BBRI - Eyeing for 9%-11% yoy loan growth in 2023

PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) targeting loan growth to grow within the range of 9%-11%. As of Sept22 BBRI loan growth at 7.9% yoy to IDR1,111.4 tn. Of the total, micro loan grew 14.1% yoy to IDR463.7 tn, while consumer loan increased 7.6% yoy to IDR150.5 tn. (Source: Investor Daily) Comment: BBRI loan growth target is likely achievable and within the range of Bank Indonesia and Financial Services Authority targets at around 11%. MSME will remain as the major driver with majority portion still come from micro segment. We expect the collaboration of Pegadaian and PNM will bring more meaningful impact to BRI loan and earnings grow next year. Amidst the oning concern over the spiking inflation and policy rate adjustment impact to earnings asset yield, NIM likely to stay at around 9M22 level while net profit growth could be stable which will be help by solid improving CASA and manageable asset quality.