Bank Syariah Indonesia: Sachet Banking powered by Islamic and Gold; initiating at OW

Research evidence excerpt

Bank Syariah Indonesia: Sachet Banking powered by Islamic and Gold; initiating at OW

J P M O R G A N Asia Pacific Equity Research

24 July 2026

Initiation

Bank Syariah Indonesia Overweight

BRIS.JK, BRIS IJ

Sachet Banking powered by Islamic and Gold; initiating Price (24 Jul 26):Rp1,845

at OW Price Target (Jun-27):Rp2,250

Bank Syariah Indonesia has emerged as the pre-eminent Islamic financial services APAC Banks

ACcompany in Indonesia. Post merger of three state-owned Syariah banks in 2021, BSI Harsh Wardhan Modi

has delivered 17/10% loan and PPoP CAGRs. This was led by bottom-of-the-pyramid (65) 6882-2450

innovations as well as shifting customer behavior. BSI’s innovations remind us of harsh.w.modi@jpmorgan.com

consumer staples companies elsewhere in EM broadening the FMCG pie by offering J.P.J.P. MorganMorgan SecuritiesSecurities Singapore(Asia Pacific)PrivateLimited/Limited/J.P.

single-use sachets (link). BRI approached the segment by building deposit culture and Morgan Broking (Hong Kong) Limited

offering micro loans (link). These innovations led to multi-year moats. BSI Daniel Andrew Tan, CFA

management prioritized quality and innovative banking rather than waiting for (63-2) 8554-2413

customers with a preference for Islamic products to lead adoption. The bank is now danielandrew.o.tan@jpmorgan.com

J.P. Morgan Securities Philippines, Inc.

well positioned for multi-year growth on back of these shifts. Yet, tight system

liquidity and higher technology spend should limit immediate positive revisions, with Benny Kurniawan, CFA

(62-21) 5291 8024

our FY26-28 EPS estimates 3-6% below Bloomberg consensus. That said, with the benny.kurniawan@jpmorgan.com

stock at 10.3/8.9x 2026/27E PE, these negatives appear to be adequately reflected. We PT J.P. Morgan Sekuritas Indonesia