FROM EQUITY RESEARCH DESK

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RESEARCH COMMENTARY

BTPS (Buy, TP: Rp1,400) - Bank-only: Apr26 Results

Apr26 Insight:

  • Soft bottom line on lower NIM: BTPS booked net profit of Rp106bn in Apr26 (–12% mom, –5% yoy), as lower NIM and weaker PPOP offset the low CoC.
  • NIM continued to decline: NIM fell further to 21.8% (–100bps mom, –275bps yoy), driven by lower asset yields amid the continued impact from restructured Sumatera loans, despite improving CoF.
  • Weak PPOP amid lower income and higher CIR: PPOP declined 6% mom and 14% yoy as NII dropped 3% yoy while opex remained elevated (+7% yoy), pushing CIR higher to 52.1% (+549bps yoy).
  • CoC remained manageable: CoC rose slightly to 5.5% (+27bps mom) but still improved significantly from 8.4% in Apr25, supported by lower provision expenses (–32% yoy).
  • Loan growth remained modest: Financing grew 1% mom and 5% yoy to Rp10.7tr, while deposits increased 8% yoy.
  • CASA ratio improved: CASA ratio increased to 28.1% (+134bps mom, +72bps yoy), supported by better savings growth and lower reliance on expensive funding.

 

4M26 Insight:

  • Flat bottom line growth: BTPS booked net profit of Rp424bn in 4M26, relatively flat yoy, forming 31–32% of FY26F estimates, slightly below last year run-rate of 35%.
  • Lower NIM continued to pressure earnings: NIM declined to 21.9% (–268bps yoy) as lower earning asset yields offset the 56bps improvement in CoF.
  • Higher CIR amid softer revenue: CIR rose sharply to 52.4% (+441bps yoy) as weaker NII (–3% yoy) and 5% higher opex pressured profitability.
  • Improving CoC: CoC improved materially to 5.3% (–316bps yoy), supported by lower provision, inline with the lower write-off ratio.
  • Liquidity remained ample: Financing grew 5% yoy while deposits rose 8% yoy, resulting in a lower LDR of 87.6% compared to 89.8% in 4M25.

 

Summary:

  • Overall performance: We view BTPS’s Apr26 results as Neutral, as lower CoC and improving funding costs were offset by continued pressure on NIM and elevated CIR. While asset quality trends remain supportive, earnings recovery will likely depend on normalization in yields and stronger financing growth going forward. (Victor Stefano & Naura Reyhan Muchlis – BRIDS)

MARKET NEWS

MACROECONOMY

Japan Apr26 Inflation Eases to 1.4% yoy

Japan’s inflation continued to ease in April 2026, with headline CPI slowing to 1.4% yoy from 1.5% previously, while core inflation fell to 1.4% from 1.8%, marking the lowest level since March 2022 and remaining below the Bank of Japan’s 2% target for a third straight month. Food inflation moderated to 3.5%, the slowest pace in 18 months, largely due to easing rice prices. Meanwhile, core-core inflation, which excludes fresh food and energy, softened to 1.9%, indicating weaker demand-driven price pressures. Although government fuel and education subsidies helped offset inflationary pressures, rising oil prices linked to Middle East tensions could accelerate price growth ahead and keep the BoJ cautious on further rate hikes. (Reuters)

 

SECTOR

Commodity Price Daily Update May 22, 2026

CORPORATE

BFIN Announces Rp1.03tr Dividend Distribution

BFIN will distribute Rp1.03tr in dividends, representing 65.5% of its 2025 net profit of Rp1.5tr. Shareholders will receive a total dividend of Rp70 per share, including an interim dividend of Rp35 per share paid in December 2025 and a final dividend of Rp35 per share to be paid on June 18, 2026. (Emiten News)

 

INDY Declares 2025 Dividend Payout

INDY approved a dividend distribution of USD3.01mn, or around Rp53.29bn, equal to 50% of its 2025 net profit. Shareholders will receive Rp10.25 per share, implying a dividend yield of about 0.42% based on the stock’s closing price on May 22, 2026. The dividend schedule includes a cum-dividend date on June 2, 2026, and payment on June 19, 2026, while the remaining profit will be retained to support the company’s financial position. (Emiten News)

 

KIJA Subsidiary Secures Rp1.2tr Loan Facility from BBRI

A subsidiary of KIJA, PT Kawasan Industri Kendal (KIK), secured a Rp1.2tr financing facility from BBRI to support the expansion of Kendal Industrial Park. The agreement, signed on 21 May 2026, is structured as a non-revolving term loan with a maximum tenor of 10 years and an availability period of 24 months. (Bisnis)

 

NCKL Plans Rp1tr Share Buyback

NCKL plans to conduct a Rp1tr share buyback over the next 12 months pending shareholder approval at its annual general meeting on June 30, 2026. The company said the buyback reflects management’s view that the current share price does not fully represent the company’s strong fundamentals and performance. (Emiten News)

 

MEDC Signs US$1.3bn Gas Sales Agreement from Sakakemang Block

MEDC strengthened its commitment to supporting domestic energy supply through several gas commercialization agreements signed during the Indonesia Petroleum Association Convention and Exhibition. For the Sakakemang Block, Medco E&P Sakakemang B.V. signed a gas sales framework agreement with PT Perusahaan Gas Negara Tbk and PT Pertamina Patra Niaga covering total gas sales volume of 159 TBTU for the 2027–2037 period, with an estimated transaction value of around US$1.296bn. (Kontan)

 

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