BMRI
Contact our analyst achmadi
30% UPSIDE, Buy
16th November, 2022
Price Rp10,000
Target price Rp13,000
59.41% Profit Growth
As of 9M22, BMRI recorded a Net Profit of IDR 30.65 trillion, up significantly by +59.41% YoY from IDR 19.23 trillion in 9M21. Growth was supported by higher Net Interest Income +20.01% YoY and massive growth from Net Premium Income which increased +50.46% YoY. We estimate BMRI will grow its Net Profit +57.25% from IDR 28.03 trillion to IDR 44.07 trillion in FY22 .
Solid Loan growth
BMRI recorded solid consolidated loan growth of +14.28% YoY in 9M22. The growth was driven by SME Loans, which grew +25.76% YoY. Other segments increased too. Commercial, Micro, Corporate, and Consumer grew +19.43%, +17.94%, +16.52% and +15.64% respectively. Thanks to growth from the F&B industry which become the biggest contributor, wholesale lending grew +45% YoY, or IDR 15 trillion from 9M21. We predict Consolidated Total Gross Loans will grow +14.51% in FY22 with Bank-Only Loans will grow +12.15% YoY, driven by SME Loans growing the fastest at +13.72% YoY compared to last year, and Non-Bank Loans will grow +23.32% YoY.
Asset Quality Improved
BMRI improved its asset quality with the consolidated gross NPL ratio declining -72 bps YoY to 2.24% in 9M22 and for bank only the ratio decreased -80 bps yoy to 2.26%. Of the five segments that are served by BMRI, only one, Micro lending, had a NPL ratio increase from 1.20% in 9M21 to 1.22%, but quarterly, it decreased -3 bps. The NPL ratios for Corporate, SME, Consumer, and Commercial loans were 0,97%, 1.16%, 1.89% and 6.40% respectively. We forecast BMRI’s consolidated gross NPL will decline again to 2.09% in FY22 from 2.81% in FY21 and for bank only, it will decrease to 2.11% in FY22 from 2.72% in FY21.
Valuation: 30% Upside, Buy.
Based on our DDM Valuation, we have a target price within one year of IDR 13,000 or trading at 2,7x PBV which gives 30% potential upside, Buy
As of 9M22, BMRI recorded a Net Profit of IDR 30.65 trillion, up significantly by +59.41% YoY from IDR 19.23 trillion in 9M21. Growth was supported by higher Net Interest Income +20.01% YoY and massive growth from Net Premium Income which increased +50.46% YoY. We estimate BMRI will grow its Net Profit +57.25% from IDR 28.03 trillion to IDR 44.07 trillion in FY22 .
Solid Loan growth
BMRI recorded solid consolidated loan growth of +14.28% YoY in 9M22. The growth was driven by SME Loans, which grew +25.76% YoY. Other segments increased too. Commercial, Micro, Corporate, and Consumer grew +19.43%, +17.94%, +16.52% and +15.64% respectively. Thanks to growth from the F&B industry which become the biggest contributor, wholesale lending grew +45% YoY, or IDR 15 trillion from 9M21. We predict Consolidated Total Gross Loans will grow +14.51% in FY22 with Bank-Only Loans will grow +12.15% YoY, driven by SME Loans growing the fastest at +13.72% YoY compared to last year, and Non-Bank Loans will grow +23.32% YoY.
Asset Quality Improved
BMRI improved its asset quality with the consolidated gross NPL ratio declining -72 bps YoY to 2.24% in 9M22 and for bank only the ratio decreased -80 bps yoy to 2.26%. Of the five segments that are served by BMRI, only one, Micro lending, had a NPL ratio increase from 1.20% in 9M21 to 1.22%, but quarterly, it decreased -3 bps. The NPL ratios for Corporate, SME, Consumer, and Commercial loans were 0,97%, 1.16%, 1.89% and 6.40% respectively. We forecast BMRI’s consolidated gross NPL will decline again to 2.09% in FY22 from 2.81% in FY21 and for bank only, it will decrease to 2.11% in FY22 from 2.72% in FY21.
Valuation: 30% Upside, Buy.
Based on our DDM Valuation, we have a target price within one year of IDR 13,000 or trading at 2,7x PBV which gives 30% potential upside, Buy
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