BBNI booked a net profit of IDR 7.7 trillion throughout 9M21, or 79.4% of our estimates of IDR 9.7 trillion. The performance was supported by a decline in interest expense and NPL. LAR ratio fell as domestic economy recovers, resulting in BBNI was able to control NPL ratio for the rest of the year. NHKSI Research maintains BUY recommendation by raising our TP to IDR 9,000/share.
NHKSI Research maintains its estimate, by raising TP to IDR 8,375 for the next 12 months.
UST10Y Yield fell after US producer inflation data was recorded at 0.5% MoM and 8.6% YoY. This figure is lower than the market consensus of 0.6% MoM and 8.7% YoY.
Domestic economic recovery is also seen from improved public consumption. This is reflected in the Consumer Price Index for the core components in September which experienced an inflation.
Some domestic indicators are improving, such as the Retail Sales Index which is projected to grow 4.3% MoM, and Manufacturing PMI which increased to 43.7 in August.
The relaxation of Public Activity Restriction (PPKM) boosted the manufacturing activity in some areas, which then increased Indonesia’s exports. Statistics Indonesia (BPS) booked the trade balance surplus for August 2021 at USD 4.74 billion, up 82% compared to the previous month’s USD 2.59 billion.
Bank Indonesia (BI) recorded the foreign exchange (forex) reserves for the August period at USD 144.8 billion, an increase of 5.5% from July at USD 137.3 billion.
IHS Markit noted that Indonesia’s Manufacturing Purchasing Managers’ Index (PMI) in August was at 43.7, or higher than 40.1 in the previous month.
Bank Indonesia (BI) recorded that Indonesia’s 2Q21 Balance of Payments (BOP) experienced a deficit of USD 400 million. This figure is much lower than the previous quarter which recorded a surplus of more than USD 4 billion.
