fy’2020 financial update presentation

FY’2020 – Financial Update Presentation

PT BANK RAKYAT INDONESIA (PERSERO) Tbk.

OUTLINE

2

CEO Messages …………………………………………………………………………………………………………………………………………\

Investment Proposition ……………………………………………………………………………………………………………………………………

Macro Economy & Banking Industry …………………………………………………….…………………………..…….……..……….……....

3

5

9

BRI vs Industry ……………………………………………………………………………………………………………………………………….… 12

Economic Recovery Program (ERP) …………………………….…………………………………………………….…………………………...

BRI Strategies & Focus During Covid-19 Pandemic ……………………………………………………………………………………………..

13

18

BRI (Consolidated) …………………………………………………………………………………………………………………………………… 22

BRI (Bank Only) 26

1. Financial Highlights …………………………………….………………………………………………………………………………….. 27

2. Balance Sheet …………………………………………………………………………………………………………….………………… 28

3. Loan – Mix and Growth ………………………………………………………………………………………………………………...… 29

4. Deposits – Mix and Growth ………………………………………………………………………………………………………………. 34

5. Income Statement ………………………………………………………………………………………….……...…………………….. 35

6. Financial Ratios ………………………………………………………………………………………………………………………...…….. 40

Business Updates:

1. Micro Loans ………………..………………………………………………………………………………………….……………………. 42

2. Small and Medium Loans ……………………………………………..…………..……………………………………. 45

3. Consumer Loans……………………………………………….…………………..……..……..……..……..……….…………………… 47

4. Corporate and SoE Loans …………………………….………………………..……………………………..……..……….…….…… 49

5. BRI Digital Initiatives ……………………………………………………………………………………………………………………….. 51

6. BRI ESG Initiatives ……….………………………………………………………………………………………………………………………. 60

8. Subsidiaries …………………….……………………….……………………………...………………..….……..……..……..…….…….. 68

Key Takeaways ….…….……...……………………………………….………………………..………….……………………….……..………… 71

Guidance 2020 ……………………………………………………………………….……..……............................................................................ 73

Others ……………………………………………………………………….…………………………………………………………………………... 75

CEO MESSAGE – Moving Forward to the Light at the End of the Tunnel

3

2020 could be a year that will be remembered for all the worries brought about by Covid-19 pandemic. Even if there

will still be challenges in 2021, we see clearer signs of recovery and we are moving forward to the light at the end of

this covid-19 tunnel. The accelerated government spending has been able to withstand the economic slowdown. In

general, liquidity in the system is very adequate. The financial system regulators, BI and OJK, keep providing

accommodative policies to help accelerate economic recovery. The economic recovery trend also shown by increasing

BRI Micro and SME Index (BMSI). The Government’s Economic Recovery Programs was very well carried out with 80%

budget realization and BRI has contributed more than 60% in each program that has given BRI’s customers and BRI

itself a lot of positive impacts. Covid-19 Vaccination Program have also been rolled out in countries, including in

Indonesia, sooner than expected, which could be one of positive catalysts to improve economy in 2021.

As we look beyond 2020, we see that BRI’s business recovery is getting stronger as our loan restructuring keeps

declining from its peak at Rp193.7 Trillion in September 2020 to Rp186.6 Trillion in December 2020, below our

previous expectation of Rp200 Trillion. Even so, BRI will continue to remain watchful on our loan restructuring by close

monitoring and adequate provisioning to anticipate loan quality deterioration. Loan disbursement has recovered

especially in micro segment which has led to an increase in micro loan composition, reaching 40% of our total loans.

All in all, the recovering loan restructuring and loan disbursement has gradually improved our profitability. Moreover,

this pandemic has also encouraged the acceleration of our digital initiatives with promising results.

We are now more confident to enter 2021 as we move forward to the light at the end of the tunnel. We have

sharpened our corporate plan and evolved it into BRIvolution 2.0. Through our previous BRIvolution, we have

successfully unlocked new growth engines; ultra micro loans and digital initiatives. In BRIvolution 2.0, we will

strengthen BRI Group core for growth and scale up new growth engines which will ultimately bring us to our strategic

vision to be “The Most Valuable Banking Group in Southeast Asia & Champion of Financial Inclusion”.

Sunarso, CEO BRI

LIGHT AT THE END OF THE TUNNEL

LOAN DISBURSEMENT

Micro &SMEs

Micro

(Rp Trillion)

RECOVERING TREND OF

103.7

60.1

86.5 90.8

69.2

35.0

56.264.1

20,0 00

30,0 00

40,0 00

50,0 00

60,0 00

70,0 00

80,0 00

90,0 00

100 ,000

110 ,000

1Q'20 2Q'20 3Q'20 4Q'20

GDPGOV’T SPENDING

SUPPORT

5.02% 4.97%

2.97%

-5.32%

-3.49%

-6.00%

-4.00%

-2.00%

0.0 0%

2.0 0%

4.0 0%

6.0 0%

Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20

ACCELERATED

95%of Total Government Budget

+ Rp773 T

Govt Spending

GDP Growth YoY

452

1,068

1,841

2,589

-

500

1,00 0

1,50 0

2,00 0

2,50 0

3,00 0

+ Rp616 T

LOAN RESTRUCTURING(Rp Trillion)

FLATTENED TREND OF

PROFITABILITY (Rp Trillion)

BOTTOMED OUT

CAPITALSTRONG

+ Rp748 T

INVESTMENT PROPOSITION

6

WHY INVEST IN BRI?

7

KEEP INNOVATING FOR BUSINESS SUSTAINABILITY

8Ticket Size Tenor

Av

era

ge

tic

ke

t si

ze

2015

2020 --- 2025

Rp50 Mio

Rp40 Mio

Rp20 MioFintech & E-Commerce Partnership

KUR MicroRp15 Mio

KUR MicroRp18 Mio

COMMITTED TO GROW MICRO & SMEs – To Be The Champion of Financial Inclusion

1 year

6 months

0 month

2 years

3 years

5 years

ten

or

Rp4 – 7.5 Mio

Rp55 Mio

KUR MicroRp22 Mio

Rp8.7 Mio

Rp2.9 Mio

Commercial Micro Loan Subsidized Micro Loan

Potential Ultra Micro(>50 Mio businesses)

20192010

KUPEDES

KUPEDES

KUPEDES

KUPEDES

KUR Super Micro

45%Micro Composition

in 2025

BPUM Customers

…Go Smaller, Go Shorter, Go Faster…

Rp2.5 Mio

MACRO ECONOMY & BANKING INDUSTRY

10

MACRO ECONOMY – Signs of Recovery

11

BRI MICRO & SME INDEX (BMSI) : The First MSME Index in Indonesia

As a prominent player of MSME financing in Indonesia, BRI conduct MSME business activity tracking throught survey.

Increasing Debt Payment Capacity

BMSI shows a recovery signs…

12

BRI vs INDUSTRY – Increasing Market Share

Market ShareLOAN DEPOSIT

LoanGrowth

BRI Industry

3.4% - 1.4%

DepositGrowth

11.6%12.1%

N I M N P L

L D R

5.89% 3.12%

84.17%

C A R

20.77%

BRI Industry BRI Industry

BRI Industry BRI Industry

4.41% 3.18%

82.33% 24.25%

Source: Indonesian Banking Statistic - OJK & BRI Performance Report

November 2020

13.8%

14.5%

14.9%15.1%

15.3%15.5%

16.1%

12. 5%

13. 0%

13. 5%

14. 0%

14. 5%

15. 0%

15. 5%

16. 0%

16. 5%

2015 2016 2017 2018 2019 Nov-19 Nov-20

14.6%

15.0%15.2%

16.0%16.2%

15.6%15.7%

13. 5%

14. 0%

14. 5%

15. 0%

15. 5%

16. 0%

16. 5%

2015 2016 2017 2018 2019 Nov-19 Nov-20

ECONOMIC RECOVERY PROGRAM (ERP)

14

CONTINUATION OF ERP PROGRAM IN 2021

Government still allocates budget for Economic Recovery Program in 2021

Budget Deficit2021

5.70% of GDP(6.09% in 2020)

Covid-19 BudgetRp356.5 T

Financing

3

2

Based on The Law No.2/2020 Article 16 No.1, BI is allowed to buy Gov’t Bond in the primary market.

1

1

Source, Indonesia Ministry of Finance, June 2020

Health

Rp25.4 T

Social Safety Net

Rp110.2 T

Economic Recovery Program

Rp84.1 T

Local Government

Rp136.7 T

Business Incentive SME Corporate

Rp20.4 T (-83%) Rp48.8 T (-58%) Rp14.9 T (-75%)

VACCINATION PROGRAM – Positive Catalyst for Economic Recoveries

15

Vaccination Period

16

ECONOMIC RECOVERY PROGRAM – Maximizing Benefits for Borrowers & BRI

Economic Recovery Program

Economic Recovery Program implementation has given positive impacts, not only for borrowers but also for BRI – more manageable credit risk, secured interest income, source of CASA, and Ultra Micro penetration

17

ECONOMIC RECOVERY PROGRAM – Strengthen the Micro Journey

.....productive assistance increases CASA and future micro credit pipeline.....

7.7 Mio

Micro Businesses

985 Thousand

Borrowers

6.5 Mio

Borrowers

3.2 Mio

Borrowers

45%Micro

CompositionIn 2025

BRI STRATEGIES & FOCUS DURING COVID-19 PANDEMIC

19

BRI FOCUS AND STRATEGIES

PEOPLE’S FIRST

SUSTAINABLEBUSINESS GROWTH

GOOD CORPORATE GOVERNANCE

Health and Safety Protocol

Work From Home

Digital Initiatives Optimization

• Banking premises disinfection and sterilization• Vaccines for employees• Health care products for employees (masks,

hand sanitizers, and vitamins)

• Shorten banking operational hours• Work From Home• Flexible office space

• BRIStars: Digital office application• BRISpot: Digital loan processing• BRISIM: Daily monitoring Dashboard

Loan portfolio

• Selective Growth• Loan restructuring program• Loan relaxation program

Liquidity and Market Activities

• Maintain reserve requirement, SR, LDR, RIM • Maintain long position on Net Foreign Position• Maintain Cash Ratio

GCG Implementation

The principles of Good Corporate Governance remain in place

20

COVID-19 RESTRUCTURING TREND – Gradually Declining

Restructured Loans IDR Trillion

# Restructured Borrowers in Million

Restru. Loans By Segment Restru. Loans By Region

“Covid-19 restructured loan has been gradually decreasing as the economy starts to recover and borrowers especially in Micro

Segment start to pay”

“Further restructuring comes from Corporate Segment with better than our previous estimation of Rp200 Tr in Total Loan

Restructured”

44%

6%

3%

43%

5%

Micro ConsumerMedium Small CommercialCorporate and SOE

20%

41%

15%

24%

Jakarta Java Ex. Jakarta Sumatra Mid&East

14.9

101.2

160.5 171.9 183.7 189.1 193.7 192.3 189.3 186.6

14.9

86.3

59.3 11.4 11.8 5.4 4.6 -1.4 -3.0 -2,6

1.7%

11.8%

18.7%20.1%

21.5% 22.1% 22.4% 22.0% 21.6% 21.2%

-5.0%

0.0 %

5.0 %

10. 0%

15. 0%

20. 0%

25. 0%

-50.0

-

50.0

100 .0

150 .0

200 .0

250 .0

Mar Apr May Jun Jul Aug Sep Okt Nov 28-Des

Total Monthly % to Total Loan

0.13

1.41

2.64 2.82

2.95 2.98 2.95 2.95 2.88 2,83

0.1

1.3 1.2 0.2 0.1 0.0 -0.0 0.0 -0.1 -0.1

1.1%

11.1%

20.7%22.2% 23.2% 23.4% 23.2% 23.2% 22.7% 22.2%

-5.0%

5.0 %

15. 0%

25. 0%

-0.50

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Mar Apr May Jun Jul Aug Sep Okt Nov 28-Des

Total Monthly % to Total Loan

Des

Des

21

BRI SUPPORT FOR Micro & SME’s BUSINESS RECOVERIES

22

BRI (CONSOLIDATED)

23

FINANCIAL HIGHLIGHT - Consolidated

IDR Billion

Description 1Q'20 1H'20 9M'20 2019 2020 g QoQ g YoY

Asset/Liabilities

Total Assets (IDR Billion) 1,358,979 1,387,759 1,447,848 1,416,759 1,511,805 4.4% 6.7%

Total Loans (Gross) (IDR Billion) 930,726 922,967 935,347 903,197 938,374 0.3% 3.9%

Total Deposits (IDR Billion) 1,028,996 1,072,501 1,131,928 1,021,197 1,121,102 -1.0% 9.8%

Asset Quality

NPL (gross) 3.00% 3.13% 3.12% 2.80% 2.99%

NPL (nett) 0.77% 0.89% 0.87% 1.19% 0.87%

Liquidity

CASA 55.90% 55.81% 59.02% 57.70% 59.67%

LDR 90.45% 86.06% 82.63% 88.45% 83.70%

Profitability

Net Profit (IDR Billion) 8,170 10,201 14,154 34,414 18,660 14.0% -45.8%

NIM 6.59% 5.63% 5.64% 6.73% 5.86%

Cost Efficiency Ratio (CER) 43.79% 51.29% 51.08% 41.22% 47.51%

Operating Expense to Operating Income 75.22% 78.78% 81.74% 72.08% 82.46%

ROA before tax 2.99% 2.26% 1.95% 3.28% 1.87%

ROE Tier 1 19.95% 12.02% 10.81% 18.40% 10.48%

Capital

Tier1 CAR 17.45% 19.05% 19.82% 21.65% 20.09%

Total CAR 18.56% 20.15% 20.92% 22.77% 21.17%

24

BALANCE SHEET - Consolidated

√ √ Total customer deposits include syirkah fund√ √ Loan and NPL are total of BRI, BRISyariah and BRIAgro

IDR Billion


Total Assets 1,358,979 1,387,759 1,447,848 1,416,759 1,511,805 4.4% 6.7%

- Gross Loans 930,726 922,967 935,347 903,197 938,374 0.3% 3.9%

- Government Bonds (Recap) 1,130 1,130 - 1,130 - - -

- Other Earnings Assets 341,133 397,685 443,215 393,886 491,204 10.8% 24.7%

Total Earning Assets 1,272,989 1,321,782 1,378,562 1,298,214 1,429,578 3.7% 10.1%

Earning Assets Provision (60,988) (57,277) (62,980) (39,329) (69,161) 9.8% 75.9%

Total Earning Assets (net) 1,212,001 1,264,505 1,315,582 1,258,884 1,360,417 3.4% 8.1%

Total Non Earning Assets 146,978 123,254 132,266 157,875 151,387 14.5% -4.1%

Total Liabilities & S.E 1,358,979 1,387,759 1,447,848 1,416,759 1,511,805 4.4% 6.7%

Total Customer Deposits 1,028,996 1,072,501 1,131,928 1,021,197 1,121,102 -1.0% 9.8%

- Demand Deposits 177,085 184,277 229,184 174,928 193,078 -15.8% 10.4%

- Savings 398,098 414,283 438,914 414,333 475,848 8.4% 14.8%

- Time Deposits 453,814 473,941 463,830 431,936 452,176 -2.5% 4.7%

Other Interest Bearing Liabilities 97,742 85,640 72,711 138,881 136,188 87.3% -1.9%

Non Interest Bearing Liabilities 52,601 41,783 48,542 47,897 54,604 12.5% 14.0%

Tier I Capital 163,810 175,577 184,501 197,219 188,647 2.2% -4.3%

Total Shareholder's Equity 179,639 187,835 194,668 208,784 199,910 2.7% -4.3%

25

INCOME STATEMENT - Consolidated

IDR Billion

Description 1Q'20 2Q'20 3Q'20 4Q'20 g QoQ 2019 2020 g YoY

Interest Income 31,343 25,235 29,280 31,074 6.1% 121,756 116,933 -4.0%

Interest Expense (10,376) (9,700) (9,733) (7,913) -18.7% (40,049) (37,723) -5.8%

Net Interest Income 20,967 15,535 19,547 23,161 18.5% 81,707 79,210 -3.1%

Net Premium Income 559 25 456 (157) -134.5% 1,011 882 -12.8%

Fee & Other Opr. Income 8,002 5,735 7,737 7,990 3.3% 28,439 29,464 3.6%

Gross Operating Income 40,861 32,229 38,791 40,725 5.0% 155,569 152,605 -1.9%

Other Operating Expenses (12,808) (12,610) (13,314) (11,200) -15.9% (44,966) (49,931) 11.0%

Pre Provision Operating Profit 16,720 8,685 14,425 19,794 37.2% 66,192 59,624 -9.9%

Provision Expenses (6,593) (3,299) (9,504) (13,454) 41.6% (22,760) (32,850) 44.3%

Non Operating Income (Net) 29 (2) (50) (26) -48.5% (68) (49) -27.3%

Profit Before Tax n Minor. Int. 10,156 5,384 4,871 6,314 29.6% 43,364 26,725 -38.4%

Net Profit 8,170 2,031 3,953 4,507 14.0% 34,414 18,660 -45.8%

BRI (BANK ONLY)

27

FINANCIAL HIGHLIGHTS

√ NPL (net) is after provision for impaired loan

IDR Billion


Asset/Liabilities

Total Assets (IDR Billion) 1,287,094 1,309,321 1,359,556 1,343,078 1,421,785 4.6% 5.9%

Total Loans (Gross) (IDR Billion) 884,246 869,042 877,547 859,558 880,675 0.4% 2.5%

Total Deposits (IDR Billion) 978,326 1,013,156 1,062,702 969,750 1,052,664 -0.9% 8.6%

Asset Quality

NPL (gross) 2.81% 2.98% 3.02% 2.62% 2.94%

NPL (nett) 0.63% 0.77% 0.78% 1.04% 0.80%

Liquidity

CASA 56.86% 56.64% 60.15% 59.01% 61.00%

LDR 90.39% 85.78% 82.58% 88.64% 83.66%

RIM/MIR (Macroprudential Intermediary Ratio) 86.09% 82.26% 80.05% 85.31% 80.03%

LCR 236.15% 243.57% 255.93% 229.98% 236.06%

NSFR 132.06% 138.10% 141.95% 136.17% 149.06%

Profitability

Net Profit (IDR Billion) 8,305 10,201 14,047 34,029 18,353 12.0% -46.1%

Cost of Fund (CoF) 3.65% 3.54% 3.45% 3.58% 3.22%

NIM 6.66% 5.72% 5.76% 6.98% 6.00%


Operating Expense to Operating Income 72.97% 77.49% 80.64% 70.10% 81.22%

ROA before tax 3.19% 2.41% 2.07% 3.50% 1.98%

ROE Tier 1 20.39% 12.62% 11.43% 19.41% 11.05%

ROE B/S 18.33% 11.33% 10.26% 17.77% 9.91%

Capital

Tier1 CAR 17.20% 18.81% 19.37% 21.52% 19.59%

Total CAR 18.23% 19.83% 20.38% 22.55% 20.61%

28

BALANCE SHEETIDR Billion


Total Assets 1,287,094 1,309,321 1,359,556 1,343,078 1,421,785 4.6% 5.9%

- Gross Loans 884,246 869,042 877,547 859,558 880,675 0.4% 2.5%

- Government Bonds (Recap) 1,130 1,130 - 1,130 - - -

- Other Earnings Assets 324,067 380,682 420,502 372,442 467,502 11.2% 25.5%

Total Earning Assets 1,209,443 1,250,855 1,298,050 1,233,131 1,348,177 3.9% 9.3%

Earning Assets Provision (58,701) (54,798) (60,399) (37,670) (66,444) 10.0% 76.4%

Total Earning Assets (net) 1,150,742 1,196,057 1,237,651 1,195,460 1,281,733 3.6% 7.2%

Total Non Earning Assets 136,351 113,264 121,905 147,617 140,052 14.9% -5.1%

Total Liabilities & S.E 1,287,094 1,309,321 1,359,556 1,343,078 1,421,785 4.6% 5.9%

Total Customer Deposits 978,326 1,013,156 1,062,702 969,750 1,052,664 -0.9% 8.6%

- Demand Deposits 168,593 172,763 215,173 167,843 183,002 -15.0% 9.0%

- Savings 387,642 401,092 424,002 404,360 459,148 8.3% 13.6%

- Time Deposits 422,091 439,301 423,527 397,547 410,513 -3.1% 3.3%

Other Interest Bearing Liabilities 95,574 84,351 71,974 135,752 134,912 87.4% -0.6%

Non Interest Bearing Liabilities 37,757 28,719 35,260 33,910 39,850 13.0% 17.5%

Tier I Capital 153,694 165,118 170,426 187,012 174,757 2.5% -6.6%

Total Shareholder's Equity 175,437 183,095 189,619 203,665 194,359 2.5% -4.6%

33.3 34.1 34.3 35.8

39.9

15.8 16.3 16.4 16.3 16.3

21.3 21.9 22.9 23.1 22.4

2.9 2.8 2.3 2.5 2.3 12.1 11.0 11.4 10.9

10.6

14.6 13.8 12.7 11.3 8.5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100 %

2016 2017 2018 2019 2020

29

LOAN MIX – Reaching Micro Composition of 40%

√ Started in 2018, Loan has been adjusted due to reclassification of Trade Finance/LC Related Receivables from Loan to Other Earning Assets-Other Receivables

Loan Outstanding – by business segment

(IDR Trillion)

Composition – by business segment (%)

14.2YoY Growth ( % ) 2.3 -0.7 -7.2 -0.1 -23.3 2.5(Rp Tn) 43.6 3.2 -1.4 -1.6 -0.1 -22.6 21.1

Micro Consumer Small Medium Corporate Non SOE SOE Total

…Accelerating micro loan composition increase……Growth driven by Micro, Small, and Consumer segment…

211.5 239.5 274.3 307.7 351.3

100.2 114.6

130.8 140.5

143.7 135.5

153.9

183.0

198.7

197.2

18.1

19.9

18.3

21.5 20.0

77.2

77.4

91.0

93.8 93.7

92.8

97.1

101.4

97.4 74.7

635.3

702.4

798.9

859.6 880.7

-

100 .0

200 .0

300 .0

400 .0

500 .0

600 .0

700 .0

800 .0

900 .0

1,00 0.0

-

100 .0

200 .0

300 .0

400 .0

500 .0

600 .0

700 .0

800 .0

900 .0

1,00 0.0

2016 2017 2018 2019 2020

30

LOAN DISBURSEMENT TREND - Ongoing RecoveryIDR Trillion

Total Micro & SMEs Micro

103.7 60.1 86.5 90.8

31.8

37.134.8

19.7

15.7

24.828.1

25.8

32.7

28.9

34.1

27.8

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

0

20

40

60

80

100

120

Jan Feb Mar Apr May Jun Jul Aug Sep Okt Nov Des

Quarterly Monthly

69.2 35.0 56.2 64.1

21.5 24.2 23.5

10.8 8.4

15.8 18.3

16.8

21.1 20.6

25.2

18.3

-

5.0

10.0

15.0

20.0

25.0

30.0

0

10

20

30

40

50

60

70

80


Quarterly Monthly

14.3 7.5 10.7 10.1

4.7

5.5

4.1

2.5

1.8

3.2 3.3 2.9

4.6

2.7

3.4

4.0

-

1.0

2.0

3.0

4.0

5.0

6.0

0

2

4

6

8

10

12

14

16


Quarterly Monthly

Small & Medium

20.3 17.6 19.5 16.6

5.6

7.4 7.3

6.3

5.5 5.8

6.4 6.1

7.0

5.5 5.5 5.5

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0

5

10

15

20

25


Quarterly Monthly

Consumer

31

LOAN QUALITY – Manageable During Pandemic

Non Performing Loan – by segment (%) Special Mention – by segment (%)


NPL % 2016 2017 2018 2019 2020

Micro 1.00 1.08 1.01 1.18 0.83

Consumer 1.18 1.05 1.03 1.10 1.49

Small 2.95 3.01 3.14 3.17 3.61

Medium 7.90 5.45 6.80 5.38 4.61

Corporate 5.40 6.91 5.49 8.75 12.58

SoE - - 1.10 1.73 1.30

Total NPL 2.03 2.12 2.16 2.62 2.94

SML % 2016 2017 2018 2019 2020

Micro 4.43 4.04 3.51 3.51 2.47

Consumer 3.04 2.85 2.49 2.52 2.69

Small 6.06 5.79 4.28 4.63 3.19

Medium 3.04 3.24 2.87 2.97 3.07

Corporate 3.79 5.86 7.73 5.82 2.31

SoE 3.30 1.98 0.86 4.29 3.53

Total SML 4.28 4.12 3.65 3.93 2.75

Consumer7.4%

Corporate19.7%

Medium3.6%

Micro25.2%

Small Comm34.5%

SOE9.5%

RESTRUCTURED LOANS & LOAN AT RISK

Restructured Loans% to Total Loan

Loan At Risk % to Total Loan

6.0%

7.1%

Excl. Covid-19 Incl. Covid-19

5.0%

26.2%

28.3%

9.8%

2019 2020 2020

2019 2020 2020

Restructured Loan by Segment

2019 2020

LAR by Segment

2019 2020

Consumer5.2%

Corporate8.9%

Medium2.8%

Micro39.1%

Small Comm39.4%

SOE4.6%

Consumer3.1%

Corporate18.8%

Medium3.8%

Micro19.4%

Small Comm40.9%

SOE13.9%

Consumer6.5% Corporate

8.7%

Medium2.8%

Micro38.3%

Small Comm38.4%

SOE5.3%

32

2.8%

1.6%

2.7%

7.1%

19.7%

1.2%

0.3%

21.2%

Current SML NPL Total

22.6%2.8%

2.9% 28.3%

Restructured Loan by Quality (% to Total Loan)

Non CovidCovid

2.8%

0.4%1.7%

5.0%

19.7%

1.2%0.3%

21.2%

Current SML NPL LAR

Covid Non Covid

22.6%1.6%

2.0% 26.2%

LAR by Quality (% to Total Loan)

Excl. Covid-19 Incl. Covid-19

33

COVERAGE, WRITE OFF & RECOVERY – Enough Cushion During Pandemic

NPL Coverage Ratio

Write Off & Recovery

IDR Trillion

8.4 9.512.2

17.013.7

4.5 5.0 6.2 7.0 7.1

52.8% 53.1% 51.0%

41.1%

52.4%

0.0 %

10. 0%

20. 0%

30. 0%

40. 0%

50. 0%

60. 0%

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

2016 2017 2018 2019 2020

Write Off Recovery Recovery to Write Off

…Providing more cushion to mitigate loan deterioration…

21.929.1

34.6 37.5

64.1

12.9 14.9 17.222.5 25.9

170.3%195.5% 200.6%

166.6%

248.0%

00%

50%

100 %

150 %

200 %

250 %

300 %

-

10.0 0

20.0 0

30.0 0

40.0 0

50.0 0

60.0 0

70.0 0

2016 2017 2018 2019 2020

Provision NPL NPL Coverage

LAR Coverage Ratio (Inc. Covid-19)

12.93%

28.92% 29.77% 28.26%

48.66%

20.63% 21.84%25.77%

0.0 0%

10. 00%

20. 00%

30. 00%

40. 00%

50. 00%

60. 00%

Mar Jun Sep Des

LAR LAR Coverage

34

DEPOSITS – Strong Growth Driven by CASA, Composition Reach 60%

Deposits Composition, COFDeposits Growth (IDR Trillion)

…CASA reaching target of 60%... …Deposit growth driven by CASA…YoY8.6%

140.8 144.4 176.4 167.8 183.0

297.6 342.8

378.9 404.4 459.1

285.4

316.1

342.7 397.5

410.5 723.8

803.3

898.0

969.8

1,052.7

0.0

200 .0

400 .0

600 .0

800 .0

1,0 00.0

1,2 00.0

0.0

200 .0

400 .0

600 .0

800 .0

1,0 00.0

1,2 00.0

2016 2017 2018 2019 2020

Demand Deposit Saving Time Deposit Total

60.6% 60.6% 61.8% 59.0% 61.0%

39.4% 39.4% 38.2% 41.0% 39.0%

3.83%

3.27%

3.47%3.58%

3.22%

2.0 0%

2.5 0%

3.0 0%

3.5 0%

4.0 0%

4.5 0%

5.0 0%

0.0 %

20. 0%

40. 0%

60. 0%

80. 0%

100 .0%

120 .0%

2016 2017 2018 2019 2020

Low Cost High Cost COF Liabilities

35

INCOME STATEMENT – Increasing PPOP Supported by Recovering NII

*) Detail on the Fee & Other Operating Income on page 35**) Annualized – Excluding Treasury Stock

IDR Billion

Description 1Q'20 2Q'20 3Q'20 4Q'20 g QoQ 2019 2020 g YoY

Interest Income 29,648 23,514 27,663 29,134 5.3% 115,639 109,959 -4.9%

Interest from Loans 26,031 20,531 23,778 25,286 6.3% 103,028 95,626 -7.2%

Int. from Other Earning Assets 3,617 2,984 3,885 3,848 -1.0% 12,611 14,333 13.7%

Interest Expense (9,619) (8,991) (9,006) (7,196) -20.1% (37,078) (34,812) -6.1%

Net Interest Income 20,029 14,523 18,657 21,938 17.6% 78,560 75,147 -4.3%

Fee & Other Opr. Income * 7,855 5,859 7,338 7,379 0.6% 27,552 28,430 3.2%

Gross Operating Income 27,884 20,382 25,994 29,317 12.8% 106,112 103,577 -2.4%

Operating Expenses (11,398) (12,212) (12,294) (10,493) -14.7% (41,782) (46,396) 11.0%

Pre Provision Operating Profit 16,486 8,170 13,700 18,824 37.4% 64,329 57,181 -11.1%

Provision Expenses (6,224) (2,977) (9,009) (12,780) 41.9% (21,307) (30,989) 45.4%

Non Operating Income (Net) (4) (2) 9 (34) -463.0% (72) (31) -57.6%

Profit Before Tax n Minor. Int. 10,259 5,191 4,701 6,011 27.9% 42,950 26,161 -39.1%

Tax Expense (1,954) (3,295) (855) (1,704) 99.4% (8,921) (7,808) -12.5%

Net Profit 8,305 1,896 3,846 4,306 12.0% 34,029 18,353 -46.1%

EPS** 68 15 31 35 12.0% 278 150 -46.1%

36

RECOVERING PROFITABILITY TREND

(IDR Trillion)PPOP

Cost of Fund Net Interest Margin

(IDR Trillion)

3.65% 3.44% 3.26% 2.56%

3.60% 3.63%

3.71%

3.45% 3.47% 3.40% 3.42% 3.34%3.01%

2.72%2.52% 2.45%

3.60% 3.62%

3.65%

3.60% 3.57% 3.54% 3.53% 3.50% 3.45% 3.37% 3.29% 3.22%

0

0.0 05

0.0 1

0.0 15

0.0 2

0.0 25

0.0 3

0.0 35

0.0 4

Jan Feb Mar Apr Mei Jun Jul Aug Sep Okt Nov Des

COF Quarterly COF Monthly COF YtD

7.00% 4.46% 5.80% 6.68%

7.21%

6.76%

7.08%

3.20%

4.62%

5.59%5.30%

5.89%6.41% 6.18%

6.70%7.29%

7.21%

6.97%

7.00%6.08%

5.77% 5.72% 5.66%

5.68% 5.76% 5.80% 5.89% 6.00%

0

0.0 1

0.0 2

0.0 3

0.0 4

0.0 5

0.0 6

0.0 7

0.0 8


NIM Quarterly NIM Monthly NIM YtD

20.0

14.5

18.7

22.0

16.5

8.2

13.7

18.8

6.2

3.0

9.0

13.2

8.3

1.93.8 4.5

0.0

5.0

10. 0

15. 0

20. 0

25. 0

1Q'20 2Q'20 3Q'20 4Q'20

NII PPOP Provision Exp. Net Profit

Profitability Trend

16.49 8.17 13.70 18.82

6.45

5.12 4.91

0.92

2.52

4.73 4.43 4.06

5.20 5.62 5.61

7.60

0.0 0

1.0 0

2.0 0

3.0 0

4.0 0

5.0 0

6.0 0

7.0 0

8.0 0

0

2

4

6

8

10

12

14

16

18

20


Quarterly Monthly

37

OTHER OPERATING INCOME & EXPENSES

IDR BillionOther Operating Income

Other Operating Expenses

Other Operating Income 1Q'20 2Q'20 3Q'20 4Q'20 g QoQ 2019 2020 g YoY

Gain Fr Sales of Securities (realized) 578 479 602 854 41.8% 1,483 2,513 69.5%

Increase in Fair Value of Securities (unrealized)

- 59 34 193 471.4% 61 285 368.5%

Fees and Commissions 4,101 3,329 3,889 3,865 -0.6% 14,293 15,183 6.2%

Gain fr Forex 68 161 533 491 -7.8% 153 1,252 716.2%

Recovery 1,622 1,236 2,092 2,211 5.7% 6,997 7,161 2.3%

Others 1,486 596 188 (235) -225.2% 4,564 2,035 -55.4%

Total Other Operating Income 7,855 5,859 7,338 7,379 0.6% 27,552 28,430 3.2%

Other Operating Expenses 1Q'20 2Q'20 3Q'20 4Q'20 g QoQ 2019 2020 g YoY

Personnel 6,672 6,566 6,923 4,820 -30.4% 22,976 24,980 8.7%

General and Administration 3,377 4,167 4,028 4,535 12.6% 14,404 16,107 11.8%

Losses fr decrease of Securities andGovt. Bonds value

- - - - - - - -

Losses fr sale of Securities and Govt.Bonds

108 (108) - - - - - -

Losses from forex transaction - - - - - - - -

Premium Paid on Govt Guarantees - - - - - - - -

Promotion 330 534 404 878 117.0% 2,107 2,146 1.8%

Others 911 1,053 938 260 -72.3% 2,296 3,163 37.8%

Total Other Operating Expenses 11,398 12,212 12,294 10,493 -14.7% 41,782 46,396 11.0%

4,024 28%

4,913 34%

1,674 12%

1,835 13%

815 6%

362 2%

671 5%

Deposit Adm Fee E-Channel Related Fee

Loan Adm Fee Trade Finance & Int'l Business Related Fee

Non E-Channel Related Fee Insurance Related Fee

Others

Fee & Other Operating Income Fees and Commission – Composition (IDR Billion)

Growth YoY

Fees and Commissions income grew strong, reaching 11.0% of Total Income.

YoY g = 3.2%

38

FEE & OTHER OPERATING INCOME – Shifting to Transaction Based Fee Income

2019 2020

(IDR Billion)

9,210 10,303 11,900 14,293 15,183

4,461 5,044

6,200

6,997 7,161

3,008 3,346

4,676

6,261 6,086

16,679 18,693

22,777

27,552 28,430

-

5,00 0

10,0 00

15,0 00

20,0 00

25,0 00

30,0 00

35,0 00

2016 2017 2018 2019 2020

Fees and Commissions Recovery Others Total

4,177 27%

5,772 38%

1,529 10%

1,628 11%

997 7%

456 3%

625 4%

-6.9%

25.8%

22.3%

-11.3%

-8.7%

17.5%

3.8%

Others

Insurance Related Fee

Non E-Channel Related Fee

Trade Finance & Int'l Business Related Fee

Loan Adm Fee

E-Channel Related Fee

Deposit Adm Fee

YoY g = 6.2%

39

CAPITAL & CET1 RATIO – Adequate Capital During Pandemic

… Increasing CAR supported by more efficient capital-used expansion, OCI-securities gain, and ESA program, provides room for higher dividend payout…

*Include Capital Conservation Buffer (2.5%)

21.95%

20.15%21.52%

17.20%

18.81% 19.37% 19.59%

1.01%

1.06%

1.03%

1.02%

1.02%1.02% 1.02%

22.96%

21.21%

22.55%

18.23%

19.83%20.38% 20.61%

10. 00%

12. 00%

14. 00%

16. 00%

18. 00%

20. 00%

22. 00%

24. 00%

10. 00%

12. 00%

14. 00%

16. 00%

18. 00%

20. 00%

22. 00%

24. 00%

2017 2018 2019 1Q'20 1H'20 9M'20 FY'20

Tier 1 CAR Tier 2 CAR Total CAR

12%

Risk AppetiteStatement

17,0%

RegulatoryRequirement*

14,5%DPO

60%DPO

50%DPO

45%

40

FINANCIAL RATIOS

Description 1Q'20 1H'20 9M'20 2019 2020

CASA 56.86% 56.64% 60.15% 59.01% 61.00%

Cost of Fund (COF) 3.65% 3.54% 3.45% 3.58% 3.22%

Loan to Deposit Ratio 90.39% 85.78% 82.58% 88.64% 83.66%

LCR 236.15% 243.57% 255.93% 229.98% 236.06%

NSFR 132.06% 138.10% 141.95% 136.17% 149.06%

RIM/MIR Macroprudential Intermediary Ratio 86.09% 82.26% 80.05% 85.31% 80.03%

Net Interest Margin (NIM) 6.66% 5.72% 5.76% 6.98% 6.00%


Earning Asset Provision 5.09% 4.72% 5.10% 3.36% 5.42%

Opr. Expense to Opr. Income 72.97% 77.49% 80.64% 70.10% 81.22%

NPL ratio - Gross 2.81% 2.98% 3.02% 2.62% 2.94%

NPL ratio - Nett 0.63% 0.77% 0.78% 1.04% 0.80%

LAR 12.93% 28.92% 29.77% 9.78% 28.26%

LAR Coverage 48.66% 20.63% 21.84% 44.65% 25.77%

Return on Assets (ROA) - b.t 3.19% 2.41% 2.07% 3.50% 1.98%

Return on Assets (ROA) - a.t 2.59% 1.59% 1.44% 2.77% 1.39%

Return on Equity (ROE) - Tier I 20.39% 12.62% 11.43% 19.41% 11.05%

Return on Equity (ROE) - B/S 18.33% 11.33% 10.26% 17.77% 9.91%

Primary Reserve Requirement (IDR) 5.59% 3.81% 3.00% 6.57% 3.00%

Net Open Position 2.05% 1.08% 0.98% 1.87% 1.07%

Tier I CAR 17.20% 18.81% 19.37% 21.52% 19.59%

Total CAR 18.23% 19.83% 20.38% 22.55% 20.61%

BUSINESS UPDATES

MICRO

42

43

MICRO BANKING – Loan and Deposit Increase Double Digit

(IDR Trillion)

Micro Deposit

Micro Borrowers

(Million)

YoY g = 14.2% YoY g = 13.0%

YoY g = 11,5%20202019

Micro Loan

(IDR Trillion)

155.7 177.9 205.2 232.2 221.2

4.2 2.3

4.8 6.2 3.4

51.6 59.3

64.3 69.3 126.7

211.5 239.5

274.3 307.7

351.3

-

50.0

100 .0

150 .0

200 .0

250 .0

300 .0

350 .0

400 .0

-

50.0

100 .0

150 .0

200 .0

250 .0

300 .0

350 .0

400 .0

2016 2017 2018 2019 2020

Kupedes Kupedes Rakyat Micro KUR Total

4.0 4.1 4.2 4.4 4.0

0.7 0.2 0.3 0.5 0.3

4.2 5.1 5.5 5.7 7.5

8.9 9.4 10.0 10.6 11.8

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2016 2017 2018 2019 2020

Kupedes Kupedes Rakyat Micro KUR Total

182.0 207.5 230.2 249.6 289.1

1.4 1.1

1.3 1.4

1.4

31.6 36.9

41.3 46.3

45.5

215.0 245.5

272.8 297.3

336.0

-

50.0

100 .0

150 .0

200 .0

250 .0

300 .0

350 .0

400 .0

-

50.0

100 .0

150 .0

200 .0

250 .0

300 .0

350 .0

400 .0

2016 2017 2018 2019 2020

Savings Demand Deposit Time Deposit Total

84.4%

15.6%

Low Cost High Cost

86.6%

13.4%

…KUR & KUR Super Micro have contributed to double digit loan growth & increasing number of borrowers …

…Double digit Micro deposit growth has been contributed by BPUM, BRILink, and Micro Payment…

Micro Deposit Composition

2021 Quota

Rp 110TBANK BRI

6%

Schemes

Plafond

50 MillionIDR

Interest Rate

10,5%

Insurance Coverage

Govt Subsidy

Paid by borrower 44

FOCUSING ON KUR DURING PANDEMIC - Increasing Micro Composition With Lower RWA

KUR Super Micro Loan Disbursement

IDR Trillion

KUR SUPER MICROKUR scheme expansion for new micro business entrepreneur as part of Government Program to support Economic Recovery.

IDR 8.66 Trillion

As of Dec 31st 2020,

985 thousand borrowers

Minimum 6 months experience on running Micro business

Target Market

Loan Composition

6%

Schemes

Maximum Plafond

10 MillionIDR

Interest Rate

13%BANK BRI

2021 Quota

Rp 40T

Govt Subsidy

Paid by borrower

Insurance Coverage

45%IN 2025 KUR Disbursement

Partnership*

*Partnership with E-Commerce & Ride Hailing Application

New Micro Business EntrepreneurNo limitation on business experience

Target Market

211.5 239.5 274.3 307.7 351.3

635.3 702.4 798.9 859.6 880.7

33.3%34.1% 34.3%

35.8%39.9%

28. 0%

30. 0%

32. 0%

34. 0%

36. 0%

38. 0%

40. 0%

42. 0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100 %

2016 2017 2018 2019 2020

Micro Total Loan % to Total

1.95

4.86

7.29

8.66

0

1

2

3

4

5

6

7

8

9

10

Sept Oct Nov Dec

KUR MICRO

SMALL & MEDIUM

45

46

SMALL AND MEDIUM LOANS


Medium (IDR Trillion)

(IDR Trillion) By Region (%)

By Economic Sectors (%)

Small

YoY g = - 7.2%

Insurance Coverage

KMK Tangguh(Government Guaranteed Loan Scheme –Manageable Credit Risk and Lower RWA)

Maximum Plafond

10 BillionIDR

Max Loan Tenure

36 Months

Insurance Premium paid by Government

For Covid-19 impacted borrowers

128.7 144.0169.5 181.6 175.9

6.89.9

13.517.1 21.3

135.5153.9

183.0198.7 197.2

0.0

50. 0

100 .0

150 .0

200 .0

250 .0

0.0

50. 0

100 .0

150 .0

200 .0

250 .0

2016 2017 2018 2019 2020

Small Commercial Retail KUR Total Loan

YoY g = - 0.7%

Jakarta23.4%

Java Ex. Jakarta34.9%

Mid & East25.2%

Sumatera16.5%

18.1

19.9

18.3

21.5

20.0

16

17

18

19

20

21

22

2016 2017 2018 2019 2020

Agribusiness14.8%

Mining2.2%

Industry Manufacturing

16.7%

Electricity, Gas & Water

1.0%

Construction16.3%

Trading, Hotel & Rest.34.2%

Transportation7.0%

Business Services

5.6%

Social Services2.3%

As of Dec 31st 2020

IDR8.76 Tr

14.4 thousand borrowers

Rp436 Bio Disbursement Volume

130 Borrowers

2 Months AvgLoan Tenor

14.5% Avg Int. Rate

P2P Partnership

Powered by

CONSUMER

47

48

CONSUMER LOANS

• Consumer loan grew 2.3% YoY and salary based loan is still the biggest portion of theconsumer loans of 70.5% in 2020.

Sales Volume

Rp61 Bio

Users 11,676

Rp680 Bio

44,819

Consumer Digital Loan

Outstanding Rp21.2 Mio

Sales Volume

Users

Outstanding Rp342.2 Mio

Outstanding

NPL (%)

(IDR Trillion)

Description 2016 2017 2018 2019 2020 g YoY Composition

Salary Based 78.2 88 97.8 101.3 101.3 0.0% 70.5%

Mortgage 18.2 22.1 27.1 32.3 35.7 10.6% 24.9%

Vehicle Loan 2.2 2.6 3.7 4.1 3.0 -26.8% 2.1%

Card and Others 1.6 1.8 2.3 2.7 3.6 33.6% 2.5%

Total 100.2 114.6 130.8 140.5 143.7 2.3% 100.0%

Description 2016 2017 2018 2019 2020

Salary Based 0.81% 0.74% 0.73% 0.69% 0.94%

Mortgage 2.60% 2.18% 1.92% 2.30% 2.80%

Vehicle Loan 0.60% 0.56% 0.47% 0.71% 2.77%

Card and Others 4.07% 2.95% 4.07% 2.85% 2.83%

Total 1.18% 1.05% 1.03% 1.10% 1.49%

Powered by

CORPORATE & SOE

49

77.2 77.4 91.00 93.8 93.7

92.8 97.1101.4 97.4 74.7

170 174.5192.5 191.1

168.4

0

50

100

150

200

250

2016 2017 2018 2019 2020

Corporate SOE Total

50

SOE AND CORPORATE LOANS

Loan Outstanding – Trend (IDR Trillion)

YoY g = - 11.9%

By Business Segment

SOE Loans


Corporate Business Strategies

• Selective loan growth

• Improve asset quality

• Boost fees & other operating income through transaction banking

SOE Loans Corporate Loans

…Corporate & SOE loan growth trend alignwith BRI focus to grow more on MSME andoptimize transactions in Corporate Segment…

DIGITAL INITIATIVES

Digitizing Core Digital EcosystemNew Digital Propositions

Exploration:

Build ecosystem to offer products and services beyond core business.

Exploration:

Create and launch an independent greenfield digital bank in Indonesia

Exploitation:

Digitize existing services and transactions (Business Process)

● Optimize existing Channels● Integrated Digitized Operation● Simplified and standardized system

Branchless Banking Initiatives for Micro

● Digital Platform for Business● Build new business model● Partnership with Fintech

Digital Lending Platform

● Mobile First channel● Fully Digital for untapped market● Build New Digital Capability

Boost Productivity &Unleash The Potential

Tap the UntappedEmbedded in Customer Life

Leveraging New Liquidity, NewOpportunities, New Source of Growth

Digital Credit Card

52

BRI DIGITAL INITIATIVES – Strengthening Digital Capability

K E C EDigital

Ultra Micro Loan

The First Bank with ISO Certificate

in Big Data

ISO

27

00

1:2

01

3

AI & Big Data Analytics

DigitalLoan

Products

BRI x TravelokaPaylater Card

Digital Loan Underwriting System

Advanced Mobile Banking

Digital partnership & Collaboration

The First Bank with

ISO Certificate

in Open API

ISO

27

00

1:2

01

3

DigitalEcosystem

Platform

LPG Gas 3kg Ordering Systerm

B2B2C Integrated Billing System

School Management System Micro Transaction

Ecosystem Solutions

Online Wet Market

P2P PartnershipE-Commerce Partnership

Ride HailingPartnership

53

BRILink – Increasing Volume & Strong Fee Income Growth

Money Transfer

LinkAja Cash Withdrawal

Bill PaymentLoan Installment

Cash Deposit & Withdrawal

Mobile Phone Voucher

SERVICES PROVIDED

422,160

504,233

# of Agents

521

728

# of Transaction(In Million)

Transaction Volume(IDR Trillion)

673

843

(IDR Billion)

Fee Based Income

A branchless banking initiatives performed by BRI’s customer through fee income sharing scheme..

Cash Pickup

87.3 Thousand saving referrals ( )

80.3 Thousand loan referrals ( )

IDR 13.3 T savings ( )

72% YoY

112% YoY

57% YoY

54.6 Thousand (74% of total) villages acquisitions

2019 2020 2019 2020

2019 2020 2019 2020

1,159.7

788.7

Ultra Micro Payment (synergy with Pegadaian & PNM)

54

1

• Double Work• Variative Financial Assessment• No Cross Sell Module

• All in one go• Standardized Template• Built-in Cross-Sell Module

Digitalization

BRISPOT JOURNEY – Continuous Enhancement

• Manual Pre-screening• Manual Disbursement• Manually notify by loan officer

• Automated Pre-screening• Automatic Disbursement• SMS Notification

Automation

FROM TO

FROM TO

• Paper Based• Manual Mapping• Approval process in 20 days

SimplificationFROM TO

• Less Paper• Geo-tagging Technology• Less in 2 days

2018

2019

2020

Goingforward

BRISPOT MICROBusiness Process Re-Engineering supported by the development of BRISPOT for micro loan (Kupedes), an application platform that expedite the micro loan underwriting process.

Business Process Re-Engineering supported by the development of BRISPOT Consumer as an application platform for consumer business banking services and facilities.

BRISPOT CONSUMER

Development of BRISPOT for small and commercial business replicated the successful implementation of BRISPOT for micro and consumer.

BRISPOT SMALL COMMERCIAL

Development of BRISPOT as apps for external use (customer) to ease the access to BRI’s loan application.

BRISPOT EXTERNAL

NEXT (ENHANCEMENT)

• Ride Hailing Apps Integration• Fintech Partnership Integration• BRISPOT for BRILink Agents• GoogleAPI collaboration for geo-tagging loan

disbursement pipeline

TRANSACTION – Shifting to Digital

ATM(Trx in million )

“During the pandemic, customers' transaction behaviors have shifted from using conventional e-channels (ATM and EDM) to digital (e-banking)”

INTERNET BANKING*

(Trx in million )

* Internet banking numbers shown above incl. BRIMO transactions

55

Launched in 2019, BRIMo is Internet-based digital financial application using newest UI/UX, providing attractive

features e.g online opening account, card-less cash withdrawal, and fingerprint/ face ID login

(Trx in million) BRIMo

2,157.0 2,084.6 2,322.0

3,723.5 3,745.6

-

500 .0

1,00 0.0

1,50 0.0

2,00 0.0

2,50 0.0

3,00 0.0

3,50 0.0

4,00 0.0

2016 2017 2018 2019 2020

219.1 311.5

574.9

1,169.4

2,715.4

-

500 .0

1,00 0.0

1,50 0.0

2,00 0.0

2,50 0.0

3,00 0.0

2016 2017 2018 2019 2020

100.7

765.8

0

100

200

300

400

500

600

700

800

900

2019 2020

56

APPLICATION PROGRAMMING INTERFACE (API) – Gateway for Digital Partnership

Execute Digital Partnership with Precision & Speed (OpenAPI)API which stands for 'Application Programming Interface’ connects business processes, services, content, and data to channel partners, internal teams, and independent developers in an easy and secure way.

Top BRIAPI’s Features

1. BRIVA

2. Inquiry Balance

3. Transfer

4. BRIZZI

5. Direct Debit

Healthcare Ecosystem

Transportation Ecosystem

Agri Ecosystem

Fintech & E-CommerceForeign currencyInformation and Transaction

• Balance Inquiry• Account Statement

• Money Transfer

Information of BRI Branches Location

T-Bank BRI E-Pay BRI

BRI Virtual Account

Information of BRIE-channel Location

BRI Credit Card

BRI Consumer LoanBRI Micro and Retail KUR

Oil & Gas Ecosystem, Education Ecosystem, etc

ISO 27001:2013

…Digital Partnership Model to connect withFintech and create digital ecosystem. As of Dec2020, more than 120 partners have been usingBRIAPI with 88 million transactions and Rp43 Tsales volume…

Sales Volume Rp43 T ( 309.5%)

Transaction Volume 88 Mio ( 111.5%)

209 Total Partners ( 145.8%)

DIGITAL SAVING – New Playing Field

BRI Digital Saving Advantages

Easily accessed(Accessible through web browser)

Easy to use & user friendly

Quick approval process

No outlet visit

Bundled with internet bankingand BRIMo

Onboarding Platforms

57

58

ENHANCING DIGITAL – Exploring New Source of Growth

Digital Loan Products

*Data as of December 2020

Rp70.6 Bio (disbursement)

18,096 borrowers

Rp113.2 Bio (disbursement)Rp 20.2 Bio (OS)36,810 borrowers

Rp61.4 Bio (Sales Vol)

Rp21.2 Bio (OS)11,676 active users

Rp628 M38 borrowers

Rp680.1 Bio (Sales Vol)

Rp342.2 Bio (OS)44,819 card users

Total Digital Lending Disbursement

Rp925.3 Billion

P2P Lending Partnership with Fintechs

and Digital Start-Ups*Data as of December 2020


130 borrowers


304 borrowers

Ride Hailing

Rp397 Mio25 borrowers

E-Commerce

Rp1.1 Bio 50 borrowers

Rp2.6 Bio 131 borrowers

Total Disbursement

Rp443.4 Billion

Rp500 Mio (disbursement)

2 borrowers

Rp628 M38 borrowers

NETWORK TRANSFORMATION – Reinventing BRI Distribution Channels

X

End-to-end Branch Operating Model (Focus on CASA and Fee-based Income)

Customize New Branch Format

Optimize Distribution Network Footprints

Automate & Digitize Business Process

Accelerate Migration of ATM/ CRM to Cross Industry Utilities

Enhance Digital Sales and Marketing Capabilities

BRILINK 2.0

• Universal Banker with more dynamic role allocation• Migration of 60-70% branch service and transactions to

Self-Service Channels• Agile Branch Operating Model and develop tech-

enabled sales tools

Customized branch format to align with customer segments and micro-market opportunities to improve branch productivity and brand positioning

Enhance branch efficiency and customer experience

Improve ATM/ CRM operational efficiency and productivity

• Integrated customer journey (upgrade digital channels functionalities and improve omnichannel customer experience)

• Remote advisory channel for affluent customers• Tech-enabled Contact Centre (e.g. AI, chatbot, etc)

Redefine the role of BRILink Agents to become Primary Channel for Lead Generation & Servicing for Selected Segments (e.g. rural micro)

BRI ESG INITIATIVES (Environment, Social, and Governance)

BRI SUSTAINABLE FINANCE FRAMEWORK

Human Capital

Assets Liabilities

Operations

• Financing sustainable projects, such as

Renewable Energy, Energy Efficiency,

Pollution Control & Prevention, Biodiversity

Conservation, Eco-Friendly Transportation,

Green Building, etc.

• Credit risk management policy on CPO

• ESG-linked Liability Products:

BRI Sustainability Bond 2019

• Socially Responsible Liability Products with

Anti-Money Laundering and Counter-

Terrorism Financing Policies

• Paperless Operations

▪ BRI Digital Office

▪ BRISPOT or Digital Loan Mobile

Application

• Green IT Infrastructure

• Reuse, Reduce, Recycle

• Socially Responsible Human Capital

Strategy with Diversity and Equality Policies

• BRISMART (Eco-friendly E-Learning

System)

We are committed to give optimal values to stakeholders by implementing a Sustainable Finance Framework in our banking activities

61

SUPPORTING THE GOVERNMENT TO ACHIEVE SDGs

40% of BRI’s total loans is contributed by Micro and Ultra Micro Loans, distributed to 11.7 million borrowers

BRI has disbursed loans to key sectors in the economy including Agriculture and Food Processing & Manufacturing

The BRI Peduli – Indonesia Sehat Program aims to improve the community’s quality of life and its health (i.e. ambulance donation, free medical examinations, etc.)

The BRI Peduli – Indonesia Cerdas Program aims to improve the quality of human resources (i.e. scholarships, renovation of education infrastructures, etc.)

BRI has disbursed Subsidized Ultra Micro Loans (KUR Super Mikro), that is prioritized productive housewives.

BRI has disbursed loans to sustainable water and wastewater management projects.

BRI has disbursed loans to renewable energy projects.

The BRI micro loans has created jobs for micro business entrepreneurs

The Subsidized Micro Loan (KUR Mikro) has created jobs for micro start-ups entrepreneurs.

The BRILink system has created new sustainable business opportunities for BRI Micro Borrowers.

The BRI Sustainability Bond has provided access to affordable houses, financed the LRT Jakarta and the Green Building Projects

The BRI Digital Initiatives, such as BRISMART Digital Learning System, and BRISPOT Digital Loan System have helped reduce GHG emissions (less business travel)

The BRI Peduli – Indonesia Lestari Program aims to support the preservation of nature for a better life (i.e. planting mangrove seedlings, etc)

BRI has internal financial crime prevention policies and human rights policy. Every year all employees complete e-training to prevent bribery, corruption, etc.

BRI is the chairman of Indonesian Sustainable Finance Initiative (IKBI) that aims to support the government’s effort in achieving the SDGs

BRI requires all CPO producer borrowers to have ISPO and/or RSPO certification.

FINANCING FOR SUSTAINABLE DEVELOPMENT

Micro & SMEs

Rp484.4 T

Renewable Energy

Rp14.6 T

PollutionPrevention & Control

Rp2.3 T

Environmentally Sustainable Management of Living Natural

Resources & Land UseRp33.1 T

Terrestrial & Aquatic Biodiversity Conservation

Rp702 B

Clean Transportation

Rp15.5 T

Sustainable Water and Wastewater

ManagementRp685 B

Green Building

Rp2.9 T

Eco-efficient Product, Production Technologies

and ProcessesRp7.7 T

Other Sustainability-

related projectsRp541 B

Sustainable Business Activities*

Loan PortfolioAs of December 31, 2020

Rp562 Trillion63.9% of Total Loans

Rp493 T57.3% of Total Loans

Y-to-Y Increase

2019

2020

“The BRI Sustainable Business Activities

Loan Portfolio has increased 14.1% YoYand the highest among peers”

*Based on Financial Services Authority Regulation (POJK) No.51/POJK.03/2017 on the

Application of Sustainable Finance for Financial Services Institutions,

Issuers and Public Companies.

63

BRI SUSTAINABILITY BOND 2019

PROCEEDS ALLOCATION

BY PROJECT TYPE

BY ELIGIBLE CATEGORY

• 84% for Social Projects • 16% for Green Projects

• 43%: Socioeconomic advancement and empowerment

• 41%: Employee Generation

• 8%: Green Buildings• 7%: Clean Transportation• 1%: Affordable Housing

THE BOND SUPPORTS SDGs

Decent Work and Economic Growth• Job creation supported by Micro Loans

Reduced Inequality• Job creation by targeting micro start-ups

entrepreneurs

Sustainable Cities and Communities• Access to affordable houses• LRT Jakarta Project• Green Building Project

TRANSACTION HIGHLIGHT

• Issue date: 21 March 2019• Size: $500 Million• Maturity: 5 years• Coupon: 3.95%• Rating: Baa2 by Moody’s

BBB- by Fitch

SECOND PARTY OPINION

“BRI’s Sustainability Bond Framework is credible and impactful”

FIRST SUSTAINABILITY

BOND

in South East Asiain RegS Format

64

INCREASING ESG AWARENESS AND COMMITMENT AMONG EMPLOYEES

SUSTAINABLE FINANCE

AWARD

GOVERNANCE, RISK AND

COMPLIANCE

CULTURE CARNIVAL

E-LEARNING ON ESG

THROUGH BRISMART

As part of the BRI Sustainable

Finance Action Plan, all

employees across the Bank

should implement sustainable-

finance-related activities in their

own business/banking units.

BRI Sustainable Finance

Award is given to the most

innovative employees who are

able to create and implement

effective sustainable-finance-

related activities.

The BRI Governance, Risk

and Compliance Culture

Carnival is part of the ongoing BRI

Culture Transformation.

This virtual event is aimed to

increase employees’ awareness of

banking risk and compliance

management that includes Anti-

bribery, Anti-corruption and Anti-

Fraud Policy, BRI Whistle Blower

System management, and Digital

& Cyber Risk Management.

To increase awareness of ESG

Issues and Risks among

employees, BRI provides e-

learning through BRISMART

learning system that include the

following learning materials:

▪ Sustainable Finance

▪ Anti-Fraud Awareness

▪ Anti-Bribery

▪ Anti-Money Laundering and

Fight against Terrorism Funding

▪ Information Technology

Govenance, Data Privacy and

Security

65

BRI ESG RATINGS

Updated on August 25, 2020 Updated in November 2020 Updated in November 2020 Updated on January 25, 2021

OVERALL SCORE 110.2

Increased from 93.08 in 2019

Top 3 Public Listed Company in Indonesia with Top Score above 97

CGPI SCORE 91.75

Increased from 90.75 in 2018

Updated in 2020

Updated in 2019

BRI has been Listed in The SRI-KEHATI Indexsince its inception 2009

SRI-KEHATI Index is the Sustainable and Responsible Investment (SRI) Biodiversity index that uses the principles of ESG

2018 2019 2020

ESG Rating

BBB

A A

Score: 4.8

5.2 5.3

2018 2019 2020

49th63rd

4246

ESG Percentile Rank

11th

Score: 23

2019 2020

High Risk

30.0

ESG Risk Rating

Medium Risk

Score: 27.7

Improvements

67

ESG AWARDS

67

ESG AWARDS 2020

BRI was the winner of 14 categories in ESG Awards 2020, organized by Beritasatu Media Holdings

in cooperation with Bumi Global Karbon Foundation

ASIA SUSTAINABILITY REPORTING RATING (ASRRAT) AWARDS 2020

This award reflects the quality ofBRI’s Sustainability Report

based on Global Reporting Initiatives (GRI) Standards

THE ASSET ASIAN AWARDS

“BEST ISSUER FOR SUSTAINABLE FINANCE”

INDONESIA

“BESTSUSTAINABILITY BOND”

INDONESIA

SUBSIDIARIES

69

BRI GROUP

SUBSIDIARIES – Shares >50% and as a controller stake

To be the leading sharia bank in Indonesia by focusing on

consumer and SME segment

To provide financial solution in agribusiness in Indonesia by building a

digital platform for agriculture ecosystem

To be the top 5 Player Based on Market Share GWP in 2023

Enter the multifinance with asset above Rp 10 Trillion with focus on

consumer financing

To be a strong financial services company by connecting business

between Indonesia and Hong Kong

Become one of the most valuable securities house in Indonesia

To be the leading Venture Capital in financial technology and beyond

To be the top 5 general insurance in Indonesia in 2024 by focusing on micro, applying advanced digital

tech, and customer centric

Go Public 2018

71.64%Shares Ownership

Go Public 2003




100%Shares Ownership




ASSOCIATED ENTITIES – Shares <50%

To be a leading venture capital company in Indonesia by focusing

on SME and Ultra Micro

To be the top 5 AUM in mutual funds by providing the best

mutual funds as financial solutions



Majority: PBUI Majority: Danareksa

% shares ownership as in December 2020

70

SUBSIDIARIES

Subsidiaries’s Total Asset Rp 109.1 T

57.9 T

28.0 T

13.1 T

4.1 T3.0 T

1.8 T 1.1 T8.5 B

KEY TAKEAWAYS

72

KEY TAKEAWAYS

1

2

3

4

5

6 Adequate provision provides cushion to anticipate Covid-19 impact

7 Strong capital to support future expansion and dividend payment

Increasing NIM supported by recovering loan disbursement and lowering COF

Well-managed Covid-19 loan restructured risk with declining outstanding

Increasing Micro & SME Loan Composition

Re-sharpening & Re-focusing BRIVolution 1.0 into BRIVolution 2.0

Manageable Covid-19 impact

GUIDANCE 2021

74

GUIDANCE 2021

Loan Growth : 6% - 7%

LDR : ±85%

NIM : ±6.3%

Fee Income Growth : ±8%

OPEX Growth : ±8%

NPL : ±3%

Credit Cost : ±3.1%

OTHERS

76

BOARD OF COMMISSIONERS

77

BOARD OF MANAGEMENT

*Effective after OJK’s approval on the Fit & Proper Test in accordance with the prevailing regulations

SEVP Head of Internal Audit

Hari Siaga Amijarso

SEVP Treasury & Global Service

Listiarini Dewajanti

SEVP Change Management& Transformation

Retno WahyuniWijayanti

President Director

Sunarso

Vice President Director

Catur Budi Harto

Director of Finance

Viviana Dyah A. R.*

Director of Small and Medium

Business

Amam Sukriyanto*

Director of Consumer

Handayani

Director of Micro Business

Supari

Director of Digital and Information

Technology

Indra Utoyo

Director of Networks and

Services

Arga M. Nugraha*

Director of Human Capital

Agus Winardono*

Director of Risk Management

Agus Sudiarto

Director of Institution and SOE

Agus Noorsanto

Director of Compliance

Ahmad SolichinLutfiyanto*

AWARDS

Best Overall SOEBest SOE for Organizational Transformation –

ANUGERAH BUMN (SOE AWARD) 2020

Best in Country Indonesia 2019 –IR MAGAZINE SOUTH EAST ASIA

The Best CEO in Banking Transformation–

CNBC INDONESIA AWARD 2020

TOP CSR AWARDS 2020

Innovative Company For Embracing Startup Collaboration For Digital

Ecosystem–INDONESIA DIGITAL INNOVATION

AWARD 2020

Best of The Best Company 2020 –FORBES INDONESIA

The Most Resilient BUMN (SOE) 2020 –TOP BUMN AWARD 2020

SURVIVE IN CRISIS

The Best Bank in supporting MSME for Bank In Category BUKU 3 & 4 2020

– BANK INDONESIA

78

79

THE MOST EXTENSIVE AND LARGEST NETWORKS

Regional Office Distribution

• Jakarta 1, 2, 3• Bandung• Surabaya•Malang• Yogyakarta• Semarang

• Denpasar•Makasar•Manado• Jayapura• Banjarmasin• Banda Aceh

• Medan• Pekanbaru• Padang• Palembang• Bandar Lampung

*Total branches and sub branches are including 4 overseas offices and 3 overseas sub branches

REGIONAL OFFICES DISTRIBUTION

Branch Network 2016 2017 2018 2019 2020 YoY

Head Office 1 1 1 1 1 -

Regional Offices 19 19 19 19 19 -

Branches 467 468 468 467 462 (5)

Sub Branches 609 610 609 611 608 (3)

BRI Units 5,380 5,382 5,381 5,382 5,382 -

Cash Offices 984 992 964 952 890 (62)

Teras BRI 2,545 2,536 2,069 2,049 1,986 (63)

Teras Mobile 638 638 136 137 136 (1)

Payment Point 35 38 50 54 54 -

Total 10,678 10,684 9,697 9,672 9,538 (134)

E-channel 2016 2017 2018 2019 2020 YoY

ATM 24,292 24,684 22,684 19,184 16,880 (2,304)

EDC 257,712 302,921 284,425 204,386 184,580 (19,806)

CRM 1,392 1,992 2,609 3,809 5,809 2,000

e-Buzz 57 57 57 57 57 -

Total 283,453 329,654 309,775 227,436 207,326 (20,110)

Branchless Network 2016 2017 2018 2019 2020 YoY

Brilink Agents 84,550 279,750 401,550 422,160 504,233 82,073

80

CREDIT RATINGS

International & Domestic Ratings

- Long Term Foreign Currency IDR : BBB-, Stable Outlook- Short Term Foreign Currency IDR : F3- Support Rating Floor :BBB-- Support Rating : 2

- Viability Rating : bbb-- National Long-Term Rating : AA+ (idn), Stable Outlook- Rupiah Subordinated Debt : A+ (idn)- Senior Unsecured Notes : BBB-

- Outlook : Stable- Issuer Credit Rating : BBB-- Stand-Alone Credit Profile (SACP) : bbb-

- Outlook : Stable- Bank Deposit : Baa2/P-2- Baseline Credit Assessment : baa2- Adjusted Baseline Credit Assessment : baa2

- Counterparty Risk Assessment : Baa1(cr)/P-2(cr)

National Rating : id AAA,Stable Outlook

- Long Term Foreign Currency : BBB- Outlook : Stable- Long Term Local Currency : BBB+- Outlook : Stable

Negative

BB-

81

STOCK PERFORMANCE

Shareholders Composition BBRI Market Cap Rank in South East Asia Bank

82

BBRI OVER THE YEARS – Stock-Related Corporate Action

…Since IPO, BBRI has done stock split twice, buyback and long term benefit

program for employees…

IPO on November 10th

2003 using ticker BBRI

Management Stock Option Program (MSOP)

2004 - 2010

First time stock split 1:2 on Januari 11th 2011

2011

2015-2016Stock buyback

2015 - 2016

Stock split 1: 5 on November 10th 2017

2017

Employee Stock Option Program (ESOP)

2019

Employee Stock Allocation (ESA) Program

2020

2003

Stock buyback

2020

PT BANK RAKYAT INDONESIA (Persero) Tbk.Investor Relations7th floor BRI II BuildingJl. Jenderal Sudirman No. 44-46 Jakarta 10210Indonesia

Phone : 62 21 5752006/09, 5751952/79Fax : 62 21 5752010Website : www.ir-bri.com Email : [email protected]

Disclaimer ; this report has been prepared by PT bank Rakyat Indonesia (Persero) Tbk (Bank BRI) independently and is circulated for the purpose of general information only. It is not intended to the specific person who may receive this report.The information in this report has been obtained from sources which we deem reliable. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this reportconstitute our judgment as of this date and are subject to change without prior notice. We disclaim any responsibility or liability without prior notice of Bank BRI and/or their respective employees and/or agents whatsoever arising which maybe brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this report and neither Bank BRI and/or its affiliated companies and/or their respective employees and/or agentsaccepts liability for any errors, omissions, negligent or otherwise. In this report and any inaccuracy herein or omission here from which might otherwise arise

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