Banking - Bank credit grows 10.2% yoy in Jan 26

Banking - Bank credit grows 10.2% yoy in Jan 26 The disbursement of bank credit shows a positive trend at the beginning of 2026. According to Bank Indonesia (BI) records, the credit disbursed by banks in January 2026 reached IDR8,416.4 tn, growing by 10.2% yoy. This realization is higher compared to the growth of Dec25, which was 9.3% yoy. Quoted from Bank Indonesia's money supply data, based on the type of debtor, corporate credit grew by 15.2% yoy, an increase from 14.6% yoy in the previous month. Meanwhile, personal credit grew by 4.3% yoy, also up from Dec 25 which was 3.1% yoy. From the usage side, Working Capital Loans in Jan26 grew by 4.8% yoy, higher than 4.4% yoy in the previous month. The growth of Working Capital Loans is mainly supported by the Electricity, Gas, and Clean Water sector as well as the construction sector. Investment Credit also recorded high growth of 21.9% yoy, an increase compared to 20.5% yoy in Dec 25. The increase mainly comes from the agriculture, livestock, forestry, fisheries, and construction sectors. On the consumption side, consumer credit grew by 7.2% yoy, up from 6.4% yoy in the previous month. The distribution of property credit also strengthened with a growth of 14.1% yoy, higher than the previous month at 13.1% yoy. However, credit to MSMEs is still contracting by 0.5% yoy, although it has slightly improved from the 0.3% yoy contraction in the previous month. (Source : Kontan) Comment : The 10.2% yoy total growth places credit expansion comfortably within Bank Indonesia’s 2026 target range of 8–12%. However, the contraction in MSME Working Capital (-4.8%) suggests that small businesses are "starving" for cash to maintain daily operations. In all, we like the Jan26 loan growth which arrive above our ‘26F loan growth range for the industry of 8-10% yoy. Three main story: (1) stronger loan growth (2) more materialized softer CoF & slower-than-anticipated loan yield adjustment (3) better and stronger TPF on softer tight liquidity environment. Maintain our OW stance for the sector with BBCA, BMRI and BRIS as our picks.