BBRI - KTA analyst meeting and comment on 1H23 result

BBRI - KTA analyst meeting and comment on 1H23 result Bank Rakyat Indonesia (BBRI) reporting its 1H23 financial performance, whereas earnings at IDR29.42 tn (18.7% yoy), arrives above ours and street expectation at a run-rate of 50.7%/50.2%, while on quarterly basis, 2Q23 earnings is 2.39% above KBVs 2Q23F for BBRI (2Q23 PATMI growth at 10.3% yoy). Growth was mainly driven by other non-interest (22.9% yoy) and manageable opex as well as provisions sharp drop (-18.3% yoy). Mounting CoF has dragged interest income growth at 11.4% yoy and resulting to a soft NII growth at 1.4% yoy. Loan grew flattish qoq (1.9% yoy), yet stronger on yoy basis (8.8% yoy). We believe BBRI likely to achieve our ‘23F loan growth for BBRI at 10.1% (BBRI ‘23F guidance 10%-12%). On the liquidity side, TPF grew by 9.5% yoy helped by strong growth from CA (24.3% yoy) and hence made CASA portion improves by 40bps to 65%, or 10.1% yoy higher to IDR815.42 tn. On key metrics performance, NIM and CoC arrives within ‘23F guidance at 7.85% (7.7%-7.9%) and 2.26% (2.2%-2.4%), while improving asset quality has made NPL improves by 31bps to 2.95% from 3.26% in 1H22 and closer to ‘23F upper range target at 2.8%. (Source : Company)