PT Bank Negara Indonesia Tbk (BBNI, Rp4.350, BUY, TP Rp5.300) exposing its financial performance throughout the semester I/2013 yesterday. Net profit recorded Rp 4, 27 trillion (+30% YoY).
BBNI net interest income increased by 23%, supported by lending up 24% and an increase in third-party funding (TPF) 9% YoY. Corporate loans increased by 52% YoY and accounts for 42.5% of total loans, while consumer loans grew 29% and contributed 20.6% of total loans.
Small business loans up 12% and -16% YoY for medium businesses. Negative growth in the medium business segment due to the reclassification of corporate loans in the quarter I/2013.
In terms of assets, government bonds (SUN) worth Rp 40.3 trillion or become 11.6% of assets BBNI put in available for sale (AFS) category that affected the bond market correction in the secondary market.
Asset quality rises, while non-performing loans (NPL) fell to 2.6% in June from 2.8% in March 2013 and 3.4% in June 2012 supported by decreasing in NPL from all segments, except for small business loans increase.
Decreasing in the number of non-performing loans encourage BBNI to improve their credit more aggressively. BBNI also able to improve the performance of loans that had written off due to poor quality, which is valued at an average of Rp 2 trillion per year and reached USD 1.2 trillion in the first semester I/2013 than Rp 1 trillion in semester I/2012.
Write-off of bad quality loans reached Rp 1,6 trillion in semester I/2013 compared with Rp 1,5 trillion in the same period last year.
BBNI still optimistic to record loan growth of 23% -25% in 2013, which will be driven consumer goods and retail loans, while DPK predictable rise 16% -18%, the NPL rate of 2.5% -2.8%.
BBNI share value is in the range of Rp 4,325, traded on the valuation of price to book value (PBV) ratio 1.6 x, price per earnings ratio (PE ratio) 10x for 2013 and 1.4x PBV and 8x PE ratio for 2014.
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