Good morning, everyone. Thank you for joining us.

Hey, everyone. Thank you.

Morning.

Morning.

Good morning.

Morning, everyone. Then

Morning, everyone.

Thank you, Siaga. Good morning, everyone.

Let me start with the to introduce the Board of Directors members, ya. As approved at the Extraordinary Shareholder Meeting on December 17, 2025, BRI has welcomed several new members to our management team.

I'm pleased to introduce five new directors, each bringing deep experience and also strong execution capabilities: Ibu Vivien, in my left, ya, actually used to be the Director Finance Strategy, and then get a new role as Deputy Group CEO of BRI. Second one is Pak Ahmad Royadi, who are with us and in my right, now is the Chief Financial Officer or CFO, ya.

Ibu Ety Yuniarti, the Director of Risk Management, maybe the camera can spot Bu Etty, previously SVP of Retail Risk; Pak Aris Hartanto, Director Consumer Banking, formerly the CEO of BRI Life; and the last one is Pak Mahdi Yusuf, Director Legal Compliance, formerly CEO of Bank Lampung. The rest of Board of Directors remain unchanged, ensuring continuously and also stability alongside this new appointment.

Before discussing our results, I would like to give you some color on the current update on the macroeconomic environments. Indonesian GDP remained resilient at 5.1% year-on-year in 2025, with household consumption continuing to support the growth.

Investment, gross fixed capital formation, accelerating toward the end of 2025, signaling improving business activity and also capacity in branch expansion, particularly in more formal sectors with a stronger contribution to overall GDP. Consumption patterns became increasingly selective, with stronger growth in transportation and communication, and restaurant and hotel, while basic goods remained relatively more moderate, indicating demand skew toward to upper-middle segment.

This shift is also reflected in funding trends, where industry deposit growth was primarily driven by the upper-middle segment, while smaller balance deposit expanded more modestly, pointing to slower recovery in the lower-income segment. During this resilient yet uneven growth, policy support played an important role in sustaining sector stability and also improving liquidity conditions.

Macroeconomic stability remained intact despite IDR volatility, with inflation maintained at around 2.9% year-on-year and ample FX reserve, allowing Bank Indonesia to maintain a supportive stance. Fiscal spending accelerated in 2025, reaching around Rp3,450 trillion, with a clear 4Q '25 ramp-up supporting domestic demand and liquidity.

To support the more inclusive recovery, the government roll the government rolled out additional fiscal stimulus of approximately Rp30 trillion in October, including cash transfers to 35.1 million households and expanded internship program, which accelerated fiscal disbursement in fourth quarter 2025, expected to support domestic demand into 2026. Policy rate were cut to 4.75% and held through year-end, with lower SRBI issuance improving liquidity and policy transmission.

Purchasing power began to recover in fourth quarter '25, led by upper-income segment, with early stabilization below as the fiscal support took effect. Our on-the-ground force check-in indicate a pickup in MSME activity toward year-end, supported by seasonal demand during Christmas and New Year, subsidized and also cash assistance disbursement in fourth quarter, and higher government spending ahead for fiscal year year-end 2025.

Overall, fiscal-monetary conditions has improved liquidity condition entering 2026, supporting BRI micro and retail franchise with disciplined growth and prudent asset quality. BRI remain well-positioned to capture emerging tailwind while maintaining prudent amid global uncertainties.

Ladies and gentlemen, while we take a look the banking system Indonesia, Indonesian banking sector remains stable, with loan growth at 9.6% year-on-year in 2025, gaining momentum since mid-year alongside improving business condition and recovering credit demand. Growth remained in the high single-digit range, reflecting disciplined underwriting.

Deposit expanded steadily, keeping industry LDR in the mid-80% range and indicating balanced liquidity. Profitability stayed resilient, with net interest margin at 4.6%, while asset quality remained manageable, with gross NPL plus minus 2% and LAR less than 10%.

Capital level remained strong, with the capital adequacy ratio in the mid-20% range underpinning system resilience. Compared to industry, BRI recorded relatively stronger loan growth and also structurally higher NIM, and supported by solid capital level.

While asset quality is still normalizing, risk indicators continue to improve and remain well managed. In this operating environment, we remain committed to continue our transformation focus on the two key priorities.

Number one is transform in the funding franchise. We display we display we explain this one a lot with you guys, analyst, you know.

What we have done so far, ya, we would like to optimize digital channel to increase business engagement and also transaction intensity driving CASA growth; deepen cross-out cross-segment and subsidiary collaboration through integrated product bundle, high-quality payroll with better average balance, and also ecosystem-based solution; better capture operating account, payroll, and also supplier transaction. We also strengthen retail and wholesale synergy to accelerate low-cost funding growth.

In regard of core revamp and also accelerate new engine, core revamp is in line with the micro and SME, and the new engine is which is the consumer banking. In 2025, we have significantly strengthened our micro business process, improving underwriting quality.

As a result, the 2025 vintage are tracking better than 2023-2024 cohort, which are expected to like largely dissolve by 2026 for 2023 vintage and 2027 for 2024 vintage. By 2027, the portfolio is expected to be predominantly consisted of the batches originated under the enhanced credit standards, supporting stronger asset quality, lower credit cost volatility, and a more sustainable profitability.

In consumer, we have strengthened manpower, distribution, and business process, which accelerating payroll penetration through higher ATB acquisition, improving borrowers salary profile, refocusing mortgage mortgages toward Tier 1 developer and higher income segment, and capturing payroll flow from commercial and corporate client to enhance across-segment synergy. Overall, we aim to structurally improve our funding mix and asset quality, while scaling new growth engine to support more sustainable performance.

Strategic initiative execution remain our key priority through dedicated PMO across micro, consumer, SME, and One BRI Solution, human capital, and also operation to ensure disciplined implementation; network and digital optimization to enhance productivity and consumer experience within a stronger transaction ecosystem; strengthen micro risk management; accelerated consumer growth, including gold pawning and also auto loan; and expanded commercial and corporate capabilities to deepen ecosystem penetration and also support CASA generations. As part of our strategic priorities, we continue to execute initiative in retail funding trans transformation and also asset quality improvement, both of which have begun to deliver early results.

For initiative in retail funding update, transforming funding franchise, merchant ecosystem revitalization through business cluster acquisition and key anchor merchant has added 69 clusters, expanding market share and increasing the transaction velocity to support CASA growth. Lifestyle-driven CASA campaign in selected urban cluster have enhanced transactional balance and strengthen merchant stickiness.

Network capability enhancements across branches and micro unit to standardize service quality and also improve customer experience, supporting scalable ecosystem growth. Strengthen cross-subsidiary collaboration to deliver bundled integrated offering.

In term of initiative in asset quality improvement update, we would like continue strengthening the three key pillars to reinforce underwriting discipline and asset quality: enhanced loan officers training and recruitment, added around 1,500 dedicated field collection staff, and redesigned role to improve recoveries and also overall asset quality oversight. We also centralized and prescreened credit pipeline with automated monitoring to enable faster risk detection and complemented by local loan officers expertise.

Refined prescreening tool through sectoral and also regional risk model, strengthen scoring and risk acceptance criteria, and enhance sector guidance to improve risk selections. We also continue to monitor and optimize digital channel performance, such as BRImo on mobile banking, business merchant, QRIS, and also remain a key driver for retail CASA growth.

BRImo, look in term of numbers of users increased by 18.9% year-on-year, reaching 45.9 trillion million with a 57.8% penetration rate, but more importantly, we see improvement in monthly active user from 17.8 million active user to 20 million, increased by almost 18% year-on-year. Also the financial transaction increased by 29.5% year-on-year, and transaction value grew by 26.4% year-on-year.

Business merchant and QRIS also, in term of the numbers productivity merchant business rose 3.8% year-on-year, while sales volume per merchant grew 19.8% year-on-year, supported by our merchant engagement initiative that strengthen usability, trust, and also transaction adoption. Our QRIS sales volume also increased by 100% year-on-year, and the numbers of transaction grew by 127.5% year-on-year.

That's mean our retail transaction initiatives have helped us to drive higher money circulation within BRI ecosystem and driving CASA and lowering funding costs, supporting a more efficient funding structure. Ladies and gentlemen, moving forward, we aim to diversify our income sources by expanding consumer banking through several initiative, ya.

We increase penetration among ATB customers while driving growth in high-quality payroll, payroll account sourced from the corporate client lead; strengthen BRI BRI Finance dealer integration and implement fast-track underwriting to improve SLA. We also expand selectively through Tier 1 developer partnership to enhance yield and maintaining also strong asset quality.

We also continue scaling Pegadaian integrated gold ecosystem, reinforcing group collaboration, cross-referral flows, and also ecosystem-based growth; institutionalize regional wealth management team to collaborate across the segment, deepen product penetration, and also drive fee income, CASA rich, and also the fund under management growth. In 2025 and into 2026, commercial and corporate segment will serve as our tactical focus, emphasizing sustainable growth and transaction-led relationship.

For commercial corporate clients, we are prioritizing transaction banking relationship to drive higher-quality CASA and recurring free fee income. Our focus remain on resilient and struct- structurally expanding sectors where transaction in- intensity and ecosystem depth are stronger, supporting better risk selection and more sustainable portfolio growth.

In the commercial segment, the top three sector are energy, construction, and trading, with around 20% of the total commercial growth linked to the state budget and government-related project. Meanwhile, in the corporate segment, in the strongest year-on-year growth has been driven by agriculture, energy, and also electricity.

We are deepening penetration across supplier, distributor, employee ecosystem, connecting corporate and commercial client with other segments through payroll services, supply chain financing, cash cash solution. This ecosystem approach enhance CASA capture, strengthen cross-segment synergies, and improve deposit intensity.

We continue to monitor and drive the growth of the second engine in consumer and gold business lending and serving by focus on the quality customer, improving portfolio transaction. For consumer business, consumer loan, ya, grew 10.6% year-on-year, driven by payroll that was up 9.9% year-on-year and mortgages that increased 13.3% percent year-on-year, with growth focus on higher-quality borrower, higher-balance private payroll customers, and also selective Tier 1 developer exposure.

For auto loans rose 266.4% of the low base, ya, because this we just started, ya, this the auto loan business. Growth is being directed towards stronger segment within the BRI Group ecosystem through integrated underwriting and dealer collaborations.

Fund under management increased 18% year-on-year, supported by deeper cross-segment relationship. Fee income will be further enhanced through expanded investment offering, stronger wealth management execution, and improved cross-referral across segment.

For the gold-based business, gold installment loan up 305.9%, targeting high-net-worth individual customers, and also gold saving up 66% year-on-year, with active customers increasing 46.9% year-on-year, supported by expanded sales channel, B2B transaction, and cross-selling to BRI Group customers through BRI extensive distribution network. As of December 2025, financial performance showed gradual improvement compared to the September 2025.

Total asset grew 7.1% year-on-year, supported by loan growth of 12.3% year-on-year. The third-party fund increased 7.4% year-on-year, driven by strong CASA growth of 12.7% year-on-year.

Both current and also saving account continue expand, reflecting the positive impact of retail funding initiative and improving liquidity condition. Fee and other operating income rose 2.6% year-on-year, supported by strong gold sales at Pegadaian, higher fee-based income, and a treasury performance.

Recovery income improved in quarter four 2025, rising 12.3% quarter-to-quarter, driven by accelerated collection initiative, both claim and also the non-claim. PPOP increased 2.6% year-on-year and 15.4% quarter-to-quarter, supported by stable loan yield, lowering funding cost, and well-managed operating expenses.

Net profit declined 5.3% year-on-year in 2025. However, it is important to note the 2024 included a one-off non-loan provision reversal of Rp4.8 trillion related to the restructuring scheme of state-owned construction company.

Then talk about the key metric are tracking as expected as we remain in the bad in the bad-debt resolution phase. However, we started to see gradual improvement in NPL and also SML in fourth quarter 2025.

While profit profitability metric faced challenges, core earning remained robust, supported by strong retail funding growth and increased contribution from subsidiaries. Reported net interest margin stood at 7.8% in December 2025, above our guidance, supported by a meaningful improvement in funding cost, as the cost of fund declined by 20 basis point year-on-year, driven by strong increase in CASA balance and balance sheet optimalization.

Loan at risk declined to 9.6%, falling below 10% for the first time since the pandemic, while LAR or loan at risk coverage was maintained above 50% at 56.8%. Cost of credit was 3.35% as of December 2025.

Profitability metric improved quarter-to-quarter, as return on asset improved 19 basis point quarter-to-quarter, and RoE also improved 102 basis point quarter-to-quarter. 2025 delivery and also 2026 guidance: turning to our guidance, we delivered mostly in line with our 2025 target, except for cost of credit, where we front-loaded provision to accelerated the cleanup of legacy micro loan and start to add provision for disaster-impacted region in Sumatra.

This reflect our conservative stance amid still uneven demand recovery and allow us to enter 2026 with a cleaner book and also lower credit cost pressures. Loan growth 2026, we guide loan growth of 7% until 9%, ya, reflecting a high base from a large corporate disbursement in quarter four 2025, 5.8% quarter-to-quarter growth.

Growth is expected to be driven preliminary by consumer, commercial, and also corporate segment. Net interest margin 2026, we guide NIM at 7.4% to 7.8%, assuming fewer rate cut fewer rate cut of one, two times and more normalized liquidity environment compared 2025, ya.

For 2026, we guide cost of credit at 2.9% until 3.2%, supported by continued normalization in micro asset quality. In 2025, net NPL downgrade improved sequentially each quarter, bad-debt intake declined, and SML trend improved, indicating a narrowing risk funnel.

Write-off should also moderate, as part of the Rp2 trillion 2026 write-off budget was already accelerated in 2025. The upper end of the guidance reflect prudence and considering potential risk such as food price volatility, pressure on lower-income purchasing power, and broader micro uncertainties that may affect the newer micro vintage.

For cost for cost-to-income ratio full year 2026, we maintaining guidance at 41% to 43%, reflecting disciplined cost management while continuing to invest in loan officer productivity, loan monitoring, and also collection effectiveness, IT opex to support the business growth. I would like now to turn the call over Pak Royadi, our new CFO, to discuss our financial in more detail.

Pak Royadi, please, your turn.

Thank you, Pak Hery. Let me now walk you through our financial performance, starting with the balance sheet.

Like mentioned by Pak Hery before, total asset growth was 7.2%, supported by loan growth of 12.3%. At the consolidated level, contribution from Pegadaian and PNM reached 11.6% of total loans, increase from 9.9% a year ago, supporting overall loan growth, particularly in micro segment.

Loan and financing provision grew 2.5% year-on-year, as we maintain provision level while also utilizing reserves built during the pandemic to absorb bad-debt write-offs. Provision levels remain elevated at 5.46% of total loans, compared to around 4.1% pre-pandemic level.

On the funding side, deposit grew 7.4% year-on-year, supported by strong 12.7% increase in CASA, while our leverage modestly increased to 6.5 times in 2025, increase from 6.2 in 2024. Next, we move to funding structure.

We continue to see gradual improvement in mix, supported by internal initiative and relatively supportive liquidity environment. Total deposit grew 7.4% year-on-year in 2025, driven by solid CASA growth of 12.7% year-on-year, bringing the CASA ratio to 70.6%.

This is the level of all-time high for BRI in terms of the CASA ratio. While the improvement partly reflects a more favorable system liquidity backdrop, we also continue to execute initiative to structurally strengthen CASA across segments.

We began to see improvement in cost of fund from the end of third quarter 2025, supported by improvement system liquidity following monetary easing, as benchmark rate cuts typically transmit with a lag. Repricing became more visible starting in third quarter.

The decline was mainly driven by time deposit cost, which fell quite significant, 58 basis point Q-on-Q, as competition is. Current account and saving account cost remain relatively stable.

Saving grew strong at 4.4% Q-on-Q, while saving cost increased only 3 basis point Q-on-Q, keeping our total saving cost below 50 basis point. This reflect a healthier funding mix and disciplined pricing, supporting margin rate resilience.

If we discuss further about saving, our structure relatively aligned with the overall system liquidity structure, where balance remain concentrated in the upper-tier affluent segment, ensuring we are positioning where liquidity growth is the strongest. Total saving increased by 7.8% year-on-year in 2025, primarily driven by affluent segment, which grew 44.7% year-on-year, or grew quite significantly, outperforming other peers and reflecting successful penetration in the higher-value customer.

Within the affluent segment, the strongest growth came from balance above Rp5 billion, which expanded by 199% or double, ya, consistent with broader macro liquidity trends and improved wallet capture. On the side note, we also observe improved funding retention trend.

If you see in this graph, with monthly average balance suppressing the prior year's year-end level earlier in the year, indicating stronger stability and stickier deposit behavior. Next.

For loan mix composition, micro remains the largest contributor, accounting for 42.6% of total loans. This is followed by corporate 22.5%, SME 15.8%, consumer at 15%, and commercial at 4%.

Micro lending remains soft, with Kupedes contracting by 12.3% year-on-year, reflecting ongoing portfolio consolidation and continued focus on asset quality and recoveries. In contrast, consumer, commercial, and gold pawning segments supported overall growth, driving the total loan increase 5.8% Q-on-Q and 12.3% year-on-year.

Since we want to improve our capability to serve other segment, we also reiterate that we will continue our dominance in micro business in Indonesia. We are on the process strengthening the business model in micro, so that it will be more fit going forward with the maintained asset quality.

Despite portfolio mix shift, margin pressure was well contained. Loan yield remained stable at around 13%, supported by higher contribution from Pegadaian and PNM.

Their share within the micro segment in a consolidated basis increased from 21.6% to 27.2% in 2025, and their contribution to total consolidated loan also rose from 10% to 11.6%, supporting overall yield resilience. Next.

To provide more color on commercial and loan growth, growth was well diversified, with the top three sectors contributing 43% of 2025 disbursement, led by state-budget-related projects, energy, and construction. Around 56% of this disbursement were linked to value chain ecosystem, this is our goals, ya, while 44% came from total regional sector players.

Loan utilization lean more investment financing, indicated project execution and capacity expansion. Meanwhile, corporate growth was driven mainly by agriculture, energy, and electricity.

In parallel, we have begun gradually developing value-chain-based financings across several ecosystem, focusing on selected anchor clients and their upstream and downstream partners. We still in the early stage.

This approach is designed to create more integrated banking relationship, unlocking cross-segment opportunities, such as higher-quality payroll account within customer, generating more stable and granular funding flow, and improving transaction visibility. Over time, this ecosystem-based model is expected to enhance relationship depth, improving risk monitoring through better cash flow transparency, and support more sustainable portfolio growth.

Next. As highlighted earlier, our focus on strengthening funding quality, improving deposit composition, and maintaining disciplined lending in translating into margin resilience.

Our consolidated NIM, like mentioned by Pak Hery before, reaches 7.8% in December 2025, remaining resilience despite asset quality pressure and portfolio mix shift. This was supported by disciplined cost-of-fund management and strong subsidiary growth, particularly from Pegadaian, that grew quite significant, 48% year-on-year.

Consolidated lending yield softened slightly Q-on-Q due to portfolio rebalancing. However, continued funding mix improvement is expected to support cost efficiency and margin stability.

Despite a tighter liquidity outlook in 2026, we expect cost of fund remain broadly stable. Our LDR stood at 91.6% versus 86.5% in 9M 2025, reflecting yield rate balance sheet optimization.

Total asset increase year-on-year with liquidity prudently managed, with our LDR target 90% to 92%, and supported by stable retail CASA flow. Now we move to P&L.

In 2025, our net interest income grew 5.5% year-on-year, supported by stronger yield contribution from PNM and particularly Pegadaian, whose share within micro increased 21% to 27.2%, and also improvement in better cost of fund. Loan yield remained stable at around 12.9%.

In terms of non-interest income, it is rose 2.6% year-on-year, driven by higher fee income, strong gold sales, and significant treasury gains growth. Recovery income declined 17.4% year-on-year due to softer collateral collection.

With new initiatives, additional field collection staff in place, early improvement were visible in fourth quarter 2025, and recovery rates we expect to normalize to 50% to 56% in 2026. Operating expenses increased 7.7% year-on-year, but cost-to-income ratio relatively stable at 42.5% or within the target.

PPOP grew 2.6% year-on-year, but in terms of the Q-on-Q, it is grew quite significant, 15%. Net income declined 5.3% year-on-year, mainly due to the absence of prior-year one-off gains from non-loan provision reversal last year, ya.

Sequentially, however, PPOP and net profit rebounded, like mentioned before, 15.4% and 8.2% Q-on-Q, respectively, indicating improving momentum that we expect to carry on into 2026. Next.

Non-interest income increased supported, like discussed before, the higher fee income, significant growth of treasury transaction, and net gold sales benefiting from high gold price in 2025. Pegadaian strengthened its gold ecosystem through B2B partnership and deeper integration within the BRI Group, leveraging BRI customer base and BRImo apps to distribute Pegadaian product more widely.

As a result, net gold fee income rose quite significantly to Rp2.4 trillion. Loan recovery income was softer during the year due to lower collection earlier on, though improvement began to show in the fourth quarter 2025 following the additional of field collection staff, and we expect it is normalized to 50% to 55% in 2026.

For 2026, we target our opex-to-asset ratio is 3% to 4%, and maintain cost-to-income ratio between 41% to 43%. While we continue to add manpower to strengthen capabilities, productivity improvement and ecosystem cross-selling are expected to keep cost manageable and support sustainable earning growth.

Next. If we're talking about the capital composition, our CAR still very manageable.

Our total CAR is 23.5% and Tier 1 CAR of 22.4%. Over the medium term, we aim to gradually optimize our capital structure by bringing total CAR closer to 20%, supported by stronger loan growth.

We plan also to continue high dividend distribution to shareholders, ya. The full year 2024 dividend payout was 86% that paid in 2025.

Then for the full year 2025, we are currently finalizing the full-year dividend with the intention to maintain higher than normal payout ratio, ya. With our CAR level is above 23% and our growth is 7% to 9%, going forward, we expect we can still maintain pay dividend higher than our normal, ya.

Then for year 2025, we expect to maintain similar dividend payout schedule as the previous years, and at least sustain the same dividend per share as for year 2024. With that, now I would like to turn the presentation over to Pak Akhmad, our Director Micro, to share more on the ultra-micro and then micro business segment.

Pak Ahmad, please.

Thank you, Pak Royadi. I will now elaborate on the performance and outlook of our micro segment.

PNM and Pegadaian's contribution to consolidated micro loans increased to 27.2% in 2025, up from 21.6% last year. Pegadaian led the growth with a 47.7% year-on-year increase, driven by a 53.8% year-on-year rise in gold-backed pawn lending, supported by B2B expansion and deeper integration within the BRI Group's ecosystem, including distribution through BRImo.

BRImo contributed 6.4% of total Pegadaian gold savings, and the newly launched gold installment product in 2025, also in collaboration with BRImo, has generated around 12,000 accounts to date. Meanwhile, PNM growth moderated to 0.4% year-on-year, broadly in line with BRI's overall micro performance.

This high Pegadaian's growth supported stable micro yields at 18.2% and lifted PNM and Pegadaian's contributions to consolidated net interest income to 22.5%, up from 19.1% a year ago. As mentioned by Pak Hery before, gold-backed pawn lending and savings will continue to serve as part of new engine of growth.

For 2026, we expect Pegadaian to maintain steady but more normalized growth, as gold prices are likely remain elevated, but with more stable price momentum compared to 2025. Structural demand for gold remain supported by global uncertainty and portfolio diversification trends, although stronger global growth and dollar index strength could moderate upside.

Meanwhile, BRI Micro is expected to return to positive, despite still-limited growth, supported by lower write-offs, improved productivity and business processes, and a gradually improving operating environment, including continued government support programs. At the same time, we are deliberately moderating growth at PNM, as cost of credit remains elevated, prioritizing asset quality over expansion.

Micro loan growth declined by 4.2% year-on-year in 2025, as we continue to focus on asset quality, collections, and funding. This includes strengthening operation by adding supervisors in all micro units, deploying field collection staff for written-off loans, tightening underwriting standards, and streamlining risk and operation across the micro segment.

Micro payroll loan or Briguna started to have positive growth at 0.1% year-on-year in 2025, with disbursement up to 11.4% year-on-year. This reflects its role as part of our second growth engine, supported by the introduction of dedicated Mantri Briguna or micro payroll loan staff in all BRI unit, of around 450 staff since July 2025, and stronger partnerships with civil servants, military, and police.

This partnerships expand reach into rural areas where BRI's micro network is already strong there. KUR maintained healthy growth of 1.8% year-on-year, meanwhile Kupedes growth was subdued as we continue to clean up the 2023 batch and resolve legacy restructured loan in 2025.

Borrowers per loan officer decreased further to 456 from a peak of 528 in 2022, in line with our effort to strengthen customer relationships and enable better service as we expand digital capabilities. Loans per officer remains steady at Rp17.9 billion, with productivity expected to increase as we execute on our micro transformation agenda.

To strengthen the micro foundation, we are focusing on three key areas. First area is human capital, that we strengthening organizational capabilities through extensive reskilling and retraining programs, redesigned recruitment and career journey, and the remodeling of micro loan officers' roles to improve productivity and credit discipline.

The second focus is business process, that by enhancing credit culture and operational discipline, while optimizing daily workflows to improve efficiency and control. In risk management, we advance credit risk management through improved credit scoring models, strengthen underwriting processes, and added field collection to ensure better collection.

Now, I would like to turn the presentation over our Director of Risk, Ibu Etty, to discuss our asset quality perspective. Thank you.

Thank you, Pak Achmad. I will read my notes to make sure that all concerns will be answered.

Moving into loan quality, our consolidated NPL increased by 30 bps year-on-year from 2.78% to 3.07%, driven by increasing Bank Only NPL by 35 bps from 2.94% to 3.29%. In the Bank Only, the increasing NPL was by design, as a result of soft landing strategy in micro, SME, and commercial segment.

The increase was partly offset by lower NPL ratio in corporate segment by 106 bps YoY. In the micro segment, NPL formation remains high as 2023 Kupedes batch matures.

Near-term NPL may remain elevated, as expected NPL formation for this year roughly 5% compared to 2025, 5% lower. I will explain later in the section of Kupedes 2023 as well.

However, we see slight optimism in 2026, as asset quality trends have improved sequentially in 2025, and our SML ratio has improved by 60 bps year-on-year to 5.6%, and 12 months rolling loan-at-risk formation has improved as well, roughly 20 basis points, from 1.9% in '24 to 1.7% in 2025. Next into the consumer segment, increasing NPL mainly driven by two factors.

One is mechanical. It is because of in the third quarter we implement the single debtor principle that raise the NPL Q-on-Q by 25 bps.

The secondly, on the year-on-year basis, we also done some soft landing in the mortgage product. We increase the NPL downgrades by roughly 60 bps to 3.9% NPL ratio by end of 2025, the downgrades mostly coming from developer non-Tier 1, especially in Jakarta, Bandung, Surabaya, and Jogja area.

These are the loans with average house price below 500 million. Hence, since the third quarter last year, we already reduced the number of eligible developer from above 2,300 names to around 1,300 names, and we still do on progress on reviewing these developers.

Secondly, we also lower mortgage approval limit for our Regional CEO from 25 billion to 15 billion. Three, we also implement new risk assessment criteria, such as minimum income threshold for certain products, as part of preparing mortgage product as one of our new engine of growth in 2026 going forward.

Next in the small medium segment, NPL increased by 60 bps or 1.7 trillion to 5.5%, driven by legacy pre-COVID disbursement, which account more than 30% of the NPL composition right now, especially coming from Region of Jakarta, Semarang, and Jogja. The NPL ratio in SME is still sticky above 5% level, although we already use around 11.7 trillion write-off budget to absorb the downgrades.

In commercial segment, as we prepare the segment to grow, we start to clean up the legacy loan, hence SML ratio improved from 1.9% to 1.2%, but NPL increased by 1.6 trillion from 2.5% to 4.3%. In our subsidiaries business, although seem as small improvement of 3 basis points, but actually our two biggest subsidiaries has shown significant improvement in loan quality.

First is Pegadaian, NPL improves by 25 bps year-on-year from 0.63% to 0.37%. PNM also improved by 60 bps from 2.3% to 1.7%.

LAR ratio also improved significantly in PNM, especially from 13.7% in '24 to 8.5% in 2025. Moving into next page, in terms of provisioning appetite, our loan provisions stood at 83.1 trillion, equivalent to loan loss reserve of 5.5%, much higher than pre-pandemic level of 4%.

In 2025, as our loan-at-risk ratio improved by 110 basis points from 10.7% to 9.6%, however, the composition of NPL portfolio to total loan at risk is increasing from 26% to 32%, hence we still maintain our coverage ratio of NPL above 170%, and coverage of LAR ratio to around LGD level, which is 55% to 60%. Regarding provisioning policy toward disaster-impacted area that happened in North and West Sumatra, we already allocated 327 billion as an overlay on top of provision generated by model.

The specific overlay increased bank-wide CoC around 3 basis points. Based on our assessment from the regional team, total portfolio impacted will be around 2.2 trillion, consisting around 1 trillion in KUR, 200 billion in Kupedes, and around 1.1 trillion in small segment, but we still do the mapping until end of March.

As of December, we already restructure around 440 billion, and most of the loan still in current collectibility. Moving into next page, regarding the CoC, with previous loan quality condition and provisioning appetite, our gross CoC stood at 3.35% in December 2025, up by 12 basis points year-on-year.

Due to lower insurance claim and weaker recovery in micro segment, our recovery income declined by 4.4 trillion from 25.4 trillion to 21 trillion. Therefore, as a result, net CoC increased by 55 bps to 1.9%.

Last year in the fourth quarter, we have set up dedicated group for retail collection, handling micro recovery for written-off portfolio, and moved also the responsibility to collect in the SML consumer collection from the business side to risk management side, which is under Retail Collection Group as well. As of December, we already recruit and train around 1,500 field collector dedicated for written-off recovery, and within two months, we were able to collect roughly 250 billion non-claim recovery.

In March 2026, this year, we plan to install new collection system as well, with mobile collection capabilities, to make us easier in tracking our field collector productivity, as well as monitor their operation. We understand that social issue may arise from these changes of new business model.

In 2026, we plan to upscale the capabilities in collection and recovery up to covering all the BRI unit portfolio of written-off loan, therefore we may recruit until 5,000 field collector. Last page regarding loan quality, we would like to explain about the progress in Kupedes 2023 bookings, as everyone is concerning about this.

The total booking of Kupedes at that time is 202 trillion, and as of December 2025, 153 trillion has fully repaid, while 13.4 trillion has been written off, hence remaining outstanding in the balance sheet is 35.4 trillion. Out of this portfolio, 14 trillion is under LAR category, 4.5 trillion within the LAR category is in NPL category, therefore remaining 21.4 trillion is under current category.

If we look at the average run-off in the fourth quarter last year, which is 2.6 trillion per month, and projected write-off around 6 trillion until maturity, we expect that the remaining outstanding will be maturing in 2026. The second riskier segment that I would like to explain is also about the Kupedes 2024 booking.

We booked at that time 126 trillion, and as of December '25, the remaining outstanding in our balance sheet is roughly 49.6 trillion. We already written off 1.6 trillion.

Of the remaining, 35.8 trillion is still under current category.

We expect that most of the portfolio will be maturing in two years, which is 2027, with projected written-off portfolio around 11.7 trillion, or another 10 trillion in two years. That's why I'm explaining before that in terms of NPL downgrades maybe in 2026 will be only slightly lower, but for LAR formation, we already see much better improvement.

In 2025, we have done several business process improvement in the fourth quarter, such as set up new RAC and pipeline model, limiting Kupedes Rakyat risk grid, limiting maximum top-up, and also setting the top-up criteria. We are seeing better performance from Kupedes in 2024 bookings, and further improve in 2025 bookings.

As mentioned here in the presentation on the right bottom side, average SML formation for 6-month on-book has shown improvement from 6.3% in 2023, lower into 5% in '24, and then further lower into 3.9% in '25. I think that's all from me.

Now, I would like to turn the presentation back to Siaga to organize Q&A. Okay.

No worries. Okay.

Hi, everyone. Before I summarize the presentations, I would like to touch a bit about the ESG.

We continue to operationalize ESG at scale, enhance government discipline aligned with IFRS standard, and ensure sustainability is embedded across process and decision-making. By 2030, our aspirations is to positions Rakyat as a sustainability leader in Southeast Asia.

To summarize our presentations this morning, this year reflects disciplined execution in normalizing cycle. We deliver sustained balance sheet growth, strengthen operating performance, and preserve profitability.

Our margins remain resilient, our funding base disciplined, and our capital position strong. As you might know, growth during this year was supported by tactical momentum in selected segments, particularly corporate and commercial.

However, our foundations remains unchanged. Rakyat continue to be anchor in MSME, especially micro, the segment that has defined our purpose and shaped our resilience across decades.

At the same time, as you can see in this slide, our aspirations to become one bank for all is not about shifting identity. It is about building capability across segment.

It is a deliberate strategic evolutions. It's not about changing who we are, it is about expanding what we are capable of.

By strengthening capabilities across all segment, particularly in retail funding and transaction banking, we are building a more stable, diversified, and efficient funding structure. A stronger funding franchise enhance our resilient, improve cost efficiency, and enable sustainable growth across every segment we serve.

Universal capability strengthen our core. It allow us actually to support micro customer ecosystem as they grow into small business.

Rakyat will grow together with Indonesia. We are not pursuing growth at any cost.

We are building durability, we are building capability, and we are building trust, because in the end, sustainable value creation is not about one strong year, it is about building an institutions that can thrive across cycle, generation, and transformations. We are building a stronger and more balanced BRI, one that can navigate cycles.

With a strong fundamentals, disciplined execution, and clear strategic direction, we remain confident in our ability to navigate change, capture opportunities, and deliver long-term value for our shareholders and for the nations. Thank you so much for your trust, your constructive feedback, and your patience, especially during more challenging period.

Your support strengthen our resolve to continuously improve and deliver sustainable value for all stakeholders. Now I would like to turn presentation back to Siaga to organize the Q&A session.

Melissa, thank you very much for the questions, ya. I think, Bu Vivien, you can respond the questions from Melissa?

Okay. Thank you very much, Melissa, for your questions.

As of now, we are still using the existing scheme for KUR insurance policy. Of course, there are many discussions on the premium rate and also the coverage of KUR.

About coverage, we are talking about the similar existing conditions, 70% covered, or probably could be limited 50% covered. For the premium rate, it is still using 1.75% for KUR Micro.

It could stay or could be increase up to 50 to 75 basis point, but still it is become our discussions with the credit insurance company. The second one is about the CoC.

The currently micro segment CoC remain elevated around 4.7% level, still above our pre-pandemic level. I think if we exclude the CoC of Kupedes 2023, our micro CoC as of December is 68 bps basis point lower.

When we are talking about CoC in the longer term, we are expecting somewhere around 2.5% until 2.7% around 2030 year of 2030, and assuming gradual improvement like Bu Etty mentioned previously, probably we will still consider in this year and next year probably still consider relatively flat net downgrade NPL, but after that, if net downgrade to NPL in micro, for example, consistently below 2%, we are expecting 2.5% until 2.7% in the longer run.

Thank you, Ibu Vivien. Now for the second question, I will invite one of the participants who raise his hand, Harsh Modi.

Could you please unmute yourself?

Hi. Thanks a lot.

[unclear] All right. Bu Vivien, silakan.

Okay. Thank you so much, Harsh, for your questions.

Yes, in the last one year, our saving account composition skew toward higher net worth. If the liquidity tightens in the next 12 months, this is basically saving account, Harsh, and we are able to achieve higher compositions in higher net worth not only about pricing.

Our saving account cost, or the cost of saving account, currently roughly around 30 to 50 basis point. We are able actually to gain more trust from our priority customers because in the last one year, we fixed a lot of business process and services to our high-net-worth customers.

To your point that if the liquidity tightens in the next 12 months, probably it will be more relevant if we are talking about time deposit customers, especially for the wholesale client. [unclear] in terms of tightening liquidity [unclear] Yeah.

Thank you so much, Harsh. In our saving account, the special price taking into account probably only 10% to 20% of the total saving.

It's really, really small, actually, Harsh. Okay.

Thanks. [unclear] corporate segment [unclear] over the next two years [unclear]

Yeah. Before goes to Pak Riko, ya, I would like to give you a color.

Basically, the lending portfolio structures within the bank, we cap the wholesale banking is maximum 20%. The rest composition is including micro, SME, and also the consumer.

Pak Riko, you can respond the questions.

Yeah. Thank you, Pak Hery, and thank you, Harsh, for the questions.

Let me give you some colors in the corporate portfolio going forward. What we are focusing is actually rebalancing with a higher quality of the corporate portfolio.

Which means also, we are actually looking for a corporate transaction, not only for lending, but we also make sure that we have the opportunity for cross-sell across the supply chain to the down below of the supply chain up to the UMKM. The other part that also very important to enhance the profitability of the corporate portfolio is actually for the transaction banking.

This year in 2025, we really focus in transforming our transaction banking with our digital platform, QLola, which actually increase quite significantly in terms of the active users and also the sales volume. This really connecting all the transaction banking with all the lending portfolio that we have to enhance the profitability of the portfolio.

Hopefully, that's answer your questions. Thank you.

[unclear] Yes, of course, Harsh. What we are focusing is of course there's a portfolio that is not make sense in terms of profitability.

We should be able to actually walk away basically, price out from the transaction. We also see that as a overall holistic opportunity.

For examples, if in the corporate side we see that we have, for example, a very or quite a thin margin, but we'll see the impact of the wholesale supply chains, right? We see how much we can actually drive the transaction from the supply chain of that corporate transaction.

For example, there are suppliers, the distributors, there are also the, let's say, in agribusiness, we also look at it up to the farmers ecosystem. We look at the holistic enterprise profitability for specific transaction.

That's how we decide whether we're going to enter the portfolio or not. Thank you, Harsh.

Bu Vivien, you want to add?

Just to add a little bit more color, Harsh, on the profitability of corporate segment, currently the return on asset of corporate segment 2.6% until 3%. The positive side of corporate segment actually they are bringing low-cost funding for Rakyat as well.

Therefore, the return on asset is quite close to the average of the bank-wide. Of course, if you compare with micro, it's below micro.

Responding to your questions, it's a very difficult questions actually to answer. Of course, as a part of SOE banks, we will not be able to straight say no for a certain loan that part of government program.

If you remember how we manage KUR, that's exactly the same thing we will do in a corporate segment. For example, KUR, we always negotiate every year to find a win-win solution for all parties, actually, including the credit insurance.

For KDMP, the cooperatives, the Agrinas thing, when the scheme switch into corporate loan, actually the RoA is better off rather than the cooperative disperse in the mass market. Thank you so much, Harsh.

Pak Royadi, maybe you add in term of the apa namanya, trajectory of the, apa tadi, RoA, ya?

Yeah. Thank you.

I just want to add, Harsh. Additional like Bu Vivien mentioned, basically the higher the segment, the other yield beside the total loan yield is higher, ya.

For example, corporate, maybe the interest rate, the loan yield only 7%, 8%, but if we combine with non-interest income like fee-based income, and then like Bu Vivien mentioned, the deposit, CASA coming from these corporate. Basically, if we talking about the total yield, it will add another 200 bps to 300 basis point.

For example, the loan yield 7%, the total yield coming from the CASA, transaction, fee income is relatively higher around 200 to 300 basis point. Basically, we have total yield 8% to 9%.

Thank you.

All right. Thank you, Pak Royadi.

We go to the next questions.

Okay.

Okay. Thank you, Pak, for the questions.

I will walk through one by one, and Pak Royadi probably can add later. The first one is about the loan growth guidance.

We guide you with 7% to 9% loan growth, assuming that micro on consolidated basis probably will grow 2% until 4%, while Pegadaian growth probably lower. 2025, they grew around 40%, and 2026, we are only assuming double-digit growth, while PNM actually is still same environment with Rakyat, low single digit.

Consumer as the new growth engine, we expect them to grow around 11% to 13%, while commercial and SME hopefully will grow around 10% to 15%, and corporate around 8% to 10%. For the net interest margin, we guide you with 7.4% until 7.8%.

There are several assumptions here. We are assuming that there will be improvement in cost of fund.

For example, we are assuming our cost of deposit will be roughly around 2.8% until 3% by the end of this year. We also taking into account, like we mentioned previously, if anything happens with the KUR premium coverage, we already also taking into account, so that's why you see the lower end of the NIM guidance around 7.4%.

For cost of credit guidance, 2.9% until 3.2%, we are taking several assumptions. Of course, the higher end we might meet the higher end if, for example, there will be a policy, especially in disaster area, that the KUR in disaster area should be written off, we have to add more provisions.

The lower end actually is something that we can expect if consistently, for example, the net downgrade in special mention and NPL in micro consistently below 2 trillion. Thank you.

Maybe Bu Etty, you would like give another color for the guidance for the cost of credit, because 2026, the guidance is lower than 2025, little bit lower, ya?

Right. Thank you, Pak Hery.

Thank you for guidance regarding to loan quality and CoC. For CoC 2026, we guide for roughly 10 basis points lower compared to 2025.

Largely, we expect that loan-at-risk ratio continue to be lower, while the NPL ratio perhaps roughly 10 to 20 bps lower as well, driven by better loan quality in the SME segment and consumer segment, as well as the commercial segment. While the corporate segment continue to grow the outstanding as well, therefore we also expect that ratio on the NPL also going to be improved.

While the micro segment, as I mentioned earlier, the downgrades pressure still there from Kupedes 2023 as well as 2024, we also allocate relatively similar write-off budget around 22 trillion for 2026. Hence, for the NPL ratio in 2026 for micro still going to be hovering around 3.9% to 4%.

Thank you.

Royadi, the CFO, you have the guidance, the policy?

Related the dividend payment, ya. In general, with our total CAR currently 23%, 24%, and our RoE is 17%, 18%, actually we can pay dividend infinite around 50 basis point, 50% dividend payout.

Again, because of our CAR is still 23.7%, way higher than our minimum requirement, going forward, we can still maintain our dividend payout at least similar than last year, ya, around 80%, 85%, 80%, 90%. Again, we still waiting for the decision from our majority shareholders.

Pak Dipo, ada yang mau disampaikan? Pak Riko, enough?

I think thank you very much, ya, for analyst and also friends maybe around the world dial in with us, ya, this morning. Thank you very much for your support for BRI.

Hopefully, even though the 2026 is not easy, quite challenging, ya, we know the macroeconomic, global policy, something like trade war, tension in politic, and also, etc., I think we still optimist. Might be 2026 is better than 2025.

Again, thank you very much. Hope to see you next three months, right?

Next two months. Okay.

All right. Back to Siaga.