BRIS - FY24 earnings; inline vs street and above our forecast

KBVS Update
Monday, 10 February 2025

FY24 earnings; inline vs street and above our forecast
(Maintain BUY; TP: IDR3,670)

* BRIS delivered strong FY24 earnings growth (22.8% yoy, 10.9% qoq), driven by a sharp decline in 4Q24 provisions (-76.0% QoQ).  Earnings exceeded our forecast and met market expectations (105.9%/102.6%).

* Financing growth surged to 15.9% yoy (4.3% QoQ), outpacing industry and BRIS's guidance of ± 15% yoy (KBVS '24F: 14.7% yoy). Despite liquidity constraints, TPF grew impressively at 11.5% yoy (8.7% qoq), fuelled by a 17.6% yoy surge in wadiah deposits.

* NIM improved consistently (1Q24: 5.38% vs FY24: 5.66%), closely aligned with our forecast and fell comfortably within the bank's management guidance range of 5.50% to 5.86%. Key Risk metrics remained healthy. BRIS's FY25F guidance outlines the following key targets: (1) Financing growth range of 14.0%-16.0% yoy, (KBVS ‘25F: 14.9% yoy); (2) NIM range of 5.5%-5.9% (KBVS ‘25F; 5.7%) and (3) CoC at below 1.0% (KBVS ‘25F: 0.80%).

* Maintain BUY, GGM-based TP of IDR3,670 (3.3x ‘25F PB), while currently trading at 2.7x ’25F PB or above its average historical mean of 2.4x.

Regards,
Akhmad Nurcahyadi - KBVS Research