BNGA's Q1 2026 Performance Supported by Fee Income, Recommendation Remains Buy, Here is the Target Price
PT Bank CIMB Niaga Tbk (BNGA) recorded a net profit of Rp1.8 trillion in the first quarter of 2026. This result is significant as it reflects resilience in performance amid margin pressures.
According to research from Ciptadana Sekuritas Asia (1 May 2026), on an annual basis, profit declined by 2% due to a decrease in net interest income (NII) and pressure on net interest margin (NIM) to 3.9%. However, this decline was influenced by a one-off interest expense of Rp140 billion. Without this factor, profit performance is considered slightly above expectations.
Non-interest income served as the main support with 29% YoY growth. The contribution from fee income rose to 19.2% of total revenue, driven by wealth management and trading income. This reflects increasingly strong revenue diversification. BNGA is a private bank, a subsidiary of CIMB, headquartered in Jakarta, Indonesia.
Strong Fundamentals, Attractive Valuation
The CASA ratio reached a record 73.9%, up from 67.4% last year and exceeding medium-term targets. This increase was supported by low-cost funds from current accounts and savings, as well as a reduction in expensive deposits. However, this condition may normalise with credit recovery and increasing liquidity competition.
Credit growth was relatively moderate at 2.9% YoY due to a selective strategy amid macroeconomic conditions. Asset quality remains maintained with NPL at 1.9% and LAR at 6.8%. Management continues to target credit growth of 3-5% in 2026 with a focus on quality.
Analysts maintain a buy recommendation for BNGA with a target price of Rp2,130 per share. At a price of Rp1,695, the stock trades at a PBV of around 0.8x and PER of 6.5x, reflecting relatively low valuation. The dividend yield is also estimated at around 8.5%, providing additional appeal for investors.
Factors Monitored by Investors
Strength of fee-based income as a profit support
Trend of CASA normalisation and cost of funds (CoF)
Still moderate credit growth
Risk of NPL increase from subsidiaries (temporary)
Conclusion
BNGA’s performance shows a combination of margin pressures and fee income strength. This reflects a business model that is increasingly diversified. With relatively low valuation and attractive yield, BNGA shares have the potential to remain in investors’ focus. However, liquidity dynamics and credit growth need to be monitored going forward.