BBRI - Restructured loan amounting IDR83.2 tn in Jun23

Bank Rakyat Indonesia (BBRI) recorded total restructured loan amounting IDR83. tn in the period of Jun23, or around 30% from total loan and sharply declined from its highest is Sept20 amounting IDR25 tn. Despite became healthier, BBRI will continue to strengthened its LAR and targeted to reached in the range of single digit (as Jun23: 15.1%). (Source : Bisnis Indonesia) Comment : BBRI’s LAR target is achievable, in our view, as recovery momentum impact on SME’s market will likely to remain in place. That said, we expect better asset quality stable improvement will overall managed provisions to continue softened with better NPL and at the same time supporting BBRI’s earnings growth in the following quarters.