BBTN - Solid 1Q25 PPoP growth; PATMI came in above

KBVS update
Monday, 28 April 2025

BBTN - Solid 1Q25 PPoP growth; PATMI came in above
(Maintain BUY; TP: IDR1,530)

* We like BBTN turnaround earnings growth. Top line and PPoP grew solid by 17.1% yoy and 17.3% yoy. Despite high provision (49.0% yoy) has made PATMI grew by 5.1% yoy, 1Q25 earnings of IDR 904bn was came in above consensus and our ‘25F PATMI for BBTN at a run rate of 29.5%/30.9% vs 26.3%.

* Total loan grew by 5.5% yoy and we like the non-subsidized mortgage higher growth of 8.1% yoy vs subsidized segment of 7.6% yoy. The bank continues enjoying solid CASA growth (10.1% yoy) driven mainly by CA growth of 11.7% yoy).

* NIM expanded by 35bps, key risk metrics sound manageable with gross NPL stood at 3.3% vs 3.0% and CoC at 1.1% still within ‘25F range guidance (1.0-1.1%). 1H25 will play crucial role to witness clearer impact of global trade war, steady buying power pressures and prolonged uncertainty.

* The bank anticipates achieving total deposit growth within the 8-9% yoy range, while projecting loan growth to hover between 7-8% yoy. The CoC is expected to arrive within the 1.0-1.1% range, while the non performing loan is targeted to remain below the 3% threshold.

* Maintain BUY BBTN, GGM TP of IDR1,530 (0.5x ‘25F P/B), while currently trades at 0.3x 25F P/B, at its -2SD hist mean (below Covid-19 era of 0.4x).

Regards,
Akhmad Nurcahyadi - KBVS Research team