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BBTN FY2025
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Avanza Bagus Aditya
BUY
Last Price
IDR 1,270
Target Price
IDR 1,415
Upside
11.42%
Investment Considerations
Strong Profit Growth
In 2025, BBTN reported a solid performance, with net profit rising 16.42% YoY to IDR 3.50 trillion, from IDR 3.01 trillion in 2024. This growth was driven by a 58.52% YoY increase in net interest and sharia income, supported by a 32.02% YoY rise in interest and sharia income, while interest and sharia expenses increased only 0.41% YoY, indicating a more efficient funding mix. As a result, BBTN’s NIM expanded by 133 bps YoY to 4.19%, reflecting improved asset profitability. Looking ahead, we expect net profit to continue growing by around 15.58% YoY, with NIM moderating slightly to approximately 4.11% by end-2026.
Solid Loans Growth Across Housing and Non-Housing Segments
BBTN’s consolidated loans and financing portfolio reached IDR 400.58 trillion as of December 2025, representing 11.90% YoY growth, supported by expansion in both housing (+7.46% YoY) and non-housing (+37.81% YoY) segments. Within the housing segment, subsidized mortgages led growth (+9.98% YoY), followed by non-subsidized mortgages (+6.69% YoY), while construction loans declined 12.07% YoY, reflecting portfolio adjustments toward landed housing and transit-oriented residential projects. In the non-housing segment, corporate loans surged 70.69% YoY, while commercial loans declined 8.86% YoY, indicating a strategic shift toward higher-growth SME-related financing within the housing ecosystem. We expect total loans and financing to grow by around 8.46% YoY by end-2026, supported by continued expansion in subsidized mortgages amid a relatively accommodative monetary environment.
Improved Asset Quality
BBTN’s consolidated gross NPL ratio declined to 3.08% as of December 2025, improving by 8 bps YoY. In line with this improvement, the NPL coverage ratio increased by 856 bps YoY to 123.93%, reflecting stronger provisioning and better collection performance. The improvement indicates increasingly solid asset quality, supported by tighter risk management and more effective recovery efforts. We estimate the gross NPL ratio to decline further to around 2.97%, while the coverage ratio is expected to increase to 137.40% by end-2026, in line with management guidance.
Strategic Partnerships to Expand the Business Ecosystem
In November 2025, BBTN established a strategic partnership with PT Pembangunan Jaya Ancol Tbk and PT Taman Impian Jaya Ancol to provide banking services. This collaboration is expected to support business expansion by leveraging a broader ecosystem. In addition, BBTN partnered with HKBP to provide banking services for its administrators and congregants, giving access to a potential market of approximately 6.5 million members, which could support CASA growth going forward.
Valuation: 11.42% Upside (BUY)
We maintain our BUY recommendation with a revised 12-month target price of IDR 1,415, implying 11.42% upside. Our valuation is based on an updated Dividend Discount Model (DDM), incorporating FY2025 performance and forward macroeconomic assumptions, resulting in an implied PBV of 0.50×.
Disclaimer:
PT Binaartha Sekuritas has compiled this report in good faith, using information believed to be reliable. PT Binaartha Sekuritas and its analyst take no responsibility for the accuracy of the information contained in this report. This report has been produced for distribution to clients of PT Binaartha Sekuritas only. This report is not an invitation to buy or sell any security. PT Binaartha Sekuritas may have used the information in this report prior to publication. The company or its clients may have positions in or may from time to time buy or sell the securities mentioned in this report or other related securities.