Bank Raya's Strategic Position in Digital Banking Expansion

Attractive Valuation in Growing Sector

PT Bank Raya Indonesia Tbk. (AGRO) is gaining attention in the digital banking space due to its attractive valuation metrics. As of November 28, 2025, AGRO's Price-to-Book Value (PBV) stands at 1.60x, significantly lower than the digital banking industry average of 3.2x. This valuation gap presents a potential investment opportunity as the bank continues to show strong growth in its digital banking operations.

Strong Growth Momentum

The bank's Q3 2025 financial results demonstrate robust performance with 23.9% YoY growth in net profit to Rp41.97 billion. Key drivers include:

• 50.1% YoY growth in digital lending to Rp17.56 trillion, primarily through Pinang Dana Talangan
• 61.4% YoY increase in digital deposits to Rp1.75 trillion
• Successful implementation of online-to-offline (O2O) strategy leveraging BRI's extensive network

Strategic Advantages within BRI Ecosystem

As a digital banking arm of BRI Group, Bank Raya benefits from its parent company's infrastructure while maintaining agility as a digital attacker. The O2O strategy effectively reduces customer acquisition costs while utilizing BRI's physical presence for expansion. This ecosystem approach has proven successful with significant growth in both lending and deposits.

Market Position and Comparative Analysis

Comparative valuation metrics highlight AGRO's attractiveness:

• AGRO PBV: 1.60x | Market Cap: Rp5.69 trillion
• ARTO PBV: 4.30x | Market Cap: Rp28.10 trillion
• BANK PBV: 4.10x | Market Cap: Rp13.80 trillion
• BBYB PBV: 1.40x | Market Cap: Rp5.80 trillion

Macroeconomic Support

The bank's prospects are further supported by favorable macroeconomic conditions:

1. Potential rate cuts by global central banks, including The Fed, could lower funding costs
2. Increased foreign inflow into emerging markets, including Indonesia
3. Continued digitalization of UMKM (Micro, Small, and Medium Enterprises)

Investment Outlook

With its current valuation, growth trajectory, and strategic positioning within the BRI ecosystem, Bank Raya presents a compelling investment case. The stock closed at Rp230 per share on December 12, 2025, with a 0.88% daily gain. As digital banking continues to grow and foreign investors return to emerging markets, AGRO's prospects appear promising.