XA Update Report | PT Bank Negara Indonesia Tbk. (BBNI) – 1H26 | 2Q26: Strong Wholesale Growth Supports Core Profitability Despite Rising NIM Pressure and Funding Costs

XA Update Report | PT Bank Negara Indonesia Tbk. (BBNI) – 1H26 | 2Q26: Strong Wholesale Growth Supports Core Profitability Despite Rising NIM Pressure and Funding Costs

By Leonardo Lijuwardi

13-August-2026

BBNI recorded 1H26 net profit of IDR 10.76T (+6.6% YoY), with 2Q26 net profit reaching IDR 5.10T (+8.1% YoY, -10.0% QoQ), equivalent to 52.1% of our FY26F estimate of IDR 20.66T. Core performance remained solid, supported by strong loan growth and expansion in non-interest income, which helped partially mitigate the decline in loan yields. 1H26 Net Interest Income (NII) grew 14.2% YoY to IDR 22.29T, while PPOP increased 14.5% YoY to IDR 18.50T. However, margin pressure is becoming a key concern, with blended loan yield declining to 6.9% in 1H26 from 7.3% in 1H25, primarily driven by weaker yields in the corporate and middle segments. On the funding side, interest expense increased 5.0% QoQ to IDR 8.37T in 2Q26, amid higher cost of funds and a shift in the funding mix toward time deposits, limiting NII growth despite a 3.3% QoQ increase in interest income. Meanwhile, OPEX increased 12.6% YoY to IDR 15.54T and provisioning rose 42.1% YoY to IDR 5.38T in 1H26, with credit cost increasing to 1.2% in 2Q26 from 1.1% in 1Q26. Therefore, while profitability remains resilient and loan growth momentum remains strong, pressure on loan yields, funding costs, and provisioning expenses remain the key factors to monitor going forward.

🔹 Lending Side: Strong Loan Growth – Wholesale Remains the Key Growth Driver

• Loan growth remains a key highlight for BBNI. Consolidated loans increased 24.4% YoY and 5.4% QoQ to IDR 968.5T in 1H26, primarily driven by the wholesale segment. Corporate loans grew 24.5% YoY to IDR 542.7T, while middle-market loans increased 62.0% YoY to IDR 170.0T. Overall, business banking accounted for approximately 82% of total consolidated loans, highlighting the continued strength of BBNI’s wholesale-led loan expansion.

• Corporate remains the core growth engine, particularly through SOE exposure, while middle-market lending delivered strong QoQ momentum. Corporate loans increased 3.2% QoQ to IDR 542.7T, with SOE corporate loans growing 6.7% QoQ and 63.2% YoY to IDR 197.8T. Meanwhile, middle-market loans increased 19.4% QoQ and 62.0% YoY to IDR 170.0T, primarily driven by enterprise loans, which grew 33.9% QoQ and more than doubled YoY to IDR 111.4T. This highlights the increasing diversification of BBNI’s wholesale franchise beyond its traditional corporate banking base.

•The consumer segment remains relatively resilient versus industry trends. Consumer loans increased to IDR 160.8T (+9.4% YoY, +1.8% QoQ), with mortgage, personal loans, and credit cards growing 9.9%, 9.2%, and 9.4% YoY, respectively. While consumer loan growth remained below that of the wholesale segment, BBNI continued to maintain relatively stable momentum amid softer retail lending trends across several major banks.

•However, loan yields remain under structural pressure. Blended loan yield declined to 6.9% in 1H26 from 7.3% in 1H25, with the most pronounced pressure coming from the corporate and middle-market segments. Corporate and middle-market loan yields declined to 6.2% and 7.2%, respectively, from 6.5% and 8.0% in 1H25, while consumer loan yield also declined to 7.8% from 8.3%. The decline in loan yields was a key factor behind management’s revision of FY26 NIM guidance to 3.3–3.5% from 3.5–3.8%.

🔹 Funding Side: Funding Mix Shifts as CASA Comes Under Pressure from Higher Cost of Funds

• Third-party funds remained strong YoY, but the funding mix began shifting from CASA toward time deposits. Total deposits reached IDR 1,100.2T in 1H26 (+22.3% YoY), although they were relatively flat QoQ. CASA declined 1.6% QoQ to IDR 720.0T, primarily due to a 4.1% QoQ decline in current accounts to IDR 428.6T. Meanwhile, time deposits increased 3.0% QoQ and 50.7% YoY to IDR 380.2T, bringing the CASA ratio down to 65.4% from 66.5% in 1Q26 and 72.0% in 2Q25.

•Funding pressure became more evident in 2Q26. Cost of Third-Party Funds (CoF) increased to 2.63% in 2Q26 from 2.49% in 1Q26, while interest expense rose 5.0% QoQ to IDR 8.37T. As a result, despite interest income growing 3.3% QoQ to IDR 19.63T, higher funding costs began to constrain NII pass-through. This was one of the key factors behind management’s decision to lower FY26 NIM guidance to 3.3–3.5%, reflecting a more prudent approach amid the evolving funding environment.

🔹 BBNI Asset Quality: Asset Quality Remains Stable, While Provisioning Turns More Conservative

• Asset quality remained relatively healthy. LAR improved to 8.1% in 1H26 from 11.0% in 1H25, while NPL remained stable at 1.9%. LAR coverage improved to 47.4%, providing a stronger buffer against potential asset quality downside. However, provisioning increased alongside strong loan growth and a more prudent risk management approach. Provisioning charges rose 42.1% YoY to IDR 5.38T in 1H26, with 2Q26 reaching IDR 2.96T (+22.6% QoQ). Credit cost increased to 1.2% in 2Q26 from 1.1% in 1Q26, although it remained within the FY26 guidance range of 1.0–1.2%.

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