BBRI – 5M24 net profit increases 8.83% yoy

BBRI – 5M24 net profit increases 8.83% yoy Bank Rakyat Indonesia (BBRI) recorded impressive performance throughout the first five months of 2024. This bank, which is close to the little people, recorded an increase in profits of around 8.83% on an annual basis (yoy). The performance over the past five months has been recorded as being better compared to the bank's performance in the first quarter of 2024. At that time, the bank only recorded profit growth of around 2.45% yoy. Quoting BRI's monthly report as of May 2024, BBRI's current year profit was recorded at IDR21.9 tn. As a comparison, in the same period last year, BBRI recorded a profit of IDR20.12 tn. The increase in profit was further supported by BBRI's net interest income which also rose by 5.52% yoy to IDR45.84 tn. This happened when the industry was in the shadow of high interest costs. (Source : Kontan) Comment : In all BBRI’s earnings are in line with ours (see our BBRI report on June 13, 2024) and street estimates. With the 5M24 PATMI coming in at our 5M24F, we expect the bank to record another inline 1H24 result, which thus should be translated as BBRI resiliency to reach our FY24F net profit for BBRI. As such, we maintain our buy call for BBRI with a GGM-TP of IDR6,830 (implying 3.0x ’24F P/B), while currently trading at an appealing ‘24F P/B multiple or below its historical mean.