BBRI - Inline 5M26 Earnings; Sell-Off Shaped Fundamental Disconnects

KBVS Update
Thursday, 2 July 2026

BBRI – Inline 5M26 Earnings; Sell-Off Shaped Fundamental Disconnects
(Maintain BUY; TP: IDR4,010)

* 5M26 bank-only earnings (+9.5% YoY), tracking in line with our (34.4%) and cons. (33.9%) ‘26F. Robust loan growth (+12.2% YoY) beating ‘26F guidance. NIM remained flattish (-10 bps), while CoC improved to 3.3%, keeping it close to ‘26F expectation (2.9%–3.2%).

* Inline 5M26 secure a resilient 1H26F earnings floor. BI rate hikes offer room for loan yield repricing. Massive sell-off, has caused valuation to decouple from its fundamental. Our GGM stress test, which revealed a floor price of IDR2,670, affirmed a profound undervaluation near the YTD26 high-low of IDR2,590.

* Maintain BUY with a GGM-based TP of IDR 4,010 (1.8x ’26F P/B). The stock is currently trading at a significant discount (1.2x FY26F P/B), below -2SD level of 1.5x.

Regards,
Akhmad Nurcahyadi - KBVS Research team