BBNI: Moderation in Term Deposit Rate Potentially Becomes BBNI’s Catalyst in FY25F

23 Jan 2025 Valdy

BBNI’s Interest Income grew 8.3% YoY to IDR66.6.7 trillion in FY24 (99% of our 2024F estimate).

BBNI’s net interest income grew 6.5% QoQ, down 1.9% YoY in FY24. The higher increase in interest expense compared to interest income pressured BBNI’s interest margin (interest income +8.3% YoY vs. interest expense +29.2% YoY in FY24).

BBNI’s credit quality remains healthy amid macroeconomic fluctuations. BBNI’s gross Non-Performing Loan (NPL) fell 10 bps YoY to 2.0% in FY24, with credit growing 11.6% YoY vs. 7.6% YoY in FY23.

Moderation of Term Deposits (TD) rate and growth of the Current Account Saving Account (CASA) can potentially optimize BBNI’s performance in FY25F.

With BBNI’s FY24 performance slightly below our expectations, we are lowering our FY25F projection. However, we maintain our BUY rating for BBNI with a lower estimated fair value of 6,150 (18.64x expected P/E) and a potential upside of 28.34%.

By PHINTRACO SEKURITAS | Research
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