BBNI - Estimates that deposits above IDR 5 billion could potentially grow aggressively

BBNI - Estimates that deposits above IDR 5 billion could potentially grow aggressively Bank Negara Indonesia (BBNI) projects that customer deposits with a nominal value of more than IDR5 bn will continue to grow most aggressively this year. This growth is considered to be in the form of third-party funds (DPK) or investments. This condition is in line with data from the Deposit Insurance Corporation (LPS), which recorded that deposits with a nominal value of more than IDR5 bn increased 9.1% annually (yoy) to a total nominal value of IDR4,672 tn. This achievement is the highest growth in all nominal tiers. (Source: Kontan) Comment : We expect BBNI’s solid deposit mix to continue and thus will overall support the potential impact of NIM contraction. We also expect higher retail-based than corporate investment in TD third-party funds, as we think the retail segment will usually be less sensitive to the impact of benchmark rate hikes amid the continuing stiffer rate competition. Maintain BUY BBNI, GGM TP of IDR6,530 (1.4x ‘24F P/B).