PT Bank Aladin Tbk “BANK”
Bank Aladin maintains strong capital and resilient asset quality, with FY25 capital adequacy ratio (CAR) at 49.29% and gross non-performing financing (NPF) at only 0.22%, well below peers. However, limited financing remains the key constraint, with market share at just 0.77% of the Sharia Commercial Banking industry and financing-to-deposit ratio (FDR) at 55.8% as of Jun-26. We expect financing growth to accelerate to 13.0% YoY in FY26E, supported by ample capital headroom and Bank Indonesia’s macroprudential liquidity incentive policy (KLM), while CAR remains solid at 42.7%. However, the small financing base continues to weigh on earnings, with return on assets (ROA) at 0.43% and net interest margin (NIM) at 1.5%. For the secondary market, we prefer SWBANK01CN1 given its attractive yield versus the curve.