Jakarta. KB Bank Indonesia returned to profitability in 2025, posting a consolidated net profit of Rp 66.59 billion ($3.9 million) after recording a net loss of Rp 6.33 trillion ($373 million) in 2024, reflecting a significant turnaround in its financial performance.

According to a company statement released on Thursday, the recovery was driven by improved business fundamentals, including higher net interest income and a sharp decline in provisioning costs.

Total loans reached Rp 44.39 trillion in 2025, up from Rp 41.46 trillion a year earlier, indicating continued but selective expansion focused on asset quality.

The bank also reduced its loan-at-risk ratio to 20.31% from 22.76% in the previous year, underscoring improvements in credit quality.

Net interest income rose 3.40% to Rp 1.19 trillion from Rp 1.15 trillion, while net interest margin (NIM) improved to 1.43%, reflecting more efficient funding cost management.

On the liquidity front, the loan-to-deposit ratio (LDR) improved to 91.07% from 103.26%, signaling a healthier and more balanced funding structure. The improvement was supported by growth in third-party funds, particularly in current accounts and savings, strengthening the bank’s low-cost funding base.

KB Bank maintained a strong liquidity position, with a liquidity coverage ratio (LCR) of 220.01%, a net stable funding ratio (NSFR) of 101.82% — both above regulatory requirements — and a capital adequacy ratio (CAR) of 16.25%.

President Director Kunardy Darma Lie said the return to profit reflects disciplined execution of the bank’s multi-year transformation strategy.

“We are not only focused on growth, but also on ensuring that growth is of high quality and sustainable. Going forward, we recognize there is still room for improvement, particularly in strengthening credit quality and overall business fundamentals,” Kunardy said in the statement.

The bank also continued to support key sectors of the economy through targeted financing. In the property and industrial estate segment, KB Bank extended up to Rp 250 billion in financing to Intiland Sejahtera. In healthcare, it provided Rp 110 billion to KAI Medika Indonesia for the development of Brawijaya Hospital.

Additionally, KB Bank supported the industrial sector by participating in the issuance of Rp 400 billion in sukuk by Pabrik Kertas Tjiwi Kimia, reinforcing its role in capital market financing.