PT Bank Negara Indonesia (BBNI) Q1 2025 earnings summary

Executive summary

• New leadership team appointed at the recent AGM to accelerate transformation, bringing deep experience in wholesale, retail, institutional, and treasury banking, with a focus on execution and operational depth.

• Conservative growth strategy, prudent risk management, and digital transformation initiatives underpin business resilience and drive deposit growth.

• Indonesia's economy remains resilient due to its domestic orientation, with GDP growth projected at 5.0% for 2025 and limited direct exposure to U.S. trade risks.

• Net profit attributable to owners reached IDR 5,380 billion for Q1 2025, up from IDR 5,326 billion in Q1 2024, reflecting steady earnings growth.

• Total consolidated assets increased to IDR 1,147 trillion as of March 31, 2025, from IDR 1,130 trillion at December 31, 2024.

Financial highlights

• Net interest income grew 4.7% year-on-year to IDR 9,834 billion, with 10.1% loan growth and 10.2% expansion in savings deposits.

• Total assets grew 7.5% YoY to IDR 1,146.6T; loans up 10.1% YoY to IDR 765.5T; third-party funds rose 5.0% YoY to IDR 819.6T.

• Fee income up 2.6%, recovery income down 7.5% YoY; non-interest income remains under pressure.

• Pre-provision operating profit and net income both grew 1% YoY; net profit rose to IDR 5.38T.

• Net interest margin compressed to 3.9%–4.2% in 2024–2025 due to slower M2 growth and industry-wide funding pressures.

Outlook and guidance

• Full-year 2025 guidance maintained for now, with FY25 loan growth guidance set at 8.0–10.0% YoY and 1Q25 achieving 10.1% YoY.

• Net interest margin guidance 4.0–4.2%, with 1Q25 at 3.94%.

• Credit cost guidance ±1.0%, with 1Q25 at 0.9%.

• Cautious execution with additional liquidity buffers, selective lending, and frequent stress testing.

• Best-case projection for Indonesia's 2025 GDP growth remains at 5%.