...our Board of Directors who are with us today: our Group CEO, Pak Hery Gunardi;

Hi. Good morning, everyone.

Our Deputy Group CEO, Ibu Viviana; our CFO, Pak Royadi; our Director of Micro, Pak Akhmad Purwakajaya;

Morning.

Our Director of Risk Management, Ibu Etty;

Morning.

Our Director of Commercial Banking, Pak Riko Tasmaya.

Morning.

Before we move into the presentation, just a couple of quick housekeeping points. First, we encourage you to download the presentation materials available on our IR website or through the link shared earlier this morning.

Second, during the Q&A session, please raise your hand, and we will invite you to unmute yourself and ask your question. With that, I will now hand over to Pak Hery Gunardi, our Group CEO, to begin the presentation.

Pak, the floor is yours.

Thank you, Siaga. Good morning, everyone, and thank you for joining us.

Before we discussing our result, let me briefly touch on the macroeconomic environment, recent policy responses, and also how BRI is navigating this development. Actually, we are operating in a more volatile global environment with higher oil price, a stronger US dollar, and elevated uncertainty putting pressures on emerging market.

Despite this, Indonesia remain relatively better position supported by its commodity export base and solid external buffer, including a sustained trade surplus and also FX reserve. Policy responses also remain well calibrated, with Bank Indonesia maintaining stability and the government preserving fiscal discipline and focus on the supporting lower economies.

In this environment, BRI remain focused on discipline, quality-driven growth. We are prioritizing resilient segment, improving funding mix through CASA and ecosystem-led value chains, and continuing to improve our loan quality through better underwriting, business process, and also human capital management.

This positions us well to navigate volatility while sustaining asset quality and delivering long-term growth. Let us now look at how this dynamic have translated into banking sector's performance and how BRI is positioned within it.

Indonesia's banking sector remain resilient, with loan growth at 9.4% year-on-year as of February 2026, reflecting steady credit demand and amid a more uncertain macro environment. Liquidity condition remain sound, supported by solid deposit growth, keeping LDR in the mid-80% range, indicating balanced funding across the system.

Profitability remains stable, with net interest margin at 4.5%, while asset quality stay manageable, with LAR around 9%, reflecting contained credit risk. Capital buffer remaining strong, with Capital Adequacy Ratio at 25%, providing ample capacity to absorb risk and supported continue credit growth.

Compared to the industry, BRI recorded relatively stronger loan growth and structurally higher NIM, supported by solid capital level, while asset quality is still normalizing, risk indicators continue to improve and remain well managed. Ladies and gentlemen, as part of our transformation initiative, named BRIVOLUTION REIGNITE initiated in 2025, we continue to build our execution momentum, with a clear improvement in both funding quality and asset quality coming through in the first quarter 2026.

On funding side, CASA transaction is improving, driven by higher transaction volume in BRImo, our mobile app, as it evolve into the primary mobile app for our customers. This is supported by expanded feature, including mutual fund, cross-border payment, and also the gold investment, alongside improvement in service quality, turnaround time, security, and also reliability.

At the same time, we are introducing One BRI Solution. This is a cross-segment integration to the optimize value chains to capture end-to-end customer value across the ecosystem and deepen relationship across all client base.

On asset quality, we are focused on improving three key area: human capital, business processes, and also risk management. This include revamping incentive structures, remodeling role to improve focus, and leveraging digitalization to enable more granular risk criteria and pre-screen pipelines, allowing loan officers to operate more effectively while improving underwriting quality.

The next one is the digital channel. We talk about the BRImo, business merchant, QRIS, and also the Qlola, are increasingly driven retail CASA growth, supported by higher user engagement and transaction activity.

For BRImo, the numbers of users grew by 18.6% year-on-year to 47.8 million, with the penetration reaching 58.2%, reflecting expansion in both BRImo users and also the overall customer base. More importantly, monthly active user increased from 18.6%—18.6 million to 21.9 million, increase 17.8% year-on-year.

This is indicating stronger engagement. For financial transaction, also increase by 32% year-on-year, and transaction value also grew by 29.5% year-on-year.

Let's talk about the business merchant and also the QRIS. The number of productive merchant rose 10.9% year-on-year, while sales volume per merchant grew 34.6% year-on-year, supported by our merchant engagement initiative that strengthen usability, trust, and also the transaction adoption.

Our QRIS sales volume also increased by 78% year-on-year, and the numbers of transaction grew by 86%—86.7% year-on-year. The next is Qlola.

Qlola is our transaction platform for corporate cash management, delivered strong performance in quarter one 2026, with active user rising 52.9%, and sales volume also increased 53.5% year-on-year. This underscore growing customer trust in the platform to manage their financial need.

With that, we can conclude that our transaction banking initiatives have helped drive higher money circulation within BRI ecosystem, driving CASA and lowering funding cost, supporting a more efficient funding structure. On the other side, our asset quality initiatives are delivering clear result, particularly in the micro segment.

Net downgrade to NPL has peaked and is now trending down from 6.57% in quarter one last year to 4.8% in this quarter, quarter one 2026, indicating early stabilization while still above the pre-pandemic level, but the trajectory is clearly improving. At the same time, new loan quality is improving meaningfully.

Recent micro loan vintage, especially Kupedes, are performing better, with lower SML formation across cohort compared to the prior year. This improvement are driven by three key area and transformation.

Number one is on business process optimization. We have a strengthened frontline discipline through mandatory on-site credit assessment, and expanded operational capacity by adding more than 3,000 operational supervisor across micro unit, improving control and allowing unit head to focus more on underwriting quality and customer assessment.

The second one is risk acceptance criteria. We have refined rule-based and also the system-based control, we enhanced credit scoring, and we also strengthen the pipeline monitoring to ensure more selective customers intake and an earlier risk visibility.

The third one is on the collection and recovery. We are refining execution through a more focused operating model and expanded field capacity.

The recovery function is now split into wholesale and retail segment to ensure clearer accountability and more targeted oversight. We have deployed around 2,600 field collection, and plan to scale up to 5,500, supported by a new collection system and more disciplined field execution, driving better recoveries, improved cure rates, and also tighter control of the new NPL formations.

Also, moving forward, we are diversify our income stream by expanding our consumer banking franchise through the following initiative: re-driving selective payroll growth by leveraging high-quality lead from corporate and also commercial client, while increasingly payroll balance to support better asset quality and attract low-cost funding. This ecosystem also fit into cross-sell opportunities across mortgages, loans with selective tier-1 developer, auto loan, and also the wealth management, supported by more competitive and tailored product suite for affluence customer.

The second one is scaling the gold ecosystem through Pegadaian by capitalizing on the increasing gold prices, and also expanding bullion services across both retail and also ecosystem channel. This include leveraging the BRI Group network and digital platforms such as BRImo to broaden customer access and drive integrated and also ecosystem-based growth.

The last one is the commercial and corporates. We are prioritizing transaction banking-led relationship, focusing on resilient, structurally expanding sectors, and also deepening penetration across supplier, distributor, employee ecosystem through payroll, supply chain financing, and also the cash solution to drive higher quality CASA, recurring fee income, and also more sustainable portfolio growth.

This initiative are starting to deliver result, as reflected in the growth in our second engine, consumer and also the gold-based lending and saving. For consumer business, consumer loan grew at 9.5% year-on-year, driven by payroll loan, and also up to 9.4% year-on-year, and the mortgages that increase at 11.1% year-on-year, with growth focus on the higher quality borrower, higher balance, private payroll customers, and selective tier-1 developer exposure.

Auto loan rose 275.6% year-on-year off a low base. Growth is being directed towards stronger segment within the BRI Group ecosystem through integrated underwriting and dealer collaboration.

Fund under management also increased 9.8% year-on-year, supported by deeper cross-segment relationship. Fee income will be further optimized through expanded investment offering, stronger wealth management execution, and improved cross-referral across segment.

For the gold-based business, gold installment loan up 268.9%, targeting high net worth individual customers, and gold saving up 66% year-on-year, with active customers increasing 62.8% year-on-year, supported by expanded sales channel, B2B transaction, and also the cross-selling to BRI Group customers through BRI extensive distribution network. Through the discipline and consistent execution for our strategic priorities, including the BRIVOLUTION REIGNITE, the progress is increasingly reflected in a strong performance trajectory as of March 2026.

Growth remain well-balanced, with loan growth at 13.7% year-on-year, drive by our new engine. In the current condition, we are deliberately calibrating micro growth, with a clear focus on resolving legacy issues and also improving asset quality.

This approach is aimed at strengthening the foundation of the portfolio, positioning the micro segment to re-accelerate as conditions normalize. At the same time, we are improving our funding mix, with CASA growing 13.2% year-on-year, which is structurally lowering our cost of fund and supporting margin resilient going forward.

This is clearly reflected our earning performance, with the PPOP reaching 33.2 trillion rupiah, up to 7.7% year-on-year, and net interest income growing at 11.9% year-on-year, supported by stable yield and improved funding quality. As a result, net profit increased at 13.8% year-on-year, marking a recovery from last year.

Importantly, this demonstrate that even as we recalibrate growth and strengthen asset quality, our core earning remain resilient and our profitability trajectory remain intact. At the same time, key metric continue to track as expected as we move through the asset quality normalization phase, with early improvement in LAR and also SML as of March 2026, reflecting better underlying portfolio quality, supported by strong core earning and also funding momentum.

NIM came at 7.9%, above the guidance, yeah, supported by 65 basis point year-on-year decline in cost of fund, driven by improvement in the funding structure. Asset quality continue to improve, with LAR declining to 9.7% and coverage maintaining at 55.8%, reflecting lower new inflow and better-performing newer vintages due to more proactive risk and collection execution.

Cost of credit stood at 3.2%, in line with our guidance, with overlay maintained to buffer legacy exposure. This is ultimately reflected in our profitability, with return on asset up to 12 basis point year-on-year, and also the ROE up 128 basis point year-on-year, supported by stronger core earning and improving asset quality.

Importantly, net profit returned to grow up 13.8% year-on-year, compared to a decline last year. Overall, performance remain firmly within the guidance, reflecting consistent execution, and continue progress is sustaining profitability and balanced growth.

With that, I would like to hand over to Pak Royadi—because we have two Achmad here, we call Roy, our CFO, to walk you through our financial performance in more detail, Pak. Please.

Thank you, Pak Hery. Now we discuss our financial performance, starting with the balance sheet.

Year-on-year, our total asset growth was 7.2%, supported by loan growth of 13.7%. At consolidated level, the contribution from Pegadaian and PNM reached 12.9% of total loans, increased from 10.6% a year ago, supporting overall loan growth, particularly in the micro segment.

Loan and financing provision grew 3.1%, as we maintained provision level while also utilizing reserve built during the pandemic to absorb bad debt write-offs, as we maintained overlay since 2024 as an additional buffer. Provision level remained elevated at 5.4% of total loans, compared to around 4.1% pre-pandemic.

On the funding side, deposit grew 9.4%, in line with industry, supported by strong 13.2% increasing in CASA. Government bond and marketable securities increased 15% year-on-year, reflecting active liquidity management amid relatively stable interest rate environment, as well as optimization of excess liquidity into yield-bearing assets.

Lastly, equity increased 12.8%, driven by strong net income growth, further strengthening our capital position and capacity to support future growth. Now we move to next slide.

On the funding side, we continue to see gradual improvement in the funding mix, which remain one of our key strategic priorities. Total deposit grew 9.4% in first quarter 2026, supported by strong CASA growth of 13.2%, bringing the CASA ratio to 68% or increase 230 basis points year-on-year.

On the quarterly basis, CASA still increased 2.2%, driven by 3.1% growth in saving, indicated that our funding initiative remain on track. Liquidity condition in the first quarter were also more supportive compared to prior periods, reflecting improved system liquidity dynamic.

Breaking down CASA, non-wholesale CASA grew 11.7% year-on-year, mainly driven by saving growth, supported by stronger retail engagement and transaksi activities. Wholesale CASA increased even higher, 16.4% year-on-year, driven by a 17% rise in current account, primarily from corporate operating balances.

From a cost perspective, starting from an exit cost of fund of around 2.3% end of 2025, we are now seeing greater stability with reduced seasonality. Compared to the prior years, where first quarter usually face upward pressure.

Importantly, the share of special rate deposit across both current account and time deposit has declined year-on-year, supported improved funding cost efficiency going forward. On the saving, our customer mix remain well aligned with system liquidity dynamics, where balances are increasingly concentrated in the upper tier segment.

In general, we believe our strategy can capture growth where liquidity is strongest. Total saving grew 11.5% year-on-year in the first quarter 2026, primarily driven by the affluent segment, which expanded 48.8% year-on-year, significantly outperforming other tiers.

This is consistent with the macro trend, where economic growth remain skewed toward high income segment. Within this segment, the strongest growth came from balance above 5 billion rupiah, which increased 142.8%, reflecting improved wallet share and deeper penetration in high-value customer.

This is driven by our retail funding transformation, including capturing affluent customer from our commercial and corporate segments, enhancing our wealth management offering, and leveraging our branch networks to scale acquisition. In addition, we are seeing improving funding retention trend, with monthly average balance in first quarter 2026 surpassing prior year-end level earlier in the year, indicating stronger deposit stability and increasingly sticky customer behavior.

Next slide. From a loan mix perspective, micro remains the largest contributor, accounting for 45.2% of total loans.

Please note that starting in 2026, we reclassified small KUR and housing KUR into the micro segment, which affect comparable. We already adjust first quarter 2025 number also, ya.

However, on the normalized basis, the micro portfolio still grew sequentially on the Q-on-Q basis, supported by KUR and Pegadaian. This is followed by corporate at 22.5%, consumer 14.8%, SME at 13.2%, and commercial 4.2%.

In term of growth dynamic, micro lending remain soft, with Kupedes still contracting 17.1% year-on-year, reflecting ongoing portfolio consolidation and continued focus on asset quality and recoveries. Meanwhile, corporate, commercial, and gold pawning segment were the key growth driver, bringing total loan growth to 13.7% year-on-year.

As we continue to strengthen our capabilities across segment, we reiterate our commitment to maintaining leadership in micro business in Indonesia. We are currently refining the micro business model to ensure it remains fit for the future going forward, with our top priority on resolving asset quality, where early sign of improvement are already visible.

Despite shift in portfolio mix, margin pressure remained well contained, with loan yield stable at around 12.2%. This is supported by higher contribution from Pegadaian and PNM, with their share within the micro segment and total consolidated loans continuing to increase, reinforcing overall yield resilience.

Next slide. As highlighted earlier, our focus strengthening funding quality, improving deposit composition, and maintaining disciplined lending continues to translate into margin resilience.

Our consolidated NIM reached 7.9%, it is higher than our guidance 7.4%-7.8% in March 2026, remaining resilient despite asset quality pressure and portfolio mix shift. This was supported by disciplined cost of fund management and strong subsidiary performance, particularly Pegadaian that grew very high, 61.6% year-on-year.

While loan yield softened on year-on-year basis due to portfolio rebalancing, this was well offset by continued improvement in funding mix. As a result, cost of fund remained stable at around 2.3%, in line with the December 2025 exit cost of fund level, supporting overall margin stability.

Our LDR stood at 87%, a bit increase compared to last year, 86%, reflecting deliberating balance sheet optimization. Loan as proportion of total earning asset increased year-on-year from 70.9% to 74.3%, while liquidity remained prudently managed within our target range, supported by stable and granular CASA flow.

Slide. As of March 2026, net interest income grew strongly by 11.9%, driven primarily by solid loan growth, even as lending yield softened.

This reflected our strategic shift to diversify growth in other segment, while micro growth remained moderate due to asset quality focus. While non-micro segment carry relatively lower yield, they support value chain expansion, fee-based income, and CASA generator, contributing to overall balance sheet quality.

As a result, interest expense declined 9.3% year-on-year, with the cost of fund remained stable at around 2.3%. Net interest income was further support by stronger yield contribution from PNM, and especially Pegadaian, whose share within the micro segment continues to increase, helping keep overall loan yield stable at above 12%.

Meanwhile, non-interest income grew 2.4% year-on-year, supported by fee income, strong gold-related revenue, and treasury gains. On the recovery side, recovery income declined 13%.

This is mainly due to timing and ongoing improvement in claim process integration with insurance partners. Actually, end of March it is already fixed, going forward we expect will be stable in term of the recovery income from the claim.

However, collateral-based recoveries improved year-on-year, supported by strong field collection effort implementation since third quarter 2025, like discussed by Pak Hery before. Operating expenses grew 11.1% year-on-year, resulting CIR at 40.8% or still within our target range, while PPOP increased quite good, 7.7% year-on-year.

Overall, net income returned to positive growth at 13.8% year-on-year, after last year is minus around 5%, supported by improving fundamentals, particularly from more stable funding cost and better-managed credit cost. Non-interest income increased, supported by fee income, treasury transaction, and net gold sales amid high gold prices, like discussed before.

Pegadaian continue to strengthen its ecosystem and leverage BRImo for distribution, driving net gold fee income to 1.5 trillion rupiah. Loan recovery declined due to lower recovery claims, with recovery rate expected to normalize to around 50% by the end of 2026.

Operating expenses rose 11%, slightly above target, mainly driven by higher subsidiary expenses, especially Pegadaian. Actually, this is reflecting increase in net sales that lead to higher sales incentive for marketing.

I think this compensate by the higher revenue from Pegadaian. Despite this, Pegadaian CIR improved to 43.8%, down 43% year-on-year, indicating better operating efficiency.

For 2026, we target non-OPEX to asset ratio of 3% to 4% and CIR of 41% to 43%, with productivity gains and ecosystem cross-selling expected to keep costs manageable and support sustainability growth. In the capital, our capital remains robust, with our total CAR is 22.9% and Tier 1 is CAR of 21.8%.

This is above minimum regulation for BRI as the systemic bank is 14.7%. Over the medium term, we aim to gradually optimize our capital structure by maintaining total CAR around 20%, supported by stronger loan growth and continue higher than normal dividend distribution to shareholders.

For full year 2025, our dividend payout was 92%, already paid in 2026. Then for full year 2026, we expect to maintain similar dividend payment schedule as in the previous years and at least the same dividend per share like in the full year 2025.

With that, I would like to return presentation to our Director of Micro, Pak Akhmad Purwakajaya, to share more on ultra micro and micro business segment. Pak Akhmad, please.

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

Consolidated micro outstanding reached 705 trillion rupiah in first quarter 2026, growing 5.3% year-on-year, primarily driven by high double-digit growth from Pegadaian. The contribution of Pegadaian to total loan consolidated now is at 9.6%, up from 6.77% in the first quarter last year, or increased by 2.8% year-on-year.

The contribution of PNM to total loan in first quarter 2026 is 3.3%, down by 47 basis points year-on-year, in line with the negative growth year-on-year due to our selective growth on PNM. Pegadaian, on the other hand, remained a strong growth driver, increasing 61.6% year-on-year, driven by high gold prices.

Beyond price tailwinds, Pegadaian continues to deepen its structural growth initiatives, including its bullion bank capabilities, B2B expansion, and ongoing digitalization efforts, all of which are strengthening its long-term franchise within the BRI Group ecosystem. On the cost of credit, Pegadaian perform year-on-year increases in first quarter 2026.

This reflects our proactive and conservative stance in anticipating potential normalization in gold prices, despite already maintaining prudent loan-to-value levels at Pegadaian. For 2026, we expect Pegadaian to maintain steady growth as gold prices remain structurally supported.

For BRI micro and PNM, while we initially anticipated a gradual return to positive growth, we are currently taking a more cautious stance amid intensified geopolitical situation. We will closely monitor macro developments before accelerating growth, maintaining our focus on asset quality through disciplined underwriting and business process improvements.

Micro loan stood at 503 trillion rupiah in first quarter 2026, or declining 4.2% year-on-year, as we remain deliberately focused on asset quality improvement while pursuing selective growth. Besides, our selective growth strategy is being implemented through optimizing data-driven customer pipeline screening, applied to both existing-to-bank and new-to-bank borrowers.

At the same time, we continue to optimize the span of control in micro segment at the loan officers level. Borrowers per loan officer stood at 456 in first quarter 2025, and loan outstanding per loan officer at 18.4 billion rupiah, as we continue to right-size portfolio management to ensure each officer can actively monitor and maintain the quality of their portfolio accounts.

Across products, KUR posted positive growth at 4.3% year-on-year, while Briguna micro remained broadly stable at 0.2% year-on-year, driven by implementation of pre-wash pipeline approach alongside strengthened partnership with ASABRI and private companies, and the deployment of dedicated loan officers for Briguna micro since July 2025. Kupedes continues to decline as we work through legacy asset quality issues from 2023 and 2024 batches, although we are seeing early signs of stabilization.

Looking ahead, BRI, especially micro segment, remains focused on three key areas to strengthen our micro foundation. First area is on human capital by strengthening organizational capabilities through extensive re-skilling and re-training programs, redesigned recruitment and career journey, and remodeling of micro loan officers' roles to improve productivity and credit discipline.

Second focus is on business process by enhancing credit culture and operational discipline while optimizing daily workflows to improve efficiency and controls. The third focus is on risk management by advancing credit risk management through improved credit scoring models, strengthened underwriting processes, and added field collection to ensure better collection.

Now I would like to turn presentation to our Director of Risk, Bu Etty, to discuss our asset quality. Thank you.

Thank you, Pak Ahmad Purwakajaya. Moving into loan quality, our consolidated NPL quite flattish year-on-year, but slightly improved Q-on-Q.

For analysts that already cover BBRI more than three years, this is new trend, right? Usually the uptick in Q-on-Q is higher than year-on-year.

Both year-on-year and Q-on-Q improvements are primarily driven by better loan quality profile in our subsidiaries, PNM and Pegadaian. PNM NPL went down 40 bps, and Pegadaian went down 80 bps, respectively.

In the bank only, NPL increased by 16 bps, but SML lowered by almost 100 bps year-on-year, while there is varies in each segment. In the micro segment, SML ratio lowered by almost 100 bps year-on-year, but there's slight uptick by 18 bps Q-on-Q.

If we compare the trend with first quarter last year, the quarterly seasonality has improved from a quarter-on-quarter uptick of 54 bps last year. Similar to the SML trend, the NPL Q-on-Q seasonality also shows improvement in delta NPL of 35 bps in first quarter 2026, compared to 52 bps in first quarter 2025.

If we look at nominal downgrades, the first quarter 2026 average NPL formation was 2 trillion per month, or 28% less than first quarter last year, with a monthly average of 2.8 trillion. Hence, to reach 4.15% NPL ratio in micro, we actually use less write-off, or 4.4 trillion, compared to last year of 6.1 trillion.

In the SME segment, SML ratio improved by 35 bps year-on-year, while Q-on-Q still increased by 76 bps. However, if we compare it with first quarter last year, it's already improved from more than 100 bps.

For the NPL trend, if we compare the seasonality in the last year as well, the condition also improved in general. Quarter-on-quarter uptick has lowered from 22 bps in first quarter last year to only 2 bps in first quarter this year.

If we compare nominal NPL formation last year to this year in the first quarter, the number also has lowered by 10%, from average 1 trillion per month to 900 billion per month. During first quarter 2026, we used roughly 2.5 trillion write-off budget, relatively similar with last year.

In the consumer segment, however, we experienced increasing NPL on year-on-year basis. This is mainly driven by two factors: the first is impact of implementation of the single debtor principles since third quarter last year, where credit card exposure now consolidated with other consumer product.

Secondly, we also experienced increasing NPL in the mortgage segment, which is NPL rising 40 bps to 3.9%. This was largely attributable to exposure from non-tier-1 developer, particularly in area of Jakarta, Surabaya, and Yogyakarta.

The average ticket size for the housing is roughly below 1 billion. Things that we have improved in consumer segment since second semester last year are more stringent RAC, for example, in income limit, and evaluation of non-tier-1 developer.

Now we only allow 531 developers from previously above 1,000 developers, and we also have dedicated swimlane pre-approved pipeline from high-net-worth individual customers, as well as referral from corporate and commercial borrowers. In terms of evaluating the risk management implementation for this consumer segment, hopefully we can start to see improvement maybe next two years, because the average maturity of the loan is around 11 to 12 years.

We try to push lower NPL downgrade by optimizing the collection team that we have. In the commercial segment, as we position the portfolio for future growth, we are proactively cleaning up legacy exposure.

As a result, the SML ratio improved from 2.7% to 1.7%, while NPL increased from 2.5% to 3.9%. This is primarily driven by loans originated in 2023 and earlier.

Next, as our main asset quality problem still lies in micro segment, we'd like to update the progress of Kupedes 2023 and 2024 bookings. As seen on the slide, the 2025 disbursement vintage is showing better performance compared to both 2023 and 2024 batches, as reflected in improving Kupedes vintage in 6-month on book.

This gives us confidence that our better underwriting and pipeline screening efforts are translating into higher quality in the new bookings. On 2023 Kupedes, the remaining outstanding as of first quarter is now stood at 28.6 trillion, from original disbursement of 201.6 trillion.

We expect that 2/3 of the 28 trillion will be maturing and resolved this year, as they are non-classified loan. For the 2024 batch, out of 126 trillion disbursement, the remaining outstanding is 42.9 trillion.

Given the smaller disbursement size and higher proportion already paid off, we expect that in the maybe first half next year, the portfolio will be largely resolved as well. That said, with 2025 vintage showing clear improvement and the older batches continuing to wind down, we hope to remain on track for gradual and sustained improvement in Kupedes asset quality until 2026.

Next page, regarding NPL coverage, reflecting prior loan quality condition, our LAR ratio improved roughly 150 bps, reaching 9.7%, while composition of NPL portfolio to total LAR actually increased from 26% to 32%. That's why we still maintain our NPL coverage ratio above 170%, as well as our LAR coverage ratio in line with our early level of 55%.

As a result, our loan provision still stood at 84 trillion, equivalent to loan loss reserve around 5.4%, or much higher than pre-pandemic level around 4.1%. Regarding provisioning policy toward disaster-impacted area like North and West Sumatra, we already allocated 667 billion, an increase from what we already allocate in December, or last quarter, of 327 billion as an overlay on top of provision generated by model.

This specific overlay increasing West CoC by roughly 5 bps. Lastly, maybe I will touch upon some of the stress tests related to rising geopolitical tension in the Middle East and increasing oil price as well as volatility.

We remain vigilant in assessing potential macroeconomic spillover risk. Rising oil price and prolonged geopolitical tension could lead to higher inflation, tighter monetary policy, and slower growth, especially in the second semester.

Our stress tests indicate that sustained oil price above $100 to $133 may pressure GDP, increase rates, and impact asset quality. In response, we have prepared mitigation measures, including selective loan growth, centralized restructuring and intensified restructuring, and as well as increasing NPL coverage or maybe provisioning level.

Under this scenario, net NPL may rise from 1.7% to 2% to 3% level, and CoC gross may be increased around 35 to 75 bps. Lastly, on the last page of the loan quality section, we'd like to show that our CoC ratio has been improved.

It's lower quarter-on-quarter basis 15 basis points and year-on-year basis 33 basis points, to maintain NPL and LAR coverage ratio in line with our appetite, like I mentioned before. Out of 12.4 trillion CoC we booked in March, majority are used for cleaning up NPL or written off.

We decided to use 11.2 trillion, or roughly 25% of the annual rate of budget. Most of the write-offs still for micro segment, 4.4 trillion, which is actually down 28% year-on-year.

Secondly, in SME segment, roughly 2.5 trillion, with flattish year-on-year trend. To manage CoC, we also decided to write off one of the customers in corporate segment, roughly 1.5 trillion, which we already allocate 100% provision last year.

While the total recovery income in the first quarter reached 4.3 trillion, or 20% of our annual target around 20 to 21 trillion, part of the decline was due to lower insurance claim from KUR and Kupedes, roughly 2.4 trillion in the first quarter 2025, lowered to 1.7 trillion in first quarter 2026. We actually expect that some of the claim income will be lower compared to last year, hence we need to catch up the difference sourcing from the non-claim effort.

One of our strategy to boost non-claim recovery income is by recruiting more field collection officers in micro. Currently, we employed roughly 2,600 field collection officers.

Far, we see improvement in productivity. As of December 2025, around 1,600 officers already generate more than 100 million income per month, and in the first quarter, we were able to generate roughly monthly income above 300 billion.

If we can finish the recruitment of 5,000 to 5,500 officers in May, then we can target average of monthly recovery income around 500 to 600 billion for the second semester this year. I think that concludes my presentation.

Now I would like to hand over presentation to Ibu Vivi, who will walk you through the ESG initiative and the key takeaways. Thank you.

Thank you, Bu Etty. To give us more time for the Q&A session, I might be skip some slides.

If you see the next slide about ESG, we are committed actually to improve our sustainable financing. We also reinforce the consumer financial protections practices, along with improving the compositions of women representations within BRI.

Before we conclude, allow me to briefly reflect on our performance against guidance. In the first quarter, we delivered a balanced performance, with margin and efficiency tracking well, while credit cost remains well managed within guidance.

Loan growth came in above our initial range, primarily driven by corporate and commercial segment. Excluding the specific one-off factors, underlying growth remain more aligned with our expected trajectory.

Margin were at the upper end of our guidance, supported by stable funding environment and continue improvement in a funding mix. At the same time, credit cost remain within guidance, with early sign of stabilization in asset quality, although we continue to take a prudent stance, particularly in a micro segment.

Efficiency also improved further, reflecting continued cost discipline and operating leverage. Overall, while performance is tracking well in several areas, our approach remains unchanged.

We continue to prioritize quality, discipline, and sustainability over short-term accelerations. At this stage, we are maintaining our full-year guidance, while continuing to closely monitor developments going forward, especially from external factors.

Let me now highlight the three key takeaways. First, we are seeing continue improvement in asset quality, supported by tighter underwriting, stronger portfolio discipline, and better-performing new vintages.

Second, we are reinforcing our funding strength by accelerating retail funding, enabling a more stable and efficient funding structure over time. Third, we continue to deliver consistent performance, supported by resilient margin, disciplined cost and risk management, and also strong capital positions.

These remain our core priorities going forward. We are building multiple growth engine across segment, as while remaining anchor in our core micro franchise.

We are fully aware that the environment remains challenging, and we approach this with a strong sense of responsibility and discipline. We appreciate your continued trust, especially as we navigate through this period together.

Thank you so much. Now I would like to turn the presentation back to Siaga to organize the Q&A segment.

Thank you, Ibu Vivi. I will now move to the Q&A session.

I will start with one question submitted before the call, and then we will wait for any participant to raise their hand, and I will then ask them to unmute. The first question would be from Andrey Wijaya from RHB.

There are three questions. The first question is regarding the NIM and funding dynamics: with liquidity improving but asset yields still under pressure, how does management see NIM trending through 2026?

Second question: asset quality and CoC outlook—given the recent normalization in credit cost, what is the sustainable CoC range for 2026? Lastly, regarding loan growth and segment strategy: as loan growth moderates, which segments are expected to drive growth in 2026, and how is BBRI positioning to sustain growth while preserving margins and asset quality?

Pak Hery, I invite you to answer the question.

All right. Thank you, Siaga.

Thank you, Andrey Wijaya, for the question. Let me respond, and then we're adding by maybe some of the Board of Directors.

We expect net interest margin to remain stable, as decline in loan yield due to the changes in loan mix is being offset by improvement in cost of fund, ya. As mentioned through the presentation, we actually very extensive how to creating the strategy to improve the CASA ratio, and also might be able to mobilize more low-cost funding.

However, considering global macro and geopolitical condition, we conservatively believe that cost of fund maybe flat, maybe increase due to pressures in rupiah, which limit potential rate cut or even increase rate due to inflationary pressures, potentially cost of fund pressures from the basis of our lower range guidance. In term of asset quality and cost of credit outlook, I think, Bu Etty, you can respond this question, the second question.

Thank you, Pak Dirut. I think to respond the asset quality and CoC outlook, actually we expect gradual improvement, especially in the micro and SME segment, as we explained earlier.

Regarding the guidance and outlook for 2026, we actually still keep the current guidance, which is 2.9% to 3.2%. Hopefully if there is nothing big difference or impact in the Middle East conflict in the second semester, I think we still able to keep our guidance in the range of 2.9% to 3.2%.

All right. The third question is loan growth and segment strategy.

Maybe Pak Riko, you would like to respond this question?

Thank you, Pak Hery. Thank you, Andrey, for the questions.

For the loan growth, especially on the corporate side, we continue to focus on the selected sectors that provide the growth of the loans. We currently have a robust term planning to see and match between the challenges that we see from the market and also from the economy.

This is something that we are being focusing, especially we connect our function as a catalyst from the corporate to see how we can support the growth, the supply chain to the commercial size and up to the micro size. We believe this is something that we continue to grow.

Despite that, in terms of the overall asset side, we maintain our focus on asset quality in the micro to drive a higher and also more sustainable growth, to continue to prepare the segment to become the new engine growth, notably consumer segment as a tactical growth in commercial and corporate segment. We believe this is the focus that we have been doing, and we will continue to focus that going forward.

Thank you.

All right. Thank you, Pak Riko.

Back to Siaga.

Thank you, Pak Hery. Then I will read one of the questions submitted in the chat box.

It's from Harsh Modi. There are two questions.

The first is the risk weight and ECL provisioning on Agrinas loans and the repayment assumption. Second one is the bank's ability to manage cost of fund if and when the Ministry of Finance withdraws the deposits.

Pak Hery, please.

There are two questions, ya, from Modi. I think the first question, Bu Vivi can respond the questions.

Thank you, Pak Dirut. Hi, Harsh.

Thank you for your questions. The first one is on the risk-weighting and ECL.

Since Agrinas is a corporate loan, for risk-weighted asset, it's similar with the other corporate loan, especially for SOEs, like 50%. For the ECL, I think it's around like 70 to 90 basis point.

It's also similar with other corporate loans in performing loans. Regarding to your second questions, if part of the loans get delayed, whether we want to actually restructure, first, Harsh, this is not an individual decisions, because this is a syndication loan.

We will together and we have to agree with other banks, Mandiri, BNI, BSI, on how we have to manage about the Agrinas. We believe that going forward, considering the impact of Agrinas loan to the SOE banks, we believe we will have room, Harsh, with the regulators, with the governments, and also other Himbara to discuss about the loan ahead before September 2026.

Because the first payment schedule is September 2026, we believe before that, we have a room basically to sit down together to discuss whether we can change the scheme or anything else that basically we have to do it together with other banks in Himbara who also disbursed loan to Agrinas.

And— What else?

Second one. The second one actually is on the MOF deposits.

I think if we are seeing the SAL funding withdrawal, they already withdraw actually some of the SAL placement. If government withdraw the rest of it, around like 44 trillion, we already taking into account into our assumptions.

Actually, Harsh, we are allowing our cost of fund from March 2026 to December 2026 to increase, because we are consider about the external dynamics, about this replacements, and this actually we already taking into account into our guidance. If we are talking about NIM, it already considered in our lower guidance of NIM.

Thank you, Pak.

All right. Come back to Siaga again.

Maybe we can get another one question.

Yes, Pak. There's one question live.

Selvie, please unmute yourself and you can ask your questions. Thank you.

Hi, can you hear me? Hi.

Hello? Hi, can you hear me?

Oh,

okay. Good.

Thank you for the presentation. I have two questions, I guess.

In terms of I think earlier it was highlighted just in terms of deterioration in the consumer segment in the mortgages, the non-tier-1. Can I understand a bit further?

Has it been expected? I guess in terms of in the past there was the KUR subsidized for the housing loans.

Any of that, what is the asset quality that you are looking in that segment? Secondly, related to that also, what is your exposure to overall SOE in terms of the loan exposure at this point?

I guess where I'm coming from, because when we talk about the impact of geopolitical aspect, it's quite wide, and it's quite hard to actually to know what will be the totality of the impact. Even where you are in terms of exposures, which is largely I guess the micro lending and whatnot, do you foresee any stresses, or just in terms of what is the government is trying to do, they are maintaining the subsidized fuel for the subsidized part.

I understand you did the stress test of whatnot, but if I can get a bit more granularity in terms of the detail, what do you think is the implications on the lower income or your target segment that could be helpful? Secondly, just in terms of the payout ratio, because I think it was mentioned that you are likely maintain the absolute dividend, but just in case there is pressures because of the energy crisis, what do you think the kind of Tier 1 that you are likely maintain?

Will there be extra buffer that you will want to keep in terms of capital? Thank you.

Okay. Many questions, ya.

All right. Bu Etty, ya, I think the first questions, ya, KPR and also the deterioration in the mortgages.

Can

please? Right,

Pak. Merci.

Hi, Selvie. The question is probably related why NPL and SML consumer worsening in March, right?

Our SML in consumer actually increased from 2.5% to 2.8% year-on-year, and the biggest increase was from mortgage. Yes, it is roughly 800 billion year-on-year.

If you look at the city that experienced worsening quality is a third of them, or 35%, is coming from Jakarta. While in the NPL, some of the mix, some coming from mortgage and some coming from the payroll loan.

If we talk about mortgage per se, as our market share in mortgage roughly in the big city is below 10%, average is 5% to 7% in Jakarta, Surabaya, Bandung. We plan to optimize the growth while balancing loan quality by actually expanding into high-net-worth individual segment.

Hence, we can have customized pre-approved line that we already start last year. The problem why we have or we experience increasing SML and NPL in mortgage is actually we have legacy problem, maybe 2021 until 2023 bookings that mostly coming from tier-3 developers, so that's the one that we need to fix.

We also start to have more rigorous portfolio forum with the regional office, and in the process of having more granular RAC. We plan to have RAC per developer, per institution, and we continue to review our FTP rate as well to promote more booking coming from tier-1 developers, because the competition in the pricing there is quite harsh.

Lastly, we are also in the process of designing new loan factory system, because SLA is also important factor to grow in the consumer segment, particularly in mortgage segment. That's why we can promote or improve SLA as well as underwriting standards.

Hopefully that's somehow answering your concern about mortgage. All

right. The second question is the SOE composition.

Pak Riko, Bu Etty again? You want to take this?

Pak.

If we talk about SOE composition, our current composition in the SOE has declined compared to 10 years ago. In average, in 2025—2015 to 2019, we only have 45% from the private and more than 50% in the SOE.

Now, because as Pak Riko mentioned earlier, now the composition is shifting, 45% is actually coming from the SOE. That's the plan for our corporate loan growth, that we aim to grow more on the value chain that can fit to our commercial segment as well as SME segment, because we understand that if we can grab the funding side, then also we can promote the growth in other segment, which is SME, medium, and as well as consumer segment.

All right.

The next one is asking about the stress test, ya?

Oh, yeah.

Maybe we'll continue with the risk management. This is your—

Maybe we need to have another session, Pak. In terms of stress test, yes, we did, without the dynamic as well, we have regular stress test, usually three months, every three months.

Regarding to the impact of the Middle East conflict, we have several scenario. Our baseline is 80 US dollar per barrel, while the moderate scenario is around 100, 105 US dollar per barrel, and pessimistic scenario around 115, and worst, we use Danantara's number is 133 US dollar per barrel.

We also combined that with GDP, inflation, BI rate, and as well as exchange rate. Out of all of the combination, resulting if we ended up in the moderate scenario, or roughly 100 US dollar per barrel, we still quite confident in maintaining the solvability or Capital Adequacy Ratio above 18%, as well as Liquidity Coverage Ratio around 100%.

Should be if oil price managed to be in average, daily average for this year, 100, which means that in the first quarter we have 65 US dollar per barrel, and then in the next 9 months, we should have more than 110 maybe, that reaching up to average of 100, then we theoretically fine. Some of the mitigation that we have in mind if the crisis prolong, we actually use likelihood of scenario that the crisis will be resolved in third quarter, because we look at the forward oil price is already easing in July.

We expect that with US election in November, then US will be focusing more on the domestic matters rather than having war outside the US. Actually, that's what our underlying expectation.

Hence, we actually expect that the oil price would be maximum 100 basis—US dollar per barrel rather than above that. If that's happen, if the oil price go beyond 105 maybe until 133 in average for this year, we going to end up with the numbers that I mentioned earlier, our sensitivity showing that net CoC might increase from expectation of 1.7 in December 2026, maybe around 2% to 3%.

Gross CoC might increase around 35 to 70%, as an impact of pessimistic and worst—basis points—basis point as an impact of pessimistic and worst scenario. I think you were asking us about SOE as well as stress test, maybe you're referring to some of the SOE that we have in our book that maybe impacted from this.

We also conduct stress test in the corporate segment as well. Some of the PSO of course, because they are prone to fiscal risk.

We conduct stress test for Pertamina, for Bulog, Pupuk Indonesia, as well as PLN. Actually, when we see that month-on-month basis, they have increasing cash outflow compared to January-February.

We have the March number that they have probably 25% increase in cash outflow for Pertamina. We actually already allocate an additional loan facilities roughly $1 billion for Pertamina alone for this second quarter.

I think they also use that as a buffer for the second quarter for maintaining the oil price domestically. Because if the government able to maintain subsidized oil price, then hopefully the inflation impact in the second semester will be quite benign.

Hopefully that's—

Thank you. Thank you, Bu Etty.

This is a very long answer, ya. Let's go to the last questions, is in regard of the dividend payout ratio.

Maybe Pak Royadi will respond the question.

Thank you. Thank you, Bu Selvie, for the question.

In general, minimum CAR that BRI required by regulator is 14.7%, because we are as the systemic important bank. We have a threshold of 17%.

In this current situation, we would like to maintain our total CAR result around 20%-21%. In the normal situation, like last year when our net profit growth is declined 5%, in order to maintain our dividend per share, we increase our dividend payout from 86% to 91%.

This year, if it is normal as our target when our profit growth is increased, we have room to reduce a bit dividend payout, but the dividend per share still increase. If the situation is getting worse, we still want to maintain our Tier 1 and total CAR is around 20%.

It means that dividend payout will be lower. I think that from me, ya.

Thank you.

Thank you, Pak Royadi.

I think we go in the last presentation. Before we close the presentation, let me give the closing statement as a Group CEO of BRI.

As we close into today more challenging global environment, our priorities remain clear. We are focused on building a strong and more resilient foundations, while making sure that our businesses remain well balanced and adaptable as conditions evolve.

We understand the concern around the current circumstances, and we want to assure you that we are approaching this with clarity, discipline, and a long-term perspective. We remain confident in our ability to sustain profitability and also to continue to creating value over time.

Again, thank you for your continued trust and support to us. We truly appreciate your partnership.

We look forward to speaking with you again next quarter, or another event at NDR somewhere else, maybe in Jakarta or Europe or US, and maybe have a good day. Thank you very much, ya.

Thank you.