Bank Syariah Indonesia (BRIS IJ) (Buy) - Solid 1Q26 results

Solid 1Q26 results

BRIS delivered a solid set of consolidated 1Q26 results, tracking in line with our FY26F consolidated earnings forecast. Net profit came in at IDR2.2tn (+17% y-y) with resilient asset quality and improved cost efficiency. We expect BRIS to continue delivering higher financing growth than the sector average, and stable funding costs, which should ease the pressure on NFM (net financing margin). Return on average equity (ROAE) reached 17.1%, up from 16.3% in 1Q25, supported by a lower cost of credit of 0.8% (down from 1.0% in 1Q25), better provisioning efficiency post-PSAK 413 implementation, and strong fee-based income growth of 23% y-y, predominantly driven by gold-related products. We believe these will be the key earnings drivers for the bank in the medium term.

1Q26 results summary

Net margin income (NMI) was IDR5.5tn (+16% y-y), accounting for ~24% of our FY26F estimate. Margin income was supported by a continued decline in funding costs — margin expense fell 11% y-y to IDR 2.1tn — driven by BRIS's structurally low savings cost of funds (~0.35%), which has been stable for two consecutive years.
PPOP was IDR3.5tn (+9% y-y), accounting for ~25% of our FY26F estimate, helped by a better cost-to-income ratio (CIR) of 50.5% vs 54.9% in 4Q25.
Provision expense was IDR602bn (-7% y-y), accounting for ~19% of our FY26F estimate. This was supported by improved asset quality and zero-risk weighting for the government-related programs as well as the gold products.
Net profit came in at IDR2.2tn (+17% y-y) – the first time BRIS surpassed IDR2tn in quarterly profit – accounting for ~26% of our FY26F estimate.
Financing and funding showed positive growth of +13% and +18% y-y, respectively. Consumer financing comprises 56% of the portfolio and continues to expand as the Islamic banking structural preference is skewed toward individual borrowers. The Gold business was the standout driver, nearly doubling year-on-year and now approaching 10% of the loan portfolio (management targets 20%), with gold financing customers up 50% y-y and digital gold savings reaching 1 million customers as of April 2026 — in less than a year post-launch. On the funding side, CASA ratio reached ~62%, with savings representing ~70% of total CASA. We attribute the significant growth in savings to the bank’s aggressiveness in approaching new customers, primarily the public sector employees.

Valuation and risks

We derive our TP of IDR3,250 using DuPont analysis, with key parameters including: a risk-free rate of 6.5%, an equity risk premium of 7.8%, growth of 15.0%, beta of 1.2x and a CAR-adjusted ROAE of 17.6%. Our TP implies 2.6x FY26F P/B (vs 1.7x currently) and 17.9 FY26F P/E (vs 13.2x currently). Risks are worsening economic trends, tighter liquidity competition, and/or higher credit cost and opex growth.

Fig. 1: BRIS – 1Q26 y-y summary %

Source: Company data, Verdhana research

Fig. 2: BRIS – quarterly results

BRIS Q-Q SUMMARY (IDRbn)	4Q24	1Q25	4Q25	1Q26	Q-Q %	Y-Y %	FY26F	vs FY26F
Margin inc	7,177	7,093	7,696	7,587	-1%	7%	31,814	24%
Margin exp	2,056	2,318	2,240	2,059	-8%	-11%	9,223	22%
Net margin inc	5,121	4,775	5,456	5,528	1%	16%	22,591	24%
Non-int inc	1,228	1,347	1,678	1,546	-8%	15%	6,000	26%
Total op inc	6,350	6,122	7,134	7,075	-1%	16%	28,591	25%
Non-margin exp	3,548	2,992	3,918	3,570	-9%	19%	14,412	25%
PPOP	2,801	3,130	3,216	3,505	9%	12%	14,179	25%
Provisions	296	646	576	602	5%	-7%	3,142	19%
NP	1,899	1,879	1,999	2,200	10%	17%	8,343	26%

Gross financing/loans	260,949	268,949	296,620	303,748	2%	13%
Funding	327,454	319,344	380,488	376,798	-1%	18%

BRIS Ratios (%)	4Q24	1Q25	4Q25	1Q26
NFM %	5.8	5.2	5.6	5.4
LFR %	79.7	84.2	78.0	80.6
Loan YTD %	15.4	3.1	13.7	16.4
Loan y-y %	15.4	15.9	13.7	12.9
Loan q-q %	3.9	3.1	4.3	2.4
Deposit YTD %	11.5	(2.5)	16.2	15.1
Deposit y-y %	11.5	7.4	16.2	18.0
Deposit q-q %	8.7	(2.5)	9.2	(1.0)
CIR %	55.9	48.9	54.9	50.5
CAR %	21.4	21.4	22.0	20.9
NPL %	2.0	2.0	1.9	1.9
NPL cov %	195.9	195.8	191.9	255.2
LAR %	7.3	7.2	9.2	5.7
LAR cov %	51.3	51.2	37.8	80.7
ROAE %	17.2	16.3	15.7	17.1
ROAA %	1.9	1.9	1.8	1.9
LLR %	4.0	3.9	3.7	5.0
Asset to equity x	9.1	8.5	8.8	9.1
Credit cost %	0.5	1.0	0.8	0.8
BVPS IDR	976	1,017	1,126	1,101

Source: Company data, Verdhana estimates

Fig. 3: BRIS – DuPont analysis

BRIS Dupont % of assets	4Q24	1Q25	4Q25	1Q26
Margin inc	7.37	7.01	7.05	6.62
Margin exp	2.11	2.29	2.05	1.80
Net margin inc	5.26	4.72	5.00	4.83
Non-int inc	1.26	1.33	1.54	1.35
Total op inc	6.52	6.05	6.54	6.18
Non-margin exp	3.64	2.96	3.59	3.12
PPOP	2.88	3.09	2.95	3.06
Provisions	0.30	0.64	0.53	0.53
PBT	2.52	2.40	2.36	2.47
Profit to asset % (ROAA)	1.95	1.86	1.83	1.92
Asset to Equity (leverage) x	8.80	8.80	8.57	8.92
ROAE	17.16	16.34	15.71	17.13

Source: Company data, Verdhana research

Fig. 4: BRIS – 12MMA CoC vs 12MMA WO %

Source: Company data, Verdhana research

Fig. 5: BRIS – LLR vs 12MMA WO %

Source: Company data, Verdhana research

INVESTMENT RATINGS
A rating of ‘Buy’, indicates that the analyst expects the stock to outperform the Benchmark over the next 12 months. A rating of ‘Neutral’, indicates that the analyst expects the stock to perform in line with the Benchmark over the next 12 months. A rating of ‘Reduce’, indicates that the analyst expects the stock to underperform the Benchmark over the next 12 months. A rating of ‘Suspended’, indicates that the rating, target price, and estimates have been suspended temporarily to comply with applicable regulations and/or firm policies. Securities and/or companies that are labelled as ‘Not Rated’ or ‘No Rating’ are not in regular research coverage. Benchmark is Indonesia Composite Index (‘IDX Composite’). A ‘Target Price’, if discussed, indicates the analyst’s forecast for the share price with a 12-month time horizon, reflecting in part of the analyst’s estimates for the company’s earnings, and may be impeded by general market and macroeconomic trends, and by other risks related to the company or the market in general.

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Rating Table

Rating Remains	Buy
Target price Remains	IDR 3,250
Closing price 12 May 2026	IDR 1,855

Research Analysts

Erwin Wijaya (erwin.wijaya@verdhana.id)

Tags: BANKS, Bank Syariah Indonesia, BRIS, BRIS JK, BRIS IJ, Erwin Wijaya

Bank Syariah Indonesia (BRIS IJ) (Buy) - Solid 1Q26 results

Solid 1Q26 results

Fig. 1: BRIS – 1Q26 y-y summary %

Fig. 2: BRIS – quarterly results

Fig. 3: BRIS – DuPont analysis

Fig. 4: BRIS – 12MMA CoC vs 12MMA WO %

Fig. 5: BRIS – LLR vs 12MMA WO %

Rating Table

Research Analysts

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Bank Syariah Indonesia (BRIS IJ) (Buy) - Solid 1Q26 results

Fig. 1: BRIS – 1Q26 y-y summary %

Fig. 2: BRIS – quarterly results

Fig. 3: BRIS – DuPont analysis

Fig. 4: BRIS – 12MMA CoC vs 12MMA WO %

Fig. 5: BRIS – LLR vs 12MMA WO %

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