BBRI - Reveals strategies to boost performance this year

BBRI - Reveals strategies to boost performance this year Bank BRI (BBRI) is responding to a sharp January 2025 profit drop (down 58.33% yoy) with strategic improvements. In the information disclosure to the Indonesia Stock Exchange (IDX), BRI management stated that they have implemented improvements in credit selection, Key Performance Indicators (KPIs), and portfolio management to ensure growth of good quality and optimal profitability. Key measures include: enhanced credit scoring, digitalized risk monitoring, strengthened risk management, selective loan restructuring, and significantly increased provisioning. Regarding the provisioning burden or impairment that increased from IDR1.95 tn in January 2024 to IDR5.63 tn in January 2025, BRI management detailed that IDR5.48 tn of it falls under the financial asset category of loans and financing. Meanwhile, IDR147 bn falls outside that category (non-loan). (Source : Bisnis Indonesia) Comment : This comprehensive strategy suggests BRI's proactive response to recent performance pressures, prioritizing long-term stability and profitability through enhanced risk controls and operational improvements. The elevated provisioning levels, while impacting short-term profitability, demonstrate a commitment to balance sheet strength in the face of economic uncertainties. Maintain BUY, with SOTP-based TP of IDR 5,390 (2.5x '25F P/B).