The Loan Book Outran Deposits Again, and Cash Flow Noticed Immediately
The Q1 2025 post closed with net income up 177.6% YoY, ROA» holding at 1.0% for a second straight quarter, and operating cash flow swinging to a record positive Rp1,546,317 million - comfortably clear of capex for the first time in this backfill's most recent stretch. Q2 2025 undoes it almost entirely. Isolating the quarter on its own (subtracting Q1's already-disclosed figures from the H1 total), Q2 standalone operating cash flow came in at approximately negative Rp1,156,834 million - a swing of more than Rp2.7 trillion in a single quarter, and a mirror image of Q1 2024's own weak-cash-flow quarter, which reversed within one quarter back then. This time the pattern ran the other way: one strong quarter, then a reversal just as sharp.
The mechanics are the same ones this backfill has tracked since 2024: gross loans and Sharia financing grew Rp4,027,206 million over the first half, while the deposit and funding side (current accounts, savings, time deposits, and temporary syirkah funds combined) brought in roughly Rp3,728,200 million - a funding gap that Q1 2025's unusually strong deposit inflow had entirely covered on its own. Period-end cash and cash equivalents actually fell during H1 2025, from Rp4,231,256 million at 31 December 2024 to Rp3,920,163 million at 30 June 2025 - the first half-year decline in cash this backfill has recorded, even as total assets kept growing 13.6% year-to-date. None of this is distress: net income kept growing, and a bank funding loan growth partly out of its own liquidity buffer isn't unusual. But it does mean Q1's record cash-flow swing was exactly what it looked like at the time - a single quarter's funding mix, not a new steady state - and the same question that closed the FY2024 and Q1 2025 posts is still open: which side of the loan-versus-deposit race wins next quarter is not something this backfill's data can predict in advance.
The Prescription
Bank Jago should treat H1 2025's profit growth (net income up 154.3% YoY) as real and keep underwriting through it rather than around it - NIM» held at 8.1% in Q2 even as the loan book grew over 20% year-over-year, and cost of credit» actually eased this quarter (3.5% of average loans, down from Q1's 4.6%) rather than extending the four-quarter acceleration the Q1 2025 post flagged. That's the one genuinely encouraging reversal this quarter produced, and management should keep leaning into whatever underwriting or collections discipline produced it rather than treating Q1's spike as the new normal to manage around. What it should stop doing is running deposit growth as an afterthought to loan growth: this is now the second time in five quarters (after Q1 2024) that the funding side has fallen meaningfully behind the lending side within a single half, and each time it has produced a sharp, avoidable swing in operating cash flow rather than a smooth one. A bank whose CASA» ratio has fallen in five of the last six quarters (65%→63%→61%→57%→53%→54%→51%) doesn't have the cheap-deposit cushion to treat that gap as costless, and letting it recur again next quarter would be the third time this specific pattern has repeated without a stated plan to prevent it.
Key Financial Metrics
H1 2025 vs. H1 2024 - PT Bank Jago Tbk
FX: IDR 16,235 = USD 1 (30 June 2025, the period-end date and the rate disclosed in the Bank's own published statements; applied to both periods below for consistency). The published statements report the Bank on a standalone basis only - Bank Jago has no consolidated subsidiaries, consistent with every prior post in this backfill.
| Metric | H1 2025 (IDR) | H1 2025 (USD) | H1 2024 (IDR) | YoY |
|---|---|---|---|---|
| Net interest and Sharia income ("Net Revenue" equivalent) | Rp1,166,296M | ~$71.85M | Rp708,074M | ✅ +64.7% |
| Impairment losses on financial assets ("Cost of Credit") | -Rp408,585M | -~$25.17M | -Rp114,923M | ⚠️ +255.5%, though the Q2-only run rate eased from Q1 - see The Prescription |
| Operating income | Rp163,121M | ~$10.05M | Rp65,023M | ✅ +150.8% |
| Income before income tax | Rp163,013M | ~$10.04M | Rp64,069M | ✅ +154.4% |
| Income tax expense (deferred) | -Rp35,944M | -~$2.21M | -Rp14,103M | +154.9%, an expense both periods |
| Net income for the period | Rp127,069M | ~$7.83M | Rp49,966M | ✅ +154.3% |
| Earnings per share (full amount, basic) | Rp9.17 | ~$0.000565 | Rp3.61 | ✅ +154.0% |
Isolating Q2 2025 on its own (H1 total minus Q1's already-disclosed figures) implies standalone Q2 net income of approximately Rp66,797 million, up 10.8% quarter-over-quarter from Q1's Rp60,272 million - a fifth straight quarter of QoQ profit growth, even as net interest and Sharia income eased slightly (Rp574,820 million, -2.8% QoQ) on a smaller loan-yield contribution. Net cash flows generated from operating activities were Rp389,483 million for H1 2025 (H1 2024: Rp548,492 million, -29.0% YoY) - capital expenditure (fixed and intangible assets acquired) was Rp424,297 million (H1 2024: Rp393,154 million, +7.9%), meaning operating cash flow no longer fully covered capex for the half, a reversal from H1 2024 - see above for the much sharper standalone-quarter swing this half-year figure masks. Period-end cash and cash equivalents stood at Rp3,920,163 million (~$241.5M). 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 | Jun 2025 (IDR) | Jun 2025 (USD) | Dec 2024 (IDR) | YTD |
|---|---|---|---|---|
| Total Assets | Rp32,428,691M | ~$1,997.46M | Rp28,542,712M | ✅ +13.6% |
| Loans and Sharia financing (gross) | Rp21,433,904M | ~$1,320.44M | Rp17,701,486M | ✅ +21.1% |
| Total customer deposits (incl. temporary syirkah funds) | Rp22,431,252M | ~$1,381.87M | Rp18,805,830M | ✅ +19.3% |
| Total Liabilities (incl. temporary syirkah funds) | Rp23,764,222M | ~$1,463.93M | Rp20,023,788M | +18.7%, tracking balance sheet growth |
| Total Equity | Rp8,664,469M | ~$533.85M | Rp8,518,924M | +1.7%, still nearly flat |
Net income rose 154.3% YoY to Rp127,069 million for H1 2025, and NIM and ROA both held up quarter-over-quarter. But standalone Q2 operating cash flow swung to approximately negative Rp1.16 trillion, reversing Q1's own record positive swing entirely - the headline profit growth is real, but the cash-generation story behind it flipped completely within a single quarter, for the second time in five quarters this backfill has tracked (see Key Operational Metrics for the capital-ratio picture alongside it).
Key Operational Metrics
Ratios below are sourced from PT Bank Jago Tbk's own "1H 2025 Results Update" investor presentation and published financial ratios, cross-checked against the filed financial statements where the underlying figures allow recalculation (noted individually).
- CASA ratio»: 51.0% (Jun 2025, calculated from Rp11,443,768M current + savings deposits ÷ Rp22,431,252M total deposits, per the filed balance sheet) vs. 53.7% (Mar 2025) vs. 53.0% (Dec 2024) - resuming the decline this backfill has tracked through most of the last six quarters after Q1 2025's one-quarter uptick; time deposits grew 24.2% over the half, nearly double CASA's own 14.9% growth.
- Loan-to-Deposit Ratio»: 96% (Jun 2025, per the investor presentation) vs. 94% (Mar 2025) - ticked back up after a quarter of being flat.
- NIM»: 8.1% (Q2 2025, per the investor presentation) vs. 8.8% (Q1 2025) - eased from Q1's high, though H1 2025's blended 8.4% is still well above H1 2024's 7.3%.
- NPL»: 0.3% gross (Jun 2025, per the investor presentation, essentially unchanged from Q1's 0.3%) - 0.27% per the bank's own filed ratio table; net NPL held at a backfill-low 0.02%.
- CAR»: 35.9% (Jun 2025, per the investor presentation and filed ratios) vs. 36.4% (Mar 2025) - a modest 0.5 percentage-point decline, a fraction of Q1's 8-point drop; still roughly 3.6x OJK's 10% minimum.
- ROE» / ROA»: 4.2% / 1.1% (Q2 2025, per the investor presentation) vs. 3.8%/1.0% (Q1 2025) - both improved for a second straight quarter.
- Cost-to-Income»: 60% (Q2 2025, per the investor presentation) vs. 56% (Q1 2025) - gave back some of Q1's efficiency gain, though still far better than H1 2024's 79%.
- Cost of Funds (period-end, per the investor presentation): 4.1% (Jun 2025) vs. 4.0% (Mar 2025) - a sixth straight quarterly increase since the Q3 2024 post first flagged this reversal.
- Cost of Credit / Average Loan (per the investor presentation): 3.5% (Q2 2025) vs. 4.6% (Q1 2025) - the first quarterly improvement after four straight quarters of acceleration flagged in the Q1 2025 post; H1 2025's blended reading (4.0%) is still more than double H1 2024's 1.6%.
- LAR» (Loans at Risk, per the investor presentation): 5.2% (Jun 2025) vs. 5.1% (Mar 2025) - essentially flat.
- Related-party loan concentration: 2.11% of the loan book (Jun 2025, Rp451,733M against the bank's own disclosed related-party total, per Note 38) vs. 2.94% (Dec 2024) vs. 2.40% (Mar 2025) - a fourth straight quarter of decline; PT BFI Finance Indonesia Tbk's loan fell to Rp101,671M (from Rp168,854M at Dec 2024), while PT Multifinance Anak Bangsa's loan held essentially flat (Rp349,946M to Rp349,931M).
- Undrawn loan commitments: Rp3,836,264M (Jun 2025) vs Rp2,868,324M (Mar 2025) vs Rp2,587,958M (Dec 2024) - up 33.7% quarter-over-quarter, extending Q1 2025's own reacceleration rather than leveling off.
- KYC-verified digital banking and lending customers: 17.2+ million (Jun 2025, per the investor presentation), up from 16.3 million at Mar 2025.
- 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.
- NIM by asset class (per the investor presentation, not disclosed in the filed statements): H1 2025's blended 8.4% NIM splits into 9.7% on loans and 5.5% on treasury assets - both up from H1 2024's 8.0% and 5.3% respectively, meaning the margin expansion this backfill has tracked is broad-based across the balance sheet, not concentrated in one asset class.
- Management's own headline framing of the half (per the investor presentation): a "51% YoY Growth in Funding Balances" and "37% YoY Increase in Lending Balances" - both measured Jun 2024-to-Jun 2025, a wider window than the YTD figures in the balance sheet table above, and one where funding actually outgrew lending on a full-year view even though the quarter-by-quarter mechanics above show lending outrunning deposits within H1 2025 itself. Both framings are true; they're just measuring different windows.
Product and distribution moves disclosed only in the investor presentation
The filed financial statements don't cover product roadmap or customer-acquisition economics, but the "1H 2025 Results Update" deck does. Three ecosystem/partnership moves stand out: a pilot for "GoPay Deposito by Jago" (creating and managing a Jago term deposit from inside the GoPay app), a pilot debit card linked to multiple currencies via FX pockets with automatic currency detection on spend, and instant RDN» creation/withdrawal with direct API access for broker partners - alongside a new license application to act as a custodian for Digital Financial Asset Trading (Indonesia's regulatory term for crypto-asset custody). On acquisition economics, management reported a stable cost per direct-acquisition user (~US$2.5), a 45% YoY reduction in cost per new transacting user, and a 15% higher retention rate among users who engaged with the app's in-app "missions" campaign feature - the deck's own explanation for how it's funding the customer growth (17.2 million KYC-ed users) behind the balance-sheet numbers above, though none of these acquisition-cost or retention figures are independently verifiable against the filed statements.
The Sharia Unit Gave Back Q1's Growth, and Then Some
The Q1 2025 post closed on the Sharia Business Unit's financing book growing for the first time in this entire backfill's multi-year record - up 8.1% quarter-over-quarter to Rp62,114 million. That growth didn't hold. The book fell to Rp39,773 million at 30 June 2025, down 36.0% from Rp62,114 million three months earlier, and down 30.8% from Rp57,442 million at the start of the year - erasing Q1's entire increase and then extending well past it. One quarter of growth, which the Q1 post correctly declined to call a turning point, has now been followed by the sharpest single-quarter drop this book has taken since Q2 2024's 52.9% collapse.
The unit's income statement kept moving the opposite direction, continuing the pattern tracked since FY2023: standalone net income reached Rp56,370 million for H1 2025 (H1 2024: Rp23,109 million, +143.9%), and backing out Q1's already-disclosed Rp27,706 million implies Q2 2025 standalone net income of approximately Rp28,664 million - up modestly quarter-over-quarter even as the book it's earning from shrank more than a third. Total Sharia Business Unit assets kept growing regardless, reaching Rp2,802,338 million (up 15.1% from Rp2,434,916 million at Dec 2024), almost certainly still reflecting continued growth in the unit's securities holdings rather than its financing book. The unit's own disclosed ROA reached 4.24% (H1 2025, up from 2.71% a year earlier) - a genuinely strong return, but one earned on an ever-smaller and more securities-heavy base, not evidence the underlying wind-down question the FY2024 post first posed has resolved either way.
The Stock Recovered Some of Its Worst Quarter in Years
The Q1 2025 post closed at Rp1,465, the steepest quarterly drop this backfill had recorded since Q4 2022. Q2 2025 partially reversed it: Bank Jago's shares closed at Rp1,775 on 30 June 2025, up 21.2% from Rp1,465 three months earlier. No stock split has occurred at any point since the company's IPO, so both prices are the actual nominal figures quoted on the IDX at the time. Versus a year earlier (28 June 2024, Rp2,410, a Friday since 30 June 2024 fell on a Sunday), the stock is still down 26.3% YoY, and zooming out to the earliest month in this backfill's two-year price window, the stock closed at Rp2,910 in July 2023 and has fallen 39.0% since.
The rally is real but partial - it recovers barely half of Q1's 39.7% drop, leaving the stock still well below every level it traded at for most of 2023 and 2024. Whether this quarter's bounce reflects the market pricing in H1's 154% profit growth, a mechanical rebound after an unusually sharp prior-quarter sell-off, or a broader recovery across Indonesian tech-adjacent stocks isn't something this backfill's data can isolate - only that, for the first time in over a year, the direction of the price move and the direction of the fundamentals (profit up, cost of credit easing, capital ratio roughly stable) finally agree, even if the magnitude still doesn't.
Beyond the Usual
A new stock-option program launched with a materially lower strike price and a grant larger than the entire prior pool
Shareholders approved a second Management and Employee Stock Ownership Program ("MESOP II") on 14 May 2025, covering up to 200,000,000 new shares at an exercise price of Rp1,550 - materially below MESOP I's Rp2,150 exercise price. The first MESOP II tranche was granted on 10 June 2025 for 155,525,000 shares, more than doubling total options outstanding in a single grant, from 134,865,400 at the start of the period to 281,544,100 at 30 June 2025 (after also accounting for 2,533,800 shares exercised and 6,312,500 that lapsed during the half). A lower strike price for a new option program is not unusual as a share price falls, and the vesting schedule stretches to November 2029, but the size of this single grant - larger than the Bank's entire existing option pool - is a step change from every prior tranche this backfill has tracked (128,350,000 at inception in June 2023, then just 10,000,000 in June 2024), and is worth watching for its dilution and compensation-cost impact in coming quarters.
Related-party loan concentration kept declining, continuing a trend now four quarters deep
PT BFI Finance Indonesia Tbk's related-party loan fell to Rp101,671 million at 30 June 2025, from Rp168,854 million at year-end - down nearly 40% in a single half, and now less than a third of 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, again held essentially flat (Rp349,946 million to Rp349,931 million). Combined related-party loan concentration fell to 2.11% of the loan book, from 2.94% at year-end - continuing a decline now visible across the last four reported quarters.
Undrawn loan commitments kept reaccelerating rather than leveling off
Unused loan facilities committed to customers grew to Rp3,836,264 million at 30 June 2025, from Rp2,868,324 million at 31 March 2025 - up 33.7% in a single quarter, extending the reacceleration the Q1 2025 post flagged rather than settling back down. Over the full half, undrawn commitments are up 48.2% - a much faster pace than either the loan book itself (21.1% YTD) or deposits (19.3% YTD).
Board and management compensation grew far slower than profit for a third straight period
Combined compensation for the Board of Commissioners and Directors was Rp29,065 million for H1 2025, up 8.4% from Rp26,813 million in H1 2024 - a far smaller increase than net income's 154.3% growth over the same period, extending the pattern flagged in the Q1 2025 post and the FY2024 post before it.
Target Valuation Range
Market cap Rp24.61 trillion (~$1.52 billion), ~2.84x P/B, ~96.8x P/E. Bottom line: still cheaper than a quarter ago on an earnings basis, but the book multiple re-rated upward as the stock's 21.2% rally outpaced book value's near-flat growth - direction reversing, magnitude still modest.
Bank Jago's shares closed at Rp1,775 on 30 June 2025, up 21.2% from Rp1,465 three months earlier but still down 26.3% 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 (unchanged from Mar 2025 to the nearest hundred shares), for a market capitalization of approximately Rp24.61 trillion (~$1.52 billion).
| Market cap → book value | Q2 2025 |
|---|---|
| Share price (period-end) | Rp1,775 |
| Shares outstanding | 13,861,330,900 |
| Market capitalization | Rp24.61 trillion (~$1.52 billion) |
| Total equity (book value) | Rp8,664,469M |
| Book value per share | Rp625.13 |
| Peer-multiple sanity check | Q1 2025 | Q2 2025 | Change |
|---|---|---|---|
| P/B | 2.36x | 2.84x | up |
| P/E | 84.2x | 96.8x | up |
P/B»: ~2.84x, using book value» per share of Rp625.13 (Rp8,664,469M total equity ÷ 13,861,330,900 shares) - up from Q1 2025's backfill-low ~2.36x, since the 21.2% price rally outpaced book value's modest 0.9% growth over the same period. P/E»: annualizing H1 2025's basic EPS of Rp9.17 (×2, since this is a six-month cumulative filing), the implied multiple is roughly 96.8x - far below H1 2024's own ~333.7x on the same annualization basis, since H1 2025's much stronger earnings run-rate did most of the work even after this quarter's price rally. A single quarter's own annualized read (Q1 2025's ~84.2x, using ×4) isn't directly comparable to this half-year figure - the two use different annualization bases - so the cleaner year-over-year comparison is H1-to-H1. 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 operating cash flow swinging from a record positive in Q1 to a sharply negative Q2, and the Sharia unit's book direction reversing for a second consecutive quarter - both signs that the underlying growth rate is still too volatile quarter-to-quarter to extrapolate with any real confidence. The peer-multiple read stays the honest one: P/B re-rated modestly higher this quarter while P/E's read depends heavily on which period is annualized, which is itself the point - a bank whose quarterly earnings and cash generation both swing this hard doesn't yet have a valuation multiple a reader should treat as precise, only directional.
PT Bank Jago Tbk's published financial statements for the six-month period ended 30 June 2025 (with 30 June 2024 and 31 December 2024 comparatives), and its "1H 2025 Results Update" investor presentation.