non-Performing Loan and Special Mention Loan Impacted By Covid & El Nino
Non-Performing Loan – by Segment Special Mention – by Segment
Segment 9M23 9M22 1H23 2022 2021 2020 2019 2018 Segment 9M23 9M22 1H23 2022 2021 2020 2019 2018
Micro 2.41% 2.12% 2.23% 1.74% 1.49% 0.83% 1.18% 1.01% Micro 6.56% 4.63% 6.17% 3.95% 3.03% 2.47% 3.51% 3.51%
Consumer 2.10% 1.98% 2.02% 1.83% 1.78% 1.49% 1.10% 1.03% Consumer 3.61% 3.04% 3.08% 2.76% 2.20% 2.69% 2.52% 2.49%
Small 4.58% 4.81% 4.29% 4.30% 4.05% 3.61% 3.17% 3.14% Small 6.06% 5.69% 6.30% 4.30% 3.42% 3.19% 4.63% 4.28%
Medium 2.16% 2.53% 2.70% 2.26% 3.57% 4.61% 5.38% 6.80% Medium 1.43% 2.66% 2.35% 2.55% 3.08% 3.07% 2.97% 2.87%
Corporate 4.66% 4.64% 4.83% 4.68% 6.68% 7.57% 5.18% 5.49% Corporate 4.88% 7.53% 5.98% 4.32% 6.94% 2.85% 5.04% 7.73%
Bank Only - NPL% 3.23% 3.14% 3.10% 2.82% 3.08% 2.94% 2.62% 2.16% Bank Only - SML% 5.53% 5.09% 5.58% 3.87% 3.70% 2.75% 3.93% 3.65%
Subsidiaries - Subsidiaries -
1.43% 2.51% 1.39% 1.24% 2.08% 2.49% 5.89% 4.88% 7.27% 5.01% 6.91% 3.90% 4.68% 6.00% 4.41% 6.01%
NPL% SML%
Consolidated - Consolidated -
3.07% 3.09% 2.95% 2.67% 3.00% 2.88% 2.80% 2.28% 5.74% 5.12% 5.75% 3.90% 3.81% 3.13% 3.97% 3.70%
NPL % SML %
23
Page 24
LOAN QUALITY AND COVERAGE
NPL & NPL Coverage LAR & LAR Coverage
LAR % LAR Coverage
350 .00%
70. 00%
305.73% 49.40% 49.14% 50.92%
60. 00%
47.20% 44.65%
281.16%
300 .00%
50. 00%
36.14%
248.54% 40. 00%
28.26%
239.20% 228.65% 30. 00%
250 .00%
20. 00%
185.94% 10. 00%
25.77% 23.31%
16.54%
200 .00%
154.63% 0.0 0%
300 .0
9.17% 9.78% 14.94% 13.80%
150 .00%
160 .0 3.5 0%
248.9 243.0
100 .00%
250 .0
3.00% 3.07%
2.88% 2.95% 35.6 15.5
140 .0
50. 00% 2.80%
2.67%
3.0 0%
200 .0
6.9 48.7 188.4
120 .0
179.5 172.6
0.0 0%
2.28% 2.5 0%
12.2
5.8 15.2
93.1 15.0
100 .0
87.8 88.2 87.9 95.6 39.5
36.9
150 .0
33.1
2.0 0%
81.4 4.1
80.0
70.4 3.7 3.3
1.5 0%
60.0
100 .0
84.1 15.5 58.5 52.1 48.4
73.2 14.4
35.5 39.2 24.6 13.8
1.0 0%
19.4 13.7 14.2
3.0
40.0
50.0
2.6 95.2
26.3 29.0 77.3
60.2
0.5 0%
20.0
31.2 35.5 38.4 6.2 58.0 58.6
25.3 29.4 30.4 5.8
19.1 19.2 21.2
-
- 0.0 0%
2018 2019 2020 2021 2022 1H23 9M23 2018 2019 2020 2021 2022 1H23 9M23
Provision (IDR Tn) NPL (IDR Tn) NPL % NPL Coverage -50.0
Micro Consumer Small Medium Corporate Subsidiaries
Since 2021, LAR and LAR Coverage are presented in consolidated number
24
Page 25
CREDIT COST, WRITE OFF, AND RECOVERY
Credit Cost Write Off & Recovery
45. 0 60. 0%
80.0 4.0 0%
55.7%
3.58% 50.8% 50.6%
3.48% 40. 0
49.6%
70.0 3.5 0%
50. 0%
35. 0
43.3%
60.0 3.0 0%
40.4%
2.71% 2.70%
2.61% 2.55% 30. 0 40. 0%
2.44%
2.35% 25.2
50.0
2.26% 2.5 0%
37.9%
25. 0
22.4
30. 0%
40.0
1.80% 2.0 0%
17.8
20. 0
1.56% 17.5 17.7
1.41%
30.0
1.22%
1.5 0%
15. 0
14.3 20. 0%
1.12% 12.5 12.5
10.9
20.0 1.0 0%
9.0
36.6
10. 0
32.8 7.1 7.3 6.7
27.9 6.2 10. 0%
22.8 21.8
18.3
10.0 0.5 0% 5.0
13.2
0.0 0.0 %
- 0.0 0%
2018 2019 2020 2021 2022 1H23 9M23 2018 2019 2020 2021 2022 1H23 9M23
Provision Exp. - Loan (IDR Tn) CoC % Coc Net % Write-Off (IDR Tn) Recovery Income (IDR Tn) Recovery Rate
25
Page 26
COVID-19 RESTRUCTURED LOAN – BANK ONLY (1/2)
Declining Restructured Loan Outstanding and Borrowers
Outstanding (IDR Tn) Covid-19 Restructured Loan Movement (IDR Tn)
250 .0 22.1% 21.2% 25. 0%
200 .0
16.6% 20. 0%
85.0
193.7 186.6 10.4%
15. 0%
0.4
150 .0
9.4%
157.0 7.6%
6.2% 10. 0%
100 .0 2.4
107.2 99.8
5.0 %
50. 0
83.2 70.9 80.0
4.6 -0.1
0.0 %
-2.6 -4.0 -2.8 -8.1 -5.0
0.0
-5.0%
6.5
9M20 2020 2021 2022 1Q23 1H23 9M23
-50.0 -10.0%
75.0
Total Monthly % to Total Loan
3.8
# Borrowers (in Mn) 83.2
70.0
3.5
24.7% 30. 0%
21.6%
3.0
14.0% 20. 0%
2.5
3.0 2.8 7.7% 7.0% 5.4%
2.0
4.3% 10. 0%
65.0
70.9
1.5
2.1 1.2 1.1 0.0 %
0.9
1.0 0.7
-10.0%
-0.0
0.5
-0.1 -0.1 -0.1 -0.1 -0.1 -0.1 -20.0%
60.0
0.0
Restru OS - New Payment Restru Write Off Restru OS -
-0.5
9M20 2020 2021 2022 1Q23 1H23 9M23 -30.0%
1H23 Restructuring Unflagged 9M23
Total Monthly % to Total Borrowers
26
Page 27
COVID-19 RESTRUCTURED LOAN – BANK ONLY (2/2)
OS by Segment (IDR Tn) Covid-19 Restructured Loans by Stage
120 .0%
200 .0 186.6 200 .0
1.3% 5.3%
180 .0
8.4 157.0
180 .0
100 .0%
5.1 3.0% 9.3% 11.1% 12.7% 9.7%
160 .0 160 .0
7.5% 16.1%
19.4 80. 0%
3.9 116.5
140 .0 140 .0
82.4 107.2
120 .0
99.8 120 .0
67.6 83.2 19.4 60. 0%
19.4 2.7
100 .0 100 .0
10.5 2.6 18.7 70.9 95.7%
80.0
2.6 17.5
80.0
87.1% 90.7% 88.9% 87.3% 90.3%
2.2 49.4 40. 0%
83.9%
60.0
8.4 45.1 41.9 17.6 60.0
34.5 1.8
40.0
80.2 6.5 7.0 28.0 40.0
57.7 6.3 20. 0%
5.6 4.9
20.0
33.7 30.4 37.9 20.0
23.3 18.6
- -
0.0 %
2020 2021 2022 1Q23 1H23 9M22 9M23 2020 2021 2022 1Q23 1H23 9M22 9M23
Micro Consumer Small Medium Corporate Stage 1 Stage 2 Stage 3
Covid-19 Restructured Loans by Collectability Covid-19 Loan Provisioning
120 .0% 50.0 40. 0%
34.7%
1.3% 45.0
35. 0%
100 .0%
5.5% 5.3% 28.9%
9.3% 11.1% 12.7% 9.7% 16.1%
40.0
27.1%
10.4% 25.3% 25.7% 30. 0%
16.0%
35.0
80. 0%
21.4% 18.9%
27.3%
25. 0%
30.0
31.0% 25.0
17.7% 20. 0%
60. 0%
20.0
93.2% 15. 0%
84.2%
74.7%
40. 0%
7.3%
15.0
67.5% 71.4%
60.1%
10. 0%
20. 0%
52.9% 10.0
5.0 %
5.0
13.6 27.8 27.1 27.1 24.1 29.9 24.6
- 0.0 %
0.0 %
2020 2021 2022 1Q23 1H23 9M22 9M23 2020 2021 2022 1Q23 1H23 9M22 9M23
Current SML NPL Provision (IDR Tn) Loan Coverage
27
Page 28
ULTRA MICRO &
MICRO BUSINESS
28
Page 29
ULTRA MICRO & MICRO ECOSYSTEM
Quantifying the opportunity and the network that is in place
Access to comprehensive Ultra Micro & Comprehensive Savings and Beyond
Micro Financing Products Banking Products
• Group Lending (PNM Mekaar): • Micro Savings: IDR 309.9 Tn (-0.3% YoY)
IDR 39.7 Tn (19.1% YoY), 14.9 mn borrowers • Micro Insurance (Life/ Health, House &
(14.1% YoY) Property): 26.9 mn insurance policies (9.8% YoY)
• Pawn Lending (Pegadaian): • Life/ Health: 12.6 mn policies (7.8% YoY)
IDR 54.7 Tn (10.3% YoY), 6.8 mn borrowers • House: 8.0 mn policies (11.9% YoY)
(4.5% YoY) +36.6mn +166mn • Property: 14.3 mn policies (11.6% YoY)
• Micro Loan: Micro • Gold Savings & Investment:
(8.2% YoY)
a) BRI Micro Loan: IDR 479.9 Tn (10.9% YoY), 3.2 mn customers & 7,641 kg gold OS (3.48%
14.2 mn borrowers (2.3% YoY) UMi & Micro Deposit
YoY)
b) PNM Ulamm: IDR 4.6 Tn (-27.4% YoY), 127K Borrowers Accounts • Mobile Banking (BRIMo): 29.8 mn users (38.5%
borrowers (-35.6% YoY) YoY)
c) Pegadaian (Non-Pawn Lending): IDR 10.9 Tn
(71.6% YoY), +547K borrowers (100.9% YoY)
Wider Points of Access
Physical Outlets Co-Location BRI Financial Advisors
Physical Outlets BRILink Agents
+15.3K units (-0.7% YoY) (Senyum Outlets) E-Channels +74.2K (4.7% YoY)
(BRI Micro Outlets +6.8K (-5.8% YoY); +628 units (BRI +26.9K (-0.4% YoY);
1,016 units +699K Agents
Pegadaian +4,087 (0.0% YoY); PNM (+108K YtD) Pegadaian +2.5K (32.2% YoY);
(0.3% YoY) (17.0% YoY)
+4,553 (8.1% YoY) PNM +44.8K (6.8% YoY)
29
Page 30
THE ULTRA MICRO ECOSYSTEM
UMI Loans Up 11.6% YoY to Rp 590.7 Trillion
Loan Composition - Outstanding (IDR Tn) # Borrowers (in Mn)
11.6% YoY 8,2% YoY
35.3 36.6
590.7 33.8
551.3 529.2 11.3% 31.0
483.9 45.3
42.6 40.7 65.6 15.0
59.1 17.3% 14.0 13.1 14.3%
34.5 55.9 11.2
52.4
6.6 7.0 6.8 7.4 8.3%
449.6 432.6 479.9
351.4 397.0
307.7 10.9%
274.3 13.3 14.4 13.9 14.2
11.7 2.3%
10.0 10.5
2018 2019 2020 2021 2022 9M22 9M23 2018 2019 2020 2021 2022 9M22 9M23
BRI Micro Pegadaian PNM BRI Micro Pegadaian PNM
Key Ratios
BRI Pegadaian PNM
Description
3Q21 9M22 2022 9M23 3Q21 9M22 2022 9M23 3Q21 9M22 2022 9M23
Cost of Fund 2.1% 1.7% 1.9% 2.7% 6.2% 4.7% 4.9% 5.8% 8.7% 7.8% 7.6% 7.0%
Opt. Expenses to
76.4% 62.6% 64.2% 64.8% 75.5% 60.1% 71.1% 65.2% 88.1% 89.7% 90.3% 85.6%
Opt. Income
CIR 42.1% 39.0% 42.0% 37.6% 63.0% 71.9% 63.7% 56.1% 76.7% 62.0% 67.7% 70.2%
Pegadaian, PNM’s Cost Of Fund (COF) calculated by dividing annualized interest expense with average monthly Interest-Bearing Liabilities
*PNM’s financing outstanding include financing disbursed to LKMS (Syariah Micro Financing Institution) and venture capital 30
Page 31
BRI MICRO BUSINESS PERFORMANCE
Increasing Kupedes Composition and Customer Base
Micro Loan Outstanding (IDR Tn) # Borrowers (in Mn) # Borrowers per Loan Officer
600 .0
16. 0
479.9 14.4 14.3 13.9 14.2
469.5 13.3 528
500 .0
449.6 0.6 0.6 528 515
432.6 14. 0
0.6 0.6 488
397.0 66.9 65.5 11.7 0.7
68.9 2.8 2.6 430
10.5 4.1
12. 0
400 .0
351.3 70.3 10.0 0.8 2.8 4.5
307.7 74.9 356 375
10. 0
0.9
274.3 129.2 182.8 0.9 3.4
300 .0 79.9 127.9 201.4
83.2
8.0
131.8 3.6 3.9
78.7
200 .0
144.7 6.0
10.9
9.8 10.7
9.6 9.1
131.3 155.1 251.5 219.8 234.4 213.0
4.0
7.5
100 .0
190.3 5.5 5.7
126.7 2.0
64.3 69.3
0.0
0.0
2018 2019 2020 2021 2022 1H23 9M22 9M23 2018 2019 2020 2021 2022 1H23 9M22 9M23 2018 2019 2020 2021 2022 9M22 9M23
KUR Kupedes Briguna KUR Kupedes Briguna
Growth YoY Growth YoY Loan OS per Loan Officer (in Bn)
17.8
Product 2018 2019 2020 2021 2022 1H23 9M22 9M23 Product 2018 2019 2020 2021 2022 1H23 9M22 9M23 16.5 16.0
14.6
KUR 8.5% 7.9% 82.8% 50.1% 32.2% -2.5% 35.8% -9.1% KUR 7.4% 4.5% 31.4% 31.1% 10.8% -8.7% 15.8% -14.2% 12.9
11.0
9.8
Kupedes 20.6% 18.1% -6.8% -8.9% -1.9% 43.0% -2.4% 57.5% Kupedes 7.2% 8.7% -12.8% -19.5% 2.7% 57.3% -7.9% 71.6%
Briguna 10.4% 5.8% -4.0% -6.3% -8.0% -7.1% -7.5% -6.9% Briguna -1.9% -3.9% -9.8% -10.1% -13.6% -10.7% -13.1% -10.4%
Total 14.5% 12.2% 14.2% 13.0% 13.3% 10.4% 13.9% 10.9% Total 6.5% 5.3% 11.4% 13.5% 7.8% 3.7% 8.9% 2.3% 2018 2019 2020 2021 2022 9M22 9M23
Bank only numbers 31
Page 32
APPENDIX
32
Page 33
DIGITAL INITIATIVES
33
Page 34
BRIMO
Accelerating the Shift to Digital Transactions
Outstanding performance with significant double-digit growth
10-in-1 Ecosystem
# Users (in Mn) # Financial Trx (in Mn) Trx Value (IDR Tn)
Financial Superstore
38.5% YoY 78.1% YoY 65.2% YoY
Cross Border Transaction
Customer Engagement 35.0
2,50 0
3,50 0.0
2,184.1 2,984.2
29.8 3,00 0.0
30.0
2,00 0
High downloaded 25.0
2,50 0.0
mobile banking with 21.5
the highest app rating 20.0
1,50 0
1,226.0
2,00 0.0
1,806.5
1,50 0.0
15.0
App Store 1,00 0
10M+ downloads
4.7 123k reviews
1,00 0.0
10.0
500
500 .0
5.0
Google Play Store -
-
-
10M+ downloads 9M22 9M23 9M22 9M23 9M22 9M23
4.5 1.1M reviews
34
Page 35
BRISPOT
Improving Productivity and Efficiency by Digitalizing Business Process through BRISPOT
Boost Productivity & Unleash the Potential
01278781
Digitalization
+140 Impactful Features Before After
+100K Users Micro +65
(loan officers & approvers) Small +34 • Double work • All in one go
Consumer +43 • Variative financial assessment • Standardized template
• No cross-selling module • Build-in cross-sell module
BRISPOT Features
Automation
Boost Productivity
Before After
• Sales & pipeline • Working area mapping
• Portfolio balancing dashboard • UMi corner integration
• Manual prescreening
• Profit & loss portfolio • BRILink partnership • Automatic prescreening
• Manual disbursement
• Automatic disbursement
Increase Efficiency • Manual reminder by loan
• SMS & email notifications
officer
• Automated pre-screening • Pick up transaction
• Less paper • BRISURF integration
• All in one application • Online loan application
letter register Simplification
Strengthen Risk Management Before After
• Monitoring & evaluation • Assistance
• Monitoring point to point • Early warning system • Paper based loan application • Paperless loan application
• “Activity Today” • Loan collection • Manual mapping • Geo-tagging technology
• KUR limit monitoring • Approval process in 20 days • Less in 1 day
35
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BRILINK AGENT
Redefining Agent’s Roles to Tap the Untapped
# Agents (In Thousand) Fee Income (IDR Bn)
720 .0
17.0% YoY 698.7
1,13 0.0
1,12 0.0
5.4% YoY 1,115.8
1,11 0.0
700 .0
1,10 0.0
680 .0
1,09 0.0
660 .0
SERVICES
1,08 0.0
1,058.9
640 .0
620 .0
597.2 1,07 0.0
1,06 0.0
600 .0
1,05 0.0
580 .0
1,04 0.0
560 .0
1,03 0.0
540 .0
9M22 9M23 9M22 9M23
# Transactions (In Mn) Transaction Value (IDR Tn)
-0.7% YoY 1,20 0.0
20.8% YoY 1,163.3
810 .0
799.0 1,15 0.0
1,10 0.0
793.5
963.0
800 .0
1,05 0.0
1,00 0.0
790 .0
950 .0
780 .0
770 .0
900 .0
850 .0
800 .0
S T R AT E G Y
760 .0
750 .0
700 .0
750 .0
9M22 9M23 9M22 9M23
S T R AT E G Y
Loan Referrals (In Thousand) CASA (IDR Tn)
258.6% YoY
2,50 0.0
2,155.4 21.0
20.5
20.5
9.1% YoY
2,00 0.0
20.0
1,50 0.0
19.5
19.0
18.8
601.1
1,00 0.0
18.5
500 .0
18.0
17.5
-
9M22 9M23 9M22 9M23
36
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PNM & PEGADAIAN Confidential - Internal Only 37
Page 38
PT. PERMODALAN NASIONAL MADANI
Leading Women’s Group Lender in Indonesia
Balance Sheet Highlight Loan Composition
As of 9M23
2021 2022 9M22 9M23 g YoY
Total Assets 43,712 46,833 46,051 50,887 10.5%
Loan Outstanding (Gross) 34,523 42,595 40,672 45,262 11.3%
10%
Total Liability 37,274 39,405 38,877 42,249 8.7%
Total Equity 6,438 7,429 7,174 8,638 20.4% 2% Mekaar
ULaMM
Income Statement Highlight Others
2021 2022 9M22 9M23 g YoY
Net Interest Income 8,425 10,236 7,173 8,768 22.2% 88%
Other Operating Income 236 314 164 223 35.7%
Overhead Cost 4,739 7,141 4,549 6,312 38.7%
Net Income After Tax 845 992 736 1,206 63.9% Products & Services
▪ Mekaar group lending for female borrowers
▪ ULaMM Micro lending
Key Ratios
2021 2022 9M22 9M23 g YoY Extensive Network & Sales Force
NIM 20.2% 26.3% 25.2% 25.9% 0.7%
COF 8.6% 7.6% 7.8% 7.0% -0.8% Extensive network with
BOPO 88.3% 90.3% 89.7% 85.6% -4.0% +4,500 outlets across
CIR 74.6% 67.7% 62.0% 70.2% 8.2% Indonesia
The largest group lending provider in Indonesia
Strong sales force with
▪ Catering to more than 14.9 Mn borrowers +44,000 account officers
▪ Providing loans that are aimed to empower underprivileged women
38
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PT. PEGADAIAN
Market Leader in Indonesia’s Pawn Industry Services
Balance Sheet Highlight Loan Composition
2021 2022 9M22 9M23 g YoY As of 9M23
Total Assets 65,776 73,330 69,407 80,743 16.3%
Loan Outstanding (Gross) 52,420 59,053 55,947 65,617 17.3% Gadai
Total Liability 39,517 44,911 41,969 49,323 17.5% 17 Non Gadai
Total Equity 26,259 28,418 27,438 31,420 14.5%
83
Income Statement Highlight
2021 2022 9M22 9M23 g YoY
Net Interest Income 10,622 11,645 8,715 9,130 4.8%
Other Operating Income 1,523 1,638 1,220 1,361 11.6% Products & Services
Overhead Cost* 7,627 8,463 5,967 5,884 -1.4% ▪ Pawn financing ▪ Gold savings
Net Income After Tax 2,427 3,299 2,375 3,219 35.5% ▪ Micro-fiduciary ▪ Others (e.g., money
financing transfers, payments)
*Excluding Cost of Good Sold for gold
Key Ratios Extensive Network & Sales Force
2021 2022 9M22 9M23 ∆YoY
NIM 19.4% 21.2% 21.4% 19.6% -1.8%
COF 6.0% 4.9% 4.7% 5.8% 1.1%
BOPO 77.5% 71.1% 71.9% 65.2% -6.7%
+ 4,000 Outlets +2,500 sales force
CIR 62.8% 63.7% 60.1% 56.1% -4.0%
The oldest pawn service provider with more than 120 years experience +7.4 Mio Gold Savings
▪ The largest pawn service provider based on Asset & Loan Active +3.2 Mio Active Cust. with
▪ Leader in pawn lending with market share of more than 95%, catering Borrowers +7.6 Tonne gold outstanding
to more than 7.4 Mn borrowers
39
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ESG INITIATIVES
40
Page 41
VALUE BEYOND PROFIT, COMMITMENT TO ESG
At The Forefront of ESG Implementation
BRI Sustainability Journey BRI Sustainable Loan Portfolio (IDR Bn)
9M23 65.1% 67.5% 66.6% 66.1%
2022 62.5%
920 .0 70. 0%
• Participant of United Nations 820 .0
• Established ESG Roadmap Global Compact (UNGC) 750.9 60. 0%
720 .0
694.9 671.1
• Issued Green Bond (IDR 5 Tn) • Committed to Science Based 614.2 50. 0%
620 .0
• Signatory of Partnership for Carbon Target Initiatives (SBTI) to 550.4
Accounting Financials set Net Zero Target 520 .0
40. 0%
• Issued TCFD Report 669.1
• New Green office Building
420 .0
616.1 595.0
484.4 543.4 30. 0%
• BRI Menanam Program
320 .0
• Pulp & Paper Loan Policy
220 .0
20. 0%
• Conducted Financed Emission 2021
120 .0
81.8
10. 0%
Calculation 20.0
65.9 70.8 78.8 76.1
• Established The Ultra Micro Ecosystem
• Established Dedicated ESG Work Unit
(8 0.0)
2020 2021 2022 9M22 9M23 0.0 %
2020 • Established ESG Committee Green Portfolio Social Portfolio % Comp. to Bank Only Total Loan
Conducted Green House Gas • Constituent of Indonesia ESG Leader Index
(GHG) Emission Calculation Empowering Women Through Ultra Micro Ecosystem
2019 16.0
Mekaar Female Borrowers 45. 0
Mekaar Loan Outstanding
• Issued sustainability bond ($ 500 Mn) 15.0
(In Mn) 40. 0
(IDR Tn)
• Submitted Sustainable Finance Action Plan
35. 0
14.0
30. 0
2019 - 2024 13.0
2017 12.0
25. 0
• Issued internal ESG Policies 14.9 20. 0
39.7
33.3
11.0
(General Sustainable Finance & 13.0 15. 0
+42,000
10.0
14.1%
10. 0
CPO Policy) 9.0 19.1%
• First Mover on Sustainable Banking 8.0
5.0
Female Mekaar
Account Officer
0.0
9M22 9M23 9M22 9M23
2013 Through PNM Mekaar, BRI strengthens its contribution to empowering
Published 1st Sustainability Report underprivileged woman
41
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BRI SUSTAINABILITY STRATEGY
Key ESG Initiatives
First Bank in Indonesia as Signatory of Partnership
for Carbon Accounting Financials (PCAF) Q2’22
Issued Green Bond (IDR 5 Tn)
“World Class Sustainable Banking
Issued Policy on Fixed Asset Management & ESG-
Group focusing on Environmental,
“The Most Valuable Banking Group Based Procurement
Social, and Governance
in Southeast Asia
dimensions” Issued Respectful Workplace Policy
and Champion of Financial Inclusion”
Q3’22 Green Campaign Implementation (Zero
Waste to Landfill)
New Green office Building “BRILIAN Tower”
Sustainability Pillar Strategy BRI Menanam Program
Issued Data Management Policy
Environmental Social Governance Installation of the Public Electric Vehicle Q4’22
Onboarding Climate Empowering the Maintaining good Charging Station
Change strategy community corporate Electric vehicles as operational vehicles
--------------------------------- ---------------------------- governance Issued Pulp & Paper Loan Policy
● Green banking policy ● Human capital ------------------------------- Conducted Financed Emission Calculation
● Environmental risk management ● Product governance
management ● Human rights ● Corporate New Regulation on Principles of Human
● Carbon emissions ● Financial inclusion governance Rights in Employment
Q1’23
management ● Social responsibility ● Business ethics Solar Panel Installation at BRI Tower Medan
● Operational eco- ● Information/cyber
Participant of United Nations Global Compact (UNGC)
efficiency security system
Submit Commitment to Science Based Target
Initiatives (SBTI) Q3’23
Issued Task Force on Climate-Related Financial
Disclosures (TCFD) Report
Set Net Zero Target
42
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ENVIRONMENTAL
OUR JOURNEY TO NET ZERO EMISSION
Carbon Emissions Management BRI Net Zero Emission Timeline
Starting in 2022, we measured the Scope 3 emissions coming from our investment and financing. BRI is BRI uses SBTi's approach for establishing emissions reduction targets.
the first institution in Indonesia to join PCAF and utilize its methodology to measure financed emissions. We are the first Indonesian financial institution to submit commitment
letter seeking to obtain the SBTi’s approval
Scope 1 & 2 Emissions (tons CO2eq) Scope 3 Emissions (tons CO2eq)
360,135 Scope 1 & 2 Scope 3 Financed
Financed
11,115,719 Emissions Emissions
Emissions
Purchased Goods
132,235 19,135
and Services
Waste Generated 9,680 492,370 tons CO2eq
Baseline year 11,115,719 tons CO2eq
Scope 1 Emissions Scope 2 Emissions Business Travels 3,267 2022
Expanding our green
Financed Emission by Asset Class (tons CO2eq) Expanding operational financing portfolio, while
eco-efficiency engaging and supporting
Business Loans 6,671,611 program to reduce our portfolio to be aligned
Electricity Generation Project Finance 3,872,508 42% operational with the Government of
Bond Investment 434,816 emissions against Indonesia’s plan on Net
Commercial Real Estate 136,403 Near-term Target Zero Emission target by
baseline
Listed Equity 381 2030 reducing 25.1% - 46.4%
emissions intensity
Financed Emission by Industry Sector (tons CO2eq)
Scope 3 Financed
- 1,00 0,000 2,00 0,000 3,00 0,000 4,00 0,000 5,00 0,000 6,00 0,000 7,00 0,000 8,00 0,000
Electricity, gas, stream and air conditioning supply 7,141,849 Operational Net
Manufacturing 2,487,439 Emission Net Zero
Zero Emission
Mining and quarrying 1,027,462 Emission Target
target achieved
Agriculture, forestry and fishing 222,456 Achieved
Real estate 136,403
Net Zero Achieved
Construction 94,265 2050
Transportation and storage 4,103
Finance an Insurance 1,744
43
43
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ENVIRONMENTAL
GREEN INITIATIVES TO SUPPORT NET ZERO ACHIEVEMENT
Operational Eco-efficiency Program Sustainable Business Activities (IDR Tn)
Reduce our operational emissions by expanding our operational eco-efficient Reduce emissions from financing by increasing sustainable financing
program to support net-zero achievement proportion focused on green sectors
65.1% 67.5% 66.6% 66.1% 11.9% YoY
Green Transportation 920 .0
62.5% 70. 0%
750.9
820 .0
60. 0%
720 .0
694.9 671.1
614.2 50. 0%
109 Unit 125 Unit 550.4
620 .0
520 .0
Electric cars Electric motorcycle 40. 0%
420 .0
616.1 595.0 669.1
320 .0
484.4 543.4 30. 0%
220 .0
20. 0%
120 .0
Public Electric vehicle charging 20.0
65.9 70.8 78.8 76.1 81.8
10. 0%
station at the Head Office
2020 2021 2022 9M22 9M23
(8 0.0) 0.0 %
Green Portfolio Social Portfolio % Comp. to Bank Only Total Loan
Green Premises
MSME Green Transportation
Rp669.1 Tn Rp12.9 Tn
BRILIAN Tower is a 37 floor
Green Building that received 30 Working Unit Renewable Energy
with Solar Panels Environmentally sustainable Rp6.0 Tn
Gold category greenship
management of living natural
certificate
resources and land use Others
Rp51.5 Tn Rp11.4 Tn
Avoidance & Removal Emission ESG Bond Sustainability Linked Loan
Waste Management BRI Menanam
System (BRI Tree Planting) has distributed
164.375 kg CO2 eq of 676,216 tree seedlings and reached
emission avoided in 2022 IDR 5 Tn USD 500 Mn USD 1 Bn
2,197 villages throughout Indonesia
Green Bond Sustainability Bond Sustainability Linked Loan
Page 45
ENVIRONMENTAL
BRI ESG FUNDING
Sustainability Bond Green Bond BRI ESG Bond Outsanding
First Sustainability Bond in Southeast The Largest PUB (Shelf Registration) of Green As of 9M 2022
Asia with RegS Format Bond in Indonesia
Total Bond Outstanding Rp 34.1 Tn
Transaction Highlight
Transaction Highlight • Issue date : 21 July 2022
• Issue date: 21 March 2019 • Size Phase I : IDR 5 trillion
• Size: $500 Million • Maturity : 5 years
• Maturity : 5 years 37%
(As of December 2022) Proceeds (As of December 2022) ESG Themed
Bond
26% Allocation 20%
Proceeds 63% Other Bond
Allocation Green Project Green Project
Social Project Social Project
74% 80%
As of 9M 2023 Growth ESG
Bond: 25.1%YoY
Contribution Contribution
to SDGs to SDGs Total Bond Outstanding Rp 25.2 Tn
Sustainability-Linked Loan
37% ESG Themed
Bond
Transaction Highlight Contribution
Other Bond
• Signing Date : 26 August 2022 to SDGs 63%
• Facility Size : USD 1 billion
The First Asia Financial
• Sustainability Performance
Sector launching Target (SPTs) : % Micro Loan
sustainability-linked loan Composition
• Tenor : 4 years
45
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ENVIRONMENTAL
BRI SECTORAL LOAN POLICY
BRI Loan Policy Palm Oil Loan Policy Pulp & Paper Loan Policy
Committed to no deforestation practices, including land
BRI Negative List Loan Policy, Committed to no deforestation practices, clearing and no exploitation
BRI is committed to having no including land clearing and no exploitation
exposure in several sectors, Indonesia Timber Legality Assurance System Certification
including but not limited to: Environmental management permits, including
Environmental Management Efforts - Environmental High Conservation Value /High Carbon Stock Assessment
Illegal Logging Monitoring Efforts, Environmental Impact Analysis
Has ISPO/RSPO certification or still in the Green Industry Certification
Cultivation of Marijuana &
Narcotics productions and process of obtaining ISPO certification
Forest Stewardship Council
trading
Forced labor, child Gold or Green Predicate on Proper Rating Indonesian Forestry Certification Cooperation
exploitation, human
Gold or Green Predicate on Proper Rating
rights violation
Money Laundering
% Palm Oil Loan to % Pulp & Paper Loan to
Destroying historical Total Bank Only % Palm Oil Loan Breakdown Total Bank Only % Pulp & Paper Loan Breakdown
and archaeological 120 .0%
building
105 .0%
7.5 % 100 .0%
Trading protected animals 6.9% 9.0% 7.7% 7.3% 7.0% 0.7%
1.7% 0.8% 0.8%
1.8%
7.0 %
100 .0%
21.6%
2.0 %
6.5% 80. 0%
20.9% 26.4% 24.5%
Fishing business using 6.5 %
6.2%
1.8 %
1.5%
fishing gear that is 5.8%
1.6 %
1.4% 1.3%
95. 0%
11.6% 13.4%
60. 0%
14.5% 14.2%
1.4 %
6.0 %
prohibited by regulation 5.5 %
1.2 %
90. 0%
1.0 %
40. 0%
70.1% 70.7% 66.2% 68.5%
Other fields/sector
0.8 %
85. 0%
5.0 %
0.6 %
according to applicable
20. 0%
4.5 % 0.4 %
80. 0% 86.7% 85.9% 84.7% 85.0%
law
0.2 %
4.0 %
0.0 %
0.0 %
75. 0%
2021 2022 1H23 9M23 2021 2022 1H23 9M23 2021 2022 1H23 9M23 2021 2022 1H23 9M23
Plantation Industry Trading
Industry Publishing & Printing Trading
Note: All numbers are bank only, unless stated as consolidated
*Only Applicable for Medium and Corporate Segment
5.0 0%
46
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SOCIAL
HUMAN CAPITAL PERFORMANCE HIGHLIGHTS
Employee Composition Gender Equality Employee Engagement Index
% Management 3.7
Gender
3.6
3.46 3.48
202 2
38% 62% 110 %
2022 3.39
3.5
100 %
3.4 3.33
Women Men 90%
22.1% 22.3% 22.5% 23.1%
0% 20% 40% 60% 80% 100 % 120 %
24.8% 3.3
80%
3.14
20 – 24 30 – 34 40 – 44 50 - 54 70%
3.2
0.3% 34.0% 11.5% 7.1% 60%
3.1
Age 50%
77.9% 77.7% 77.5% 76.9% 75.2%
3
2.9
2022
202 2
40%
30%
2018 2019 2020 2021 2022
25 – 29 35 - 39 2018 2019 2020 2021 2022
45 – 49
0%
12.2% 10% 20% 30% 40% 50%
29.3%
60% 70% 80%
5.6%
90% 100 %
Men Women
Employee Turnover Rate
Respectful Workplace Policy % BOD -1 & -2 3.2
2.83
110 .0%
▪
2.7
To ensure a safe, comfortable, and harmonious work 100 .0%
2.29
environment 90. 0%
11.8% 13.4% 16.0% 17.0% 16.8%
2.2
1.73 1.84
▪ Respect and protect human dignity and promote 80. 0%
1.7
mutual respect 1.12
▪ Creating an inclusive, conducive and productive 88.2%
1.2
86.6%
70. 0%
84.0% 83.0% 83.2%
work environment 60. 0%
0.7
▪ Free of discrimination, harassment, bullying, and all 50. 0% 2018 2019 2020 2021 2022
form of violence by upholding human rights 2018 2019 2020 2021 2022
Men Women
47
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SOCIAL
BRI FINANCIAL INCLUSION
BRI is committed to providing access to customer-centric and affordable financial products & services to underserved groups, including but
not limited to low-income individuals, underprivileged women, and other underserved groups.
Extensive Access to Underserved Groups Customer Centric & Affordable Financial Products & Services
Insurance
Savings Products Lending Products
Products
7,980 666,038 +1,000 BRIMO
BRI carries out continuous Research and Development
Financial and
Physical Outlets BRILink Agents Senyum Outlets beyond banking
on its products and services to optimize financial
(BRI-Pegadaian- services for inclusion and literacy
PNM) customer needs
Community Empowerment Programs Customers’ Financial Well-Being Protection
Village empowerment program with the aim of creating BRI introduced Digital Advisors to promote financial and
economically independent villages and able to grow digital literacy of the customers. The initiative aims to
sustainably improve customers' digital savviness and assists them in
doing banking transactions through BRI digital platforms
Business Cluster Empowerment Programs which formed
based on similarities in business, fields and interests Digital Acquisition: Encourage customers to do banking transactions
The Online Platform, which can be accessed through the through BRI digital platform, e.g. opening digital savings, using BRIMO
website & application, aims to upscale MSME through a for daily financial transactions, etc.
series of integrated empowerment programs Digital Transaction: Assist customers in performing Financial
transactions through BRIMO, etc.
Integrated Commodity Platform that provides transactions
convenience and various solutions for commodity Secured Digital Transaction: Educate customers to have secure
ecosystem players in a holistically integrated BRI services financial transactions, ie. by maintaining personal data confidentiality
such as PIN, OTP, CVV, etc.
48
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SOCIAL
ULTRA MICRO ECOSYSTEM EMPOWERING UNDERPRIVILEGED WOMEN
PNM Mekaar Business Capacity Development Initiatives
PNM Mekaar provides access to capital, assistance, & capacity building
programs for Underprivileged Women Community & SME, especially female
housewives.
Training for Borrower Preparation
Carried out for 3 days
As of 9M’2023 Training Program for prospective customers of prior to loan
PNM Mekaar disbursement
+14.9Mn
14.1% YoY
+42,000 Female Borrowers
Mekaar Account Meaningful Weekly Group Meeting
Officer Meaningful Weekly Group
+IDR 39.7 Tn 19.1% YoY Meeting (PKM Bermakna) is
All Mekaar Account Officers
are female Loan Outstanding carried out by Mekaar Loan
Officer through weekly group
meeting activities
Women Empowerment as part
of the Meeting Schedule
• Importance of saving
• Reading business
opportunities
• Managing business and
family finances, etc.
49
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GOVERNANCE
GOVERNANCE PERFORMANCE HIGHLIGHTS
Customer’s Data Privacy & IT
BRI Governance Rating Board Composition Security Management
97. 00
Corporate % Independent Board of Commissioners 1 Dedicated Data Management &
95.18
96. 50
96. 00
95.10
Governance 95. 50
95. 00
110 .0%
IT Security Division
Perception 94. 50
93.25 100 .0%
94. 00
Index 93. 50
93. 00
90. 0%
Enterprise Data Information Security
(CGPI) 92. 50
37.5% 37.5%
30.0% Management Division Division
92. 00
80. 0%
40.0% 40.0%
Specifically handles Data Specifically handles Cyber
2020 2021 2022 70. 0%
Management Security
60. 0%
The highest CGPI Score among others SOE Bank, with an
increase in score from 93.25 (2019) to 95.18 (2022)
50. 0%
62.5% 62.5%
70.0% 2 IT Security Certified
40. 0%
60.0% 60.0%
certified PA-DSS ISO 27001:2013
Top 3 Public Listed Companies in 30. 0%
2018 2019 2020 2021 2022 (Payment Application- For Big Data, Open API, Card
Indonesia in the ASEAN Corporate
Data Security Production Managing Event &
Governance Scorecard (ACGS) Standard) for BRI’s
Independent Non Independent Cyber Threat Monitoring,
Direct Debit API Spacecraft Operation & Data
The number of Independent Commissioners is
Center Facilities
ESG Governance at BRI above FSA regulations which is a minimum of 50%.
Grievance System
110 .0%
Board Gender Diveristy
Dedicated ESG Division ESG Committee 100 .0%
BRI provides a whistleblowing system facility that
Established an ESG Established a dedicated ESG functions as a channel for reporting indications of
15.0%
Division, a dedicate Committee led by the CEO.
90. 0%
20.0% 18.2% 18.2% 22.7% violations and complaints/ grievances against BRI’s code
working unit that is The Committee is responsible 80. 0%
of ethics.
responsible for ESG and in Review and evaluating the 70. 0%
Whistleblowing System
Sustainable Finance implementation of ESG 85.0% 80.0% 81.8% 81.8% 77.3% PO BOX 1895 JKP 10900 0811 8200 600
implementation at BRI policies and initiatives. 60. 0%
Establish and recommend 50. 0%
whistleblower@corp.bri.co.id
ESG work programs. 2018 2019 2020 2021 2022
https://www.bri.co.id/whistleblowing-system
Men Women
50
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GOVERNANCE
BRI ESG RATINGS
Sustainalytics MSCI Other ESG Ratings
1 ASEAN Corporate Governance
• Overall Score: 110.2
ESG Risk Rating ESG Rating • Top 3 public listed company in
Low Risk A A Indonesia with top score above 97
Medium Risk 18.8
20.9 BBB 2 CGPI (Corporate Governance
High Risk
Perception Index)
30.0
• CGPI Score: 95.18, considered as the “Most Trusted
2020 2021 2022 2021 2022 2023 Company”
• The score increased from 93.25 in 2019
Last Update: Oct 5, 2022
Indonesia’s Stock Market Indices
S&P Global 1 SRI-KEHATI
SRI-KEHATI Index is the Sustainable and
Responsible Investment (SRI) Biodiversity
index that uses the principles of ESG
90th 91st • Classified as “ESG Quality 45” and “ESG Sector
Leaders”
72nd
63
Percentile 63 2 IDX ESG Leaders
Rank Measuring the performance of
52 companies that have good ESG
ESG assessments and are not involved
Score: in significant controversy
BRI has been a constituent of the IDX ESG
2021 2022 2023 Leaders Index (ESGL) since March 2021
51
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INVESTMENT PROPOSITION
52
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BRI INVESTMENT PROPOSITIONS
01
Sound Business Strategy, Focus on Flagship Segments
02 Hybrid Bank Business Model
03
Solid Foundation for Low-cost Fund
04 Robust Capital Management to Ensure Optimum Return
05
Value Beyond Profit, Commitment to ESG
53
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BRI'S CORPORATE STRATEGY
Quality of Growth
1 Productive asset growth while maintaining quality by focusing on high yield
asset expansion and accelerating new growth drivers
CASA Sustainability
2 Increasing CASA market share by building ecosystem through territorial control &
referrals and relying on transaction tools & Cash In / Cash Out capability
The Most Valuable BRI Group Synergy
3 Cohesive synergies among entities as an anchor of solid sustainable growth; Cross
Banking Group in selling between segments and products, creating solutions for customers across the
value chain
Southeast Asia &
ESG Principles Implementation
Champion of 4 Committed to implement business management principles that adhere to the values
Financial of ESG in order to have a positive impact on the community (deliver value beyond
profit)
Inclusion
Excellence Enablers
5 Strengthen employee capabilities, system reliability, services and networks, as well
as data analytics to provide superior quality banking services
54
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FOCUSED GROWTH ON THE ULTRA MICRO & MICRO SEGMENTS
Well-positioned To Serve The Growing Financing Needs of the Segment
National Posture of Indonesian Enterprises and Individuals
1
Corporation: ~5.6k business with sales of >Rp50 Bn and working capital of Corporate/ 1 High Net Worth Individual: ~129k people with assets of
>Rp50 Bn Individual >IDR500 Bn
Medium: ~44.7k businesses with sales of >Rp15 Bn – Rp50 Bn and working Premium: ~1.1 Mn people with assets of >IDR500 Mn
2 Medium Premium 2
capital of >Rp5 Bn – Rp10 Bn
3 Small: ~194.0k businesses with sales of >Rp2 Bn – Rp15 Bn and working
Middle 3 Middle Class: ~90mn people with assets of IDR50mn –
capital of >Rp1 Bn – Rp5 Nn Small IDR500mn
Class
4 Micro & Ultra Micro 4 Micro
• ~64mn businesses, incld. ~45mn businesses eligible for Ultra • c. ~165mn people with ample knowledge of basic saving
Micro loans product, but low for investment and insurance
• Access to group loans or KUR only • Start using digital banking technology
Ultra Micro
Mass • Mostly reliant on informal funding
Micro and Ultra Micro
Large Customer Base Extensive Banking Channels Comprehensive Product Offerings Digitized Business Process
BRI Micro & +36.6 Mn Borrowers • 6.809 BRI Micro Outlets ❑ Lending: Individual, ❑ Insurance: Life and • BRISPOT Micro, Pegadaian Selena,
Ultra Micro (+14.2 Mn BRI, +15.0 Mn • 4.086 Pegadaian Outlets Group Lending, Pawn Health Insurance, PNM Digi (Digital Loan Underwriting
Comprehensive PNM, +7.4 Mn Pegadaian • 4482 PNM Outlets Lending General insurance System)
Business borrowers) • 698.717 BRILink Agents ❑ Deposits: Saving ❑ Investment: Gold • Senyum Mobile (cross referral system)
Account, Current Savings • BRILink Mobile (Mobile App for Brilink
Account, Time Deposit ❑ Other Services Agents)
Source: Ministry of Coorperatives and SMEs’s published data (2021) and BRI’s public filings 55
Page 56
HYBRID BANK BUSINESS MODEL
Combining Physical Presence and Digital Capabilities (Phygital) to Match Customer Journey
Key Characteristics of Ultra Micro & Micro Customers
Familiar with digital platforms,
1 although smartphone HYBRID BANK
penetration remains low
Digital Capabilities Physical Presence
Limited knowledge of financial
2 products beyond savings
account
Digitizing Core
7,849 Outlets
Digitize business process to boost
3 Cash still being the dominant
chosen method of
productivity & unleash the potential 1 1 628,749 E-Channels
transactions
4
Need a financial institution that
is “locally embedded” and is Digital Ecosystem Big Data & AI
698,717 BRILink Agents
able to “gain their trust” Build ecosystem to leverage new
liquidity, new opportunities and 2 BRIBrain Utilization
2 BRI Branchless Banking
new source of growth
Majority without stable
5 income
Prefers banking via an agent New Digital Propositions ~27k Experienced
6 rather than digital banking
model
Create independent greenfield digital bank 3 3 Financial Advisors
to tap the untapped segment and
+76k Umi Holding (incld. Pegadaian & PNM)
embedded in customer’s life
Open to beyond banking
7 offerings to help grow the BRI Digital Advisors (“Penyuluh Digital”)
business Digital Acquisition, Digital Transaction,
and Digital Education
56
Page 57
SOLID FOUNDATION FOR LOW-COST FUND
CASA Focused Strategies to Optimize Market Potential and BRI’s Large Customer Base
BRI CASA Performance CASA Potential
Broad range of products for various customers’ needs
• Savings - Simpedes, Simpedes Bisa, Simpedes UMi,
CASA: BRI vs Industry (IDR Tn) Financial Inclusion Index Customer Oriented Britama, Britama Bisnis, Britama Valas, , Britama
CASA Products Rencana, Britama Junio, Tabunganku
7,00 0
• Current Account - Giro BRI
80. 00%
6,00 0
Improve Customer Experience by
75. 00%
5,00 0
70. 00%
Re-Inventing re-inventing the business process
4,00 0
6.7% YoY 65. 00%
60. 00%
76.19%
85.10% Business Model (BRILink, BRIMO, Digital Saving)
3,00 0
4,704 5,017
67.80%
55. 00%
2,00 0
50. 00%
1,00 0
45. 00%
733 795 8.5% YoY Providing customized payment platform
-
40. 00%
2016 2019 2022
Digital Ecosystem to capture new growth potential (BRI
9M22 9M23
Platform Open API, BRIMOLA, Junio Smart)
BRI Industry
Source: National Survey of Financial
BRI’s CASA grew higher than the industry Literacy & Inclusion 2019 by Capturing the liquidity potential based
Financial Services Authority Close Loop on commodities (Pasar.id, Commodity
Ecosystem Payment Chain)
Cost of Fund* Money Outside Banks (IDR Tn)
Increasing share of wallet through BRI
Subsidiaries’
5.0 0%
898
3.54% 3.73% 3.53% 831 852
1,00 0
4.0 0%
900
760 Group Synergies (joint acquisition/cross
2.36%
2.84% 800
700
625 655 Synergies selling)
3.0 0%
2.06% 600
500
2.0 0%
400
300
1.0 0%
200
Culture & CASA Focus KPIs, Empowering Customer’s
100
0.0 0%
-
2018 2019 2020 2021 2022 9M23 2018 2019 2020 2021 2022 8M23 Capabilities Digital savviness by extending RM’s role as
Digital Advisors
*Source: Indonesia Financial Statistic
*Consolidated number
57
Page 58
9M23
BANK ONLY PERFORMANCE
58
Page 59
FINANCIAL HIGHLIGHT – BANK ONLY
Description 9M23 1H23 9M22 g QoQ g YoY 2022 2021 2020 2019 2018
Asset/Liabilities
Total Assets (IDR Billion) 1,726,003 1,684,763 1,575,760 2.4% 9.5% 1,750,995 1,572,761 1,421,785 1,343,078 1,234,200
Total Loans (Gross) (IDR Billion) 1,136,001 1,089,372 1,007,118 4.3% 12.8% 1,029,803 943,703 880,675 859,558 798,881
Total Deposits (IDR Billion) 1,285,883 1,240,371 1,132,673 3.7% 13.5% 1,300,776 1,127,849 1,052,664 969,750 898,033
Asset Quality
NPL (gross) 3.23% 3.10% 3.14% 0.1% 0.1% 2.82% 3.08% 2.94% 2.62% 2.16%
NPL (nett) 0.73% 0.76% 0.87% 0.0% -0.1% 0.73% 0.70% 0.80% 1.04% 0.92%
NPL Coverage 217.69% 236.47% 275.88% -18.8% -58.2% 291.54% 278.14% 247.98% 166.59% 200.61%
LAR 13.87% 15.09% 19.28% -1.2% -5.4% 17.11% 24.11% 28.26% 9.78% 9.17%
LAR Coverage 50.66% 48.63% 44.90% 2.0% 5.8% 48.00% 35.56% 25.77% 44.65% 47.20%
Credit Cost 2.47% 2.27% 2.88% 0.2% -0.4% 2.47% 3.42% 3.28% 2.47% 2.31%
Liquidity
CASA 63.81% 65.68% 65.65% -1.9% -1.8% 66.92% 63.30% 61.00% 59.01% 61.84%
LDR 88.34% 87.83% 88.92% 0.5% -0.6% 79.17% 83.67% 83.66% 88.64% 89.57%
Profitability
Net Profit (IDR Billion) 39,003 26,266 37,185 -51.5% 4.9% 47,828 32,215 18,353 34,029 31,702
Cost of Fund (CoF) 2.74% 2.66% 1.73% 0.1% 1.0% 1.87% 2.05% 3.22% 3.58% 3.47%
NIM 6.97% 6.81% 7.23% 0.2% -0.3% 6.80% 6.89% 6.00% 6.98% 7.45%
Cost to Income Ratio (CIR) 37.63% 38.96% 38.99% -1.3% -1.4% 41.95% 43.26% 45.40% 40.03% 29.56%
Operating Expense to Operating Income 64.77% 64.21% 62.59% 0.6% 2.2% 64.20% 74.30% 81.22% 70.10% 68.48%
ROA before tax 3.87% 3.93% 3.97% -0.1% -0.1% 3.76% 2.72% 1.98% 3.50% 3.68%
ROA after tax 3.09% 3.14% 3.21% 0.0% -0.1% 3.03% 2.23% 1.39% 2.77% 2.86%
ROE Tier 1 22.74% 23.11% 22.00% -0.4% 0.7% 20.93% 16.87% 11.05% 19.41% 20.49%
ROE B/S 18.06% 18.40% 17.58% -0.3% 0.5% 16.76% 14.09% 9.91% 17.77% 18.87%
Capital
Tier1 CAR 24.06% 23.53% 23.00% 0.5% 1.1% 22.30% 24.27% 19.59% 21.52% 20.15%
Total CAR 25.23% 24.65% 24.00% 0.6% 1.2% 23.30% 25.28% 20.61% 22.55% 21.21%
59
Page 60
BALANCE SHEET – BANK ONLY
Balance Sheet Optimization Supported by High Growth in Loans
(IDR Bn)
Items 9M23 1H23 9M22 g QoQ g YoY 2022 2021 2020
Cash and Cash Equivalent 115,360 116,641 106,512 -1.1% 8.3% 177,282 82,059 80,711
Total Earning Assets: 1,599,853 1,557,749 1,472,357 2.7% 8.7% 1,573,609 1,504,797 1,348,177
- Placement with BI & Other Banks 37,866 63,019 52,608 -39.9% -28.0% 88,710 66,922 74,533
- Receivables (Acceptance & Others) 68,283 47,712 54,595 43.1% 25.1% 47,075 39,856 35,872
- Loans 1,136,001 1,089,372 1,007,118 4.3% 12.8% 1,029,803 943,703 880,675
- Gov't Bonds & Marketable Securities 308,759 308,836 311,335 0.0% -0.8% 360,085 408,265 344,531
- Other Earning Assets 48,943 48,810 46,701 0.3% 4.8% 47,936 46,051 12,566
Earning Asset Provision: (83,095) (82,564) (89,389) 0.6% -7.0% (86,447) (82,868) (66,444)
- Loans Provisions (79,796) (79,940) (87,181) -0.2% -8.5% (84,579) (80,911) (64,129)
- Other Provisions (3,299) (2,624) (2,208) 25.7% 49.4% (1,868) (1,957) (2,314)
Fixed & Non Earning Assets 93,886 92,937 86,280 1.0% 8.8% 86,550 68,773 59,340
Total Assets 1,726,003 1,684,763 1,575,760 2.4% 9.5% 1,750,995 1,572,761 1,421,785
Third Party Funds : 1,285,883 1,240,371 1,132,673 3.7% 13.5% 1,300,776 1,127,849 1,052,664
- CASA 820,477 814,628 743,570 0.7% 10.3% 870,532 713,973 642,150
Current Account 315,442 298,984 245,628 5.5% 28.4% 349,492 219,397 183,002
Savings Account 505,036 515,644 497,942 -2.1% 1.4% 521,040 494,576 459,148
- Time Deposits 465,406 425,742 389,103 9.3% 19.6% 430,244 413,876 410,513
Other Interest Bearing Liabilities 82,252 102,452 93,694 -19.7% -12.2% 95,353 103,204 134,912
Non-Interest Bearing Liabilities 61,822 57,226 57,390 8.0% 7.7% 61,244 55,291 39,850
Total Liabilities 1,429,956 1,400,049 1,283,757 2.1% 11.4% 1,457,373 1,286,343 1,227,426
Tier 1 Capital 235,188 224,080 233,847 5.0% 0.6% 234,728 231,397 174,757
Total Equity 296,047 284,714 292,003 4.0% 1.4% 293,622 286,418 194,359
Total Liabilities & Equity 1,726,003 1,684,763 1,575,760 2.4% 9.5% 1,750,995 1,572,761 1,421,785
60
Page 61
LOAN PORTFOLIO – BANK ONLY
Loan Growth Led By Corporate & Consumer Segments
Loan Outstanding – by business segment (IDR Tn) Composition – by business segment (%)
120 .0%
1,20 0.0
1,136.0
1,089.4 100 .0%
1,029.8 1,007.1
943.7 221.2 19.1% 18.3% 17.5% 18.0% 18.1% 19.5%
1,00 0.0
195.7 24.1% 22.2%
859.6 880.7 180.6 182.6 30.8 2.2% 2.0% 2.6% 2.1%
798.9 27.9
80. 0%
2.3% 2.7%
172.4 21.0 2.5%
21.1 2.3%
800 .0
168.4 226.4 21.1%
191.1 20.8 224.7 22.4% 21.6% 20.6% 21.3% 19.9%
192.5 20.0 216.9 214.4 23.1%
22.9%
21.5 204.1
60. 0%
600 .0
18.3 197.2
198.7 171.5 177.7 15.8% 15.7% 15.7% 15.5% 15.6%
161.7 156.4 16.3%
183.0 149.4 16.3%
40. 0%
16.4%
400 .0
143.7
140.5
130.8
449.6 469.5 432.6 479.9 20. 0%
39.9% 42.1% 43.7% 43.1% 43.0% 42.2%
200 .0
351.3 397.0 34.3% 35.8%
274.3 307.7
-
0.0 %
2018 2019 2020 2021 2022 1H23 9M22 9M23 2018 2019 2020 2021 2022 1H23 9M22 9M23
Micro Consumer Small Medium Corporate Total
YoY Growth ( % ) 10.9 13.6 5.6 46.1 21.2 12.8
(IDR Tn) 47.3 21.3 12.0 9.7 38.6 128.9
√ Since 2022, BRI has classified SOE and Corporate non-SOE into Corporate Segment 61
Page 62
STRONG COMMERCIAL MICRO DISBURSEMENT
Kupedes Product Driving Micro Loan Disbursement
Kupedes Quarterly Disbursement (IDR Tn) Disbursement Composition by Product
120 .0%
70.0
59.3 100 .0%
5.8% 5.5% 5.8% 5.2%
60.0
7.9% 7.1%
50.3
50.0
46.7 25.2% 25.1%
80. 0%
25.4%
40.0
62.5% 60.1%
60. 0%
76.4%
30.0
22.7 22.7 40. 0%
20.8
19.0 66.8% 69.0% 69.2%
16.7
20.0
16.2
14.8
13.3
20. 0%
10.0
31.9% 34.7%
16.6%
- 0.0 %
2021 2022 2023 2021 2022 1Q23 1H23 9M22 9M23
Q1 Q2 Q3 Q4 KUR Kupedes Briguna
62
Page 63
LOAN DETAIL: MICRO LOANS
Use of Loan Business Sector
120 .0%
120 .0%
100 .0%
100 .0%
15.3% 14.3% 16.3% 13.6% 29.8% 27.0% 23.8% 21.3% 20.6% 21.9% 20.1%
27.1% 22.8% 18.9% 31.2%
28.7% 80. 0%
7.9% 8.2% 7.8% 8.4%
80. 0%
7.3% 7.6%
60. 0%
6.5% 7.4%
60. 0%
40.5% 39.6% 40.0% 39.9% 40.2%
41.9% 40.8%
56.0% 65.4%
40. 0%
44.2%
56.1% 74.6% 81.7% 83.9% 80.0% 84.9%
7.8% 7.7%
40. 0%
8.0% 8.0% 8.1%
20. 0%
3.2% 5.0% 7.2%
20. 0%
14.9% 15.9% 17.7% 20.0% 23.2% 23.3% 22.4% 23.5%
15.3% 16.9% 11.8% 3.0% 1.8% 3.8% 1.5%
0.0 %
0.0 % 6.5% 2018 2019 2020 2021 2022 1H23 9M22 9M23
2018 2019 2020 2021 2022 1H23 9M22 9M23
Agribusiness Industry Manufacturing Trading, Hotel & Rest.
Investment Working Capital Consumptive Business Services Others
Collectability Restructuring Status
102 .0%
120 .0%
100 .0% 3.4% 3.3%
1.0% 1.2% 0.8% 1.5% 1.7% 2.1%
100 .0%
2.2% 2.4% 10.4% 8.2% 11.6% 7.8%
98. 0%
2.5% 25.6% 17.8%
3.5% 3.5% 3.0%
4.0%
80. 0%
96. 0%
4.6%
94. 0%
6.2% 6.6% 60. 0%
92. 0% 96.6% 96.7% 89.6% 91.8% 88.4% 92.2%
96.7% 40. 0%
74.4% 82.2%
95.5% 95.3% 95.5%
90. 0%
94.3% 93.2%
88. 0%
91.6% 91.0% 20. 0%
86. 0% 0.0 %
2018 2019 2020 2021 2022 1H23 9M22 9M23 2018 2019 2020 2021 2022 1H23 9M22 9M23
Current SML NPL Non Restructured Restructured
Note: All numbers are bank only, unless stated as consolidated 63
Page 64
LOAN DETAIL: CONSUMER LOANS
Product Breakdown (IDR Tn) % Product Composition
120 .0%
Growth YoY
200 .0
177.7 13.6%
171.5 100 .0%
4.5% 4.9% 4.6% 3.6% 4.1% 4.2% 3.8% 4.4%
180 .0
161.7 156.4 29.6%
149.4 7.3 7.8
140.5 143.7 6.6 20.7% 23.0% 24.9% 26.2% 27.2% 27.1%
27.9% 28.3%
160 .0
130.8 5.4 6.0 18.5%
80. 0%
140 .0
6.9 6.6 47.9 50.2
5.9 44.0 42.4
120 .0
32.3 35.7 39.1
27.1
60. 0%
100 .0
80.0
74.7%
40. 0%
72.1% 70.5% 70.2% 68.7% 67.8% 69.0% 67.3%
60.0
111.1 116.3 108.0 119.7 10.8%
40.0
97.8 101.3 101.3 104.8
20. 0%
20.0
0.0 %
-
2018 2019 2020 2021 2022 1H23 9M22 9M23 2018 2019 2020 2021 2022 1H23 9M22 9M23
Salary-Based Mortgage Credit Card & Others Salary-Based Mortgage Credit Card & Others
Collectability Restructuring Status
110 .0%
101 .0%
1.1% 1.1%
100 .0%
1.0% 1.1% 1.5% 8.3% 7.0% 5.3% 4.4% 5.5% 3.8%
99. 0%
1.8% 1.8% 2.0% 2.0% 2.1%
2.5%
90. 0%
2.5% 2.7% 2.2% 2.8%
97. 0%
3.1% 3.0% 3.6% 80. 0%
95. 0%
70. 0%
98.9% 98.9% 94.7% 95.6% 94.5% 96.2%
93. 0%
91.7% 93.0%
96.5% 96.4% 95.8% 96.0% 95.4%
60. 0%
91. 0%
94.9% 95.0% 94.3%
50. 0%
89. 0%
40. 0%
87. 0%
2018 2019 2020 2021 2022 1H23 9M22 9M23 2018 2019 2020 2021 2022 1H23 9M22 9M23
Current SML NPL Non Restructured Restructured
Note: All numbers are bank only, unless stated as consolidated 64
Page 65
LOAN DETAIL: SMALL LOANS
Business Sector Use of Loan
100 .0% 120 .0%
90. 0%
7.7% 6.2% 6.2% 6.3% 7.1% 7.4% 6.5% 7.0% 100 .0%
80. 0%
70. 0%
80. 0%
60. 0%
50. 0%
68.7% 67.9% 69.0% 71.5% 69.3% 68.0% 70.1% 67.6% 60. 0%
87.2% 86.9% 86.5% 86.5% 86.1% 85.8% 86.0% 85.4%
40. 0%
40. 0%
30. 0%
20. 0%
20. 0%
8.8% 8.5% 8.6% 5.7% 6.1% 6.4% 6.0% 6.5%
14.2% 14.0% 14.6%
10. 0%
7.8% 8.7% 9.6% 10.2% 9.6% 10.6% 12.8% 13.1% 13.5% 13.5% 13.9%
0.0 %
6.5% 6.5% 0.0 %
2018 2019 2020 2021 2022 1H23 9M22 9M23 2018 2019 2020 2021 2022 1H23 9M22 9M23
Agribusiness Industry Manufacturing Trading, Hotel & Rest. Others Investment Working Capital
Collectability Restructuring Status
120 .0%
102 .0%
100 .0%
100 .0%
3.1% 3.2% 3.6% 4.0% 4.3% 4.2% 10.8% 10.7% 18.4% 16.3%
4.8% 4.6%
98. 0%
23.2% 25.7%
80. 0%
36.9%
46.1%
96. 0%
94. 0%
4.3% 4.6% 3.2% 3.4%
4.3% 60. 0%
92. 0%
6.3% 5.7% 6.1%
89.2% 89.3% 81.6% 83.7%
76.8%
40. 0%
74.3%
90. 0%
92.6% 93.2% 92.5% 63.1%
88. 0%
92.2% 91.4% 53.9%
89.4% 89.5% 89.4%
20. 0%
86. 0%
84. 0% 0.0 %
2018 2019 2020 2021 2022 1H23 9M22 9M23 2018 2019 2020 2021 2022 1H23 9M22 9M23
Current SML NPL Non Restructured Restructured
Note: All numbers are bank only, unless stated as consolidated 65
Page 66
LOAN DETAIL: MEDIUM LOANS
Business Sector
120 .0%
Use of Loan
120 .0%
100 .0%
5.8% 6.0% 5.5% 5.5% 5.8% 6.8% 5.6% 6.2%
5.1% 5.5% 5.6% 5.9% 6.3% 7.8% 6.8% 6.5%
80. 0%
6.4% 7.5% 7.0% 6.9% 6.6% 5.9% 7.0% 5.3% 100 .0%
31.9% 31.1% 34.2% 33.6% 35.0%
60. 0% 38.0% 37.7% 39.1% 80. 0%
60.4% 63.6% 66.0%
18.4%
70.1% 69.7% 73.7% 70.7% 75.0%
40. 0%
19.8% 16.3% 16.1% 15.7%
60. 0%
15.0% 15.6% 15.0%
15.8% 15.0% 16.7% 17.4% 16.0% 15.7%
20. 0%
16.5% 16.4% 40. 0%
16.6% 15.2% 14.8% 14.6% 12.3% 9.8% 14.3% 11.5%
0.0 %
20. 0%
39.6% 36.4% 34.0% 29.9% 30.3% 26.3% 29.3% 25.0%
2018 2019 2020 2021 2022 1H23 9M22 9M23
0.0 %
Agribusiness Industry Manufacturing Construction 2018 2019 2020 2021 2022 1H23 9M22 9M23
Trading, Hotel & Rest. Distribution & Warehouse Business Services
Others Investment Working Capital
Collectability Restructuring Status
102 .0% 120 .0%
100 .0%
2.3% 2.7% 2.5% 2.2% 100 .0%
9.2% 9.2%
98. 0%
4.6% 3.6% 18.6% 11.6% 9.5%
5.4% 1.4% 26.2% 18.7%
96. 0%
6.8% 2.5% 2.4% 2.7% 80. 0%
32.2%
3.1%
94. 0%
3.1%
3.0% 60. 0%
92. 0%
2.9%
96.4% 90.8% 90.8% 88.4% 90.5%
90. 0%
95.2% 94.9% 94.8%
40. 0%
73.8% 81.4% 81.3%
92.3% 93.4% 67.8%
88. 0%
90.4% 91.6% 20. 0%
86. 0%
84. 0%
0.0 %
2018 2019 2020 2021 2022 1H23 9M22 9M23 2018 2019 2020 2021 2022 1H23 9M22 9M23
Current SML NPL Non Restructured Restructured
Note: All numbers are bank only, unless stated as consolidated 66
Page 67
LEAST EXPOSED TO SOE CONSTRUCTION SECTOR
Loan Outstanding & % to Total Loan Loan Coverage
Loan Outstanding (IDR Tn) % SOE Construction to Total Loan
14.0 90. 0%
78.7%
80. 0%
71.7%
1,20 0.0
12.0
71.0%
1,15 0.0
65.0% 70. 0%
10.0
2.0 %
1,136.0 60. 0%
1,10 0.0
1.9 %
1,089.4 1.9 %
1.9% 8.0
50. 0%
1,05 0.0
42.0%
40.3%
38.5%
1.8 %
1,029.8 37.2% 40. 0%
1,00 0.0
6.0
1.8 %
1,007.1
250 .0
1.7 %
200 .0
950 .0
221.2 30. 0%
195.7 1.7 % 4.0
19.5
150 .0 182.6 180.6 1.7% 1.7%
19.0
900 .0 20. 0%
1.6%
1.6 %
18.5
100 .0
18.0
5.2 5.2 5.1 5.0
1.6 %
2.0
17.5
850 .0
19.1 18.9 10. 0%
50.0
17.0
17.7
1.5 %
16.5
17.1
800 - 1.5 %
16.0
- 0.0 %
9M22 2022 1H23 9M23 9M22 2022 1H23 9M23 9M22 2022 1H23 9M23
Provision LAR % LAR Coverage
SOE Construction
Corporate
Total Loan All loan to SOE construction sector is in Current and Special Mention
Loan collectability
Note: All numbers are bank only, unless stated as consolidated 67
Page 68
INCOME STATEMENT – BANK ONLY
Stronger Profitability From Business Operation Efficiency and Moderated Credit Cost
(IDR Bn)
Items 3Q23 2Q23 3Q22 g QoQ g YoY 9M23 1H23 9M22 1H22 g YoY
Interest Income 38,267 35,741 31,162 7.1% 22.8% 108,712 70,445 94,784 63,621 14.7%
Interest from Loans 34,080 31,410 27,233 8.5% 25.1% 95,012 60,932 83,187 55,955 14.2%
Int. from Other Earning Assets 4,186 4,331 3,930 -3.3% 6.5% 13,699 9,513 11,596 7,667 18.1%
Interest Expense (9,517) (8,966) (5,469) 6.2% 74.0% (26,921) (17,404) (15,384) (9,915) 75.0%
Net Interest Income 28,749 26,776 25,693 7.4% 11.9% 81,791 53,041 79,400 53,707 3.0%
Fee & Other Opr. Income 9,879 10,848 9,170 -8.9% 7.7% 29,895 20,017 26,703 17,533 12.0%
Gross Operating Income 38,628 37,624 34,863 2.7% 10.8% 111,686 73,058 106,103 71,239 5.3%
Operating Expenses (13,629) (14,402) (14,781) -5.4% -7.8% (41,207) (27,578) (41,182) (26,401) 0.1%
Pre-Provision Operating Profit 24,999 23,222 20,082 7.7% 24.5% 70,479 45,480 64,920 44,838 8.6%
Provision Expenses (8,603) (7,617) (3,775) 12.9% 127.9% (21,195) (12,592) (19,364) (15,589) 9.5%
Non-Operating Income (Net) (391) (95) 324 311.4% -220.8% (445) (53) 375 51 -218.6%
Profit Before Tax n Minor. Int. 16,005 15,510 16,631 3.2% -3.8% 48,840 32,835 45,931 29,300 6.3%
Tax Expense (3,268) (3,040) (3,272) 7.5% -0.1% (9,837) (6,569) (8,746) (5,474) 12.5%
Net Profit 12,737 12,470 13,359 2.1% -4.7% 39,003 26,266 37,185 23,826 4.9%
Note: all numbers are bank only, unless stated as consolidated 68
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OTHER OPERATING INCOME & OPERATING EXPENSES – BANK ONLY
Positive Other Operating Income Growth with Manageable Operating Expenses
Other Operating Income
(IDR Bn)
Items 3Q23 2Q23 3Q22 g QoQ g YoY 9M23 9M22 g YoY
Fees and Commissions 5,125 5,084 4,846 0.8% 5.8% 15,136 13,644 10.9%
Recovery of Written-Off Assets 4,084 3,645 3,222 12.0% 26.8% 10,644 8,245 29.1%
Gain on Sale of Securities - Net 409 527 302 -22.5% 35.4% 1,274 1,154 10.4%
Gain on Foreign Exchange - Net 34 22 465 54.2% -92.6% 288 1,067 -73.1%
Unrealized Gain on Changes in Fair Value of Securities -70 15 -22 -564.8% 217.1% 66 20 222.8%
Others 297 1,555 358 -80.9% -17.2% 2,487 2,573 -3.4%
Total Other Operating Income 9,879 10,848 9,170 -8.9% 7.7% 29,895 26,703 12.0%
Operating Expenses
(IDR Bn)
Items 3Q23 2Q23 3Q22 g QoQ g YoY 9M23 9M22 g YoY
Personnel 7,648 5,919 6,491 29.2% 17.8% 21,180 20,949 1.1%
General and Administration 4,831 5,069 4,840 -4.7% -0.2% 14,841 13,133 13.0%
Losses from sale of Securities and Govt. Bonds - - - - - - - -
Promotion 621 576 511 7.9% 21.6% 1,479 1,437 2.9%
Others 529 2,838 2,940 -81.4% -82.0% 3,706 5,664 -34.6%
Total Other Operating Expenses 13,629 14,402 14,781 -5.4% -7.8% 41,207 41,182 0.1%
Note: all numbers are bank only, unless stated as consolidated 69
Page 70
OTHERS
70
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WELL MANAGED PEAK TO TROUGH ASSET QUALITY
Manageable Historical Impact of Inflation on Micro Asset Quality
Inflation vs Asset Quality vs Credit Cost
12.0% 6.0%
10.0% 4.69% 5.0%
8.0% 4.0%
6.0% 3.0%
2.47%
4.0% 2.0%
2.0% 1.0%
0.0% 0.0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 1H23 9M23
Inflation Lagged T-1 (LHS) Credit Cost BRI Micro NPL + Write Off
Note: all numbers are bank only, unless stated as consolidated 71
Page 72
FOCUS ON INCREASING HIGH YIELD ASSETS
Overarching Strategy: Boost Kupedes loan Growth to Increase Profitability
Product Innovation & Alignment New Business Model
• Bullet loan
Sharing network among BRI, Pegadaian &
Kupedes • Hybrid scheme (Kupedes Utama)
PNM to offer wider access for UMi
Rejuvenation • Auto renewal customers & enhance cross selling
• Pre-approval
• Lower ticket size BRILink Mitra UMi
KECE (Kupedes Extra
• Shorter tenor Redefine BRILink agents’ roles as the
Cepat)
• Faster approval primary loan acquirer and to empower
Simpedes Micro savings product with investment & Ultra Micro Segment
Bisa protection features
Micro Develop micro payment ecosystem to capture
Product Aligning micro loan product within BRI, Hyperlocal micro transactions, boosting CASA, and fee
Realignment PNM (Ulaam) and Pegadaian (Kreasi) Ecosystem income
Business Process Reengineering Loan Officers’ Business Coverage New Rules of KUR Disbursement
Loan Officer Designated Coverage Area KUR KUR allocation was
Enhancing Digital Micro Loan
Designated Coverage Area prevents Allocation determined monthly
Underwriting Application Breakdown based on several
overlapping customers and enables loan
Sales management, Monitoring & Parameter parameter
officers to work more efficiently with a
evaluation, Cross selling, Origination & Breakdown Mechanism
better familiarity to maximize the potential
approval
of an area.
Integrated digital sales Big Data Advance Analytics (BRIKODES) as BRI's
platform for BRI, Pegadaian & inclusion management tool which produces
The new mechanism encourages the distribution of Micro
PNM to enable cross selling & recommendation matrices up to sub-district level KUR to remain maximal but still maintain Micro yield by
joint acquisition (inclusion, product holding, digital literacy & risk growing customer base and high Kupedes growth
management)
72
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MORE INSULATED FROM RECENT GLOBAL EVENTS
Liquidity & Capital Management Remain Conservative
LCR & NSFR Bond Classification (IDR Tn, % Composition)
400 .0
372.0
327.6 5.1% 330.3 329.7
309.3 307.2
350 .0
300 .0%
8.4% 6.4% 7.2%
300 .0
6.4% 7.1%
250 .0
54.2%
195.8 45.7% 47.0%
241.0% 200 .0
184.3 57.9% 46.7% 45.3%
250 .0%
2.0% 9.0%
227.1% 228.5% 150 .0
209.3% 100 .0
70.5% 63.4%
204.6% 40.7% 48.0% 45.7% 46.9% 47.6%
199.4% 50.0
33.7%
200 .0%
27.4% 27.6%
-
166.0% 2018 2019 2020 2021 2022 1Q23 1H23 9M23
155.0%
HTM AFS Trading
150 .0%
149.3%
142.3% 142.1%
Non-Loan Earning Assets/ Total Earning Assets
133.5% 135.9% 136.8% 135.5% 133.0%
3,50 0
34.4% 40. 0%
100 .0%
32.5% 31.6%
3,00 0
29.0% 30.3% 30.0% 35. 0%
27.4% 26.4% 30. 0%
2,50 0
100% 25. 0%
2,00 0
1,589 1,666 1,686 1,655 1,700
LCR & NSFR 1,512 20. 0%
50. 0%
1,50 0
1,179 1,298
Minimum regulatory 15. 0%
requirement 1,00 0
546
394 492 527 506 453 449
10. 0%
500
342 5.0 %
- 0.0 %
0.0 %
2018 2019 2020 2021 2022 1Q23 1H23 9M23 2018 2019 2020 2021 2022 1Q23 1H23 9M23
LCR NSFR
Non-Loan Earning Asset (IDR Tn) Earning Asset (IDR Tn) % Non Loan to EA
73
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STRATEGY TO BOOST CASA
CASA Retention Strategy Focus on Ecosystem & Merchant Acquisition
Monthly Cash Withdrawal Trend
Transportation Trade Centers
Public & Private Transportation 7 1 Malls, Retail and Grocery Stores, Modern
Ramadhan Impact
Providers, Transportation Facilities Markets, Traditional Wet Markets
100.0 104.8
Fintech
110 .0
94.1 Target
100 .0
88.5 85.1
Hospitals 6 Ecosystem
2 e-Commerce, P2P & POS Lending
90.0
80.0
76.4 75.3 Providers, Asset Management
Education Gas Station & Gas (LPG)
70.0
60.0
5 3
Schools, University, Education Supplier & Agent
50.0
4
1M23 2M23 3M23 4M23 5M23 6M23 7M23 Facilities
FMCG
Strategy:
1 Focus on Digital Transactions, Lower Cash Carry Costs
Increase acceptance points, strengthen debit card & BRIMO campaign,
Merchant Focus:
assist customers regarding the use of BRI for daily transactions Sharpening our focus on 104.5 thousand
expansion and orientation Potential merchants
2 Optimizing Existing Customers’ Value Chain through merchant acquisition
75.3 thousand
Utilize big data to understand customer behavior and provide solutions to in "hotspot" areas, Including:
Tenants already have
support customers value chain and maintaining deposits BRI accounts
• Culinary center
• Traditional wet market 58.2 thousand
3 Utilizing Big Data to Identify Opportunities • Trade center (mall) Tenants have become
Understand cash movement tendencies and identify potential BRISPOT • Big market merchants
pipeline
data as of 7M23
Routine Evaluation
Monitoring 1
Dashboard Utilization
2 3
Layered Monitoring
TPF balance, pipeline management,
System BRIMO, product holding, cash out tracking
merchant business update
BRI merchant supervisor, IT, vendor
74
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FINANCIAL RATIOS
(IDR Bn)
Description 9M23 1H23 9M22 g QoQ g YoY 2022 2021 2020 2019 2018
Asset Quality
NPL (gross) 3.07% 2.95% 3.09% 0.1% 0.0% 2.67% 3.00% 2.88% 2.80% 2.28%
NPL Coverage 228.65% 248.54% 278.79% -19.9% -50.1% 305.73% 281.16% 239.20% 154.63% 185.94%
Liquidity
CASA 63.64% 65.49% 65.43% -1.9% -1.8% 66.70% 63.08% 59.66% 57.70% 60.14%
LDR* 87.76% 87.26% 88.51% 0.5% -0.7% 78.82% 83.53% 83.45% 88.45% 88.40%
Profitability
Cost of Fund (CoF) 2.84% 2.79% 1.94% 0.1% 0.9% 2.06% 2.36% 3.53% 3.66% 3.54%
NIM 8.05% 7.85% 8.21% 0.2% -0.2% 7.85% 7.70% 6.90% 6.73% 7.22%
Cost to Income Ratio (CIR) 41.28% 41.79% 42.55% -0.5% -1.3% 44.87% 46.40% 48.25% 40.45% 41.15%
Operating Expense to Operating Income 68.07% 67.71% 68.36% 0.4% -0.3% 69.10% 78.54% 83.46% 72.08% 70.02%
ROA before tax 4.05% 4.06% 3.94% 0.0% 0.1% 3.79% 2.64% 2.08% 3.28% 3.51%
ROA after tax 3.21% 3.23% 3.15% 0.0% 0.1% 3.01% 2.13% 1.46% 2.60% 2.73%
ROE Tier 1 21.94% 22.32% 20.12% -0.4% 1.8% 19.59% 16.04% 11.58% 18.40% 20.04%
ROE B/S 19.69% 20.01% 18.16% -0.3% 1.5% 17.63% 13.86% 10.52% 17.34% 18.85%
Capital
Tier1 CAR 26.33% 25.55% 25.14% 0.8% 1.2% 24.50% 26.16% 19.06% 21.65% 20.18%
Total CAR 27.48% 26.65% 26.14% 1.7% 1.6% 25.51% 27.16% 20.14% 22.77% 21.35%
*Only calculated BRI and Raya financial numbers. If loan & financing of all subsidiaries are calculated, LDR is 97.52% in 9M22 and 96.93% in 9M23
**Financial figures for 2020 and 2021 is restated to include Pegadaian and PNM in accordance with PSAK 38
75
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BRI NETWORKS
The Most Extensive Network Across Indonesia
Branchless Network 2018 2019 2020 2021 2022 1H23 9M23 YtD Net Profit per Outlet (IDR Bn)
BRILink Agents 401,550 422,160 504,233 503,151 627,012 666,038 698,717 71,705
6.6 6.6
Office Type 2018 2019 2020 2021 2022 1H23 9M23 YtD 5.8
Head Office 1 1 1 1 1 1 1 -
Regional Office 19 19 19 18 18 18 18 -
Branch Office & Special Branch 3.7 3.7
463 462 462 451 449 453 453 4 3.4
Office
Branch Overseas Office 5 5 5 6 6 6 6 - 2.0
Sub-Branch Office* 609 608 608 588 579 560 559 - 20
Sub-Branch Overseas Office 3 3 3 3 3 3 3 -
BRI Units 5,381 5,382 5,382 5,222 5,156 5,137 5,128 - 28
Cash Office 580 568 547 525 506 521 513 7 2018 2019 2020 2021 2022 1H23 9M23
BRI Terrace 2,069 2,049 1,867 1,697 1,370 1,161 1,048 - 322
Mobile BRI Terrace 133 133 132 132 117 116 116 -1 Outlets vs E-Channel Trx Composition
Ship BRI Terrace 3 4 4 4 4 4 4 -
Total 9,266 9,234 9,030 8,647 8,209 7,980 7,849 - 360
101 .0%
100 .0%
1.6% 1.0% 0.9%
2.6%
99. 0%
E-Channel Type 2018 2019 2020 2021 2022 1H23 9M23 YtD 98. 0%
97. 0%
5.7%
ATM 22,684 19,184 16,880 14,463 3,863 13,838 13,818 - 45 96. 0%
EDC** 224,618 204,386 198,785 203,027 497,976 565,937 605,900 107,924
95. 0%
98.4% 99.0% 99.1%
94. 0%
97.4%
CRM 2,609 3,809 5,809 7,407 8,007 8,007 8,974 967 93. 0%
94.3%
92. 0%
e-Buzz 57 57 57 57 57 57 57 - 91. 0%
Total 249,968 227,436 221,531 224,954 519,903 587,839 628,749 108,846 2020 2021 2022 1H23 9M23
*In accordance with POJK No. 12/POJK.03/2021 concerning Commercial Banks, there are adjustments for the types of BRI Unit E-Channel Outlet
Offices, Teras BRI and BRI Cash Offices which are included in the category of Sub-Branch Offices. Here, the data is still
separated. E-Channel transaction includes: ATM, CDM, BRIlinks,
** Since 2022, number of EDC includes government program, managed service, and partnership EDC BRIMO, and Internet Banking.
76
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BRI CREDIT RATINGS
BRI International & Domestic Ratings
▪ Long Term Rating : BBB ▪ Long Term Counterparty Risk – Fgn Curr : Baa1
▪ Short Term Rating : F2 ▪ Long Term Deposit – Fgn Curr : Baa2
▪ Issuer Credit Rating : BBB-
▪ Viability Rating : bbb- ▪ Long Term Debt – Fgn Curr : Baa2
▪ Stand-Alone Credit Profile : bbb-
▪ Government Support Rating : bbb ▪ Short Term Counterparty Risk – Fgn Curr : P-2
▪ Outlook : Stable
▪ National Long-Term Rating : AAA ▪ Short Term Deposit – Fgn Curr : P-2
▪ National Short-Term Rating : F1+ ▪ Baseline Credit Assessment : baa2
▪ Outlook : Stable ▪ Adj Baseline Credit Assessment : baa2
▪ Outlook : Stable
▪ National Rating : id AAA
Stable Outlook
77
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Thank You PT BANK RAKYAT INDONESIA (Persero) Tbk. Investor Relations 7th floor BRI II Building Jl. Jenderal Sudirman No. 44-46 Jakarta 10210 Indonesia Phone : 62 21 5752006/09, 5751952/79 Website : www.ir-bri.com Email : ir@bri.co.id
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