The Cheapest This Bank Has Ever Traded, For a Reason Not on the Income Statement
The Q1 2026 post closed on the widest gap this backfill had ever recorded between improving fundamentals and a collapsing share price - net income up 42.3% YoY, the stock down 33.2% QoQ to a new backfill-low valuation. H1 2026 didn't close that gap; it widened it further, on both sides. Net income for the half rose 48.8% YoY to Rp189,070 million, a sixth straight quarter of QoQ standalone profit growth (Rp85,776 million in Q1 to an implied Rp103,294 million in Q2 standalone, up 20.4% QoQ), and net interest and Sharia income grew 27.8% YoY. Capital Adequacy Ratio» kept falling regardless - to 28.38%, a sixth consecutive quarterly decline and the first reading in this backfill's multi-year record to drop below 29%.
The stock did not wait for that story to develop. Bank Jago's shares closed 30 June 2026 at Rp965, down 26.9% quarter-over-quarter from Rp1,320 - a third straight quarterly decline, and a new low for this backfill's entire two-year price window (see below for what that does to the bank's valuation multiples). This quarter's filing is again the abridged "published financial statement" format, accompanied by a "1H 2026 Analyst Meeting" presentation that discloses the full ratio set - NIM held at 8.5%, Cost of Funds fell again to 3.5%, Cost-to-Income improved to 56%, ROA was 1.2%, ROE was 6.0%, and LAR» kept climbing to 7.7% (see Key Operational Metrics for the full trend). What the filed statements do disclose separately is a genuinely new story buried in the footnotes: almost the entire growth in the Sharia Business Unit's financing book this quarter traces to a single related-party counterparty - see Beyond the Usual.
The Prescription
Bank Jago should treat this quarter's valuation as a live opportunity, not background noise: at ~1.48x book value (see below), the market is pricing in something closer to distress than a bank whose net income just grew 48.8% YoY and whose gross NPL» sits at 0.77% - if management genuinely believes the business is as healthy as this quarter's numbers say, a buyback or a clear, published capital plan addressing CAR's now six-quarter decline would do more to close the gap between the numbers and the price than another quarter of silence has. What it should stop doing is letting a single related-party counterparty become the de facto growth engine of an entire loan segment: PT BFI Finance Indonesia's Sharia unit now accounts for 91.46% of the Bank's own Sharia financing book (see Beyond the Usual) - a concentration that would be a serious underwriting-diversification problem even before factoring in the related-party dimension, and one that's gotten worse, not better, in the two quarters since the Q1 2026 post first flagged Gofin's reappearing related-party loan.
Key Financial Metrics
H1 2026 vs. H1 2025 - PT Bank Jago Tbk
FX: IDR 17,880.00 = USD 1 (30 June 2026, the period-end 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 2026 (IDR) | H1 2026 (USD) | H1 2025 (IDR) | YoY |
|---|---|---|---|---|
| Net interest and Sharia income ("Net Revenue" equivalent) | Rp1,490,338M | ~$83.35M | Rp1,166,296M | ✅ +27.8% |
| Operating income | Rp243,084M | ~$13.59M | Rp163,121M | ✅ +49.0% |
| Income before income tax | Rp242,461M | ~$13.56M | Rp163,013M | ✅ +48.7% |
| Income tax expense (current + deferred) | -Rp53,391M | -~$2.99M | -Rp35,944M | +48.5%, an expense both periods |
| Net income for the period | Rp189,070M | ~$10.57M | Rp127,069M | ✅ +48.8% |
| Earnings per share (full amount, basic) | Rp13.64 | ~$0.000763 | Rp9.17 | ✅ +48.7% |
Isolating Q2 2026 on its own (H1 total minus Q1's already-disclosed figures) implies standalone Q2 net income of approximately Rp103,294 million, up 20.4% quarter-over-quarter from Q1's Rp85,776 million - a sixth straight quarter of QoQ profit growth - on standalone net interest and Sharia income of approximately Rp763,025 million (+4.9% QoQ). Net cash flows generated from operating activities were Rp2,820,028 million for H1 2026 (H1 2025: Rp394,244 million, +615.2% YoY) - this swing is a deposit-and-loan-book effect, not a profitability signal: deposit growth outpaced loan growth by a wider margin this half than a year ago, the same mechanical driver behind every large operating-cash-flow move this backfill has recorded for a deposit-taking bank. Free cash flow isn't a meaningful concept here and isn't computed for that reason (see CLAUDE.md's Key Financial Metrics convention for banks). Total cash and cash equivalents at period end were Rp5,223,914 million (~$292.17M), down 9.3% from Q1 2026's Rp5,758,769 million but up 33.3% from H1 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 | Jun 2026 (IDR, filed statement) | Jun 2026 (USD) | Jun 2025 (IDR) | YoY |
|---|---|---|---|---|
| Total Assets | Rp41,422,771M | ~$2,316.85M | Rp32,428,691M | ✅ +27.7% |
| Loans and Sharia financing (gross) | Rp26,624,941M | ~$1,489.10M | Rp21,433,904M | ✅ +24.2% |
| Total customer deposits (incl. temporary syirkah funds) | Rp27,643,884M | ~$1,546.08M | Rp22,431,252M | ✅ +23.2% |
| Total Equity | Rp9,026,450M | ~$504.83M | Rp8,664,469M | +4.2%, still growing far slower than the balance sheet |
Total Liabilities (Jun 2026, per the filed statement, excluding temporary syirkah funds): Rp31,938,210M (~$1,786.24M), up 34.6% YTD from Rp27,380,259M at Dec 2025, tracking loan growth. Gross NPL» rose to 0.77% (Jun 2026, per the filed statements' own regulatory NPL disclosure) from 0.61% (Dec 2025); net NPL rose to 0.25% (from 0.12%) - both still low in absolute terms, but the trend is up, not flat.
H1 2026 net income rose 48.8% YoY to Rp189,070 million, a sixth straight quarter of QoQ standalone profit growth. But the stock fell another 26.9% in the quarter to a fresh two-year low (see below), CAR extended its decline to 28.38% (see The Prescription), and the Sharia Business Unit's financing book grew almost entirely on the back of a single related-party counterparty (see Beyond the Usual).
Key Operational Metrics
This quarter's "1H 2026 Analyst Meeting" presentation discloses the full ratio set, both H1 cumulative and Q2-standalone, alongside the trailing quarters:
| Ratio | 1H '25 | FY '25 | 1Q '26 | 2Q '26 | 1H '26 |
|---|---|---|---|---|---|
| NIM | 8.4% | 8.4% | 8.6% | 8.4% | 8.5% |
| Cost of Fund (IDR, end of period) | 4.1% | 3.8% | 3.5% | 3.5% | 3.5% |
| Cost-to-Income | 58% | 58% | 56% | 57% | 56% |
| LDR | 96% | 94% | 95% | 96% | 96% |
| LAR» | 5.2% | 6.6% | 7.5% | 7.7% | 7.7% |
| NPL | 0.3% | 0.6% | 0.8% | 0.8% | 0.8% |
| ROA | 1.0% | 1.1% | 1.1% | 1.3% | 1.2% |
| ROE | 4.0% | 4.3% | 5.5% | 6.5% | 6.0% |
| CAR | 35.9% | 31.6% | 29.9% | 28.4% | 28.4% |
NIM held essentially flat (8.5% H1 2026 vs. 8.4% H1 2025) even as Cost of Funds kept falling (3.5%, down from 4.1% a year ago) - funding costs improving faster than lending yields compress, a genuinely favorable mix shift. Cost-to-Income improved to 56% for the half from 58% a year ago, and ROE rose to 6.0% from 4.0% - real operating-leverage progress that sits awkwardly next to the stock's 26.9% quarterly decline. LAR (loans-at-risk, a broader asset-quality measure than headline NPL) kept climbing for a sixth straight period, to 7.7% from 5.2% a year earlier - the one ratio moving the wrong direction alongside CAR's own decline, and worth watching alongside the NPL uptick already noted above.
What follows is sourced from the filed financial statements themselves, cross-checked against Bank Jago's own 23 July 2026 press release on H1 2026 performance where the two overlap.
- CASA ratio»: 52.7% (Jun 2026, calculated from Rp14,570,488M current + savings deposits ÷ Rp27,643,884M total deposits incl. temporary syirkah funds, per the filed balance sheet; the Bank's own press release rounds this to 53%) vs. 52.5% (Mar 2026) vs. 49.6% (Dec 2025) - a third straight quarterly improvement.
- Loan-to-Deposit Ratio»: 96.3% (Jun 2026, loans and Sharia financing ÷ total deposits incl. temporary syirkah funds, per the filed statements) vs. 95% (Mar 2026, per the 1Q26 presentation) - a modest uptick as loan growth again slightly outpaced deposit growth.
- CAR»: 28.38% (Jun 2026, per the filed ratio table) vs. 29.93% (Mar 2026) and 31.63% (Dec 2025) - down 1.55 percentage points QoQ, a sixth straight quarterly decline; still roughly 2.8x OJK's 10% minimum, but see The Prescription for why the trend itself is the point.
- Related-party loan concentration: combined conventional + Sharia related-party loans reached Rp498,257 million, 1.87% of the total loan book (Jun 2026) vs. Rp102,744 million, 0.42% (Dec 2025) - a 4.4x jump in a single half; see Beyond the Usual for the two counterparties behind it.
- Undrawn loan commitments: Rp5,207,084M (Jun 2026) vs Rp5,166,773M (Mar 2026) vs Rp5,000,556M (Dec 2025) - up just 0.8% QoQ, a sharp deceleration from Q1's 3.3% growth.
- Customers served: 20.1 million (Jun 2026, per the Bank's press release, including 14.7 million funding customers using the Jago App) - the press release doesn't break this down into the "KYC-verified digital banking and lending customers" figure this backfill has tracked from prior presentations (19.4 million at Mar 2026), so the two aren't directly comparable this quarter.
- Headcount and branch network: still not disclosed, in either the filed statements or this quarter's presentation, continuing the pattern flagged in every prior post in this backfill back to 9M 2023.
Beyond the Usual
A single related-party counterparty now makes up 91% of the entire Sharia financing book
The Sharia Business Unit's financing book grew from Rp91,445 million (Mar 2026) to Rp362,848 million (Jun 2026) - a near-quadrupling in a single quarter, and by far the fastest growth this book has shown anywhere in this backfill. Almost none of it is diversified growth: PT BFI Finance Indonesia's Sharia unit - a related party controlled by Bank Jago's own controlling shareholder - accounts for Rp331,861 million, or 91.46%, of the entire book, up from Rp70,557 million (58.59% of a much smaller Rp120,415 million book) at Dec 2025. In other words, the headline "Sharia financing quadrupled" is really "one related-party counterparty's loan nearly quintupled," and that single relationship is now doing almost all the work in an entire reporting segment. It's fully disclosed in the notes to the financial statements and the Bank remains within Legal Lending Limit requirements for related parties, but a segment this concentrated in one counterparty - related or not - carries a diversification risk the headline "Sharia book growing again" doesn't convey on its own.
A GoTo-affiliated deposit bucket placed over a trillion rupiah in new time deposits and syirkah funds in one half
Time deposits from the related-party bucket labeled "companies with the same ownership as the shareholders" - the same GoTo-affiliated group this backfill has tracked back to Bank Jago's earliest quarters - jumped from Rp77,300 million (0.61% of total time deposits) at Dec 2025 to Rp1,066,270 million (8.45%) at Jun 2026, a 13.8x increase. The same bucket also placed a fresh Rp100,000 million in temporary syirkah funds (mudharabah time deposits) - a product it held none of at Dec 2025, now 31.83% of that entire (small) product line. Combined, this one related-party bucket added over Rp1.1 trillion in new deposit funding in a single half. This cuts the other way from the Sharia-loan concentration above: it's a funding-quality positive (cheap, presumably sticky, group-affiliated liquidity), but it also means a growing share of the Bank's deposit base now depends on one counterparty's treasury decisions rather than a genuinely diversified retail or corporate funding mix - worth watching if that relationship's incentives ever change.
Board and management compensation again grew far slower than profit
Combined compensation for the Board of Commissioners and Directors was Rp31,576 million for H1 2026, up 8.6% from Rp29,065 million in H1 2025 - a far smaller increase than net income's 48.8% growth over the same period, continuing the pattern flagged in the H1 2025 post, which hasn't been individually tracked in the quarters since.
The Gofin related-party loan held exactly flat, rather than growing again
The Q1 2026 post flagged PT Gofin Karya Anak Bangsa's Rp150,000 million related-party loan reappearing after vanishing from an earlier filing. That loan held at exactly Rp150,000 million through Q2 2026 - no further growth this quarter, unlike the much sharper moves in the Sharia-related related-party book above.
A new, smaller MESOP tranche was granted, well below last year's step-change grant
A further 40,000,000 shares were granted under the Bank's employee stock option program in H1 2026, taking total options outstanding from 279,431,600 (Dec 2025) to 318,681,600 (Jun 2026). This is a routine, much smaller addition than the H1 2025 post's step-change 155,525,000-share MESOP II tranche, which more than doubled the pool in a single grant.
The Stock Fell Again, and Book Value Is Catching Up With It
The Q1 2026 post closed at Rp1,320, the steepest single-quarter decline this backfill had recorded. Q2 2026 didn't reverse it - it extended it: Bank Jago's shares closed at Rp965 on 30 June 2026, down 26.9% from Rp1,320 three months earlier, a third consecutive quarterly decline. 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 June 2025, Rp1,775), the stock is down 45.6% YoY, and it now sits 68.4% below the Rp3,050 high this backfill's two-year price window recorded in September 2024 - a new two-year-window low, well past Q1 2026's own then-record low of Rp1,320.
This is now a third straight quarter where the stock fell while net income kept growing - the longest such run this backfill has recorded. Unlike Q1 2026, where CAR's slide below 30% and the newly-visible related-party loan jump were plausible partial explanations, this quarter's two footnote findings (above) only became visible with this filing - they can't explain a price move that happened continuously through the quarter. The more honest read, again, is that the market is pricing in either a broader reassessment of Indonesian digital-bank valuations or a level of skepticism about growth durability that the disclosed numbers alone don't fully justify - though a bank now trading below 1.5x book value (see below) while growing net income nearly 50% YoY is a harder gap to explain away on macro grounds alone than the prior quarter's was.
Target Valuation Range
Bottom line: this is now the cheapest this bank has traded in this entire backfill on a book-value basis, and the gap between the price and the fundamentals is the widest this backfill has recorded - undervalued, unless the newly-visible related-party concentration (above) is worth a real discount.
Bank Jago's shares closed at Rp965 on 30 June 2026, down 26.9% from Rp1,320 three months earlier and down 45.6% 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 2026).
| Market cap → book value | Q2 2026 |
|---|---|
| Share price (period-end) | Rp965 |
| Shares outstanding | 13,861,330,900 |
| Market capitalization | Rp13.38 trillion (~$748.1 million) |
| Book value (total equity) | Rp9,026,450M |
| P/B» | ~1.48x |
| Peer-multiple sanity check | Q1 2026 | Q2 2026 | Change |
|---|---|---|---|
| P/B» | ~2.05x | ~1.48x | ✅ down - a new backfill-low, price decline (26.9%) vastly outpaced book value's modest 2.3% growth |
| P/E» (annualized) | ~96.8x (H1 2025 basis) | ~35.4x | ✅ down sharply - earnings growth and price decline both pushed the multiple lower together |
A full DCF still isn't appropriate, for the reason every prior post in this backfill has given: a deposit-taking bank's cash flow is dominated by loan and deposit balance movements rather than genuine free cash generation, so a multi-year cash-flow projection wouldn't capture the business's real earnings power the way NIM, ROA, ROE, and CAR already do - and CAR's continued slide (now six straight quarters) adds a genuine capital-adequacy variable a static projection can't easily capture either. The peer-multiple read is now the starkest this backfill has produced: a bank whose profit grew nearly 50% YoY and whose gross NPL sits at a still-low 0.77%, trading at under 1.5x book value and roughly 35x annualized earnings, is priced closer to a distressed lender than a growing one. The one genuine complication is this quarter's two related-party findings - a market that's seen the same footnotes this post just read may be discounting the stock for exactly that reason, not purely on macro sentiment.
PT Bank Jago Tbk's published financial statements for the six-month period ended 30 June 2026 (with 30 June 2025 comparative and 31 December 2025 balance-sheet comparative), and its 23 July 2026 press release on H1 2026 performance.