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 and operational efficiency.

• Consolidated total assets reached IDR 1,129.8 trillion as of December 31, 2024, up from IDR 1,086.7 trillion year-over-year.

• Net profit attributable to owners for 2024 was IDR 21.46 trillion, a 2.7% increase from 2023.

• Savings grew 11% year-on-year, outpacing industry growth of 6.6%, supported by digital initiatives and new customer acquisition.

• Asset quality improved, with NPL ratio just below 2% and loan at-risk ratio down to 10.3%.

Financial highlights

• Net income increased by 2.7% year-on-year to IDR 21.5 trillion.

• Loan growth reached 11.6% year-on-year to IDR 775.9 trillion, led by corporate and consumer segments.

• Fee and non-interest income rose 10.2% year-on-year, driven by marketable securities, FX business, and digital transactions.

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

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

Outlook and guidance

• 2025 loan book growth targeted at 8%-10%, with third-party fund growth at 10%.

• Credit cost targeted at 1%, with NIM expected between 4%-4.2%.

• CAR remains robust at 21.67%, well above the minimum regulatory requirement.

• Focus on digital innovation, strengthening CASA franchise, and conservative risk management.

• Macroeconomic headwinds expected from global uncertainty, strong USD, and limited room for BI rate cuts.