BBTN‘s interest income grew 23.5% YoY to IDR 18.5 trillion in 6M25. Interest expenses increased 2.3% YoY to IDR 9.15 trillion, with a Pre-Provision Operating Profit (PPOP) of IDR 5.8 trillion (+100.6% YoY) in 6M25.

Therefore, when interest rates are lowered, BBTN‘s performance becomes more optimal in 6M25. BBTN’s Net Interest Margin (NIM) grew 140 bps to 4.4% in 6M25.

BBTN revised its 2025F loan growth target upwards to 7%-9% from the previous 7-8%. BBTN’s total loan grew 6.8% YoY to Rp376 trillion in 6M25, supported by mortgage growth of 7.5% YoY in 6M25.

BBTN‘s liquidity improved in 6M25, with the Loan to Deposit Ratio (LDR) decreasing 380 bps YoY to 92.6% in 6M25. Maintained liquidity conditions can improve BBTN’s ability to disburse loan.

Current Account Savings Account (CASA) grew 5.6% YoY to IDR 199.7 trillion in 6M25. Furthermore, BBTN booked total Third Party Funds of IDR 406 trillion (+11.2% YoY) in 6M25.The significant growth in CASA represents an effort to mitigate the negative impact of high interest rates on the cost of funds.

Maintained liquidity and the potential recovery of the property sector in 2H25, we estimate BBTN can record interest income growth of 9% YoY for 2025F.

With BBTN‘s performance in line with our estimates, we maintain projection from the previous BBTN Company Update, with a fair value of Rp 1,250.

By PHINTRACO SEKURITAS | Research
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