BCA to Buy Back Rp 5 Trillion in Shares as 9-Month Profit Reaches Rp 43.4 Trillion, Analysts Maintain “Buy” Rating

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JAKARTA, Investortrust.id — Indonesia’s largest private lender PT Bank Central Asia Tbk, or BCA (BBCA), has announced a share buyback program worth up to Rp 5 trillion, to be executed between Wednesday, Oct 22, 2025, and Jan 19, 2026. The move is part of the bank’s prudent capital management strategy and its continued commitment to delivering value to shareholders.

Executive Vice President of Corporate Communication and CSR BCA Hera F. Haryn said the buyback reflects the company’s confidence in its long-term prospects. “BCA continues to uphold the principles of Good Corporate Governance and ensures all corporate actions comply with prevailing laws and regulations,” Hera said during the bank’s third-quarter 2025 performance presentation on Monday, Oct 20, 2025.

Under the Financial Services Authority Regulation No. 13/2023, all BCA employees are prohibited from trading company shares during the buyback period. The bank will use internal funds rather than external borrowing, with repurchased shares recorded as treasury stock, thereby reducing total equity.

At Monday’s closing, BBCA shares rose 5% to Rp 7,875 apiece, signaling a positive market reaction to the announcement. Analysts said the buyback plan reinforced investor confidence in BCA’s strong fundamentals amid broader market volatility and currency pressure.

BCA reported a consolidated net profit of Rp 43.4 trillion in the first nine months of 2025, up 6% year-on-year, supported by a 7.6% increase in lending to Rp 944 trillion as of September 2025. Despite tighter margins, the bank continued to deliver robust operational efficiency with a cost-to-income ratio (CIR) of 33.3%.

BRI Danareksa Sekuritas maintained its “Buy” recommendation for BBCA with a revised target price of Rp 11,200 per share, down slightly from Rp 11,900, applying the Gordon Growth Model (GGM) with an assumed cost of equity of 6.8% and return on equity of 21.4%. The target reflects a price-to-book value multiple of 4.9 times.

The brokerage described BBCA as the top pick in Indonesia’s banking sector, citing strong liquidity, low funding costs, and superior asset quality. “We remain cautious on asset quality, but BBCA continues to be the best long-term option,” its analysts Naura Reyhan Muchlis and Victor Stefano wrote in the report.

The analysts projected that BBCA’s performance in the fourth quarter of 2025 could improve as corporate lending accelerates, with full-year loan growth estimated at around 5.7%. While management stays cautious on auto loans, it expects improvements in mortgage and SME segments.

Looking ahead to 2026, BCA anticipates a 75-basis-point reduction in Bank Indonesia’s policy rate, which could trim the net interest margin (NIM) by 20–30 bps. However, this is expected to be offset by 8–10% credit growth, stronger fee-based income, and higher asset quality in a lower interest rate environment.

For the third quarter alone, BCA recorded Rp 14.4 trillion in net profit, down 3% quarter-on-quarter but up 1% year-on-year. Profitability was affected by an increase in cost of credit to 0.6% as the bank proactively built provisions for potential risks in consumer and corporate loans. Meanwhile, NIM eased to 6.1% due to softer loan yields, though the cost of funds remained steady at 1.1% supported by a high CASA ratio.

Despite short-term margin pressures, BRI Danareksa highlighted that BBCA’s non-interest income rose 10% quarter-on-quarter and 14% year-on-year, demonstrating the bank’s resilience and ability to sustain profitability through diversified income streams.

The report also noted that liquidity across Indonesia’s banking sector has improved, allowing the firm to retain a “Neutral” stance on the sector with BBCA as its preferred stock. The analysts expect BBCA’s strong fundamentals to persist, supported by disciplined cost management and selective credit expansion.

As the bank prepares to execute its share buyback program, investors view the move as a signal of management’s confidence in BCA’s growth prospects and undervalued stock position. With solid earnings, conservative risk management, and a consistent track record of shareholder returns, BBCA remains one of Indonesia’s most resilient and attractive banking stocks.