From Sitting on Deposits to Lending Almost All of Them
PT Bank Seabank Indonesia's earlier quarters told a story of a bank funded far beyond what it was choosing to lend - by June 2023 its loan-to-deposit ratio» had fallen to 60.9% (see the June 2023 post), with a shrinking loan book sitting next to a growing deposit base. This filing, covering the quarter ended March 31, 2025 and signed by the bank's directors in Jakarta on May 15, 2025, shows that gap has closed dramatically: loans grew 10.3% in three months alone, to Rp24.71 trillion, while total deposits grew a much slower 1.5%. The loan-to-deposit ratio has now crossed 91% - not the "plenty of room to lend" bank of two years ago, but one pushing hard against its funding base.
The bet is the same one it's always been: gather cheap deposits through Sea Limited's Shopee/Garena-linked distribution, then lend them back out at a rate few traditional branch networks can match. What's changed is the willingness to actually run that loop at full speed - and, encouragingly, credit quality hasn't paid the price for it yet: gross NPL» actually fell to 1.57%, the lowest level recorded anywhere in this blog's SeaBank coverage. The real cost of growing this fast is showing up somewhere else instead - in a capital-adequacy ratio that's thinning quickly as the loan book scales.
The Prescription
SeaBank has finally started doing the thing its H1 2023 numbers implied it should: putting its deposit base to work. Loans grew from Rp22.40 trillion at year-end 2024 to Rp24.71 trillion in a single quarter, and net income more than doubled year-on-year to Rp96.7 billion. The lending engine that was proven to price risk well is now actually being run at scale, without the credit-quality slippage a reader might expect from growth this fast. The next move is sustaining that pace without letting the capital cushion run out from under it.
What it should stop doing: letting risk-weighted assets outgrow capital at the current pace. KPMM (capital adequacy) fell from 33.17% to 24.62% year-on-year as risk-weighted assets grew 46.4% against total capital growth of just 8.7% (see Beyond the Usual), and the loan-to-deposit ratio at 91.32% leaves very little funding headroom left to keep growing loans this fast without either raising more deposits or slowing down. Credit quality holding up is the good news this quarter; the balance sheet's capacity to keep funding this growth rate is the actual constraint now.
Key Financial Metrics
Q1 2025 vs. Q1 2024 (P&L, three months ended March 31), and Mar 2025 vs. Dec 2024 (balance sheet) - bank-only ("Individual")
FX: IDR 16,560 = USD 1 (March 31, 2025 close, applied throughout for consistency).
| Metric | Q1 2025 (IDR) | Q1 2025 (USD) | Q1 2024 (IDR) | YoY |
|---|---|---|---|---|
| Net Interest Income ("Net Revenue" equivalent) | Rp1,695,065M | ~$102.4M | Rp1,245,077M | ✅ +36.1% |
| Operating Income | Rp124,163M | ~$7.5M | Rp62,499M | ✅ +98.7% |
| Net Income | Rp96,742M | ~$5.8M | Rp51,588M | ✅ +87.5% |
| Balance sheet metric | Mar 2025 (IDR) | Mar 2025 (USD) | Dec 2024 (IDR) | Change |
|---|---|---|---|---|
| Total Assets | Rp37,387,868M | ~$2.26B | Rp34,587,884M | ✅ +8.1% |
| Loans (Kredit yang diberikan) | Rp24,707,880M | ~$1.49B | Rp22,403,124M | ✅ +10.3% |
| Total Deposits (Giro + Tabungan + Deposito) | Rp27,057,771M | ~$1.63B | Rp26,653,389M | ➖ +1.5% |
| Total Liabilities | Rp30,913,170M | ~$1.87B | Rp28,228,942M | ➖ +9.5% |
| Total Equity | Rp6,474,698M | ~$391.0M | Rp6,358,942M | ✅ +1.8% |
This is the bare regulatory quarterly-publication format Indonesian banks are required to file; there is no cash flow statement. Deposits are the sum of the filing's own Giro, Tabungan, and Deposito lines, which reconcile cleanly against Total Liabilities in this filing (unlike the derived estimate needed for the June 2023 quarter).
Loans grew more than six times faster than deposits this quarter - the loan-to-deposit ratio did almost all of its work on the asset side, not by deposits shrinking - and credit quality held, not cracked, under that pace.
Key Operational Metrics
Funding & Liquidity
- Loan-to-deposit ratio (LDR): 91.32% (Mar 2025), up sharply from 74.29% (Mar 2024) and from 84.05% at year-end 2024 (Rp22,403,124M / Rp26,653,389M, per the December 2024 post) - a complete reversal from the sub-61% ratio SeaBank was running less than two years earlier.
Credit Quality
- NPL ratio - gross: 1.57% (Mar 2025), down from 2.02% (Mar 2024) on a YoY basis and down from 1.74% at year-end 2024 (per the December 2024 post) - the lowest gross NPL level recorded anywhere in this blog's SeaBank coverage, and a genuinely reassuring sign given how fast the loan book just grew.
- NPL ratio - net: 0.15% (Mar 2025), down from 0.18% (Mar 2024), kept low by continued heavy provisioning.
- CAR» / KPMM: 24.62% (Mar 2025), down from 33.17% a year earlier - still comfortably above the regulatory minimum, but the buffer is shrinking as risk-weighted assets grow faster than capital (ATMR nearly doubled YoY to Rp24.35 trillion against total capital that grew only ~8.7%).
Profitability & Efficiency
- NIM»: 19.28% (Q1 2025), up from 15.41% (Q1 2024) - still an extraordinarily high margin for a bank, well above Bank Mandiri's 5.16% NIM in a comparable period.
- ROA: 1.40% (Q1 2025), up sharply from 0.82% (Q1 2024).
- ROE: 6.74% (Q1 2025), up from 3.88% (Q1 2024) - still modest for a bank running a 19%+ NIM, but the clearest sign yet that the margin is finally reaching shareholders rather than being absorbed entirely by provisioning and cost.
- BOPO»: 94.20% (Q1 2025), down from 96.12% (Q1 2024) - continuing to improve off the near-100% level seen in mid-2023.
- Cost-to-Income Ratio» (CIR): 20.62% (Q1 2025), down from 28.77% (Q1 2024) - a real efficiency gain, consistent with the trend since June 2023.
Not available in this filing: a segment or product-level breakdown of the loan book, transacting-user or merchant counts, or a deposit-cost (funding rate) disclosure - SeaBank continues to report as a single banking entity with no presentation deck, press release, or call transcript located for this quarter.
Beyond the Usual
The capital buffer is shrinking as the loan book outgrows it
KPMM (capital adequacy) fell from 33.17% to 24.62% year-on-year, driven almost entirely by risk-weighted assets (ATMR) growing 46.4% - from Rp16.62 trillion to Rp24.35 trillion - while total capital grew only 8.7%. SeaBank remains far above the regulatory minimum, but a bank whose loan book is compounding this quickly will need either fresh capital or a slower growth rate within a few more quarters if it wants to keep the same margin of safety it's had since Sea Limited's last capital injection.
An FX swap position appears on the books for the first time
SeaBank's spot-and-derivatives schedule, which showed a flat zero across every line as recently as June 2023, now carries a Rp1.11 trillion notional FX swap position (trading purpose) with a Rp2,271M receivable value. This is a genuinely new development - the bank had zero derivative exposure of any kind through mid-2023 - though it remains small relative to the balance sheet and is disclosed for hedging/trading purposes rather than as a standalone risk position.
Reserve coverage against earning assets keeps climbing ahead of realized defaults
The bank's loan-loss reserve (CKPN) against earning assets rose to 8.62% at Q1 2025 from 8.11% a year earlier, against a net NPL ratio of just 0.15% and a gross NPL ratio that actually fell to 1.57% (see above) - reserves running more than 50 times the realized net-default rate even as the underlying credit metrics improved. That reads less like complacent reserving and more like a bank building precautionary buffer ahead of a loan book it knows is scaling quickly.
Undrawn credit facility commitments have nearly quadrupled year-on-year, though they held flat this quarter
Undrawn credit facilities were Rp1.88 trillion at Q1 2025 - up from just Rp0.50 trillion a year earlier (Mar 2024), a 276% increase - though essentially flat versus Rp1.99 trillion at year-end 2024. Both periods are entirely uncommitted (the filing's own "Committed" sub-line is zero in both), meaning SeaBank retains full discretion to decline a drawdown. This off-balance-sheet exposure is worth tracking as a leading indicator of near-term loan growth, since these facilities convert into on-balance-sheet loans as customers draw on them.
Target Valuation Range
No numeric valuation range is computable for SeaBank: it has no independently traded equity or debt, so no share price, market cap, or P/E/P/B multiple exists to anchor one.
SeaBank Indonesia has no independently traded equity or debt - Sea Limited (through PT Danadipa Artha Indonesia, 85%) and PT Koin Investama Nusantara (15%) remain its only two shareholders, and neither has floated any stake publicly. There is no share price, market capitalization, or P/E or P/B multiple that can honestly be built for this entity, so none is estimated here. Sea Limited itself trades on the NYSE (ticker SE), but that reflects the entire Sea Group - gaming, e-commerce, and digital financial services together - not SeaBank Indonesia's standalone economics, and a group-level multiple would misrepresent both.
A bank that just grew loans 10.3% in a single quarter while ROE more than doubled year-on-year and credit quality actually improved is clearly executing on the plan - the open question now isn't whether it can underwrite this fast without defaults rising, it's whether its capital base can keep funding growth at this pace without either slowing down or raising fresh capital.
PT Bank Seabank Indonesia's quarterly published financial statement ("Laporan Posisi Keuangan Triwulanan"), bank-only/individual basis, for the period ended March 31, 2025, signed by the bank's board of directors in Jakarta on May 15, 2025, per Indonesian Financial Services Authority (OJK) bank transparency and publication regulations.