BRIS – Net profit soaring 33.8% yoy

BRIS – Net profit soaring 33.8% yoy Bank Syariah Indonesia (BRIS) again recorded positive performance throughout 2023, whereas earnings grew by 33.8% yoy. The increase in profit was in line with the growth in net sharia income which was increased by 3.88% yoy to IDR16.1 tn while commission-based income also rose 12.1% yoy to IDR4.16 tn. In the same period, financing distributed by BSI was also recorded a higher number by 15.7% yoy to IDR 240.3 tn. On the liabilities side, TPF grew by 12.3% yoy. (Source: Kontan) Comment: In all, ’23 earnings arrive above ours and consensus expectation at a run rate of 108%/108%. Financing disbursed also surpassing our ‘23F for BRIS BY 2.6%. We also like BRIS achievement on its TPF growth which confirming the continuing ample liquidity on the syariah market. Worth noting that the growth was far above conventional bank loan growth as well as average banks under our radar growth. We believe 2024 will become another year for BRIS, as the huge potential industry growth and the untapped potential market will continue underpin BRIS’s earnings growth. Maintain BUY with GGRM TP of IDR2,050 (2.2x ’24F P/B), currently trading at 1.8x ‘24F P/B, slightly above its -1SD historical mean.