Banking - TPF from individual customers continue to dwindle

Banking - TPF from individual customers continue to dwindle Third-party funds or individual DPK in banking appear to be increasingly diminishing.Based on data from Bank Indonesia (BI) in February 2025, the third-party funds (DPK) in banking reached IDR8,612.5 tn, growing by 5.1% yoy. Based on data from Bank Indonesia (BI) in February 2025, the banking third-party funds (DPK) reached IDR8,612.5 tn, growing by 5.1% yoy. Based on customer categories, DPK from individual customers in February was only IDR3,998.7 tn, contracting by 1.8% yoy. Based on customer segments, the DPK from individual customers in February was only IDR3,998.7 tn or contracted by 1.8% yoy .This achievement appears to have decreased from the January position, where individual DPK reached IDR4,012.3 tn. (Source : Kontan) Comment : It's interesting to see the contrasting experiences of different banks amidst this trend of dwindling individual banking funds. The data from Bank Indonesia paints a clear picture: while overall third-party funds in banking are still growing, the portion coming from individual customers is shrinking. In conclusion, while the overall trend indicates a decrease in individual banking funds due to economic pressures and shifting investment preferences, some banks like Bank Mandiri and BTN are demonstrating resilience and achieving growth through strategic initiatives, particularly in the digital realm and by offering tailored products and incentives. The coming months will reveal whether these strategies can effectively counteract the broader trend. Maintain our overweight stance for the banking sector with BBCA, BMRI and BRIS (Syariah Banking landscape) as our picks