BBRI - Committed to disburse optimum dividend

Bank Rakyat Indonesia (BBRI) has sufficient position to consistently disbursed high dividend backed by its strong capital. As of 2022 BBRI’s payout was 85% or around IDR43.9 tn. Management stated that as if the bank capital ratio recorded 2% lesser of growth, it would not made BBRI to unable disburse dividend due to its solid CAR which note far above requirement. (Source: Investor Daily). Comment: Assuming payout ratio will sustained only at 50%, BBRI’s solid capital remain far above Basel III requirements.This massive dividend will gain traction and made the stock could crawl to re-rating zone and get closer to +1SD. We also like its 1Q23 results achievement which beating ours and street forecast and thus should become as another solid catalyst for BBRI.