BBRI - Talks about potential dividend interim

BBRI - Talks about potential dividend interim PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI) stated that the distribution of interim dividends refers to procedures and rules in the capital market. As of the third quarter of 2023, BRI itself has achieved a consolidated net profit of IDR44.2tn (+12.5% yoy). BBRI plans to distribute the interim dividend to shareholders this year. At the end of last year, BRI announced the distribution of an interim dividend of IDR 8.63tn or IDR 57 per share. Then, at the beginning of this year BRI distributed cash dividends of IDR 43.5tn or IDR 288 per share. BRI's dividend distribution ratio reaches 85% of its profit for the 2022 financial year. BRI's cash dividend distribution is the largest among other banking issuers. (Source: Bisnis Indonesia). Comment: We believe BBRI has enough room to continue offer high DPO. With its mounting and solid capital, DPO has rising from 49% in FY18 to 85% in FY22. Ceteris paribus, our ‘23F earnings for BBRI of IDR58.3tn is translating into a DPS of around IDR350/share with the assumption of 75% dividend payout ratio or equal to around 7.1% of yield, using Friday (Oct 27th) closing price of IDR5,000/share.