NIM Hits 6.81%
BBRI’s NIM hikes 2 bps QoQ, backed by Cost of Fund (CoF) declining by 1 bps QoQ; thus, NHKS projects the adjustment of credit interest rates is limited along with declines in interest rates of third party funds, i.e. time deposits, with tenors well above 12 months, re-occurring in 4Q19. BBRI benefits from additional cuts of BI 7-DRRR by 25 bps on October 2019 with the total cut of 100 bps from July to October 2019 so that NHKS expects BBRI’s margins to increase from 4Q19 to 2020.


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