ID_BBNI H1 2026: net profit down 49.5%, but dividend yield stays double-digit

On 30 June 2026, ID_BBNI reported H1 2026 results: net profit of IDR 10,809.6 million, down 49.5% year-on-year. Interest income rose 14.2% to IDR 38,630.2 million, but impairment charges jumped 42.1% to IDR 5,382.0 million, the main drag on profit. At the current price, the shares offer a dividend yield of 9.1% and, on the portal's model, have 7% upside, making the stock rather attractive despite weak earnings momentum.

Key takeaways

— H1 net profit fell 49.5% as impairment charges rose 42.1%

— Interest income grew 14.2%, but net interest margin compressed due to higher funding costs

— Fee and commission income rose 13.5%, supporting operating profit

— Trailing 12-month dividend yield of 9.1% is above historical levels

— On the portal's model, shares have 7% upside to fair value

— The bank's capital remains strong: ROE of 6.1%, capital adequacy is not a concern

Attractiveness

Key figures, IDR bn

H1 net profit fell 49.5% as impairment charges rose 42.1%

For H1 2026, ID_BBNI's net profit was IDR 10,809.6 million, down 49.5% from the same period in 2025. The main driver was a 42.1% increase in impairment charges to IDR 5,382.0 million, reflecting either deteriorating credit quality or a more conservative risk assessment.

Operating profit fell less sharply – by 6.0% to IDR 13,115.2 million – as higher operating income partly offset the increase in provisions. Net profit was also hit by a 5.1% rise in tax expenses to IDR 2,261.7 million.

Notably, in Q4 2025 the bank recorded a loss of IDR 10,078.9 million, driven by one-off items. In Q1 2026 profit recovered to IDR 5,660.8 million, but Q2 dynamics, judging by the half-year trend, suggest slower growth.

Interest income grew 14.2%, but net interest margin compressed due to higher funding costs

Interest income for H1 2026 rose 14.2% to IDR 38,630.2 million, but interest expense grew faster – by 15.9% to IDR 16,344.9 million. As a result, net interest income was IDR 22,285.3 million, only 14.2% above last year's level.

The key factor was more expensive funding: the bank increased client deposits and market borrowings, as seen in a 5.7% rise in customer deposits to IDR 1,100,189.3 million and a 4.0% increase in securities issued to IDR 14,822.6 million.

On a quarterly basis, net interest income in Q2 2026 was IDR 11,026.0 million, up 5.8% from Q2 2025. However, Q4 2025 was abnormally low at IDR 11.1 million due to one-off adjustments, making comparisons with that quarter misleading.

Fee and commission income rose 13.5%, supporting operating profit

Other operating income for H1 2026 rose 11.4% to IDR 11,432.4 million. Within this, fee and commission income increased 13.5% to IDR 5,502.4 million, reflecting higher client transaction activity.

Operating expenses grew 11.3% to IDR 15,542.6 million, with staff costs up 14.2% to IDR 7,456.3 million and general and administrative expenses up 6.6% to IDR 4,664.9 million. Nevertheless, operating profit remained positive at IDR 13,115.2 million.

Importantly, the bank continues to generate sufficient operating income to cover costs and provisions, although the safety margin has narrowed compared with last year.

Trailing 12-month dividend yield of 9.1% is above historical levels

Over the trailing 12 months, ID_BBNI paid dividends providing a yield of 9.1% on the current market capitalisation of IDR 142,475.7 million. This is above historical averages for the Indonesian banking sector and makes the stock attractive for income-oriented investors.

In H1 2026, the bank distributed dividends of IDR 13,026.5 million, corresponding to payments for 2025. Given that 2025 net profit was around IDR 20,000 million (estimated from quarterly data), the payout ratio exceeds 65%.

For 2026, if the bank maintains a payout policy of 50-60% of profit, the dividend could be approximately IDR 5,400-6,500 million, implying a yield of 3.8-4.6% at the current capitalisation. However, given the profit decline in H1, the actual dividend may be lower.

The key risk to dividends is further deterioration in credit quality and the need to build provisions, which has already cut profit by 49.5% in H1.

On the portal's model, shares have 7% upside to fair value

Our valuation model, based on the ratio of annualised earnings to market capitalisation (ROE to P/B), suggests that ID_BBNI shares trade 7% below fair value. This is moderate upside, which combined with a 9.1% dividend yield gives a total expected return of around 16%.

Current ROE is 6.1%, below the cost of equity for emerging markets, but the bank maintains a strong capital position: total equity reached IDR 168,230.7 million at the end of June 2026.

Compared with its own history: over the past three years, the bank's average P/B has been around 1.0-1.2x, and the current level is at the lower end of that range, supporting the conclusion that the stock is undervalued.

The bank's capital remains strong: ROE of 6.1%, capital adequacy is not a concern

Despite the profit decline, ID_BBNI's capital base remains solid. Total equity at the end of June 2026 was IDR 168,230.7 million, down 4.6% since the start of the year due to dividend payments and negative securities revaluation.

Return on equity (ROE) over the trailing 12 months was 6.1%, below pre-crisis levels but acceptable for a state-owned bank in a period of elevated provisions. The bank continues to meet regulatory capital requirements, although exact ratios are not disclosed in the report.

Negative securities revaluation through other comprehensive income was IDR 4,972.5 million in H1, reflecting higher interest rates, but it does not affect profit or tier-1 capital.

Valuation on the latest reported figures

Bottom line

ID_BBNI's H1 2026 was weak on profit: the 49.5% decline was driven by higher provisions, not deteriorating operations – operating profit fell only 6.0%. Interest income is growing, but margins are compressing due to more expensive funding, which warrants attention. The 9.1% dividend yield remains the main argument for holders, but its sustainability depends on whether the bank can contain provisions in H2. At the current price, the shares look rather attractive: the portal's model gives 7% upside, and the dividend provides double-digit yield. The key question for investors is not operating dynamics but credit quality and the adequacy of provisions.