BBTN - Inline 9M25 earnings, expect 26F to continue

KBVS update
Friday, 24 Oct 2025

BBTN - Inline 9M25 earnings, expect 26F to continue
(Maintain BUY; TP: IDR1,530)

* BBTN delivered a strong beat in 9M25 amid the uncertainty sector environment, net income (+10.6% yoy), arriving in line with our ‘25F forecast and cons. expectation (78.8%/75.2%) and above (3.22%) our 3Q25F earnings for BBTN. Loan growth hit a healthy 7.0% yoy growth (guidance: 7-9% yoy), while TPF grew strong (16.0% yoy), with CASA at 7.3% yoy.

* NIM expanding 101bps to a solid 3.9% vs 2.9%. AQ continue manageable, with gross NPL at 3.4% vs 3.3% and improving CoC to 1.6% in 9M25 vs 2.0% in the 6M25. RoE came in 40bps yoy higher. BBTN continue recorded a digital leap key performance, with financial transactions witnessed a massive 96.0% yoy surge, jumping to 1,535.3 of transaction, with 19.6% yoy transaction value to IDR 71.9tn

* We start rolled over our valuation to ‘26F. The bank is poised for continued growth, anticipating better overall loan growth from subsidized and non-subsidized mortgages. NIM expansion is expected to continue, buoyed by a lower interest rate environment, which should pointedly *lift BBTN’s valuation and market confidence. *

* Maintain BUY, GGM-based TP of IDR1,530 (0.5x ‘25F P/B), while currently trades at its -1SD of 0.4x 25F P/B.

Regards,
Akhmad Nurcahyadi - KBVS Research team