Profit Prints Of IDR 15.98 Trillion, Majority Of Analysts Recommend Buy BRI Shares

Illustration - Bank BRI Building. (Photo: Doc. BRI)

JAKARTA PT Bank Rakyat Indonesia (Persero) Tbk or BRI managed to score a profit of IDR 15.98 trillion in the first quarter of 2024.

BRI's assets also grew 9.11 percent on an annual basis or year on year (yoy) to Rp1,989.07.

The increase in assets was driven by credit distribution which grew double digits. By the end of March 2024, BRI recorded that it had succeeded in disbursing loans amounting to Rp1,308.65 trillion or double-digit growth of 10.89 percent (yoy).

From the credit disbursement, 83.25 percent of them or Rp1,089.41 trillion are credit portfolios for the micro, small and medium enterprises (MSMEs) segment.

If detailed, all BRI loan segments recorded positive growth, the micro segment grew 10.51 percent yoy to IDR 622.61 trillion, the consumer segment grew 11.62 percent yoy to IDR 193.96 trillion, small and medium segments grew 8.06 percent yoy to IDR 272.85 trillion and the corporate segment grew 15.10 percent yoy to IDR 219.24 trillion.

BRI Share Purchase Recommendation Analyst

For this achievement, the majority of capital market analysts continue to place buy or buy recommendations for shares of PT Bank Rakyat Indonesia Tbk (BBRI). One of them is from Sucor Sekuritas.

Sucor Sekuritas analyst Edward Lowis in his latest research said that BBRI's net profit was relatively stable and supported by strong income so that it could cover reserves.

Edward also said Net interest income (NII) grew healthy 16 percent driven by strong credit growth. With this performance, Sucor gave a recommendation to buy for BBRI shares with a target price of IDR 6,400.

"Our target price is equivalent to 2.8x price to book in 2024 assuming a return on equity of 23 percent with a cost to equity of 12 percent," he said in an official statement, Sunday, May 5.

Meanwhile, Ciptadana Sekuritas analyst Erni Marsella Siahaan said that BRI's net profit (BBRI), which also fell 1.4 percent on a quarterly basis, was actually slightly below its estimate.

However, BRI's net profit (BBRI) is still in-line with an estimated consensus, which is equivalent to 24 percent of the full one-year estimate. However, Erni underlined that the BRI NIM will be affected by the increase in the benchmark interest rate.

The management of BRI (BBRI) itself has revised the target of 20 bps of NIM to 7.6 to 8 percent from the previous 7.8 to 8 percent.

Erni maintains the buy recommendation with a target price of IDR 7,000 per share. This price target itself is lower than the previous target of IDR 7,150 per share.

Previously, BRI President Director Sunarso expressed optimism that the company achieved double-digit credit growth in the middle of the high-interest rate era. As is known, until the end of the first quarter of 2024, the bank's Loan to Deposit Ratio (LDR) at the end of March 2024 was recorded at 83.28 percent.

Then in terms of capital, BRI is also able to maintain a strong capital ratio with a Capital Adequacy Ratio (CAR) of 23.97 percent.

"Currently we don't have a liquidity issue because it's still loose. We will continue to maintain such liquidity in a healthy manner and maintain double-digit credit growth," Sunarso said.

BRI is also optimistic that credit growth this year can be achieved according to the target set at the beginning of the year, namely double digits around 10 to 12 percent yoy.