Jakarta. State-owned lender Bank Rakyat Indonesia (IDX: BBRI) posted a consolidated net profit of Rp 26.5 trillion ($1.61 billion) in the first half of 2025, supported by its ongoing strategy to boost low-cost funding (CASA), which helped reduce funding costs and strengthen the bank’s operational fundamentals.

“BRI’s financial performance in the first half of 2025 shows a positive and sustainable growth trend, with a strong focus on CASA growth that has driven funding efficiency,” BRI President Director Hery Gunardi said during a virtual earnings briefing on Thursday.

Total assets rose 6.5 percent year-on-year to Rp 2,106.4 trillion, while third-party funds (DPK) increased by 6.7 percent to Rp 1,482.1 trillion. CASA continued to dominate the funding composition, growing 10.6 percent year-on-year and accounting for 65.5 percent of total deposits.

“The growth in CASA was driven by a 16.1 percent increase in current accounts and a 6.8 percent rise in savings,” Hery said.

Loan disbursement rose 6.0 percent year-on-year to Rp 1,416.6 trillion, with the micro, small, and medium enterprise (MSME) segment accounting for the largest share of the loan book, reaffirming BRI’s core focus on inclusive financing.

Non-interest income, including fees and other operating revenues, grew 10.6 percent year-on-year to Rp 26.7 trillion, while pre-provision operating profit (PPOP) rose 2.2 percent to Rp 58.3 trillion, reflecting the bank’s stable core earnings.

Despite the growth in operational indicators, BRI’s net profit attributable to shareholders fell 11.5 percent year-on-year in the first half of 2025, reflecting a high base effect from large provisioning expenses at the start of the year and a decline in commission-based income. Accounting adjustments in the bank’s insurance business also weighed on revenue.

Quarterly performance showed some softness, with Q2 profit at Rp 12.6 trillion, down 8.8 percent from Rp 13.67 trillion in Q1 2025.

Nevertheless, Hery remained upbeat, citing improvements in lending momentum and a more solid funding composition as a basis for stronger intermediation returns going forward.

“Loan and financing activities are accelerating, and the healthier CASA mix gives us room to optimize yields in the second half,” he said.