BBRI : Strong Financial, Amidst Declining Asset Quality

06 Mei 2024 Valdy

BBRI recorded a net profit of IDR 15.89 trillion, growing 2.5% yoy in 3M24.
This result grew in line with our FY24F estimate (25%).Interest Income grew 17.9% yoy, followed by Net Interest Income, which rose 9.7% yoy.

BBRI revised its FY24F Cost of Credit (CoC) guidance, which was better than the 3M24 realization. BBRI recorded an increase in CoC in 3M24 in line with food inflation, which caused a rise in NPL in one of BBRI’s most significant revenue

The Allowance for Impairment Losses (CKPN) increase is still lower than in the last two years. CKPN increased 2% QoQ to IDR 79.84 trillion in 3M24.

Current Account Savings Account (CASA) grew 7.8% yoy in 3M24. BBRI recorded total third-party funds of IDR 1,416 trillion (12.8% yoy) in 3M24.

BBRI has consistently recorded credit growth in the last six years. In 3M24, BBRI credit grew 11% yoy to IDR 1.182 trillion.

Using the Discounted Cash Flow method with a Required Return of 6.89% and Terminal Growth of 4.72%, we estimate BBRI’s fair value at 6,165 (14.64x expected P/E FY24F).

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