Undervalued BBNI Share Price, Bank BNI Holds Buyback With a Budget of Rp 1.7 Trillion

ILLUSTRATION. Teller officers serve customers at the BNI Tangerang Selatan branch office, Tuesday (22/6). KONTAN/Carolus Agus Waluyo/22/06/2021.

Reporter: So Gumilar | Editor: So Gumilar

KONTAN.CO.ID – JAKARTA. Pressure experienced by the stock price of PT Bank Negara Indonesia (Persero) Tbk (BBNI) make management take a stand. The state-owned bank will roll out buyback BBNI shares with a jumbo budget.

Bank BNI management said that it budgeted funds buyback a maximum of IDR 1.7 trillion. This budget does not include the cost of repurchasing shares, brokerage commissions and other costs related to buyback.

As far as Kontan observes, this is a budget buyback The largest issuer has prepared to stabilize its share price, which has been under pressure from the Covid-19 pandemic.

Implementation period buyback will be carried out for three months, starting from July 22, 2021 to October 21, 2021.

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Bank BNI management in an information disclosure on Wednesday (21/7) stated that the current surge in the second wave of positive Covid-19 cases has caused BBNI’s share price to drop significantly. By year to date (ytd) until June 30, 2021, BBNI’s share price has dropped 25%.

“Selling pressure in the market due to the Covid-19 sentiment has made BNI shares undervalued with Price to Book Value (PBV) as of 30 June 2021 at 0.75 times. Or it is far below the 10-year average PBV of 1.60 times,” said the management of Bank BNI.

According to the management of Bank BNI, buyback BBNI’s shares will not have a material negative impact on the company’s business activities.

Given that the Company has capital and cash flow sufficient to carry out transaction financing in conjunction with the Company’s business activities.

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