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BBRI
Contact our analyst achmadi

23% UPSIDE, BUY
5th July, 2022
Price Rp4,040
Target price Rp4960

​78.13% profit growth
As of 1Q22, BBRI recorded a Net Profit of IDR 12.2 trillion, up 78.13% yoy from IDR 6.86 trillion in 1Q21. It was driven by efficiency in operating expense and provision that lead BBRI’s 1Q22 operating expense and provision decreased 12.6% yoy and 6.7% yoy respectively. These efficiencies include through the success of digital transformation and the increasing proportion of CASA. As of 1Q22, CASA grew 16% yoy to IDR. 716.8 trillion while cost of fund down -0.43% yoy to 1.97%. We estimate BBRI will increase its net profit in 2022, up 56.16% from IDR 30.75 trillion to 48.53 trillion.
 
Strong Micro loan growth
Loans were up 8.72% YoY in 1Q22. The growth was driven by Micro Loans, which grew 15% YoY and the highest contribution came from BBRI’s micro loan product, KUR, which grew 49.6 % YoY. Other loans increased too. Small Commercial, Consumer, and Medium, grew 8.33%, 4.69%, and 2.51% respectively. On the other hand, corporate loans declined -0.34% from 1Q2021. We predict total loans will grow 10.25% in 2022 with Micro loans growing fastest at 14.82% compared to last year.

Slightly higher NPLs
There was a small increase in NPLs in 1Q22, which increased from 3.12% in the first quarter of 2021, to 3.15% in March 2022. The Corporate Segment contributed the most to NPLs, at 5.89%. Small, Medium, Consumer, and Micro, NPLs are at 4.39%, 3.95%, 1.93%, and 1.77% respectively. The NPL growth was caused by higher inflation in March 2022 compared to March 2021. According to BPS, inflation in March 2022 was 0.66%, while in March 2021, it was 0.08%. With the improvement of the Indonesian economy, we estimate the NPL ratio will decline again to 1.80% in 2022.

Valuation: 23%, Upside, Buy
Based on our DDM Valuation, we have a target price within one year of IDR 4,960 or trading at 2.4x PBV which gives 23% potential upside, Buy.
Download full report here
Previously
​BBRI Feb2022
​​BBRI Jan2022
​BBRI Nov2021
​BBRI Aug2021
​BBRI Jun2021
​BBRI Feb2021
​BBRI Nov2020
​BBRI Aug2020
​BBRI May2020
​BBRI Jan2020
​BBRI Sep2019
PT. Binaartha Sekuritas

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