The 2Q26 earnings season is now underway, with BBCA, BMRI, and BBTN delivering a clear message. At first glance, all three banks posted solid headline earnings for the first half of the year. However, beneath the resilient results, management commentary suggests that funding cost pressures, tight liquidity, and limited room for margin expansion will remain key challenges in 2H26.

While each bank was supported by different earnings drivers, management guidance pointed to a broadly consistent outlook. Competition for deposits is expected to keep funding costs elevated, while Net Interest Margin (NIM) is likely to remain under pressure. At the same time, banks are becoming more selective in loan growth, placing greater emphasis on earnings quality and profitability rather than pursuing volume-driven expansion.
 

The latest round of earnings also signals a shift in market focus. Rather than concentrating solely on headline earnings, investors are increasingly paying attention to earnings quality and the sustainability of future performance. A bank's ability to defend margins, manage funding costs, and provide credible guidance is likely to become a key differentiator in assessing its outlook for the remainder of the year.

Against this backdrop, our analyst maintains a selective stance on the banking sector. The latest earnings reinforce our preference for banks with strong CASA franchises, resilient margins, and solid asset quality. In a higher-for-longer interest rate environment, the ability to preserve profitability is expected to become a more important differentiator than simply delivering stronger loan growth.