Company Update / Banks / IJ / Click here for full PDF version
Author(s): Jovent Muliadi ;Axel Azriel
- 1Q26 net profit of Rp1.1tr (+23% yoy/-8% qoq) came above. PPOP grew +10% yoy from robust NII while CoC of 0.9% was below guidance.
- NIM stood flat yoy at 3.6% while CoF improved substantially by -105bp yoy. Loan grew +10% yoy from non-housing at +37% yoy.
- Both NPL/LAR improved to 3.1%/19.6% vs. 3.3%/20.3% in 1Q25. We maintain Buy from strong results along with better margin/coc outlook.
1Q26 results: above from strong NII while CoC has normalized
's 1Q26 net profit of Rp1.1tr (+23% yoy/-8% qoq) came in-line with ours but above consensus FY26F at 27/30%. PPOP grew +10% yoy (-29% qoq) amid strong NII (+13% yoy - mostly from lower interest expenses at -16% yoy) and modest opex (+7% yoy). Provision fell -8% yoy (-47% qoq), bringing CoC to 0.9% (-12bp yoy/-68bp qoq), slightly behind FY26F guidance of 1.0-1.2%.
Substantial CoF improvement from low-cost strategy
Overall NIM stood flat yoy at 3.6% in 1Q26 (-60bp qoq). CoF improved substantially by -105bp yoy, which offset the decline in asset yield at -83bp yoy. The lower CoF sourced from its strategy to increase middle institution segment share to 36% (from 28% in 1Q25) and lowering the large corporate funding. Note that middle institution's CoF stood lower at 3.2% vs. large institution's CoF of 4.5%. LDR stood at 95% (vs. 92%/94% in 4Q25/1Q25). Deposits grew +10% yoy from rising TD at +12% yoy while rose +8% yoy (CA at +11% yoy while SA declined -4% yoy).
Robust loan growth underpinned by rising non-housing segment
Loan growth of +10% yoy (flat qoq) was in-line with its guidance of 8-10%. It was still led by non-housing at +37% yoy, sourced from corporate (+52% yoy) and consumer (+14% yoy). This was in-line with strategy to increase the portion of non-housing to 30% by FY30F (vs. 18%/14% in 1Q26/1Q25), primarily from high-yield corporate & consumer segments within the housing ecosystem. Meanwhile, housing loan grew modest at +6% yoy, with subsidized mortgages up +8% yoy vs. non-subsidized at +5% yoy.
Improving NPL/LAR amid better mortgage collection
NPL improved to 3.1% in 1Q26 (3.3% in 1Q25), along with lower LAR at 19.6% (20.3% in 1Q25), sourced from better mortgage collection amid its new regional cluster & loan factory strategy. Both NPL and LAR coverage also increased to 124%/20% in 1Q26 vs. 105%/17% in 1Q25.
Maintain Buy from strong results and CoF/asset quality improvement
We maintain Buy on amid strong set of results and better margin/asset quality outlook. It currently trades at attractive valuation of0.5x FY26F P/B and 4.6x P/E vs. 10Y avg of 0.8x and 6.7x. Risk is slower loan growth & worsening asset quality.
Sumber : IPS