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BBRI
Contact our analyst Lingga

8% UPSIDE, Hold
20th November 2020
Price Rp4040
Target price Rp4350

​Higher net profit
In 3Q20, BBRI recorded a net profit of 3.8 trillion, up by 102.8% QoQ, with growth coming from  Net Interest Income which increased by 26% QoQ. PPOP rose 82% QoQ, due to a recovery in loan repayments and lower credit costs which are expected to decrease in the range of 3.2%. We estimate a Net Interest Margin of 5.7% by the end of the year.

Credit growth slowed
Loan growth slowed to 3.2% YoY. This slower growth was caused by the micro-segment which slowed to 8.9% YoY. Micro is still the main driver of credit growth. Consumers loans grew 3.8% YoY, Small Commercial 4.6% YoY, Medium -0.5% YoY, Non-BUMN Corporations 1.5% YoY, and BUMN -14.8% YoY. The ultra-micro segment experienced an increase from 3Q20 as there is a government loan subsidy for these loans, of IDR 10 million.

Lower Restructured loan target
As of September 30, 2020, BBRI has restructured loans worth IDR 193.7 trillion or 23% of total loans. The restructured loans came from the micro-segment, 40%, the small commercial segment 39%, and the corporate segment 8%. At the end of the year, BBRI expects the total amount of debt restructuring to reach IDR 200 trillion which is lower than the previous target of IDR 213 trillion, due to the economic recovery and the easing of the PSBB.

Valuation: 8%, Upside, Hold.
Based on our DDM Valuation, we have a target price within one year of IDR. 4350 or trading at 2.2x PBV which gives 8% potential upside, Hold.
Download full report here
Previously
​BBRI Aug2020
​BBRI May2020
​BBRI Jan2020
​BBRI Sep2019
PT. Binaartha Sekuritas

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