Bank Negara Indonesia (BBNI IJ) (Buy) - May-26 results in-line

May-26 results in-line

BBNI has released its bank-only May-26 results, reporting headline profit of IDR1.8tn (+7% m-m; +11% y-y), bringing YTD May-26 earnings to IDR9.1tn (+7% y-y) — equivalent to ~43% of our FY26F projection and broadly in line with our current consolidated earnings forecast. We attribute these results to the following: (1) stable net interest margin (NIM) of 3.5% (-20bp y-y), largely driven by a stable asset yield of 6.1% (-30bp y-y), and improving funding cost of 2.9% (-10bp y-y); and (2) stable credit cost of 100bp (flat y-y), reflecting the bank’s healthy asset quality.

Net interest income arrived at IDR3.7tn (+1% m-m; +19% y-y), bringing YTD May-26 NII to IDR18.1tn (+15% y-y) – accounting for ~40% of our FY26 forecast. The y-y improvement was primarily driven by a healthier funding mix — its CASA ratio held firm at 68.3% (vs. 71.0% a year ago) and a lower cost of fund at 2.9% — partially offset by a slight NIM compression to 3.5% (-20bp y-y), reflecting competitive pricing pressure. Headline PPOP reached IDR2.9tn (-2% m-m; +15% y-y), bringing YTD May-26 PPOP to IDR14.6tn (+12% y-y) – accounting for ~41% of our FY26 forecast. Operating cost discipline was evident with CIR at 46.3% (vs. 45.8% in May 2025), a modest deterioration but within manageable range.

On the balance sheet, the bank booked loan and deposit growth of +25% and +33% y-y, respectively, which brought LDR to 88.4% (-610bp y-y). Loan growth was driven by government-related programs (Agrinas, unlisted) and non-bank SOEs. However, we expect loan growth to continue normalizing in subsequent months towards FY26 growth of 8-10% (according to management guidance). Deposits growth predominantly came from time deposit (TD) and current accounts (CA), which rose +49% and +38% y-y, respectively. These, in our opinion, mostly came from the government and Danantara placements.

Valuation and risks

We derive our TP of IDR5,500 using DuPont analysis with key parameters as follows: a risk-free rate of 6.5%, an equity risk premium of 7.8%, growth of 8.5%, beta of 1.04x and a CAR-adjusted ROAE of 15.6%. Our TP implies 1.2x FY26F P/B (vs current price valuation of 1.0x) and 9.9x FY26F P/E (vs current price valuation of 8.1x). Key risks are worsening macroeconomic trends, tighter liquidity competition, and/or higher credit costs and opex growth.

Fig. 2: Monthly results

BNI - Monthly IDRbn	May-25	Dec-25	Apr-26	May-26	M-M	Y-Y	YTD-26	YTD-25	Y-Y	% of FY26F	FY26F
Gross Interest Income	5,397	6,157	6,251	6,421	2.7%	19.0%	31,169	26,974	16%	39%	79,053
Gross Interest Expenses	2,295	2,349	2,600	2,730	5.0%	19.0%	13,045	11,238	16%	38%	34,258
NII	3,102	3,807	3,651	3,691	1.1%	19.0%	18,124	15,736	15%	40%	44,795
PPOP	2,514	4,576	2,964	2,896	-2.3%	15.2%	14,643	13,040	12%	41%	35,734
Provision exp	607	2,553	970	803	-17.2%	32.2%	3,724	2,853	31%	37%	10,142
Net profit	1,582	1,728	1,644	1,761	7.1%	11.3%	9,051	8,454	7%	43%	21,025
Comprehensive profit	1,765	2,455	1,844	1,397	-24.3%	-20.8%	6,136	10,046	-39%
YTD loan growth	-0.8%	15.9%	4.1%	6.6%
Y-Y loan growth	6.6%	15.9%	21.4%	24.5%
M-M loan growth	-0.3%	7.3%	1.8%	2.3%
YTD deposit growth	0.8%	28.9%	0.1%	4.1%
Y-Y deposit growth	1.3%	28.9%	26.1%	33.2%
M-M deposit growth	-1.6%	7.4%	-5.5%	4.0%
Asset yield (annualised)	6.4%	6.2%	5.9%	6.1%
COF (annualised)	3.0%	2.6%	2.7%	2.9%
NIM (annualised)	3.7%	3.8%	3.5%	3.5%			3.5%	3.7%
Credit cost (annualised)	1.0%	3.6%	1.3%	1.0%			1.0%	0.9%
Risk-adj NIM	2.7%	0.2%	2.2%	2.5%			2.8%	3.0%
LDR	94.5%	86.4%	89.9%	88.4%
LLR	5.0%	4.0%	4.0%	3.8%
CASA ratio	71.7%	70.4%	69.9%	68.3%
Monthly CIR	45.8%	46.2%	46.2%	46.3%
B/S ROAE (annualised)	12.4%	12.4%	12.4%	13.2%
B/S ROAA (annualised)	1.7%	1.6%	1.5%	1.6%
Loan-to-CASA	132.2%	114.3%	126.3%	126.5%
BBNI - B/S IDRbn	May-25	Dec-25	Apr-26	May-26	M-M	Y-Y	YTD-26	YTD-25
Total assets IDRbn	1,091,452	1,306,334	1,328,054	1,365,365	2.8%	25.1%	4.5%	0.6%
Gross Loans IDRbn	755,446	883,013	919,502	940,881	2.3%	24.5%	6.6%	-0.8%
LLR IDRbn	37,569	35,090	36,490	36,055	-1.2%	-4.0%	2.7%	-2.0%
Net loans IDRbn	717,877	847,923	883,012	904,826	2.5%	26.0%	6.7%	-0.7%
Deposits	799,022	1,021,895	1,023,075	1,063,920	4.0%	33.2%	4.1%	0.8%
- CA IDRbn	319,644	433,720	431,147	439,943	2.0%	37.6%	1.4%	6.0%
- SA IDRbn	253,419	285,716	283,812	286,867	1.1%	13.2%	0.4%	-1.3%
- TD IDRbn	225,959	302,459	308,116	337,109	9.4%	49.2%	11.5%	-3.6%
CASA IDRbn	573,063	719,436	714,959	726,810	1.7%	26.8%	1.0%	2.7%
Equities IDRbn	154,223	167,959	159,597	160,994	0.9%	4.4%	-4.1%	-2.5%

Source: Company data, Verdhana research

INVESTMENT RATINGS
A rating of ‘Buy’, indicates that the analyst expects the stock to outperform the Benchmark over the next 12 months. A rating of ‘Neutral’, indicates that the analyst expects the stock to perform in line with the Benchmark over the next 12 months. A rating of ‘Reduce’, indicates that the analyst expects the stock to underperform the Benchmark over the next 12 months. A rating of ‘Suspended’, indicates that the rating, target price, and estimates have been suspended temporarily to comply with applicable regulations and/or firm policies. Securities and/or companies that are labelled as ‘Not Rated’ or ‘No Rating’ are not in regular research coverage. Benchmark is Indonesia Composite Index (‘IDX Composite’). A ‘Target Price’, if discussed, indicates the analyst’s forecast for the share price with a 12-month time horizon, reflecting in part of the analyst’s estimates for the company’s earnings, and may be impeded by general market and macroeconomic trends, and by other risks related to the company or the market in general.

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Rating Table

Rating Remains	Buy
Target price Remains	IDR 5,500
Closing price 23 June 2026	IDR 3,430

Research Analysts

Erwin Wijaya (erwin.wijaya@verdhana.id)

Tags: BANKS, Bank Negara Indonesia, BBNI, BBNI JK, BBNI IJ, Erwin Wijaya

Bank Negara Indonesia (BBNI IJ) (Buy) - May-26 results in-line

May-26 results in-line

Fig. 1: BBNI YTD May-26 y-y performance

Fig. 2: Monthly results

Fig. 3: BBNI 12MMA CoC vs 12MMA WO %

Fig. 4: BBNI LLR vs 12MMA WO %

Rating Table

Research Analysts

yudi Administrator

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Bank Negara Indonesia (BBNI IJ) (Buy) - May-26 results in-line

Fig. 1: BBNI YTD May-26 y-y performance

Fig. 2: Monthly results

Fig. 3: BBNI 12MMA CoC vs 12MMA WO %

Fig. 4: BBNI LLR vs 12MMA WO %

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