Company Update  /  Banks  /  BRIS IJ  /   Click here for full PDF version 
 Author(s):  Anthony  ;  Jovent Muliadi 

• BRIS ' 1Q24 net profit of Rp1.7tr (+17% yoy) was in-line driven by lower-than-expected provision. NII/PPOP growth came at +3/4% yoy.
• NIM contracted by -60bp yoy to 5.4% amid steep increase in CoF and below its guidance of 5.5-5.9%.
• Loan growth was in-line at +15% yoy while LAR improved to 8.7% (vs. 11.8/9.2% in 1Q23/4Q23). Maintain Buy.

1Q24 results: in-line results on lower provision
BRIS posted 1Q24 net profit of Rp1.7tr (+17% yoy), in-line with ours/consensus FY24F estimates at 26%. PPOP growth was decent (+4% yoy) on the back of decent NII growth (+3% yoy) and robust non-II growth (+22% yoy) but offset with higher opex (+9% yoy). Provisions dropped -28% yoy, resulted in CoC of 0.9% in 1Q24 (vs. 1.4/1.1% in 1Q23/FY23) lower than its FY24F guidance of 1-1.3%.
NIM was slightly below on steep increase in CoF
NIM fell to 5.4% in 1Q24 vs. 6/5.8% in 1Q23/FY23, below its FY24F target of 5.5-5.9% largely due to steep increase in CoF. However, this was offset with higher LDR ratio of 83% in 1Q24 (vs. 79/82% in 1Q23/4Q23). Deposit rose +10% yoy (+1% qoq) supported by both TD (+12% yoy/flat qoq) and CASA (+9% yoy/+2% qoq).
In-line loan growth with stellar improvement in asset quality
Loan growth was robust at +15% yoy (+3% qoq) and came in-line with FY24F its target of c.15%. Concurrently, NPL stood at 2% in 1Q24 vs. 2.4/2.1% in 1Q23/4Q23 while LAR significantly improved by -310bp yoy/-50bp qoq to 8.7% with LAR coverage at 46% vs. 38/44% in 1Q23/4Q23.
Maintain Buy with unchanged TP
We maintain our Buy rating and TP unchanged as we await more disclosure from upcoming earnings call. BRIS is currently trading at 2.8x FY24F P/B (vs. 3Y average of 2.2x) and 18.2x FY24F P/E (vs. 3Y average of 16.1x). Risk is weak loan growth and NIM compression from tight liquidity.


Sumber : IPS