Bank Negara Indonesia to lodge 7% net profit growth in 2024

UOBKH slashed the bank’s profit and NIM estimates, however.

Bank Negara Indonesia (BBNI)’s net interest margins (NIM) will be weighed down by competition from tighter liquidity and an expected lack of central bank rate cuts in the second half of 2024.

In a report, UOB Kay Hian (UOBKH) cut the Indonesian bank's net profit growth estimates for the next two years as it lowered its NIM assumptions.

Despite its lower estimates, BBNI is still expected to log a net profit growth of around 7% in 2024 and 8.8% in 2025.

UOBKH noted that the bank’s loan growth accelerated 12.6% year-on-year (YoY) in May, compared to a single digit loan growth in 2023.

BBNI’s SME-focused digital bank Hibank also posted a strong loan growth of 76% in April.

Net interest margin improved by 14 basis points (bp) in the first five months of 2024, compared to the Q1 period, according to UOBKH.

However, cost of fund (CoF) remained high at 3.1% in the first 5 months of 2024.

“We expect CoF to stay high due to tight competition from gathering third-party funds from high government bonds issuance, Rupiah Securities of Bank Indonesia (SBRI) and Foreign Exchange Securities of Bank Indonesia (SVBI),” Pakpahan said.

Pakpahan does see an “encouraging trend” on money supply (M2) growth, which accelerated to 7.6% YoY in May 2024, from a 3-4% growth in Q4 2023.

Also Read

Cambodia enables QR payments from foreign e-wallets through Alipay+

Hong Kong to rename ‘virtual banks’ to ‘digital banks’

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit