BBNI - Provides dividend clue, DPR Will Increase to 60%

BBNI - Provides dividend clue, DPR Will Increase to 60% Bank Negara Indonesia (BBNI) has provided a framework for the distribution of dividends for the 2024 financial year. BNI's President Director, Royke Tumilaar, stated that he is striving to increase the dividend payout ratio to above 50%. According to him, the state-owned bank has sufficient capital to support the increase in dividend distribution. "That's why we will later see the [capital] capability for the next 5 years." "I think if we raise the dividend a little, there won't be any issues," said Royke when met at Hotel Mulia Senayan, Wednesday (15/1/2025). Royke said BNI plans to slightly increase the dividend payout ratio to around 55% to 60%. Just a reminder, BNI last year distributed 50% of the total profit for the 2023 financial year. Thus, the dividend value is IDR280.49 per share. (Source : Cnbc Indonesia) Comment : BBNI's plan to increase its dividend payout ratio to 55-60% for FY24, supported by a strong capital position, underscores its commitment to shareholder returns and confidence in its financial performance. Our FY24F DPO estimate of 45% translates to a projected dividend of IDR9.41 tn, or IDR252 per share. We anticipate BNI to maintain a robust dividend policy in the coming years, with an estimated average DPO of 50% over the next three years, translating to an average dividend per share of IDR301 and a dividend yield of 7.4%. Assuming BNI executes its plan to increase the payout ratio, we can expect a dividend yield enhancement of approximately 34 basis points above our current forecast. We maintain our BUY rating for BBNI with a target price of IDR6,300, implying a 1.3x '25F P/B.