BBRI Records the Highest Net Profit in the Banking Sector – What’s Next for Its Stock?

PT Bank Rakyat Indonesia Tbk. (BBRI) has posted the highest consolidated net profit among major banks in Indonesia. According to its 2024 financial report, the bank’s net profit attributable to shareholders reached IDR 60.15 trillion, making it the top earner among banks classified under core capital (KBMI) IV.

For comparison, PT Bank Mandiri Tbk. (BMRI) recorded a net profit of IDR 55.78 trillion, PT Bank Central Asia Tbk. (BBCA) posted IDR 54.8 trillion, while PT Bank Negara Indonesia Tbk. (BBNI) achieved IDR 21.46 trillion in the same period.

However, BBRI's net profit growth remained modest at only 0.09% year-on-year (yoy). Meanwhile, the bank’s consolidated revenue increased by 4.1% to IDR 145.3 trillion, up from IDR 139.56 trillion the previous year.

In line with this performance, BBRI shares rose by 0.5% to IDR 4,030 per share on Wednesday (Feb 12, 2025). However, on a year-to-date (ytd) basis, the stock remains in negative territory, down 1.23% since the beginning of 2025.

BBRI’s Stock Outlook Amid Market Challenges

According to Handiman Soetoyo, Head of Proprietary Investment at Mirae Asset, BBRI’s 2024 profit came in below market consensus expectations of IDR 61 trillion. He expects the bank to adopt a more cautious approach in 2025 due to ongoing liquidity constraints and intensifying competition for funding.

On the brighter side, Handiman noted that a potential positive sentiment for BBRI shares could come from its dividend distribution. The dividend announcement is expected by the end of March 2025. In the previous year, BBRI distributed dividends with a high payout ratio of 80%, amounting to IDR 48.1 trillion or IDR 319 per share.

Meanwhile, Edward Lowis, an analyst at Sucor Sekuritas, revised down BBRI’s earnings estimates for 2025, citing various challenges.

"We have lowered our profit forecast for BBRI, considering slower credit growth prospects, further pressure on net interest margin (NIM), and higher credit costs," he stated in his research note.

Despite these challenges, Sucor Sekuritas maintains a buy recommendation for BBRI, albeit with a lower target price of IDR 5,300 per share.

According to Bloomberg data, 32 securities firms have issued buy recommendations for BBRI, while three advise holding, and one recommends selling. Analysts’ consensus places BBRI’s 12-month target price at IDR 5,337 per share.

Temukan berita dan artikel lainnya di Google News