Indonesian Banking Sector Shows Mixed Performance by November 2025

State-Owned Banks Experience Profit Decline

The financial performance of Indonesian banks through November 2025 shows a mixed picture. State-owned banks (BUMN) such as PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI), PT Bank Mandiri (Persero) Tbk. (BMRI), and PT Bank Negara Indonesia (Persero) Tbk. (BBNI) recorded declining profits compared to the same period last year. BRI's profit fell by 9.12% YoY to Rp45.44 trillion, Mandiri's by 6.41% YoY to Rp44.14 trillion, and BNI's by 6.01% YoY to Rp18.62 trillion ¹

Factors Contributing to Decline

The decline in state-owned banks' profits can be attributed to three main factors: slowing core income, rising funding costs leading to compressed net interest margins, and increased loan loss provisions. According to Josua Pardede, Chief Economist at Bank Permata, these factors particularly affect BUMN banks due to their significant exposure to government priority segments such as micro, small, and medium enterprises (MSMEs) and credit programs like KUR (People's Business Credit), which naturally have higher operational costs and are more sensitive to economic conditions ¹

Private Banks Show Resilience and Growth

In contrast, several private banks demonstrated robust performance with notable profit growth. PT Bank Tabungan Negara (Persero) Tbk. (BBTN) led with an impressive 21.10% YoY growth, achieving a profit of Rp2.91 trillion. Other banks that recorded profit growth include PT Bank Syariah Indonesia Tbk. (BRIS) at 8.20% YoY, PT Bank Danamon Indonesia Tbk. (BDMN) at 7.61% YoY, and PT Bank Permata Tbk. (BNLI) at 12.72% YoY ¹

Drivers of Private Banks' Success

The growth in private banks' profits can be attributed to several factors: efficient funding structures, strong fee-based income growth, and better credit quality leading to lower loan loss provisions. For instance, banks with a higher proportion of low-cost deposits like current accounts and savings were able to maintain stronger net interest margins. Additionally, improved risk management practices and a focus on less risky segments contributed to their success ¹

Outlook for Remaining Months

For the state-owned banks, while their profit growth may be more moderate for the full year 2025, they are still expected to maintain substantial profitability. The remaining months' performance will depend on whether funding costs stabilize and if loan loss provisions can be managed prudently. For private banks, their growth momentum is likely to continue if they maintain their focus on operational efficiency and risk management.