Bank Negara Indonesia's net profit reaches nearly US$ 444m in the first nine months of 2015

Thanks to a spike in corporate lending.

Maybank Kim Eng reports that Bank Negara Indonesia booked IDR6t (US$ 444m) net profit in 9M15. The higher-than-expected earnings were driven by acceleration in corporate lending, which took up 43% of total loan portfolio.

"Hence, we adjust our FY15F loan growth forecast to 13% YoY from 10% YoY. Combined with less aggressive provisioning in 2H15, our profit estimate is up 10% to IDR9.6t for YE15."

Here's more from Maybank Kim Eng:

Growth in SOE loans (18% of total book) supports our view that NPL should decline to 2.6% by YE15. Successful restructuring, which has been done more aggressively since 2Q15, is another key factor for improvement in asset quality.

We no longer see a spike in Special Mention loans as we did in 1Q15. By 9M15, BBNI has restructured IDR14.8t of loans and plans another IDR1.1t for 4Q15.

To reflect the lower need for impairment as BBNI’s customers are expected to move their way up to the performing category, we cut our provisioning estimates to IDR7t.

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