BRIS : Gross NPF is Targeted Improved Below 2% in 2024

13 Feb 2024 Valdy

BRIS’s net profit grew 33.88% yoy to IDR 5.7 trillion in FY23. Net Margin Income of IDR 16.17 trillion grew (+3.89% yoy) in 2023.Pre Provision Operating Profit (PPOP) grew (+8.70% yoy) to IDR 10.21 trillion in the same period.

BRIS recorded financing growth of (+15.70% yoy) to IDR 240.32 trillion in FY23.This growth was supported by growth in consumer financing (+15.66% yoy), which contributed 54.32% to total financing in FY23.

Consistent record growth in Return on Equity (ROE) and Return on Assets
(ROA) in the last three years.

The potential for growth of sharia banking in Indonesia. Asia Pacific has a
market share of around 20.7% in global Sharia banking. Indonesia contributed
about 13% of this amount and was also the second highest contributing country
after Malaysia (62.7%).

BRIS targets the amount of fee based income to be equivalent to peers. As of
December 2023, BRIS has a fee-based ratio of 15.80% vs. peers’ 21.06%-24.21%.

Using the Discounted Cash Flow method with a Required Return of 12.45%
and Terminal Growth of 6.39%, we estimate the fair value of BRIS at
2,970 with a potential upside of 28.00%.

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