BRIS - Launches BSI Gold, set to become the foundation of a Bullion Bank

BRIS - Launches BSI Gold, set to become the foundation of a Bullion Bank Bank Syariah Indonesia (BSI) collaborates with gold producer Hartadinata Abadi to launch a gold product named BSI Gold. This product can be obtained through BSI's Cicil Emas feature. Not just a regular product launch, BSI's President Director Hery Gunardi revealed that this collaboration could mark the beginning for BSI to operate a bullion bank business. Where the official regulations for that business have just been released in POJK 17/2024. "On the other hand, this (product) might become the precursor to what is called a Bullion Bank. We see the new POJK as very liberal," said Hery. Hery recounted that currently, when the bank's limit is only 150 grams, many customers are complaining. This is because he sees a significant interest from customers in buying gold in large quantities. "So later we will provide financing for gold, so the collateral will be gold. Right now it's just pawned, but later it can be financing." Then it will be entrusted to a custodian, so we can also become a custodian bank. If someone wants to deposit gold, we will do that," explained Hery. Unfortunately, when further confirmed after the event, Hery was still hesitant to reveal when BSI would apply for a business license for the bullion bank. (Source : Kontan) Comment : Despite the focus on the consumer segment, the potential growth of BRIS's gold business should not be underestimated. The bank's consistent strong performance in this segment, coupled with its plans to develop a bullion bank business, could emerge as an additional growth catalyst. We maintain our "BUY" recommendation for BRIS, with a (GGM) target price of IDR3,670 based on a 2025 price-to-book (P/B) ratio of 3.4x. The current trading price of 2.7x the 2025 P/B is slightly above the historical average of 2.4x.