BBTN
Contact our analyst Avanza
11.42% Upside. BUY
17th March 2026
Price Rp1270
Target price Rp1415
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×.
