BRIS - Gold business soars 78.17% yoy in FY24

BRIS - Gold business soars 78.17% yoy in FY24 Bank Syariah Indonesia (BRIS) will optimize its precious metals business with the aim of enhancing public literacy on safe and easy gold investment. BRIS recorded a gold business consisting of gold pawning and gold installment reaching IDR12.8 tn, growing 78.17% yoy throughout 2024. BSI's Director of Sales & Distribution, Anton Sukarna, stated that the precious metals business will be optimized by BSI with the aim of increasing public literacy on safe and easy gold investments, especially amid the rampant scams and fraudulent investments promising high returns. "The value of gold, which is a safe haven, has proven to be unaffected by inflation that occurs every year," he said. Furthermore, he mentioned that gold prices continue to experience an upward trend with an average growth of 20%-30% per year. This has an impact on the demographics of BSI's gold business customers, particularly those who buy gold on installments, with around 50% coming from Generation Z and millennials. Anton then mentioned BSI's preparations, which are touted to soon run a gold service business, also known as a bullion bank. "In addition to gold installment products and gold pawning, BSI also provides gold deposit and gold trading services in preparation to become a bullion bank," he explained. (Source : Bisnis Indonesia). Comment : The government's strong support for the development of a gold bank aligns with BSI's strategic direction and presents a significant opportunity for the bank to contribute to national economic growth. BSI's strong growth in the gold business positions it to gain a significant market share in the Indonesian gold market. The bank focus on public education and its commitment to ethical and responsible gold investment can enhance its brand reputation and attract a loyal customer base. In all, BSI's performance in the gold business is impressive, and its strategic initiatives, combined with government support, position the bank for continued growth and success in this sector. Maintain BUY BRIS, GGM-based TP of IDR3,670, (3.4x ‘25F P/B).