BBRI - Net profit reaches IDR45.06 tn

BBRI - Net profit reaches IDR45.06 tn Bank Rakyat Indonesia (BBRI) and its subsidiaries recorded a net profit attributable to owners of IDR45.06 tn for the period ending September 2024. This profit achievement grew by 2.43% yoy. The net interest income (NII) of the bank with the ticker BBRI increased by 4.5% yoy to IDR105.76 tn in the third quarter of 2024. On the intermediation function side, BRI's consolidated credit distribution reached IDR1,297.6 tn as of September 2024, an increase of 8.33% compared to September 2023, which was IDR1,197.83 tn. Until the end of this year, the company still believes that credit growth can reach around 10-12%. yoy. The total assets of this bank, which focuses on the MSME segment, reached IDR1,961.92 tn as of September 2024, growing by 5.94% yoy. (Source : Investor Daily). Comment : We like BBRI’s quarterly performance which grew much stronger by 11.9% qoq. The overall 9M24 performance falling short of both our and consensus expectations (68.1%/67.3%). Total loans grew by 8.2% yoy, driven by the consumer segment (10.0% yoy) and the medium segment (24.6% yoy). Total TPF increased by 5.6% yoy, primarily due to a 11.1% yoy growth in demand deposits (DD). CASA deposits also saw a healthy 6.5% yoy growth. We also like NIM expansion by 40bps to 7.8% vs 7.4% in 2Q24. The bank's AQ improved, with the NPL ratio declining to 2.90% (3Q24) vs 3.05% in 2Q24. CoC decreasing to 3.39% vs 2.44% in 9M23 and much better to 3.23% in 3Q24 vs 3.13%. Maintain BUY BBRI GGM based-TP of IDR6,830 (3.0x ’24F P/B) while currently traded at its historical average mean.