BBCA - Net profit reaches IDR43.4 tn by 9M25

BBCA - Net profit reaches IDR43.4 tn by 9M25 Bank Central Asia (BBCA) recorded a net profit of IDR43.4 tn for the period January-September 2025. This achievement increased by 5.7% yoy. Looking at its financial statements from Monday (October 20, 2025), BCA is still struggling with persistently high provisioning expenses. This is because the burden BCA needs to bear for that item increased by 60.1% yoy to IDR3.5 tn. The increase in the provision expense also led to an increase in the company's expenses. Where, BCA's total assets for the first nine months of 2025 increased by 5% yoy to IDR28 tn. On the other hand, one of the drivers of this profit increase was net interest income, which reached IDR63.9 tn. For comparison, during the same period last year, BCA's net interest income was only IDR60.7 tn. BBCA's non-interest income also increased by 12.4% yoy to IDR21.4 tn in September 2025. The largest contribution came from commission-based income, which reached IDR15.1 tn. From the perspective of its intermediary function, BCA's loan portfolio in September 2025 reached IDR944 tn. In the same period the previous year, the loan portfolio of Indonesia's largest private bank was only IDR877 tn. Meanwhile, BCA was also able to raise Third Party Funds (DPK) in September 2025, reaching IDR1,204 tn. This figure is also higher compared to the September 2025 period, which was IDR1,125 tn. Comment : BBCA's financial performance through Q3 2025 demonstrates strong fundamental. Robust top-line was driven by effective growth in both Net Interest Income (from increased lending) and Non-Interest Income (from high-volume transaction-based fees). Strong growth in both its loan portfolio and Third-Party Funds, indicating successful intermediation and stable funding. However, the bank's profitability is being moderated by a significant increase in provisioning expenses. While the 5.7% net profit growth is positive, the 60.1% jump in provisions suggests BCA is preparing for potential future asset quality challenges, or is simply adopting a more prudent, front-loaded approach to reserve building, which is necessary but eats into the bottom line. In all the 9M25 earnings are remain inline, establishing a run-rate of 76.2%/74.9% compared to average of 73.6%. Maintain BUY, GGM-based TP of IDR11,080 (4.8x ‘25F P/B).