The path to double digit growth
Key Takeaways :
• BBNI net profit jumped +68.0% YoY to IDR18.3tn in FY22 beating consensus estimate of IDR17.7tn thanks to : 1) higher loan growth and yield; 2) low cost funding strategy as well as 3) asset quality improvement.
• 2023 guidance : loan growth 7-9%; NIM ~4.7% and CoC ~1.5%, which we think achievable given bank's adequate liquidity (LDR 84%), loan yield repricing and strengthening CASA franchise as well as leveraging their diamond client to lower NPL.
• Worth to note that, BBNI will transform Bank Mayora to be future-ready digital bank and the focus for the
next 12 months will be : 1) rebranding strategy; 2) establishing a clustered based SME financing and 3) mobile app launching.
• We maintain our call BUY on BBNI with TP of IDR11,400/share based on DDM method with 30% DPR and +15.9%/+13.4% FY23F/FY24F EPS growth implying 1.4x/1.3x FY23F/FY24F P/B.
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