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.
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.
Do you know more about this story? Contact us anonymously through this link.