BBNI - set strategy in the challenging year

Bank Negara Indonesia (BBNI), optimist could grow positive through transformation amid the challenging year in 2023. CeO BBNI, Mr Royke Tumilar also stated that liquidity remain ample and very well managed. The bank will continue to focus consumer and corporate segment as well as SME’s which has export oriented. (Source : Investor Daily). Comment: We also expect corporate segment will remain play important role in 2023, aside from consumer segment we think will continue to contributes significantly to BBNI’s total loan. Manageable asset quality could persist and should help the bank to report a stable low provision which will underpin earnings to grow solid, despite at lower rate due to high based effect in 2022. Maintain BUY BBNI, DDM TP at Rp10,600 (1.4x 2022F P/B).