BBNI - EGMS Results Update

BBNI - EGMS Results Update Bank Negara Indonesia (BBNI), approved the Company's Stock Split with a ratio of 1:2 (one to two) on its EGM. Stock Split is implemented no later than 30 days after the EGM approves the Stock Split implementation plan, with an estimated effective date of the second week of October 2023. There is no change in the composition of the BOD. BoC: Respectfully dismiss Mr. Agus Martowardojo as President Commisioner, Appointed Mr. Pradjoto as President Commissioner (previously Vice President Commissioner), and appointed Mr. Pahala Nugraha Mansury as Vice President Commissioner (currently vice minister of foreign affairs). (Source: PT Bank Negara Indonesia) Comment: As expected, EGMS approved BBNI’s stock split with a ratio of 1:2. Post stock split, despite it only creates psychological effect, BBNI stocks will become more affordable especially for retail investor base. At this juncture, BBNI’s lagging stock performance, undemanding valuation and higher foreign holding as well as continuing robust monthly bank only performance and key metrics should reiterates BBNI’s attractiveness. Maintain BUY with TP IDR11,160 (1.4x ‘23F P/B), while currently trading at 1.1x ‘23F P/B, or at its 10-yr historical mean of 1.1x.