The Turnaround Keeps Compounding
This is SeaBank Indonesia's filing for the quarter ended March 31, 2026, signed by the bank's directors in Jakarta on May 15, 2026. It follows directly from the FY2025 post, which showed a bank that had finally turned its unusually high net interest margin into real, growing profit - while flagging that a striking share of both its deposit base and its expense base flows through related Sea Group entities rather than arm's-length counterparties.
Q1 2026 extends the profit trend further and faster than any prior quarter in this backfill: net income nearly quadrupled year-on-year to Rp375.6 billion, and ROE hit 24.05% - roughly double where it stood a year ago and more than triple where it stood two years ago. The lending side of the business keeps compounding on the same formula (high-NIM» digital lending, tightly managed cost ratios), but the deposit side of the balance sheet moved in a way that deserves the same scrutiny the FY2025 post gave it - current accounts (Giro) jumped 91.7% year-on-year, the fastest-growing funding line on the balance sheet, and the FY2025 annual report already showed 82% of that specific line was related-party money as of December 2025 (see Beyond the Usual in that post). SeaBank's quarterly publication format doesn't carry the same related-party footnote, so this quarter's Giro number can't be split the same way - but the trend is exactly the kind of funding growth a reader shouldn't take at face value without that context.
The Prescription
SeaBank has now delivered four consecutive quarters of QoQ standalone profit growth on a formula it's proven works: price the loan book aggressively (NIM above 20% for a third straight quarter), keep provisioning growth roughly in line with income growth, and let operating leverage do the rest (BOPO» fell to 85.37%, the best in this entire backfill). The move that compounds from here is the same one flagged in the FY2025 post: convert this profitability into a genuinely diversified, retail-sourced deposit franchise, since the loan-to-deposit ratio» easing back to 88.95% this quarter came from deposits (+8.6% QoQ) outrunning loans (+8.3% QoQ) rather than from a deliberate shift in funding mix - and a large share of that deposit growth, per the FY2025 annual report, still looks like it's coming from inside the Sea Group ecosystem rather than from new retail customers.
What it should stop doing: letting capital adequacy keep thinning without comment. CAR/KPMM fell to 21.88% this quarter from 24.62% a year earlier - the fourth straight year-on-year decline in this backfill (from 38.75% in H1 2023) - as risk-weighted assets keep growing faster than the capital base. Still well above the regulatory minimum, but a bank compounding net income this fast at over 20% ROE has every ability to retain more of it or raise fresh capital before the buffer becomes a genuine constraint on future loan growth, rather than let the ratio keep drifting down quarter after quarter.
Key Financial Metrics
Q1 2026 vs. Q1 2025 (P&L, three months ended March 31), and Mar 2026 vs. Mar 2025 (balance sheet) - bank-only ("Individual")
FX: IDR 16,994.5 = USD 1 (March 31, 2026 close, for Q1 2026 figures); IDR 16,560 = USD 1 (March 31, 2025 close, for Q1 2025 comparatives).
| Metric | Q1 2026 (IDR) | Q1 2026 (USD) | Q1 2025 (IDR) | YoY |
|---|---|---|---|---|
| Net Interest Income ("Net Revenue" equivalent) | Rp2,652,271M | ~$156.1M | Rp1,695,065M | ✅ +56.5% |
| Operating Income | Rp481,584M | ~$28.3M | Rp124,163M | ✅ +287.8% |
| Net Income | Rp375,578M | ~$22.1M | Rp96,742M | ✅ +288.2% |
| Balance sheet metric | Mar 2026 (IDR) | Mar 2026 (USD) | Mar 2025 (IDR) | YoY |
|---|---|---|---|---|
| Total Assets | Rp49,721,394M | ~$2.926B | Rp37,387,868M | ✅ +33.0% |
| Loans (Kredit yang diberikan) | Rp34,796,262M | ~$2.047B | Rp24,707,880M | ✅ +40.8% |
| Total Deposits (Giro + Tabungan + Deposito) | Rp39,120,348M | ~$2.302B | Rp27,057,771M | ✅ +44.6% |
| Total Liabilities | Rp42,361,225M | ~$2.492B | Rp30,913,170M | ➖ +37.0% |
| Total Equity | Rp7,360,169M | ~$433.1M | Rp6,474,698M | ✅ +13.7% |
Deposits (+44.6% YoY) grew faster than loans (+40.8% YoY) for the first time in three quarters, easing the loan-to-deposit ratio back down slightly - but the fastest-growing single deposit line, current accounts (Giro, +91.7% YoY), is exactly the line the FY2025 annual report showed was 82% related-party money as of the prior quarter-end (see Beyond the Usual in that post).
Key Operational Metrics
Funding & Liquidity
- Loan-to-deposit ratio (LDR): 88.95% (Mar 2026), down from 91.32% (Mar 2025) and down from 92.32% at the end of FY2025 - a slight easing after four straight quarters of the ratio climbing, though still far above the 60.88% SeaBank reported in its first-ever filing in H1 2023.
Credit Quality
- NPL» ratio - gross: 1.56% (Mar 2026), essentially flat from 1.57% (Mar 2025).
- NPL ratio - net: 0.10% (Mar 2026), down from 0.15% (Mar 2025) - the lowest net NPL ratio in this entire backfill.
- CAR» / KPMM (capital adequacy): 21.88% (Mar 2026), down from 24.62% (Mar 2025) and down further from 23.29% at FY2025-end - a fourth straight year-on-year decline (see The Prescription above).
Profitability & Efficiency
- NIM: 21.99% (Q1 2026), up from 19.28% (Q1 2025) - the third straight quarter above 20%, and the highest in this backfill.
- ROA: 4.01% (Q1 2026), up from 1.40% (Q1 2025) - more than double the 1.55%-2.27% range the bank posted for full-year 2024 and 2025, though a single quarter's ROA annualizes differently than a full-year figure and shouldn't be read as a like-for-like jump of that scale.
- ROE: 24.05% (Q1 2026), up from 6.74% (Q1 2025) - by far the strongest quarter this backfill has covered.
- BOPO: 85.37% (Q1 2026), down sharply from 94.20% (Q1 2025) and down from 91.47% for full-year 2025 - the best efficiency reading yet.
- Cost-to-Income Ratio (CIR): 21.43% (Q1 2026), roughly flat from 20.62% (Q1 2025).
Not available in this filing: a segment or product-level breakdown of the loan book, transacting-user or merchant counts, a deposit-cost (funding rate) disclosure, or a related-party breakdown of this quarter's deposit growth - that detail only appears in the annual report (see the FY2025 post), and SeaBank's bare quarterly publication format doesn't carry it.
Beyond the Usual
Current accounts nearly doubled year-on-year, right after the annual report flagged how concentrated that line already was
Giro (current accounts) rose from Rp5,526,823 million (Mar 2025) to Rp10,597,720 million (Mar 2026) - up 91.7% year-on-year, and up 8.5% just in the three months since December 2025. This is the same deposit line the FY2025 annual report showed was 82.1% related-party money as of December 31, 2025 (see Beyond the Usual in that post). SeaBank's quarterly publication format doesn't disclose a related-party split, so this quarter's growth can't be attributed the same way with certainty - but given how concentrated the prior period already was, a reader shouldn't assume this jump represents new retail customers until the next annual report confirms (or corrects) that picture.
Provisioning is growing faster than the loan book for the first time in over a year
Impairment losses (kerugian penurunan nilai aset keuangan) rose from Rp1,313,432 million (Q1 2025) to Rp1,806,705 million (Q1 2026) - up 37.6% year-on-year - while the loan book itself grew 40.8% and net interest income grew 56.5% over the same period. Provisioning growing slower than both loans and income is a healthy combination on its face, and a continuation of the trend the FY2025 post already flagged (Q4 2025 standalone impairment growth of 64.3% trailed standalone income growth of 56.9%, but here the gap has widened further in the bank's favor) - worth watching whether this holds as the loan book keeps scaling past Rp34.8 trillion.
Capital adequacy has now fallen for four straight year-on-year comparisons
CAR/KPMM has declined every quarter this backfill has covered on a year-on-year basis: from 38.75% (H1 2023) to 34.93% (FY2023) to 30.80% (FY2024) to 24.62% (Q1 2025) to 21.88% (Q1 2026). The ratio remains more than double the regulatory minimum requirement (9.00% risk-profile-based KPMM plus a 2.50% capital conservation buffer, both comfortably met), so this isn't a near-term compliance concern - but it is a genuinely consistent multi-year trend of the capital buffer shrinking as risk-weighted assets scale faster than retained capital, the mechanical result of a bank that hasn't raised fresh equity since the FY2023 reclassification flagged in the H1 2023 post.
Coverage Table
| Metric | Q1 2026 | Q1 2025 | YoY | Why it matters |
|---|---|---|---|---|
| Net Income | Rp375.6bn | Rp96.7bn | +288.2% | Strongest quarter in this backfill by far |
| ROE | 24.05% | 6.74% | +1,731bps | Profitability now clearly outpacing capital growth |
| Giro (current accounts) | Rp10,597,720M | Rp5,526,823M | +91.7% | Same line the FY2025 report showed was 82% related-party |
| CAR/KPMM | 21.88% | 24.62% | -274bps | Fourth straight YoY decline in the capital buffer |
| BOPO | 85.37% | 94.20% | -883bps | Best cost efficiency reading in this backfill |
Target Valuation Range
SeaBank Indonesia has no independently traded equity or debt, so no numeric valuation range is computable for this quarter, consistent with every prior post in this backfill.
Sea Limited (through PT Danadipa Artha Indonesia) and PT Koin Investama Nusantara remain the bank's only two shareholders, and neither has ever floated any portion of it on a public market - there is no share price, market capitalization, or P/E or P/B multiple that can honestly be built for this entity. Sea Limited itself trades on the NYSE (ticker SE), but that reflects the entire Sea Group's economics, not SeaBank Indonesia's standalone results, and folding a group-level multiple back onto one subsidiary bank would misrepresent both.
A quarter with 288% net income growth and a 24% ROE is the strongest number this backfill has produced - but with the loan-to-deposit ratio only having eased because a still-unverified deposit line grew even faster than the loan book, the real test is whether that funding is as durable as the profit growth it's supporting.
PT Bank Seabank Indonesia's quarterly published financial statement ("Laporan Posisi Keuangan Triwulanan"), bank-only/individual basis, for the period ended March 31, 2026, signed by the bank's board of directors in Jakarta on May 15, 2026, per Indonesian Financial Services Authority (OJK) bank transparency and publication regulations.