BBRI - Inline 1H25, attractive valuation

KBVS Update
Friday, 1 August 2025

BBRI - Inline 1H25, attractive valuation
(Maintain BUY; TP: IDR4,470)

* BBRI 1H25 net income came inline within ours and cons. ‘25F expectation at 45.8%/45.0% vs 47.2%. The bank is on track to meet its ‘25F 7%-9% yoy loan growth guidance, bolstered by 6.0% yoy loan expansion. Amid a tighter liquidity environment, robust CASA growth of 10.6% drove overall deposit growth to 6.7%.

* The bank's fundamentals are strengthening, with NIM improving to 7.8%, surpassing its ‘25F management guidance (7.3%-7.7%). Risk metrics remain manageable. BBRI is holding firm on its ‘25F guidance, projecting a healthy loan growth of 7%-9% yoy while committing to keep NPLs below 3% (a target we believe is achievable). While the credit cost was a prior concern, recent progress has bolstered our confidence, making the bank's '25 CoC guidance of 3.0%-3.2% appear well within reach.

* Our rigorous re-evaluation, employing a robust suite of methodologies including GGM, DDM, Single Stage Fair PB, and Rolling PB, reaffirms our conviction. The recent sell-off has presented a significant dislocation between price and intrinsic value, making the stock an exceptionally attractive proposition even under conservative assumptions

* Maintain BUY BBRI, GGM-based TP of IDR4,470 (2.1x ’25F P/B) while currently trading attractively at its -2SD of 1.7x.

Regards,
Akhmad Nurcahyadi - KBVS Research team