Jakarta. Bank SMBC Indonesia (IDX: BTPN) reported a sharp decline in consolidated profit in 2025 despite stronger lending and funding growth, as higher operating expenses and provisioning weighed heavily on the bank’s bottom line.

SMBC Bank booked a consolidated net profit attributable to owners of the parent entity of Rp505.55 billion ($29.86 million) in the 2025 financial year, plunging 82.02% from Rp2.81 trillion recorded a year earlier.

The drop significantly eroded the bank’s earnings per share (EPS), which fell from Rp279 per share to Rp47 per share.

Net interest income still improved during the year, rising from Rp15.24 trillion in 2024 to Rp15.99 trillion in 2025. However, rising operational expenses cut deeply into profitability, pushing operating profit down to Rp626 billion, a steep decline from Rp4.44 trillion in the previous year.

“Our consolidated performance in 2025 reflects our strategy of focusing on business fundamentals supported by strong corporate governance,” SMBC Indonesia President Director Henoch Munandar said in a statement on Wednesday.

As of December 2025, SMBC Indonesia’s consolidated assets reached Rp245.9 trillion, growing 2.0% year-on-year (yoy).

On the lending side, consolidated loans increased 3.3% yoy to Rp185.4 trillion by the end of 2025. The growth was driven by several segments, including corporate and commercial lending, which expanded 6.5% yoy, and Jenius loans outside the Digital Micro segment, which rose 11.3% yoy.

The loan expansion was supported by a more efficient funding structure. The bank’s low-cost funds (CASA) rose 16.7% yoy to Rp53.2 trillion, lifting the CASA ratio to 40.6%.

SMBC Indonesia also strengthened its allowance for impairment losses (CKPN) on a consolidated basis, particularly at its subsidiary OTO Group. The bank said the move reflected a prudent response to the economic dynamics in 2025 and part of the financial conglomerate parent entity’s effort to uphold prudential principles and maintain strong capital.

“The increase in consolidated CKPN reflects our effort as the parent entity of the financial conglomerate to enhance the implementation of good corporate governance standards and maintain the bank’s asset quality and resilience. As a result, SMBC Indonesia recorded consolidated net profit attributable to owners of the parent entity of Rp506 billion in 2025,” Henoch said.

Separately, SMBC Indonesia as a standalone bank recorded net profit after tax of Rp1.5 trillion in 2025.

Meanwhile, its subsidiary Bank BTPN Syariah (BTPS) posted consolidated net profit of Rp1.201 trillion in 2025, growing 13.2% yoy, with financing distribution reaching Rp10.3 trillion, up 2% yoy, Henoch added.

As of 11:58 a.m. local time, BTPN shares traded at Rp2,030 per share, down 80 points or 3.79%, bringing the bank’s market capitalization to Rp21.39 trillion.