Bank Syariah Indonesia (BRIS) and Bank Rakyat Indonesia (BRI) are likely to be the most exposed to flood-related risks in Sumatra, Indonesia, according to estimates from UOB Kay Hian (UOBKH).
UOBKH analyst Posmarito Pakpahan said BRIS and BRI have the greatest exposure to the affected regions, while Bank Mandiri’s exposure is comparatively smaller.
“BRIS has the highest proportional exposure, as Aceh’s fully Shariah-compliant banking market positions it as the leading lender across retail, micro, and SME segments,” Pakpahan wrote in a 10 December 2025 report.
Meanwhile, BRI holds the largest exposure in absolute terms due to its broad micro and ultra-micro lending presence across rural areas of Sumatra.
Bank Negara Malaysia and Bank Central Asia are expected to see minimal direct impact, as their loan books are primarily concentrated in corporate lending and Java-based portfolios.
Overall exposure across the banking sector is estimated at around 5%, with risks considered manageable, Pakpahan said. Total loan exposure to the three affected provinces accounts for 4.9% of system-wide loans, while deposit exposure is lower at 4.6%.
“As flood damage is largely confined to a limited number of districts, the actual credit exposure to the hardest-hit areas is well below headline figures. As a result, the floods are unlikely to trigger any significant liquidity stress across the banking system,” Pakpahan said.
Click here for more on Banking
