BBRI – 9M23 earnings growth at 12.5% yoy

BBRI – 9M23 earnings growth at 12.5% yoy Bank Rakyat Indonesia (BBRI) announced that it achieved a consolidated net profit of IDR44.2tn tn in 9M23, or grew by 12.5% yoy. Net interest income (NII) grew by 4.9% yoy. The bank was also able to record an increase in commission-based income or fee-based income of 12.19% yoy to IDR15.56 tn in the same period, while provisions inched up 1.8% yoy. On key metrics, NIM managed at solid level of 8.05% in 9M23. (Source : Bisnis Indonesia). Comment : BBRI’s 9M23 earnings beating ours and street expectation at 76.1%/75.4% compared to 5yr hist. average of 72.7%. We like earnings achievement amidst the mounting interest expenses by 63.8%, as interest income growth continue solid at 14.4% yoy. Total loan also managed at double digit growth (12.5% yoy), while TPF also continue ample grew by 13.2% yoy, with CASA posted 10.1% stronger. BBRI is one of our top pick among banks under our coverage. Maintain BUY, with TP IDR6,140 pegged at 2.9x ‘23F P/B, while its currently trades 2.4x, slightly below +1SD 5-yr hist. mean of 2.5x.