{"id":3444,"date":"2024-06-03T20:34:20","date_gmt":"2024-06-03T13:34:20","guid":{"rendered":"https:\/\/thaipropertynews.com\/feeds\/?p=3444"},"modified":"2024-06-03T20:34:20","modified_gmt":"2024-06-03T13:34:20","slug":"bri-receives-analysts-buy-recommendation-as-msmes-financing-strategy-drives-growth","status":"publish","type":"post","link":"https:\/\/thaipropertynews.com\/feeds\/?p=3444","title":{"rendered":"BRI Receives Analysts Buy Recommendation as MSMEs Financing Strategy Drives Growth"},"content":{"rendered":"

JAKARTA, Indonesia<\/span>, June 3, 2024<\/span> \/PRNewswire\/ — PT. Bank Rakyat Indonesia (Persero) Tbk (IDX: BBRI) remains Indonesia’s<\/span> leading MSME (Micro, Small and Medium Enterprise) financier, with its credit portfolio growing to IDR 1,308.65 trillion<\/span> by March 2024<\/span>, up 10.89% year-on-year. Over 83% of this, or IDR 1,089.41 trillion<\/span>, was allocated to MSMEs.<\/p>\n

\n

<\/a>
Jakarta (06\/03)- BRI’s MSME Financing Strategy Spurs Growth, Receives ‘Buy’ Recommendation from Analysts.<\/span><\/p>\n<\/div>\n

Supported by an extensive branch network and empowerment initiatives, BRI has achieved an impressive Return on Equity (ROE) and maintained a Net Interest Margin (NIM) consistently above 7%, exceeding the industry average of around 6%. “Therefore, we expect the ROE to be maintained above 20%, relatively in line with the average of other major banks,” quoted from Edward Lowis<\/span> of Sucor Securities’ research on Monday (5\/27\/2024).<\/p>\n

BRI’s ultra-micro portfolio through Pengadaian and PNM is on a growth trajectory, with this segment achieving higher margins and outpacing typical bank credit growth. “The total asset contribution of these subsidiaries has reached almost 10% of the total in the first quarter of 2024 (compared to 6% in 2020), while the contribution to net income has also grown to 14% of the total (compared to 10% in 2022),” he wrote.<\/p>\n

Edward acknowledges challenges in managing BRI’s asset quality but expects moderate revenue growth of 5% to 10% YoY in 2024 and 2025. He expects BBRI to maintain above-average NIM and growth due to its dominance in microloans. “Adequate loan loss coverage and a strong capital position will help the bank weather near-term challenges,” he added. Therefore, Sucor Securities recommends buying BBRI shares with a target price of IDR 6,400<\/span>, reflecting a 2.8x PBV for 2024, based on a sustainable ROE of 23% and a cost of equity of 12%.<\/p>\n

Similarly, Jayden Vantarakis of Macquarie has a target price of IDR 7,100<\/span> for BBRI shares, while Victoria Venny<\/span> of MNC Securities has a Buy rating with a target price of IDR 6,300<\/span>. A Bloomberg consensus of 35 analysts sets a 12-month price target of IDR 6,175<\/span>, with 33 analysts unanimously recommending a buy on a bullish outlook.<\/p>\n

BRI’s Finance Director Viviana Dyah Ayu R.K<\/span>. said management’s focus is to ensure the company can grow better and healthier in the long run, even if it requires small corrections in the short run. “For long-term shareholders, the refinements and improvements we are making now should provide greater benefits.”\u00a0<\/p>\n

For more information on BRI, please visit www.bri.co.id<\/a><\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

JAKARTA, Indonesia<\/span>, June 3, 2024<\/span> \/PRNewswire\/ — PT. Bank Rakyat Indonesia (Persero) Tbk (IDX: BBRI) remains Indonesia’s<\/span> leading MSME (Micro, Small and Medium Enterprise) financier, with its credit portfolio growing to IDR 1,308.65 trillion<\/span> by March 2024<\/span>, up 10.89% year-on-year. Over 83% of this, or IDR 1,089.41 trillion<\/span>, was allocated to MSMEs.<\/p>\n

\n

<\/a>
Jakarta (06\/03)- BRI’s MSME Financing Strategy Spurs Growth, Receives ‘Buy’ Recommendation from Analysts.<\/span><\/p>\n<\/div>\n

Supported by an extensive branch network and empowerment initiatives, BRI has achieved an impressive Return on Equity (ROE) and maintained a Net Interest Margin (NIM) consistently above 7%, exceeding the industry average of around 6%. “Therefore, we expect the ROE to be maintained above 20%, relatively in line with the average of other major banks,” quoted from Edward Lowis<\/span> of Sucor Securities’ research on Monday (5\/27\/2024).<\/p>\n

BRI’s ultra-micro portfolio through Pengadaian and PNM is on a growth trajectory, with this segment achieving higher margins and outpacing typical bank credit growth. “The total asset contribution of these subsidiaries has reached almost 10% of the total in the first quarter of 2024 (compared to 6% in 2020), while the contribution to net income has also grown to 14% of the total (compared to 10% in 2022),” he wrote.<\/p>\n

Edward acknowledges challenges in managing BRI’s asset quality but expects moderate revenue growth of 5% to 10% YoY in 2024 and 2025. He expects BBRI to maintain above-average NIM and growth due to its dominance in microloans. “Adequate loan loss coverage and a strong capital position will help the bank weather near-term challenges,” he added. Therefore, Sucor Securities recommends buying BBRI shares with a target price of IDR 6,400<\/span>, reflecting a 2.8x PBV for 2024, based on a sustainable ROE of 23% and a cost of equity of 12%.<\/p>\n

Similarly, Jayden Vantarakis of Macquarie has a target price of IDR 7,100<\/span> for BBRI shares, while Victoria Venny<\/span> of MNC Securities has a Buy rating with a target price of IDR 6,300<\/span>. A Bloomberg consensus of 35 analysts sets a 12-month price target of IDR 6,175<\/span>, with 33 analysts unanimously recommending a buy on a bullish outlook.<\/p>\n

BRI’s Finance Director Viviana Dyah Ayu R.K<\/span>. said management’s focus is to ensure the company can grow better and healthier in the long run, even if it requires small corrections in the short run. “For long-term shareholders, the refinements and improvements we are making now should provide greater benefits.”\u00a0<\/p>\n

For more information on BRI, please visit www.bri.co.id<\/a><\/p>\n

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