BBRI - 9M22 net profit grew 106.1% yoy

PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) just released its 9M22 results. Net interest income reached IDR96.51 tn, while net income for the same period at IDR39.3 tn. Loan Deposits Ratio at 88.92%, NPL gross 3.14% and NIM 7.23%. (Source: Investor Daily). Comment: We like BBRI continuing earnings results. 9M22 net income surged 106.1% yoy to IDR39.3 tn on solid net interest income and declining interest expense and beats our and consensus expectation at 87.6% and 83.7%. On ratio metrics, liquidity remain ample at 88.9% (83.05% in 9M21) and has surpassing our 2022F forecast at 86.5%. Asset quality improved from 3.14% to 3.29% in 9M21 and better than our expectation on FY22F at 3.0%. On profitability, NIM at 7.23% was 37bp higher yoy. We think BBRI will continue to report solid 4Q22 earnings. Key for earnings growth next year will come from higher earnings asset yield and our expectation on stable NIM and loan growth as well as provisions expenses.