BBNI - 1Q25, profit reaches IDR5.38 tn

BBNI - 1Q25, profit reaches IDR5.38 tn Bank Negara Indonesia (BBNI) successfully recorded a net profit of IDR5.38 tn in the first quarter of 2025. The achievement grew slightly by 1.1% yoy from the same period the previous year, which was IDR5.32 tn. The growth in profit was supported by a 10.1% yoy increase in credit, amounting to IDR765.47 tn in the first quarter of 2025. The growth in profit was supported by a 10.1% yoy increase in credit, amounting to IDR765.47 tn 1Q25. BNI's Finance & Strategy Director, Hussein Paolo Kartadjoemena, stated that amidst the dynamics and challenges of global uncertainty, the company successfully recorded solid financial performance accompanied by prudent business growth. BNI's Director of Finance & Strategy, Hussein Paolo Kartadjoemena, stated that amidst the dynamics and challenges of global uncertainty, the company successfully recorded solid financial performance accompanied by prudent business growth. (Source : Cnbc Indonesia) Comment : The flattish 1Q25 PATMI caused by lower Non-II (0.5% yoy), slightly higher opex (4.3% yoy) and provisions (2.8% yoy). Yet, PATMI of IDR5.38 tn (1.0% yoy), came inline with street and our ‘25F for BBNI at a run rate of 23.2%/23.4% compared to 23.8%. The bank reported a much better quarterly result driven by a sharp drop in provisions (36.5% qoq). 1Q25 net income stood at IDR5.38 tn (4.4% qoq), inline vs consensus expectation of IDR5.23 tn and beating our 1Q25F for BBNI of IDR5.21 tn. In all, BBNI's Q1-2025 results reflect a financial institution that is successfully growing its loan portfolio while maintaining healthy asset quality and benefiting from its digital transformation efforts, particularly in attracting low-cost funding. The strong performance in the corporate and consumer segments is a key driver. While the overall profit growth is modest, the underlying fundamentals appear sound, positioning BNI for continued progress throughout the year. The emphasis on digital platforms seems to be paying off in terms of funding efficiency. Maintain BUY BBNI with GGM-based TP of IDR6,300 (1.3x ’25F P/B), while currently trades at 0.9x ‘25F P/B or at its -1SD of 0.9x.