Company Update / Banks / IJ / Click here for full PDF version
Author(s): Jovent Muliadi ;Axel Azriel
- FY25 net profit of Rp7.6tr (+8% yoy/+9% qoq) came in-line. PPOP grew +11% yoy from solid NII/non-II of +10%/+25% yoy.
- NIM fell slightly (-5bp yoy) though CoF has improved on qoq basis. Loan growth was solid (+14% yoy) from rising gold business (+79% yoy).
- LAR rose to 9.2% in 4Q25 vs. 6.8% in 3Q25 amid Sumatra flooding impact. Maintain Buy rating and upgrade our TP to Rp2,900 based on 2.2x P/B.
4Q25 results: in-line from solid NII/non-II
posted a net profit of Rp7.6tr in FY25 (+8% yoy/+9% qoq in 4Q25), in-line at 101/100% of ours/consensus FY25F. PPOP grew +11% yoy on the back of robust NII (+10% yoy) and non-II (+25% yoy). Opex grew +16% yoy, translating to CIR of 52% (vs. 51% in 3Q25/4Q24). Provisions rose +24% yoy but eased -8% qoq, bringing CoC to 0.8% (+1bp yoy/-2bp qoq), in-line with guidance of <1.0%. maintain its CoC guidance at <1.0% in FY26F.
Slight dip in NIM though CoF has improved on qoq basis
NIM slipped slightly by -7bp yoy to 5.6% in FY25 (-5bp qoq), in-line with guidance of 5.5-5.9%. This was driven by higher CoF (+9bp yoy) despite rising loan yield (+10bp yoy). However, on qoq basis, CoF has improved by -34bp in 4Q25. LDR stood lower at 84% (vs. 86%/85% in 3Q25/4Q24) as deposit grew at +16% yoy, driven by (+19% yoy, from CA by +27% yoy and SA by +16% yoy) vs. TD of +12% yoy. It guides FY26F NIM at >5.5%.
Gold business continues to drive loan growth
Loan growth was solid at +14% yoy (+6% qoq), in-line with guidance of 14-16%. Expansion was supported by consumer (+16% yoy) and wholesale (+18% yoy). Within consumer, gold business stood out at +79% yoy. It plans to increase the gold business share to 15-20% in the medium term (vs. 7%/5% in FY25/FY24), supported by its accretive yield of 13% (above bank-wide loan yield of 9%) and low CoC. It guides similar loan growth of 14-16% for FY26F.
Notable increase in LAR from flooding impact
LAR rose to 9.2% in 4Q25 (6.8%/7.3% in 3Q25/4Q24), sourced primarily from higher restructured loans within retail and consumer segment amid Sumatra's flooding impact (totalling Rp9.8tn or 3.1%/24% of total/Aceh portfolio). Concurrently, LAR coverage fell to 37% (vs. 52%/51% in 3Q25/4Q24). However, NPL remained relatively stable at 1.8% (1.8%/1.9% in 3Q25/4Q24).
Maintain Buy from solid loan growth and attractive gold business
We maintain Buy on and upgrade our FY26-27F EPS by 2-4%, this also resulted in higher TP of Rp2,900 based on 2.2x P/B underpinned by solid gold business and improving CoF. It currently trades at FY26F 1.8x P/B and 12.7x P/E vs. avg. of 2.2x P/B and 15.9x P/E. Risk is worsening asset quality from its Sumatra's restructured portfolio.
Sumber : IPS