BBRI - Inline FY24 earnings

KBVS Update
Friday, 14 February 2025

BBRI - Inline FY24 earnings
(Maintain BUY; TP: IDR5,390)

* BBRI delivered 10.0% yoy revenue growth despite a challenging year marked by elevated funding costs. While NII growth was constrained by these costs, strong fee income and recovery drove 9.6% yoy PPoP growth. In all, FY24 net income arrives in line with ours (100%) and street expectation (99%). Despite the moderation in FY24 loan growth (7% yoy), BBRI's prudent approach to lending, prioritizing asset quality amidst rising credit cost concerns, is commendable.

* NIM moderated slightly to 7.74%, within management guidance and our projection, while aligning with industry trends. NPLs at 2.78% beat expectations and guidance, though credit costs at 3.23% a tick missed vs 3.20%. Additionally, CIR remained within guidance at 41.59%.

* Key 2025 growth drivers include: (a) improved micro segment loan growth with higher graduation rates (b) stronger deposit growth (c) softening funding costs (d) well-controlled AQ. Robust fees and commissions, further recovery, and manageable costs will also contribute.

* Maintain BUY. We adjust our RR and MRP assumption, resulting TP to IDR 5,390 (9.6% lower) reflecting recent stock pressure. This aligns with consensus revisions (down 20.5%). Our TP is pegged at 2.5x '25F P/B, while currently trading at 1.8x ‘25F P/B, or slightly above its -1SD of 1.7x.

Regards,
Akhmad Nurcahyadi - KBVS Research team