Three Quarters, Three Directions for the Same Small Book
The Q2 2025 post closed on the Sharia Business Unit's financing book falling 36.0% quarter-over-quarter to Rp39,773 million - erasing all of Q1 2025's first-ever growth and then some. Q3 2025 reversed that entirely, and then kept going: the book grew 140.2% quarter-over-quarter to Rp95,535 million - not just recovering Q2's loss, but landing well above Q1's own previous backfill-high of Rp62,114 million. Three consecutive quarters, three different directions, on a book that's still under 0.5% of the conventional loan book's size.
What makes this quarter's swing different from the last two is that it didn't come with a matching move in profitability. Standalone Sharia net income (backing out H1 2025's already-disclosed Rp56,370 million from the 9M total of Rp77,387 million) was approximately Rp21,017 million in Q3 - down 26.7% quarter-over-quarter from Q2's implied Rp28,664 million, even as the book it's earning from more than doubled. Total Sharia Business Unit assets grew just 2.1% over the same quarter (Rp2,802,338 million to Rp2,862,038 million), meaning the financing-book surge was funded largely by shifting the unit's own securities holdings into new financing rather than by fresh capital or deposit inflow - the opposite of the pattern this backfill tracked through 2023 and 2024, where the unit shrank its book and grew its securities position instead. Newly booked financing typically takes a quarter or more to season into income, which is the simplest explanation for the profit/book divergence - but it's also exactly the kind of divergence worth watching next quarter, since a unit whose income fell while its book doubled either books income with a lag or is under-earning on what it just wrote.
The unit's credit quality stayed clean through the swing: gross NPF» held at 0.00% (Sep 2025, down from 2.00% a year earlier), and its own disclosed ROA» eased only to 3.81% for 9M 2025 (from H1's 4.24%, and up from 9M 2024's 2.59%) - a dilution effect from the larger book, not a sign of deteriorating quality.
The Prescription
Bank Jago should keep pushing the Sharia Business Unit's newly reaccelerated financing growth rather than treating it cautiously because of Q2's reversal - a book that can more than double in a single quarter while holding gross NPF at 0.00% is demonstrating real underwriting discipline, not just volatility, and management should be explicit next quarter about whether this growth is sustainable or another one-off swing, since three consecutive quarters in three different directions is not yet a trend a reader can rely on. What it should stop doing is letting funding costs drift upward while CASA» keeps eroding: Cost of Funds has now risen for a seventh straight quarter (4.4%, from 3.4% at 9M 2024), and CASA fell to a new backfill-low 48.2% this quarter - the fourth decline in the last five quarters. A bank whose net interest margin depends on cheap deposit funding doesn't get to treat a steadily rising cost of funds as background noise indefinitely, and if NIM» holding flat at 8.1% this quarter was partly a function of loan repricing rather than funding-cost discipline, that's a trade-off Bank Jago is making silently rather than addressing directly.
Key Financial Metrics
9M 2025 vs. 9M 2024 - PT Bank Jago Tbk
FX: IDR 16,665 = USD 1 (30 September 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 | 9M 2025 (IDR) | 9M 2025 (USD) | 9M 2024 (IDR) | YoY |
|---|---|---|---|---|
| Net interest and Sharia income ("Net Revenue" equivalent) | Rp1,777,205M | ~$106.65M | Rp1,077,136M | ✅ +65.0% |
| Impairment losses on financial assets ("Cost of Credit") | -Rp623,135M | -~$37.39M | -Rp169,547M | ⚠️ +267.5% - see The Prescription |
| Operating income | Rp255,590M | ~$15.34M | Rp111,093M | ✅ +130.0% |
| Income before income tax | Rp255,448M | ~$15.33M | Rp110,059M | ✅ +132.1% |
| Income tax expense (deferred) | -Rp56,315M | -~$3.38M | -Rp24,223M | +132.4%, an expense both periods |
| Net income for the period | Rp199,133M | ~$11.95M | Rp85,836M | ✅ +132.0% |
| Earnings per share (full amount, basic) | Rp14.37 | ~$0.000862 | Rp6.19 | ✅ +132.1% |
Isolating Q3 2025 on its own (9M total minus H1's already-disclosed figures) implies standalone Q3 net income of approximately Rp72,064 million, up 7.9% quarter-over-quarter from Q2's Rp66,797 million - a sixth straight quarter of QoQ profit growth. Net interest and Sharia income also grew quarter-over-quarter (Rp610,909 million, +6.3% QoQ), a reversal from Q2's slight sequential dip. Net cash flows generated from operating activities were Rp618,076 million for 9M 2025 (9M 2024: Rp1,913,759 million, -67.7% YoY) - capital expenditure (fixed and intangible assets acquired) was Rp569,873 million (9M 2024: Rp571,429 million, essentially flat), leaving operating cash flow only narrowly ahead of capex for the nine months, against 9M 2024's much wider cushion. Isolating Q3 standalone (9M total minus H1's already-disclosed figures), operating cash flow came in at approximately positive Rp228,593 million - the third consecutive quarterly swing this backfill has tracked (Q1's record positive Rp1,546,317 million, Q2's sharply negative ~Rp1,156,834 million, now Q3's modest positive figure) - a much smaller magnitude than either of the prior two quarters' extremes, closer to a stabilization than a third violent swing. Period-end cash and cash equivalents stood at Rp3,962,668 million (~$237.8M), up 1.1% from Jun 2025's Rp3,920,163 million. 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 | Sep 2025 (IDR) | Sep 2025 (USD) | Dec 2024 (IDR) | YTD |
|---|---|---|---|---|
| Total Assets | Rp34,497,083M | ~$2,070.06M | Rp28,542,712M | ✅ +20.9% |
| Loans and Sharia financing (gross) | Rp23,465,452M | ~$1,408.11M | Rp17,701,486M | ✅ +32.6% |
| Total customer deposits | Rp23,893,055M | ~$1,433.75M | Rp18,805,830M | ✅ +27.0% |
| Total Liabilities | Rp25,754,292M | ~$1,545.62M | Rp20,023,788M | +28.6%, tracking balance sheet growth |
| Total Equity | Rp8,742,791M | ~$524.66M | Rp8,518,924M | +2.6%, still nearly flat |
9M 2025 net income rose 132.0% YoY to Rp199,133 million, and operating cash flow stayed ahead of capex for the nine months even after Q2's sharp reversal - but the more important story this quarter is the Sharia Business Unit's book more than doubling while its own profit fell (see above), and CASA and CAR both moving the wrong direction even as headline profitability keeps improving (see Key Operational Metrics).
Key Operational Metrics
Ratios below are sourced from PT Bank Jago Tbk's own "9M 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»: 48.2% (Sep 2025, calculated from Rp11,518,600M current + savings deposits ÷ Rp23,893,055M total deposits, per the filed balance sheet) vs. 51.0% (Jun 2025) vs. 52.9% (Dec 2024) - a new backfill-low, down in four of the last five quarters even after Q1 2025's one-quarter uptick; time deposits have now grown faster than CASA for a second straight quarter.
- Loan-to-Deposit Ratio»: 98% (Sep 2025, per the investor presentation) vs. 96% (Jun 2025) - ticked up again, extending the reversal from Q1's flat reading.
- NIM»: 8.1% (Q3 2025, per the investor presentation) vs. 8.1% (Q2 2025) - held flat after two quarters of easing from Q1's high; 9M 2025's blended 8.3% is still well above 9M 2024's 7.1%.
- NPL»: 0.4% gross (Sep 2025, per the investor presentation; 0.38% per the bank's own filed ratio table) vs. 0.3% (Jun 2025) - a small uptick, still very low in absolute terms; net NPL rose to 0.04% (from 0.02% in Jun 2025).
- CAR»: 32.9% (Sep 2025, per the investor presentation and filed ratios) vs. 35.9% (Jun 2025) - down 3.0 percentage points, the sharpest single-quarter drop since Q1 2025's 8-point plunge; still roughly 3.3x OJK's 10% minimum, but the decline has now continued for three straight quarters.
- ROE» / ROA»: 4.5% / 1.1% (Q3 2025, per the investor presentation) vs. 4.2% / 1.1% (Q2 2025) - ROE reached a new backfill-high, rising each quarter so far this year (3.8% → 4.2% → 4.5%), while ROA held steady.
- Cost-to-Income»: 58% (Q3 2025, per the investor presentation) vs. 60% (Q2 2025) - improved back toward Q1's 56% best.
- Cost of Funds (period-end, per the investor presentation): 4.4% (Sep 2025) vs. 4.1% (Jun 2025) - a seventh straight quarterly increase since the Q3 2024 post first flagged this reversal - see The Prescription.
- Cost of Credit / Average Loan (per the investor presentation): 3.8% (Q3 2025) vs. 3.5% (Q2 2025) - re-accelerated after Q2's one-quarter improvement, though still below Q1's 4.6% peak; 9M 2025's blended reading (3.9%) is more than double 9M 2024's 1.5%.
- LAR» (Loans at Risk, per the investor presentation): 5.9% (Sep 2025) vs. 5.2% (Jun 2025) - a meaningful uptick worth monitoring alongside the cost-of-credit trend, even as headline NPL barely moved.
- Related-party loan concentration: not disclosed at the counterparty level this quarter - this period's filed statements are the abbreviated regulatory "published financial statement" format rather than the fuller interim financial statements (like H1 2025's) that break the related-party note down by borrower name, so there's no Sep 2025 update to the series this backfill has tracked since FY2023; the last known reading was 2.11% (Jun 2025).
- Undrawn loan commitments: Rp4,673,044M (Sep 2025) vs. Rp3,836,264M (Jun 2025) vs. Rp2,587,958M (Dec 2024) - up 21.8% quarter-over-quarter (80.6% year-to-date), a slower pace than Q2's 33.7% jump but still well ahead of loan-book growth itself.
- KYC-verified digital banking and lending customers: 18.6+ million (Sep 2025, per the investor presentation), up from 17.2 million at Jun 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.
- Risk Adjusted Revenue (per the investor presentation, defined as net interest income minus cost of credit; not a line item in the filed statements): Rp396 billion in Q3 2025, up from Rp390 billion (Q2 2025), Rp367 billion (Q1 2025), Rp342 billion (Q4 2024), and Rp314 billion (Q3 2024) - management's own framing has this figure rising every quarter for five straight quarters, even though cost of credit itself has been volatile over the same stretch (see the Cost of Credit trend above) - the steadier net interest income growth has more than offset the swings in credit cost each quarter.
- Loan book composition (per the investor presentation's balance sheet breakdown, not disclosed at this level in the filed statements): of the Rp23,465,452 million gross loan and Sharia financing book at Sep 2025, Rp22,920 billion (97.7%) is Partnership & Ecosystem Lending, Rp450 billion is lending to Financial Institutions, and Rp96 billion is Sharia Financing. The Financial Institutions line is new-ish and growing fast in relative terms - zero at Dec 2024 and Mar 2025, Rp200 billion at Jun 2025, and Rp450 billion at Sep 2025 (up 125.0% quarter-over-quarter) - though it remains under 2% of the total book, a much smaller wrinkle than the Sharia unit's swings covered above.
Product and distribution moves disclosed only in the investor presentation
The filed financial statements don't cover product roadmap, but the "9M 2025 Results Update" deck does. Three moves stand out from the quarter: the open-market launch of Jago Dana Cepat, an unsecured cash loan the deck describes as disbursed in seconds with "responsible lending offers that match customer's financial health"; the public launch of the Jago Digital Pro Card, a debit card aimed at digital-entrepreneur and productivity-tool merchants with exclusive deals and higher transaction limits; and a pilot Consolidated Asset View, letting a user see their investment portfolio - stocks, bonds, mutual funds, gold - across "different asset classes in Jago," including holdings held across all IDX brokers via the bank's RDN» integration with KSEI (Indonesia's central securities depository). None of the three come with disclosed adoption numbers yet, so it's not possible to say how much of this quarter's loan or fee-income growth (if any) they're already driving - but the cash-loan launch is the more interesting one to watch given the loan book's own aggressive growth this quarter, since an unsecured, seconds-to-disburse product is exactly the kind of underwriting that shows up in cost-of-credit trends a quarter or two later, not immediately.
Beyond the Usual
This quarter's filing dropped the related-party borrower breakdown entirely
Unlike H1 2025's fuller interim financial statements, Q3 2025's filing is the abbreviated "published financial statement" format that Indonesian banks file for interim (non-half-year, non-annual) quarters - a single consolidated regulatory disclosure rather than the complete statements with note-level detail. The related-party section of this format discloses zero balances across every category (placements, securities, loans), which isn't evidence the related-party loans this backfill has tracked (PT BFI Finance Indonesia Tbk, PT Multifinance Anak Bangsa) were repaid - it's evidence this particular filing format doesn't break related-party loans down by counterparty at all. The last verified reading (2.11% of the loan book, Jun 2025) is the most recent real data point; this quarter's format is a genuine disclosure-granularity gap, the same pattern the Q1 2023 post flagged the first time an abbreviated interim format replaced a fuller one.
Capital Adequacy Ratio fell the most in a single quarter since Q1's plunge
CAR fell from 35.9% to 32.9% this quarter - a 3.0 percentage-point drop, the sharpest since Q1 2025's 8-point fall and the third straight quarterly decline. The ratio remains comfortably above regulatory minimums (roughly 3.3x the 10% floor), but a bank whose capital ratio has now fallen every quarter since Q4 2024 while its loan book keeps growing faster than its equity base is worth tracking for how much further this can continue before growth needs to be funded with fresh capital rather than retained earnings alone.
No new stock-option tranche was granted this quarter
Issued and fully paid-in capital grew only marginally, from Rp1,385,880 million at Dec 2024 to Rp1,386,133 million at Sep 2025, consistent with ordinary option exercises rather than a new grant - a sharp contrast with Q2 2025's MESOP II tranche that more than doubled the entire outstanding option pool in a single grant. Additional paid-in capital grew modestly over the same period (Rp7,155,449 million to Rp7,179,694 million), also consistent with option exercises rather than a fresh issuance.
The Stock Kept Recovering, Now Up 45% From Its Q1 Low
The Q2 2025 post closed at Rp1,775, having recovered barely half of Q1's 39.7% crash. Q3 2025 extended the recovery: Bank Jago's shares closed at Rp2,130 on 30 September 2025, up 20.0% from Rp1,775 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 (30 September 2024, Rp3,050), the stock is still down 30.2% YoY, but the stock has now risen for two straight quarters, up a combined 45.4% from Q1 2025's low of Rp1,465 - though it remains well below the Rp3,200 high this backfill's two-year price window recorded in November 2023, a level the stock hasn't approached since.
The direction of this quarter's move continues to track the direction of the fundamentals more closely than it did for most of 2024 - profit up, ROE at a new high, cost-to-income improving - even as CASA and CAR both moved the wrong way underneath the headline numbers. Whether the market is pricing in continued triple-digit YoY profit growth or simply recovering from an oversold Q1 low isn't something this backfill's data can separate cleanly.
Target Valuation Range
Market cap Rp29.52 trillion (~$1.77 billion), ~3.38x P/B, ~111.2x P/E. Bottom line: getting pricier on a book-value basis for a second straight quarter, even as the earnings-based multiple keeps compressing YoY - the stock is increasingly priced for continued triple-digit profit growth, not for the funding-cost and capital-ratio pressure building underneath it.
Bank Jago's shares closed at Rp2,130 on 30 September 2025, up 20.0% from Rp1,775 three months earlier but still down 30.2% YoY (see above). Issued and fully paid-in capital of Rp1,386,133 million at a Rp100 par value implies approximately 13,861,330,000 shares outstanding (essentially unchanged from Jun 2025), for a market capitalization of approximately Rp29.52 trillion (~$1.77 billion).
| Market cap → book value | Q3 2025 |
|---|---|
| Share price (period-end) | Rp2,130 |
| Shares outstanding | 13,861,330,000 |
| Market capitalization | Rp29.52 trillion (~$1.77 billion) |
| Total equity (book value) | Rp8,742,791M |
| Book value per share | Rp630.68 |
| Peer-multiple sanity check | Q2 2025 | Q3 2025 | Change |
|---|---|---|---|
| P/B | 2.84x | 3.38x | up |
| P/E | 96.8x | 111.2x | up |
P/B»: ~3.38x, using book value» per share of Rp630.68 (Rp8,742,791M total equity ÷ 13,861,330,000 shares) - up from Q2 2025's ~2.84x, as the 20.0% price rally outpaced book value's modest 2.6% growth over the same period, a second straight quarter of re-rating higher after Q1's backfill-low ~2.36x. P/E»: annualizing 9M 2025's basic EPS of Rp14.37 (×4/3, since this is a nine-month cumulative filing), the implied multiple is roughly 111.2x. Using the same annualization method for 9M 2024's basic EPS (Rp6.19) against Sep 2024's Rp3,050 close implies roughly 369.6x a year ago - a substantial YoY compression, though a single quarter's own annualized read (Q1 2025's ~84.2x on a ×4 basis, or H1 2025's ~96.8x on a ×2 basis) isn't directly comparable to this nine-month figure, since each uses a different annualization base - the cleanest comparison is 9M-to-9M, as done here. A full DCF still isn't appropriate, for the same reason every prior post in this backfill has given: the quarterly operating-cash-flow swing has now reversed direction three quarters running (record positive, then sharply negative, then modestly positive again), and the Sharia unit's financing book just more than doubled in a single quarter while its own profit fell - both signs the underlying growth rate is still too volatile to extrapolate with real confidence. The peer-multiple read stays the honest one: P/B has now re-rated higher for two consecutive quarters even as CASA and CAR both moved in the wrong direction, while P/E's read depends heavily on which period is annualized - a bank whose quarterly earnings, cash generation, and now its smallest lending unit all 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 nine-month period ended 30 September 2025 (with 30 September 2024 and 31 December 2024 comparatives), and its "9M 2025 Results Update" investor presentation.