BRI Reports Robust Q1 Profit, Drawing 'Buy' Recommendations from Analysts

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PT. Bank Rakyat Indonesia (Persero) Tbk (IDX: BBRI) reported a profit of IDR 15.98 trillion for Q1 2024, leading to a majority of analysts recommending a 'Buy' on BBRI shares. Analysts are optimistic about BBRI's performance, with a high price target of IDR 6,653 in the next 12 months. The company's net profit and revenues are robust, supported by a 16% increase in Net Interest Income due to strong credit growth. While quarterly net profit fell slightly below expectations, BBRI's credit disbursement and asset growth remain strong, with all loan segments showing year-over-year growth. BRI's management expresses confidence in sustaining double-digit credit growth despite high interest rates.

Positive

• Robust profit of IDR 15.98 trillion reported for Q1 2024

• Majority of analysts recommend a 'Buy' on BBRI shares

• High price target of IDR 6,653 in the next 12 months

• 16% increase in Net Interest Income due to strong credit growth

• Strong credit disbursement and asset growth with all loan segments showing YoY growth

• Management's confidence in sustaining double-digit credit growth

Negative

• Quarterly net profit fell slightly below expectations

• Price target lowered by some analysts from IDR 7,150 to IDR 7,000 per share

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.

For more information on BRI, please visit www.bri.co.id  

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SOURCE PT Bank Rakyat Indonesia Tbk (BRI)

FAQ

What was the profit reported by PT. Bank Rakyat Indonesia for Q1 2024?

PT. Bank Rakyat Indonesia reported a profit of IDR 15.98 trillion for the first quarter of 2024.

What is the analysts' recommendation on BBRI shares?

The majority of analysts recommend a 'Buy' on BBRI shares.

What is the high price target for BBRI shares in the next 12 months?

The high price target for BBRI shares in the next 12 months is IDR 6,653.

What was the increase in Net Interest Income for BBRI?

BBRI experienced a 16% increase in Net Interest Income due to strong credit growth.

What was the credit disbursement growth for BRI in Q1 2024?

BRI saw a 10.89% year-over-year increase in credit disbursement, with 83.25% allocated to the MSME segment.