BBRI - Remaining Covid-19 credit restructured amounting IDR67.5 tn

BBRI - Remaining Covid-19 credit restructured amounting IDR67.5 tn Bank Rakyat Indonesia (BBRI) recorded, the remaining credit restructuring affected by Covid-19 around IDR67.5 tn in Oct23. The size of the restructuring credit portfolio decreased to IDR 39.7 tn from the position in Dec22 of IDR 107.2 tn. According to BBRI, the bank has tightened the requirements for customers who could undergo Covid restructuring, so that the addition of new Covid restructuring was quite limited. This is an anticipatory step in responding to the plan to stop relaxing the Covid-19 restructuring in March 2024. (Source: Kontan). Comment: BBRI will continue to record lower credit restructuring and thus should be translated as better LAR in the following quarters. Steady asset quality improvement and carefully managed write off will resume BBRI loan book. This resulting to a better npl and earnings growth in ‘24F. We also believe BBRI will continue in a well shape condition, even after credit relaxation if fully lifted. Maintain BUY for BBRI, DDM TP of IDR6,390 (pegged at 2.9x ‘24F P/B).