PT Bank Negara Indonesia (BBNI) Q2 2024 earnings summary

Executive summary

• Launched the 'wondr' mobile banking app, reaching over 1.2 million users and a 65% active usage rate within a month, driving digital engagement and transaction frequency.

• Achieved strong loan growth of 11.7% year-on-year in H1 2024, led by corporate and consumer segments, with total loans reaching IDR 727.0 trillion.

• Net profit for H1 2024 rose to IDR 10.69 trillion, up 3.8% year-on-year, supported by improved asset quality and lower provisioning charges.

• Operating environment improved in Q2 2024, with the strongest loan growth momentum since the pandemic and declining funding costs.

Financial highlights

• Net interest margin stabilized at 4.0% in Q2 2024, with net interest income up 3.1% QoQ and 7.4% YoY decline due to higher interest expenses.

• PPOP contracted 5% YoY but grew 1% QoQ in Q2; cost to income ratio increased to 43.7%.

• Cost of funds improved from 2.88% in May to 2.6% in July; CASA ratio improved to 70.7%.

• Credit cost remained low at 1% for H1 2024.

• Total assets as of June 2024 stood at IDR 1,072.5 trillion.

Outlook and guidance

• Full-year 2024 loan growth guidance raised to 10–12%, with NIM expected to remain at least 4% and cost of credit at ±1%.

• Management aims to revive SME growth in 2025 after ongoing risk management and transformation.

• The bank maintains a strong capital position with a CAR of 20.67% as of June 2024.