A Profit Beat That Came From the Cost Lines, Not From Growth
Over these 12 quarters: share price Rp1,205 to Rp920 (-24%); profit before tax 574 to 606 Rp billion; profit before tax margin 23.1% to 34.1%. One graph in actual numbers: bars are the quarter's profit before tax, over them the share price at quarter-end (left axis) and the profit before tax margin (right axis); each line is fitted to its own range, so read the timing, not the heights. Prices are adjusted for splits.
BFI Finance's third quarter was a cost story. Profit before tax for Q3 alone rose 21.5% year-over-year to Rp606,060M while total income grew just 3.4% to Rp1,775,249M, so the profit margin widened to 34.1% from 29.1%. The nine-month figures tell the same story more mildly: net income rose 12.5% to Rp1,313,301M on total income up 3.6% to Rp5,199,849M. The previous quarter's post showed a credit-cost recovery without growth; this quarter extends it. The company set aside and wrote off about Rp59bn less for credit losses than a year ago, and paid about Rp32bn less interest, while salaries and administration rose about Rp42bn.
Credit costs sit on two lines
Provisions for financing receivables fell 4.2% to Rp264,399M for Q3 alone, but the larger drop was in other expenses, which hold write-offs of receivables in the settlement process: Rp50,158M against Rp97,831M a year earlier. Together the two lines fell 15.9% to Rp314,557M, about 55% of the Rp107bn profit gain. The press release says cost of credit kept improving, but neither it nor the statements give a Cost of Credit figure this quarter, so this is the closest measure available.
Cheaper funding added to it
Interest expense fell 13.3% to Rp207,296M for Q3 alone, as bonds were repaid and replaced with bank loans (see Beyond the Usual). That is another Rp32bn of the gain.
The Prescription
BFI should publish one combined credit-cost figure each quarter, covering provisions and write-offs together, with the quarter's own number beside it. Right now a reader has to add a provision line to a write-off line buried in other expenses to see what lending losses cost, and this quarter that arithmetic is the whole story. The company's own Cost of Credit ratio, which earlier posts used, is absent from the statements and press release; a quarter that rests this heavily on credit costs should state it.
What BFI should stop doing: leaving the restructured-loan balance out of the financing-receivables note. It has been missing for ten straight filings, through a stretch in which credit costs swung up and then down by large amounts. Without it, a reader cannot tell whether the improvement comes from the broader book or from accounts that were restructured and kept off the late-payment lists.
Key Financial Metrics
Rp trillion; margin is profit before tax 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).
Nine months ended 30 September 2026 vs. nine months ended 30 September 2025
FX: Rp17,885 = USD 1 (30 September 2026 close, the period-end date), following the convention used in earlier quarters.
| Metric | 9M 2026 (IDR) | 9M 2026 (USD) | 9M 2025 (IDR) | YoY |
|---|---|---|---|---|
| Total Income ("Net Revenue" equivalent) | Rp5,199,849M | ~$290.7M | Rp5,017,903M | +3.6% |
| Profit Before Tax ("Operating Income" equivalent) | Rp1,628,745M | ~$91.1M | Rp1,439,670M | +13.1% |
| Net Income | Rp1,313,301M | ~$73.4M | Rp1,167,181M | +12.5% |
| Total Cash and Cash Equivalents | Rp1,237,048M | ~$69.2M | Rp1,426,823M | -13.3% |
Profit before tax remains the closest operating-income equivalent for this lender, as established in earlier quarters. The gap between income growth (+3.6%) and profit growth (+13.1%) opened on the expense side: total expenses were flat at Rp3,571,104M against Rp3,578,233M, because interest expense fell 8.6% and the combined provision and write-off lines fell 4.6%, enough to absorb a 5.5% rise in salaries and a 6.6% rise in general and administrative costs. Basic earnings per share rose to Rp89 from Rp77, ahead of net income's own growth because the weighted share count fell to 14,772,164,708 from 15,256,169,974 as the company kept buying back stock. Operating cash flow more than doubled to Rp1,728,172M from Rp811,887M, yet total cash fell 13.3% to Rp1,237,048M.
| Balance sheet metric | 30 Sep 2026 (IDR) | 30 Sep 2026 (USD) | 30 Sep 2025 (IDR) | YoY |
|---|---|---|---|---|
| Total Assets | Rp24,882,622M | ~$1,391.3M | Rp25,429,044M | -2.1% |
| Financing Receivables (net) | Rp22,183,124M | ~$1,240.3M | Rp22,344,109M | -0.7% |
| Total Liabilities | Rp13,468,749M | ~$753.1M | Rp14,536,448M | -7.3% |
| Fund Borrowings (net) | Rp11,331,420M | ~$633.6M | Rp10,074,448M | +12.5% |
| Securities Issued (bonds, net) | Rp883,709M | ~$49.4M | Rp3,323,828M | -73.4% |
| Total Equity | Rp11,413,873M | ~$638.2M | Rp10,892,596M | +4.8% |
Debt-to-equity» (fund borrowings plus bonds, over equity, following the convention of earlier quarters) came in at roughly 1.07x, down from 1.18x at the end of June and 1.23x a year earlier. The company's own gearing ratio» reads 1.07x against 1.28x at December 2025. Equity grew 4.8% while total debt fell 8.8% from a year earlier (Rp12,215,129M against Rp13,398,276M), and its mix changed sharply: bonds fell to Rp883,709M as tranches were repaid at maturity, and bank borrowings rose 12.5% to replace part of them.
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 trillion, Q3 2026. Operating costs are net revenue less profit before tax; tax & other items are profit before tax 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, or the prior quarter where only that is given); green = good for the company, red = bad, grey = flat.
- New financing originations: Rp5.6 trillion in Q3 alone, up 9.1% quarter-over-quarter (working capital Rp3.7 trillion, up 9.0%; investment financing Rp970.1bn, up 19.1%). Motor vehicles were 58.1% of the financing portfolio at the end of September, car financing through partner showrooms 18.5%, heavy equipment 14.4% and property and other 9.0%. No year-over-year figure is given for the quarter alone.
- Managed receivables (including off-balance-sheet joint financing): Rp26.8 trillion at period-end, against Rp26.5 trillion at the end of June.
- Non-Performing Financing (NPF)»: 1.33% gross and 0.21% net, down from 1.55% gross at 30 September 2025 and from 1.39% gross at December 2025, against an industry gross of 3.04% (net 0.83%).
- Return on average assets: 8.7% for the nine months, against 7.7% in the 9M 2025 press release. This is the press-release basis, not the after-tax figure earlier posts used (6.2% for 9M 2025).
- Return on average equity: 15.8% for the nine months, against 14.7% in the 9M 2025 press release.
- Cost of funds: 6.8%, from 6.9% in the prior quarter.
- Cost of Credit: not disclosed this quarter (see The Prescription above).
- Earnings per share: Rp89 basic for the nine months against Rp77 a year earlier (see Key Financial Metrics above).
Delinquency is steady and slightly better than the prior year-end. The aging table in the financing-receivables note puts 80.63% of the book as current against 80.56% at December 2025, and loans over 180 days past due at 0.22% against 0.27%. The stage-3 gross balance (the most severely overdue financing) is Rp353,840M against Rp364,021M at December, while the total allowance rose to Rp1,071,752M from Rp980,631M. The lower credit costs above therefore sit alongside a book that is not deteriorating, which is the more reassuring reading.
Three Segments, Two Gains and a Rebound
The company reports Cars, Motorcycles, and Others on the same basis as in the H1 2026 filing. The three segments add up to the consolidated total income and profit before tax, so no part of the profit sits outside them.
Cars
Rp billion; margin is segment profit before tax as a percent of segment total income, per quarter. Revenue is the segment total income (segment note); profit is the segment profit before tax. Values are standalone quarters; some are derived from half-year, nine-month or full-year figures in the filings. Shows the 11 quarters the segment's definition and disclosures allow.
Cars is still the largest segment: Rp3,360,346M of income for the nine months (64.6% of total), down 1.6% from Rp3,416,622M, but profit before tax rose 12.2% to Rp1,136,457M from Rp1,012,797M, lifting its margin to 33.8% from 29.6%. The saving came from costs: segment operating expenses fell to Rp1,670,409M from Rp1,817,596M and its impairment charge to Rp553,480M from Rp586,229M. Q3 alone (nine months less the half-year's Rp733,024M) was Rp403,433M, up 7.4% from Rp375,708M.
Motorcycles
Rp billion; margin is segment profit before tax as a percent of segment total income, per quarter. Revenue is the segment total income (segment note); profit is the segment profit before tax. Values are standalone quarters; some are derived from half-year, nine-month or full-year figures in the filings. Shows the 11 quarters the segment's definition and disclosures allow.
Motorcycles grew income 18.9% to Rp900,007M (17.3% of total) and profit before tax 30.8% to Rp342,201M from Rp261,610M. Q3 alone was Rp124,809M against Rp78,465M a year earlier, a 59.1% rise. One caution: the segment's impairment charge rose 44% to Rp166,972M from Rp115,950M, so its growth came with a heavier credit cost than Cars carries.
Others
Rp billion; margin is segment profit before tax as a percent of segment total income, per quarter. Revenue is the segment total income (segment note); profit is the segment profit before tax. Values are standalone quarters; some are derived from half-year, nine-month or full-year figures in the filings. Shows the 11 quarters the segment's definition and disclosures allow.
Others grew income 11.2% to Rp939,496M (18.1% of total), but profit before tax fell 9.2% to Rp150,087M from Rp165,263M, as operating expenses rose 20.6% to Rp639,433M. The quarter itself reversed the trend: Q3 alone was Rp77,818M against Rp44,521M a year earlier (+74.8%), after Rp24,636M in Q2 and Rp47,633M in Q1. That ends the run of standalone deterioration flagged in each of the last four posts (9M 2025, FY2025, Q1 2026 and H1 2026), though one strong quarter does not yet undo the nine-month decline.
All three segments grew profit in Q3 alone, by Rp27.7bn (Cars), Rp46.3bn (Motorcycles) and Rp33.3bn (Others), summing to the Rp107.4bn consolidated gain. For the first time in the last several posts the profit recovery is not a two-segment story.
Beyond the Usual
The restructured-loan balance stays missing for a tenth straight filing
H1 2024 removed the restructured-loan balance from the financing-receivables note, and neither 9M 2024, FY2024, Q1 2025, H1 2025, 9M 2025, FY2025, Q1 2026 nor H1 2026 restored it. This quarter's note again breaks the book down by aging bucket and credit-risk stage without a restructured-loan line; the only mention is the accounting policy text. It matters more now: credit costs fell by Rp59bn in a quarter, and the missing balance is the one disclosure that would show whether restructured accounts are part of the reason.
United Tractors: the balance fell back, and the maturity date moved
The related-party PT United Tractors Tbk facility, flagged since Q1 2020, had an unexpected rise in its drawn balance last quarter. This quarter the balance fell back to Rp169,207M from Rp173,733M at the end of June, against an unchanged Rp1,250,000M facility limit. The maturity date, however, now reads 24 September 2029; the H1 2026 filing gave 12 June 2029. The filing does not say why the date moved by about three and a half months, or whether the loan was amended.
Bank Jago is now lender, depositor and loan buyer at once
Related-party borrowings from Bank Jago rose to Rp312,029M from Rp102,643M at December 2025, while BFI also keeps Rp153,125M in cash and time deposits at the same bank (Rp4,838M at December). On top of that, Jago buys financing from BFI through joint financing»: the off-balance-sheet balance rose 21.6% to Rp3,431,735M from Rp2,821,452M, under a Rp5,000,000M facility running to 5 August 2027 in which BFI funds about 1% and the bank 99%. Finance income from Jago was Rp2,825M against Rp1,525M in the nine months to September 2025. Every one of these is disclosed and at stated terms, but the concentration of funding, deposits and loan sales in a single related bank grows with each quarter.
The chairman cut his stake by 26 million shares
President Commissioner Francis Lay held 312,908,180 shares at 30 September 2026 against 338,908,180 at December 2025, a reduction of 26,000,000. Three directors added 4,183,000 shares between them, so total board holdings fell to 375,926,680 shares (2.51% of those outstanding) from 397,743,680. The filing does not say whether the shares were sold or transferred.
Four new bank facilities were signed as the bonds ran off
Securities issued (bonds) fell to Rp883,709M from Rp3,225,459M at December 2025, with Rp2,345,300M of bonds repaid in the nine months; the latest tranche repaid, Rp200,000M of Shelf-Registered Bonds VI 2024 Series B, matured on 25 September 2026. New bank facilities signed in the quarter total Rp1,650,000M: Rp750,000M with Bank Danamon (30 July), Rp250,000M with CTBC (28 August), Rp350,000M with DBS (28 August) and Rp300,000M with KEB Hana (16 September). The foreign-currency borrowing also shrank, with US dollar loans at Rp1,351,473M against Rp2,449,962M at December and the syndicated loan at Rp305,966M against Rp1,006,920M, while rupiah borrowings rose to Rp9,837,224M from Rp7,776,651M. A rupiah-heavy funding base carries less exchange-rate risk, and the cost of funds came down to 6.8% from 6.9%.
Buybacks continued and no dividend was paid in the quarter
Treasury shares stand at 290,000,000, with 76,096M of cash spent on buybacks in the nine months against 15,573M a year earlier. Shares outstanding net of treasury are unchanged since Q1 2026 at 14,749,383,620. The final FY2025 dividend of Rp516,229M (Rp70 per share for the year) was paid on 18 June 2026, and nothing was paid in Q3. Trinugraha Capital still holds 52.13%.
Target Valuation Range
Richer than its own recent history, and now close to the banks we follow on book value. At Rp920 the shares trade at about 1.19x book and 7.85x trailing earnings, the highest for both of the quarter-ends compared below, though still below BCA on both and above Mandiri and BRI on earnings.
The stock rose 25.2% in the quarter from Rp735 at the end of June. Using 14,749,383,620 shares outstanding net of treasury and the Rp920 closing price at 30 September 2026:
| Market cap buildup | Q3 2026 |
|---|---|
| Share price (period-end) | Rp920 |
| Shares outstanding | 14,749,383,620 |
| Market capitalization | Rp13,569,433M (~$758.7M) |
| Book value (total equity) | Rp11,413,873M |
| P/B» | ~1.19x |
| Peer-multiple sanity check | Q2 2026 | Q3 2026 | Q3 2025 |
|---|---|---|---|
| P/E» (TTM) | ~6.58x | ~7.85x | ~7.11x |
| P/B | ~0.99x | ~1.19x | ~1.05x |
P/E uses trailing-twelve-month net income of Rp1,727,610M (FY2025's Rp1,581,490M, less 9M 2025's Rp1,167,181M, plus 9M 2026's Rp1,313,301M). The year-ago column uses the 9M 2025 post's own share count of 15,019,632,320 and Rp765 close. The stock closed a quarter above its book value for the first time since September 2025, after three consecutive quarter-ends below it (flagged at FY2025). Over the trailing two years (October 2024 through September 2026) the month-end closes ranged from Rp690 (May 2026) to Rp990 (October 2024). A 25.2% price rise against profit growth of 19.6% in the quarter (Q3 net income Rp484,392M against Rp404,957M) means part of the move is a higher multiple rather than only higher earnings.
How BFI Compares With the Other Lenders We Follow
| Lender | Figures as of | P/B | P/E (basis) | ROE (basis) |
|---|---|---|---|---|
| BFI Finance (Indonesia) | Sep 2026 | ~1.19x | ~7.85x (TTM) | 15.8% (nine months, as reported) |
| Bank Mandiri (Indonesia) | Sep 2026 | ~1.27x | ~5.84x (TTM) | 23.62% (nine months, bank-only, as filed) |
| Bank Rakyat Indonesia (Indonesia) | Jun 2026 | ~1.29x | ~6.76x (TTM) | 18.50% (first half) |
| Bank Central Asia (Indonesia) | Sep 2026 | ~2.6x | ~12.6x (TTM) | 23.9% (nine months, bank-only) |
| Bank Jago (Indonesia) | Sep 2026 | ~1.21x | ~27.7x (annualised nine months) | 6.3% (nine months) |
Each row is that company's own latest post, so the dates differ except BFI, Mandiri, BCA and Jago, which share the September 2026 quarter. The P/E and ROE bases are labelled and differ, so small gaps between rows should not be read as meaningful. BFI is a vehicle lender, not a deposit-taking bank, and Jago is also one of its funding partners.
What it shows: on book value BFI (~1.19x) now sits just under Jago and the two big state banks, and far below BCA, while earning a 15.8% return on equity that is above Jago's and below the three large banks'. On earnings it is pricier than Mandiri and BRI (~5.84x and ~6.76x), though cheaper than BCA and Jago. A lender with lower returns than the large banks trading at a similar book multiple is priced for continued improvement in credit costs, which is the part of this quarter's profit the filing explains least.
PT BFI Finance Indonesia Tbk's unaudited consolidated financial statements for the nine-month period ended 30 September 2026 (with comparative figures for 30 September 2025 and 31 December 2025) and the company's press release dated 30 October 2026.