BRIS - Aims for a profit of IDR7 tn

BRIS - Aims for a profit of IDR7 tn Bank Syariah Indonesia (BRIS) has aspirations to become the largest sharia bank in the world, like Al-Rajhi Bank from Saudi Arabia. This three-year-old bank has also consistently improved its performance, especially in terms of profitability. BSI President Director Hery Gunardi said that, in an effort to strengthen the country's economy, BRIS, as the 5th largest bank in Indonesia, continues to achieve impressive performance despite challenging conditions. In the March 2024 period, BSI assets will grow by 14.25% annually to IDR358 tn. Then, financing grew sustainably by 15.89% (yoy) to IDR247 tn, third-party funds grew 10.43% to IDR297 tn, and profits grew by 17.07% to IDR1.71 tn. When compared with all banks in Indonesia, BRIS's profit growth in that period was the largest. "It is hoped that this year's profit will reach more than IDR7 tn," said Hery Gunardi. (Source: Investor Daily) Comment: We like BRIS optimism to book another double-digit growth in ‘24F, amid the continuing uncertainty and high interest rate environment. The management's ‘24F earnings expectation at IDR7 tn is around 5.83% above our ‘24F PATMI forecast for BRIS of IDR6.6 2tn. We believe the growth will continue to be underpinned by steady margin income growth and stable, healthy asset quality. Maintain BUY on BRIS with a GGM TP of IDR2,970 (3.2x ‘24F PB).