BRIS - Net profit soars 21.59% yoy in 9M24

BRIS - Net profit soars 21.59% yoy in 9M24 Bank Syariah Indonesia (BRIS), continued its strong performance through September 2024. The bank's net profit soared 21.59% yoy, driven by a 4.56% rise in revenue to IDR13.45 tn following profit sharing. Operational expenses also decreased by 8.26% to IDR6.68 tn, down from IDR7.28 tn, thanks in part to a 25.44% reduction in the bank's reserve burden to IDR1.69 tn. BSI's financing disbursement reached IDR266.46 tn, up from IDR239.69 tn at the end of 2023. This growth was accompanied by an improvement in credit quality, with the gross non-performing financing (NPF) ratio improving from 2.21% to 1.97%. (Source : Kontan) Comment: We're impressed with BRIS's solid third-quarter earnings, which highlight the bank's growth potential. Continued strong loan growth in the anticipated low-interest rate environment will be key. We believe BRIS is well-positioned to capitalize on the significant growth potential within the Syariah market. The bank's asset quality (AQ) is expected to remain manageable, contributing to further profit growth in 2025. We maintain our BUY rating on BRIS and are currently updating our financial model to reflect a 2025 valuation with a higher target price based on the Gordon Growth Model.