BNGA
Contact our analyst Achmadi
28.29% upside. Buy.
27th May, 2025
Price Rp 1,785
Target price Rp2290
Stronger Annual Growth Than Previous Quarter
In Q1 2025, BNGA’s net income attributable to the parent entity rose 7.37% YoY to IDR 1.80 trillion, higher than Q4 2024. This was supported by a 6.65% YoY increase in interest and sharia income, despite a 21 bps YoY drop in NIM to 3.99%. However, the NIM improved 11 bps compared to Q4 2024, showing positive quarterly momentum. Provision expenses decreased 35.52% YoY, reflecting improving asset quality. We forecast net income to grow by 7.62% YoY to IDR 7.35 trillion by year-end 2025, with NIM increasing to 4.03%.
Robust Loan Expansion Supported by ESG Initiatives
As of March 2025, BNGA’s consolidated loans grew 9.22% YoY, exceeding its 2025 internal target of 5%–7%.
• Corporate segment led growth at +13.96% YoY
• Sustainable financing rose 3.36% YoY, with MSME loans making up 44% of the portfolio
We forecast loan growth of 6.05% YoY by the end of 2025, in line with the bank’s target and supported by a balanced lending mix.
CASA Ratio Remains Strong Despite Slower Funding Growth
Third-party funds rose modestly by 2.50% YoY, but BNGA maintained a healthy CASA ratio of 67.41%, up 286 bps YoY.
• Time deposits declined 5.57% YoY
• Current accounts grew 11.95%, and savings accounts rose 2.25%
• The consumer segment remains the largest CASA contributor, at 45.2% of total CASA
We expect third-party funds to grow another 2.48% YoY in 2025, with the CASA ratio holding steady at 67.40%.
Continued Improvement in Asset Quality
BNGA’s gross NPL ratio improved by 25 bps YoY to 1.85% in Q1 2025, although slightly up 5 bps QoQ. The Special Mention Loan (SML) ratio improved to 4.3%, from 4.8% in March 2024.We project further improvement by year-end 2025, with gross NPL declining to 1.64%.
Buyback Program to Support Long-Term Incentive Plan
BNGA plans to conduct a share buyback within 12 months after its AGMS on April 12, 2025, allocating a maximum of IDR 450 million for up to 202,000 shares. The shares will be used for variable remuneration, with full transfer to be completed within three years.
Valuation: 28.29% Upside, Buy.
Based on a multi-stage Dividend Discount Model (DDM), we revise our target price to IDR 2,290, implying a 1.02x PBV and offering 28.29% upside potential. We maintain our Buy recommendation, supported by steady earnings growth, a strong CASA base, and improving asset quality.
In Q1 2025, BNGA’s net income attributable to the parent entity rose 7.37% YoY to IDR 1.80 trillion, higher than Q4 2024. This was supported by a 6.65% YoY increase in interest and sharia income, despite a 21 bps YoY drop in NIM to 3.99%. However, the NIM improved 11 bps compared to Q4 2024, showing positive quarterly momentum. Provision expenses decreased 35.52% YoY, reflecting improving asset quality. We forecast net income to grow by 7.62% YoY to IDR 7.35 trillion by year-end 2025, with NIM increasing to 4.03%.
Robust Loan Expansion Supported by ESG Initiatives
As of March 2025, BNGA’s consolidated loans grew 9.22% YoY, exceeding its 2025 internal target of 5%–7%.
• Corporate segment led growth at +13.96% YoY
• Sustainable financing rose 3.36% YoY, with MSME loans making up 44% of the portfolio
We forecast loan growth of 6.05% YoY by the end of 2025, in line with the bank’s target and supported by a balanced lending mix.
CASA Ratio Remains Strong Despite Slower Funding Growth
Third-party funds rose modestly by 2.50% YoY, but BNGA maintained a healthy CASA ratio of 67.41%, up 286 bps YoY.
• Time deposits declined 5.57% YoY
• Current accounts grew 11.95%, and savings accounts rose 2.25%
• The consumer segment remains the largest CASA contributor, at 45.2% of total CASA
We expect third-party funds to grow another 2.48% YoY in 2025, with the CASA ratio holding steady at 67.40%.
Continued Improvement in Asset Quality
BNGA’s gross NPL ratio improved by 25 bps YoY to 1.85% in Q1 2025, although slightly up 5 bps QoQ. The Special Mention Loan (SML) ratio improved to 4.3%, from 4.8% in March 2024.We project further improvement by year-end 2025, with gross NPL declining to 1.64%.
Buyback Program to Support Long-Term Incentive Plan
BNGA plans to conduct a share buyback within 12 months after its AGMS on April 12, 2025, allocating a maximum of IDR 450 million for up to 202,000 shares. The shares will be used for variable remuneration, with full transfer to be completed within three years.
Valuation: 28.29% Upside, Buy.
Based on a multi-stage Dividend Discount Model (DDM), we revise our target price to IDR 2,290, implying a 1.02x PBV and offering 28.29% upside potential. We maintain our Buy recommendation, supported by steady earnings growth, a strong CASA base, and improving asset quality.
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