The Compounding Engine Just Missed a Beat
This is SeaBank Indonesia's filing for the six months ended June 30, 2026, signed by the bank's directors in Jakarta on August 15, 2026. It follows directly from the Q1 2026 post, which showed net income nearly quadrupling year-on-year on the back of four consecutive quarters of accelerating quarter-on-quarter profit - while flagging that the fastest-growing deposit line funding that growth, current accounts (Giro), was 82% Sea Group related-party money as of the last annual report (see Beyond the Usual in that post).
The headline cumulative number still looks exceptional: H1 2026 net income of Rp749.3 billion is up 250.4% year-on-year, already ahead of full-year 2024's entire Rp378.8 billion total. But isolate the second quarter alone - the number that actually shows whether this quarter's growth kept compounding or just rode H1's cumulative math - and the picture changes. Standalone Q2 2026 net income was Rp373,680 million, essentially flat against Q1 2026's Rp375,578 million (down about half a percent), the first sequential dip after five straight quarters of quarter-on-quarter growth stretching back to Q1 2025. That alone would be a minor story on its own - a bank can have one quiet quarter - except it landed in the same three months the loan-to-deposit ratio» hit an all-time high of 95.23% and capital adequacy» hit an all-time low of 20.20%. A bank running its funding and capital buffers to series extremes in the same quarter its profit growth pauses is worth a closer look at whether the formula that worked for five quarters straight is starting to run out of room, not just a coincidence of timing.
The Prescription
Keep the underwriting engine exactly as it is: NIM» held above 20% for a fifth straight period (21.88%, H1 2026), gross NPL» improved slightly to 1.65% even as the loan book grew 53.1% year-on-year, and BOPO» fell to 85.93%, the best half-year efficiency reading yet. None of that broke this quarter; the lending business is still working.
What it should stop doing: letting loan growth (+53.1% YoY) keep outrunning both deposit growth (+47.6% YoY) and equity growth (+15.7% YoY, the slowest of any balance-sheet line) to the point that the liquidity buffer and the capital buffer hit their tightest levels ever in the same quarter. SeaBank has had a widening capital-adequacy gap flagged in every post since Q1 2025, and this quarter is the first time that gap coincided with the profit line itself pausing - the two aren't necessarily connected, but a bank this profitable (ROE» of 23.64%) has every ability to slow risk-weighted asset growth or bring in fresh capital before both buffers compress further, rather than wait for a quarter where the coincidence stops being a coincidence.
Key Financial Metrics
H1 2026 vs. H1 2025 (P&L, six months ended June 30), and Jun 2026 vs. Jun 2025 (balance sheet) - bank-only ("Individual")
FX: IDR 17,880 = USD 1 (June 30, 2026 close, for H1 2026 and Jun 2026 balance-sheet figures); IDR 16,235 = USD 1 (June 30, 2025 close, for H1 2025 comparatives) - both rates as disclosed in the filing itself.
| Metric | H1 2026 (IDR) | H1 2026 (USD) | H1 2025 (IDR) | YoY |
|---|---|---|---|---|
| Net Interest Income ("Net Revenue" equivalent) | Rp5,478,429M | ~$306.4M | Rp3,624,204M | +51.2% |
| Operating Income | Rp960,574M | ~$53.7M | Rp273,469M | +251.3% |
| Net Income | Rp749,258M | ~$41.9M | Rp213,806M | +250.4% |
Isolating Q2 2026 alone (H1 minus Q1): net income of Rp373,680 million, up 219.2% from Rp117,064 million in Q2 2025, but down slightly (-0.5%) from Rp375,578 million in Q1 2026 - see Beyond the Usual below for the full quarter-by-quarter run this breaks.
| Balance sheet metric | Jun 2026 (IDR) | Jun 2026 (USD) | Jun 2025 (IDR) | YoY |
|---|---|---|---|---|
| Total Assets | Rp52,972,333M | ~$2.963B | Rp37,026,684M | +43.1% |
| Loans (Kredit yang diberikan) | Rp39,807,002M | ~$2.226B | Rp25,998,966M | +53.1% |
| Total Deposits (Giro + Tabungan + Deposito) | Rp41,802,735M | ~$2.338B | Rp28,322,641M | +47.6% |
| Total Liabilities | Rp45,313,761M | ~$2.534B | Rp30,409,637M | +49.0% |
| Total Equity | Rp7,658,572M | ~$428.3M | Rp6,617,047M | +15.7% |
No cash flow statement is included in this bare regulatory publication format. Deposits are the sum of the filing's own Giro, Tabungan, and Deposito lines.
Loans grew faster than deposits for the second straight half-year comparison (+53.1% vs. +47.6% YoY) - and equity grew only 15.7%, the slowest of the five lines above, which is mechanically why the capital ratio below keeps compressing even as the bank keeps generating a profit.
Key Operational Metrics
Funding & Liquidity
- Loan-to-deposit ratio (LDR): 95.23% (Jun 2026), up from 91.80% (Jun 2025) and up further from 88.95% (Mar 2026) - the tightest funding position in this filing's five-year history, surpassing the previous high of 92.32% at FY2025-end.
Credit Quality
- NPL ratio - gross: 1.65% (Jun 2026), down slightly from 1.68% (Jun 2025).
- NPL ratio - net: 0.12% (Jun 2026), down from 0.18% (Jun 2025) - a series low.
- CAR / KPMM (capital adequacy): 20.20% (Jun 2026), down from 26.82% (Jun 2025) and down further from 21.88% (Mar 2026) - the lowest level yet recorded in this filing series. The ratio hasn't declined in every single period (it ticked up from 24.62% at Q1 2025 to 26.82% at H1 2025 before resuming its slide), but the multi-year direction is unmistakable: 38.75% (H1 2023) -> 34.93% (FY2023) -> 30.80% (FY2024) -> 23.29% (FY2025) -> 21.88% (Q1 2026) -> 20.20% (H1 2026). Still well above the 9.00% risk-profile-based regulatory minimum plus the 2.50% capital conservation buffer.
Profitability & Efficiency
- NIM: 21.88% (H1 2026), up from 20.20% (H1 2025) - a fifth straight period above 20%.
- ROA»: 3.86% (H1 2026), up from 1.53% (H1 2025).
- ROE: 23.64% (H1 2026), up from 7.40% (H1 2025).
- BOPO: 85.93% (H1 2026), down from 93.96% (H1 2025) - the best half-year efficiency reading yet, though slightly higher (worse) than the 85.37% Q1 2026 alone reported for the March quarter on its own.
- Cost-to-Income Ratio» (CIR): 21.15% (H1 2026), down slightly from 21.92% (H1 2025).
Not available in this filing: a cash flow statement, 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. There are no footnotes to mine in this document at all - it is the same bare regulatory balance-sheet-and-P&L format every quarterly (non-annual) SeaBank filing has used since H1 2023.
Beyond the Usual
The five-quarter streak of sequential profit growth just broke - by half a percent
Standalone quarterly net income: Q4 2024 Rp87,240 million, Q1 2025 Rp96,742 million, Q2 2025 Rp117,064 million, Q3 2025 Rp194,694 million, Q4 2025 Rp269,937 million, Q1 2026 Rp375,578 million - five straight quarters, each higher than the one before. Q2 2026 breaks that run: Rp373,680 million, essentially flat and technically 0.5% below Q1 2026. The year-on-year comparison still looks outstanding (+219.2% versus Q2 2025), so this isn't a business in trouble - but it's the first quarter in over a year where the sequential trend didn't extend, and worth checking whether Q3 2026 resumes the climb or confirms this is where the acceleration phase actually ended.
Capital adequacy and the loan-to-deposit ratio both hit series extremes in the same quarter
CAR/KPMM fell to 20.20% (Jun 2026) - the lowest this ratio has ever been in SeaBank's filing history, down from 38.75% as recently as H1 2023. In the same filing, the loan-to-deposit ratio climbed to 95.23%, also the highest ever recorded, as loans (+53.1% YoY) outgrew both deposits (+47.6% YoY) and equity (+15.7% YoY). Both ratios remain within regulatory bounds - KPMM is still more than double the 9.00% minimum plus buffer, and LDR under 95% carries no hard regulatory ceiling - but a bank hitting its widest-ever funding gap and its thinnest-ever capital cushion in the same quarter its own profit growth paused (see the finding above) has less room to absorb a shock than the version of this bank that reported a 60.88% LDR and a 38.75% CAR just three years ago.
Current-account growth is decelerating, though the related-party question the FY2025 report raised remains unanswered
Giro (current accounts) rose from Rp7,022,032 million (Jun 2025) to Rp11,485,626 million (Jun 2026) - up 63.6% year-on-year, still the fastest-growing of the three deposit lines (Tabungan +42.1%, Deposito +42.7% YoY) but a clear deceleration from the 91.7% year-on-year growth this same line posted as of Q1 2026. SeaBank's quarterly publication format still doesn't carry a related-party breakdown - only the annual report does, and the FY2025 post found 82.1% of Giro was related-party money as of December 31, 2025. Whether this deceleration reflects an actual slowdown in Sea Group ecosystem float, a genuine shift toward retail deposits, or just base-effect math against an unusually fast Q1 comparison won't be answerable until the FY2026 annual report - due roughly a year from now - discloses the split again.
Coverage Table
| Metric | H1 2026 | H1 2025 | YoY | Why it matters |
|---|---|---|---|---|
| Net Income (H1, cumulative) | Rp749.3bn | Rp213.8bn | +250.4% | Headline number still looks exceptional |
| Net Income (Q2, standalone) | Rp373.7bn | Rp117.1bn | +219.2% | Essentially flat vs. Q1 2026's Rp375.6bn - the actual story |
| Loan-to-Deposit Ratio | 95.23% | 91.80% | +343bps | Highest ever recorded in this filing series |
| CAR / KPMM | 20.20% | 26.82% | -662bps | Lowest ever recorded in this filing series |
| Giro (current accounts) | Rp11,485,626M | Rp7,022,032M | +63.6% | Still fastest-growing deposit line, though decelerating from Q1's +91.7% |
Target Valuation Range
SeaBank Indonesia has no independently traded equity or debt, so no numeric valuation range is computable for this quarter.
Sea Limited (through PT Danadipa Artha Indonesia, 85%) and PT Koin Investama Nusantara (15%) 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. For a listed Indonesian digital-bank comparable operating on the same OJK quarterly-transparency format, see Superbank's H1 2026 post - Superbank's stock fell 43% from its post-IPO high over the same six months even as its own fundamentals improved, a reminder that even where a market price exists for this business model, it doesn't move in lockstep with the underlying numbers.
A quarter with 250% cumulative net income growth is, on its face, another strong result - but with the sequential trend pausing for the first time in five quarters, right as both the funding and capital buffers hit their tightest levels yet, the real test is whether Q3 2026 confirms this was a one-quarter pause or the start of a genuine plateau.
PT Bank Seabank Indonesia's quarterly published financial statement ("Laporan Posisi Keuangan Triwulanan" and "Laporan Laba Rugi dan Penghasilan Komprehensif Lain Triwulanan"), bank-only/individual basis, for the period ended June 30, 2026, signed by the bank's board of directors in Jakarta on August 15, 2026, per Indonesian Financial Services Authority (OJK) bank transparency and publication regulations.