BBNI - KTA 1H23 results

Bank Negara Indonesia (BBNI) booked net profit amounting IDR10,302 bn or grew 17.0% yoy, mainly driven by lower provisions charges by 29.5% yoy. CoF transmission has impacted to mounting interest expenses by 63.7% yoy, yet solid interest income growth by 18.7% yoy has overall helped net interest income remain grew significantly. Total loan 4.9% yoy and 2.6% qoq higher, with CASA improves by 11.1% yoy and bringing total TPF at IDR765,009 bn or 10.6% yoy. (Source : Company, KB Valbury Sekuritas). Comment : Bank Negara Indonesia (BBNI) net profit came in inline and above our forecast at 48%/51% vs average 5yr historical (excl. covid) of 48%. We also like BBNI’s key metrics achievement which continue to booked solid figures, whereas NPL improves by -0.7% yoy in 1H23 and -0.3% qoq in 2Q23. CoF and NIM remain well managed at 2.0% and 4.58% in 1H23 (NIM well managed closed to ’23 guidance at 4.6%), while CoC continue moves within its improvement track, declined by 0.7% yoy. We believe BBNI will continue to record solid result in the remaining quarter and likely to reached both ours and street earnings expectation.