BMRI’s net profit of 9M24 grew 7.6% yoy to 78% of our FY24 estimate. BMRI recorded a net profit of IDR42 trillion (+7.6% yoy) in 9M24.

Wholesale Business remains the highest compared to peers. BMRI recorded a total credit of IDR1.6 trillion, increasing by 20.8% yoy in 9M24.

Current Account Saving Account (CASA) grew by 15% in 9M24. BMRI recorded CASA of IDR1.2 trillion (+15% yoy) in 9M24, with a CASA ratio of 73.8% (+12 bps) yoy.

Non-Performing Loans (NPL) fell 36 bps yoy to 1.13 in 9M24. This achievement also continues the downward trend in NPL in the last three years (NPL of (2.72 in FY21, 1.92 in FY22, and 1.19 in FY23).

BMRI’s credit growth is targeted at 16%-18% in FY24F.Several factors, such as improving domestic consumption, the realization of private and government investment, a continuation of National Strategic Projects. BMRI’s strong position in the wholesale segment allows BMRI to optimize these positive catalysts.

Using the Discounted Cash Flow method with a Required Return of 10.52% and Terminal Growth of 3.39%, we estimate BMRI’s fair value at 7,900 (12.37x expected P/E). Therefore, we still give BMRI a buy rating with a potential upside of 18.77%.

By PHINTRACO SEKURITAS | Research
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