by Samuel Securities
BBNI booked flat growth on main business income on 3M11, reflected by flat net interest income. Meanwhile, bottom line increased by 22.1% to Rp1.25 tr but it was mainly due to recovery loan and efficiency. Result on 1Q11 is better than 4Q10, but it was caused by cyclical business. Bottom line is still in line with our forecast and market consensus.
Loan grew by 16.6% but earning yield declined to 10.4% from 12.1% and slightly· lowered interest income. In our view, the decline in earning yield was due to: 1) the low bond rate (majority of corporation have other option for raising fund from bond) and 2) tight competitive lending rate on consumer loan. Meanwhile, interest expense also fell by 3.9% due to the decreasing cost of fund.