PT Bank KB Indonesia “BBKP”
We maintain a Stable outlook on BBKP due to strong parent support from Kookmin, including its IDR3tn AT1 injection, and resilient liquidity, underpinned by a healthy NSFR buffer. Operating profit is expected to turn positive in FY2026F, supported by opex efficiencies, stronger net interest and fee income, and lower credit costs. However, asset quality and capital remain key areas to monitor, while a thin CASA base and rising wholesale funding point to a weaker funding mix. For investors seeking greater comfort, we prefer senior BBKP02BCN2/BBKP02ACN2, while BBKP04ASBCN1/BBKP04BSBCN1 offer higher carry for those willing to take subordinated risk. business concentration is expected to remain a key constraint over the near to medium term.