The Sharia Book Finally Stopped Shrinking - the Stock Didn't Notice
The FY2024 post closed on an unresolved question: whether the Sharia Business Unit's financing book, which had resumed shrinking in Q4 2024 after one quarter that looked like a floor, was a deliberate pivot to a smaller, securities-funded Sharia business or a wind-down that simply hadn't finished. Q1 2025 is the first quarter in this backfill's entire multi-year record where that book actually grew - from Rp57,442 million at 31 December 2024 to Rp62,114 million at 31 March 2025, up 8.1% quarter-over-quarter. It's a small number in absolute terms, and one quarter of growth after roughly two years of both an 80%+ collapse and a slower bleed isn't proof the wind-down is over. But it's the first data point in either direction, and the unit's net income nearly doubled alongside it - Rp27,706 million, up 96.3% YoY from Rp14,114 million a year earlier - so whatever's happening, it's happening with the unit's economics moving the same direction as its book size for the first time in a long while.
The market didn't reward any of this. Bank Jago's shares closed the quarter at Rp1,465, down 39.7% from Rp2,430 three months earlier - the steepest single-quarter decline this backfill has recorded since Q4 2022's 43.6% drop, and it happened in the same quarter net income grew 177.6% YoY and ROA held at 1.0% for a second consecutive quarter. See The Stock Just Had Its Worst Quarter in Over Two Years below for what that did to the valuation multiples.
The Prescription
Bank Jago should press its advantage now that it actually has one: ROA» has held at 1.0% for two straight quarters, cost-to-income» fell to 56% (from 63% the quarter before and 80% a year ago), and the Sharia unit's book grew for the first time in this entire backfill. That's a genuine efficiency and growth story, and management should be telling it more directly than a ratio table allows - a bank this early in a real profitability inflection has more to gain from explaining why than from letting the numbers speak for themselves while the stock does the opposite. What it should stop doing is letting cost of credit» keep drifting up unchecked while capital gets spent down: CAR» fell from 44.4% to 36.4% in a single quarter - down from 61.8% two years ago - as the loan book grew 14.4% QoQ, and cost of credit/average loan jumped to 4.6% from 3.0%. Growing into a shrinking capital cushion while credit costs rise is exactly the combination a reader would want addressed explicitly, not left to compound quietly for another quarter.
Key Financial Metrics
Q1 2025 vs. Q1 2024 - PT Bank Jago Tbk
FX: IDR 16,652 = USD 1 (31 March 2025 close, the period-end date; applied to both quarters below for consistency). The published statements for this period report the Bank on a standalone basis only - Bank Jago has no consolidated subsidiaries, consistent with every prior post in this backfill.
| Metric | Q1 2025 (IDR) | Q1 2025 (USD) | Q1 2024 (IDR) | YoY |
|---|---|---|---|---|
| Net interest and Sharia income ("Net Revenue" equivalent) | Rp591,476M | ~$35.52M | Rp344,933M | ✅ +71.5% |
| Impairment losses on financial assets ("Cost of Credit") | -Rp223,960M | -~$13.45M | -Rp52,808M | ⚠️ +324.2%, a fourth straight quarterly acceleration - see Beyond the Usual |
| Operating income | Rp77,069M | ~$4.63M | Rp27,856M | ✅ +176.7% |
| Income before income tax | Rp77,279M | ~$4.64M | Rp27,831M | ✅ +177.6% |
| Income tax expense (deferred) | -Rp17,007M | -~$1.02M | -Rp6,124M | +177.7%, an expense both quarters |
| Net income for the quarter | Rp60,272M | ~$3.62M | Rp21,707M | ✅ +177.6% |
| Earnings per share (full amount, basic) | Rp4.35 | ~$0.000261 | Rp1.58 | ✅ +175.3% |
Net cash flows generated from operating activities were Rp1,546,317 million (Q1 2024: Rp73,823 million) - a roughly 21x increase, reversing course entirely from Q1 2024's own near-stall, when loan growth had nearly exactly offset new deposits. Capital expenditure (fixed and intangible assets acquired) was Rp274,558 million (Q1 2024: Rp217,441 million, +26.3%) - a small fraction of the quarter's operating cash flow, a marked contrast with Q1 2024, when capex had outrun operating cash flow entirely. Period-end cash and cash equivalents stood at Rp5,125,079 million (~$307.79M). Operating income (the bank's own regulatory-format figure, netting impairment losses against revenue) is the closest bank equivalent to Adjusted EBITDA; the concept itself doesn't meaningfully apply to a deposit-taking institution.
| Balance sheet metric | Mar 2025 (IDR) | Mar 2025 (USD) | Dec 2024 (IDR) | QoQ |
|---|---|---|---|---|
| Total Assets | Rp32,462,900M | ~$1,949.71M | Rp28,542,712M | ✅ +13.7% |
| Loans and Sharia financing (gross) | Rp20,257,616M | ~$1,216.42M | Rp17,701,486M | ✅ +14.4% |
| Total customer deposits (incl. temporary syirkah funds) | Rp21,440,996M | ~$1,287.32M | Rp18,805,830M | ✅ +14.0% |
| Total Liabilities (incl. temporary syirkah funds) | Rp23,871,660M | ~$1,433.77M | Rp20,023,788M | +19.2%, tracking balance sheet growth |
| Total Equity | Rp8,591,240M | ~$515.94M | Rp8,518,924M | +0.8%, still essentially flat |
Net income grew 177.6% YoY and ROA held at 1.0% for a second straight quarter, but the stock fell 39.7% in the same quarter - its steepest quarterly decline since Q4 2022. Operating cash flow comfortably covered capital spending for the first time since Q1 2024's own near-stall, even as capital adequacy fell sharply (see Key Operational Metrics).
Key Operational Metrics
Ratios below are sourced from PT Bank Jago Tbk's own "1Q 2025 Results Update" investor presentation, cross-checked against the filed financial statements where the underlying figures allow recalculation (noted individually).
- CASA ratio»: 54.2% (Mar 2025, calculated from Rp11,507,022M current + savings deposits ÷ Rp21,218,157M total conventional deposits, per the filed balance sheet) vs. 53.5% (Dec 2024) - the first quarterly increase after five straight declines this backfill has tracked (65%→63%→61%→57%→53%), though still far below early-2024 levels.
- Loan-to-Deposit Ratio»: 94% (Mar 2025, per the investor presentation) vs. 94% (Dec 2024) - flat for the first time in over a year, after a full year of steady improvement.
- NIM»: 8.8% (Q1 2025, per the investor presentation) vs. 8.0% (Q4 2024) - a second straight quarterly rise, continuing Q4's rebound rather than reversing it; the loan-yield component alone rose to 10.4% from 8.9%.
- NPL»: 0.3% gross (Mar 2025, per the investor presentation) vs. 0.2% (Dec 2024) - a small uptick off the prior quarter's new backfill-best, though still far below every level this backfill recorded before mid-2024.
- CAR»: 36.4% (Mar 2025, per the investor presentation) vs. 44.4% (Dec 2024) - the sharpest single-quarter drop this backfill has recorded, as capital keeps getting deployed into a fast-growing risk-weighted loan book; now roughly 3.6x OJK's 10% minimum, down from over 6x two years ago.
- ROE» / ROA»: 3.8% / 1.0% (Q1 2025, per the investor presentation) vs. 2.6%/1.0% (Q4 2024) - ROE improved meaningfully; ROA held exactly at the 1.0% threshold the FY2024 post flagged as a first-time milestone, now sustained for a second straight quarter.
- Cost-to-Income»: 56% (Q1 2025, per the investor presentation) vs. 63% (Q4 2024) - the best single-quarter efficiency reading anywhere in this backfill's recent run.
- Cost of Funds (period-end, per the investor presentation): 4.0% (Mar 2025) vs. 3.7% (Dec 2024) - a fifth straight quarterly increase since the Q3 2024 post first flagged this reversal - see Beyond the Usual.
- Cost of Credit / Average Loan (per the investor presentation): 4.6% (Q1 2025) vs. 3.0% (Q4 2024) - up sharply for a second straight quarter, continuing the acceleration flagged in the FY2024 post - see Beyond the Usual.
- LAR» (Loans at Risk, per the investor presentation): 5.1% (Mar 2025) vs. 3.8% (Dec 2024) - up meaningfully, worth watching alongside the cost-of-credit trend above even though headline NPL barely moved.
- Related-party loan concentration: 2.40% of the loan book (Mar 2025, Rp485,572M against Rp20,195,502M gross conventional loans, per the bank's own disclosed borrower-level breakdown) vs. 2.94% (Dec 2024) - continuing the decline flagged in the FY2024 post; PT BFI Finance Indonesia Tbk's loan fell further (Rp168,854M to Rp135,564M), while PT Multifinance Anak Bangsa's loan held essentially flat (Rp349,946M to Rp349,939M).
- Undrawn loan commitments: Rp2,868,324M (Mar 2025) vs. Rp2,587,958M (Dec 2024) - up 10.8% in a single quarter, a sharp reacceleration from FY2024's own full-year growth of just 2.6%.
- KYC-verified digital banking and lending customers: 16.3+ million (Mar 2025, per the investor presentation), up from 15.3 million at Dec 2024.
- Headcount and branch network: still not disclosed in the filed financial statements' regulatory format, continuing the pattern flagged in every prior post in this backfill back to 9M 2023.
The Sharia Unit's Book Grew for the First Time in This Entire Backfill
The FY2024 post closed on a book that had resumed shrinking after one flat quarter, down 20.8% in Q4 2024 to Rp57,442 million - the second consecutive year the unit's financing book had collapsed by more than 80%. Q1 2025 breaks that pattern for the first time: the book grew to Rp62,114 million at 31 March 2025, up 8.1% quarter-over-quarter. It's the first quarterly increase this backfill has ever recorded for this specific line, after roughly two years split between an 80%+ collapse and a slower, uneven bleed.
The unit's income statement moved the same direction. Total sharia income rose to Rp34,623 million (Q1 2024: Rp25,136 million, +37.7%), and net income reached Rp27,706 million, up 96.3% YoY from Rp14,114 million - nearly doubling in a quarter where the underlying book also grew, rather than the pattern tracked since FY2023 of rising profit on a shrinking base. Total Sharia Business Unit assets grew 14.9% quarter-over-quarter (Rp2,434,917 million to Rp2,797,896 million) - still likely reflecting continued growth in the unit's securities holdings alongside the financing book, though this quarter's filed statements don't break that split out separately the way the FY2024 annual report did.
One quarter of growth doesn't settle the question the FY2024 post left open - whether this is a deliberate pivot toward a smaller, securities-funded Sharia business, or a wind-down that's now bottoming out and starting to rebuild. But for the first time in this entire backfill, the book size and the profit trend are moving in the same direction, which is itself new information worth tracking into Q2 2025.
The Stock Just Had Its Worst Quarter in Over Two Years
Bank Jago's shares closed at Rp1,465 on 27 March 2025 (the nearest trading day to period-end; the Indonesia Stock Exchange was closed from 28 March through the end of the month for the Idul Fitri holiday period). No stock split has occurred at any point since the company's IPO, so Rp1,465 is the actual nominal price quoted on the IDX at the time. That's down 39.7% from Rp2,430 three months earlier - the steepest single-quarter decline this backfill has recorded since Q4 2022's 43.6% drop, and larger than every other quarterly move in between (Q1 2023's 34.9%, 9M 2023's 36.5%, FY2024's 20.3%). Versus a year earlier (28 March 2024, Rp2,670), the stock is down 45.1% YoY. Zooming out to the earliest month in this backfill's two-year price window, the stock closed at Rp2,070 in April 2023 and has fallen 29.2% since.
This is the sharpest disconnect between price and fundamentals this backfill has recorded, surpassing even FY2024's own record-setting gap: net income grew 177.6% YoY, ROA held at a milestone 1.0% for a second straight quarter, cost-to-income hit a new backfill-best, and the Sharia unit's book grew for the first time ever - and the stock still fell nearly 40% in three months. Whether the market is pricing in the sharply falling capital ratio (see Key Operational Metrics), a broader de-rating across Indonesian digital-bank and tech-adjacent stocks in early 2025, or something else entirely isn't something this backfill's data can resolve - only that the gap between what the numbers show and what the price implies just widened again, for the second consecutive quarter.
Beyond the Usual
Cost of credit accelerated for a fourth straight quarter, even as NPL barely moved
Impairment losses on financial assets rose to Rp223,960 million in Q1 2025 (per the filed statements), up from approximately Rp134 billion in Q4 2024 (per the investor presentation's own quarterly series) - a roughly 67% quarter-over-quarter increase, and the fourth consecutive quarter this line has grown (approximately Rp53bn → Rp62bn → Rp55bn → Rp134bn → Rp224bn across Q1 2024 through Q1 2025, per the same series). Cost of credit as a share of average loans jumped to 4.6% from 3.0% the quarter before, while gross NPL only ticked up to 0.3% from 0.2% - a widening gap between what's being provisioned and what's actually delinquent. This can be explained by expected-credit-loss accounting running ahead of realized defaults on a loan book that grew 14.4% in the quarter, but it's now a four-quarter trend rather than a single unusual reading, and the filed statements offer no forward commentary on when it's expected to level off.
Cost of funds rose for a fifth straight quarter as capital adequacy fell sharply in the same period
Cost of funds (period-end, per the investor presentation) rose to 4.0% at 31 March 2025, extending the reversal first flagged in the Q3 2024 post (3.1%→3.1%→3.4%→3.7%→4.0% across the five most recent quarters) even as CASA» ticked up slightly this quarter. In the same period, CAR» fell from 44.4% to 36.4% - the largest single-quarter drop this backfill has recorded - as the loan book grew 14.4% quarter-over-quarter. Neither trend is alarming in isolation (CAR remains well above the regulatory minimum, and rising funding costs are the normal cost of fast deposit growth), but the two moving together - funding getting more expensive while the capital cushion shrinks faster than usual - is worth watching into Q2 2025 rather than treating as two unrelated line items.
Related-party loan concentration kept declining, continuing a trend now three quarters deep
PT BFI Finance Indonesia Tbk's related-party loan fell to Rp135,564 million at 31 March 2025, from Rp168,854 million at year-end - down nearly 20% in a single quarter, and now less than half its level two years ago. PT Multifinance Anak Bangsa's loan, which first appeared in the FY2023 post at almost exactly the size of BFI Finance's then-repaid loan, held essentially flat (Rp349,946 million to Rp349,939 million). Combined related-party loan concentration fell to 2.40% of the conventional book, from 2.94% - continuing a decline now visible across the last three reported quarters.
The MESOP option pool kept shrinking with no new grant this quarter
No new tranche of stock options was issued in Q1 2025, following the second MESOP» grant struck in June 2024. During the quarter, 2,533,800 options were exercised and 5,250,000 lapsed, taking total options outstanding from 134,865,400 to 127,081,600 - continuing to shrink the pool rather than adding to it.
Undrawn loan commitments reaccelerated after a year of slowing growth
Unused loan facilities committed to customers grew to Rp2,868,324 million at 31 March 2025, from Rp2,587,958 million at year-end - up 10.8% in a single quarter, a sharp reacceleration from FY2024's own full-year growth of just 2.6% (the slowdown the FY2024 post flagged as a marked deceleration from 2024's earlier double-digit quarterly pace).
Board and management compensation grew slower than profit for a second straight period
Combined compensation for the Board of Commissioners and Directors was Rp14,274 million for Q1 2025, up 84.1% from Rp7,754 million in Q1 2024 - a large increase in absolute terms, but still well behind net income's 177.6% growth over the same period, extending the pattern flagged in the FY2024 post.
Target Valuation Range
Market cap Rp20.31 trillion (~$1.22 billion), ~2.36x P/B, ~84.2x P/E. Bottom line: substantially less overvalued than three months ago on both an earnings and a book basis - the book multiple, in particular, has fallen to a level this backfill has never recorded before - but the earnings multiple still prices in years of continued triple-digit profit growth that hasn't actually happened yet.
Bank Jago's shares closed at Rp1,465 on 27 March 2025 (the nearest trading day to period-end), down 39.7% from Rp2,430 three months earlier and 45.1% YoY (see above). Issued and fully paid-in capital of Rp1,386,133 million at a Rp100 par value implies approximately 13,861,330,900 shares outstanding, for a market capitalization of approximately Rp20.31 trillion (~$1.22 billion).
| Market cap → book value | Q1 2025 |
|---|---|
| Share price (period-end) | Rp1,465 |
| Shares outstanding | 13,861,330,900 |
| Market capitalization | Rp20.31 trillion (~$1.22 billion) |
| Total equity (book value) | Rp8,591,240M |
| Book value per share | Rp619.83 |
| Peer-multiple sanity check | Q4 2024 | Q1 2025 | Change |
|---|---|---|---|
| P/B | 3.95x | 2.36x | down |
| P/E | 262.1x | 84.2x | down |
P/B»: ~2.36x, using book value» per share of Rp619.83 (Rp8,591,240M total equity ÷ 13,861,330,900 shares) - down sharply from Q4 2024's ~3.95x, since the 39.7% price decline massively outpaced book value's roughly flat 0.8% growth over the same period. This is the lowest P/B this backfill has recorded for this stock. P/E»: annualizing Q1 2025's basic EPS of Rp4.35 (×4, since this is a single-quarter filing), the implied multiple is roughly 84.2x - down sharply from FY2024's 262.1x, as both the much stronger quarterly earnings run-rate and the price decline worked in the same direction. A full DCF still isn't appropriate, for the same reason every prior post in this backfill has given: this quarter's own numbers show the Sharia unit's book direction reversing for the first time in the same quarter the stock had its steepest drop in over two years, making any long-run growth assumption more speculative than usual right now. The peer-multiple read stays the honest one, and both multiples compressed to levels this backfill has never recorded before for this stock - genuine progress on valuation, even though it arrived through a falling price rather than a rising one, which is a less healthy way for a multiple to compress than FY2024's own combination of earnings growth and price decline was. Still, a bank compounding net income at triple-digit YoY rates off a small base and holding a 1.0% ROA for two straight quarters is a genuinely different proposition than the stock this backfill tracked through most of 2022-2023 - the question this valuation range can't yet answer is whether that pace is sustainable once the base itself gets larger.
PT Bank Jago Tbk's published financial statements for the three-month period ended 31 March 2025 (with 31 March 2024 comparatives), and its "1Q 2025 Results Update" investor presentation.