Gold to hard-carry Bank Syariah Indonesia’s margins

But overall growth will still be lower amidst industry-wide signs of asset quality deterioration.

A booming gold business may buoy Bank Syariah Indonesia’s (BRIS) margins as other consumer loan segments dip.

BRIS is expected to take a more conservative approach to its consumer loan segments except for its gold business, according to an analysis by CGS International.

Signs of asset quality deterioration in the industry may drive this strategy, the investment house said in a 2 September 2025 report.

Gold contributed to 11.8% of BRIS’ consumer loans as of July 2025, up from 8.4% in December. This is an 82% year-on-year growth, to IDR17.3t.

Higher-than-expected growth in the gold business could provide upside to the bank’s margins, CGS International said.

“We estimate every 1% increase in gold business contribution to consumer loans would positively affect loan yield by 4 basis points (bp),” said CGS International analyst Handy Noverdanius, Owen Tjandra, and Elizabeth Noviana.

CGS International has overall assumed slightly lower loan growth for BRIS in FY2025 and FY2026, at 14% and 14%, from the previous 17% and 15% expected growths.