BRI Reports Robust Q1 Profit, Drawing ‘Buy’ Recommendations from Analysts

PRNewswire May 10, 2024

JAKARTA, Indonesia, May 10, 2024 /PRNewswire/ — PT. Bank Rakyat Indonesia (Persero) Tbk (IDX: BBRI) reports a profit of IDR 15.98 trillion for the first quarter of 2024, prompting most analysts to maintain a ‘Buy’ recommendation on BBRI shares.

According to Bloomberg Technoz, based on a Bloomberg consensus, 33 analysts or 97.1% recommend buying BBRI. The consensus also points to a high price target for BBRI shares in the next 12 months, pegged at IDR 6,653.

Sucor Securities analyst Edward Lowis reports that BBRI’s net profit and revenues are robust, supporting a 16% increase in Net Interest Income due to strong credit growth. Edward recommends BBRI shares as a Buy with a price target of IDR 6,400, stating, “Our price target is equivalent to 2.8x book value in 2024, assuming a 23% return on equity and a 12% cost of equity.”

Ciptadana Securities analyst Erni Marsella Siahaan noted that BBRI’s quarterly net profit fell 1.4%, slightly below her expectations but in-line with the consensus forecast of 24% for the full year. Nevertheless, Erni recommends Buy with a price target lowered from IDR 7,150 to IDR 7,000 per share.

By the end of March 2024, BRI has disbursed credits amounting to IDR 1,308.65 trillion, a 10.89% year-over-year (YoY) increase, with IDR 1,089.41 trillion (83.25%) allocated to the MSME (Micro, Small and Medium Enterprise) segment. The double-digit growth in credit disbursement has positively impacted the increase in the company’s assets, with BRI’s assets reaching IDR 1,989.07 trillion, a growth of 9.11% YoY.

Specifically, all loan segments in BRI showed growth YoY: micro segment by 10.51% to IDR 622.61 trillion, consumer segment by 11.62% to IDR 193.96 trillion, small and medium segment by 8.06% to IDR 272.85 trillion, and corporate segment by 15.10% to IDR 219.24 trillion.

Earlier, BRI’s President Director, Sunarso, expressed optimism that BRI could achieve double-digit credit growth, a 10-12% YoY increase, despite high interest rates. By the end of Q1-2024, BRI recorded an LDR of 83.28% and maintained a strong CAR of 23.97%. “We currently do not have liquidity issues as it remains ample. We will continue to maintain this healthy liquidity and sustain double-digit credit growth,” said Sunarso.

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SOURCE PT Bank Rakyat Indonesia Tbk (BRI)

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