BBNI - 1Q25 earnings; inline

KBVS Update
Wednesday, 30 April 2025

BBNI: 1Q25 earnings; inline
(Maintain BUY; TP: IDR5,920)

* BBNI's 1Q25 came in line with street and our ‘25F for BBNI at a run rate of 23.2%/23.4% compared to 23.8%, while on quarterly basis the 1Q25 net income of IDR 5.38tn (4.4% qoq), was inline vs consensus expectation of IDR 5.24tn and beating our 1Q25F for BBNI net profit of IDR 5.21tn.

* BBNI demonstrated robust loan growth, surpassing industry, our ‘25F loan growth for BBNI and around 10bps above BBNI ‘25F high range guidance of 10.0% yoy. Ongoing liquidity constraints resulted in a plateau in total third-party funds (5.0% yoy). Yet we like the TPF driver growth which came from solid saving account of 10.25% yoy.

* We expect a much higher NIM in the upcoming quarter (1Q25 flattish NIM still very closed with guidance). We believe key risk metrics, credit cost, will continue to stay low (1Q25 at 0.9%, beating management guidance and our ’25F for BBNI).

* Maintain BUY. We adjusting our risk free and MRP by 75bps and 18bps to accommodate the previous banking stock massive sell-off. Our new GGM-based TP of IDR 5,920 is pegged at 1.2x '25F P/B (previously 1.3x '25F P/B). The stock is currently attractively trading at its -1SD historical mean of 0.9x '25F P/B.

Regards,
Akhmad Nurcahyadi - KBVS Research