Kiwoom Research | 1H26 Equity Update - 21 September 2026 PT. Bank Rakyat Indonesia (Persero) Tbk. (BBRI) Strong 1H26 Earnings With Early Micro Recovery Key Takeaways: - 1H26 Earnings Growth Accelerated. BBRI booked PATMI of IDR 31.2tn (+17.5% YoY), supported by PPOP growth of +12.8% and NII growth of +9.9%, while lower funding costs helped contain NIM pressure and CoC improved to 3.1%. - Corporate and Commercial Led Loan Growth. Total loans rose 16.2% YoY to IDR 1,645.5tn, led by Corporate (+47.1% YoY) and Commercial (+58.1% YoY), while Micro remained the largest segment at IDR 714.1tn and showed early sequential recovery. - Micro Asset Quality Showed Early Improvement. Consolidated gross NPL declined to 2.90% and LAR improved to 9.1%, while Micro NPL formation fell to 4.5% and Micro CoC to 3.8%. Management also raised FY26 loan-growth guidance to 8–10%. Recommendation: “BUY” We maintain our “BUY” recommendation on BBRI. Our valuation is based on a blended approach combining DDM and P/BV. We determine a 12-month target price of IDR 4,000, implying a 20.85% upside potential from the last close of IDR 3,310. At our target price, BBRI would trade at a 2026F P/BV of 1.8x, below its 3-year average of 2.06x. Downside risks include prolonged NIM pressure, tighter liquidity, weaker-than-expected loan growth, higher credit costs, and a slower recovery in Micro asset quality. Kevin Yudha Pratama Equity Research KIWOOM SEKURITAS INDONESIA