- Bank Rakyat Indonesia‘s (BRI) net interest income for the first quarter was reported at 35.85 trillion rupiah, surpassing analyst estimates of 34.66 trillion rupiah, despite a 1.8% decrease year-over-year.
- Earnings per share (EPS) for BRI stood at 91 rupiah, a decline from 105 rupiah compared to the previous year.
- BRI’s net income came in at 13.67 trillion rupiah, reflecting a 14% decrease from the same period last year, and falling short of the estimated 14.44 trillion rupiah.
- The current analyst ratings include 29 buy recommendations, 7 hold recommendations, and no sell recommendations.
Bank Rakyat Indonesia on Smartkarma
Independent analyst coverage on Smartkarma highlights positive sentiments towards Bank Rakyat Indonesia (BBRI IJ). Analyst Angus Mackintosh‘s research reports emphasize the bank’s unique exposure to micro and ultra-micro lending in Indonesia, anticipating growth to resume in 2025. With foreign ownership and valuations at 15-year lows, the bank’s management paints a relatively positive outlook on its microloan portfolio improvements. Additionally, strong growth in recoveries and a focus on corporate and consumer loans are driving loan growth, despite ongoing restructuring efforts that are expected to continue into 2025.
Furthermore, Mackintosh’s analysis suggests that Bank Rakyat Indonesia is in an ultra-attractive position, with favorable valuations and stable credit costs. The bank is expected to experience a stronger finish to the year, supported by continuing growth in micro recoveries that will drive fee income growth. Even though there may be a slight slowdown in loan growth in 2025, stable credit costs, rebounding earnings, and lower provisions are anticipated. Overall, Bank Rakyat Indonesia is showing signs of visibly turning the corner, as reflected in its improved 3Q2024 results and better performance in corporate and consumer lending, offsetting challenges in the microloan sector.
A look at Bank Rakyat Indonesia Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, PT Bank Rakyat Indonesia (Persero) Tbk is positioned well for long-term success. With a strong focus on providing dividends to its investors, the company has received a top score of 5 in this category. Additionally, Bank Rakyat Indonesia has scored highly in growth and resilience, with scores of 4 in both areas. This indicates the company’s potential for steady expansion and ability to withstand economic challenges.
Despite not scoring at the highest level in all categories, Bank Rakyat Indonesia‘s overall outlook remains positive, supported by its solid performance in key areas. With a balanced approach to value, growth, and financial strength, the company is well-positioned to deliver sustainable returns to its shareholders while maintaining stability in the face of market fluctuations. Investors looking for a reliable banking investment may find Bank Rakyat Indonesia an attractive option based on its strong dividend payouts, growth prospects, and resilience in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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