BBTN - Another solid monthly earnings; above

KBVS update
Monday, 8 Sept 2025

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

* BBTN's remarkable bank-only earnings growth is driven by a strong top line and lower blended interest expenses coupled with well-managed CIR and non-II growth. This solid performance has led to a significant beat in 7M25 earnings (+12.2% yoy), surpassing both our '25F and consensus expectations.

* Total loans and deposits grew by 6.0% yoy and 7.0% yoy, respectively. A strategic move towards lower-cost funding is evident.

* The key driver of our 2025 earnings has been a sooner-than-anticipated softening in funding costs. We anticipate this positive trend will continue. Looking ahead, we anticipate a potential rise in provisions expenses. However, we believe that a manageable CoC, cost-to-income ratio and consistent growth in non-interest income will be critical to keeping BBTN’s PPoP and PATMI on *solid growth path. *

* Despite an anticipated healthy stock price correction, the bank's strong earnings growth is expected to continue, supporting stock appreciation toward the fair intrinsic value. Maintain BUY with GGM-based TP of IDR1,530 (0.5x '25F P/B), while it is currently trading at its -1SD of 0.4x '25F P/B.

Regards,
Akhmad Nurcahyadi - KBVS Research team