BRIS - Aims to sustain positive performance with strategic expansion

BRIS - Aims to sustain positive performance with strategic expansion Bank Syariah Indonesia (BRIS) is confident in its ability to maintain its strong performance since its establishment in February 2021. BRIS Sales & Distribution Director Anton Sukarna outlined four key strategies to drive future growth. First, BRIS seeks to expand its market reach by targeting younger demographics and individuals who value conformity. Second, the bank aims to deepen its market penetration by introducing innovative sharia investment products, such as gold. Third, BRIS will focus on strengthening its transactional base by promoting daily customer usage of its digital channels, including BRIS Mobile and ATMs. Finally, the bank will prioritize digital transformation to enable 24/7, borderless customer service. To enhance accessibility, BRIS is actively increasing the number of BRIS QRIS and EDC merchants. As of August 2024, the bank had over 392 thousand BRIS QRIS merchants and 3,305 EDC merchants. BSI's largest customer segment remains the payroll base, with approximately 2 mn customers. (Source : Kontan) Comment : BRIS's four strategic initiatives position the bank for sustained growth. We anticipate that the expansion of the transactional base through e-channels will be a key driver of near-term success. The bank's recent achievement of reaching 392k BRIS QRIS merchants is indicative of its strategic execution and strong momentum. Furthermore, BRIS's 8M24 earnings performance aligns with our full-year 2024 forecast, reinforcing our confidence in the bank's financial trajectory. We maintain a BUY rating for BRIS with a GGM TP of IDR2,970 (pegged at 3.2x ‘24F P/B).