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BBNI
Contact our analyst Lingga

18% upside. Hold
20th August, 2021
Price Rp5,300
Target price Rp6,230

Strong profit and NIM
In 1H21. BBNI posted a net profit of Rp 5 trillion, up by 12.8% YoY. PPOP rose significantly by 24.4% YoY while there was a fairly high provision expense which increased 36.2% YoY in anticipation of high NPLs. Interest income decreased slightly in line with lower benchmark interest rates and deferred income from restructured loans. NIM remained solid at 4.9% as the Cost Of Funds decreased by 1.2% YoY due to a cut in Time Deposit rates.

Lower target loan growth
Loans grew by 4.5% YoY driven by Corporate Private up 7.9%YoY, Small (including KUR) up 20.6% YoY, and Payroll Loans up by 19.6% YoY. The laggards were Corporate SOEs which declined -8.1% YoY and medium business loans which were down by -3.3% YoY. BNI has lowered its target growth rate to 5-7% from 6-9% YoY at the end of 2021. Third party funds growth was the same as loan growth at 4.5% YoY driven by CASA with current accounts increasing by 11.7% YoY and savings accounts by 11.4% YoY. The loan to Deposit Ratio was unchanged at 87.8%.

Asset quality has improved
Non-Performing loans improved on a quarterly basis to 3.9% from 4.1% in 1Q21 and 4.3% in 4Q20. But were still higher than a year ago, 2Q20, which was 3%. Restructured loans decreased to 14% of total loans (from 15% in 1Q21), with approximately 7% in the high-risk category. LAR decreased to 25.8%. LAR coverage ratio increased to 32.9% from 30.7% in 1Q21.

Valuation: 18% Upside, Hold.
Based on our DDM Valuation, we have a target price within one year of IDR 6,230 or trading at 1.0x PBV which gives 18% potential upside, Hold..
Download full report here
Previously
​BBNI May2021
​BBNI Feb2021
​BBNI Nov2020
​BBNI Aug2020
​BBNI Jan2020
​BBNI Oct2019
PT. Binaartha Sekuritas

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