BRIS - BSI Griya Financing Increases 8.36% in April 2024

BRIS - BSI Griya Financing Increases 8.36% in April 2024 Targets Young Generation Financing for home ownership is not only pursued by a number of conventional banks in the country but also sharia banks, one of which is Bank Syariah Indonesia (BRIS) or BSI through the KPR program entitled BSI Griya. Until April 2024, BSI Griya's financing was recorded to have increased by 8.36% on an annual basis (yoy), with a value of IDR53.4 tn. According to the bank, BSI Griya's financing targets young people so they can receive residential financing, especially their first residence. BSI Griya can be an attractive home financing option thanks to its financing scheme, fixed installments, and long-term. BSI residential financing varies greatly but is still dominant in house purchases in the range of IDR500 mn–IDR2 bn. The regional distribution of potential BSI KPR customers includes Jabodetabek, Medan, Bandung, Surabaya, and Makassar. (Source : Kontan) Comment : We believe the consumer loan segment will continue to play a crucial role in overall loan growth. Most of the demand is likely to come from the price tag range of IDR500mn–IDR1000mn. We expect loan repayment yields in this segment to be slower compared to other segments, such as corporate loans, as historically, the consumer segment has been more sensitive to the interest rate hike. What’s more, we also believe various promotions from developers and banks, as well as the latest government relaxations on the sector, will overall help the demand to remain growing significantly. Maintain BUY BRIS with a GGM TP of IDR 2,970 (3.2x ‘24F PB).