BBNI - Loan to ESG amounting IDR176.4tn

PT Bank Negara Indonesia (Persero) Tbk (BBNI) recorded loan to ESG (environmental, sustainability, and vernance) amounting IDR176.4tn in 9M22, or 28.5% from total loan of IDR622.6tn. Of the total green portfolio loan, around IDR121.9tn was disbursed to empowerment of micro and SME, IDR 21.8tn for Sustainable water and wastewater management, while the remaining amount is to financing Environmentally sustainable management of living natural resources and land use, Pollution Prevention, and Renewable Energy (Source: Kontan). Comment: We like BNI continuing support to address climate change, especially as the ESG initiatives now has turned more intense globally. We expect its green portfolio portion will continue to increase ing forward. Our loan growth forecast for BBNI in 2023F at 9.0%yoy was at upper range of management guidance range of 7.0%-9.0%. Maintain BUY for BBNI with target price of Rp10,600.