BRIS - Healthy growth from top to bottom; inline 1Q25 earnings

KBVS Update
Wednesday, 7 May 2025

BRIS - Healthy growth from top to bottom; inline 1Q25 earnings           
(Maintain BUY; TP: IDR3,670)

* 1Q25 earnings demonstrated a strong 10.1% yoy growth, fueled by healthy expansion across its revenue and profit lines. In all, 1Q25 PATMI came in-line with street expectation and our ‘25F PATMI for BRIS * (22.3%/24.0% vs 24.4%).*

* Notably, financing growth was robust at 16.2% yoy, exceeding both the industry average and the company's and our ‘25F financing forecasts for BRIS. Total TPF saw a 7.4% yoy increase, supported by a 9.3% yoy rise in soft funding costs (SA). CASA growth of 7.6% yoy slightly outpaced TD.

* Key performance metrics remain manageable, with NIM stood at 5.31% vs 5.38% in 1Q24. Risk metrics improvement continues, with the NPF declining to 1.88% from 2.01% in the same period last year and 1.9% in the 4Q24. Cost of credit continue to stay at low level from 0.88% to 0.93% in 1Q25, inline with ‘25F cost of credit guidance of <1%.  

* We believe BRIS ‘25F guidance is achievable and highlights the potential benefits of BRIS becoming Indonesia's first Bullion Bank, evidenced by the strong growth in its gold business (Pawning +35.65% yoy, Installment +168.64% yoy) with further product development anticipated.

* Maintain BUY GGM-based TP of IDR 3,670 (pegged at 3.3x ‘25F P/B), currently trades at 2.6x ‘25F P/B or slightly above its avg. hist. mean. of 2.4x.

Regards,
Akhmad Nurcahyadi - KBVS Research