BBNI - Profit rises 8.28% yoy to IDR3.29 tn

BBNI - Profit rises 8.28% yoy to IDR3.29 tn Bank Negara Indonesia (BBNI) has closed February 2025 with a profit of IDR3.29 tn. The achievement experienced an increase of around 8.28% yoy. Looking at the monthly financial report (24/3), the profit growth was supported by net interest income which rose to IDR6.09 tn during that period. In the same period the previous year, BNI's net interest income was IDR5.98 tn. On the other hand, the provision costs that became BNI's burden also experienced a decrease of around 19.65% yoy. Whereas, in February 2025, BNI's provisioning costs were recorded at IDR969 bn. From the perspective of its intermediary function, the total credit extended by the bank with the 46 logo amounts to IDR741.9 tn as of February 2025. This value increased from the position in February 2024, which was IDR673.52 tn. Meanwhile, for Third Party Funds (DPK), BNI recorded an amount of IDR774 tn. The figure increased from the same period last year, which was IDR766 tn. (Source : Kontan) Comment : BBNI's overall performance is positive, with solid profit growth driven by strong net interest income and reduced provisioning costs. The credit growth demonstrates that BBNI is actively involved in lending, which is a crucial function for economic development. The decline in commision based revenue should be investigated further by BBNI to understand the causes, and generate strategies to increase that revenue stream. The increase in DPK and asset growth shows that the bank is financially stable and expanding. The reduced provisioning costs are a very positive sign, and show better management of non-performing loans.