BBNI - 1H24 net income grew 3.8% yoy, inline

BBNI - 1H24 net income grew 3.8% yoy, inline Net interest income recorded lower to IDR19.07 tn and yet improves 3.1% qoq, while PPOP -5.0% yoy and flattish on a quarterly basis of 1.0% qoq. Net income growth at 3.8% yoy (0.7% qoq). Loan growth is 11.7% yoy and 4.6% qoq. Key risk metrics surpass BBNI ‘24F guidance, while NIM, albeit flat, is closer to BBNI NIM expectation this year of 4.0%. LAR also came in at a much better figure to 12.3%, or sharply improves from 16.1% in the same period of last year. NPL recorded around 50 bps better to 2.0% vs. 2.5% in 1H23. (Source : Company) Comment : The 1H24 PATMI growth was mainly driven by a provision sharp drop of 22.2% yoy. In all, 1H24 earnings arrive at a run-rate of 45% of ours and ‘24F consensus expectation for BBNI net profit. Worth to note that on a quarterly basis, the flat growth of 0.7% was inline with our 1H24F PATMI for BBNI at IDR10.76 tn vs. 1H24A of IDR10.69 tn. Robust loan growth remains intact (11.7% yoy, 4.6% qoq), surpassing management's upper ‘24F loan growth expectation of 9.0-11.0% yoy and our forecast of 10.4% yoy. Credit cost stood at 1.0% was 40 basis points better than ‘24F BBNI’s expectation of <1.4%. NPL and LAR remain showed significant improvement figure to 2.0% and 12.3% from 2.5% and 16.1%, respectively. NIM is well managed; and stood at 4.0%, or +3 bps vs. the previous quarter. Since our latest report (24 June 2024) vs yesterday's closing the stock has recorded capital gain of 16.2%. We maintain our BUY call for BBNI with GGM TP of IDR6,530. (pegged at 1.4x ‘24F P/B), while currently trading at 1.2x ‘24F P/B, or at its average historical mean and slightly below +1SD of 1.4x ‘24F P/B).