BBNI - Strengthening AQ and coverage

Bank Negara Indonesia (BBNI) aims to continue strengthened asset quality and npl coverage amid the economic recovery momentum. The efforts to improve credit quality through monitoring, handling and company policies have been running quite effectively so far according to the bank. In May 2023, the NPL ratio has recovered to 2.57% and is targeted to fall to 2.29% by the end of this year. The NPL Coverage ratio as of March 2023 was recorded at 286.8% and will improve again to 301% by the end of the year. (Source : Kontan). Comment : We believe BBNI’s asset quality and coverage ratio will continue to improves. Private corporate loan which by design has been improving taking the largest chunk of the total portfolio will also benefit BBNI and at the same time will underpin earnings growth.