PT Bank Woori Saudara Indonesia (SDRA) Stock 2027: Can the Bank Recover From Its 2025 Earnings Shock?
Published: October 30, 2025
Last Updated: October 8, 2026
Financial data and analysis reviewed as of October 8, 2026.
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| PT Bank Woori Saudara Indonesia (SDRA) |
Worldreview1989 - PT Bank Woori Saudara Indonesia 1906 Tbk (IDX: SDRA) enters 2027 as a very different investment story from the one investors saw only a few years ago. The bank still has substantial capital, a large Indonesian banking franchise, and the strategic backing of the Woori group. However, the 2025 financial shock materially weakened profitability and asset quality.
For U.S.-oriented investors, the key question is therefore not simply whether SDRA is a “cheap bank stock.” The more important question is whether the bank can restore normalized earnings, improve credit quality, and convert its strong capital position into sustainable shareholder returns.
The 2027 investment thesis is best described as a turnaround and normalization story rather than a traditional high-growth banking story.
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SDRA at a Glance
PT Bank Woori Saudara Indonesia 1906 Tbk operates in Indonesia's banking sector and is listed on the Indonesia Stock Exchange under the ticker SDRA.
The bank's 2025 financial statements show total assets of approximately IDR56.88 trillion, total equity of approximately IDR10.62 trillion, and interest income of approximately IDR3.89 trillion. However, net income attributable to the year was negative because of substantially higher operating expenses and provisioning-related pressure.
That distinction is important: SDRA was not simply experiencing a small decline in earnings. Its profitability went through a significant reset.
What Happened to SDRA in 2025?
SDRA's 2025 results were the central issue investors need to understand before making a 2027 projection.
Interest income declined from approximately IDR4.07 trillion in 2024 to IDR3.89 trillion in 2025, a decline of about 4.5%.
Net interest income fell from approximately IDR1.75 trillion to IDR1.64 trillion, while other operating expenses increased substantially.
The result was a reported net loss of approximately IDR1.06 trillion for 2025, compared with a profit in the previous period.
The deterioration was also visible in key profitability ratios:
| Metric | 2024 | 2025 |
|---|---|---|
| ROA | -0.77% | -1.82% |
| ROE | -5.02% | -9.42% |
| NIM | 3.25% | 3.06% |
| BOPO | 109.77% | 125.18% |
| LDR | 148.61% | 127.48% |
| CAR | 27.36% | 29.39% |
| Gross NPL | 3.66% | 6.17% |
The combination tells a complicated story.
Profitability deteriorated sharply, but capital remained strong.
That distinction may become one of the most important factors in the SDRA 2027 investment case.
The Good News: Capital Is Not the Immediate Problem
From a U.S. investor perspective, one of SDRA's most attractive characteristics is its capital position.
The bank reported a 29.39% Capital Adequacy Ratio (CAR) in 2025, compared with 27.36% in 2024. That provides a significant capital cushion relative to the bank's balance-sheet risks.
The bank's 2025 equity position was approximately IDR10.62 trillion, while total assets were approximately IDR56.88 trillion.
This means the SDRA story is not primarily about whether the bank has enough capital to continue operating.
Instead, the investment question is:
Can SDRA earn an adequate return on that capital again?
For shareholders, that is much more important.
A bank can have excellent capitalization and still produce poor shareholder returns if credit costs, funding expenses, and operating costs consume its revenue.
Credit Quality Is the Biggest 2027 Variable
The most serious concern is asset quality.
SDRA's gross NPL ratio increased to 6.17% in 2025, compared with 3.66% in 2024. That is a material deterioration.
For a bank investor, this number deserves more attention than a simple P/E ratio.
Why?
Because a bank's future earnings depend heavily on the quality of its loan book.
If NPLs remain elevated:
provisioning expenses can remain high;
net income can remain depressed;
ROE can stay below the cost of equity;
book value can become less productive;
dividend capacity may remain limited.
But if SDRA successfully resolves problem loans and prevents new deterioration, the earnings recovery could be much faster than the headline 2025 loss suggests.
This creates an asymmetric situation.
The downside risk is continued credit deterioration.
The upside case is normalization of credit costs combined with stable loan growth.
Early 2026 Shows a More Interesting Picture
The first-quarter 2026 results provide an important update.
As of March 31, 2026, SDRA reported:
Total assets: approximately IDR54.19 trillion
Total liabilities: approximately IDR41.23 trillion
Equity: approximately IDR12.96 trillion
Net income: approximately IDR106.83 billion
EPS: approximately IDR7.27
This is potentially important for the 2027 thesis.
SDRA had returned to quarterly profitability after the severe 2025 loss.
However, investors should not interpret one profitable quarter as a completed turnaround.
Net interest income in Q1 2026 was approximately IDR387.96 billion, down from approximately IDR433.52 billion a year earlier. Net income was approximately IDR106.82 billion, down from approximately IDR154.33 billion in Q1 2025.
So the recovery is not yet a clean earnings-growth story.
It is better described as:
balance-sheet repair + earnings stabilization + potential normalization.
That is a much more realistic way to analyze SDRA for 2027.
What Would American Investors Like About SDRA?
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| PT Bank Woori Saudara Indonesia (SDRA) |
A U.S. reader evaluating SDRA would probably focus on five characteristics.
1. Strong Capital Buffer
The approximately 29% CAR reported for 2025 is a significant positive.
It gives SDRA room to absorb losses and rebuild the loan book without immediately requiring a large capital injection.
2. Woori Group Connection
SDRA benefits from its relationship with the broader Woori financial ecosystem.
This is strategically relevant because institutional backing can support governance, risk-management standards, technology, corporate banking relationships, and access to expertise.
However, investors should not treat the Woori name as a guarantee of SDRA's profitability.
The subsidiary still needs to generate acceptable returns independently.
3. Indonesian Banking Growth
Indonesia remains a structurally attractive banking market.
OJK reported that Indonesian bank credit grew 11.51% year over year in May 2026, while third-party funds increased 13.49%. By July 2026, banking credit and funding conditions remained supportive, with banking-sector asset quality and capital ratios still considered resilient.
This creates a favorable long-term industry backdrop.
4. Potential Earnings Normalization
A bank that moves from a large loss toward normalized profitability can produce significant changes in valuation.
If SDRA can return to sustainable positive ROE, the market may begin valuing the shares based on normalized earnings rather than the 2025 crisis year.
5. Possible Dividend Recovery
SDRA has historically distributed dividends, and market data currently shows a recent dividend of approximately IDR8 per share.
However, dividend investors should not assume the recent distribution represents a sustainable 2027 yield.
The priority should be earnings recovery and balance-sheet quality first.
What Would Concern American Investors?
The negative side of the thesis is equally important.
Elevated NPLs
The move to a 6.17% gross NPL ratio is a major warning signal.
Weak ROE
A negative ROE of -9.42% in 2025 means shareholders were not receiving an economic return from the bank's capital during that period.
A recovery toward even 8–10% ROE would therefore represent a major improvement.
Margin Pressure
NIM declined from 3.25% to 3.06%.
This is important because banks ultimately depend on the spread between asset yields and funding costs.
Operating Efficiency
BOPO increased to 125.18% in 2025.
A ratio above 100% indicates that operating expenses were extremely heavy relative to operating income.
For SDRA, improving efficiency may be almost as important as growing loans.
Liquidity and Funding Structure
The LDR ratio remained high at 127.48% in 2025, although this was lower than 148.61% in 2024.
The decline is encouraging, but funding discipline remains a key issue to monitor.
Indonesia's Interest-Rate Environment Matters
Bank Indonesia's monetary policy is another major variable for SDRA.
In August 2026, Bank Indonesia maintained the BI-Rate at 5.75%, while continuing measures intended to support liquidity, exchange-rate stability and sustainable economic growth.
For SDRA, interest rates can affect both sides of the balance sheet.
Lower funding costs can eventually support NIM and profitability.
However, aggressive competition for deposits can prevent banks from capturing the full benefit of lower market rates.
Therefore, investors should not assume:
lower rates = automatically higher SDRA profits.
The critical variable is the bank's ability to manage the spread.
SDRA 2027 Financial Scenario Analysis
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| PT Bank Woori Saudara Indonesia (SDRA) |
Rather than claiming a precise 2027 earnings forecast, a scenario model provides a more responsible approach.
Bear Case
Assumptions:
NPL remains elevated.
Provisioning remains high.
NIM remains around 3%.
Loan growth remains weak.
ROE remains below 5%.
Under this scenario, SDRA could remain a low-quality value trap despite its strong capital position.
Investment view: Avoid / Wait for evidence of asset-quality improvement.
Base Case
Assumptions:
Credit quality gradually improves.
NIM stabilizes.
Loan growth returns to mid-single-digit or high-single-digit levels.
Operating costs become more controlled.
ROE recovers toward approximately 7–9%.
This would represent a meaningful normalization scenario.
Investment view: Speculative accumulation for investors comfortable with turnaround risk.
Bull Case
Assumptions:
NPL falls materially.
Provisioning normalizes.
NIM improves.
Loan growth accelerates.
ROE moves toward approximately 10–12% or higher.
Dividend capacity improves.
Under this scenario, SDRA could experience both earnings recovery and multiple expansion.
Investment view: Potentially attractive turnaround opportunity.
A Better Way to Value SDRA for 2027
For banks, price-to-book value (P/B) is often more useful than simply applying a P/E multiple to a highly volatile earnings base.
SDRA's 2025 year-end equity was approximately IDR10.62 trillion. However, Q1 2026 reported equity attributable to owners of approximately IDR12.96 trillion, reflecting a substantial change from the year-end balance.
The crucial valuation question is therefore:
What multiple should investors pay for SDRA's normalized book value?
A bank producing only 3–5% sustainable ROE should normally command a relatively low P/B multiple.
A bank capable of sustainably producing 10–12% ROE deserves a substantially higher valuation.
This is why the 2027 SDRA thesis should focus on ROE recovery, not simply the headline share price.
SDRA 2027 Valuation Framework
A practical investor framework could look like this:
| Scenario | Normalized ROE | Valuation Logic | 2027 View |
|---|---|---|---|
| Bear | <5% | Low P/B justified | Avoid / Wait |
| Base | 7–9% | Moderate P/B | Speculative Buy |
| Bull | 10–12%+ | Higher P/B justified | Attractive |
| Strong Bull | >12% | Re-rating possible | High Upside |
This is deliberately a scenario framework rather than a false precision price target.
The exact fair value should be recalculated when SDRA releases additional 2026 financial statements because the bank's book value, earnings, credit costs and share price will change.
The Most Important SDRA Numbers to Watch in 2026–2027
Investors should monitor these indicators every quarter:
1. Gross NPL
Target: sustained decline from the 2025 level.
2. Net NPL
This tells investors how much credit deterioration remains after provisions.
3. NIM
A stable or rising NIM would indicate improving earning power.
4. Cost of Credit
This may be the single most important turnaround indicator.
5. ROE
The ultimate test is whether SDRA can generate an attractive return on shareholder capital.
6. CAR
Capital should remain comfortably above regulatory requirements while the bank rebuilds profitability.
7. Loan Growth
Loan growth should preferably occur without sacrificing credit quality.
8. Cost-to-Income / BOPO
A reduction would demonstrate that management is converting revenue into shareholder earnings more efficiently.
Unique Analytical View: SDRA Is a "Capital-Rich, Earnings-Poor" Turnaround
The most interesting way to look at SDRA is not as a conventional growth bank.
It is a capital-rich but earnings-impaired bank.
That distinction creates the potential investment opportunity.
In 2025, SDRA had approximately IDR10.62 trillion of equity and a CAR close to 29.4%, yet it generated a large loss.
That means the problem was not simply lack of capital.
The problem was capital productivity.
If management can transform the existing capital base into higher-quality loans, normalize provisioning and improve operating efficiency, earnings could recover faster than the balance sheet needs to grow.
That creates an important 2027 possibility:
SDRA may not need explosive asset growth to create shareholder value. It may only need to make its existing balance sheet substantially more profitable.
That is the core of the turnaround thesis.
SDRA vs. a Typical Indonesian Bank Investment
A U.S. investor might think of SDRA differently from a conventional Indonesian banking compounder.
A mature high-quality bank is normally valued according to:
ROE + growth + asset quality + dividend + valuation.
For SDRA, the sequence should be:
Asset-quality repair → earnings normalization → ROE recovery → valuation re-rating → dividend normalization.
That sequence matters.
Buying SDRA purely because the stock looks inexpensive before evidence of recovery appears could lead to a value trap.
Buying after the bank demonstrates sustained improvements in NPL, NIM and ROE may mean paying a higher price—but with considerably lower fundamental risk.
Is SDRA Stock a Buy for 2027?
For investors with a conservative profile, SDRA should not yet be treated as a conventional core banking holding.
The 2025 financial results were too weak, and the deterioration in NPL and profitability cannot be ignored.
For a more aggressive investor, however, SDRA is more interesting.
The bank has:
substantial capital;
a recognized banking franchise;
Woori group affiliation;
exposure to Indonesia's long-term credit market;
evidence of returning to quarterly profitability in Q1 2026;
and potentially significant earnings-recovery leverage if credit costs normalize.
Therefore, my 2027 classification would be:
SDRA: SPECULATIVE TURNAROUND / WATCHLIST
Not a classic “buy and forget” bank stock.
The investment becomes considerably more attractive if the following combination appears during 2026:
NPL ↓ + cost of credit ↓ + NIM stable/up + ROE ↑ + loan growth ↑
If those five indicators improve together, the market may begin pricing SDRA on normalized earnings rather than the 2025 crisis.
What Could Make SDRA Stock Re-Rate in 2027?
Three developments could trigger a meaningful re-rating.
First: Asset quality recovery.
If NPL falls materially from the 2025 level, investors may become more comfortable with the bank's loan book.
Second: ROE recovery.
A move from negative ROE toward 8–10% would dramatically change the investment narrative.
Third: Sustainable dividend capacity.
Once earnings become predictable again, dividend investors may return.
The combination could produce a valuation effect greater than earnings growth alone.
Final Verdict
PT Bank Woori Saudara Indonesia (IDX: SDRA) is potentially interesting for 2027, but primarily as a turnaround investment.
The 2025 numbers are clearly concerning: net loss, negative ROE, elevated NPL and weaker NIM.
At the same time, SDRA possesses an important counterweight—strong capitalization—and Q1 2026 showed that the bank had returned to profitability, although earnings remained below the prior-year level.
For U.S.-oriented investors, the key lesson is simple:
Do not buy SDRA merely because it looks cheap. Buy the recovery only if the financial evidence confirms that the recovery is real.
The most important 2027 signal will not be the share price.
It will be whether SDRA can turn its large capital base into sustainable double-digit-quality returns without another deterioration in credit quality.
If it succeeds, SDRA could transition from a distressed-looking bank stock into a genuine Indonesian banking recovery story.
If it fails, the strong capital ratio alone may not be enough to generate attractive shareholder returns.
Investment stance for 2027: Watchlist / Speculative Turnaround, with a preference for confirmation of NPL and ROE improvement before taking a large position.
Primary Sources & Authority References
Primary Source 1 — Bank Woori Saudara Annual Reports
According to PT Bank Woori Saudara Indonesia 1906 Tbk’s official annual-report disclosures, investors can review the bank’s audited financial performance, capital position, profitability, and other key indicators through its investor-relations materials. The bank provides annual reports covering multiple reporting years, including 2025 and prior periods. (Bank Woorisaudara)
Official source: Bank Woori Saudara – Annual Reports
Primary Source 2 — Financial Performance
PT Bank Woori Saudara Indonesia 1906 Tbk reported a Capital Adequacy Ratio (CAR) of 29.39% for December 2025, while its Net Interest Margin (NIM) was 3.06% and its Non-Performing Loan (NPL) ratio was 1.95%. The bank also reported total assets of approximately IDR 56.88 trillion for 2025. These figures provide important indicators for assessing the bank’s capital strength, lending quality, and earnings capacity. (Bank Woorisaudara)
Official source: Bank Woori Saudara – Financial Performance Report
Primary Source 3 — Audited Financial Information
Investors should also refer to PT Bank Woori Saudara Indonesia 1906 Tbk’s published financial statements when evaluating the company’s financial position and investment prospects. The bank publishes financial statements through its official investor-relations section, including audited and interim financial information. (Bank Woorisaudara)
Official source: Bank Woori Saudara – Financial Statements
Primary Sources: Financial and corporate information in this article is based on official disclosures from PT Bank Woori Saudara Indonesia 1906 Tbk, including its annual reports, financial statements, and published financial-performance indicators. Readers should consult the company’s official investor-relations materials for the latest reported figures and disclosures. (Bank Woorisaudara)
Official Investor Relations: PT Bank Woori Saudara Indonesia 1906 Tbk – Investor Relations
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