PT Bank Negara Indonesia (Persero) Tbk (PTBRY) Q3 2024 Earnings Call Highlights: Strong Loan ...

GuruFocus News
3 min read

In This Article:

Release Date: October 25, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • PT Bank Negara Indonesia (Persero) Tbk (PTBRY) reported a loan growth of 9.5% year on year, indicating a positive trend in lending activities.

  • The company's net interest margin (NIM) improved to 4.4% in the third quarter, surpassing initial expectations.

  • CASA (current account savings account) grew by 5.5% year on year, with significant growth in savings accounts at 7.4%, reflecting strong deposit growth.

  • The bank's digital initiatives, including the launch of the new mobile banking application 'W by BNI', have shown promising results in customer acquisition and transaction frequency.

  • PT Bank Negara Indonesia (Persero) Tbk (PTBRY) has made significant strides in green financing, with IDR71 trillion in green loans, demonstrating its commitment to sustainability.

Negative Points

  • The SME segment experienced a contraction, particularly in the KUR portfolio, which decreased by 22% year on year.

  • Operating expenses grew by 7.4% year on year, driven by investments in digital platforms and cybersecurity, which could impact profitability.

  • The bank's time deposits contracted by 2.6% year on year, indicating a shift away from more expensive funding sources.

  • Despite improvements, the loan at risk ratio remains relatively high at 11.8%, suggesting ongoing asset quality challenges.

  • The write-off of IDR14.2 trillion in loans, a 41% increase year on year, highlights the bank's efforts to clean up its loan book but also indicates potential credit risk issues.

Q & A Highlights

Q: How does the new administration's economic policy impact BNI's business strategy? A: Royke Tumilaar, President Director, explained that the new administration under President Prabowo focuses on economic priorities such as food self-sufficiency, infrastructure, energy security, and MSME empowerment. These priorities align with BNI's business strategy, offering new business opportunities and improving consumer purchasing power, which is expected to boost loan demand.

Q: What are the key initiatives in BNI's funding structure transformation? A: Hussein Paolo Kartadjoemena, Digital and Integrated Transaction Banking Director, highlighted two initiatives: branch transformation, shifting branches from transaction-focused to sales-oriented, and the launch of a new mobile banking application, W by BNI, which has shown positive progress in customer acquisition and transaction frequency.

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