BBNI - Solid fundamentals opening 2025

BBNI - Solid fundamentals opening 2025 Bank Negara Indonesia (BBNI) recorded a 9.7% increase in net profit in January 2025 compared to the same period last year or yoy, from IDR1.48 tn to IDR1.63 tn. The increase was accompanied by credit growth and Net Interest Income (NII). In addition, the pressure on the Net Interest Margin has started to ease at the beginning of this year compared to the end of last year. BNI's President Director, Royke Tumilaar, stated that the company's efforts to maintain sustainable growth are evidenced by its financial performance achievements from 2024 to the first month of 2025. The solid fundamentals of BNI are evident from the performance throughout 2024 and January 2025, which consistently show profit growth and credit distribution in supporting our expansion this year, said Royke. Based on the January 2025 financial report data published on the company's website, BNI's credit distribution increased from IDR679.9 tn to IDR749.8 tn, growing by 10.3% yoy. Net Interest Income (NII) increased from IDR3.12 tn to IDR3.17 tn. BNI consistently prioritizes profitability growth, where credit growth is still supported by low-risk segments, namely the corporate segment which grew 17% yoy and consumer credit which increased 14% yoy. "Based on these achievements, we are confident that BNI can provide attractive added value for investors and all stakeholders," concluded Royke. (Source : Company). Comment : BBNI's January 2025 performance is very positive, reflecting sound management and a favorable market environment. The company's focus on sustainable growth and shareholder value is evident in its financial results and dividend plans. The bank's ability to maintain solid asset quality while expanding its credit portfolio is a key strength. The DHE proceed regulations will become as additional catalyst. We also like BBNI’s plan to proposed a higher payout ratio (last year DPO: 50%). Maintain BUY BBI with GGM TP of IDR6,300, derived from our GGM (1.3x '25F P/B).