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BBNI - Another solid bank only earnings in 8M24; inline

Akhmad Nurcahyadi 23 September 2024

KBVS Update
Monday, 23 September 2024

BBNI: Another solid bank only earnings in 8M24; inline
(Maintain BUY; TP: IDR6,530)

* BBNI's 8M24 bank-only earnings grew by 4.3% yoy, reaching IDR14.22tn. Despite experiencing small single-digit growth, 8M24 earnings of IDR14.22tn were in line with our expectations and reached approximately 101% of our projected 8M24F bank-only net profit for BBNI of IDR14.07tn.

* With such results, 9M24 should be another in-line performance result, in our view. Even when assuming a 5% yoy decrease in mom growth for Sept24, projected 3Q24 earnings (Rp5.5tn) remain close to our 3Q24F for BBNI of Rp5.6tn.

* Total loans in Aug24 were 9.0% higher yoy, reaching the lower end of the '24F management guidance for loan growth of 9.0-11.0% yoy (industry: 11.40% yoy; KBVS '24F: 10.42% yoy). This growth was primarily driven by the general trading and natural resources sectors. On TPF side, we anticipate that a more robust deposit mix will benefit BBNI's NIM expansion in the coming quarters.

* On profitability ratio, NIM saw a mild expansion on a mom basis and arrives in line with ‘24F BBNI guidance at ≥4.0%. Key risk metrics slightly surpass management aspiration at 1.0% vs. 0.9% (bank only 8M24) and beat our ‘24F CoC figure for BBNI (consolidated level) at 1.4%.

* Maintain BUY, GGM TP of IDR6,530 (pegged at 1.4x ‘24F P/B), while currently trading at 1.3x ‘24F P/B or slightly below the +1SD 1.4x.

 

Regards,
Akhmad Nurcahyadi - KBVS Research

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