Bank Negara Indonesia (BBNI) – Maintain BUY
Price: Rp3,975 – Target Price: Rp4,500
Significant Allowance Reversal
- 9M10 BBNI result, in line with our projection and consensus.
- Loan only grew by 3.5% as CAR position do not support further growth.
- Net income increased significantly, supported by reversal on allowances.
- With rights issue, we estimate BBNI can grow as much 15-20% for next year.
- Our new price target is Rp4,500. Maintain Buy.