Seven Quarters of Rising Profit, Four Quarters of a Falling Stock
Over these 12 quarters: share price Rp2,900 to Rp795 (-73%); operating income 24.1 to 143.2 Rp billion; operating income margin 6.8% to 17.6%. One graph in actual numbers: bars are the quarter's operating income, over them the share price at quarter-end (left axis) and the operating income margin (right axis); each line is fitted to its own range, so read the timing, not the heights. Prices are adjusted for splits.
The Q2 2026 post left the stock at a two-year low. Q3 repeated that. Net income for the nine months rose 49.7% YoY to Rp298,078 million, a seventh straight quarter of QoQ standalone profit growth (an implied Rp109,008 million in Q3, up 5.5% QoQ). The shares closed 30 September 2026 at Rp795, down 17.6% QoQ, a fourth straight quarterly decline. Capital Adequacy Ratio» fell for a seventh straight quarter to 27.54%, and LAR» rose a full point to 8.7%. The profit engine is intact; the capital and asset-quality cushions beneath it are thinning.
The Prescription
The Q2 post asked for a published capital plan and an end to one related-party counterparty carrying the Sharia book. Q3 answers the second ask on its own: PT BFI Finance Indonesia's Sharia unit fell from 91.46% to 46.50% of the Sharia financing book as third-party financing grew (see Beyond the Usual). It does not answer the first. CAR is 27.54% (Jun 28.38%, Mar 29.93%, Dec 31.63%), a USD 100 million syndicated loan facility is fully drawn and matures on 30 December 2026, and the 9M cost of credit reached 4.5% with a Q3 reading of 4.8%. Bank Jago should publish what CAR level it intends to hold and how it will fund loan growth of 14.5% in nine months against equity growth of 3.5% (see Key Financial Metrics). A stock at ~1.21x book value (see below) gives management room to say so plainly.
Key Financial Metrics
Rp billion; margin is operating income as a percent of net revenue, per quarter. Values are standalone quarters; 9 derived from annual, half-year or nine-month figures (Q4 2023, Q2 2024, Q3 2024, Q4 2024, Q2 2025, Q3 2025, Q4 2025, Q2 2026, Q3 2026).
9M 2026 vs. 9M 2025 - PT Bank Jago Tbk
FX: IDR 17,875 = USD 1 (30 September 2026, the period-end rate in the Bank's own published statements; applied to both periods for consistency). The statements report the Bank on a standalone basis only.
| Metric | 9M 2026 (IDR) | 9M 2026 (USD) | 9M 2025 (IDR) | YoY |
|---|---|---|---|---|
| Net interest and Sharia income ("Net Revenue" equivalent) | Rp2,302,643M | ~$128.82M | Rp1,777,205M | +29.6% |
| Operating income (the filed "laba operasional" line) | Rp386,251M | ~$21.61M | Rp255,590M | +51.1% |
| Income before income tax | Rp383,865M | ~$21.47M | Rp255,448M | +50.3% |
| Income tax expense | -Rp85,787M | -~$4.80M | -Rp56,315M | +52.3%, an expense both periods |
| Net income for the period | Rp298,078M | ~$16.68M | Rp199,133M | +49.7% |
| Earnings per share (basic, full amount) | Rp21.50 | ~$0.001203 | Rp14.37 | +49.6% |
| Impairment provision expense | -Rp883,097M | -~$49.40M | -Rp623,135M | +41.7% |
| Free cash flow (operating cash flow less capex) | Rp1,750,729M | ~$97.94M | n/a | see below |
Isolating Q3 (nine months less the half-year figures already disclosed) implies standalone Q3 net income of about Rp109,008 million, up 5.5% QoQ, on net interest and Sharia income of about Rp812,305 million (+6.5% QoQ) and operating income of about Rp143,167 million (+8.1% QoQ). Operating income here is the filed line; the presentation's own "operating income" (net interest plus fee income, before costs and provisions) is a different, larger figure and isn't used in this table. Net cash from operating activities was Rp2,300,806 million; less Rp6,738 million of fixed-asset and Rp543,339 million of intangible-asset purchases gives free cash flow of Rp1,750,729 million. At a deposit-taking bank that figure moves with deposit and loan flows, so treat it as a liquidity indicator, not a profitability signal. Period-end cash and equivalents were Rp5,693,190 million (~$318.5M), against Rp5,416,023 million at the start of the year. Financing inflows included Rp1,785,240 million of borrowings, the USD 100 million syndication.
| Balance sheet metric | Sep 2026 (IDR, filed statement) | Sep 2026 (USD) | Dec 2025 (IDR) | YTD |
|---|---|---|---|---|
| Total Assets | Rp42,102,096M | ~$2,355.4M | Rp36,507,294M | +15.3% |
| Loans and Sharia financing (gross) | Rp27,875,616M | ~$1,559.5M | Rp24,346,604M | +14.5% |
| Total Liabilities | Rp32,526,147M | ~$1,819.6M | Rp27,380,206M | +18.8% |
| Total Equity | Rp9,138,794M | ~$511.3M | Rp8,825,930M | +3.5%, growing far slower than the balance sheet |
Customer deposits including temporary syirkah funds were Rp28,855,611 million (~$1,614.3M), up 4.4% from Rp27,643,884 million at June: current accounts Rp5,225,498 million, savings Rp10,171,524 million, time deposits Rp13,021,434 million and temporary syirkah funds Rp437,155 million. Gross NPL» rose to 0.87% from 0.61% at Dec 2025, and net NPL to 0.34% from 0.12%.
Net income rose 49.7% YoY and a seventh straight quarter of profit growth is on the books, but the stock fell 17.6% in the quarter to ~1.21x book (see below), CAR slid to 27.54%, LAR rose to 8.7%, and the Sharia book diversified sharply (see Beyond the Usual).
Where Q3 2026's Revenue Went
Net revenue, and how much of it was left as operating profit and net income, in one view. Figures are the same standalone-quarter figures as the metrics table.
Rp billion, Q3 2026. Operating costs are net revenue less operating income; other items & tax are operating income less net income. Standalone quarter; all three figures derived from an annual, half-year or nine-month row.
Key Operational Metrics
Arrow = the way the number moved against the year-earlier period (the table) or the prior quarter (the bullets below); green = good for the bank, red = bad, no colour = the report cannot call it good or bad.
The 3Q 2026 analyst meeting presentation gives the ratio set for the quarter and the nine months:
| Ratio | 9M '25 | FY '25 | 1Q '26 | 2Q '26 | 3Q '26 | 9M '26 |
|---|---|---|---|---|---|---|
| NIM | 8.3% | 8.4% | 8.6% | 8.4% | 8.8% | 8.6% |
| Cost of Fund (IDR, end of period) | 4.4% | 3.8% | 3.5% | 3.5% | 4.0% | 4.0% |
| Cost-to-Income | 58% | 58% | 56% | 57% | 53% | 55% |
| LDR | 98% | 94% | 95% | 96% | 97% | 97% |
| LAR» | 5.9% | 6.6% | 7.5% | 7.7% | 8.7% | 8.7% |
| NPL | 0.4% | 0.6% | 0.8% | 0.8% | 0.9% | 0.9% |
| Cost of Credit / average loan | 3.9% | 4.0% | 4.4% | 4.3% | 4.8% | 4.5% |
| ROA | 1.0% | 1.1% | 1.1% | 1.3% | 1.3% | 1.3% |
| ROE | 4.2% | 4.3% | 5.5% | 6.5% | 6.8% | 6.3% |
| CAR | 32.9% | 31.6% | 29.9% | 28.4% | 27.5% | 27.5% |
The income side improved: NIM rose to 8.8% in Q3 from 8.4% in Q2 and Cost-to-Income fell to 53%. Two cost lines moved the other way. Cost of Funds reversed its decline, up to 4.0% from 3.5%, and cost of credit rose to 4.8%. LAR, a broader asset-quality measure than headline NPL, rose to 8.7% from 5.9% a year earlier, up in every column from 9M '25 to 3Q '26 (8.7% in both 3Q '26 and 9M '26).
- CASA ratio»: 53.4% (Sep 2026, Rp15,397,022M current + savings ÷ Rp28,855,611M total deposits incl. temporary syirkah funds) vs. 52.7% (Jun 2026).
- Loan-to-Deposit Ratio»: 96.6% (Sep 2026, filed gross loans ÷ total deposits incl. syirkah funds; the presentation prints 97%) vs. 96.3% (Jun 2026).
- CAR»: 27.54% (Sep) vs. 28.38% (Jun) - down 0.84 percentage points QoQ, still about 2.8x OJK's 10% minimum, but the seventh straight decline (see The Prescription).
- Fee income: Rp472 billion in the nine months, up 47% from a year earlier per the presentation (Q3 alone was Rp187 billion). The filed other operating income, net line grew 46.6% to Rp472,498 million.
- Related-party loan concentration: combined conventional + Sharia related-party loans were Rp462,217 million, 1.66% of the gross loan book (Jun: Rp498,257 million, 1.87%).
- Undrawn loan commitments: Rp4,762,091M (Sep) vs Rp5,207,084M (Jun) vs Rp5,000,556M (Dec 2025) - down 8.5% QoQ.
- Customers: 19.0 million KYC-ed customers (Sep) vs. 20.1 million (Jun), after the Bank closed 2.6 million dormant accounts in 3Q26 (the presentation's note; earlier closures were 1.2 million in Q4 2025 and 1.6 million in Q2 2026). Digital banking users were 13.1 million. The two customer counts aren't a like-for-like growth series because of the closures.
Beyond the Usual
The Sharia financing book diversified, and the related-party share halved
Last quarter's yellow flag was that one related party made up 91.46% of the Sharia financing book. The book grew again, from Rp362,848 million (Jun 2026) to Rp653,282 million (Sep 2026), +80.0%, but this time most of the growth came from third parties: third-party Sharia financing rose from about Rp30,987 million to Rp349,482 million, while PT BFI Finance Indonesia's Sharia unit's balance fell from Rp331,861 million to Rp303,800 million, or 46.50% of the book. That is a real diversification, and it answers the specific concern from the Q2 post. What the filing doesn't show is why the BFI balance fell, or whether third-party growth will keep the share below one half. Sharia income from related parties was Rp9,651 million, 8.57% of Sharia income.
The related-party time-deposit bucket largely unwound
Time deposits from the related-party bucket of companies sharing ownership with the shareholders fell from Rp1,066,270 million (8.45%) at Jun 2026 to Rp388,266 million (2.98%), down 63.6% in one quarter, after having risen from Rp77,300 million at Dec 2025 (the Q2 post read this bucket as GoTo-affiliated, which is that post's inference, not the filing's wording; see the Q2 post). The same bucket's temporary syirkah placement stayed at Rp100,000 million (22.88% of that product line). Total related-party time deposits are Rp575,268 million, 4.42%. Group-affiliated current accounts were Rp2,457,475 million, 47.03% of all current accounts (Rp2,629,795 million at Dec 2025). The outflow coincided with the Cost of Funds rising to 4.0%, but the filing does not link the two.
Board and management compensation fell while profit rose by half
Combined compensation for the Board of Commissioners and Directors was Rp43,030 million for 9M 2026, down 8.2% from Rp46,851 million in 9M 2025, against net income up 49.7%. The H1 2026 figure was Rp31,576 million, up 8.6% YoY, so the decline appears in the nine-month comparison only; the filing doesn't say why.
The Gofin loan stayed flat, and the MESOP pool was little changed since June
PT Gofin Karya Anak Bangsa's related-party loan held at exactly Rp150,000 million (0.54% of the gross loan book), unchanged since the Q1 2026 post. Conventional related-party loans total Rp158,417 million (0.57%). Employee stock options outstanding were 316,681,600 at Sep 2026, against 318,681,600 at Jun (little changed) and 279,431,600 at Dec 2025 (+13.3% since December): 40,000,000 granted and 2,750,000 lapsed in the nine months.
Funding backstops: a fully drawn USD 100 million facility matures on 30 December 2026
Note 21 of the filing says the Bank signed a short-term syndicated loan facility on 15 December 2025 with a ceiling of USD 100 million, drew the entire ceiling on 9 January 2026 at 3-month SOFR plus a margin, and that it matures on 30 December 2026. Borrowings in USD were Rp1,785,240 million at Sep 2026 against nil at Dec 2025. Undrawn borrowing facilities went from Rp1,667,500 million at Dec 2025 to zero, which is consistent with a fully drawn line. Guarantees issued rose to Rp118,720 million from Rp100,000 million. With loan growth of 14.5% and equity growth of 3.5%, this borrowing falls due within about three months of the quarter end; the filing doesn't say whether it will be repaid, rolled or replaced.
The Stock Fell Another 17.6%, and the Multiple Keeps Compressing
The Q2 2026 post closed at Rp965. Month-end closes after that were Rp1,220 (July) and Rp970 (August) before Rp795 on 30 September 2026, down 17.6% QoQ, a fourth consecutive quarterly decline, and down 62.7% YoY from Rp2,130. The July close was a rebound of 26.4% from June that did not hold. No stock split falls within the window used here, so these are nominal prices.
The pattern is now four quarters of a falling price against rising profit. The two things that changed this quarter, the Sharia concentration easing and the related-party deposits unwinding, are both arguably improvements in disclosure risk, yet the price fell anyway. The disclosed items that moved the wrong way (CAR, LAR, Cost of Funds, cost of credit) are the more likely candidates, though the filing cannot prove which the market responded to.
Target Valuation Range
Verdict: cheaper again. At ~1.21x book (from ~1.48x) and ~27.7x annualized earnings (from ~35.4x), the price fell 17.6% while book value grew 1.2%. No listed peer is shown here, and the CAR trend and LAR rise may justify a discount that the P/E alone doesn't show.
Bank Jago's shares closed at Rp795 on 30 September 2026, down 17.6% from Rp965 three months earlier and down 62.7% 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 Jun 2026).
| Market cap → book value | Q3 2026 |
|---|---|
| Share price (period-end) | Rp795 |
| Shares outstanding | 13,861,330,900 |
| Market capitalization | Rp11.02 trillion (~$616.5 million) |
| Book value (total equity) | Rp9,138,794M |
| P/B» | ~1.21x |
| Peer-multiple sanity check | Q2 2026 | Q3 2026 | Change |
|---|---|---|---|
| P/B» | ~1.48x | ~1.21x | down - price decline (17.6%) outpaced book value's 1.2% growth |
| P/E» (annualized) | ~35.4x (H1 2026 x 2) | ~27.7x (9M 2026 x 4/3) | down - earnings annualized on a longer base and a lower price both pushed it lower |
PT Bank Jago Tbk's published financial statements for the nine-month period ended 30 September 2026 (with 30 September 2025 comparative and 31 December 2025 balance-sheet comparative), and its 3Q 2026 analyst meeting presentation.