BBNI - KTA Analyst Meeting FY23 results

BBNI - KTA Analyst Meeting FY23 results Bank Negara Indonesia (BBNI) FY23 net interest income grew flat at -0.1% yoy to IDR41.27 tn, operating income and PPOP growth at 2.1% yoy and 1.6% yoy. Provision sharply declined by 20.1% yoy, while PATMI grew double digit by 14.2% yoy to IDR20.9 tn. On balance sheets, loan growth recorded 7.6% yoy higher. TPF grew by 5.4% yoy and much stronger on quarterly basis (8.4% yoy) backed by solid CASA growth at 12.6% yoy and weakening TD growth by 0.6% yoy. CoC and NPL continue to improve with well managed NIM as well as better LAR. (Source: Company) Comment: Transmission adjustment as a result of rising benchmark rate is acceptable. Continuing asset quality improvement has overall helped BBNI’s provisions to continue softened and boost PATMI which grew at double digit rate (14.2% yoy). FY23 earnings was inline with street forecast and beating our ‘23F earnings for BBNI at a run rate of 99%/103%. Loan growth arriving within management expectation, while TPF growth surpassing banking industry growth. We also like BBNI’s liquidity growth, especially on qoq basis (CASA: 12.6% yoy), which could benefit the bank CoF in the following quarter. In all, we like BBNI FY23 results which should be translated as a solid foundation for 2024 performance. Maintain BUY DDM TP of IDR5,750 (1.3x ‘24F P/B), while its currently trading at 1.2x ‘24F P/B, or below its +1SD historical mean.