Up 2 Percent, BNI Pockets IDR 5.3 Trillion Net Profit

JAKARTA - PT Bank Negara Indonesia (Persero) Tbk (BBNI) recorded a net profit of IDR 5.3 trillion in the first quarter of 2024. This number has increased by 2 percent year on year (yoy). BBNI's increase in net profit in the first quarter of 2024 was driven by a provisional load that fell to IDR 1.7 trillion or decreased by 19 percent yoy.

Meanwhile, Net Interest Income (NII) was recorded to have decreased to Rp9.4 trillion or decreased by 9.77 percent yoy.

Quoted from Stockbit Sekuritas, this decrease was due to swelling of interest expense by 47.5 percent yoy. Meanwhile, Pre-Provision Operating Profit (PPOP) decreased to IDR 8.2 trillion or decreased by 5.4 percent yoy

In terms of operations, credit is channeled to grow 9.6 percent yoy, in line with guidance management at the level of 9 to 11 percent and industrial targets from BI and OJK in the range of 9 to 12 percent.

Meanwhile, third-party funds (DPK) increased 4.9 percent yoy driven by an increase in CASA by 6 percent yoy and deposits 2.4 percent yoy. This makes the Loan-to-Deposit Ratio (LDR) rise to 89 percent level.

On the other hand, Net Interest Margin (NIM) dropped to a level of 4.0 percent at well below the guidance management which is eyeing 4.5 percent. Meanwhile, interest expense swelled, mainly driven by an increase in cost of funds to 2.8 percent.

In terms of asset quality, Gross's Non 'Performing Loan' (NPL) was recorded to have fallen to 2 percent compared to the same quarter in the previous period which was recorded at 2.8 percent.

Investment Analyst Lead Stockbit Rahmanto Tyas Raharja said BBNI's net profit in the second quarter of 2024 was below expectations because it only reached 22.5 percent of the estimated FY24F consensus at the level of IDR 23.6 trillion.

"We consider BBNI's operational performance as a neutral result. This is because even though some operational metrics achieve positive results, BBNI's profitability remains compressed," said Rahmanto, Monday, April 29.

Rahmanto said that the positive side of BBNI's performance was aimed at credit growth which was in line with the guidance and credit cost of 1.0 percent in line and better than the governance of management at less than 1.4 percent.

"The compressed NIM, especially due to the swelling of costs of funds. has become a negative side of BBNI's performance in the first quarter of 2024," concluded Rahmanto.