BBNI - Mortage channeled rose 25%

Bank Negara Indonesia (BBNI) continue to note solid performance in the beginning of 2023. Mortgage channeled booked 25% yoy. The bank aiming to organize and support various event to to capture the continuing mortgage demand. BBNI will offer special mortgage rate with installment period of up to 20 years. Despite grew massively in the beginning of 2023, the bank is eyeing for conservative target, whereas throughout 2023, mortgage growth is targeted to grow at 9% yoy. (Source : Investor Daily). Comment: We believe positive property outlook this year will underpin BBNI loan growth overall. Loan pricing should take place and will benefit NII, whereas increasing CoF is likely to accelerate slower vs loan rate and thus will help NIM to continue arrive within similar range in 2022. Our ‘23F NIM for BBNI is at 4.7%, largely aligned with BBNI’s ‘23F upper-range target. Maintain BUY, with target price of IDR10,600 (1.4x 2022F P/B).