BBNI - Will start increasing credit interest in May and June 2024

BBNI - Will start increasing credit interest in May and June 2024 Banks are increasingly certain to increase credit interest rates. This is a response to the increase in Bank Indonesia's (BI) benchmark interest rate last April by 25 basis points (bps). One of the banks that said it had started raising interest rates was Bank Negara Indonesia (BBNI). BNI Finance Director Novita W. Anggraini said she will start increasing credit interest this May and June. He said that the adjustment to the increase in credit interest was indeed carried out on the basis of the increase in the reference interest rate made by BI. However, he emphasized that the increase in credit interest is not always determined by the increase in the benchmark interest. (Source: Kontan) Comment : We like BBNI's plan to start repricing its loan yield. We expect to see a positive impact on its topline in the period of 3Q24. We also believe the higher yield likely would not impact a hiccup in NPL. Maintain BUY with a GGM TP of IDR6,530 (1.4x ‘24F P/B).