Bank Raya is burdened by a surge in non-performing loans, while Asuransi Ramayana continues to record profits, albeit with thinner margins. Differences in business models are key to understanding the financial conditions of both companies.
Financial reports often serve as the benchmark for assessing a company's success. However, large asset figures or high revenue do not always guarantee profit. This is evident from the performance of two companies listed on the Indonesia Stock Exchange (IDX): PT Bank Raya Indonesia Tbk (AGRO) and PT Asuransi Ramayana Tbk (ASRM).
Bank Raya booked a loss for the year of Rp498.61 billion throughout 2025, reversing from a profit of Rp50.89 billion the previous year. Meanwhile, Asuransi Ramayana still recorded a profit of Rp15.05 billion in the first quarter of 2025, though this was a decline compared to the Rp22.58 billion recorded in the same period the previous year.
These differences demonstrate that a company's financial condition cannot be judged solely by the size of its assets or profits. Business characteristics, revenue sources, cost structures, and the risks faced all determine the final outcome.
Moreover, banking and insurance have different business mechanisms. Banks derive revenue primarily from lending and fund management, while insurance companies rely on premiums, underwriting risk management, and investment returns.
Bank Raya: Trillions in Assets, Non-Performing Loans Pressuring Performance
Based on the financial report ending December 31, 2025, Bank Raya recorded total assets of approximately Rp13.09 trillion. Of that amount, the company's liabilities reached Rp10.08 trillion, while its equity was around Rp3.01 trillion.
As a banking institution, disbursed loans are a primary component of the company's assets. Bank Raya has gross loans of approximately Rp7.72 trillion. After deducting the allowance for impairment losses, its net loan value is around Rp6.27 trillion.
These loans are distributed to various customer segments, ranging from medium-sized enterprises to retail, micro, and consumer sectors. Lending is a source of revenue but also carries risk if the debtor is unable to meet their payment obligations.
In terms of funding, Bank Raya relies on public deposits, which reached approximately Rp9.54 trillion. These funds consist of demand deposits of Rp837.17 billion, savings of Rp2.37 trillion, and time deposits of Rp6.34 trillion.
The volume of these deposits highlights the importance of third-party funds in supporting the bank's operational activities. However, fund mobilization also incurs interest expenses that the company must bear.
Throughout 2025, Bank Raya earned interest income of approximately Rp1.19 trillion, with interest expenses of Rp493.92 billion. After accounting for both components, the company's net interest income reached Rp696.34 billion.
However, this net interest income was insufficient to cover all of the company's expenses. Bank Raya recorded an impairment loss provision expense of Rp553.61 billion, in addition to other operational expenses reaching Rp638.80 billion.
Pressure on the company's performance is also reflected in the non-performing loan ratio or non-performing loan (NPL) gross, which increased from 3.22 percent at the end of 2024 to 14.02 percent at the end of 2025.
The increase in this ratio indicates a deterioration in the quality of part of the loan portfolio. This condition requires the company to set aside larger loss provisions to anticipate potential defaults.
Thus, Bank Raya's losses cannot be viewed solely as a result of low revenue. Issues regarding credit quality, provisioning costs, and operational expenditures are significant factors influencing the company's financial results.
Asuransi Ramayana: Premiums Flowing, Profits Shrinking
A different situation is seen at PT Asuransi Ramayana Tbk and its subsidiaries. Based on the consolidated financial report as of March 31, 2025, the company recorded total assets of approximately Rp1.81 trillion, with liabilities of Rp1.11 trillion and equity of Rp703.37 billion.
Unlike banks, which have large obligations in the form of customer deposits, insurance companies bear obligations related to insurance contracts and claim payments.
At Asuransi Ramayana, insurance contract liabilities reached approximately Rp684.06 billion. Additionally, the company has commission payables of Rp73.98 billion, claim payables of Rp65.23 billion, and bank loans of Rp145 billion.
This structure illustrates how insurance companies must maintain a balance between premiums received and the obligation to pay claims to policyholders.
During the first three months of 2025, Asuransi Ramayana booked gross premiums of approximately Rp459.89 billion. After accounting for reinsurance premiums of about Rp70.43 billion and adjustments for unearned premiums, net premium income was recorded at Rp375.11 billion.
On the other hand, net claim expenses reached Rp198.29 billion. The company also bears various other costs related to underwriting activities, including commission expenses.
After accounting for these revenues and expenses, Asuransi Ramayana obtained an underwriting result of Rp88.42 billion. The company also recorded investment income of approximately Rp2.87 billion.
Overall, the profit for the year reached Rp15.05 billion. This figure is lower than the profit of Rp22.58 billion in the same period the previous year.
The decline in profit shows that although the company is still able to generate profit, its performance remains under pressure. Changes in premium income, claim expenses, operational costs, and investment returns can affect the amount of profit earned.
The company's financial condition can also be seen from the cash flow statement. Throughout the first quarter of 2025, cash receipts from premiums reached Rp378.41 billion, while claim payments reached Rp262.23 billion.
After accounting for other operational receipts and payments, including taxes, the company recorded net cash used for operating activities of Rp27.84 billion.
This figure shows that a company that still records a profit does not necessarily have positive operating cash flow. Profit and cash flow are two different measures, so both need to be considered simultaneously.
Different Industries, Different Financial Risks
The comparison between Bank Raya and Asuransi Ramayana shows that every type of business has different financial risks.
In banking activities, credit risk is a primary concern. When customers have difficulty repaying loans, the quality of the bank's assets can decline. The impact is seen in the increase in NPLs and the need to form credit loss provisions.
Banks also face interest rate risk, especially when changes in the cost of funds are not adequately offset by changes in interest income.
Meanwhile, insurance companies face more risks related to the frequency and magnitude of claims, the accuracy of premium pricing, and the effectiveness of transferring some risks to reinsurance companies.
If claim payments increase more than expected, underwriting results can be pressured. The same applies when premium income decreases or operational costs increase.
Therefore, reading the financial reports of both companies using the same metrics can lead to inaccurate conclusions.
For banks, the main focus can be directed at credit quality, fund mobilization, net interest income, and the adequacy of provisioning. Meanwhile, for insurance companies, analysis needs to pay attention to premium income, claim expenses, underwriting results, insurance contract liabilities, and investment management.
Large Assets Are No Guarantee of Profitability
One important lesson from both financial reports is that the size of assets is not always directly proportional to the level of profitability.
Bank Raya had total assets nearly seven times larger than Asuransi Ramayana on their respective reporting dates. However, in the period analyzed, Bank Raya experienced a loss, while Asuransi Ramayana still obtained a profit.
This difference does not necessarily indicate that one company is better than the other. Both operate in different industries, and the reports used also cover different timeframes.
Losses at a bank can be influenced by the size of provisioning and credit quality issues, while the profits of an insurance company can be influenced by the ability to manage premiums, claims, and operational costs.
Thus, financial analysis must pay attention to the relationship between assets, liabilities, income, expenses, and the risks inherent in business activities.
The income statement shows a company's ability to generate profit in a period. The statement of financial position describes assets, liabilities, and equity, while the cash flow statement shows the movement of money actually received or spent.
These three reports complement each other and should not be read separately.
Ultimately, the comparison between Bank Raya and Asuransi Ramayana illustrates that understanding financial reports is not just about reading profit or loss figures. More importantly, it is about knowing how a company runs its business, generates revenue, finances operational activities, and manages the risks it faces.
Editor's Note: This analysis uses Bank Raya's financial report for the full year ending December 31, 2025, and Asuransi Ramayana's consolidated financial report for the three months ending March 31, 2025. Because the periods covered are different, the profit and loss figures of the two companies cannot be used as a direct comparison to determine which company has better performance.
Source: Financial Report of PT Bank Raya Indonesia Tbk for the 2025 Fiscal Year and Consolidated Financial Report of PT Asuransi Ramayana Tbk for the First Quarter of 2025.
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