BBRI - FY23 earnings growth by 17.5% yoy

BBRI - FY23 results Bank Rakyat Indonesia (BBRI) FY23 net interest income remain grew at reasonable growth by 8.5% yoy to IDR135.18tn. PPOP growth at 16.7% yoy. Earnings remain recorded double-digit growth by 17.5% yoy to IDR60.1tn. Loan grew by 11.2% yoy, while TPF growth at 3.9% yoy and grew stronger on quarterly basis at 5.3% qoq. CASA flattish at 0.2% yoy, yet much better on yearly basis which grew 6.4% qoq. Key performance metrics showed another solid number. NIM at 7.95%, while credit cost and NPL was well managed with manageable CIR at 41.8%. (Source: Company). Comment: We like BBRI’s ’23 result. NII growth at 8.5% yoy should get an applause amid mounting interest expenses (60.6% yoy). Likewise, despite rising provisions (10.0% yoy), PPOP continue grew at strong rate (16.7% yoy), while earnings grew 17.5% yoy. In all, 23 earnings arrive above our and street forecast. On BS side, loan growth beating industry growth and arrive within ours forecast for BBRI ‘23F loan. On key metrics, NIM and CIR beating BBRI’s guidance with CoC and NPL arrive inline with BBRI’s ‘23F forecast. Maintain BUY with DDM TP of IDR6,390 (2.9x ’24F P/B), while BBRI is currently trading at 2.6x ‘24F P/B or at its +1SD historical mean.