Best Islamic bank 2025: Bank Tabungan Negara
Bank Tabungan Negara (Bank BTN) of Indonesia has distinguished itself as an industry leader, meriting Euromoney’s award for the country’s Best Islamic Bank.
Remarkable achievements across several key financial metrics and innovative product offerings have significantly enhanced its market position while staying true to the tenets of Islamic banking.
The profitability growth of Bank BTN is impressive, with an increase in net profit from Rp185 billion ($11.2 million) in 2021 to IDR 911 billion in 2024. This translates to a compound annual growth rate of 70.1% over that period, and a year-on-year growth of 29.8% in 2024 alone.
The bank has outperformed its peers with an asset growth of 17.9%, compared to the industry average of 10.8%. This financial robustness extends to its financing and mortgage sectors as well, where it reported growth rates of 20.2% and 14.3% respectively, significantly higher than industry norms.
Another groundbreaking achievement for Bank BTN is the successful implementation of its bancassurance model, which embraces Shariah-compliant insurance (takaful). This initiative not only aligns with Islamic financial principles but also widens the scope of their banking services to more inclusive products. Under this model, the bank has rolled out new Shariah mortgage and home financing options that cater to a broad spectrum of customers.
Products like FLPP (a housing finance liquidity facility), which assists low-income buyers, and BP Tapera, which offers a 30-year financing tenure, demonstrate the bank’s commitment to providing financially accessible options to its clientele.
These strategic initiatives underscore Bank BTN’s leadership in blending financial growth with innovative, ethically grounded products that serve a diverse customer base. Its tailored approach not only broadens financial inclusion but also upholds the values central to Islamic banking, making it a worthy recipient of this prestigious accolade.
Best Islamic bank for ESG 2025: Bank Syariah
Bank Syariah has established itself as 2024’s foremost Islamic bank for environmental, social, and governance (ESG), setting new standards for sustainability through innovative issuance, strategy and training initiatives.
Bank Syariah made history in June 2024 with Indonesia’s first corporate ESG sukuk, raising Rp9 trillion ($542 million) in an issuance that was oversubscribed three times. This groundbreaking sukuk uniquely combined Islamic finance principles with sustainability objectives, directing funds towards impactful green and social projects aligned with international standards.
The bank has demonstrated remarkable growth in sustainable financing, reaching Rp66.4 trillion by Q4 2024 – constituting 23.88% of its total portfolio. This includes Rp52.4 trillion in social financing and Rp14.1 trillion in green financing, with impressive growth rates of 101% and 108%, respectively. Key focus areas included sustainable management of biological and land resources, and eco-efficient products.
In July 2024, Bank Syariah Indonesia established a dedicated ESG group to coordinate sustainability strategy, governance and reporting across the organisation. The bank has designed a comprehensive 2025-2030 roadmap that clearly outlines ESG targets and their implementation strategy.
Bank Syariah leads in climate risk assessment too, through its climate risk management and scenario analysis framework, which systematically evaluates climate-related impacts on financial performance and governance structures. The bank is also Indonesia’s first Islamic financial institution to track carbon emissions across all 1,130 outlets, with offsetting initiatives reducing 949.98 tonnes of CO₂ equivalent emissions in 2024.
Bank Syariah distributed Rp222 billion in corporate zakat in 2024 – the highest among Indonesian banks – funding numerous SDG-aligned social initiatives. The bank innovatively introduced green zakat programmes, further integrating Islamic charitable principles with environmental sustainability.
The bank’s management has cultivated a comprehensive green business culture, achieving 85% ESG awareness among its 15,233 employees through literacy programmes, knowledge sharing and educational seminars. The work has continued following the review period, with the launch in early 2025 its green business culture initiative, focused on resource conservation and sustainable operational practices.
Specialised ESG training curricula is incorporated at basic, intermediate and advanced levels for various managerial functions, ensuring sustainability principles are embedded throughout the organisation. For its leadership in the field, Bank Syariah takes Euromoney’s award as Indonesia’s best Islamic bank for ESG.
Best Islamic bank for wealth management 2025: Bank Syariah
In 2024, Bank Syariah’s wealth management group (WMG) delivered outstanding performance, significantly advancing its position in the Islamic financial sector.
Key financial metrics showed robust growth, with total managed funds reaching Rp75 trillion ($4.56 billion), a 13% year-on-year increase, assets under management growing 54% year-on-year to Rp19.76 trillion, and third-party funds (DPK) rising steadily to Rp54.96 trillion. The customer base expanded to 69,604, supported by a 127% increase in new investors.
Profitability saw a strong boost through fee-based income of Rp119.8 billion – up 114% year-on-year – driven by successful sukuk and secondary market sales. Net interest income grew 23% to Rp1.129 trillion, while the cost of funds was efficiently managed at 1.92%.
The WMG introduced several new products, including the Protection Syariah Mutual Fund, offshore USD funds, and innovative bancassurance options in collaboration with partners like Prudential and BNI Life. Digital initiatives such as online mutual fund purchases via BSI Mobile and the development of a consolidated statement platform further improved customer experience.
Service enhancements included estate and inheritance planning, medical and mourning concierge services, and new priority lounges. Strategic partnerships with government ministries, state-owned enterprises and hospitals attracted high-net-worth clients, boosting engagement and loyalty.
