BRIS - Eyeing gold business growth of 30% this year

BRIS - Eyeing gold business growth of 30% this year Bank Syariah Indonesia (BRIS) targets gold business growth of 30% in 2024. The company is optimistic that it can achieve this target considering the high public interest in investing in gold amidst uncertain geopolitical conditions. According to the bank, gold is still an investment instrument that is popular with the public because of its safe-haven nature and resistance to inflation. As of February 2024, the realization of BSI's gold financing business reached IDR3.7 tn. The bank is preparing several strategies to increase its gold business towards financing throughout 2024. One of them is facilitating gold services at more than 1,000 BSI outlets throughout Indonesia. (Source : Kontan) Comment : We like BRIS optimism and believe that the gold business growth opportunity is widely open. Despite only contributing a single digit to consumer financing, we think the segmentation will also act as an additional business portfolio for its customers. We also view that the soft landscape competition in this business will provide more benefit for the bank. Maintain BUY for BRIS with a DDM TP of IDR 2,970 (3.2x ‘24F PB).