XA Update Report | PT Bank Amar Indonesia Tbk. (AMAR) – Growth Momentum Intact – Positioning for the Next Leg of Expansion
By Leonardo Lijuwardi
31-August-2026
AMAR delivered solid 1H26 results, with consistent NII growth remaining the key driver of profitability improvement. AMAR’s net interest income (NII) increased +20.5% YoY to IDR 770.6B in 1H26 (1H25: IDR 639.6B), extending its relatively consistent growth trajectory since 2023. On a quarterly basis, NII also increased +8.2% QoQ and +25.4% YoY to IDR 400.4B in 2Q26, reflecting the continued expansion of earning assets alongside the recovery in lending momentum. NIM improved to 21.9% in 2Q26, up from 20.7% in 1Q26, although it remained below 23.6% in 2Q25. Supported by continued NII growth, operating income increased +15.8% YoY to IDR 1.09T in 1H26 (1H25: IDR 943.3B), while operating profit and net profit rose +20.7% and +21.7% YoY to IDR 186.5B and IDR 143.6B, respectively. In 2Q26 alone, net profit increased +43.4% YoY and +1.8% QoQ to IDR 72.4B, highlighting resilient operating performance despite higher provisioning expenses and still-elevated operating costs.
🔹Lending Side: Recovery Momentum Continues, Leaving Further Room for Expansion
• Loan growth remained one of AMAR’s key highlights, with loans outstanding reaching IDR 4.63T, up +30.5% YoY and +11.4% QoQ in 2Q26/1H26. The quarterly increase indicates a continued recovery in lending momentum after loans stood at IDR 4.16T in 1Q26. Based on loan utilization, productive loans accounted for 87% of total loans, while consumer loans represented the remaining 13%. By loan composition, working capital loans remained the largest component at 79%, while investment loans accounted for 8%, with the remainder consisting of consumer loans.
•By lending segment, AMAR’s 2Q26 loan portfolio comprised 46% micro, 35% corporate, 13% retail, and 7% SME. The micro segment remained the largest contributor, in line with AMAR and Tunaiku’s positioning as an unsecured retail lending platform. Cumulatively, Tunaiku’s loan disbursements have reached approximately IDR 19T since its launch in 2014, demonstrating the platform’s established scale and track record.
•Looking ahead, we see an opportunity for AMAR to gradually broaden its lending exposure from micro toward SME-commercial. With corporate loans already accounting for 35% of the portfolio, AMAR has room to address the segment between micro and corporate lending, particularly borrowers whose funding requirements are too large for micro lending but do not yet fit the requirements or risk appetite of corporate lending. SME currently contributes only around 7% of the portfolio, leaving significant room for this segment to become a new lending growth engine. Nevertheless, we view this as a medium-term opportunity, as SME’s contribution in 2Q26 remained below approximately 8% in 2Q25. Therefore, AMAR’s current loan recovery remains primarily supported by its core businesses, while SME-commercial could emerge as an incremental growth driver over time.
🔹 Funding Side: Quarterly CASA Mix Improved, but Funding Structure Remains Deposit-Heavy
• AMAR’s funding mix improved QoQ, although its funding structure remains relatively reliant on time deposits. In 2Q26, CASA increased to 29% of total third-party funds (TPF) from 17% in 1Q26, driven by higher current account contribution to 18% from 8% and savings accounts to 11% from 9%. Meanwhile, time deposits remained dominant, accounting for 71% of total DPK. On a YoY basis, however, CASA remained below the 39% recorded in 2Q25, indicating that AMAR’s liquidity base has yet to fully strengthen from the perspective of low-cost funding.
• Total TPF increased +41.8% YoY to IDR 2.50T, although it declined QoQ from approximately IDR 2.92T in 1Q26. With loans increasing +11.4% QoQ while DPK contracted sequentially, LDR rose significantly to 185.0% in 2Q26 from 142.56% in 1Q26. Nevertheless, the elevated LDR should be assessed alongside AMAR’s still-strong capital position, with CAR at 89.86%, while liquidity ratios also remained robust, with NSFR at 134.73%.
🔹 Profitability: Quarterly NIM Recovery Supports Continued ROE Improvement
•AMAR’s profitability continued to improve, primarily supported by NIM recovery and earning asset growth. NIM increased to 21.91% in 2Q26 from 20.73% in 1Q26, marking a recovery after experiencing pressure throughout 2025 and early 2026. Historically, AMAR has maintained a structurally high NIM, ranging around 20–25% since 1Q24, making the recovery above 21% supportive for the earnings outlook. Nevertheless, NIM remained below the 23.59% recorded in 2Q25, suggesting that further NIM normalization remains an important upside factor to monitor.
• On the return side, ROE increased to 8.38% in 2Q26 from 7.06% in 2Q25 and remained broadly stable versus 8.34% in 1Q26. The improvement in ROE came despite equity increasing to IDR 3.44T, indicating that earnings growth has started to catch up with AMAR’s expanding capital base. With lending growth strengthening and NIM beginning to recover, further profitability improvement will largely depend on AMAR’s ability to optimize its earning assets while improving its funding mix.
🔹 Operating Performance: Revenue and Earnings Growth Continue to Outpace Cost Growth
• AMAR continued to generate positive operating leverage despite higher operating and provisioning expenses. In 1H26, operating expenses increased +14.6% YoY to IDR 372.4B, while provisioning expenses rose +14.9% YoY to IDR 533.2B. Nevertheless, gross operating income growth of +15.8% YoY was sufficient to generate +20.7% YoY growth in operating profit, indicating that topline expansion continued to more than offset the increase in the cost base. In 2Q26, BOPO improved to 84.17%, from 84.88% in 1Q26, and remained broadly stable versus 84.32% in 2Q25. Therefore, while operating efficiency is not yet a key strength for AMAR, it has started to stabilize and improve on a sequential basis.
🔹 Asset Quality: Healthy NPL Supports Sustainable Lending Expansion
• AMAR’s asset quality remained relatively stable. NPL continued to remain at a healthy level despite the acceleration in loan growth. NPL declined to only 0.80% in 2Q26 from 1.64% in 2Q25, indicating that the renewed lending expansion has yet to translate into meaningful asset quality deterioration. With productive loans accounting for 87% of the portfolio and NPL remaining below 1%, AMAR maintains a relatively healthy asset quality base to support further lending growth.
🔹Digital Ecosystem Development: Partnership-Based Financial Solutions – Expanding into Overdrafts – Underserved MSMEs
•Beyond its direct unsecured lending business through Tunaiku and Amar Bank Mobile Banking, AMAR continues to develop its digital financial ecosystem through partnership-based solutions. AMAR’s platform enables partners to directly access AMAR’s banking products through their own digital platforms, while helping partners improve user engagement and retention and create alternative revenue streams through financial services and products. AMAR also offers fully digital financial solutions, AI-powered financial insights to help MSMEs improve their creditworthiness, and multi-account banking solutions for managing teams, projects, and budgets.
• Going forward, this partnership-based financial solutions model could become a complementary growth engine beyond AMAR’s core business through the Tunaiku application, particularly by expanding AMAR’s reach among underserved MSMEs. With a combination of credit scoring, digital onboarding, lending platforms, and strategic partnerships, AMAR is well positioned to capture the financial inclusion opportunity without relying entirely on direct customer acquisition.
🔹 FY26 Outlook: Maintaining Sustainable and Optimal Growth
• We expect AMAR to deliver steady earnings growth, with FY26E net profit projected to increase +19.6% YoY to IDR 299B. This will be supported by +28.0% YoY growth in interest income, alongside our updated assumptions following the increase in the BI policy rate this year. AMAR’s performance should also remain supported by resilient asset quality. While we expect FY26E NIM to remain under pressure, we anticipate NIM to begin recovering in FY27F as the bank benefits from improving lending momentum and a more favorable funding environment.
🔹“Buy” Recommendation with Target Price at IDR 310 / Share (Upside Potential +32.5%)
• NHKSI Research gives a “BUY” recommendation on AMAR with a target price of IDR 310/share, implying a valuation of 1.2x 2026F forward PBV, in line with its three-year historical average. From a lending segmentation perspective, the micro and corporate segments continue to dominate AMAR’s portfolio. Therefore, the bank’s ability to gradually and consistently scale up its SME-commercial exposure could serve as an important medium-term growth catalyst. We believe AMAR is entering a phase of more stable and sustainable lending recovery, with potential upside supported by NIM recovery, SME-commercial expansion, and resilient asset quality. Going forward, the key areas to monitor will be loan growth and, more importantly, the sustainability and composition of its funding base.
• Key risks to our AMAR thesis include intensifying competition in digital banking, heightened competition from other financial institutions in unsecured lending, potential deterioration in asset quality, and an unstable macroeconomic environment that could weigh on lending growth.
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NH Korindo Sekuritas Indonesia berizin dan diawasi Otoritas Jasa Keuangan (OJK). Untuk informasi lebih lanjut, anda dapat menghubuni CS kami via email CSO@nhsec.co.id
