Bank Central Asia: profit up 4.2% while a Rp25 interim dividend is already declared

On 19 August 2026 Bank Central Asia published the schedule for its third-quarter 2026 interim dividend – Rp25 per share payable on 16 September – while for the nine months of 2026 the bank reported net profit of IDR45.2tn, up 4.2% year on year, on net interest income of IDR65.1tn, up 1.7%. Profit growth is modest, but a 21.8% return on equity and a 7.65% trailing dividend yield make the share attractive at the current price, all the more so as the portal's model puts it 9% below fair value.

Key takeaways

— Nine-month 2026 net profit rose 4.2% to IDR45.2tn, outpacing 1.7% growth in net interest income

— Profit equalled 69.5% of net interest income versus 67.9% a year earlier – costs grew slower than revenue

— The bank declared a Rp25 per-share interim dividend for Q3 2026, payable on 16 September

— Trailing twelve-month dividend yield is 7.65%, on trailing net profit of IDR58.1tn

— With a 21.8% return on equity the share trades at a P/E of 10.45 – the market is not paying for growth it cannot yet see

— On the portal's model the share sits 9% below fair value, derived from ROE against P/B

Attractiveness

Key figures, IDR bn

Nine-month 2026 net profit rose 4.2% to IDR45.2tn, outpacing 1.7% growth in net interest income

For the nine months of 2026 Bank Central Asia earned IDR45.2tn of net profit, 4.2% more than a year earlier. Net interest income over the same period was IDR65.1tn, up only 1.7%. Profit outran revenue because costs and charges grew slower than the top line itself.

Operating profit for the nine months was IDR55.8tn. The IDR10.6tn gap to net profit is tax and items below the operating line, not one-off write-downs. The dividend announcement does not break down costs, so the specific line that produced the saving cannot be named.

Revenue growth of 1.7% is a modest pace for an Indonesian bank. The question for the report is not profit but whether its 2.5-percentage-point lead over revenue holds once costs start catching up with inflation. So far they have not.

Profit equalled 69.5% of net interest income versus 67.9% a year earlier – costs grew slower than revenue

The ratio of net profit to net interest income for the nine months of 2026 was 69.5% versus 67.9% a year earlier. This is not a margin or a profitability measure but the share of interest income that profit retains after all costs, provisions and taxes. A 1.6-percentage-point gain means the bank kept more of every rupiah of interest income.

The cause is profit outgrowing revenue: 4.2% against 1.7%. Had costs and provisions grown in line with revenue, the share would have stayed at last year's level. The 1.6-point improvement is small, but it repeats for a second period in a row judging by the annual trend.

For a shareholder this matters more than the growth rate itself: the bank is converting interest income into profit more efficiently, and that is what holds return on equity at 21.8%. If the profit share stops rising, ROE will start drifting toward the cost of capital.

The bank declared a Rp25 per-share interim dividend for Q3 2026, payable on 16 September

On 19 August 2026 the board of Bank Central Asia declared an interim dividend of Rp25 per share for the third quarter of financial year 2026. Holders of record on 1 September are entitled, with payment on 16 September. This is a quarterly dividend, not an annual one: the bank pays quarterly, and the declared amount is the next in the series.

Over the last twelve months the dividend yield was 7.65%. Against trailing net profit of IDR58.1tn and a market capitalisation of IDR606.8bn, the payout absorbs a meaningful share of profit but not all of it: the payout ratio stays below one, and the bank retains capital for growth.

Our estimate for the current year is that quarterly payments hold at the declared level, with a possible small increase toward year-end if nine-month profit of IDR45.2tn converts into roughly IDR60tn for the full year. The estimate hinges on two things: the payout ratio, which the announcement does not disclose, and the absence of large one-off charges in the fourth quarter.

A yield of 7.65% sits well above the key rate, and for an Indonesian bank that is generous. A smaller payout would require either a fall in profit or a decision to steer more capital into growth. Neither is visible in the report.

Trailing twelve-month dividend yield is 7.65%, on trailing net profit of IDR58.1tn

Trailing twelve-month net profit was IDR58.1tn, net interest income IDR85.5tn. These figures describe a full year, not nine months, and the 7.65% yield is measured against them. With a market capitalisation of IDR606.8bn, the market pays 10.45 times trailing earnings – the LTM P/E.

A 7.65% yield on a P/E of 10.45 means the market values the bank modestly relative to its earnings power. For context: a 21.8% return on equity on that P/E implies a P/B of roughly 2.3 – the market pays above book for the equity but not at a large multiple.

Dividend and profit reconcile: 7.65% of market capitalisation is about IDR46bn of annual payments, which against IDR58.1tn of profit implies a payout ratio near 0.8. The bank pays out most of its earnings, and that is the main reason the share appeals to an income investor.

With a 21.8% return on equity the share trades at a P/E of 10.45 – the market is not paying for growth it cannot yet see

The LTM P/E is 10.45 and return on equity 21.8%. High profitability paired with a modest multiple is typical of a bank growing slowly: the market does not expect an acceleration in profit and pays for current rather than future earnings. Net interest income growth of 1.7% over nine months bears this out.

The P/E cannot be compared with its own three-year average because the facts contain no such average. But an absolute 10.45 against a 21.8% ROE means the market values the bank below what a simple ROE-to-P/B link would allow if growth were higher. The discount is the price of slow growth, not of poor earnings quality.

For a shareholder this creates asymmetry: if revenue growth accelerates even to 3–4%, the multiple can expand without any change in profit. If growth stays at 1.7%, the share will live off the dividend rather than a re-rating.

On the portal's model the share sits 9% below fair value, derived from ROE against P/B

The portal's model, which sets return on equity against P/B, puts fair value 9% above the current price. This is our own estimate, not a market consensus and not a target price. It rests on the same 21.8% ROE and the current multiple.

The estimate is sensitive to two parameters: return on equity and the durability of profit. If ROE holds at 21.8%, the 9% discount closes through a re-rating. If nine-month profit of IDR45.2tn proves a peak and ROE drifts to 18–19%, the discount disappears along with the reason to own the share.

The model does not treat the dividend separately – it looks at equity and its return. But for a shareholder the 7.65% dividend is precisely the part of return that does not depend on a re-rating. A 9% discount combined with a 7.65% yield makes the share attractive at the current price.

Valuation on the latest reported figures

Bottom line

What was genuinely strong is earnings quality: IDR45.2tn for nine months, up 4.2%, with profit at 69.5% of net interest income versus 67.9%. The Rp25 per-share dividend and a 7.65% trailing yield are the second support, independent of any re-rating. What was weak is the pace: net interest income grew only 1.7%, and the entire profit gain rests on cost savings rather than business expansion. The question for a holder now is whether a 21.8% ROE holds at that revenue growth; if it does, the portal model's 9% discount closes, if not, only the dividend remains. At the current price the share looks attractive.