BBNI - Will hold an AGM, March 26, 2025

BBNI - Will hold an AGM, March 26, 2025 Bank Negara Indonesia (BBNI) announced that it will hold its annual general meeting of shareholders (RUPST) on March 26, 2025. The BNI annual general meeting will discuss the approval of the use of net profit for the 2024 financial year. Previously, BNI's President Director Royke Tumilaar revealed that BNI plans to increase the dividend ratio to 60%. As a reminder, for two consecutive years, BNI provided a dividend payout ratio of 50%. 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 fiscal year. In 2024, BBNI recorded a profit of IDR21.46 tn. The profit increased by 2.64% yoy. If we assume a dividend ratio of around 60%, the estimated dividend for BNI Bank is around IDR345.28 per share. BBNI also has the potential to distribute dividends amounting to IDR12.87 tn from the 2024 profits. Another agenda item is that BNI and the shareholders will discuss changes to the company's management structure. In the BNI Annual General Meeting, BNI will also seek shareholder approval to carry out a share buyback. As previously reported, BNI has increased the buyback value to a maximum of IDR1.5 tn or up to 10% of the total paid-up capital. (Source : Kontan) Comment : The planned increase in the dividend payout ratio is a positive signal to investors, indicating confidence in the bank's financial performance and future prospects. This can attract more investors and increase stock value. The share buyback program could enhance shareholder value. It also shows the company believes that the stock is undervalued. We anticipate this corporate action to increase market confidence post downturn stock value due to prolonged uncertainties. In all, the BNI annual meeting appears to be a significant event for shareholders. Maintain BUY BBNI, GGM-based TP of IDR6,300 (1.3x '25F P/B).