BNI braces for NIM compression in 2026 on tighter H1 liquidity

NIM is estimated to fall between 3.5% to 3.8%, lower than Q4 2025’s 3.9%.

Bank Negara Indonesia (BNI) expects a lower net interest margin (NIM) in 2026 as it braces for lower loan yields and seasonally tighter liquidity conditions for the first half of the year.

The Indonesian bank estimates its full-year NIM to fall between 3.5% to 3.8%, based on a report by UOB Kay Hian (UOBKH).

The lower NIM expectation reflects likely lower loan yields, tighter liquidity in H1 and uncertainty around government liquidity placements.

BNI’s NIM expanded 30 basis points quarter-on-quarter (QoQ) to 3.9% in Q4 2025.

The government liquidity injection in September 2025 led to an improving funding environment, allowing BNI to reprice its special deposit rate, UOBKH said.

BNI is expected to have more clarity on government liquidity placements by end-February or early-March.

Loan growth is targeted at 8% to 10%, with BNI citing momentum in the micro, small, and medium enterprises (MSME) segment.