Indonesia's Regional Banks Show Solid Growth in Early 2026

Bank bjb reported a net profit after tax and minority interest of Rp410 billion for Q1 2026, a 13.3% rise quarter‑on‑quarter and a 3% increase year‑on‑year. The rise was driven by stronger net interest income, which grew 13% YoY to Rp2.05 trillion, and tighter cost management. The bank’s loan portfolio reached Rp141.2 trillion, deposits Rp159.9 trillion and its loan‑to‑deposit ratio stayed at 83.5%.

The Financial Services Authority (OJK) said the broader Bank Pembangunan Daerah (regional development banks) sector remained resilient, with total assets of Rp1,036.5 trillion (up 3.2% YoY) and credit extended to Rp656.9 trillion (up 1.59% YoY) as of March 2026. Deposits grew 4.74% to Rp782 trillion. The sector’s capital adequacy ratio stood at 26.19%, while gross and net non‑performing loan ratios were 3.26% and 1.27% respectively, indicating stable credit quality. OJK highlighted ongoing consolidation of regional banks into Banking Business Groups (KUB) and a push for digital transformation to enhance competitiveness.