Bank Negara Indonesia (BBNI) - Low Main Business Income on 3M11

Bank Negara Indonesia (BBNI) – Downgrade to Hold
Price: Rp4,100 -  Target Price: Rp4,500

Low main business income on 3M11

  • BBNI booked flat growth on main business income on 3M11
  • Bottom line increased by 22.1% to Rp1.25 tr but it was mainly due to recovery loan and efficiency
  • Loan grew by 16.6% but earning yield declined to 10.4% from 12.1%
  • Recovery loan on 3M11 as much as Rp338 Bn or 37% from write off
  • We change our projections but we maintain our target price at Rp4,500,
  • However, we Downgrade recommendation to Hold