BRIS - Profit in 2024 rises 22.83% yoy

BRIS - Profit in 2024 rises 22.83% yoy Bank Syariah Indonesia (BRIS) recorded a net profit of IDR7.01 tn in 2024. This realization grew by 22.83% yoy from IDR5.7 tn in 2023. The President Director of BSI, Hery Gunardi, mentioned that this growth is partly driven by financing that grew by 15.88% yoy, reaching IDR278 tn. "Fee-based income also experienced growth, and its growth was quite fantastic, with a double-digit increase of 32.58% yoy, reaching IDR5.51 tn." This allowed BSI to achieve a net profit of IDR7.01 tn," he said in the virtual presentation of BSI's 2024 financial performance. According to him, BSI's business is growing well and healthily because it is supported by a game-changing strategy that was successfully implemented last year. Hery mentioned that several strategic initiatives, such as the optimization of digital platforms, are beginning to yield results in driving the company's sustainable growth. (Source : Bisnis Indonesia) Comment : BRIS saw robust FY24 earnings growth (22.8% yoy, 10.9% qoq), mainly driven by a sharp drop in 4Q24 provisions (-76.0% qoq). In all, FY24F PATMI came in in line with street expectations and above ours for ‘24F net income for BRIS (105.9%/102.6%). Key profitability noted the same trend with most banks and the industry average, dropping to 5.66% vs. 5.82% in FY23. Yet, it is still within BRIS guidance (5.50%-5.86%) and in line with our ‘24F NI for BRIS (5.84%). Worth noting is that NI was improving throughout the quarters last year. Key risk metrics came in at a healthier figure with gross NPL of 1.90% vs. 1.97% in 9M24 and 2.08% in FY23 (BRIS ‘24F <2%) and credit cost sharply improved to 0.83% vs. 1.14% in FY23 (Sept 24: 0.97%). Maintain a BUY GGM-based TP of IDR 3,670 (3.4x ’25F P/B), while currently trading at 2.7x ‘25F P/B slightly above the average historical mean of 2.4x.