BBRI - Inline 7M25 bank only earnings

BBRI - Inline 7M25 bank only earnings
(Maintain BUY; TP: IDR4,470)

* Pressure on BBRI's earnings continues, with a 9% yoy decline in 7M25 due to flat top-line growth. However, YTD net income is on track (KBVS: 49.9% / Cons: 48.9%). Total loans grew 5.3% yoy. Total TPF rose 5.3% yoy, driven by CASA (9.3% yoy).

* While net interest margin is under pressure, it remains manageable, steady above 6%. We are encouraged by the 7M25 cost of credit * (CoC) achievement of 3.3%. This figure, while *still slightly above BBRI's 2025 target range of 3.0-3.2%, has already surpassed our own more conservative forecast of 3.4%.

* Following a period of significant earnings recovery and a compelling entry point, foreign ownership of BBRI has shown a marginal improvement to -0.84% YTD25 (vs YTD24 of around -2.62%). This comes despite the bank remaining the least-owned on a yoy basis, with a -3.9% change compared to the peer average of -1.7%.

* Despite the ongoing ‘25F earnings concern, the bank's strong and the slim YTD capital gain continue creates a notable divergence between the stock's intrinsic value and its current trading price. Consequently, even after a recent short-term rally, BBRI presents a highly attractive proposition for value-oriented investors. Maintain BUY BBRI GGM-based TP IDR4,470 (2.1x ‘25F P/B), currently (1.9x) slightly below -1SD of 2.0x ‘25F P/B.

Regards,
Akhmad Nurcahyadi - KBVS Research team