Bank Negara Indonesia (BBNI) - Significant Allowance Reversal

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.