BBNI - 1H25 net profit hits IDR10.09 tn, down 5.6% yoy

BBNI - 1H25 net profit hits IDR10.09 tn, down 5.6% yoy Bank Negara Indonesia (BBNI) reported a net profit of IDR10.09 tn for the first half of 2025, a 5.58% decrease year-on-year from IDR 10.69 trillion. Despite the profit dip, net interest income for the state-owned bank rose 2.33% yoy to IDR19.51 tn. (Source : Cnbc Indonesia). Comment : BBNI 1H25 net income -5.6% yoy (-12.4% qoq) on flat top line, -2.9% yoy Non-II and -1.7% yoy PPoP, came in below ours and cons. at a run-rate of 43.9/43.6%. Loan growth at 7.1% yoy, driven by strong corporate private (+11.1% yoy) and much stronger commercial segment. The bank maintains '25F loan growth guidance of 8.0-10.0% yoy (unchanged). Total TPF 16.5% yoy (9.8% qoq), far above industry. CASA remain strong at 18.7% yoy, thanks to solid CA growth of 25.1% yoy. NIM 20bps lower to 3.8%, while CoC of 1.0% came in within BBNI’s '25F guidance of ±1% (KBVS: 1.0%). The bank saw improving NPL gross, with LDR provide more healthier loan channeling. We will revisit our model to accommodate below than expected 1H25 results, with a potential cut on '25F / '26F earnings estimate for the bank. More detail analysis will be delivered in BBNI 1H25 company update. Maintain BUY GGM-based TP of IDR 5,920 (1.2x '25F P/B), while currently trades at 0.9x ‘25F P/B or at its -1SD of 0.9x.