BBTN - Another solid 8M25 earnings; above

KBVS update
Monday, 6 Oct 2025

BBTN: Another solid 8M25 earnings; above
(Maintain BUY; TP: IDR1,530)

* BBTN delivered a solid 8M25 performance, with bank-only PATMI growing 10.5% yoy to IDR 1.99tn, significantly exceeding both our and consensus full-year expectations (68.3%/65.1% run-rate).

* Loan growth accelerated to 5.7% yoy (IDR 375.38tn). Total TPF grew 7.2% yoy. CASA strengthened to 50.7% (+228bps yoy), signaling effective deposit mix enhancement and bolstering future profitability.  NIM expanded 22bps to 3.8%, and CIR improved 164bps to 52.4%. The CoC at 1.89% remains within guidance.

* Softer TPF competition and the new subsidy housing salary eligibility are expected to be key drivers for the upcoming earnings and loan demand. Foreign ownership also remains resilient. The stock has been a market champion, delivering the only positive ytd return (+6.6%) among covered banks and a +30.6% gain since our first report in early 2025.

* Maintain BUY GGM-based fair value of IDR 1,530 (pegged at 0.4x 2025F P/B), while the stock currently trades at an attractive 0.4x P/B (at its -1SD).

Regards,
Akhmad Nurcahyadi - KBVS Research team