BBNI - Strategy to achieve ROE target of 18% by 2025

BBNI - Strategy to achieve ROE target of 18% by 2025 Bank Negara Indonesia (BBNI) is committed to continuing to improve its ability to provide benefits to shareholders. BNI optimizes profitability and targets a return on equity (ROE) of 18% by 2025. Firstly, BNI optimizes competitive advantages in the form of the widest overseas office network compared to other domestic banks. This is in line with the mandate given by the Government for BNI to become an Indonesian bank with global capacity. Secondly, the bank will remain disciplined in diversifying credit by focusing on healthy business segments, including targeting superior corporate segments or blue-chip companies. Thirdly, BBNI will continue to improve the healthy structure of Third-Party Funds (DPK) and the last strategy from the bank is to prioritize prudent risk management. (Source: Kontan). Comment: We believe wide network will overall support BBNI’s earnings going forward, despite digital transaction base also play crucial role. Credit diversification become as one of the key to manage risk and to book better net interest income. On its third strategy, TPF mix will overall underpin NIM expansion, while prudent risk management should translated as a solid foundation to continue record asset quality improvement.