ARTICLE

BBRI - Records profit of IDR60.6 tn throughout 2024 Bank Rakyat Indonesia (BBRI) successfully recorded a consolidated net profit of IDR60.64 tn, a slight increase of 0.36% yoy. Quoting the financial report in the mass media, the achievement is not unrelated to the net interest income of IDR142.05 tn, an increase of 3.38% yoy from the previous year of IDR137.40 tn. Then, the distribution of BRI credit and sharia loans, which amounted to IDR1,348.21 tn, grew by 7.98% yoy in 2024, from IDR1,248.51 tn the previous year. Total MSME credit recorded was IDR1,110.37 tn. Credit quality is also maintained with a gross non-performing loan (NPL) ratio of 2.94% and a net NPL of 0.75% as of December 2024. BRI also recorded an NPL coverage of 215.01%. BRI successfully recorded a TPF of IDR1,365.45 tn. With a proportion of low-cost funds or current account savings account (CASA) of 67.30%. (Source : Cnbc Indonesia). Comment : BBRI FY24 flat growth mainly driven by increasing provisions, despite solid top line (10% yoy) and strong non-interest income growth (26.0% yoy). In all, FY24 net income arrives inline with ours (100%) and street expectation (99%). On quarterly basis, 4Q24 PATMI of IDR15.1 tn was inline vs our forecast of IDR15.2 tn (99%). Loans grew by 7.0% yoy (9M24: 8.2% yoy) as micro and small segment remain under pressure. Tight liquidity headwind brought total TPF grew flat (0.5% yoy, 0.2% qoq). Worth to note total deposit still supported by steady solid CASA segment (5.1% yoy). NIM at 7.74% came in within BBRI expectation (7.6-8.0%) and our ‘24F NIM for BBRI (7.8%). CoC missed BBRI’s guidance (Max.3%) and around 18bps higher than our expectation as provisions mounting yoy, yet dropped significantly on quarterly basis (20.6% qoq). Maintain BUY. GGM-TP of IDR 5,960. Our GGM-based TP for BBRI pegged at 2.5x ’25F P/B.