PT Bank Negara Indonesia (BBNI) Q4 2024 earnings summary

Executive summary

• Quarterly PPOP reached a record IDR 9.5 trillion, up 9.3% year-on-year, driven by business growth, operational efficiency, and digital initiatives, with savings up 11% and loans up 12% year-on-year, outperforming industry averages.

• Asset quality improved, with NPL ratio at 1.97%-2.0% and loan at-risk ratio down to 10.3%.

• Transformation since 2020 led to a stronger capital base (21%-21.67% CAR), improved risk-adjusted returns, and a shift toward corporate and consumer segments.

• Digital transformation accelerated, with the launch of the wondr app, 5.3 million registered users, and significant increases in digital transaction volumes.

• Net profit attributable to owners for 2024 was IDR 21.46 trillion, a 2.7% increase year-on-year.

Financial highlights

• Total assets grew to IDR 1,129.8 trillion, with net profit up 2.7% to IDR 21.5 trillion.

• Loan growth reached 11.6% year-on-year to IDR 775.87 trillion, led by corporate and consumer segments.

• Net interest income was IDR 40.48 trillion, slightly down from the previous year, while non-interest income rose 10.2% year-on-year.

• Operating expenses grew 6.9% year-on-year, mainly due to digital investments and variable remuneration.

• NIM compressed to 4.2%-4.24% from 4.6%-4.58% year-on-year.

Outlook and guidance

• 2025 loan growth targeted at 8%-10%, with NIM expected between 4%-4.2% and credit cost around 1%.

• CAR remains robust at 21.67%, with CET1 buffer at 11.87% to support future growth.

• Focus on strengthening CASA franchise, digital innovation, and maintaining conservative risk management amid macroeconomic headwinds.

• Conservative NIM guidance due to cost of funds and volatile exchange rates.