COMPANY REPORT DEBT RESEARCH

www.danareksa.com

OCT 2019

Country

INDONESIA

Country Rating

S & P (LTFLC) BBB-

Moody’s (LTFLC) Baa2

Fitch (LTFLC) BBB

Company Rating

Pefindo idAAA

Analysts

Laras Nerpatari Suilyas

(62 21)29555777 ext. 3403

laras.nerpatari@danareksa.com

Amir A. Dalimunthe

(62 21)29555777 ext. 3405

amirda@danareksa.com

Please read important disclosure at the back of this report.

Consistent Growth

B A N K I N G

PT Bank Rakyat Indonesia (Persero) Tbk

Amid the slowing global economy, Bank BRI has still been able to optimally channel loans. This is reflected in the total assets of Bank BRI (bank only) in the 1H19 period which amounted to IDR1,224 trillion, an increase of 11.6% from IDR1,097 trillion in the same period the previous year. he total loans disbursed by the Bank rose further by 11.3% to IDR845 trillion in 1H19 compared to 1H18. Bank BRI’s loans growth outpaced the industry loans growth of 9.92%. Bank BRI’s Third Party Funds (TPF) still showed solid growth. This is reflected in BRI’s TPF growth of 13% which outpaced the industry’s TPF growth (7.41%). BRI’s non-performing loans (net) in 1H19 unchanged at 1.11%. Meanwhile, BRI’s NPLs (gross) in 1H19 were also unchanged compared to NPLs (gross) in 1H18 at 2.33%. Bank BRI’s net interest margin (Bank only) stood at 7.02% in 1H19, or lower than in the same period of the previous year. Nevertheless, the Bank’s NIM was still above the industry’s NIM which stood at 4.90%. This shows that BRI grew better than the banking industry.

2

B A N K I N G

Investment Thesis

Bank BRI has recorded solid growthAmid the slowing global economy, Bank BRI has still been able to optimally channel loans. This is reflected in the total assets of Bank BRI (bank only) in the 1H19 period which amounted to IDR1,224 trillion, an increase of 11.6% from IDR1,097 trillion in the same period the previous year.

In addition, the total loans disbursed by the Bank rose further by 11.3% to IDR845 trillion in 1H19 compared to 1H18. Bank BRI’s loans growth outpaced the industry loans growth of 9.92%.

Good growth in TPFBank BRI’s Third Party Funds (TPF) still showed solid growth. This is reflected in BRI’s TPF growth of 13% which outpaced the industry’s TPF growth (7.41%). As a result, BRI’s TPF rose from IDR797 trillion in 1H18 to IDR900 trillion in 1H19. As of 1H19, the largest proportion of TPF was time deposits, amounting to IDR371.3 trillion. In this period, time deposits grew 15% compared to 1H18. Meanwhile, savings, which were the second largest proportion of TPF, increased 9% in the 1H19 period to IDR366 trillion. By comparison, demand deposits, which are the smallest proportion of TPF, recorded the fastest growth. Current accounts rose 18% to IDR162 trillion in 1H19.

Well maintained assets qualityBRI’s non-performing loans (net) in 1H19 unchanged at 1.11%. Meanwhile, BRI’s NPLs (gross) in 1H19 were also unchanged compared to NPLs (gross) in 1H18 at 2.33%. Bank BRI’s NPLs are still lower than the industry’s NPLs which were recorded at 2.47%.

The Bank’s NIM is higher than the industry’sBank BRI’s net interest margin (Bank only) stood at 7.02% in 1H19, or lower than in the same period of the previous year. Nevertheless, the Bank’s NIM was still above the industry’s NIM which stood at 4.90%. This shows that BRI grew better than the banking industry.

Strong capitalIn terms of capital, BRI’s CAR (Bank only) as of 1H19 stood at 20.77%, an increase compared to its level in 1H18 of 20.13% and as of the end of 2018 at 20.12%. BRI’s CAR can be considered to be quite high and on a par with the conventional commercial banking industry’s CAR of 22.63%. In respect to its trend, the increase in BRI’s CAR compares favourably to the industry’s CAR which has declined from its level at the end of 2018 of 22.97%.

Pertumbuhan Bank BRI yang solidDi tengah kondisi pertumbuhan perekonomian global yang melambat Bank BRI masih dapat menyalurkan pinjaman dengan optimal. Hal ini terlihat dari total aset Bank BRI (bank only) di periode 1H19 yang tercatat sebesar Rp1.224 triliun atau meningkat 11,6% dari Rp1.097 triliun di periode yang sama tahun sebelumnya.

Selain itu, total loans yang disalurkan oleh Bank juga tetap meningkat sebesar 11,3% menjadi Rp845 triliun di 1H19 dibandingkan 1H18. Pertumbuhan penyaluran kredit oleh Bank BRI ini tergolong tinggi, karena berada di atas pertumbuhan penyaluran kredit industri yang sebesar 9,92%.

Pertumbuhan DPK yang baikDi sisi lain, pertumbuhan Dana Pihak Ketiga (DPK) Bank BRI juga masih menunjukkan pertumbuhan yang solid. Hal ini tercermin dari pertumbuhan DPK Bank BRI yang lebih tinggi dari pertumbuhan DPK industri (7,41%) yaitu sebesar 13% dari Rp797 triliun di 1H18 menjadi Rp900 triliun di 1H19. Per 1H19, proporsi terbesar DPK adalah deposito berjangka yaitu sebesar Rp371,3 triliun. Di periode ini, deposio berjangka mengalami pertumbuhan 15% dibandingkan dengan 1H18. Sementara itu, tabungan yang merupakan proporsi DPK terbesar kedua tumbuh 9% di periode 1H19, menjadi Rp366 triliun. Di sisi lain, giro yang merupakan proporsi DPK terkecil, mengalami pertumbuhan paling pesat di antara jenis DPK yang lain. Giro tumbuh 18% menjadi Rp162 triliun di 1H19.

Kualitas aset yang terjagaNon-performing loans (net) Bank BRI di 1H19 stabil di level 1,11%. Sementara itu NPL (gross) Bank BRI di periode 1H19 sama dengan di periode 1H18 yaitu berada di level 2,33%. NPL Bank BRI ini masih lebih rendah dibandingkan industri yang tercatat di level 2,47%.

NIM Bank yang lebih baik dibandingkan dengan industriNet interest margin Bank BRI (Bank only) pada 1H19 berada di level 7,02%, lebih rendah dibandingkan dengan periode yang sama tahun sebelumnya. Meskipun demikian, level ini masih di atas NIM industri yang berada di level 4,90%. Hal ini menunjukkan bahwa Bank BRI mampu tumbuh lebih baik dibandingkan dengan pertumbuhan industri perbankan.

Permodalan yang kuatDari sisi permodalan, KPMM BRI (Bank only) per 1H19 berada di level 20,77%, meningkat dibandingkan periode 1H18 di level 20,13% dan di akhir tahun 2018 di level 20,12%. Level KPMM Bank BRI terbilang cukup tinggi dan hampir menyamai KPMM industri bank umum konvensional yang berada di level 22,63%. Secara tren, peningkatan KPMM Bank BRI ini, lebih baik dibandingkan industri yang mengalami penurunan dibandingkan dengan akhir tahun 2018 yang tercatat sebesar 22,97%.

3

B A N K I N G

Market Update

Declining trend in benchmark interest ratesOn September 17-18, 2019, it was decided at the latest FOMC meeting to cut the FFR benchmark rate by 25 bps (as predicted by the market) to 1.75% - 2.00%. The move to cut rates for the second time this year reflects the impact of increasing uncertainty related to the ongoing trade war, the prospect of a slowdown in the global economy, and the stable domestic inflation rate. The Fed stated that the US economy was currently posting moderate growth, while the labour market remained firm. Meanwhile, according to a Bloomberg future survey of implied probability of the Fed Funds rate, the estimation of Fed Funds rate will reduce in the upcoming Fed meeting is 44% vs 56% compared to the estimated Fed Fund rate to stay at current levels.

Bank Indonesia’s policy in controlling its benchmark interest rate in 2019 was also unlike its policy in 2018. In 2018, the 7D RRR benchmark interest rate was raised by 175 bps from 4.25% to 6%. By contrast, Bank Indonesia has cut rates so far in 2019. At the RDG meeting on 18-19 September 2019, Bank Indonesia reduced the benchmark interest rate by 25bps to 5.25%. So far, BI has cut rates on three occasions this year. This policy reflects several factors including low expected inflation, the continued attractiveness of returns on investments in domestic financial assets, and as a pre-emptive step to drive economic growth in the face of global economic weakness.

Penurunan suku bunga acuanPada 17-18 September 2019, FOMC meeting memutuskan untuk The Fed pada FOMC September 2019 memangkas bunga acuan FFR sebesar 25 bps (seperti yang diprediksi pasar) menjadi 1,75% - 2,00%. Penurunan FFR yang kedua tahun ini ditempuh dengan mempertimbangkan dampak ketidakpastian perang dagang, prospek perlambatan ekonomi global, dan laju inflasi domestik yang stagnan. The Fed menyatakan bahwa ekonomi AS saat ini tumbuh moderat, dan pasar tenaga kerja tumbuh solid. Sementara itu, menurut survey Bloomberg future implied probability of Fed Funds rate, perkiraan Fed Fund rate akan kembali turun dalam pertemuan The Fed yang akan datang masih 44% vs 56% dibandingkan dengan perkiraan Fed Fund rate tetap stay di level saat ini.

Kebijakan Bank Indonesia di tahun 2019 dalam mengendalikan suku bunga acuan juga berbeda dengan tahun 2018. Di tahun 2018 suku bunga acuan 7D RRR meningkat sebesar 175bps dari 4,25% menjadi 6%. Sementara itu, di tahun 2019 seusai dengan hasil rapat RDG Bank Indonesia pada 18-19 September 2019, Bank Indonesia kembali memutuskan untuk menurunkan suku bunga acuan sebesar 25bps menjadi 5,25%. Penurunan ini merupakan pemangkasan ketiga kalinya terhadap BI 7D RRR di tahun ini. Kebijakan tersebut seiring dengan rendahnya prakiraan inflasi, tetap menariknya imbal hasil investasi aset keuangan domestik, serta sebagai langkah pre-emptive untuk mendorong momentum pertumbuhan ekonomi ke depan dari dampak perlambatan ekonomi global.

Meeting Hike Prob Cut Prob 0.75-1 1-1.25 1.25-1.5 1.5-1.75 1.75-2 Fwd Rate

30-Oct-19 0.0% 43.9% 0.0% 0.0% 0.0% 43.9% 56.1% 1.7511-Dec-19 0.0% 73.7% 0.0% 0.0% 23.3% 50.4% 26.3% 1.6229-Jan-20 0.0% 84.7% 0.0% 9.8% 34.7% 40.3% 15.3% 1.5118-Mar-20 0.0% 88.6% 2.5% 16.2% 36.1% 33.9% 11.4% 1.4529-Apr-20 0.0% 90.5% 4.7% 19.4% 35.7% 30.2% 9.5% 1.4110-Jun-20 0.0% 92.2% 7.3% 22.3% 34.8% 26.5% 7.8% 1.3629-Jul-20 0.0% 93.4% 9.6% 24.2% 33.5% 23.7% 6.6% 1.3216-Sep-20 0.0% 94.3% 11.6% 25.5% 32.2% 24.1% 5.7% 1.2905-Nov-20 0.0% 95.1% 13.6% 26.4% 30.6% 19.1% 4.9% 1.25

Exhibit 1. Bloomberg Probability of Fed Rate Cut/Hike (WIRP) as of 30 September 2019

Source: Bloomberg

4

B A N K I N G

Industry Overview

Good performance of the banking industryAs of June 2019, the performance of commercial banks in Indonesia was still sound. Total banking assets were recorded at IDR8,243 trillion, up by 7.7% compared to the amount in the same period in the previous year. Assets growth was supported by an increase in bank loans which grew to IDR5,468 trillion, or up 9.92% yoy. Credit growth exceeded the rate of growth of third party funds in the banking system. TPF grew 7.42% from the previous year to IDR5,799 trillion, pushing up the LDR to 94.28% from 92.13% in April 2018.

Kinerja industri perbankan yang baikHingga Juni 2019, kinerja bank umum di Indonesia masih dalam kondisi baik. Total aset perbankan tercatat di level Rp8.243 triliun, tumbuh 7,7% dibandingkan periode yang sama tahun sebelumnya. Pertumbuhan aset ditopang oleh kredit perbankan yang tumbuh ke level Rp5.468 triliun, mencatatkan yoy growth sebesar 9,92%. Pertumbuhan kredit tersebut melampaui laju pertumbuhan dana pihak ketiga di sistem perbankan. DPK masih berada di level Rp5.799 triliun atau hanya tumbuh 7,42% dari tahun sebelumnya. Hal ini mendorong terjadinya peningkatan LDR ke level 94,28% dari 92,13% di April 2018 yang lalu.

Exhibit 2. Total Assets of Commercial Banks (IDR tn)

Source: OJK Perbankan

6,730 7,026 7,388 7,651 8,068 8,243

9.7410.42

9.778.89 9.21

7.74

0.00

2.00

4.00

6.00

8.00

10.00

12.00

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19

Total Asset YoY Growth

Exhibit 3. Total Credit of Commercial Banks (IDR tn)

Source: OJK Perbankan

4,377 4,4914,738

4,9745,295 5,468

7.87 7.758.24

10.75

11.75

9.92

7.00

8.00

9.00

10.00

11.00

12.00

13.00

14.00

15.00

0

1,000

2,000

3,000

4,000

5,000

6,000

Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19

Total Credit YoY Growth

Exhibit 4. Total TPF of Commercial Banks (IDR tn)

Source: OJK Perbankan

4,837 5,046 5,289 5,399 5,630 5,799

9.6010.30

9.36

6.996.45

7.42

4.00

5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

4,200

4,400

4,600

4,800

5,000

5,200

5,400

5,600

5,800

6,000

Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19

Total Third Party Fund YoY Growth

Exhibit 5. LDR of Commercial Banks (%)

Source: OJK Perbankan

90.50

89.01 89.57

92.13

94.04 94.28

82.00

84.00

86.00

88.00

90.00

92.00

94.00

96.00

98.00

100.00

Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19

5

B A N K I N G

Industry Overview

Based on SPI data for June 2019, conventional commercial bank RWA recorded growth of 7.41% compared to the previous year. This rate of growth is lower than in 2018 when it reached 9.88%. In last July’s Financial System Stability Committee’s press release, the AL / NCD liquidity indicator was still recorded at 90.09% at the end of TW II 2019. Other liquidity ratios were also maintained, as seen in the Liquid Asset Ratio to total assets in June 2019. The ratio stood at 14.79%.

Berdasarkan data SPI Juni 2019, ATMR bank umum konvensional mencatatkan pertumbuhan 7,41% dibandingkan tahun sebelumnya. Pertumbuhan ini sedikit melambat jika dibandingkan dengan pertumbuhan ATMR selama tahun 2018 yang mencapai 9,88%. Pada siaran pers Komite Stabilitas Sistem Keuangan (KSSK) di Juli yang lalu, indikator likuiditas AL/NCD masih tercatat di level 90,09% pada akhir TW II 2019. Rasio likuiditas lain juga masih terjaga, terlihat dari Rasio Aset Likuid terhadap total aset di bulan Juni 2019. Rasio tersebut tercatat di level 14,79%.

Exhibit 6. RWA of Conventional Commercial Banks

Source: OJK Perbankan

7.32 7.55

9.59

11.10

9.88

7.41

5

6

7

8

9

10

11

12

13

14

15

Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19

Exhibit 7. LAR of Conventional Commercial Banks

Source: OJK Perbankan

17.50

18.82 18.56

16.68

14.96 14.79

12.00

13.00

14.00

15.00

16.00

17.00

18.00

19.00

20.00

21.00

22.00

Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19

Improvements were also seen in terms of assets quality, as NPLs continued to trend downwards. As the SPI data for June 2019, the conventional commercial bank NPLs were recorded at 2.47%, or down compared to the same month in previous years.

Perbaikan juga terlihat dari segi kualitas aset, di mana tren penurunan NPL masih berlanjut. Per data SPI Juni 2019, NPL bank umum konvensional tercatat di level 2,47%, turun dibandingkan bulan yang sama di tahun-tahun sebelumnya.

Exhibit 8. NPL of Conventional Commercial Banks

Source: Company

2.862.90

2.50

2.63

2.33

2.47

2.20

2.30

2.40

2.50

2.60

2.70

2.80

2.90

3.00

3.10

3.20

Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19

6

B A N K I N G

Industry Overview

In terms of capital, the aggregate CAR of conventional commercial banks showed an increase compared to the position in the previous year. CAR was recorded at 22.63%, or up from 22.01% in June last year. As for the NIM, it has trended downwards. As of June, it stood at 4.90%.

Dari sisi permodalan, secara agregat CAR bank umum konvensional menunjukkan peningkatan dibandingkan posisinya setahun terakhir. CAR tercatat di level 22,63%, naik dari 22,01% pada Juni tahun lalu. Sedangkan untuk NIM, saat ini masih memperlihatkan tren penurunan, di mana per posisi Juni telah tercatat di level 4,90%.

Exhibit 9. CAR of Conventional Commercial Banks

Source: OJK Perbankan

22.9322.74

23.18

22.01

22.97

22.63

21.00

21.50

22.00

22.50

23.00

23.50

24.00

24.50

25.00

Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19

Exhibit 10. NIM of Conventional Commercial Banks

Source: OJK Perbankan

5.63

5.35 5.32

5.11 5.14

4.90

Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19

Meanwhile, the BOPO recorded an increase during the first 6 months of 2019. BOPO stood at 80.24% in June 2019, or higher than its level at the end of 2018 and June 2018. Although NIM remains in a downward trend and the BOPO posted an increase, the ROA of conventional commercial banks is still relatively well maintained at 2.51%.

Sementara itu, BOPO tercatat meningkat selama 6 bulan pertama tahun 2019. BOPO berada di level 80,24% pada Juni 2019, lebih tinggi jika dibandingkan dengan posisi akhir tahun 2018 maupun Juni 2018 yang lalu. Meski NIM masih dalam tren penurunan dan terjadi peningkatan BOPO, namun ROA bank umum konvensional masih relatif terjaga di level 2,51%.

Exhibit 11. BOPO of Conventional Commercial Banks

Source: OJK Perbankan

82.22

79.0078.64

79.46

77.86

80.24

76.00

77.00

78.00

79.00

80.00

81.00

82.00

83.00

84.00

85.00

86.00

Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19

Exhibit 12. ROA of Conventional Commercial Banks

Source: OJK Perbankan

2.23

2.47 2.45 2.43

2.552.51

2.00

2.10

2.20

2.30

2.40

2.50

2.60

2.70

2.80

2.90

3.00

Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19

7

B A N K I N G

Company Overview

PT Bank Rakyat Indonesia (Persero) Tbk. (“BRI”, “Bank”, or “Company”) began its operations in 1895 in Purwokerto, Central Java by Raden Bei Aria Wirjaatmadja who initially managed the mosque’s cash funds to be distributed to the public under a simple scheme. The Company was established as the People’s Bank of Indonesia on 18 December 1968 based on Law no. 21 of 1968. In 1992, BRI changed its legal status to PT Bank Rakyat Indonesia (Persero) based on Banking Law No. 7 of 1992 and listed its shares on the Indonesia Stock Exchange on November 10, 2003, with the BBRI stock code.

Since its inception, BRI has consistently focused on the micro, small and medium business (MSME) segment, as well as being a pioneer of microfinance in Indonesia. As an entity, BRI Group is a financial group that provides complete financial products and services, ranging from conventional and sharia banking services, insurance and multi-finance. This is in accordance with BRI’s 2018-2022 long-term plan to achieve its aspirations as an integrated financial service provider. There are now 7 (seven) subsidiaries under the BRI Group, operating in the fields of Syariah (BRI Syariah), a Conventional Bank (BRI Agro), Remittances (BRI Remittance), Insurance (BRI Life), Multifinance (BRI Finance), Venture Capital (BRI Ventures) and Securities (Danareksa Sekuritas). Supported by these subsidiaries, BRI seeks to achieve its vision of becoming a superior bank in the digital era.

Perjalanan bisnis PT Bank Rakyat Indonesia (Persero) Tbk. (“BRI”, “Bank”, atau “Perseroan”) dimulai pada tahun 1895 di Purwokerto, Jawa Tengah oleh Raden Bei Aria Wirjaatmadja yang awalnya mengelola dana kas masjid untuk disalurkan kepada masyarakat dengan skema yang sederhana. Perseroan ditetapkan menjadi Bank Rakyat Indonesia sejak 18 Desember 1968 berdasarkan UU No. 21 tahun 1968. Pada tahun 1992, BRI berubah status hukum menjadi PT Bank Rakyat Indonesia (Persero) berdasarkan Undang-Undang Perbankan No. 7 tahun 1992 dan mencatatkan sahamnya di Bursa Efek Indonesia pada 10 November 2003, dengan kode saham BBRI.

Sejak awal berdiri, BRI konsisten fokus pada segmen usaha mikro, kecil dan menengah (UMKM), serta menjadi pelopor microfinance di Indonesia. Sebagai entitas, BRI Group merupakan sebuah grup keuangan yang menyediakan produk dan jasa keuangan yang lengkap, mulai dari layanan perbankan konvensional maupun syariah, asuransi dan multifinance. Hal ini sesuai dengan rencana jangka panjang BRI 2018- 2022 untuk mencapai aspirasi sebagai penyedia jasa keuangan terintegrasi. Atas penyertaan yang telah dilakukan oleh BRI, maka jumlah Perusahaan Anak yang dimiliki oleh BRI Group menjadi 7 (tujuh) Perusahaan Anak yaitu Syariah (BRI Syariah), Bank Konvensional (BRI Agro), Remittance (BRI Remittance), Asuransi (BRI Life), Multifinance (BRI Finance), Modal Ventura (BRI Ventures) dan Sekuritas (Danareksa Sekuritas). Semua inisiatif ini dilakukan untuk terus merealisasikan aspirasi menjadi perbankan yang unggul di era ekonomi digital saat ini.

Exhibit 13. Kepemilikan Saham per Jun 2019

Source: Company

56.75%

43.25%

Negara RI Publik

8

B A N K I N G

Company Overview

Exhibit 14. Struktur Perusahaan per Jun 2019

Source: Company

Exhibit 15. Management as of September 2019

Source: Company

Komisaris

President Commissioner : Andrinof A. ChaniagoVice President Commissioner : Wahyu KuncoroKomisaris Independen : A. Fuad RahmanyKomisaris Independen : A. Sonny KerafKomisaris Independen : Rofikoh RokhimKomisaris Independen : Henrikus IvoKomisaris : Nicolaus Teguh Budi HarjantoKomisaris : HadiyantoKomisaris : Loeke Larasati Agoestina*

Direksi

Direktur Utama : Sunarso*Wakil Direktur Utama : Catur Budi Harto*Direktur Bisnis Mikro : SupariDirektur Bisnis Kecil, Ritel dan Menengah : PriyastomoDirektur Konsumer : HandayaniDirektur Human Capital : Herdy Rosadi Harman*Direktur Keuangan : Haru KoesmahargyoDirektur Digital, Teknologi Informasi dan Operasi : Indra UtoyoDirektur Manajemen Risiko : Agus Sudiarto*Direktur Hubungan Kelembagaan dan BUMN : Agus NoorsantoDirektur Kepatuhan : Azizatun Azhimah*Direktur Jaringan dan Layanan : Ahmad Solichin Lutfiyanto

* Efektif setelah lulus dalam uji kemampuan dan kepatutan oleh Otoritas Jasa Keuangan (OJK)

9

B A N K I N G

Company Overview

Exhibit 16. Ownership of the Company’s bonds

Source: KSEI, IDX

Pens ion Fund28.1%

Insurance25.1%

Financial Institution

24.6%Mutual Fund

12.7% Individual3.6%

Foundation3.0%

Other1.5%

Foreign0.7%

Corporate0.6%

Other9.4%

Aktivitas Perusahaan di pasar obligasiPer Agustus 2019, outstanding obligasi Bank BRI tercatat di IDX sebesar Rp21 triliun. Pemegang obligasi Bank BRI terbesar adalah dana pensiun yaitu sebesar Rp6 triliun atau sebesar 28% dari total, diikuti oleh Perusahaan asuransi sebesar 25%. Sementara itu, obligasi yang diterbitkan Bank BRI paling besar akan jatuh tempo di tahun 2020 yaitu sebesar Rp4 triliun.

Company activities in the bond marketAs of August 2019, BRI’s outstanding bonds listed at IDX amounted to IDR21 trillion. The largest holder of Bank BRI bonds are pension funds with IDR6 trillion of the bonds or 28% of the total, followed by insurance companies at 25%. Next year, Rp4 trillion of the bonds issued by Bank BRI will mature.

Exhibit 17. Company’s bonds profile

Source: KSEI, IDX

0 1,000 2,000 3,000 4,000 5,000

201920202021202220232024202520262027

Insurance Corporate Pension FundFinancial Institution Mutual Fund SecuritiesFoundation Others Foreign

Exhibit 18. Company bonds secondary market

Source: KSEI, IDX

Bond ID Bond Name Issue DateMaturity

DateTTM

Instrument Rating

Coupon (%)

Issued (IDR bn)

BBRI02BCN2 Obligasi Berkelanjutan II Bank BRI Tahap II Tahun 2017 Seri B 11-Apr-17 11-Apr-20 0.53 idAAA 8.10 1,744BBRI02DCN2 Obligasi Berkelanjutan II Bank BRI Tahap II Tahun 2017 Seri D 11-Apr-17 11-Apr-27 7.53 idAAA 8.80 1,301BBRI02BCN1 Obligasi Berkelanjutan II Bank BRI Tahap I Tahun 2016 Seri B 01-Dec-16 01-Dec-19 0.17 idAAA 8.00 964BBRI02CCN3 Obligasi Berkelanjutan II Bank BRI Tahap III Tahun 2017 Seri C 24-Aug-17 24-Aug-24 4.90 idAAA 8.25 2,517BBRI01CCN2 Obligasi Berkelanjutan I Bank BRI Tahap II Tahun 2016 Seri C 04-Feb-16 04-Feb-21 1.35 idAAA 9.60 2,824BBRI02BCN4 Obligasi Berkelanjutan II Bank BRI Tahap IV Tahun 2018 Seri B 21-Feb-18 21-Feb-25 5.39 idAAA 6.90 605BBRI01CCN1 Obligasi Berkelanjutan I Bank BRI Tahap I Tahun 2015 Seri C 03-Jul-15 03-Jul-20 0.75 idAAA 9.50 1,420BBRI02ACN3 Obligasi Berkelanjutan II Bank BRI Tahap III Tahun 2017 Seri A 24-Aug-17 24-Aug-20 0.90 idAAA 7.60 981BBRI01CCN3 Obligasi Berkelanjutan I Bank BRI Tahap III Tahun 2016 Seri C 25-May-16 25-May-21 1.65 idAAA 8.70 701BBRI02BCN3 Obligasi Berkelanjutan II Bank BRI Tahap III Tahun 2017 Seri B 24-Aug-17 24-Aug-22 2.90 idAAA 8.00 1,653BBRI02CCN1 Obligasi Berkelanjutan II Bank BRI Tahap I Tahun 2016 Seri C 01-Dec-16 01-Dec-21 2.17 idAAA 8.20 193BBRI02ACN4 Obligasi Berkelanjutan II Bank BRI Tahap IV Tahun 2018 Seri A 21-Feb-18 21-Feb-23 3.39 idAAA 6.65 1,837BBRI02ECN1 Obligasi Berkelanjutan II Bank BRI Tahap I Tahun 2016 Seri DE 01-Dec-16 01-Dec-26 7.17 idAAA 8.90 2,350BBRI02CCN2 Obligasi Berkelanjutan II Bank BRI Tahap II Tahun 2017 Seri C 11-Apr-17 11-Apr-22 2.53 idAAA 8.30 925BBRI02DCN1 Obligasi Berkelanjutan II Bank BRI Tahap I Tahun 2016 Seri D' 01-Dec-16 01-Dec-23 4.17 idAAA 8.65 477

10

B A N K I N G

Bank BRI has recorded solid growthAmid the slowing global economy, Bank BRI has still been able to optimally channel loans. This is reflected in the total assets of Bank BRI (bank only) in the 1H19 period which amounted to IDR1,224 trillion, an increase of 11.6% from IDR1,097 trillion in the same period the previous year.

In addition, the total loans disbursed by the Bank rose further by 11.3% to IDR845 trillion in 1H19 compared to 1H18. Bank BRI’s loans growth outpaced the industry loans growth of 9.92%.

In accordance with BRI’s business segmentation focus, namely micro loans, lending to the micro segment accounted for the largest proportion of total loans at 35% or IDR293 trillion. This segment also recorded significant growth of 14% in the 1H19 period compared to 1H18, an indication of the Bank’s strong commitment toward growing micro loans further in the future.

Pertumbuhan Bank BRI yang solidDi tengah kondisi pertumbuhan perekonomian global yang melambat Bank BRI masih dapat menyalurkan pinjaman dengan optimal. Hal ini terlihat dari total aset Bank BRI (bank only) di periode 1H19 yang tercatat sebesar Rp1.224 triliun atau meningkat 11,6% dari Rp1.097 triliun di periode yang sama tahun sebelumnya.

Selain itu, total loans yang disalurkan oleh Bank juga tetap meningkat sebesar 11,3% menjadi Rp845 triliun di 1H19 dibandingkan 1H18. Pertumbuhan penyaluran kredit oleh Bank BRI ini tergolong tinggi, karena berada di atas pertumbuhan penyaluran kredit industri yang sebesar 9,92%.

Sesuai dengan fokus pada segmentasi bisnis Bank BRI yaitu mengembangkan pinjaman mikro, penyaluran loan terhadap segmen mikro memiliki proporsi terbesar yaitu sebesar 35% dari total loans atau sebesar Rp293 triliun. Segmen tersebut juga mengalami pertumbuhan yang signifikan yaitu sebesar 14% di periode 1H19 dibandingkan periode 1H18. Hal ini menunjukkan komitmen kuat Bank untuk terus mengembangkan dan meningkatkan pinjaman mikro.

Business Overview

Exhibit 19. Total Assets (IDR tn)

Source: Company

778846

964

1,076

1,234

1,097

1,224

490558

635708

804759

845

2014 2015 2016 2017 2018 1H18 1H19

Total Assets Gross Loans

11

B A N K I N G

Business Overview

Good growth in TPFBank BRI’s Third Party Funds (TPF) still showed solid growth. This is reflected in BRI’s TPF growth of 13% which outpaced the industry’s TPF growth (7.41%). As a result, BRI’s TPF rose from IDR797 trillion in 1H18 to IDR900 trillion in 1H19. As of 1H19, the largest proportion of TPF was time deposits, amounting to IDR371.3 trillion. In this period, time deposits grew 15% compared to 1H18. Meanwhile, savings, which were the second largest proportion of TPF, increased 9% in the 1H19 period to IDR366 trillion. By comparison, demand deposits, which are the smallest proportion of TPF, recorded the fastest growth. Current accounts rose 18% to IDR162 trillion in 1H19.

Pertumbuhan DPK yang baikDi sisi lain, pertumbuhan Dana Pihak Ketiga (DPK) Bank BRI juga masih menunjukkan pertumbuhan yang solid. Hal ini tercermin dari pertumbuhan DPK Bank BRI yang lebih tinggi dari pertumbuhan DPK industri (7,41%) yaitu sebesar 13% dari Rp797 triliun di 1H18 menjadi Rp900 triliun di 1H19. Per 1H19, proporsi terbesar DPK adalah deposito berjangka yaitu sebesar Rp371,3 triliun. Di periode ini, deposio berjangka mengalami pertumbuhan 15% dibandingkan dengan 1H18. Sementara itu, tabungan yang merupakan proporsi DPK terbesar kedua tumbuh 9% di periode 1H19, menjadi Rp366 triliun. Di sisi lain, giro yang merupakan proporsi DPK terkecil, mengalami pertumbuhan paling pesat di antara jenis DPK yang lain. Giro tumbuh 18% menjadi Rp162 triliun di 1H19.

Exhibit 20. Loans by Segment - Bank only (IDR Tn)

Source: Company

2014 2015 2016 2017 2018 1H18 1H19 Growth Growth YoY YTD

Micro 153 179 212 240 274 258 293 14% 7%Consumer 81 89 100 115 131 124 135 9% 3%Small Comm 105 120 132 154 183 166 190 15% 4%Medium 20 21 21 20 18 19 20 3% 7%Corporate 57 69 77 83 91 85 92 8% 0%SoE 74 81 93 97 107 107 115 8% 8%Total Loans 490 558 635 708 804 759 845 11% 5%

Exhibit 21. Third Party Funds Breakdown

Source: Company

Micro Loan Segment (IDR Tn) 2014 2015 2016 2017 2018 1H18 1H19 Growth Growth YoY YTD

Kupedes 129 146 156 178 205 189 216 14% 5%Kupedes Rakyat 0 15 4 2 5 1 3 146% -33%Micro KUR 25 6 1 0 0 0 0 0% 0%New Micro KUR 0 13 51 59 64 67 74 10% 15%Micro Loan 153 179 212 239 274 258 293 14% 7%

Bank Only (IDR Tn) 2014 2015 2016 2017 2018 1H18 1H19 Growth Growth YoY YTD

Demand Deposits 89.08 112.99 140.76 144.43 176.41 137.80 162.30 18% -8%Savings 232.41 267.61 297.65 342.76 378.91 336.20 365.80 9% -3%Time Deposits 278.92 262.18 285.43 316.14 342.72 322.60 371.30 15% 8%Total Deposit 600.41 642.77 723.85 803.33 898.03 796.60 899.40 13% 0%

12

B A N K I N G

Business Overview

Exhibit 22. Third Party Funds (IDR tn)

Source: Company

89.08 112.99 140.76 144.43 176.41 137.83 162.28

232.41 267.61

297.65 342.76 378.91

336.24 365.83

278.92 262.18

285.43 316.14

342.72

322.56

371.29

2014 2015 2016 2017 2018 1H18 1H19

Demand Deposits Savings Time Deposits

Increased cost of fundsIn line with the growth of time deposits and increasing global uncertainty, the cost of funds also increased. This is reflected in BRI’s CASA and CoF. The Bank’s CASA per 1H19 was 58.72% or lower than the level in 1H18 of 59.51%. Meanwhile, the Bank’s CoF rose from 3.29% in 1H18 to 3.64% in 1H19.

Peningkatan cost of fundsSejalan dengan pertumbuhan deposito berjangka serta meningkatnya ketidakpastian global, maka cost of fund juga mengalami peningkatan. Hal ini terlihat dari perkembangan CASA dan CoF Bank BRI. CASA Bank BRI per 1H19 tercatat sebesar 58,72%. Lebih rendah dibandingkan dengan 1H18 yang sebesar 59,51%. Sementara itu, CoF Bank meningkat dari 3,29% di 1H18 menjadi 3,64% di 1H19.

Exhibit 23. Cost of Funds

Source: Company

Bank Only 2014 2015 2016 2017 2018 1H18 1H19

CASA 53.55% 59.21% 60.57% 60.65% 61.84% 59.51% 58.72%CoF 4.38% 4.24% 3.83% 3.60% 3.47% 3.29% 3.64%

Improvement in the LDRWith loans growth reaching 11% in 1H19 but with 13% growth in TPF, the Bank’s LDR was recorded at 93.90%. This is down from its level in 1H18 of 95.27% and also lower than the industry’s LDR in 1H19 of 94.28%.

LDR yang lebih baikDengan pertumbuhan loans di periode 1H19 sebesar 11%, namun dengan pertumbuhan DPK sebesar 13% mendorong LDR Bank BRI tercatat sebesar 93,90%. Level tersebut tercatat lebih rendah dibandingkan dengan LDR Bank BRI periode 1H18 yang sebesar 95,27%, dan dibandingkan dengan LDR industri 1H19 yang berada di level 94,28%.

13

B A N K I N G

Business Overview

Exhibit 24. LDR

Source: Company

81.68%

86.88%87.77% 88.13%

89.57%

95.27%93.90%

2014 2015 2016 2017 2018 1H18 1H19

Well maintained assets qualityBRI’s non-performing loans (net) in 1H19 unchanged at 1.11%. Meanwhile, BRI’s NPLs (gross) in 1H19 were also unchanged compared to NPLs (gross) in 1H18 at 2.33%. Bank BRI’s NPLs are still lower than the industry’s NPLs which were recorded at 2.47%.

The business segment with the highest level of NPLs is the medium segment (5.55%). However, this is still down from the level in 1H18 (6.02%). The business segment with the second highest level of NPLs is the corporate segment. This segment also saw its NPLs decline (dropping from 5.38% in 1H18 to 4.82% in 1H19). Meanwhile, the micro segment - which accounted for the largest portion of credit - recorded relatively low NPLs of 1.40%. By comparison, the segment with the lowest level of NPLs is the SoE segment, with NPLs of 0.97% in 1H19.

Kualitas aset yang terjagaNon-performing loans (net) Bank BRI di 1H19 stabil di level 1,11%. Sementara itu NPL (gross) Bank BRI di periode 1H19 sama dengan di periode 1H18 yaitu berada di level 2,33%. NPL Bank BRI ini masih lebih rendah dibandingkan industri yang tercatat di level 2,47%.

Dari sisi segmentasi bisnis, segmen dengan NPL tertinggi adalah dari segmen medium yaitu sebesar 5,55%. Namun, level ini telah menurun dibandingkan dengan 1H18 yang sempat berada di level 6,02%. NPL terbesar kedua adalah dari segmen korporasi yang juga mengalami penurunan level NPL dari 5,38% di 1H18 menjadi 4,82% di 1H19. Sementara itu, segmen mikro yang merupakan pemegang porsi kredit terbesar memiliki NPL yang relatif rendah, yaitu sebesar 1,40%. Di sisi lain, segmen dengan NPL terkecil adalah SoE, yang pada 1H19 berada di level 0,97%.

14

B A N K I N G

Business Overview

Source: Company

1.69%

2.02% 2.03% 2.10%2.14%

2.33% 2.33%

0.36%

1.22%1.09%

0.88% 0.92%1.11% 1.11%

2014 2015 2016 2017 2018 1H18 1H19

NPL - gross NPL - net

Exhibit 26. NPL by Segment

Source: Company

NPL (gross) % - Bank only 2014 2015 2016 2017 2018 1H18 1H19

Micro 1.12 1.13 1.00 1.08 1.01 1.41 1.40 Consumer 1.21 1.30 1.18 1.05 1.03 1.27 1.35 Small Comm 3.41 2.89 2.95 3.01 3.14 3.77 3.75 Medium 5.91 8.35 7.90 5.45 6.78 6.02 5.55 Corporate 1.78 4.15 5.40 6.44 5.48 5.38 4.82 SoE - - - - 1.05 0.44 0.97 Total NPL 1.69 2.02 2.03 2.10 2.14 2.33 2.33

Exhibit 25. NPL

NPL - Bank only 2014 2015 2016 2017 2018 1H18 1H19

NPL - gross 1.69% 2.02% 2.03% 2.10% 2.14% 2.33% 2.33%NPL - net 0.36% 1.22% 1.09% 0.88% 0.92% 1.11% 1.11%

15

B A N K I N G

Financial Highlight

Maintained net interest income growthBRI’s interest income was recorded at IDR57 trillion in 1H19, or up 12% compared to interest income booked in 1H18. Likewise, the Bank’s interest expenses also increased in this period, up from IDR14 trillion to IDR19 trillion. Nonetheless, the net interest income was still higher in 1H19 at IDR38 trillion compared to IDR37 trillion in 1H18.

Pertumbuhan net interest income yang terjagaInterest income Bank BRI di periode 1H19 tercatat sebesar Rp57 triliun, atau tumbuh 12% dibandingkan dengan periode 1H18. Seperti yang telah dijelaskan sebelumnya bahwa beban bunga Bank meningkat di periode ini, hal tersebut juga tercermin dari interest expense Bank BRI yang tumbuh dari Rp14 triliun menjadi Rp19 triliun. Meski demikian, net interest income di periode 1H19 tumbuh sedikit lebih tinggi dibandingkan dengan periode 1H18, yaitu dari Rp37 triliun, menjadi Rp38 triliun.

Exhibit 27. Net Interest Income

Source: Company

Bank Only (IDR Tn) 2014 2015 2016 2017 2018 1H18 1H19 Growth YoY

Interest Income 72.46 81.55 90.02 98.25 106.34 51.16 57.12 12%Interest Expense (23.34) (26.96) (26.92) (27.83) (31.43) (14.22) (18.65) 31%Net Interest Income 49.13 54.60 63.10 70.43 74.91 36.94 38.47 4%

72.46 81.55

90.02 98.25

106.34

51.16 57.12

(23.34) (26.96) (26.92) (27.83) (31.43)

(14.22) (18.65)

49.13 54.60

63.10 70.43 74.91

36.94 38.47

2014 2015 2016 2017 2018 1H18 1H19

Interest Income Interest Expense Net Interest Income

Solid non-interest income growthMeanwhile, the non-interest income of Bank BRI recorded significant growth of 20% in the 1H19 period compared to 1H18. The growth was supported by higher other income which grew 46% and higher income from fees and commissions which grew 13%.

Pertumbuhan pendapatan non bunga yang baikDi sisi lain, non-interest income Bank BRI di periode 1H19 mencatatkan pertumbuhan yang signifikan yaitu sebesar 20% dibandingkan dengan 1H18. Pertumbuhan tersebut didukung oleh adanya peningkatan pendapatan dari pendapatan lainnya yang tumbuh 46% dan pendapatan dari fees and commissions yang tumbuh 13%.

16

B A N K I N G

Financial Highlight

Exhibit 28. Free & Other Opr. Income

Source: Company

9.2

13.7

16.7

18.7

22.8

9.8

11.8

0.0

5.0

10.0

15.0

20.0

25.0

2014 2015 2016 2017 2018 1H18 1H19

Higher operating expensesIn 1H19, the Bank’s operating expenses increased by 11% to IDR21 trillion from IDR19 trillion in 1H18. The biggest contribution toward the increase in Operating Expenses came from the increase in salaries and benefits which grew 11% to IDR12 trillion and GA expenses which rose 12% to IDR7 trillion. With the growth of operational expenses and the more challenging lending environment, the Bank’s ratio of Operating Expenses to Operating Income (BOPO) posted an increase. BRI’s BOPO in 1H19 was recorded at 71.12%, or higher than the level in 1H18 of 70.50%. However, on an industry comparison, the level of BOPO of conventional Banks stood at 80.24%, or higher than Bank BRI’s BOPO.

Operating expense yang meningkatPer 1H19, operating expense Bank tumbuh 11% menjadi Rp21 triliun dari Rp19 triliun di 1H18. Kontribusi terbesar dari peningkatan operating expense berasal dari naiknya salaries and benefit yang tumbuh 11% menjadi Rp12 triliun dan GA expense yang tumbuh 12% menjadi Rp7 triliun. Dengan adanya pertumbuhan beban operasional dan lebih menantangnya penyaluran kredit, hal ini tercermin dari meningkatnya beban operasional dibandingkan dengan pendapatan operasional (BOPO) Bank. BOPO Bank BRI per 1H19 tercatat sebesar 71,12%, lebih tinggi dibandingkan dengan 1H18 yang tercatat sebesar 70,50%. Namun dibandingkan dengan industri, level BOPO kelompok Bank konvensional berada di level 80,24%, lebih tinggi dibandingkan dengan BOPO Bank BRI.

Bank Only (IDR Tn) 2014 2015 2016 2017 2018 1H18 1H19 Growth YoY

Fee & Other Opr. Income 9.2 13.7 16.7 18.7 22.8 9.8 11.8 20%Fees and Commissions 6.1 7.4 9.2 10.3 11.9 5.5 6.2 13%Recovery 2.1 3.8 4.5 5.0 6.2 2.4 2.8 17%Others 1.0 2.5 3.0 3.3 4.7 1.9 2.7 46%

17

B A N K I N G

Exhibit 29. Other Operating Expense

Source: Company

(24.47)

(27.97)

(33.03)(36.31)

(39.47)

(18.50)(20.50)

(45.00)

(40.00)

(35.00)

(30.00)

(25.00)

(20.00)

(15.00)

(10.00)

(5.00)

-2014 2015 2016 2017 2018 1H18 1H19

Exhibit 30. Operating exp vs operating income BOPO (Bank only)

Source: Company

65.42%

66.92%

68.69%69.14%

68.48%

70.50%71.12%

2014 2015 2016 2017 2018 1H18 1H19

Financial Highlight

Double-digit net profits growthAmid rising operational expenses and single-digit net interest income growth, Bank BRI still recorded good growth in Net Profits. In 1H19, Bank BRI’s Net Profits (Bank only) grew by 11% to IDR16 trillion from IDR15 trillion in 1H18. Higher non-interest income was a main factor behind the growth in BRI’s Net Profits.

Net Profit yang tumbuh double digitDi tengah meningkatnya beban operasional dan pertumbuhan net interest income yang single digit, Bank BRI masih mencatatkan pertumbuhan net profit yang baik. Per 1H19, net profit Bank BRI (Bank only) tercatat tumbuh sebesar 11% menjadi Rp16 triliun dari Rp15 triliun di periode 1H18. Pertumbuhan pendapatan non interest menjadi faktor pendukung pertumbuhan net profit Bank BRI.

Exhibit 31. Net Profit (IDR tn)

Source: Company

24.18 25.20 25.75

28.47

31.70

14.56 16.20

2014 2015 2016 2017 2018 1H18 1H19

18

B A N K I N G

Financial Highlight

The Bank’s NIM is higher than the industry’sBank BRI’s net interest margin (Bank only) stood at 7.02% in 1H19, or lower than in the same period of the previous year. Nevertheless, the Bank’s NIM was still above the industry’s NIM which stood at 4.90%. This shows that BRI grew better than the banking industry.

NIM Bank yang lebih baik dibandingkan dengan industriNet interest margin Bank BRI (Bank only) pada 1H19 berada di level 7,02%, lebih rendah dibandingkan dengan periode yang sama tahun sebelumnya. Meskipun demikian, level ini masih di atas NIM industri yang berada di level 4,90%. Hal ini menunjukkan bahwa Bank BRI mampu tumbuh lebih baik dibandingkan dengan pertumbuhan industri perbankan.

Exhibit 32. NIM

Source: Company

8.51%8.13% 8.00% 7.93%

7.45% 7.64%7.02%

2014 2015 2016 2017 2018 1H18 1H19

Maintaining its ROA and ROEHistorically, Bank BRI’s ROA has been quite stable. As of 1H19, BRI’s ROA stood at 3.31%, or slightly lower than the level in 1H18 of 3.37%. Nonetheless, Bank BRI’s ROA is still above the industry’s level of 2.51%. Meanwhile, Bank BRI’s ROE was recorded at 19.02%. The lower ROE in 1H19 than in 1H18 (19.33%) reflects the fact that the equity growth outpaced the growth in net profits.

ROA dan ROE yang terjagaSecara historical, level ROA Bank BRI tercatat cukup stabil. Per 1H19, ROA BRI berada di level 3,31%, sedikit lebih rendah dibandingkan dengan 1H18 yang berada di level 3,37%. Namun ROA Bank BRI ini masih di atas industri yang berada di level 2,51%. Sementara itu, ROE Bank BRI tercatat sebesar 19,02%. Lebih rendahnya level ROE di 1H19 ini dibandingkan dengan 1H18 (19,33%) disebabkan oleh laju pertumbuhan ekuitas yang lebih tinggi dibandingkan dengan laju pertumbuhan net profit.

19

B A N K I N G

Exhibit 33. ROA & ROE

Source: Company

4.73% 4.19% 3.84% 3.69% 3.68% 3.37% 3.31%

31.19%29.89%

23.08%

20.03% 20.49% 19.33% 19.02%

2014 2015 2016 2017 2018 1H18 1H19

ROA ROE

Financial Highlight

Strong capitalIn terms of capital, BRI’s CAR (Bank only) as of 1H19 stood at 20.77%, an increase compared to its level in 1H18 of 20.13% and as of the end of 2018 at 20.12%. BRI’s CAR can be considered to be quite high and on a par with the conventional commercial banking industry’s CAR of 22.63%. In respect to its trend, the increase in BRI’s CAR compares favourably to the industry’s CAR which has declined from its level at the end of 2018 of 22.97%.

Permodalan yang kuatDari sisi permodalan, KPMM BRI (Bank only) per 1H19 berada di level 20,77%, meningkat dibandingkan periode 1H18 di level 20,13% dan di akhir tahun 2018 di level 20,12%. Level KPMM Bank BRI terbilang cukup tinggi dan hampir menyamai KPMM industri bank umum konvensional yang berada di level 22,63%. Secara tren, peningkatan KPMM Bank BRI ini, lebih baik dibandingkan industri yang mengalami penurunan dibandingkan dengan akhir tahun 2018 yang tercatat sebesar 22,97%.

Exhibit 34. CAR

Source: Company

18.31%

20.59% 22.91%22.96%

20.12% 20.13% 20.77%

2014 2015 2016 2017 2018 1H18 1H19

20

B A N K I N G

APPENDICES

21

B A N K I N G

AppendicesAppendix 1. Financial Statement (IDR trillion)

Consolidated (IDR Tn) 2014 2015 2016 2017 2018 1H18 1H19 YoY YTD

Total Assets 801.98 878.43 1,003.64 1,126.25 1,279.86 1,153.23 1,288.20 11.70% 0.65%Total Loans 510.70 581.10 640.96 708.89 843.60 794.30 888.32 11.84% 5.30%Total Liabilities 704.28 765.30 856.83 958.90 944.27 837.99 945.05 12.78% 0.08%Demand Deposits 90.05 114.37 142.55 147.44 180.67 140.23 167.41 19.38% -7.34%Savings 236.40 272.47 303.27 349.44 387.18 343.78 374.54 8.95% -3.26%Time Deposits 295.88 282.16 308.71 326.44 376.42 353.99 403.10 13.87% 7.09%Total Equity 97.71 113.13 146.81 167.35 185.28 166.68 190.84 14.50% 3.00%

Interest Income 75.12 85.43 94.00 102.90 111.58 53.65 60.03 11.89% Interest Expense (24.71) (28.45) (28.58) (29.89) (33.92) (15.40) (20.10) 30.53% Net Interest Income 50.41 56.98 65.42 73.01 77.67 38.25 39.93 4.38% Net Profit 24.23 25.41 26.23 29.04 32.42 14.94 16.16 8.19%

Bank Only (IDR Tn) 2014 2015 2016 2017 2018 1H18 1H19 YoY YTD

Total Assets 778.05 846.00 964.00 1,076.44 1,234.20 1,097.37 1,224.40 11.58% -0.79%Gross Loans 490.40 558.44 635.29 708.00 804.34 758.95 844.54 11.28% 5.00%Total Liabilities 778.05 846.00 964.00 1,076.44 898.03 796.64 899.39 12.90% 0.15%Demand Deposits 89.08 112.99 140.76 144.43 176.41 137.83 162.28 17.74% -8.01%Savings 232.41 267.61 297.65 342.76 378.91 336.24 365.83 8.80% -3.45%Time Deposits 278.92 262.18 285.43 316.14 342.72 322.56 371.29 15.11% 8.34%Total Equity 97.18 112.39 145.46 165.05 181.02 163.02 186.28 14.27% 2.91%

Interest Income 72.46 81.55 90.02 98.25 106.34 51.16 57.12 11.65% Interest Expense (23.34) (26.96) (26.92) (27.83) (31.43) (14.22) (18.65) 31.17% Net Interest Income 49.13 54.60 63.10 70.43 74.91 36.94 38.47 4.14% Net Profit 24.18 25.20 25.75 28.47 31.70 14.56 16.20 11.32%

Appendix 2. Financial Ratios

Bank Only 2014 2015 2016 2017 2018 1H18 1H19 YoY YTD

CAR 18.31% 20.59% 22.91% 22.96% 20.12% 20.13% 20.77% 0.64% 0.65%ROA 4.73% 4.19% 3.84% 3.69% 3.68% 3.37% 3.31% -0.06% -0.37%ROE 31.19% 29.89% 23.08% 20.03% 20.49% 19.33% 19.02% -0.31% -1.47%BOPO 65.42% 66.92% 68.69% 69.14% 68.48% 70.50% 71.12% 0.62% 2.64%LDR 81.68% 86.88% 87.77% 88.13% 89.57% 95.27% 93.90% -1.37% 4.33%NIM 8.51% 8.13% 8.00% 7.93% 7.45% 7.64% 7.02% -0.62% -0.43%CoF 4.38% 4.24% 3.83% 3.60% 3.47% 3.29% 3.64% 0.35% 0.17%

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