BBRI : Asset Quality Back to Management Guideline
31 Okt 2024BBRI recorded a net profit of IDR45.36 trillion, growing 2.6% yoy in 9M24. This result grew in line with our FY24F estimate (73%).
BBRI’s Non-Performing Loan (NPL) is back to management’s target. Gross NPL fell 170 bps yoy to 2.90% in 9M24 and lower than 2.95% in FY23.
BBRI’s credit grew 8.2% yoy to IDR1.353 trillion in 9M24. This growth was supported by corporate loans (+17% yoy) and consumer loans (+10% yoy), which contributed 18% and 15% to BBRI’s revenue, respectively.
Regarding customer deposits, the Current Account Saving Account (CASA) grew by 6.5% in 9M24. BBRI recorded total third-party funds of IDR1.362 trillion (+5.6% yoy) in 9M24.
Using the Discounted Cash Flow method with a Required Return of 9.72% and Terminal Growth of 4.72%, we estimate BBRI’s fair value at 5,925 (14.31x expected P/E FY24F). Considering BBRI’s fair price, we maintain our buy rating for BBRI with a lower target than before and a potential upside of 25.79%.
By PHINTRACO SEKURITAS | Research
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