BBNI - Records IDR21.5 tn profit throughout 2024

BBNI - Records IDR21.5 tn profit throughout 2024 Bank Negara Indonesia (BBNI) successfully closed the year 2024 with strong fundamentals. BNI's net profit rose to IDR21.5 tn, higher than the previous year's earnings of IDR20.9 tn. This growth was driven by digital transformation that successfully increased savings by 11% yoy, from IDR232 tn in 2023 to IDR 258tn in 2024.BNI's President Director, Royke Tumilaar, stated that BNI's ability to maintain savings growth amid liquidity challenges reflects the company's strong competitiveness in facing economic challenges, both domestic and global. "The achievements we reached in 2024 have become an important momentum to face the future." We are optimistic that by continuing to innovate and focusing on customer needs, BNI will achieve sustainable growth," said Royke in the 2024 Financial Performance Presentation in Jakarta. (Source : Company) Comment : Navigating a period of diminished uncertainty in late 2024, BBNI demonstrated a commendable ability to sustain positive earnings growth, primarily underpinned by a robust and disciplined credit cost management strategy. While the realized 2024 PATMI growth of 2.7% yoy to IDR21.46 tn marginally trailed both our and consensus projections, reflecting a run rate of 97.2% and 97.1%, respectively, the bank's performance remained commendable. For the current fiscal year, BBNI has outlined a strategic roadmap encompassing loan growth within a projected band of 8-10% and an anticipated Net Interest Margin (NIM) within the 4.0-4.2% range. Worth to note that our optimistic scenario for BBNI’s loan growth is around 40bps higher than BBNI’s upper loan range forecast, while our ‘25F NIM for BBNI of 4.1% is within BBNI guidance. Furthermore, the bank has articulated its aspiration to maintain a stable Cost of Credit (CoC) at 1.0% or equal with our ‘25F CoC for BBNI. Maintain BUY with a higher TP of IDR6,300 (1.3x ‘25F P/B).