Carrying Out Shares Stock Split, BNI Targets Young Investors

Illustration (Photo: Doc. Antara)

JAKARTA – PT Bank Negara Indonesia Tbk (BNI) carried out corporate action in the form of a stock split with a ratio of 1:2.

This strategic step emerged after the company received approval at the Extraordinary General Meeting of Shareholders (EGMS-LB).

BNI President Director (Dirut) Royke Tumilaar stated that the implementation of this stock split was a commitment to continue participating in encouraging the development of the capital market in the country.

According to him, the stock split strategy is expected to increase the liquidity of BNI shares and attract the interest of retail investors, especially young investors.

"Currently, we see that BBNI shares are still a viable investment option, because in terms of valuation, BBNI's price to book value (PBV) ratio is still in the range of 1.2 times, which is very attractive when compared to other banking companies with PBV- it has exceeded 2 times," he said in a written statement, Monday, September 25.

Royke explained that this tactic allows BNI shares to be more active, and the frequency of transactions on the stock market will increase.

Apart from that, investors will also benefit because BNI's share price will become more affordable, and the portion of share ownership will become larger.

"Moreover, more and more young generation and millennial investors are investing in IDX 30 and LQ 45 shares," he said.

Royke added that BNI's PBV is currently still below the average of the last 10 years, which reached 1.4 times, so it can be said that BNI shares are currently still valued lower than they should be. Meanwhile, the transformation program oriented towards strengthening fundamentals continues to run and has a positive impact.

"This can be seen from strengthening capital, shifting the portfolio to blue chip customers, healthy asset quality as seen from the decline in the NPL ratio and credit costs, as well as healthy growth in profitability. "This progress will ensure that the company can continue to record a sustainable increase in ROE (Return on Equity) in the future," he stressed.

For information, in June 2023 BNI recorded an ROE of 15.3 percent. The company has a medium-long term target to achieve an ROE of 18 percent by 2025, so PBV has the potential to continue to increase in the future.

The consensus of analysts in the capital market sets the fair value of BNI shares at IDR 11,393 per share, equivalent to a market cap of IDR 212.5 trillion or a 20 percent growth from BNI's current market cap of IDR 176.7 trillion.

"We hope that this step can be appreciated by investors. BNI remains committed to continuing to record improved and sustainable financial performance in the long term," concluded Royke.