BBNI - 9M25 earnings: inline

KBVS Update
Monday, 27 Oct 2025

BBNI: 9M25 earnings: inline
(Maintain BUY; TP: IDR5,110)

* 9M25 earnings came in line with our and cons. expectation (run-rate: 73.5%/72.9%). The bank delivered healthy 6.5% qoq earnings growth in 3Q25 (IDR 5.02tn), reversing the -12.4% qoq drop in 2Q25.

* Total loans grew 10.5% yoy, outperforming the banking sector and exceeding management's high-end guidance (corporate: +12.4% yoy, medium segment: +14.3% yoy). Total TPF grew strong, with 13.3% yoy growth in CASA.

* Credit Cost remains perfectly aligned at 1.0% (KBVS ‘25F: 1.0%) with the bank's aspiration. Gross NPL is also well-managed at 2.0%. The impact of benchmark rate transmission on funding costs is expected to materialize in 4Q25, which should pointedly lift NIM for 4Q25 and ‘26F.

* The 3Q25 turnaround earnings momentum is expected to sustain in 4Q25, resulting in an inline ‘25F earnings result. A stronger quarterly RoE in 3Q25 and a higher cumulative RoE suggest an unchanged and fair stock intrinsic value.

* Maintain BUY, GGM-based TP of IDR 5,110 (1.1x '25F P/B), while currently at 0.9x ‘25F P/B or at its -1SD.

Regards,
Akhmad Nurcahyadi - KBVS Research