rebounded by 28% 2.8% category of Rp % Loan which was higher account grew trillion. Given higher growth ratio 169%

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1 F FOCUS RESEARCH 26 OCTOBER O 2015 COMPANY UPDATE STOCK INFORMATION Bloomberg Code Sector Current Price Target Price Previous Target Price Upside/Downside Share Out (bn shares) Market Cap (Rp bn) 52 w range (low high) 52 w average daily PRICE CHART Jan = 100 Mar 10 May 10 Sep 10 Nov 10 Mar 11 May 11 Source: Bloomberg BBNI SHAREHOLDERS INFORMATION, AS OF 30 SEPTEMBER 2015 The Government of Republic Indonesia 60.0% Director, Commissioner and Employees 0.2% Public (below 5%) 39.8% Source: Company data NEUTRAL IDX Theodorus ArielKristian theodorus.ariel@lautandhana.com (+62 21) ext Sep 11 Nov 11 Mar 12 May 12 Sep 12 Nov 12 Mar 13 BBNI IJ Bank Rp 5,275 Rp 5,900 Rp 7,250 12% 18.6 Rp 98,372 Rp 3,940 Rp 7,275 Rp 5,868 May 13 Sep 13 Nov 13 Mar 14 May 14 Sep 14 Nov 14 Mar 15 May 15 Sep 15 PT BANK NEGARA INDONESIA (PERSERO)TBK Asset Quality Recovery Given by loan restructuring program worth Rp 5 trillion in 3Q15 comprises of Rp 3.6 in special mentionn and Rp 1.4 trillion in NPL category, the company recorded a net profit of Rp 3.6 trillion (vs Rp 387 billion net loss in 2Q15). The NPL started to recover and improve the level of 2.8% (vs 3.0% in 2Q15). Since the share price has rebounded by 28% and currently was trading close to its historical average PBV Band of 1.46x, we maintain our Neutral rating with fair value of Rp 5,900/share. Asset quality recovery thanks to the restructuring program During the 3Q15 period, BBNI s asset quality has started to recover and improve to 2.8% from 3% in 2Q15, which was mainly driven by loan restructuring program of Rp 5 trillion, comprises of pre NPL category (special mention of Rp 3.6 trillion) and NPL category of Rp 1.4 trillion. The program was dominated by consumer, middle and small segments which recorded a high NPL at the level of 2.4%, 4.7% and 6.7%, respectively (vs 2.0%, 5.4% and 6.8% in 2Q15). The company s management insists thatt BBNI will conduct another restructuring program worth of Rp 1 trillion in 4Q15 in order to achieve asset quality improvement. Hence, the NPL is targeted ranging between 2.6% 2.7% in 2015 which is in line with our forecast of 2.71%. Recorded net profit in 3Q15 The company recorded a net profit of Rp 3.6 trillion in 3Q15 after posted a net loss of Rp 387 billion in 2Q15 due to the impact of those loan restructuring program which resulted lower provision charge in 3Q15 of Rp 404 billion (vs Rp 4.8 trillion in 2Q15). Meanwhile, the net interest income (NII) grew by 4.5% QoQ reach to Rp 6..4 trillion driven by loan s growth of 6.3% YoY of Rp trillion. All in all, the company s 9M15 figures came in line with our expectation, in which the NII and net profit covered by 74% to our 2015 forecast of Rp 25.3 trillion in NII and Rp 8.1 trillion in net profit. Loan grew 14.6% YoY, higher than industry In 9M15, the company s total loan grew by 14.6% YoY reaching to Rp trillion which was higher than the industry s growth of 10.9% YoY due to the Rupiah depreciation (around 16% portion is in foreign currency). The loan from business banking increased by 12.7% YoY reach to Rp trillion, dominated by corporate and SoE segments which grew by +14.3% YoY. Meanwhile, consumer segment attained to Rp trillion (+12.4% YoY), driven by higher growth in credit card and payroll credit of 62.3% YoY and 107.3% YoY. Customer deposit grew by 13.3% YoY The customer deposit grew by 13.3% YoY to reach Rp trillion during the 9M15 periods. We note that time deposit grew by 16.6% YoY attained Rp trillion while saving and current account grew by 8.1% YoY and 15.8% YoY, attained to Rp trillion and Rp 93.0 trillion. Given higher growth in time deposit, the company s CASA ratio decreased to the level of 60.9% (vs 62% in 9M14) and LDR came in at 87.7% (vs 85.7% in 9M14). Maintain Neutral rating TP Rp 5,900 per share As we focus on the worsening NPL in the midst of current economic slowdown and weakening purchasing power, we increase our assumption of provision charge by 169% to Rp 8.7 trillion (previously at Rp 3.2 trillion) while NPL is projected to reach at the level of 2.71% in 2015F. Hence, we cut our 2015 net profit forecast by 37% to Rp 8.1 trillion (previously at Rp 12.8 trillion). It results a new fair value of Rp 5,900/share (previously Rp 7,250/share). Hence, we maintain our Neutral recommendation since the price has rebounded by 30% and currently was trading close to its historical average PBV band of 1.46x. Financial Summary (Rp billion) Net interest income PPOP Net profit EPS (Rp) PER (x) BVPS (Rp) PBV (x) Dividend yield (%) RoAE (%) NIM (%) 2013A 19,058 13,926 9, , A 22,376 16,988 10, , F 25,248 18,809 8, , F 2017F 28,668 32,700 21,930 25,725 12,342 15, ,035 4, Please see important disclosures at the end of this report

2 PT BANK NEGARA INDONESIA (PERSERO)TBK 26 OCTOBER 2015 Interim Financial Result 9M14 9M15 growth FY15F cover 2Q15 3Q15 growth The Comments P/L (In Rp billion) Net Interest Income 16,394 18, % 25,248 74% 6,164 6, % Inline Operating expenses (10,271) (11,957) 16.4% (17,918) 67% (3,624) (4,104) 13.2% PPOP 12,749 13, % 18,809 74% 4,281 4, % Provision (3,308) (6,403) 93.6% (8,712) 73% (4,758) (404) 91.5% Lower charge due loan restructuring Non op inc net n.a % % Pre tax profit 9,593 7, % 10,167 75% (460) 4,496 n.a. Income tax (1,982) (1,598) 19.4% (2,084) 77% 73 (928) n.a. Net Profit 7,611 5, % 8,069 74% (387) 3,568 n.a. Inline, posted net profit in 3Q15 Profitability Avg Yield 10.8% 11.1% 9.5% 11.2% 11.1% Cost of Fund 3.2% 3.1% 3.0% 3.2% 3.1% NIM 6.1% 6.5% 6.6% 6.5% 6.5% Maintained NIM BOPO 70.6% 78.6% 78.8% 87.4% 78.6% Assets Quality CAR 16.2% 17.4% 16.1% 17.1% 17.4% LDR 85.7% 87.7% 87.6% 87.6% 87.7% CASA to Deposits 62.0% 60.9% 65.1% 63.2% 60.9% NPL gross 2.2% 2.8% 2.7% 3.0% 2.8% NPL recovery due loan restructuring Provisioning coverage 129.0% 139.6% 117.6% 138.8% 139.6% Revised Forecast Old New Change 2015F 2016F 2015F 2016F 2015F 2016F Asset (In Rp billion) Loan 320, , , , % 0.0% Costumer Deposit 349, , , , % 0.0% P&L (In Rp billion) Net Interest Income 25,248 28,809 25,248 28, % 0.5% Operating expenses 18,233 20,097 17,918 19, % 1.3% PPOP 19,062 22,194 18,809 21, % 1.2% Provision (3,235) (4,037) (8,712) (6,504) 169.3% 61.1% Non op. inc net % 32.3% Pre tax profit 16,061 18,352 10,167 15, % 15.2% Income tax (3,212) (3,670) (2,084) (3,189) 35.1% 13.1% Net Profit 12,827 14,651 8,069 12, % 15.8% Key Financial Ratio CAR 17.2% 17.1% 16.1% 16.0% 6.4% 6.4% LDR 87.6% 86.9% 87.6% 86.9% 0.0% 0.0% CASA to Deposits 65.1% 65.8% 65.1% 65.8% 0.0% 0.0% NPL gross 2.0% 2.0% 2.7% 2.2% 34.7% 11.9% Provisioning coverage 134.9% 133.1% 117.6% 125.8% 12.8% 5.5% Source: Lautandhana Research PBV BAND PBV BAND 11, ,000 9, x 2.5 8,000 7, x 2 Avg + stdev 6,000 5, x 1.5 Avg 4, x 1 Avg stdev 3,000 2, x 0.5 1,000 Jan 07 Apr 07 Jul 07 Oct 07 Jan 08 Apr 08 Jul 08 Oct 08 Jan 09 Apr 09 Jul 09 Oct 09 Apr 10 Oct 10 Apr 11 Oct 11 Apr 12 Oct 12 Apr 13 Oct 13 Apr 14 Oct 14 Apr 15 Oct 15 0 Jan 07 Apr 07 Jul 07 Oct 07 Jan 08 Apr 08 Jul 08 Oct 08 Jan 09 Apr 09 Jul 09 Oct 09 Apr 10 Oct 10 Apr 11 Oct 11 Apr 12 Oct 12 Apr 13 Oct 13 Apr 14 Oct 14 Apr 15 Oct 15 Source: Bloomberg and Lautandhana Research Source: Bloomberg and Lautandhana Research 2 P age

3 26 OCTOBER 2015 PT BANK NEGARA INDONESIA (PERSERO) TBK Loan Segment (Rp trillion) Period 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 YoY Segments Corporate & SoE % Consumer % Small % Medium % Subsidiaries % International % Total % Growth QoQ Corporate & SoE 13.1% 8.0% 9.7% 1.8% 1.4% 5.4% 1.6% 5.2% 10.2% 7.6% Consumer 8.7% 3.2% 0.6% 0.0% 2.0% 0.8% 6.1% 5.1% 1.8% 2.5% Small 9.2% 0.9% 4.0% 7.4% 3.9% 3.4% 3.9% 2.4% 3.1% 0.5% Medium 16.0% 2.9% 11.1% 1.0% 12.1% 10.0% 5.3% 2.2% 9.8% 7.0% Subsidiaries 11.5% 10.1% 6.4% 8.2% 9.6% 5.3% 6.7% 4.4% 6.7% 1.4% International 10.5% 32.2% 4.4% 1.0% 20.4% 11.4% 2.9% 1.9% 5.4% 40.7% Total 11.0% 5.5% 6.7% 1.4% 4.2% 4.0% 3.6% 2.9% 7.1% 6.4% Portion Corporate & SoE 41.8% 42.5% 43.6% 44.8% 44.6% 43.4% 44.0% 43.1% 42.1% 43.3% 43.8% Consumer 22.4% 21.9% 21.5% 20.2% 20.5% 20.1% 19.5% 19.9% 19.5% 18.5% 17.9% Small 17.0% 16.7% 15.7% 15.3% 14.4% 14.3% 13.3% 13.3% 14.1% 13.6% 12.7% Medium 11.6% 12.1% 11.8% 12.3% 12.6% 13.5% 14.3% 14.5% 14.6% 15.0% 15.1% Subsidiaries 4.3% 4.3% 4.5% 4.5% 5.0% 5.2% 5.3% 5.4% 5.8% 5.8% 5.6% International 2.9% 2.4% 3.0% 2.9% 3.0% 3.4% 3.7% 3.6% 3.8% 3.8% 5.0% Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% NPL Gross (%), Bank Only Period 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 YoY* Segment Corporate & SoE Medium Small Consumer Total Change QoQ* Corporate & SoE Medium Small Consumer Total *) In bps Third Party Fund (Rp Trillion) Period 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 YoY Deposits Demand % Savings % Time Deposits % Total % Growth QoQ Demand 12.2% 4.5% 3.2% 16.1% 18.9% 8.9% 3.4% 4.3% 14.4% 2.4% Savings 5.7% 7.4% 9.6% 6.9% 0.4% 7.1% 7.7% 5.6% 2.9% 3.2% Time Deposits 8.6% 1.3% 4.2% 4.3% 27.8% 4.4% 4.9% 1.3% 6.6% 13.5% Total 8.6% 4.5% 5.9% 6.1% 14.7% 1.9% 1.8% 2.8% 7.2% 6.8% Page 3

4 PT BANK NEGARA INDONESIA (PERSERO)TBK 26 OCTOBER 2015 Financial Highlights of PT Bank Negara Indonesia (Persero) Tbk In Rp Billion BALANCE SHEET 2013A 2014A 2015F 2016F INCOME STATEMENT 2013A 2014A 2015F 2016F ASSETS Interest income 26,451 33,365 36,249 40,382 Cash and cash equivalent 10,090 11,436 11,019 19,556 Interest expenses (7,392) (10,989) (11,001) (11,714) Current account with BI and others bank 27,232 29,093 32,596 37,956 Net Interest income 19,058 22,376 25,248 28,668 Placement with BI and others bank 23,473 14,527 26,515 24,111 Marketable securities 53,398 56,568 56,698 60,613 Fees and commissions Gross loans 250, , , ,954 Other non interest income 9,441 10,715 11,478 13,094 Loan provisions (6,880) (6,970) (10,250) (10,230) Total net operating income 28,499 33,092 36,727 41,762 Fixed assets 5,514 6,222 6,878 7,531 Others 23,191 28,075 29,986 35,334 Salaries expenses (6,084) (6,781) (7,769) (8,385) TOTAL ASSETS 386, , , ,826 G&A expenses (4,540) (5,091) (5,374) (6,025) Other expenses (3,949) (4,232) (4,775) (5,421) Pre Provision Operating profit (PPOP) 13,926 16,988 18,809 21,930 LIABILITIES & EQUITY Provision (2,708) (3,642) (8,712) (6,504) Customers deposits 291, , , ,807 Operating profit 11,219 13,346 10,097 15,426 Other banks deposits 3,185 3,177 3,099 4,058 Fund borrowings 18,951 11,212 15,081 18,098 Non operating income Subordinated borrowings 6,037 6,158 6,158 6,158 Profit before tax 11,278 13,524 10,167 15,558 Others 18,909 21,112 18,458 14,620 Total Liabilities 338, , , ,741 Tax expense (2,220) (2,695) (2,084) (3,189) Capital stock 9,055 9,055 9,055 9,055 Net profit before non controlling interest 9,058 10,829 8,083 12,369 Additional paid in capital 14,568 14,568 14,568 14,568 Others (3,035) Non controlling interest Retained Earnings 27,012 35,078 40,454 51,183 Total Equity 47,600 59,072 64,448 75,176 Net profit 9,054 10,783 8,069 12,342 Non Controlling Interest 83 1, TOTAL LIABILITIES & EQUITY 386, , , ,826 EPS (Rp) KEY FINANCIAL RATIO 2013A 2014A 2015F 2016F MARKET RATIO 2013A 2014A 2015F 2016F Growth (%) Total assets PER (x) Gross loans PBV (x) Customer deposits BVPS (Rp) 2,555 3,171 3,459 4,035 Risk weighted assets Dividend yield (%) Net interest income PPOP Net profit (25.17) Profitability (%) Earning Asset Yield Cost of Fund NIM ROAA ROAE Cost to Income Ratio Op. exp to Op. inc (BOPO) Capital & Quality Assets (%) CAR LDR CASA to Deposits NPL gross Provisioning coverage Notes: The definitions of Lautandhana Research for Investment Ratings: BUY : +15% and above, over the next 12 months Neutral : 15% to +15%, over the next 12 months SELL : 15% and worse, over the next 12 months 4 P age

5 PT Lautandhana Securindo Wisma KEIAI 15 th Floor Jl. Jendral Sudirman Kav. 3 Jakarta Tel : Fax : BRANCH OFFICE Pluit Kelapa Gading Kawasan CBD Pluit Blok A No.20 Sentra Bisnis Artha Gading Jl. Pluit Selatan Raya No.1 Jl. Boulevard Artha Gading Blok A6B No. 7 Jakarta Jakarta Utara Tel : Tel : Fax : Fax : Mangga Dua Puri Mangga Dua Square Blok F No.23 Rukan Grand Taman Aries Niaga Jl. Gunung Sahari Raya No.1 Jl. Taman Aries Kembangan Blok G 1 No. 1 I Jakarta Jakarta Barat Tel : Tel : Fax : Fax : Karawaci Gading Serpong Karawaci Office Park Blok L No Ruko Paramount Centre Blok A No. 2 Lippo Karawaci Tangerang Jl. Raya Kelapa Dua, Tangerang Banten Banten Tel : Tel : / Fax : Fax : Bandung Surabaya Komplek Paskal Hyper Square Blok C No. 15 Jl. Diponegoro 48D E Jl. Pasir Kaliki No Surabaya Bandung Tel : Tel : Fax : Fax : Medan Medan Jalan Kartini No.5 Kampus STMIK STIE MIKROSKILL Medan Jl. Thamrin No 140 Tel : Medan Fax : DISCLAIMER This report has been prepared by PT. Lautandhana Securindo on behalf of itself and its affiliated companies and is provided for information purposes only. Under no circumstances is it to be used or considered as an offer to sell, or a solicitation of any offer to buy. This report has been produced independently and the forecasts, opinions, and expectations contained herein are entirely those of PT. Lautandhana Securindo. While all reasonable care has been taken to ensure that information contained herein is not untrue or misleading at the time of publication, PT. Lautandhana Securindo makes no representation as to its accuracy or completeness and it should not be relied upon as such. This report is provided solely for the information of clients of PT. Lautandhana Securindo who are expected to make their own investment decisions without reliance on this report. Neither PT Lautandhana Securindo nor any officer or employee of PT Lautandhana Securindo accept any liability whatsoever for any direct or consequential loss arising from any use of this report or its contents. PT Lautandhana Securindo and/or persons connected with it may have acted upon or used the information herein contained, or the research or analysis on which it is based, before publication.