Company Update / Banks / IJ / Click here for full PDF version
Author(s): Jovent Muliadi ; Axel Azriel
- 1Q26 net profit of Rp15.5tr (+14% yoy) came in-line. PPOP grew +8% yoy from solid NII (+12% yoy) while CoC stood lower at 3.2% (-33bp yoy).
- NIM improved +20bp yoy on lower CoF (-65bp yoy). Loan grew +14% yoy while deposit rose +9% yoy from solid (+13% yoy).
- Slight uptick on LAR but coverage remained stable. We maintain Buy amid attractive valuation and on-track asset quality improvement.
1Q26 results: in-line with further normalization in CoC
posted net profit of Rp15.5tr in 1Q26 (+14% yoy/-2% qoq), in-line at 26% of ours/consensus FY26F - the double-digit growth was primarily due to low base effect in 1Q25 (-14% yoy). PPOP was decent at +8% yoy as solid NII (+12% yoy) was partially offset by soft non-II (+2% yoy - mainly due to lower recovery at -13% yoy) and higher opex (+11% yoy). Provisions fell -1% yoy (-4% qoq), translating to lower CoC of 3.2% (-33bp yoy/-15bp qoq) which stood at the upper range FY26F guidance of 2.9-3.2%.
NIM inched up from improvement in CoF
Consolidated NIM improved +20bp yoy to 7.9% in 1Q26 (+10bp qoq), slightly above guidance of 7.4-7.8%. This was driven by substantial improvement in CoF (-65bp yoy) which offset the decline in asset yield (-30bp yoy). Deposit grew +9% yoy, supported primarily by at +13% yoy with balanced growth across CA (+16% yoy) and SA (+11% yoy) while TD was soft at +2% yoy. Meanwhile, LDR stood at 89% (vs. 91%/86% in 4Q25/1Q25).
Solid loan growth underpinned by corporate and commercial
Loan growth of +14% yoy (+3% qoq) in 1Q26 was above the FY26F guidance of 7-9% amid Agrinas loan, excluding this loan growth stood at +10% yoy. Commercial led the growth at +60% yoy, followed by corporate (+42% yoy) and consumer (+8% yoy). Micro remained benign at +5% yoy, dragged by Kupedes (-17% yoy) as it still prioritizing asset quality over expansion.
Slight qoq uptick on LAR though NPL improved slightly
LAR rose slightly to 9.7% in 1Q26 vs. 9.6% in 4Q25 (11.1% in 1Q25), along with higher SML at 4.2% vs. 3.8% in 4Q25 (5.3% in 1Q25), largely coming from consumer especially mortgage. On a positive note, NPL improved to 3.0% vs. 3.1% in 4Q25 (3.0% in 1Q25), along with steady LAR coverage at 56% (vs. 57/54% in 4Q25/1Q25). Moreover, as of 1Q26, the 2023 Kupedes disbursement is only left with Rp29tr/1.8% of total loans with NPL of c.12%.
Maintain Buy on valuation and improvement in asset quality
We maintain Buy on amidst improvement in asset quality and attractive valuation as it trades at 1.4x FY26F P/B and 7.8x P/E (vs. 10Y avg. of 2.3x P/B and 14.3x P/E). Risk is NIM compression and asset quality deterioration.
Sumber : IPS