BBNI - Inline 1Q26 earnings; QoQ spike, on provision sharp drop

KBVS Update
Wednesday, 6 May 2026

BBNI: Inline 1Q26 earnings; QoQ spike, on provision sharp drop
(Maintain BUY; TP: IDR4,720)

* Amid the prolonged uncertainty, BBNI delivered a solid 1Q26 result, with earnings growing +5.2% YoY (IDR5.66 tn). A massive +14.9% QoQ rebound was catalyzed by a sharp drop in provisioning costs, placing the bank’s ‘26F run-rate aligned with our and consensus expectations at 26.2%/26.6%.

* Loan growth surged +20.1% YoY (IDR 919.32 tn), crushing the industry March ‘26F loan growth of +9.5% YoY. Momentum was led by Middle-segment (+37.9% YoY) and Corporate (+23.5% YoY) lending. Total TPF grew +34.3% YoY, fueled by a +26.6% YoY jump in CASA despite a competitive environment.

* NIM remained resilient at 3.6%, comfortably within the 3.5%–3.8% ‘26F BBNI’s guidance. BBNI continues to fortify its balance sheet, making its reserves stronger and more resilient. LAR improved to 8.6% (vs. 10.9% in 1Q25, while NPL Gross is very well-managed at 1.9%. Cost of credit dropped to 1.1%, hitting the sweet spot of management’s 1.0%–1.2% guidance.

* Maintain BUY, GGM-TP of IDR4,720 (1.0x ’26F P/B), while currently (0.8x) attractively traded at its -2SD ‘26F P/B.

Regards,
Akhmad Nurcahyadi - KBVS Research