BBTN - Solid 1H25 top and bottom-line growth; above

KBVS update
Tuesday, 2 Sept 2025

BBTN - Solid 1H25 top and bottom-line growth; above
(Maintain BUY; TP: IDR1,530)

* BBTN delivered a strong performance in 1H25, with net income +13.6% yoy, surpassing expectations. The bank's recorded healthy loan growth of +6.8% yoy (+6.2% yoy housing and 10.5% yoy in non-housing). Total TPF grew 11.2% yoy amid tight liquidity environment and tough competition.

* From a profitability standpoint, BBTN showed strong performance with +139bps in its NIM, reaching 4.4%. While the bank saw a slight rise in its gross NPL ratio to 3.3% and its CoC to 2.0%, these figures remain closed with the ‘25F guidance.

* BBTN's digital transformation is a powerful growth engine, with mobile financial transactions soaring 141.6% yoy. The bank is poised for continued growth, projecting a balanced expansion of both loans and deposits and a stable improvement in its NIM, in our view.

* Maintain BUY BBTN, GGM-based TP of IDR1,530 (0.5x ‘25F P/B), while currently trades at its -1SD of 0.4x 25F P/B.

Regards,
Akhmad Nurcahyadi - KBVS Research team