BNGA
Contact our analyst Achmadi
18% upside. Buy.
15th August, 2025
Price Rp 1,715
Target price Rp2,030
Stagnation in Profitability
In 1H-2025, BNGA’s profit attributable to the parent entity rose just 1.41% YoY, reflecting stagnant profitability. Net interest income declined 0.48% YoY due to a higher cost of funds, as interest and shariah expenses surged 11.01% YoY, offsetting 4.56% growth in interest and shariah income. This pressure reduced the NIM to 3.96% (down 25 bps YoY) in 1H-2025, and to 3.93% in Q2 alone—still within the bank’s 3.9%–4.2% internal target. On the positive side, other operating income (excluding interest) grew 6.21% YoY, driven by a 395.42% YoY jump in net gains from the sale of financial assets. We forecast FY-2025 profit attributable to reach IDR 7.63 trillion (+7.87% YoY) with NIM improving to 4.10%.
Loan Growth Within Target Range
As of June 2025, BNGA’s consolidated loans expanded 6.80% YoY, matching the 5%–7% target range. Corporate Banking grew the fastest at +9.43% YoY, followed by SME at +6.21%, Commercial at +5.21% YoY and Consumer at +4.69% YoY. The bank plans to tilt its portfolio further toward SME and Consumer segments to capture higher margins and risk-adjusted returns, mitigating a softer macro backdrop. We forecast loan growth of 5.04% YoY by end-2025.
CASA Ratio Remains Strong
The consolidated CASA ratio improved to 69% in June 2025 from 65.20% a year earlier, supported by +15.68% YoY growth in current accounts and +5.93% YoY growth in savings accounts. Digital platforms such as OCTO Mobile and OCTO Clicks played a key role, with the share of digital savings account openings rising from 49.3% to 61.9%. We project a year-end CASA ratio of 69.86%.
Asset Quality Holds Firm
BNGA’s gross NPL ratio improved by 22 bps YoY to 1.88% in June 2025, though up slightly by 3 bps QoQ. The SML ratio improved to 4.4% from 4.5% in March 2024, supported by prudent credit risk management. We expect the gross NPL ratio to decline to 1.70% by year-end.
Valuation: 18% Upside, Buy.
Our multi-stage DDM-based target price is IDR 2,030, implying 0.89x PBV and a 18% upside. We maintain our Buy recommendation.
In 1H-2025, BNGA’s profit attributable to the parent entity rose just 1.41% YoY, reflecting stagnant profitability. Net interest income declined 0.48% YoY due to a higher cost of funds, as interest and shariah expenses surged 11.01% YoY, offsetting 4.56% growth in interest and shariah income. This pressure reduced the NIM to 3.96% (down 25 bps YoY) in 1H-2025, and to 3.93% in Q2 alone—still within the bank’s 3.9%–4.2% internal target. On the positive side, other operating income (excluding interest) grew 6.21% YoY, driven by a 395.42% YoY jump in net gains from the sale of financial assets. We forecast FY-2025 profit attributable to reach IDR 7.63 trillion (+7.87% YoY) with NIM improving to 4.10%.
Loan Growth Within Target Range
As of June 2025, BNGA’s consolidated loans expanded 6.80% YoY, matching the 5%–7% target range. Corporate Banking grew the fastest at +9.43% YoY, followed by SME at +6.21%, Commercial at +5.21% YoY and Consumer at +4.69% YoY. The bank plans to tilt its portfolio further toward SME and Consumer segments to capture higher margins and risk-adjusted returns, mitigating a softer macro backdrop. We forecast loan growth of 5.04% YoY by end-2025.
CASA Ratio Remains Strong
The consolidated CASA ratio improved to 69% in June 2025 from 65.20% a year earlier, supported by +15.68% YoY growth in current accounts and +5.93% YoY growth in savings accounts. Digital platforms such as OCTO Mobile and OCTO Clicks played a key role, with the share of digital savings account openings rising from 49.3% to 61.9%. We project a year-end CASA ratio of 69.86%.
Asset Quality Holds Firm
BNGA’s gross NPL ratio improved by 22 bps YoY to 1.88% in June 2025, though up slightly by 3 bps QoQ. The SML ratio improved to 4.4% from 4.5% in March 2024, supported by prudent credit risk management. We expect the gross NPL ratio to decline to 1.70% by year-end.
Valuation: 18% Upside, Buy.
Our multi-stage DDM-based target price is IDR 2,030, implying 0.89x PBV and a 18% upside. We maintain our Buy recommendation.
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