Chartsiri Sophonpanich, President of Bangkok Bank Public Company Limited (SET: BBL), stated that the bank remains confident in Indonesia’s medium-to-long-term economic outlook as the country is the largest economy in ASEAN.
With a population of approximately 280 million, demographic structures favorable to growth, and an economy roughly twice the size of Thailand’s, Indonesia presents a high-potential market with long-term business opportunities, particularly driven by expanding economic activity and demand for financial services.
Consequently, the bank continues to prioritize its business operations in Indonesia through Permata Bank, while supporting Thai entrepreneurs in expanding trade and investment across ASEAN countries. Meanwhile, overall income from international operations remains steady at previous levels.
Kobsak Pootrakool, Senior Executive Vice President of BBL, stated that the investment in Indonesia’s Permata Bank is a long-term strategic investment, and the bank sees no need to record an impairment loss despite the decline in Permata’s stock price. He explained that the investment does not significantly impact BBL’s operating performance, as Permata remits recurring income to the bank on a quarterly and annual basis, rather than as a one-off extraordinary gain.
Regarding Permata Bank’s operating performance in the first nine months of 2026, the bank reported a net profit of THB 4.8 billion, with third-quarter net profit reaching THB 1.6 billion. The bank maintained sound asset quality, with a non-performing loan (NPL) ratio of 2.1% and a high NPL coverage ratio of 373%, reflecting its capacity to absorb credit risk.
However, Permata’s operating performance faced pressure from a narrowing net interest margin (NIM), which declined to 3.9% from 4.0% in the same period last year, amid Indonesian economic uncertainty and government policies that could influence business direction moving forward.
Regarding the decline in Permata’s share price, BBL attributed it to liquidity factors and a low free float proportion, alongside volatility in the Indonesian stock market, noting that it does not directly reflect long-term investment value. BBL is currently taking steps to increase Permata’s free float and considering options to enhance share liquidity, while a potential future delisting from the stock exchange remains another consideration.
Meanwhile, Phillip Securities (Thailand) noted that MSCI’s proposal to reclassify the Indonesian stock market from Emerging Markets to Standalone Market status could create downward pressure on domestic stock prices, including BBL’s holdings in Permata. However, the brokerage stated this issue does not impact BBL’s 2026 profit forecast of THB 39 billion—a 14.6% decrease—while maintaining its dividend forecast of THB 10 per share, setting a target price of THB 198, and issuing an “Accumulate” recommendation.
