Continued Core Acceleration
In 3Q18 BBNI posted the interest income of IDR13.3 trillion or growing 8.4% y-y. This growth was higher than 3Q17’s interest income growth of 7.3%. Indeed, the latest growth marks the continued acceleration trend occurred since the 2Q18. Moreover, like the growth in the interest income, in the net interest income (NII) also grew by 5.6% in 3Q18 (vs. 1.8% in 3Q17). We are sanguine about the current acceleration trend persisting in next few years. A combination between stronger loan growth (15.6% in 3Q18) and a narrower room for lower NIM will bolster BBNI’s performance.

Jump in Loan Growth Spurred by SOE Segment
The loan growth of 15.6% in 3Q18 was significantly higher than the growth of 10.6% in 2Q18 and the highest growth since 2Q17. The SOE segment marked outstanding performance by posting the growth of 24.9% y-y (vs. 7.7% y-y in 2Q18) to IDR101.9 trillion in 3Q18. The contribution of the SOE segment gave bigger contributions from 19.4% into 20.9%.

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