Indonesia’s BNI revises share buyback plan to 905.5B rupiah

Indonesia’s BNI revises share buyback plan to 905.5B rupiah

Indonesia’s BNI Announces Share Buyback Plan Worth 905.5 Billion Rupiah

PT Bank Negara Indonesia (Persero) Tbk (BBNI) has announced plans to conduct a share buyback program valued at up to 905.5 billion rupiah, equivalent to 10% of its outstanding shares. The initiative, funded entirely by internal cash reserves, requires shareholder approval ahead of its implementation.

The proposal will be presented for approval at the Annual General Meeting of Shareholders (AGMS) on March 13, 2025. If approved, the buyback is expected to be executed within 12 months from the AGMS decision. Corporate Secretary Okki Rushartomo Budiprabowo confirmed the details, emphasizing the company's commitment to optimizing capital structure through this corporate action.

Financially, the buyback will reduce BBNI's total assets from 1.129 trillion rupiah to 1.128 trillion rupiah and lower equity from 167.18 trillion rupiah to 166.28 trillion rupiah, based on December 2024 figures. However, the move is projected to marginally improve the bank's return on equity (ROE) from 14.24% to 14.33%. Conversely, the Minimum Capital Adequacy Ratio (CAR) will decline slightly, from 21.40% to 21.27%.

The stock, currently trading at Rp 4,300 (+0.23% as of the latest data), may see increased investor interest as the buyback could enhance per-share value over time. Analysts note that such actions often signal management confidence in long-term prospects while addressing excess capital.

With the buyback aligned with regulatory frameworks and BBNI's strategic priorities, stakeholders will closely monitor its execution and broader implications for the bank's financial metrics.

Source: IDNFinancials, March 2025.