BBTN - Proven resilience; testing ‘26F stage for re-rating

KBVS update
Tuesday, 23 Dec 2025

BBTN - Proven resilience; testing ‘26F stage for re-rating
(Maintain BUY; TP: IDR1,530)

* BBTN's 11M25 performance was a standout, significantly beating consensus and our forecast through high-interest-rate environment resilience and manageable blended interest expense growth.

* The bank is the primary beneficiary of the government's 3mn unit housing program and the continued FLPP scheme. Expanded salary caps for subsidized segments have significantly broadened the addressable market.

* The transition of the UUS into a standalone entity is expected to unlock latent market valuation and capture high-growth Islamic financing demand.

* We like BBTN’s bullish ‘26F guidance. The bank expects 10–12% loan growth and double-digit earnings growth targets that are notably higher than our ‘26F conservative estimates for BBTN. Maintain BUY GGM FV of IDR 1,530 (0.4x 2026F P/B), while the stock currently trades at an attractive below -1SD.

Regards,
Akhmad Nurcahyadi - KBVS Research team