Why BRI Stock Remains Highly Sought After Amid Market Challenges? Here's the Answer

In the world of investing, stock-buying decisions are influenced by various factors, from corporate performance to global economic conditions. One stock that continues to attract investors is PT Bank Rakyat Indonesia (Persero) Tbk (BBRI).

Despite recent declines in BRI's stock price, investor interest remains strong, particularly among those seeking blue-chip stocks. What makes BBRI so appealing despite market uncertainties? Here's a detailed analysis.

Bank Rakyat Indonesia's Profile

As one of Indonesia's largest banks, BRI holds the status of a state-owned enterprise (BUMN), which boosts investor confidence. Since its establishment, BRI has been committed to serving micro, small, and medium enterprises (MSMEs), which form the backbone of Indonesia's economy.

Strong Financial Performance

One of the main reasons why BBRI stock remains highly sought after is its strong financial performance. As of November 2024, BRI posted a net profit of Rp50 trillion, up 3.96% year-on-year compared to Rp49.09 trillion in the same period the previous year.

This increase was driven not only by operational efficiency but also by the growth in Net Interest Income (NII), which rose 1.31% to Rp100.88 trillion.

Additionally, fee-based income saw significant growth, reaching Rp20.34 trillion, an increase of 9.66% year-on-year. This reflects BRI’s success in diversifying its revenue streams beyond interest income.

Given its crucial role in Indonesia’s economy, this strong financial performance makes BRI an attractive option for investors looking to generate profits while contributing to economic development.

Steady Loan and Asset Growth

BRI has also recorded steady loan growth. As of November 2024, total loan disbursement reached Rp1.219.21 trillion, marking a 4.99% increase from the previous year.

This growth indicates that despite global economic uncertainty, credit demand remains strong, reflecting public trust in BRI as a reliable financial institution.

Additionally, BRI’s total assets grew by 4.36% to Rp1.851.3 trillion, while third-party funds (DPK) rose 6.95% to Rp1.386.71 trillion.

Notably, CASA (Current Account Savings Account) grew by 10.79%, highlighting strong customer confidence in BRI. This solid customer base provides a crucial foundation for long-term profitability.

Surge in Shareholders Despite Price Drop

Interestingly, despite BBRI’s stock price decline, the number of shareholders has increased. By the end of December 2024, BBRI had 653,247 investors, an increase of 38,186 investors from the previous month.

This surge indicates strong local investor interest, possibly seeing BBRI’s long-term growth potential despite current market volatility.

It also reflects market confidence in BRI’s future, suggesting that investors remain optimistic about the bank's resilience.

The Appeal of Blue-Chip Stocks

As a blue-chip stock, BBRI remains a top choice for investors seeking stability and strong fundamentals.

Being a state-owned bank, BRI offers additional security for long-term investors. While BBRI’s stock price has declined, many investors view this as an opportunity to buy at a discount before a potential rebound.

With solid fundamentals, promising growth prospects, and high investor confidence, BBRI remains one of the most attractive investment choices amid market uncertainties.

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