BBNI - To distribute dividends of IDR10.45 tn

BBNI - To distribute dividends of IDR10.45 tn The Annual General Meeting of Shareholders (GMS) for the 2023 financial year of Bank Negara Indonesia (BBNI) has approved the distribution of dividends of 50% of the net profit for the 2023 financial year, worth a total of IDR10.45 tn. The value of the dividend distribution increased by 42.76% from the total dividend for the 2022 financial year of IDR7.32 tn. Thus, the dividend value per share this time is set at IDR280.49. Taking into account the composition of shares owned by the Government of 60%, the Company will deposit dividends of IDR6.27 tn into the State General Treasury account. Meanwhile, the other 50% portion of the Company's net profit or IDR10.45 tn will be used as retained earnings for BBNI Group's future sustainable business development. (Source: Kontan). Comment : We like BBNI’s DPO and believe that the ratio likely to be well managed in the next dividend payment. Its continuing historical solid growth and the potential steady earnings growth could bring higher DPS payment in ‘24F. Maintain our BUY stance for BBNI with GGM TP of IDR6,530 (1.4x ‘24F P/B), while its currently trading at 1.3x ‘24F P/B, or below its +1SD historical mean.