BBTN - Inline 1Q26 earnings

KBVS update
Thursday, 16 April 2026

BBTN -  Inline 1Q26 earnings
(Maintain BUY; TP: IDR1,530)

* BBTN’s 1Q26 earnings arrive in line with our and the street's expectations (30.4%/29.6% vs. 27.4%). The robust growth (22.6% YoY) was triggered by a sharp drop in funding cost and provisions that stayed at a low level.

* Total loan growth (10.9% YoY) came in around 30 bps higher than ‘26F guidance, while total TPF grew by 9.9% YoY and CASA noted 7.8% YoY higher. 1Q26 NIM was flattish, yet risk metrics saw a significant improvement.

* Bale by BTN will play a vital role in low-cost funding growth. A funding switch coupled with loan processes and an origination enhancement strategy will become a solid cushion and meaningful support for ‘26F earnings growth.

* Maintain BUY, GGM-based TP of IDR1,530 (0.6x ‘26F P/B), currently 0.5x 26F P/B, slightly above -1SD of 0.4x 26F P/B.

Regards,
Akhmad Nurcahyadi - KBVS Research team