Bank BRI: H1 net profit collapsed 99.9%, yet operating profit grows at double-digit pace

On August 31, 2026, PT Bank Rakyat Indonesia released its consolidated financial statements for the first half of 2026. Net profit for the half-year fell 99.9% year on year, yet operating profit in the second quarter grew 12.0%, and trailing twelve-month P/E stands at 8.3 with ROE of 18.9%. The shares look attractive: operating momentum remains strong, and the drop in net profit appears to be one-off.

Key takeaways

— H1 net profit fell 99.9% due to one-off items, while Q2 operating profit rose 12.0%

— Q2 2026 net interest income reached IDR 40.2bn, up 12.0% year on year

— LTM operating profit of IDR 61.6bn supports a P/E of 8.3

— ROE of 18.9% underpins a dividend yield of 10.1%

— The portal's model values the shares fairly, with zero upside

Attractiveness

Key figures, IDR bn

H1 net profit fell 99.9% due to one-off items, while Q2 operating profit rose 12.0%

For H1 2026, net profit was just IDR 15,633.8 million versus IDR 1,380,000 million a year earlier – a 99.9% decline. However, operating profit for the same period grew: in Q2 2026 it reached IDR 20,059.9 million, up 12.0% from Q2 2025.

Such a sharp divergence between net and operating profit points to large one-off items below the operating line – likely provisions or taxes. The bank's core operations remain healthy, and the net profit drop does not reflect a deterioration in the underlying business.

Q2 2026 net interest income reached IDR 40.2bn, up 12.0% year on year

Net interest income in Q2 2026 was IDR 40,155.0 million – the best quarterly figure in two years. Growth of 12.0% year on year accelerated from 3.6% in Q4 2025 and 0.2% in Q3 2025.

The positive trend reflects loan portfolio expansion: loans grew from IDR 1,460.7 trillion at end-2025 to IDR 1,580.4 trillion as of June 30, 2026. The bank is expanding its interest base, supporting operating profit.

LTM operating profit of IDR 61.6bn supports a P/E of 8.3

For the trailing twelve months (to June 2026), operating profit reached IDR 61,558.3 million. With a market cap of IDR 513,833 million, this gives a P/E of about 8.3 – below the average for Indonesian banks.

The low valuation is paired with high profitability: LTM ROE was 18.9%. The bank earns nearly a fifth of its capital per year, which at this share price looks undervalued.

ROE of 18.9% underpins a dividend yield of 10.1%

The trailing twelve-month dividend yield is 10.1% – above the average for the Indonesian market. Such a payout level is possible thanks to stable profit generation: ROE of 18.9% allows a significant portion of earnings to be distributed as dividends.

For shareholders, this means substantial cash flow, even if the share price does not rise. However, it is worth remembering that dividends are paid from net profit, which fell sharply in H1 – if one-off factors persist, future payouts could be at risk.

The portal's model values the shares fairly, with zero upside

According to the portal's model, the fair value of the shares matches the current price – upside potential is 0%. This means the market has already priced in expected profitability and dividends.

The shares are included in the 'Frontier AI Selection' strategy on the portal, reflecting their appeal to algorithmic strategies, but this is not a buy recommendation. Investors should rely on their own criteria.

Valuation on the latest reported figures

Bottom line

The bank's operations remain strong: interest income is growing at double-digit rates, the loan book is expanding, and ROE exceeds 18%. The 99.9% drop in net profit appears one-off and does not reflect a deterioration in the core business, but it requires management explanation. At a P/E of 8.3 and dividend yield of 10.1%, the shares look attractive for long-term holders, yet the portal's model sees no upside. The key question is the sustainability of net profit: if one-off items fade, the valuation could be revised upward.