Jakarta. State-owned bank BNI has booked positive growth, and this is expected to do wonders for the company's share price.

BNI, also known by its ticker symbol BBNI, reported that its net profit had grown 15.1 percent year-on-year and reached Rp 15.8 trillion as of Sep. 2023. This is in line with the market consensus. Credit distribution grew 7.8 percent year-on-year, and reached Rp 671.4 trillion. The bank attributed this growth to the low-risk segments, namely the state-owned and private blue chip corporates, consumer credits, and subsidiaries. 

The positive performance gave a confidence boost to the bank’s shareholders. BNI recorded an increase in the average daily trading volume or daily turnover of BBNI which reached Rp 271 billion in Oct. 2023. This is about 18 percent higher than the average daily turnover during the same period last year, which stood at Rp 230 billion. BBNI’s closing price on Oct. 27 stood at Rp 4,850 per share. This brought BBNI’s market cap to Rp 181 trillion.

Silvano Rumantir, the director for wholesale and international banking at BNI, attributed the strengthening of the bank’s share price to the positive sentiment towards the 1:2 stock split on Oct. 6. According to Silvano, the stock split was able to expand the investor base.

“We would like to thank our shareholders and the public for trusting the bank’s robust fundamentals and transformation process, which increasingly gives a positive outlook for BNI’s performance,” Silvano was quoted as saying in a recent press statement.

In consensus, analysts are targeting the fair value of BNI shares at around Rp 5,900 per share. It is expected that BNI’s share price will continue to increase following a solid financial performance. According to Silvano, this is still achievable as the company is committed to record a healthy and sustained profitability.

“We wish to give the best value for our stakeholders, especially the shareholders,” Silvano said.

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