Bank Negara Indonesia profit inches up 1% to $250m in Q3

Low interest expenses, which dropped 11%, boosted earnings.

Bank Negara Indonesia (BBNI) maintained the positive earnings trajectory after profit inched up 1% YoY and 6% QoQ to $250m (RP3.8t) in Q3 on the back of lower interest expenses, strong cash recoveries and lower provisions, according to UOB Kay Hian.

Also read: Indonesia's Big 4 banks hold firm against tumbling rupiah

After non performing loan fell to 2%, BBNI now boasts the lowest NPL ratio amongst SOE peers with loans at risk improving from 9.1% in 9M2017 to 8.7% of total loans in H1 2018.

Overall loan growth booked double-digit expansion at 15.6%, driven by
corporate loans (+19%) small business loans (+17%) and consumer loans (+12.4%). Forex loans’ composition increased further to 18%.

"We expect NIM to remain stable at this level of 5.2-5.4% for the rest of the year as the bank still has plenty of loans that can be re-priced upwards," analyst Alexander Margaronis said.

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