BBNI : BBNI the Most API Services Compared by Peers
26 Feb 2024Net profit grew 14.2% yoy to 20.91 trillion in FY23. This increase is in line with an increase in pre-provision operating profit (PPOP) of 1.6% yoy to 34.97 trillion.
Total Loans reached IDR 695,085 billion in FY23, growing 7.6% yoy and 3.5% qoq. Corporate and Consumer Loans support this growth.
Loan at Risk (LAR) decreasing trend. LAR was recorded at 12.9% ytd, down 31 bps yoy from 16% ytd in FY22 and 23.3% ytd in FY21.
Maintain CASA ratio above 70% by encouraging transactional portfolio growth.
BNI has the most Application Programming Interface (API) Services compared to its peers.
New growth and future engine for BBNI. In 2Q23, BNI acquired 63.92% of Bank Mayora shares and rebranded it with Hibank. Hibank is the first digital bank to focus on MSMEs.
Using the Discounted Cash Flow method with a Required Return of 10.76% and Terminal Growth of 4.58%, we estimate the fair value of BBNI at 6,800 (20.61x expected P/E). Considering BBNI’s fair value, we give BBNI a buy rating with a potential upside of 15.74%.