Kiwoom Research | 1H26 Equity Update - 10 September 2026 PT. Bank Syariah Indonesia Tbk. (BRIS) Steady 1H26 Earnings Despite NIM Pressure Key Takeaways: - Earnings Growth Held Up Despite NIM Pressure. BRIS booked 1H26 net profit of IDR 4.16tn (+11.1% YoY), supported by 38.2% YoY growth in fee-based income and lower CoC of 0.62%, despite NIM declining to 5.42%. - Gold Remained the Standout Financing Growth Driver. Total financing grew 16.0% YoY to IDR 340.1tn, while gold financing surged 80.5% YoY to IDR 30.5tn, increasing its contribution to around 9% of total financing. - Strong Funding and Asset Quality Support Growth. Third-party funds rose 21.8% YoY to IDR 393.3tn, led by 22.3% savings growth. Meanwhile, gross NPF improved to 1.80% and NPF coverage strengthened to 245.3%, supporting further financing expansion. Recommendation: "BUY" We upgrade our recommendation on BRIS to "BUY". Our valuation is derived through a blended valuation approach, combining P/BV and DDM. We determine a 12-month target price of IDR 2,700, implying a 52.11% upside potential from the last close of IDR 1,775. At our target price, BRIS would trade at a 2026F P/BV of 2.1x, above its 3-year SD-1 P/BV level of 1.9x but below its 3-year average of 2.4x. Downside risks include prolonged NIM pressure, weaker financing growth, tighter funding competition, higher credit costs, and deterioration in asset quality. Kevin Yudha Pratama Equity Research KIWOOM SEKURITAS INDONESIA