BBNI - Soft 1Q24 earnings growth, inline

BBNI - Soft 1Q24 earnings growth, inline Bank Negara Indonesia (BBNI) 1Q24 earnings grew soft at 2.0% yoy, mainly driven by a sharp drop in provision of 18.9% yoy. Net interest income growth came in red, as interest expenses soared by 47.5% yoy. Loan grew strong (9.6% yoy), or within BBNI’s ‘24F loan growth comfortable level of 9%–11% yoy. Corporate segment loan as the backbone driver saw solid growth of 16.3% yoy, driven by healthy and solid growth from corporate private loan demand (14% yoy). (Source : Company Comment : In all PATMI 1Q24 growth is considerably in line as it arrives within our consensus forecast at a run rate of 22.2%/22.2% vs. the 5YR 1Q average of 23.6%. Manageable cost of fund will become the main key, while focus on high yield loan should overall help the bank to record solid top line. We also expect provision to remain low.